SAN FRANCISCO, November 02, (THEWILL) – The Petroleum Industry Bill, PIB, on Wednesday passed Second Reading on the floor of the Senate and was consequently referred to the Committee on Petroleum (upstream and downstream) for more legislative work.
The bill, which seeks to split the Nigeria National Petroleum Corporation, NNPC, into two independent entities, scaled through after a brief debate on it.
Chairman, Senate Committee on Petroleum (upstream), Senator Omotayo Alasoadura, representing Ondo central, while leading debate on the bill, said the PIB was first introduced in 2008, but that it was not passed in previous administrations of the National Assembly.
He explained that the bill is aimed at creating efficient institutions, and to promote transparency in the administration of petroleum resources in the country.
Alasoadura said the bill was the first in a series of its kind to reform the petroleum industry, adding that it would cure some of the ills in the sector.
According to him, This bill provides for the unbundling of the NNPC into two independent entities, which are the National Petroleum Company (NPC) and National Asset Management Company.
“It also provides for the establishment of a single petroleum regulatory commission which will focus mainly on regulating the industry.
“The poor performance of the NNPC is a major concern. The commercialisation of the corporation and its splitting into two entities is for more efficiency and to enhance performance.”
Given that this is the first in a line of bills on the petroleum industry, the Senate President, Bukola Saraki, disclosed that the next part of the bill would focus on the petroleum producing communities.
Recall that the Senate had, on April 26, abruptly ended debate on the bill.
