President Muhammadu Buhari has appealed to host communities to accept the provisions of the Petroleum Industry Act (PIA) as it will bring real and lasting benefits.
The controversial bill has an allocation of 3 percent oil companies’ operating expenses for host communities and a 30 percent allocation for oil exploration in frontier basins, mostly in northern states.
In his speech on Wednesday, August 18, Buhari said the PIA creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.
“The “Petroleum Industry Act 2021” creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.
“The Act also provides for a direct benefit framework that will enable sustainable development of Host Communities.
“I appeal to the host communities to look carefully at the contents of the Bill which in the implementation will bring real and lasting benefits to them.”
The Nigerian President also appointed Minister of State for Petroleum Resources, Chief Timipre Sylva, to head the Steering Committee that will drive the implementation process.
Other members are: Permanent Secretary Ministry of Petroleum Resources; Group Managing Director NNPC; Executive Chairman FIRS; Representative of the Ministry of Justice; Representative of the Ministry of Finance, Budget and National Planning, Senior Special Assistant to the President on Natural Resources, Barrister Olufemi Lijadu as External Legal Adviser, while the Executive Secretary, Petroleum Technology Development Fund, will serve as Head of the Coordinating Secretariat and the Implementation Working Group.
The committee was given 12 months to guide the effective and timely implementation of the PIA in the course of transition to the petroleum industry envisaged in the reform program, and ensure that the new institutions created have the full capability to deliver on their mandate under the new legislation. They are also expected to report periodically to the President.
“To consolidate the commitment of this administration to delivering the value proposition of this law, I have approved an implementation framework commencing immediately to ensure the industry envisaged in the new law begins to take shape.
“The implementation process to be headed by the Hon Minister of State, Petroleum Resources is hereby tasked with the completion of the implementation of this act within 12 months. I am therefore directing all relevant Ministries, Departments and Agencies of government to fully cooperate in ensuring the successful and timely implementation of this law.
“Let me now commend the leadership of the 9th Assembly for their continued pursuit of our national aspiration and demonstration of mutual harmony with the Executive in the pursuit of a patriotic outcome in the passage of the PIB.
“I also commend the entire team in the executive that worked tirelessly to ensure the delivery of this strategic legislation for our country
“I thank Nigerians and other industry stakeholders for their contributions and support in achieving this historic landmark.”
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