Nigeria’s Petroleum Industry Act Implementation To Begin Next Year

The Federal Government of Nigeria has hinted implementation of the Petroleum Industry Act (PIA) till August 2022. President Muhammadu Buhari gave this hint when he inaugurated a steering committee on Tuesday to oversee the process.

Unveiling members of the steering committee, President Buhari said it has 12 months duration for the assignment, while he expects periodic updates to be given to him.

While directing immediate implementation of the framework for the PIA, he urged relevant stakeholders to comply and reposition for full activation within 12 months.

The steering committee is headed by the Minister of State, Petroleum Resources, Timipre Sylva. Other members include Permanent Secretary, Ministry of Petroleum Resources; Group Managing Director, Nigerian National Petroleum Corporation (NNPC); Executive Chairman, Federal Inland Revenue Service (FIRS); representative of the Ministry of Justice; representative of the Ministry of Finance, Budget and National Planning; and Senior Special Assistant to the President on Natural Resources, Olufemi Lijadu as External Legal Adviser.

The Executive Secretary, Petroleum Technology Development Fund, will serve as Head of the Coordinating Secretariat and the Implementation Working Group.

The primary responsibility of the steering committee will be to guide the effective and timely implementation of the PIA in the course of transition to the petroleum industry envisaged in the reform programme, and ensure that the new institutions created have the full capability to deliver on their mandate under the new legislation.

The PIA provides legal, governance, regulatory and fiscal framework for the petroleum industry, development of host communities and related matters.

The President noted that Nigeria lost an estimated $50 billion worth of investments in 10 years, created by the uncertainty of non-passage of the Petroleum Industry Bill (PIB), lack of progress and stagnation in the sector.