NNRC Business Lunch: What would the Charter say about the Petroleum Industry Bill (PIB)?

Event

NNRC Business Lunch: What would the Charter say about the Petroleum Industry Bill (PIB)?

16 March 2013

Lagos-7 March- A Nigerian Natural Resource Charter (NNRC) steered business lunch on the 
Petroleum Industry Bill (PIB) brought together prominent members of the media and some members of the Expert Panel of the NNRC at the Regent Hotel in Lagos.  The event was held to evaluate the key provisions and objectives of the Petroleum Industry Bill (PIB) against best practices outlined in the Charter.

Presentations were made by two members of the Expert Panel of the NNRC- Mr. Tunji Lardner and Ms. Lois Laraba Machunga.

In his presentation, Mr. Lardner – a prominent public policy analyst and Executive Director of WANGONeT – discussed how the objectives of the present PIB addressed issues of social development, equity and transformations as proposed in Precepts 1, 2, 11 and 12 of the Charter. He analyzed how the provisions of the current PIB ensure that every transaction in the oil and gas value chain culminates into the transformation of the lives of Nigerians.  The precepts examined by Mr. Lardner suggest best practices aimed at ensuring that the greatest social and economic benefits accrue to the people of Nigeria from the exploitation of its national resources.

Ms. Lois Laraba Machunga- an industry expert and founder of JALZ Energy Ltd- benchmarked the provisions of the PIB against the guidelines in Precepts 3 to 6 of the Charter. These precepts suggest best practices for activities on the value chain regarding the fiscal regime, award of contracts, local impacts and the workings of the national oil company. Ms. Machunga highlighted issues in the PIB which do not satisfy international best practices as suggested in the Charter and which need to be addressed.

A key observation made during the presentation was that there are overarching institutional challenges in several sectors beyond the petroleum sector. For instance there is a significant gap between legislation and implementation of legislation. Should these larger systemic issues continue to go unaddressed; even the best PIB will not be a success. A lively discussion followed the experts’ presentations. From prominent bloggers to television personalities, journalists focused on strategies for a better way forward, keeping the NNRC best practices in mind.

The members of the Expert Panel of the NNRC came together in November 2012 to discuss and score the Nigerian oil and gas industry as it stands against international best practices suggested in the Charter. The result from this scoring was compiled into a report called the “Benchmarking Report”. This report was disseminated to participants at this event. The report provides a comprehensive overview of the state of the industry against international best practices. Future scoring reports will serve as a useful analytical tool in order to track the progress made in the sector. Click here to access benchmarking report: http://nigerianrc.org/content/benchmarking-exercise-report

How do you think Nigeria is doing in governing its oil and gas sector? We invite the public to provide their opinion on the state of the industry against the precepts by conducting their own scoring here: http://nigerianrc.org/have-your-say

There are more NNRC events planned for April that will facilitate discussions with stakeholders on the fuel subsidy dilemma and the local content challenge. Visit the website for updates on these events.

 

To read the presentations made at this event, click here: http://nigerianrc.org/content/expert-panel-presentations  

NULL