History was made today 25th of May 2017 as the 8th Senate presided over by Senate President Bukola Saraki passed the over 17 year old Petroleum Industry Bill (PIB) as re-framed as Petroleum Industry Governance Bill (PIGB). Recall that the bill first came into public conversation during the President Olusegun Obasanjo’s Administration. However, due to socio- political cum economic undertone the bill has not seen the lights of day by subsequent government.
Aside ensuring transparency in the Oil and gas, the PIGB is meant to provide institutional framework for operators as well as to provide a viable template for investors wishing to invest in the oil and gas sector within the Nigerian eco system.
The main objectives of the Bill include:
- The creation of efficient and effective governing institutions with clear and separate roles for the petroleum industry.
- Establishment of a framework for the creation (out of existing government-owned entities)of commercially oriented and profit driven entities that will ensure value-add and internationalization of the petroleum industry;
- The promotion of transparency and accountability in the petroleum industry; and the creation of a conducive business environment for operators in the petroleum industry.
THE CONTENTS OF PIGB
Summarily the content of the new bill waiting for the presidential assent includes among others;
- Powers of the Minister
- Establishment of the Nigerian Petroleum Regulatory Commission
- Establishment of the Nigerian Petroleum Assets Management Company and the National Petroleum Company.
Although the drafter of the bill aimed to ensure transparency in the sector, However, from the HR view point, HRLeverage sees the human side of the bill if successfully given proper assent by the President, the act would generate major employment for Nigerians and it will also promote institutional efficiency.
In our next news bulletin on this issue we would be anchoring on employment creation in relations to the Human Resource side of the Petroleum Industry Governance Act.