Third reading of the Petroleum Industry Bill (PIB) has been passed by the House of Representatives.
Based on the recommendation of the Committee on PIB, the Committee of the Whole considered the clauses of the bill.
Muhammad Monguno, chairman of the ad hoc committee on Petroleum Industry Bill (PIB), presented a report and 319 clauses of the bill were voted on by the lawmakers.
Monguno explained that by passing the bill, the ninth house had succeeded in enacting important legislation.
The bill will make the oil and gas industry more transparent and competitive, he added.
Femi Gbajabiamila, Speaker of the House, commended the lawmakers for “making Nigeria proud”.
Legislators are considering the bill’s provisions in the senate.
Sen. Sabo Mohammed (Jigawa South-West), chair of the Joint Committee on Petroleum (Downstream); Petroleum (Upstream) and Gas Resources, has presented the committee’s report.
According to him, the bill is intended to update and replace outdated provisions with a more comprehensive and current petroleum law that aligns with global standards.
The committee recommended that five percent of the upstream petroleum operations’ actual annual operating expenditures be deposited into the Fund.
As the Joint Committee recommends, this country needs to aggressively explore and develop its Frontier Basins in order to take advantage of the foreseeable threats to the funding of fossil fuel projects around the globe due to a shift from fossil fuels to alternative energy sources.
In this context, the Committee recommends a funding mechanism of thirty percent (30%) of NNPC Limited’s profit oil and profit gas as in production sharing, profit sharing, and risk service contracts to fund exploration of frontier basins,” he emphasized.