Legal and regulatory framework of the petroleum industry in Nigeria: Review of existing laws and the Petroleum Industry Bill (PIB)

It was recommended that:

The Ministry of Petroleum be completely independent and directly funded by statutory appropriation under a cabinet minister and not by a President doubling as Minister of Petroleum.

No Minister of Petroleum or member of the Broad of NNPC or indeed any Minister of the Federal Republic of Nigeria should acquire an oil block or make it to the Board of any private Oil Company for at least 10 years during or after leaving office.

Any default on the above recommendation should be visited with automatic nationalization of the company and its shares distributed 50% for the oil producing States and 50% to other States of the federation.

The production sharing contracts should all be re-negotiated and lost revenue calculated backwards with a view to recoveries.

Top ranking employees of Private or International oil companies must be made to sign an irrevocable indemnity and allegiance to Nigeria before they are given positions of responsibility in the National Oil Companies or Ministry of Petroleum and shall, not for 10 years after leaving office seek, take or consult for a Private Oil Company doing business with or in Nigeria either as an employee, consultant or director therein.

Allocation of oil blocks should be subject to approval by the National Assembly to persons with proven capacity to develop them and refine part of the oil in Nigeria.

Where any of the refineries cease to operate as a result of any foreseeable fault and remains out of operation for a period of three months thereafter, the head of the National Oil Company and the board of the refinery should be sacked without benefits.

Oil companies causing environmental degradation shall in addition to fines imposed by government, pay a fair, full and adequate compensation to any persons aggrieved as determined by a Judge sitting in the jurisdiction of injury whether State or Federal, provided that the sum payable shall be as determined by an advisory ad hoc multi-disciplinary college of referees appointed by the Judge comprising toxicologists, surveyors and values whose fees shall be charged to the polluter.

Fuel subsidy should be removed as soon as possible as it is fraudulent and encourages corruption in the sector.

The Subsea Pipeline traversing Nigerian Coastal waters must be stopped.

Decentralization of powers of the Minister of Petroleum to make for efficiency and accountability.

President Buhari should see the speedy passage of the PIB under the 8th National Assembly as top priority.

The Legislative agenda for 2015 should be laid out by the President and should be outlined for both the National Assembly and the nation at large.

For any change to happen in the Industry, the PIB must be passed latest within a year of the present administration.

There is no alternative to reforms and this includes legal reforms as opposed to the general belief that what is meant is administrative reforms.

Absence of sound laws will give room for the distortion of process, which is what has given rise to poor governance, subsidy fraud etc.

The PIB did not come to light due to lack of political will and the illusion of the public that progress was being made.

The desire of Nigerians is to have a functional PIB by 2019, with the backdrop of law and institutions that would promote what Nigeria needs through governance, functional industries and no more importation of fuel.

Legal reforms are an essential component of what the nation is going through now.

Nigerians expect a functional downstream sector, a self-sufficient Nigeria that would supply the sub- Saharan Africa with petroleum products.

Corrupt people who had diverted public funds in the past should be made to return the funds.

The Bill will foster national objectives of good governance and transparency.

The session observed that the past two attempts to pass the PIB failed due to lack political will. The PIB is a piece of legislation which must be prioritised and birthed as soon as possible, after observed errors are corrected.

Legal reform is the way to champion positive change and order amongst stakeholders in the sector.

The session was attended by Ibe Kachikwu, the Managing Director, Nigerian National Petroleum Corporation and Chairman of the session; Senator Ndoma–Egba (who stood in as alternate chair for Ibe Kachikwu, until his arrival); Prof. Yinka Omorogbe of the Nigerian Institute of Advanced Legal Studies (NIALS); Tunji Mayaki of Addax Petroleum; Former President, Trade Union Council, Peter Esele; Chief Obasi Lawson, the President of Independent Petroleum Marketing Association Of Nigeria (IPMAN), Represented By The National Secretary Of IPMAN; Niyi Ayoola Daniels of the International Institute for Petroleum Energy Law and Fiscal Policy.