Nigeria Passes Oil Reform Bill but Governors Want Power Shift

The Nigerian Senate has passed a long-awaited oil industry reform bill that will overhaul nearly every aspect of oil and gas production. The Petroleum Industry Bill has been two decades in the making to overhaul the way Nigeria will share its oil resources with international oil companies and aim to attract new investment in oil and gas. In the bill, the Senate approved a funding mechanism of 30 percent of NNPC's profit from oil and gas for frontier basins. This fund is for oil exploration in frontier states. The governors rejected the proposal. Governors from the southern part of the country rejected the proposed three percent share of oil profits for host communities in the Petroleum Industry Bill (PIB), including the suggested ownership structure of the Nigerian National Petroleum Corporation, (NNPC). The governors want a five percent share of oil profits for host communities and insisted that the NNPC should not be vested in the Federal Ministry of Finance as proposed. Community leaders in Nigeria's oil-rich regions want changes to the latest version of the bill, asking for a larger share of revenues for the community. 

Last month, Nigeria's National Petroleum Corporation said it had signed a deal with Shell, Exxon, Total, and Eni to develop an offshore oil block that includes the deepwater Bonga field. The NNPC noted the deal marks a historic moment as it settles long-running disputes between the Nigerian government and international oil companies.


(file photo).

AllAfrica publishes around 800 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.