The Bill is the first in a series of long awaited petroleum industry laws designed to reform the Nigerian oil and gas industry.
The Senate of the Federal Republic of Nigeria (FRN), on Thursday 25 May 2017, passed the Petroleum Industry Governance Bill (PIGB or the Bill). The Bill, which still needs to be passed by the House of Representatives and assented to by the President of the FRN before it becomes law, seeks to establish a framework for the creation of commercially-oriented and profit driven petroleum entities, to ensure value addition and internationalisation of the petroleum industry, through the creation of efficient and effective governing institutions with clear and separate roles for the petroleum industry.
The Bill is the first in a series of long awaited petroleum industry laws designed to reform the Nigerian oil and gas industry. The Petroleum Industry Bill (PIB), an omnibus law meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation, had struggled to see the light of day despite its introduction to the National Assembly over 16 years ago. Subsequently, the National Assembly decided to break the PIB into a number of different pieces of legislation guiding specific aspects of the industry. The PIGB is the first of several Bills (the Petroleum Industry Fiscal Bill and the Host Community Bill are currently before the Senate) which the National Assembly will debate and pass in due course.
The Bill establishes/confirms a number of new/existing institutions, which can be broadly classified into the following categories:
i. Policy and general strategy formulator– Tasked with setting overall policy and direction for the industry
ii. Regulator – Charged with regulating the entire industry
iii. Commercial Institutions – Tasked with holding and managing the assets and interests of the Government
iv. Ancillary Institutions – Tasked with the provision of specific support services assigned to them
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