Pictured: H.E. President Muhammadu Buhari. Image: Channelstv.com
Nigeria’s groundbreaking Petroleum Industry Bill (PIB) has officially been signed into law by H.E. President Muhammadu Buhari, ushering in a new wave of investment and positioning the country as a global energy competitor.
The PIB comprises a complete legislative restructuring of Nigeria’s oil and gas sector, providing a comprehensive framework that emphasizes coherency and transparency. With twenty years of deliberation and revision behind it, and insight from international oil companies and government representatives, the final implemented PIB is expected to enhance regulatory certainty and administrative efficiency in the country’s oil and gas sector.
Comprising 16 petroleum laws, the national oil company’s restructuring, and the provision of improved fiscal terms, the PIB aims to enhance the sector’s attractiveness to international investors, particularly in a post-COVID-19 reduced capital expenditure climate. In addition to unlocking additional investment, the PIB includes a strong environmental and social component – emphasizing local capacity, community interests and environmental safeguarding – setting a high standard for other African countries seeking progressive regulatory reform.
The passing of the PIB into law has been commended by industry leaders, regional governments, and international stakeholders, with the Organization of the Petroleum Exporting Countries Secretary General Mohammed Barkindo issuing a congratulatory letter to the President.
“I wish to extend my congratulations to you on signing into law the PIB, which marks a significant milestone for Nigeria’s oil industry and a historic achievements for your Presidency. You have inaugurated a new era for the industry following years of legislative efforts to strengthen the legal, regulatory, fiscal and governance framework of the petroleum sector,” stated Barkindo.
“Indeed, the new law will enhance the Nigerian petroleum industry’s reputation, open the door to new investment, and ultimately strengthen its position to meet the world’s growing demand for energy,” continued Barkindo.