LCCI worried about PIB sections weighing on economy growth

Lagos Chamber of Commerce and Industry (LCCI) has expressed concern over some provisions of the new Petroleum Industry Bill (PIB) expected to have adversely affect the growth of the industry and economy.

The Chamber, however, emphasized its support for government’s efforts at driving industry reform through a new PIB, adding that the key objectives of the PIB 2020, among others, which include reforming the institutional and the fiscal framework, developing Nigeria’s gas sector further, creating a framework to support the development of host communities, foster sustainable prosperity and bringing in new investments to grow the country’s production capacity was positive steps toward achieving its stated goals.

The Director-General of the Chamber, Dr Muda Yusuf, who stated this, explained that Nigeria, with the largest oil and gas reserves in Africa, has huge untapped potential to achieve its economic development goals including gas-to-power ambitions.

It also acknowledged that PIB mandates that Ministries, Departments and Agencies (MDAs) consult with the commission prior to introducing overlapping legislation which will impact the oil and gas industry allows for consultation with industry stakeholders before making regulations and commercialisation of Nigerian National Petroleum Corporation (NNPC) to improve business efficiency and effectiveness, especially in relation to Joint Venture activities

The chamber, however, noted that some of these improvements appear insufficient to deliver the true value which the bill aims to achieve.

The chamber’s DG said despite having the largest reserves in Africa, the country only received four per cent ($3 billion) of $75 billion invested on the continent between 2015 and 2019, which underscores the need to create a competitive environment to attract investment to the oil and gas sector.

The Lagos chamber urged the National Assembly to put in place a law that would promote more effective and efficient governance, administration, host community development and fiscal framework for the petroleum industry.

“We firmly believe that based on constructive co-operation between the government and other stakeholders, host communities and the industry, the objectives of reform can be successfully met.”