July 01, (THEWILL) – The Nigerian Senate on Thursday commenced consideration of the provisions of the Petroleum Industry Bill (PIB) after the committee submitted its report.
Disputes cropped up on how punitive funds paid by firms responsible for spillage should be utilised.
Senator Sabo Mohammed (Jigawa South-West), who chairs the Joint Committee on Petroleum (Downstream); Petroleum (Upstream) and Gas Resources, presented the report of the committee.
He said the PIB is designed to update and replace the outdated provisions with a more comprehensive and current petroleum industry law that aligns with global standards.
He added that it also seeks to empower institutions and not individuals, remove bad governance which leads to inefficiency and tackle corruption in the country’s petroleum industry.
Speaking on the PIB, the Deputy Senate President, Senator Ovie Omo-Agege, said the Bill will create an enabling environment for investors to come in and invest in Nigeria’s oil sector.
He, however, appealled that the equity shareholding of companies be increased beyond 5 percent as contained in the report of the committee.
On gas flaring, Senator Omo-Agege was opposed to the use of penalty funds in development of frontier gas basins.
He said such funds should be channelled into developing affected communities.
According to him, the communities are the ones affected by gas flaring, and therefore whatever funds are raised from penalising companies involved in gas flaring should be used for remediation purpose in affected communities by providing them hospitals and roads, among other basic amenities.
The Senator representing Niger East, Senator Sani Musa, however deferred on the observations made by Senator Omo-Agege, and appealled to the lawmakers to desist from rancour so as not to impede the passage of the PIB.
