APC Govs Praise Buhari, Say Petroleum Act Presents Convincing Credential of Party’s ‘Commitment to Restructure Economy’

By Adedayo Akinwale

The Progressive Governors Forum (PGF), the umbrella body of the governors elected in the platform of the All Progressives Congress (APC), has said that the signing of Petroleum Industry Bill into law by President Muhammadu Buhari presents a convincing credential of the commitment of APC to restructure Nigerian economy through democratic process in line with provisions of the 1999 Nigerian Constitution as amended

The Chairman of the Forum and the Governor of Kebbi state, Atiku Bagudu, said with the coming into law of the new Petroleum Industry Act, Buhari had demonstrated unwavering commitment to change Nigeria democratically.

The Forum noted that the Act also created a Host Communities Development Trust to be managed by Board of Trustees as provided by the Act, adding that the 3% of profit from the operations of oil and gas businesses would be used for the development of the host communities.

It added that it was noteworthy that this was in addition to the existing 13% derivation to oil producing states and funds allocated to Niger Delta Development Commission (NDDC)

The Forum said: “After more than two decades of endless national debates and stalemate, there is today a new Petroleum Industry Act in the country, which has provided six months transition for the emergence of new institutional framework for the operations of oil and gas industry in the country.”

The Forum added that with Nigeria National Petroleum Corporation (NNPC) now unbundled, and in its place three new structures – Nigerian Upstream Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerian National Petroleum Company Limited – stronger accountability structures, each with a Board drawing representation from stakeholders in the oil and gas industry is instituted.

It noted that the monopoly status of the old NNPC, which vested it with both the powers of regulating the industry as well as extraction and sales of crude oil in both the upstream, midstream and downstream had been abolished.

It stated: “In addition, the Act also created a Host Communities Development Trust to be managed by Board of Trustees. As provided by the Act, 3% of profit from the operations of oil and gas businesses will be used for the development of the host communities.

“It is noteworthy that this is in addition to the existing 13% derivation to oil producing states and funds allocated to Niger Delta Development Commission (NDDC), which Mr. President has continuously emphasised that all the resources must be put to judicious use for the benefits of the people in the oil producing areas.”

The Forum pointed out that even critics of APC and its governments cannot ignore the fact that the coming into law of the Petroleum Industry Act was an important democratic milestone.

It added that It signposts the commitment of the party and the government to develop the oil and gas sector and resolve all the challenges associated with the operations of the sector.

It said with the new Act, there should be remarkable improvement in revenue collection from the oil and gas sector, noting that this is expectedly the Next Level governance initiatives that APC promised Nigerians during the 2019 campaigns.

“The new Petroleum Industry Act present a convincing credential of the commitment of our party, All Progressives Congress (APC), to restructure Nigerian economy through democratic process in line with provisions of the 1999 Nigerian Constitution as amended. Inspired by our leader, President Muhammadu Buhari, we are confident that democratic engagements based on strategic considerations of legislative proposals in the National Assembly to make or review existing laws, the Nigerian economy will be fully restructured,” it noted.

The Forum said Part III, Section 9 (4) and (5) of the Act provides for the creation of “a Frontier Exploration Fund which shall be 30% of NNPC Limited’s oil and gas profit as in the production sharing, profit sharing and risk service contracts.”

It said the provision made to ensure that NNPC Limited transfer 30% to the Frontier Exploration Fund dedicated for the development of oil exploration activities in all parts of the country subject to appropriation by the National Assembly.

It emphasised that the provision would guarantee exploration activities in the country beyond discretionary decisions of the management of the new NNPC Limited.

The PGF, therefore, congratulated Buhari for achieving this important milestone, while pledging its commitment to support the process of transition to the new era of oil and gas operational and management as provided by the new Petroleum Industry Act 2021.