General News

FG disagrees with Agbakoba seeking the withdrawal of the PIA

Olisa Agbakoba, a senior lawyer of Nigeria and former president of the Nigerian Bar Affiliation, has known as for the repeal of the Petroleum Business Act, saying those that drafted the legislation made critical errors.

Nevertheless, the Federal Authorities, by way of the Nigerian Upstream Petroleum Regulatory Fee and the Nigerian Midstream and Downstream Petroleum Regulatory Fee, disagreed with the legislator, arguing that the PIA was a boon to the nation’s oil and gasoline trade.

Addressing journalists at a press convention in Ikoyi, Lagos State, Agbakoba argued that Nigeria ought to dismantle its oil and gasoline system and construct a brand new one like that of Saudi Aramco.

Agbakoba questioned why the legislation created too many businesses with overlapping capabilities.

“Within the case of Saudi Arabia, there’s a clear construction, and when discussing or assessing our downside, I might see that the issue is expounded to the infrastructure of the authorized regulatory processes.

“In Nigeria, the PIA needs to be instantly repealed as a result of it creates too many businesses; it creates the upstream; it creates the downstream, and it creates greater than 5 to 6 businesses that typically you may have problem understanding who’s doing what. So if there’s a lack of readability, in any course of, there will be failure,” he acknowledged.

The lawyer urged the federal government to arrange a course of the place native gamers would totally take part within the sector.

“The issue is the native gamers, not the cash. There’s a large sum of money to fulfill everybody’s wants. In truth, the income that flows from oil and gasoline, whether it is maintained and preserved, will make Nigeria a particularly wealthy nation, however it’s not, as a result of the President of Nigeria mentioned he’s the Minister of Petroleum. That’s not potential.

“In Saudi Arabia, there’s a minister of vitality who offers with electrical energy, hydrocarbons, every part. Every thing falls beneath one area. However when you may have totally different ministers, there may be confusion. If the president is worried with different issues, the hydrocarbon coverage suffers. Hydrocarbons are a really costly product. Our hydrocarbons generate income for us. We’ve merely transferred all our pursuits to the IOCs by way of the Manufacturing Sharing Contract.”

Based on the previous NBA chairman, there was an absence of coherence within the nation's hydrocarbon course of, which has led to plenty of critical errors.

“The Minister of State for Petroleum is only a spare tire; he does nothing. He’s overpowered by a superior drive known as the Group Chief Govt Officer of the Nigerian Nationwide Petroleum Firm Restricted.

“The GCEO of NNPC immediately, beneath the PIA, wears two hats. It’s so complicated once you learn the legislation and you’ll’t inform precisely what the workplace does. He’s the state regulator of oil; he’s additionally an oil operator. So he does two issues, and he can’t do them properly. Both you regulate, just like the vitality minister in Saudi Arabia, otherwise you’re a participant, like Chevron.

“As a result of there’s a weak spot within the system, the IOCs are benefiting from it and excluding Nigerians. In the event that they exclude Nigerians from the proceeds, there isn’t a cash coming in. The rationale we have now no cash within the oil and gasoline sector is as a result of the system round it has utterly failed. We have to dismantle the oil and gasoline regulatory system and construct a brand new system,” he defined.

Agbakoba mentioned the NNPC should be as environment friendly as Saudi Aramco in selling the nation's pursuits.

“The NNPC needs to be environment friendly like Saudi Aramco. It doesn’t matter whether or not it’s public or non-public. It ought to refine Nigeria’s pursuits. The nation has unknowingly transferred its actual property to the IOCs, who pretended to finance our oil sources. We don’t want IOCs to offer us cash. IOCs don’t add worth, and that has been demonstrated by the truth that Saudi Arabia doesn’t enable IOCs,” he famous.

Requested to elucidate why he felt the PIA needs to be repealed after many Nigerians struggled to get it handed for nearly 15 years, the authorized luminary mentioned: “Is the PIA an excellent resolution or a foul resolution? If I learn it appropriately, take a look at the PIA if you happen to examine the PIA to the vitality infrastructure of Saudi Arabia. The PIA is unconstitutional. Part 62 states that the NNPC can deduct cash.

Do you need to remove anything from this post or take it down due to copyright? please use the contact us page to get in touch with us

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button