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From Uche Usim and Adewale Sanyolu, Abuja
President Muhammadu Buhari has described the Petroleum Industry Act (PIA) as an investment booster as it strategically dismantles the hurdles stacked against onshore and offshore investment inflow in the country’s oil and gas sector.
The president stated this in Abuja on Monday at the opening ceremony of the 5th Nigeria International Energy Summit (NIES) held at the banquet hall, Presidential Villa, with the theme: “Revitalising the Industry: Future Fuels and Energy Transition”.
The president, who was represented by the Minister of State (Petroleum Resources), Mr Timipre Sylva, assured Nigerians and prospective investors that PIA brings some level of certainty for the regulatory, administrative and fiscal framework. He added that the legitimate grievances of host communities impacted by activities of the industry have also been addressed by the Act.
The president also explained that, in line with the provisions of the PIA, his administration ensured the incorporation of the Nigerian National Petroleum Company Limited (NNPCL) under the companies and Allied Matters Act (CAMA). He added that the NNPCL is now a limited liability company. “Our target is to make it (NNPCL) the biggest, the most capitalised and the most profitable company in the whole of Africa”, he stated.
The president expressed satisfaction with the record-breaking activities the country’s energy sector witnessed in 2021. Of note, he mentioned the successful completion of the Marginal Fields Bid Round, The Petroleum Industry Act (PIA) seeing the light of the day and the Decade of Gas Initiative.
On the conclusion of the Marginal Fields Bid Round, the president posited that it will give Nigeria the opportunity to speed up its fossil fuel exploitation and make good use of the resources for the betterment of the country rather than abandon the huge oil and gas reserves in the ground.
On the Decade of Gas initiative, President Buhari informed that ‘our major objective remains the transformation of Nigeria into a gas-based industrialised nation through enhanced and accelerated gas revolution.’
On energy transition, the president allayed concerns around environmental, social and governance demands. He assured that the government was building blocks and bricks that will ensure seamless energy transition as the country joins the race for net-zero carbon emission.
The president charged the summit to develop smart home-grown goals for the country’s energy transition. ‘We are waiting to deliberate on the strategy from this summit and incorporate critical parts in it into the government’s policies where necessary,’ he added.
In his remarks at the occasion, the Minister of State for Petroleum Resources, Mr Timipre Sylva, stated that the energy sector, under the leadership of President Muhammadu Buhari achieved the “Gold Standard” status with many giant leaps.
Sylva also commended the leadership of the National Assembly for their contributions to the successes recorded by the administration in the energy sector, especially in putting aside personal interest and putting Nigeria first by passing the hitherto age-long Petroleum Industry Bill (PIB) into law.
The minister noted that, with the PIA in place, expectations and optimism were high. He however expressed optimism that the stakeholders in the energy sectors gathered at the event were supercharged to meet the high expectations.
He stated that ‘the PIA has indeed given the industry more clarity and certainty. The industry is poised to attract huge investment needed to reposition the sector.’
Sylva maintained that the government has matched words with actions with the swift implementation of certain provisions under the PIA. Of note in this regard is the scrapping of erstwhile agencies and birthing of new ones coupled with the inauguration of the Boards of the new agencies. The Nigerian National Petroleum Company (NNPC) was also incorporated with a new Board in place.
He emphasised that energy transition is the direction the Industry is moving globally and Nigeria cannot afford to be left behind. He reiterated that it was in this regard that the Federal Government declared Natural Gas as the transition fuel for the country. The minister stated that for countries that are endowed with natural resources but still energy poor, the transition must not be at the expense of affordable and reliable energy for people, cities and Industries.
Joining via Zoom, the Secretary-General, Organisation of Petroleum Exporting Countries (OPEC), HE Mohammad Sanusi Barkindo, said the PIA would bring about the necessary reforms designed to strengthen institutions, solidify regulatory and fiscal frameworks and attract much-needed investment in a sustainable manner.
Barkindo thanked President Buhari for his fervent steadfast support for Nigeria’s energy industry. He also praised the Minister of State (Petroleum Resources) for his leadership roles and active participation in OPEC which has helped forge a sustainable stability in the oil market.
