President Muhammadu Buhari has disclosed that Nigeria lost an estimated $50 billion worth of investments in 10 years, due to the uncertainty of non-passage of the Petroleum Industry Bill (PIB), lack of progress and stagnation in the petroleum industry.

He said this in his remarks at a ceremony on the passage of the Petroleum Industry Act (PIA), which preceded the Federal Executive Council (FEC) meeting.

According to the president, the stagnation affected the growth of the economy and the lack of political will on the part of past administrations to actualize the needed transformation, also contributed to the loss of that sum of money.

According to a statement by Special Adviser on Media and Publicity, Femi Adesina, Buhari said assent of the Petroleum Industry Bill on August 16, 2021, marks the end of decades of uncertainty and under-investment in the petroleum industry.

‘We are all aware that past Administrations have identified the need to further align the industry for global competitiveness, but there was a lack of political will to actualize this needed transformation.

‘This lack of progress has stagnated the growth of the industry and the prosperity of our economy. In the past ten years, Nigeria has lost an estimated US$50 billion worth of investments due to uncertainty created by the non-passage of the PIB.

‘This administration believes that the timely passage of the Petroleum Industry Bill will help our country attract investments across the oil and gas value chain.

‘In view of the value our Nation and investors will derive from a stable fiscal framework for the oil and gas industry, our Administration has found it necessary to work with the two chambers of the National Assembly to ensure the passage of the PIB,’ he said.

President Buhari noted that the signing of the bill was part of the administration’s commitment to building a competitive and resilient petroleum industry that will attract investment, improve our revenue base, create jobs, and support our economic diversification agenda.

The president said that as a ‘nation that depends on oil resources for the development of other sectors, Nigeria runs a Petroleum Industry that is governed largely by laws enacted over 50 years ago such as the principal legislation; the Petroleum Act of 1969 and other obsolete legislations.’

Buhari said the presidential assent of the bill to “Petroleum Industry Act 2021” marked the beginning of the journey towards a competitive and resilient petroleum industry that will attract investments to support the nation’s Economic Recovery and Growth Plan.

‘The “Petroleum Industry Act 2021” creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.

‘The Act also provides for a direct benefit framework that will enable the sustainable development of Host Communities. I appeal to the host communities to look carefully at the contents of the Bill which in the implementation will bring real and lasting benefits to them.

‘Furthermore, the Act provides for a deliberate end to gas flaring which would facilitate the attainment of Nigeria’s Nationally Determined Contributions of the Paris Agreement through a funding mechanism to support gas flare-out the project in host communities,’ he added.

President Buhari said the administration believes that the timely passage of the Petroleum Industry Bill will help our country attract investments across the oil and gas value chain.

While directing the immediate implementation of the framework for the Petroleum Industry Act (PIA), he urged all relevant stakeholders to comply and reposition for full activation within 12 months.

The president said the Minister of State for Petroleum Resources, Timipre Sylva, will head the implementation team, urging all Ministries, Departments, and Agencies (MDA) to adjust to the transition, designed to reposition the economy.

‘To consolidate the commitment of this administration to delivering the value proposition of this law, I have approved an implementation framework commencing immediately to ensure the industry envisaged in the new law begins to take shape.

‘The implementation process to be headed by the Hon Minister of State, Petroleum Resources is hereby tasked with the completion of the implementation of this act within 12 months. I am therefore directing all relevant Ministries, Departments, and Agencies of government to fully cooperate in ensuring the successful and timely implementation of this law,’ he said.

Other members of the implementation committee are: Permanent Secretary, Ministry of Petroleum Resources, Group Managing Director, NNPC, Executive Chairman, FIRS, Representative of the Ministry of Justice, Representative of the Ministry of Finance, Budget and National Planning, Senior Special Assistant to the President on Natural Resources, Barrister Olufemi Lijadu as External Legal Adviser, while the Executive Secretary, Petroleum Technology Development Fund, will serve as Head of the Coordinating Secretariat and the Implementation Working Group.

President Buhari commended the leadership of the 9th Assembly for their continued pursuit of national aspiration and demonstration of mutual harmony with the Executive in the pursuit of patriotic outcome in the passage of PIB.

‘I also commend the entire team in the executive that worked tirelessly to ensure the delivery of this strategic legislation for our country. I thank Nigerians and other industry stakeholders for their contributions and support in achieving this historic landmark,’ he said.

Meanwhile, the President of the Senate, Ahmed Lawan, cautions against tampering or manipulation in the disbursement of the three percent (500 million dollars) compensation which accrues to host communities by the appointed persons, urging the prudent deployment of the money, specifically earmarked to engender development in the host communities and end their suffering.

Lawan, who spoke to State House Correspondents after the President’s statement on the PIA, urged Nigerians not to focus on the grievances as a result of the new act but remain optimistic that the act (which can be amended) will be implemented. He equally expressed confidence that the PIA will further incentivize greater investment in the sector.

It would be recalled that the Minister of State for Petroleum had earlier reiterated that the country’s oil reserves in the last 10 years have remained at 37 million barrels.

The ceremony was also attended by Deputy Senate President, Ovie Omo-Agege, Deputy Speaker, Hon Ahmed Idris Wase and other lawmakers, members of the Federal Executive Council (FEC), and Group Managing Director of the NNPC, Mele Kyari.