The National Assembly has transmitted the much-awaited Petroleum Industry Governance Bill (PIGB), to President Muhammadu Buhari for his assent.
The development comes about four months after the harmonised version of the PIGB was adopted by the Senate.
A source close to the office of the Senate President told BusinessDay that a clean copy of the Bill was sent to President Buhari on July 3, 2018.
It would be recalled that while the Senate passed the bill on May 25, 2017, the House of Representatives passed its version on January 25, 2018.
However, both chambers set up conference committees to harmonise the two versions. In March 2018, both legislative chambers passed the harmonised version of the PIGB.
But due to some contentious clauses, the National Assembly Legal Directorate returned the document to both chambers for further legislative action.
Consequently, the two chambers passed the harmonised bill last month.
The PIGB seeks to unbundle the Nigerian National Petroleum Corporation (NNPC), provide for the establishment of the Federal Ministry of Petroleum Incorporated, Nigerian Petroleum Regulatory Commission, Nigerian Petroleum Assets Management Company and National Petroleum Company and Petroleum Equalisation Fund.
The bill bulkanises the NNPC and creates the National Petroleum Commission, which takes over the functions of the Department of Petroleum Resources (DPR).
If signed into law, the Nigeria Petroleum Regulatory Commission will take over the functions of the Petroleum Inspectorate, Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA).
The bill empowers the Commission to administer and enforce policies, laws and regulations relating to all aspects of petroleum operation; monitor and enforce compliance with the terms and conditions of all leases, licences, permits and authorisations issued in respect of any petroleum operations; define and enforce approved standards for design, construction, fabrication, operation and maintenance for all plants, installations and facilities utilised or to be utilised in petroleum operations; establish, monitor, regulate and enforce health and safety measures relating to all aspects of petroleum operations; establish the framework for the validation and certification of national hydrocarbon reserves; advise the Minister on fiscal and other issues pertaining to the petroleum industry; undertake evaluation of national reserves and reservoir management studies.
It also empowers the Commission to issue licences, permits or authorisations for downstream gas, petroleum products, storage depots, retail outlets, transportation and distribution facilities for the industry.
“There shall be established the Petroleum Equalisation Fund into which shall be paid all monies payable to the Equalisation Fund by way of a 5 percent fuel levy in respect of all fuel sold and distributed within the Federation which shall be charged subject to the approval of the Minister (of Petroleum)” Section 36 (1) (a) of the bill states.
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.
OWEDE AGBAJILEKE, Abuja
