The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote has advised that making unending changes to the structures set up by Petroleum Industry Act 2021 could kill the confidence of investors and stall new projects in the oil and gas sector.
Speaking on Tuesday at a panel session at the recently concluded Nigerian Economic Summit held in Abuja, the Executive Secretary explained that the PIA 2021 contains adequate provisions to ignite growth in the energy sector and advised the Federal Government and key stakeholders to avoid the temptation of tweaking the law at every turn.
He hinted that “policy somersaults kill the confidence of investors. Once a nation or economic sector is known for trial-and-error initiatives, it makes the investors adopt a wait-and-see attitude or move on to other entities.”
While acknowledging the need to seek areas of improvement, he cautioned that “it is injurious to the investment climate if we are in a perpetual state of policy modifications or amendment of laws that we are yet to even progress to full implementation.”
Wabote remarked that it took the Nigerian oil and gas industry almost two decades to pass the PIA, during which time many stakeholders of the industry blamed the lack of passage of the then Petroleum Industry Bill (PIB) as the reason for the lack of investment in the oil and gas industry.
He charged players of the industry to complete ongoing projects and deploy the provisions of the PIA to simulate the necessary growth in the energy sector.
Dwelling on ideas that would ignite the growth of the industry, the Executive Secretary recommended timely decisions on lingering issues on divestments, assignments and acquisitions, bid rounds, inter-agency collaborations, sanctity of contracts, and others.
He also canvassed for the speedy completion of the Dangote Refinery project and the delivery of products into the economy.
Speaking further, he listed the Presidential Power Initiative in partnership with Siemens and the rehabilitation of the Port Harcourt and Warri Refineries as ignition points for growth, stressing need to get them across the finish line. “The construction of the 615km AKK Pipeline is an ignition point for growth, we need to keep at it till completion, otherwise, it remains a pipe dream,” he added.
The Executive Secretary also harped on the need to set Local Content practice as a National Agenda to address recurring dislocations in the economy. He recalled that Presidential Executive Order 003 requires that MDAs must give preference to made-in-Nigeria brands in eight products. He pointed out that the implementation has been abandoned in public procurement. He insisted that the successes recorded in the practice of Nigerian Content in the oil and gas industry needed to be replicated and sustained across other sectors of our economy to promote local manufacturing and productivity.
Ambassador Gabriel Adudu Permanent Secretary Ministry of Petroleum had On Monday at the ongoing OTL 2023,Africa Downstream Energy Week disclosed on Monday that the Federal Government will be setting up a committee to review the three year old Act with the aim of seen whether it is meeting up to the reasons why it was set up.
“The committee will look at the various subsectors in the petroleum industry and see how the Act has impacted them, so that the necessary adjustment could be made to make the act effective.”
Meanwhile, the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, has said implementation of the Petroleum Industry Act (PIA) 2021 was yielding positive results in the area of addressing the infrastructure decay that had long plagued the gas sector.
He revealed this at the Second Domestic Gas and Gas Infrastructure Summit, with the theme, “Building a Sustainable, Resilient Gas and Renewable Energy Sector in Nigeria and Beyond,” organized by the Abuja Chamber of Commerce and Industry (ACCI) in the Federal Capital Territory (FCT).
On August 16, 2021, former President Muhammadu Buhari signed the Petroleum Industry Bill (PIB) 2021 into law. The law provides a legal, governance, regulatory, and fiscal framework for the petroleum industry, the development of host communities, and related matters.
The minister said: “In addressing the infrastructure decay that has long plagued our gas sector, implementation of PIA 2021 marks a watershed moment.
“The Act’s framework on strategic intervention such as the midstream and downstream gas infrastructure fund is already bridging the gap infrastructure that has been existing, thereby fostering an environment that attracts investment, and innovation crucial for expanding our domestic gas utilization and infrastructure.
“These advancements are not just in anticipation of domestic growth, but strive towards making Nigeria relevant in Africa’s gas market and indeed the world.”
Ekpo pointed out that the strategies and initiatives adopted by the government were geared at intensifying domestic gas consumption and decisively curbing gas flaring.
This commitment, according to him, is evident in the gas commercialization program and other policies that encourage gas-to-power initiatives, gas-based industrialization, and conversion of flared gas to more economic use.
He said the current administration was also looking at alternative energy sources in its quest for diversification and sustainability
While commending President Bola Tinubu for creating the Ministry of State for Petroleum Resources (Gas), Ekpo observed that Nigeria, with a sustainable gas and renewable energy sector, is a nation with a thriving economy and a stable climate.
Minister of Power, Adebayo Adelabu, lamented that despite being a major global producer of gas and endowed with one of the largest gas reserves in the world, Nigeria has struggled to deliver sufficient products to the domestic market amid growing demand.
He argued that a resilient, efficient, and accessible gas infrastructure, as well as renewable energy, remains the key to unlocking new opportunities and promoting socio-economic growth on a global scale.
According to him, with increasing population growth, Nigeria will need substantial additional gas, generation, transmission, and distribution infrastructure to meet its electricity demands.
Adelabu said the much-needed capacity in generation will come from gas to power and renewable energy. ACCI Director-General, Victoria Akai, said the summit was initiated by the Energy Trade Group of the chamber to brainstorm on the importance of gas and why the sector must be given prompt attention by stakeholders across government and business circles.
She noted: “As we navigate through the complexities of transitioning into a sustainable future, it is imperative that we focus on harnessing our abundant resources in the most efficient and effective manner possible. The domestic gas sector presents a unique opportunity for us to diversify our economy, create jobs, and reduce carbon emissions.”