PIA Implementation Must Create Value For Oil, Gas Sector- Stakeholders

Nigerian experts are advocating that the transition process of the Petroleum Industry Act must be executed by the transition committee to go beyond value creation.

The stakeholders said the right experts who will add substantial value to the sector should be engaged in the transition process.

The pool of experts made their position known on Thursday at a virtual event organized by the Financial Energy Review and the Emmanuel Egbogah Foundation with the theme, ‘Implementation Strategy of Petroleum Industry Act For Value Addition.’

The event hosted speakers including Timothy Okon, Prof. Yinka Omorogbe, Francis Adigwe and Tunji Oyebanji.

Nigeria lost an estimated $50bn worth of investments in 10 years, due to non passage of the PIB, according to President Muhammadu Buhari.

Buhari on August 18 inaugurated the implementation steering committee for the new oil sector law.

The Minister of State Petroleum, Chief Timipre Sylva, was appointed to oversee the committee.

The law has been passed by the legislature, but the President wrote the National Assembly seeking an amendment to some sections of the PIA.

The PIA which will take effect August 2022, has different implementation phases.

The 18 months transition activity includes the transfer of employees or inter-agency transfers in the authority, the commission and the NNPC Ltd which will be initiated by the petroleum minister.

Okon said, “You need to have the right people because governance, especially governance as regards the institutions are important.”

For him, a competent workforce would help add value to the sector.

Prof. Omorogbe during her speech said value creation is important for the Nigerian oil and gas sector.

She, however, emphasized that the implementation of the PIA must also cause development.

“Value creation is important, but I think we also need to remember that development is very key. Because of some work I am doing, I just happened to look around.

“I was trying to see what was happening in some places. I was looking at the rural communities and the extent of their development and I went in and looked at Oloibiri where oil was commercially discovered and I found out that Oloibiri is an off-grid community.

“That electricity is not even extended to the community, it has none of the benefits of the oil industry.” said Omorogbe.

She said that it is important to look at the governance process of the act.

According to her, the amendment of the act to introduce Federal Character may not be a good signal for the legislation.

She also applauded the proposal to remove the petroleum minister and the finance minister from the board of the NNPC Ltd.

Professor Adigwe who was a PIB Consultant to the Nigerian Senate said the PIA implementation must ensure that the host communities funds are adequately channeled to ensure the development of the communities.

He said the host communities’ development plan which has been enshrined in the PIA is expected to massively change the host communities.

Oyebanji who spoke on the implementation of the PIA in the mid-stream and downstream sector said the transition and the implementation committee must ensure competent people are brought onboard.

He said, “In implementing it, especially the transition, it is very key that whatever needs to be done to ensure that supply continues to flow is put in place. That becomes an extremely important thing for us to focus on.”

He said the implementation of the law must be geared towards value creation for the sector and Nigerians.

Oyebanji said the PIA implementation would yield better results if the right people are engaged into the administration of the sector.