•Scraps NNPC, PPPRA, others

From Fred Itua and Romanus Ugwu, Abuja

Eight years after the administration of the late president Umar Musa Yar’Adua mooted the idea, the Petroleum Industry Governance Bill (PIGB) was finally passed by the Senate, yesterday.
The bill scaled through after the Committee of the Whole considered the Report of the Committee on Petroleum Upstream, Petroleum Downstream and Gas presented by Donald Alasoadura.
President of the Senate, Bukola Saraki said with the passage of the bill, corrupt practices in the oil and gas sector would be reduced. He added that inefficiency currently associated with the sector, would also be done away with.
“The bill will stimulate the oil and gas industry. It will reduce the area of corruption and inefficiency in the oil and gas sector,” Saraki said after the passage of the bill.
The All Progressives Congress (APC) in a statement signed by it national publicity secretary, Mallam Bolaji Abdullahi, commended the senate. “The passage of the bill is an indication that our federal legislators are diligent and reform-minded, and are committed to fulfilling the promises our party made to Nigerians.”
It called on the House of Representatives to follow the example of the Senate by also promptly passing the bill.
PIGB favours a more inclusive development away from crude oil to other product lines and by-products and robust engagement between international oil companies (IoCs) and the government in the area of investment and modifications in the Joint Venture Partnerships (JVPs)/cash call obligations. It also advocates the activation and extension of indigenous participation and local content development, promote transparency and accountability in the administration of petroleum resources and foster a conducive business environment for petroleum industry operations.
Also, the new bill, when signed into law would establish two new entities. The new companies, Nigeria Petroleum Assets Management Company and National Petroleum Company, will be vested with certain assets and liabilities of Nigeria National Petroleum Corporation (NNPC) and operate as a full independent commercial entity.
With the passage of the bill, a new regulatory agency- the Nigeria Petroleum Regulatory Commission (NPRC)- would be set up to take over the functions of the Petroleum Inspectorate (PI), the Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA).
It would also vest more powers on the commission, rather than on the president or the minister of petroleum resources.
According to the bill, the Minister of Petroleum Resources shall “be responsible for the determination, formulation and monitoring of government policy for the industry; exercise general supervision over the affairs and operations of the petroleum industry subject to the provisions of this Act; report developments in the petroleum industry to the Federal Executive Council; advise the government on all matters pertaining to the petroleum industry and promote the development of local content in the Nigerian petroleum industry.
“The minister will also represent Nigeria at international organisations that are primarily concerned with the petroleum industry; negotiate and execute international petroleum treaties and agreements with other sovereign countries, international organisations and other similar bodies on behalf of the government, subject to the approval of the Senate.”
Lawmakers added in the new bill that upon the recommendations of the new commission, the minister could grant, amend, renew, extend or revoke any licence or lease required for petroleum or production pursuant to the provisions of the act or any other enactment.
In the PIGB, the Ministry of Petroleum Resources would be renamed Ministry of Petroleum Incorporated.
The moves, according to lawmakers, were geared towards unbundling the NNPC and the petroleum industry.
Meanwhile, the Senate has called on the Federal Government to rehabilitate rescued Chibok school girls, through the provision of adequate welfare, education and health services, while intensifying efforts to rescue the remaining girls who are still in captivity.
The Senate made the appeal, following the adoption of a motion sponsored by Binta Masi Garba tagged: “2017 Children’s Day Celebration”.
The motion was presented by Biodun Olujimi in the absence of Garba.
The Senate mandated its committee on Women Affairs to liaise with the Federal Ministry of Women Affairs and Social Development to domesticate the Child Rights Act in the thirteen states that are yet to enact it.