03 Nov GEPLAW ENERGY FOCUS OCTOBER 2020
A. INDUSTRY FOCUS ANALYSIS
On 28 September 2020, President Muhammadu Buhari presented the Petroleum Industry Bill 2020 (the “PIB”) to the National Assembly for its consideration and
subsequent passage into law. The PIB seeks to enhance the oil and gas industry by creating efficient and effective governing institutions, strengthening the regulatory framework, improving the fiscal terms and revenue generation, and ensuring the sustainable development of host communities. This report seeks to analyze the key provisions of the PIB and the implications on stakeholders in the Petroleum industry.
BACKGROUND TO THE PIB 2020
The enactment of an encompassing legislation for the Nigerian petroleum industry has been anticipated for over a decade now. The first draft of a PIB was submitted to the 6th National Assembly in September 2008. However, it stalled due to the need for the PIB to address key concerns affecting several stakeholder groups which were categorized broadly under institution & governance, administration, fiscal terms, and host communities. Consequently by the 8th National Assembly, the Bill was unbundled into four (4) main components: the Petroleum Industry Governance Bill (PIGB), the Petroleum Industry Administration Bill, the Petroleum Host Community Bill (PHCB) and the Petroleum Industry Fiscal Bill (PIFB). It was decided that the unbundled components would be addressed and passed into law as distinct laws…continue reading