House Ad Hoc Committee on PIB Meets with NNPC and Minister to Address Grey Areas

Strategic Insights -

The House of Representatives Ad hoc Committee on PIB met with the Minister of Petroleum (State), Timipe Sylva, and the Group Managing Director of the NNPC, Mele Kyari, to discuss the grey areas of the bill. The meeting, which lasted for five hours, was aimed at addressing the concerns of the International Oil Companies (IOCs) and ensuring a fair and competitive fiscal regime for the sector. The committee hopes to meet the July deadline for the passage of the bill before embarking on its annual recess.

Key Takeaways:

  • The House of Representatives Ad hoc Committee on PIB met with the Minister of Petroleum (State), Timipe Sylva, and the Group Managing Director of the NNPC, Mele Kyari, to discuss the grey areas of the bill.
  • The meeting, which lasted for five hours, was aimed at addressing the concerns of the International Oil Companies (IOCs) and ensuring a fair and competitive fiscal regime for the sector.
  • The committee aims to meet the July deadline for the passage of the bill before embarking on its annual recess.
  • The Senate President, Ahmad Lawan, assured that the report on the bill would be laid on Tuesday.
  • The House conducted a public hearing on the bill in January, where some IOCs raised concerns about multiple-taxation, arbitrary powers of the regulatory agencies, and the need to preserve base businesses and rights for existing Joint Venture licenses and leases.
  • The IOCs, represented by Total Nigeria, Shell, Chevron, and Exxon Mobil, warned that the fiscal regime, as proposed in the new bill, was "globally uncompetitive" and would hurt several deep offshore investments in the country.
  • The committee will meet again on Tuesday to fine-tune the grey areas of the bill and ensure balance by accommodating the concerns of the IOCs while protecting the interest of Nigeria.
  • The fiscal regime must be competitive enough to incentivize investors to the sector, according to the House Spokesperson, Ben Kalu.
  • The bill will be structured in a manner that is beneficial to the companies and Nigeria, ensuring a win-win for both parties.

Statistics:

  • The meeting between the committee and the Minister of Petroleum (State) and the Group Managing Director of the NNPC lasted for five hours.
  • The committee hopes to meet the July deadline for the passage of the bill.
  • The Senate President, Ahmad Lawan, has assured that the report on the bill would be laid on Tuesday.
  • The public hearing on the bill was conducted in January.
  • 47 out of the 360 members of the House of Representatives were present when the bill was passed in the 7th Assembly (2011-2015).

Sources:

  • PREMIUM TIMES (https://www.premiumtimesng.com/news/more-news/427991-reps-vow-to-pass-pib-bill-before-promisedmarch-2021.html)
  • PREMIUM TIMES (https://www.premiumtimesng.com/news/more-news/43opposition9007-pib-nupeng-pengassan-fault-proposed-tax-regime.html)