The lower house has passed the Petroleum Industry Bill (PIB) which has been in the works for over 10 years. Known as the act to provide for the establishment of a legal, fiscal, and regulatory framework for the petroleum industry in Nigeria and for other related matters, the PIB is designed to reform Nigeria’s opaque and unwieldy oil sector.
The PIB also seeks to settle the derivation percentage due to host communities in oil exploration areas and whittle the sweeping powers of the oil Minister.
Earlier during the reading, the House of Representatives had reduced the proposed levy on oil companies for the operation of Petroleum Host Communities Fund from 10 per cent to 7.5 per cent. The fund, which is expected to cater for the mitigation of all negative environmental impacts on host communities arising from exploratory activities of oil companies was slashed, as lawmakers noted that any attempt to retain the 10 per cent levy may have negative effect on future investment in the sector, reports Newsintels.
However, for the bill to become law, the upper legislative chamber (the Senate) has to do its own bit before assent by the President.
Experts say the PIB will usher a regime of change and a flow of investments into the oil sector.
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