The petroleum industry bill and the Nigerian economy: a review

Abstract

With the ongoing controversies surrounding the  purported removal of oil subsidy due to the deregulation of the downstream oil sector by the President Buhari’s regime, there is urgent need to revisit the issues the petroleum industry bill (PIB). Although the PIB has been described as ‘the most comprehensive piece of legislation in the history of the Nigerian oil and gas industry’; there are many provisions in it many interests don’t really appreciate. This has led to a serious controversy over the bill. For example, foreign oil companies and even foreign nations see it as an unwelcome intrusion into their traditional monopoly over the industry and an assault on their stranglehold over production and profits. The NNPC also perceives it as an effort to force it to be more open and transparent, a virtual death sentence for an institution which thrives on lack of openness and accountability. Northern legislators on their own see it as further enriching a zone which already takes more than it is entitled to, and impoverishing their region. South-South legislators think it makes too little provision for more. Federal government thinks the legislation is poorly understood by Nigerians, and has become unduly politicised. It has become obvious that, there is a need for stakeholders to really find a middle ground at resolving the nagging controversies stalling the passage of the PIB. It is within this context that this article reviews and critically considers the Nigerian oil industry before PIB; reflects on the history of legislation in the oil sector; highlights the basic provisions of the PIB; brings out its possible impact on the deregulation of oil sector; examines the controversies surrounding the bill and its purported benefits to the Nigerian people and the economy; and suggests some ways out of the quagmire to ensure the passage of the bill for the greater good of the Nigerian nation.