How Nigeria Lost $200 Billion Investment To Non-Passage Of PIGB
For failing to put in place a proper legislative framework for the oil and gas industry, Nigeria has lost over $200 billion worth of investments in the last 10 years.
Ike Chioke, Group Managing Director of Afrinvest, stated this in Abuja while presenting the 2018 edition of the Annual Nigeria Banking Sector Report.
Chioke who lamented that substantial revenue as investments have been held back due to lack of clarity of the fiscal regime, called on the National Assembly and Executive to get the Petroleum Industry Governance Bill passed and signed into law as soon as possible.
"Without passing the bill, we have basically shortchanged the economy of additional new investments into the sector; a sector that is responsible for 90 percent of our foreign exchange and stabilizing most of our income.
"So, something needs to be done because the opportunity cost of that, we have estimated it is something around $200 billion of investment we have lost in the last 10 years.
"And when we are thinking about how we can unlock value in this economy, it is clearly sitting on our table. And it is really between our legislators and our executive to do the needful and get that bill passed," he said.
First introduced in the National Assembly in 2008, the bill seeks to increase petroleum exploration and production, boost domestic gas supply, establish a viable national oil company, create an efficient regulatory entity, enhance transparency and accountability in the industry, among other objectives.
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However, after several years of lying before the National Assembly, it was broken down into four components in the Eighth National Assembly for quick passage.
The cluster bills include: The Petroleum Industry Governance Bill (PIGB); Petroleum Industry Fiscal Regime Bill; Upstream and Midstream Administration Bill; Host Community (Development) Fund Bill and the Petroleum Revenue Bill.
Although both chambers of the National Assembly finally passed the harmonised version of the PIGB before embarking on annual recess in July, President Muhammadu Buhari declined assent to the bill claiming some of the provisions were contrary to the present administration's policy.
The other four bills are at committee stage.
However, at resumption on October 9, Senate President Bukola Saraki announced a seven-man committee chaired by Senator David Umaru to look into the rejected bill.
Since then, the committee is yet to commence work, even as there are concerns that the Bill may not be passed before the end of the Eighth National Assembly in June 2019.
The 2018 Nigerian Banking Report expressed concern that as elections take centre stage in the next four months, politics may take centre stage while critical legislations may be relegated to the background.Please share the story.
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