Senate committee report on PIGB whittles down minister’s powers

Senate joint committee on petroleum industry and governance bill (PIGB) has whittled down the powers of the minister of petroleum in its 2017 drafted report of the bill by deleting certain items from the original report presented in 2016.

In the latest report by the Senate Joint committee obtained by BusinessDay, the committee recommended that the Minister should not have powers to create any further companies.

Under the section on Nigeria Petroleum Assets Management Company as presented in December 2016, it states that the minister may in addition to the incorporation of the entities above, incorporate other entities, as may be necessary to assume and manage some of the liabilities of the NNPC.

But in the reviewed PIGB report in 2017, the committee deleted it for superfluity on the basis that Nigeria Petroleum Liability Management Company has been established in section 86 of the Bill.

“Subsection deleted for superfluity. Nigeria Petroleum Liability Management Company has been established in section 86 of this Bill. Secondly, the Minister should not have powers to create any further companies suo motu,” the report states.

The committee deleted the section under the function of the minister of petroleum which hitherto would have allowed the minister upon the recommendation of the Commission to grant, amend, renew, extend or revoke any licence or lease required for petroleum exploration or production pursuant by transferring such function to the commission.

Also the provision that allows for initial shares or other ownership interest of such other entities to be held in the ratio of 51 percent by the Ministry of Petroleum Incorporated and 49 percent by the Bureau of Public Enterprises on behalf of the Government would no longer be applicable as according the committee’s recommendation, the Minister shall have no powers to create further companies.

The Joint senate committee by the new report removed the power of the minister to increase the financial penalties imposed under subsections 3 and 4 of this section as the prior amendment removes the option of fine.

“Subsection deleted since the prior amendment removes the option of fine”.

The PIGB previously known as Petroleum Industry Bill (PIB) is one of the 11 economic reform bills before the National Assembly, meant to help Nigeria out of economic recession as well as improve Nigeria’s ranking in the World Bank Ease of Doing Business report.

The bill is the longest in the National Assembly, having been first introduced to the Sixth Assembly in 2009 by the administration of late President Umaru Yar’Adua.

KELECHI EWUZIE