New Telegraph

NACCIMA, LCCI list merits of PIB passage

Following the House of Reps passage of the country’s Petroleum Industry Bill (PIB), members of the organised private sector have stated that it will bring the much needed reforms in the Nigerian oil and gas sector as well as usher in new investments to grow the country’s production capacity.

The National President, Nigerian Association of Chambers of Commerce Industry Mines and Agriculture (NACCIMA), Ide John Udeagbala, and the Director-General, Lagos Chamber of Commerce & Industry (LCCI), Dr. Muda Yusuf, made this known to New Telegraph in a chat, while reacting to the passage of the bill.

The NACCIMA national president commended the Federal Government for the passage of the bill. Udeagbala emphasised that the private sector group hopedbthat the passage of the bill would bring the much awaited and needed reforms in the Nigerian oil and gas sector at a period the country is looking for different avenues to shore up revenue to support the gross domestic product (GDP) following the straits caused by COVID-19. He said: “It will lead to improved involvement of the Nigerian private sector in the oil gas sector and improve confidence of foreign investors, who have complained of lack of clear legal framework in the Nigerian oil and gas sector.”

The renowned industrialist stated further that NACCIMA, which has been involved and closely followed the process of passage of the bill, would work with all stakeholders to ensure the radical changes contained in the bill were effective as the bill becomes historic legal framework for the transformation of the oil sector with positive effect on the nation’s economy, the energy sector and expands employment opportunities and the well being of the people. In his own submission on the PIB, the LCCI DG noted that the passage of the bill would create the much needed competitive environment to attract investment to the oil and gas sector. According to him, the Nigeria’s petroleum industry has been facing many countryspecific challenges including joint venture funding and arrears, regulatory overlaps, insecurity and inadequate infrastructure for domestic gas development.

Yusuf said the LCCI was fully supportive of gvernment’s efforts to drive industry reform through the passage of the bill that is expected to reform the institutional and fiscal framework, develop Nigeria’s gas sector, further create a framework to support the development of host communities and foster sustainable prosperity, and further bring in new investments to grow the country’s production capacity.

He urged all stakeholders to work concertedly to ensure that the bill will improve the life of the host oil communities, ensure sustainable development of the environment in the oil producing areas. The renowned economist stated that while the passage of the bill was a big relief to its faithfuls, transparent implementation was key to ensure its desired objectives.

The NACCIMA DG, however, pointed out that despite Nigeria having the largest reserves in the continent, it only received four per cent ($3 billion) of $75 billion invested in the continent between 2015 and 2019. He added that this underscored the need to create a competitive environment to attract investment to the oil and gas sector.

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