Insights, Oil and Gas

Review of the Petroleum Industry Bill 2021- Part One

After almost two decades, the long and protracted reform process of the Petroleum Industry Bill 2020 (“PIB”, “Bill”) culminated in the splitting of the Bill into four smaller legislations for quicker passage covering industry governance, fiscal management, industry administration, and host and impacted communities development. These various segments have now been merged into one cohesive Bill under different chapters which has now been passed by the two houses of the National Assembly. The long title of the merged PIB describes it as “A Bill for an Act to provide Legal, Governance, Regulatory and Fiscal Framework for the Nigerian Petroleum Industry, the Development of Host communities; and for related matters”. This will replace the principal industry legislation, the Petroleum Act, 1969 (the “PA”) amongst other laws. A process of reconciliation is now ongoing after which the Bill will be passed to the President for assent. Industry stakeholders do not foresee any hitches to this process and expect the President to assent to the Bill very soon. Fingers crossed we trust this indeed will be the case but it has to be said that we have walked this road before under various administrations. It would indeed be a big achievement for the Buhari led administration if the PIB is finally passed. We watch and wait…

 

 

 

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Aderemi Ogunbanjo

Partner

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