The Nigerian Senate scraps NNPC and has set up 3 new agencies after the passage of PIGB.
Following the passage of the Petroleum Industry Governance Bill (PIGB), by the Nigerian Senate, it is gathered that the Nigerian National Petroleum Corporation (NNPC) has been wiped out.
Yesterday, Thursday 25th May the Senate reviewed the PIB clause-by-clause before its passage as PIGB.
As a result, the Senate proposed the establishment of three new agencies that would replace NNPC for better management of the country’s Oil and Gas sector. Nigerian Petroleum Regulatory Commission (NPRC)
Nigerian Petroleum Regulatory Commission (NPRC), is one of the newly established agencies that would manage the Oil and Gas sector as prescribed in the PIGB. The agency will be headed by a chairman.
NPRC will have commissioners as members of its leadership hierarchy, the Senate will be responsible for the approval of appointments or removal of any commissioner.
Petroleum Product Pricing Regulatory Agency (PPPRA), which was formerly under the NNPC has now been moved under the new agency NPRC.
Nigerian Petroleum Asset Management Company (NPAMC) and National Petroleum Company (NPC) are among the new agencies established by the advent of PIGB to oversee the activities of other existing agencies which includes Department of Petroleum Resources (DPR).
The Petroleum Industry Governance Bill (PIGB) has suffered setbacks from the 4th to the 7th Senate. The Senate President Bukola Saraki describe the passage of PIGB which has 132 clauses as “historical”.
When PIGB is signed into law it is believed that it would be a catalyst in the country’s Oil and Gas Sector. It would also help to combat the spate of corruption in the sector.
Chairman, Senate Committee on Petroleum (Downstream), Senator Tayo Alasoadura in an address expressed his excitement that his committee was able to achieve much on the bill.
“Today we have achieved what people believed was impossible to accomplish”, he told reporters.
Also the Chairman, Senate Committee on Gas, when approached by journalists said, the “jinx has been broken”.
The Senator expressed hope that the bill would boost confidence on how Oil and Gas business would be conducted in the country.
“It will create the right signal to the international community that Nigeria is ready for business”, he said.
A statement signed by Saraki’s media office said, “Today, the Senate passed the Petroleum Industry Governance Bill (PIGB), 2017. This followed the final consideration and adoption of the report of the Senate Joint Committee on Petroleum (Upstream, Downstream, and Gas).
“The intent of this landmark legislation is to establish a legal framework for the creation of a more efficient, transparent, competitive and internationalized petroleum industry.
“The Bill, which was introduced by Sen. Tayo Alasoadura (Ondo Central), also seeks to create a conducive business environment for the operations of the petroleum industry and overhaul the Nigerian National Petroleum Corporation (NNPC).
“Senate President, Dr. Abubakar Bukola Saraki, the driving force behind the PIGB’s progression through the Senate, said the “Senate’s action today culminates some 12 long years of legislative attempts to reform the petroleum sector. Now, we are a step closer to bringing better governance and transparency to Nigeria’s most important economic sector.”