The Minister of State for Petroleum Resources, Timipre Sylva said the Petroleum Industry Bill (PIB) would be passed into law next month.
He made the disclosure at the Presidential Villa, Abuja, on Thursday, during the weekly media briefing organised by the Presidential Communication Team.
Sylva said frantic efforts are being made by the legislators to complete work on the bill and pass it, in line with the aspirations of critical stakeholders in the petroleum sector.
“The National Assembly has expressed the intent to pass the PIB into law by April 2021, every effort is being made to support the National Assembly to meet this target,” he said.
While enumerating the gains of the PIB to Nigerians, the Minister said it will create additional infrastructure across petroleum value chain, it will increase petroleum activities as well as enhance the livelihood of inhabitants of oil producing communities.
He said: “When passed into law, the bill will create additional infrastructure across the petroleum value chain especially from mid-stream and down-stream. Critical infrastructure that will be developed, utilizing the incremental revenue from increased petroleum activities, provision of additional infrastructure in the host communities arising from the host community trust and more businesses are expected to be set up to support increased activities within the petroleum value chain.
“Greater confidence would be engendered with certainty in the petroleum industry, which will lead to increased investments. Nigeria will occupy its place among committee of nations who have updated their petroleum industry laws in line with current realities.
“The bill will also enable a structured monetization of fossil fuel resources before the whole world turns to renewables. It will also impact positively on the Nigerian economy with multiplier effect on the petroleum sector.”
The Minister also said the bill when passed, will lead to an increase in the use of gas for domestic purposes, thus creating a healthier society, as well as address unemployment.
He described the PIB as a piece of legislation that is needed at this time, to revamp the petroleum sector, adding that although work on the bill has taken over 20 years now, government is happy with the progress so far made.
Also speaking, the Group Managing Director of Nigeria National Petroleum Corporation NNPC, Mele Kyari, said the country currently spends over N120 billion ($263,248 million) monthly as subsidy for Premium Motor Spirit (PMS).
Kyari explained that the NNPC absorbs the cost differential which is recorded in its financial books.
He further explained that while the actual cost of importation and handling charges amounts to lN234 per litre, the government is selling at N162 per litre.
He, however, said that the NNPC can no longer afford to bear the cost, adding that sooner or later Nigerians would have to pay the actual cost for the commodity.
“The NNPC pays between N100-120 billion a month to keep the pump price at the current levels, but market forces must be allowed to determine the pump price of petrol in the country,” he said.
Dominica Nwabufo
