The Lagos Chamber of commerce and Industry (LCCI) has commended the Federal Government for the successful enactment of the Petroleum Industry Act (PIA) 2021, noting however that the government needs to pay attention to the implementation of the provisions of the Act in order to reap the full benefits.
Similarly, Quest Oil and Engineering Services Limited, an indigenous energy provider, also expressed optimism that the PIA will unlock investments in the oil and gas sector.
In a statement made available to Financial Vanguard, the Director General, LCCI, Dr. Chinyere Almona, noted that the Act has opened windows of opportunities in the oil and gas industry, with renewed optimism for increased inflow of investments, revenue generation and job opportunities.
She stated: “The new law has put an end to the decades of uncertainties concerning the future of the oil and gas industry in Nigeria. The PIA provides a robust legal framework that will support the reforms required to position the industry as an investment haven that attracts investors from across the globe.
“With the emergence of a more structured industry, it offers a level playing ground that can attract massive Foreign Direct Investments (FDIs) into the country. This Act will also promote more competition that could bring about a more efficient system, more product choices, and lower prices in the long-term.”
Almona added that, to ensure a successful and inclusive implementation of the PIA 2021, LCCI recommends as follows: “There is a need to create more understanding through public enlightenment about the three percent revenue allocation to host communities to forestall a misunderstanding of the government’s intentions and raise tensions in the oil-producing region. “Beyond the enlightenment, there should also be a monitoring mechanism to ensure that the allocated funds are judiciously used for the development of the host communities.
“The government should be firm and clear in their communications about the removal of oil subsidies or otherwise.
Policy statements influence business decisions. The divergent statements by different government officials on the removal of oil subsidies create uncertainty. This is unhealthy and not standard practice for a sector that hosts billions of dollars of investment.
“The unbundling of the Nigerian National Petroleum Corporation (NNPC) should be done in such a way that it does not create unnecessary bottlenecks and bureaucracy in contract administration and project management in the oil and gas industry. The emerging companies should be run in line with the Companies and Allied Matters Act (CAMA) and the Code of Corporate Governance.”
Meanwhile, in another development, speaking in an interaction with a select media, the Chief Executive Officer of Quest, Mr. Dele Goke, stated that the PIA will change Nigeria’s oil and gas sector for the better.
“The PIA will mark a new dawn and the beginning of a major repositioning in the Nigerian oil and gas industry”.
According to him, “It gives us great pleasure to contribute our quota to national economic growth by providing clean and affordable petroleum services to Nigerians. Our investment in the downstream sector symbolizes our reinvigorated strategy for the Nigerian market. This is in fulfillment of our goal of providing affordable, clean, reliable and sustainable energy to all in line with the United Nations SDG 7.”
Also speaking, Dele Taiwo, Chief Operating Officer of the company stated :”Riding on the declaration by the Minister of state, Petroleum Resources, Timipre Sylva, to dedicate the new decade to the promotion and adoption of natural gas as the fuel of choice for national growth, we have channeled significant resources towards optimizing our service portfolio, not just to provide better quality of services to our customers, but also to create a sustainable energy ecosystem that aligns with our Environmental, Social and Governance (ESG) goals.”
