…Bill unbundles NNPC, scraps PPPRA, DPR, others
By Henry Umoru
ABUJA—THE National Assembly has transmitted to President Muhammadu Buhari for assent into law, the controversial Petroleum Industry Governance Bill, PIGB.
A source at the National Assembly told Vanguard yesterday, that the clean copy of the Bill was sent to President Buhari to sign into law July 3, 2018.
The Senate had on March 28, 2018, passed the harmonised version of the PIGB after it was considered by the two chambers of the National Assembly, while the passage followed the adoption of the report of the Conference Committee on the PIGB, which harmonised the versions earlier passed by the Senate and House of Representatives.
The harmonised version of the Bill seeks to unbundle the Nigeria National Petroleum Corporation, NNPC and merge its subsidiaries such as the Department of Petroleum Resources, DPR and the Petroleum Products Pricing Regulatory Agency, PPPRA, into one entity.
The Bill also scrapped the Petroleum Inspectorate, DPR and PPPRA and establishes the Nigeria Petroleum Regulatory Commission which will take over the functions of the three agencies.
The regulatory bill also bulkanises NNPC and creates the National Petroleum Commission, just as the five percent fuel levy on Nigerians would be used to finance the Petroleum Equalisation Fund, as established under the bill.
In the approved Bill, other sources of funding the PEF, include: subventions, fees and charges for services rendered as well as net surplus revenue recovered from petroleum products marketing companies, just as the Equalisation Fund shall collect all revenues and levies charged.
It will also determine the net surplus revenue recoverable from any oil marketing company and accruing to that company from the sale by it of petroleum products at such uniform prices as may be fixed by the Minister and determine the amount of reimbursement due to any oil marketing company for purposes of equalisation of price of products among others.
The bill also seeks to provide for the governance and institutional framework for the petroleum industry.
The bill also empowers the commission to administer and enforce policies, laws and regulations relating to all aspects of petroleum operation.