Thread by @sheiduhabib_

It’s shameful that Nigeria has the largest reserves in Africa but was able to only receive 4% of the amount invested in the continent between 2015-2019.

#FixNigeriaPassPIB
@nassnigeria
Thread

The delay of the PIB is costing the economy an approximated US$200billion annually according to NEITI, in addition to US$15billion lost due to decreased investments.
#FixNigeriaPassPIB

The non-passage of the Petroleum Industry Bill by the Nigerian Government has continued to wreak havoc on the country, especially as it makes Nigeria’s oil and gas sector less attractive to investors.
#FixNigeriaPassPIB

The PIB’s delay is also keeping the nation from exploiting its huge gas resources. Home to an estimated at 200.79 T cubic feet of natural gas,Naija has the capacity to power Africa, yet currently,gas production stands at only 8.5 B standard cubic feet per day. #FixNigeriaPassPIB

The fiscal and regulatory infrastructure to support the industry is lacking.
Over recent years, Nigeria has become less competitive in attracting Foreign Direct Investment (FDI) compared to West African neighbors, especially Ghana. #FixNigeriaPassPIB

Even though FDI in Africa rose by 11% last year, it shrunk by 43% in Nigeria, according to the UNCTAD, mainly due to the protectionist policies of the current administration.
#FixNigeriaPassPIB

The issue of underdevelopment and environmental degradation of the host communities is also disturbing. life expectancy in the Niger Delta is 41yrs.
#FixNigeriaPassPIB

The oil spills in the Niger Delta have negative implications on local human health and has made malnutrition predominant as the region is only capable of producing small portions of food unaffected by oil spills.
#FixNigeriaPassPIB

According to Reuters, oil theft cost Nigerian oil companies US$1.39 billion in lost revenue in the first six months of 2019 alone.
#FixNigeriaPassPIB

Asharami Energy, a Nigerian E&P subsidiary company of Sahara Group with operations across West Africa, recognizes the root of oil theft as being unemployment.
#FixNigeriaPassPIB

There is no doubt that efforts to transfer benefits to the Niger Delta region over the years like the 13% Derivation fund, NDDC and so on have been marred by corruption.
#FixNigeriaPassPIB

The best benefits transfer mechanism has been the GMOU which is an agreement between oil companies and host communities but non-mandatory as it’s not part of the law.
#FixNigeriaPassPIB

Chapter three of the Petroleum Industry Bill (PIB)that is currently under the process of being passed is entirely focused on the creation of the "Host Community Development Trusts(HCDT) which are funded through an annual contribution of 2.5%...
#FixNigeriaPassPIB

...of the previous annual operating expenditure of the lessee/licensee in that location" As I wrote earlier, GMOU has been the best benefit transfer mechanism to the region but it's not mandatory, the HCDT will be a way of mandating it which is a great one.
#FixNigeriaPassPIB

Even though there are a lot of concerns, the long-awaited PIB should address and evaluate the role of each institution and bring about more certainty, improving the industry’s institutions, the PIB will recognize the rights of the host communities,...
#FixNigeriaPassPIB

...who have a fraught relationship with oil companies due to their interests being neglected as well as update bidding processes and the fiscal framework. #FixNigeriaPassPIB

The Journey to a comprehensive petroleum industry legislative framework has been a long and bumpy ride as two decades have passed without updating the industry’s regulation.
#FixNigeriaPassPIB

The latest iteration of the PIB was forwarded to the @nassnigeria
in September 2020. It has gone through the first and second reading at both chambers but full deliberation and public hearing is expected to take place. #FixNigeriaPassPIB

The Public hearing will take place from 25th - 26th of this month, it's an opportunity for the public to present concerns before the bill is taken back for the 3rd reading.
#FixNigeriaPassPIB

The process toward establishing the PIB has been on for over 20 years and at colossal expenses to the nation. More direness and better coordination are required on the section of this significant bill.
#FixNigeriaPassPIB

There have been unnecessary delays over the years, let's all lend our voices to make sure the PIB ship is safeguarded from a start-stop, unhurried and ungraceful mode and brought quickly aground.
#FixNigeriaPassPIB