‘PIGB not targeted at Buhari’s power, but national interest’

Joseph Akinlaja, chairman, House Committee on Petroleum Resources (Downstream) on Wednesday dismissed insinuations that the Petroleum Industry Governance Bill (PIGB) passed by the National Assembly was drafted to whittle-down the powers of President Muhammadu Buhari as alleged.

Akinlaja who spoke exclusively with BusinessDay’s Senior Legislative Correspondent on the heel of President Buhari’s refusal to sign the bill into law, argued that the National Assembly acted in the national interest.

The lawmaker who expressed displeasure over the development, observed that the uncertainty in the oil and gas industry has created lull in the market.

According to him, the decision of President Buhari conflicts with the aspirations of the leadership of the 8th session of the National Assembly to take the industry out of the woods before the end of the 8th Assembly.

He maintained that the plans to pass the PIGB which was conceived over the past 17 years, was frustrated by President Buhari’s action.

“It’s quite unfortunate that we are back at the starting line.

“It was the determination of the leadership of the two chambers to conclude all the four bills before the end of the 8th National Assembly.

“We thought we have concluded one of the four bills. Though I’m yet to see the details of the letter.

“It will not augur well because of the uncertainty in the industry has led to lull in the market.

“Unfortunately, the world is not waiting for us,” Akinlaja said.

When asked whether there was any clause or sections which reduced the powers assigned to the President, Akinlaja (PDP-Ondo) said: “I don’t see any provisions that reduce the powers of the President.”

According to him, during the cause of the consideration of the bill, “we tried to avoid unnecessary bureaucracy that was how we assign functions.

“The powers of the President is still there. As you know, making laws is not about one person to favour or not to favour.”

He maintained that the tenure of every sitting President cannot exceed maximum of two terms, hence National Assembly had no hidden intention to whittle-down the powers assigned to President Buhari by Nigerian Constitution (as amended) and the citizens of Federal Republic of Nigeria.

The three other bills namely: Petroleum Industry Fiscal Bill (PIFB), Petroleum Industry Administration Bill (PIAB) and the Petroleum Host Community Bill (PHCB) were referred to the Ad-hoc Committee on PIB, chaired by Ado Doguwa (APC-Kano) for further legislative action.

The Ad-hoc Committee had on the 22nd May, 2018 conducted public hearing on the three bills and expected to submit its report to the House on resumption from the recess.

Stakeholders who converged at the ongoing public hearing on petroleum industry administration, fiscal and host community bills, including Executives of international and indigenous oil companies during the exercise, expressed concerns over the loss of investments worth $250 billion due to absence of supportive legislation for the oil and gas industry reform.

Some of the participants who made presentations include: chief executives of Chevron, ExxonMobil, Shell, Oil and Gas workers unions, traditional leaders from the oil producing region, civil society organizations (CSOs), among others, applauded the ingenuity of the 8th Assembly on the reforms of the oil and gas industry.

Members of the OPTS, comprising of 28 indigenous and international operators of 90% of oil and gas sector, who applauded the ingenuity of the National Assembly on the bill, frowned at the stringent provisions for relinquishment of licensed area as well as retrospective legislation on relinquishment of fees after seven years.

While expressing concerns over the impact of a c toxic legislation on existing and prospective investments, the operators stressed the need to ensure that the legislation becomes applicable when the bill is signed into law.

They also kicked against punitive legislation on revocation of licence due to delay in submission of data as well as $2/mmbtu on gas flare, rather recommended $0.5 or its equivalent in naira at the prevailing exchange rate, per 1,000 standard cubic feet of gas flare in the case of routine flaring.

The operators also canvassed for 10 years for operation of acreage before relinquishment of licence and seven years, noting that such provisions did not take current funding challenges into consideration.

When contacted, Abdulrasak Namdas, chairman, House Committee on Media and Public Affairs, noted that Speaker Yakubu Dogara was out of the country, hence could not confirm whether the letter has been transmitted or not.

Buhari’s Special Adviser on National Assembly Matters (Senate), Ita Enang, had in a statement obtained by BusinessDay confirmed President’s decision to withhold assent to the bill.

According to him, “By Presidential communication of July 29, 2018 (one month ago) addressed to the Senate and House of Representatives, Mr. President did communicate decline of Assent to the Petroleum Industry Governance Bill, 2018 for constitutional and legal reasons stated therein.

“By convention, it is inappropriate to speak on the content of Executive communication addressed to the Legislature until same has been read on the floor in plenary.

“But I plead for the understanding of the legislature that due to the misrepresentations in the public domain and apparent deliberate blackmail which if not promptly addressed may set both the executive and the legislature against the public and even the international investment community, this be excused.

“None of the reasons for withholding Assent by Mr. President adduced by the media is true.

“In deference to the National Assembly, I please state very limited of the rationale communicated to the legislature, to wit:

a) That the provision of the Bill permitting the Petroleum Regulatory commission to retain as much as 10% of the revenue generated unduly increases the funds accruing to the Petroleum Regulatory commission to the detriment of the revenue available to the Federal, States, Federal capital Territory and Local governments in the country

“b) Expanding the scope of Petroleum equalisation fund and some provisions in divergence from this administration’s policy and indeed conflicting provisions on independent petroleum equalisation fund

“c) Some legislative drafting concerns which. if Assented to in the form presented will create ambiguity and conflict in interpretation. Other issues therein contained.

“May this please answer some of the issues raised until the communication is read on the floor,” the statement read.