Nigeria has often been described as suffering from the theoretical concept of. Fiscal consolidation, inclusive growth and job creation. Fiscal regime under the new petroleum industry bill. At the time of our report, the news coverage had focused on the president rejecting the bill because it whittled down his powers. The proposed legislation, the petroleum industry bill pib, is currently under legislative consideration and represents the most comprehensive. Nubari criticised the decision of the senate not to address the petroleum host community fund first as in his opinion this is the most critical piece of the raft of legislation to be passed. Nigeria is a multiethnic and culturally diverse federation which consists of 36 autonomous states and the federal capital territory. While the pib contemplates a major overhaul of the nigerian petroleum industry legal regime, it preserves a handful of other.
Information is provided and updated by press information bureau a wing, shastri bhawan, dr. Nigeria is currently the largest oil producer in africa and was the worlds. According to the local media, the resident coordinator for the united nations development programme dismissed the new classification as a statistical hypothesis, and. Given the challenges confronting production and provision of energy in nigeria, the petroleum industry bill pib 2012 must be strengthened to recognize and advance the developmental potentials of the oil and gas sector in addition to the revenue maximization goal unmistakably at the heart of the present version of the bill. Pdf the politics and crisis of the petroleum industry bill in nigeria. Nnpc also manages the governments stake in nigerias oil operations as a parastatal. Farouk vs otedola no more update, fuel subsidy report various committees no report etc. Environmental policies and strategies in nigeria oil and. In the context of the 20 article iv consultation with nigeria. Youth should be one of the main economic assets for a country or a region.
This report was prepared by a world bank team led by john litwack lead economist. As proposed, the pib would function as umbrella legislation for the nigerian petroleum industry. Nigeria has moved closer to turning an oil industry bill into law after a 17 year struggle to complete the legislation which aims to increase transparency and stimulate growth in the countrys oil. The petroleum industry bill and the future of nnpc natural. For its part, the solid minerals sector remains minor, accounting in 2012 for 0. Improving sector performance through strong transparency and accountability provisions july 2011 by aaron sayne if the final petroleum industry bill pib contains strong transparency and accountability provisions, nigeria s oil sector performance has real opportunity to improve.
Comparative fiscal regime analysis of deepwater projects. The impact of nonpassage of pib included amongst others. They claim that the proposed fiscal terms will affect their bottom line and trigger uncertainties in their investments in the upstream sector. Overview nigeria is currently the largest oil producer in africa and was the worlds fourthlargest exporter of lng in 2015. Public disclosure authorized nigeria economic report.
May 26, 2017 senate passes petroleum industry bill, pib. Nogicd act consistent philosophy, focused on developing incountry capacity pib will create further opportunity for the capacities national assembly working on nigerian. Nigeria gdp annual growth rate 19822019 data 20202022. A declining proportion of children and a simultaneous. An analysis of the nigerian petroleum industry bill 2012. Improving sector performance through strong transparency and accountability provisions july 2011 by aaron sayne if the final petroleum industry bill pib contains strong transparency and accountability provisions, nigerias oil sector performance has real opportunity to improve. Nigeria is amongst highest ranking oil producers but not a high ranking oil and gas country. After this introduction, part two will analyze the key features and the objectives of the bill, part three will examine and comment on some of the salient debates surrounding the pib. For example, as under the petroleum act currently in force, it vests the ownership of petroleum in the government of the federation, effectively maintaining federal control of petroleum resources in nigeria. Nigeria has been unable to meet its gas supply obligation to its west african neighbors, while its plan to build the transsahara gas pipeline to europe is still pending.
Fiscal regime under the new petroleum industry bill pwc. By taiwo oyedele from sports to entertainment, tourism to technology, infrastructural development to industrialisation, and the list goes on nigeria is a country that is often celebrated more for her potentials than real achievements. Since then, there have been various reports on the refusal of the president to assent to the first of four bills seeking to reform the nigerian oil. The much anticipated petroleum industry bill, 2012 the pib was presented by the executive arm of the nigerian government to the 7 th session of the national assembly on 18 july 2012 to enable the commencement of legislative deliberations on the pib, a prerequisite for its eventual passage into law.
On tuesday december 2011, the president of the federal republic of nigeria presented the 2012 federal budget proposal to the joint session of the national assembly under the theme fiscal consolidation, inclusive growth and job creation. A press release summarizing the views of the executive board as expressed during its march 30, 2016 consideration of the staff report that concluded the article iv. I have heard of various petroleum bills this one is authentic whose report to believe. The pib is an executive bill for an act to provide for the establishment of a legal, fiscal and regulatory framework for the petroleum industry in nigeria and for related matters. Looking forward, we estimate gdp annual growth rate in nigeria to stand at 2. The economy of nigeria is a middleincome, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. Nigerias oil production is hampered by instability and supply disruptions, while its natural gas sector is restricted by the lack of infrastructure to. Nigeria in september, 2012 and read again for the first time on the 19th day of september, 2012. The 2012 executive draft of the petroleum industry bill 2012 pib proposes to restructure the nige. Under the 2012 pib, the minister of petroleum is responsible for the coordination of the activities of the petroleum industry in nigeria and exercise general supervisory powers over the. We understand that president buhari has rejected the petroleum industry governance bill sent to him by the national assembly.
The previous pib 2012 version accorded discretionary powers to the minister of petroleum. Pdf the petroleum industry bill 2012 and the niger delta region. In order to address these issues the petroleum industry bill pib. The budget for the coming year appears to address key sectors of the economy with specific. Osiwa rethinking nigerias petroleum industry bill pib.
Last week we reported that the president withheld his assent to the petroleum industry governance bill pigb. Importance of full deregulation in a post pib economy. A declining proportion of children and a simultaneous increase in the share of the youth and workingage adult. Nigeria s oil production is hampered by instability and supply disruptions, while its natural gas sector is. Nigeria, the following documents have been released and are included in this package. The international oil companies iocs in nigeria have expressed concern over the federal governments intention to change the laws governing the oil and gas industry including the fiscal terms. The draft petroleum industry bill 2012 new cutting edge elementary pdf referred to as pib hereinafter has been. Download the authentic petroleum industry bill 2012. The result would assist policy makers to recognize the sources of any fiscal imbalance that might exist and consequently, direct efforts to developing suitable strategies for a sound fiscal framework. This created divergent views amongst stakeholders, and partly accounted for the nonpassage of the bill. In the longterm, the nigeria gdp annual growth rate is projected to trend around 2. Nigeria passes major oil reform bill after 17 year. Joint memorandum on petroleum industry bill march 2012 amnesty international may 2012 index. A case for reform in nigeria executive summary nigeria s national oil company, the nigerian national petroleum corporation nnpc, sells around one million barrels of oil a day, or almost half of the countrys total production.
Lessons from ghana the news was met with equal confusion in ghana. As critical stakeholders, the workers in the industry, through the two unions in the nigeria oil and gas industry namely, national union of petroleum and natural gas workers nupeng and petroleum and natural gas senior staff association pengassan. The petroleum industry bill 2012 pib seeks to ensure that the management and allocation of petroleum resources in nigeria and their derivatives are conducted in accordance with the principles of good governance, transparency and sustainable development in nigeria. The presidency upon the approval of the federal executive council fec forwarded the 2012 pib to the national assembly on 18th july 2012.
The petroleum industry bill pib, which was initially proposed in 2008, is expected to. Petroleum industry bill pib 2012, niger delta region of nigeria, oil and. Jan 28, 2014 the petroleum industry bill 2012 pib seeks to ensure that the management and allocation of petroleum resources in nigeria and their derivatives are conducted in accordance with the principles of good governance, transparency and sustainable development in nigeria. Status of the nigeria oil and gas industry in light of the pib controversy in any country in the world the government has the primary responsibility for developing its economy and its people and this is true of nigeria in general and the oilproducing niger delta communities in particular. Senate passes petroleum industry bill, pib vanguard news. Valores atuais, dados historicos, previsoes, estatisticas, graficos e calendario economico nigeria pib. Status of the nigerian oil and gas industry the pib controversy. The new rebased gdp figures may also undergo further refinement in the near future. Comparative fiscal regime analysis of deepwater projects in. Nass removes host communities fund from pib vanguard news.
A key regional player in west africa, nigeria accounts for about half of west africas population with approximately 202 million people and one of the largest populations of youth in the world. Nigeria s petroleum act of 1969, which has only 16 sections. Nigeria experienced its first fullyear of recession in 25 years. Dynamics, controversies and wayforward ppt presentation pack of the main paper.
Unemployment is very high more than 60% of the population lives below the poverty line. Despite these proposals, the pib retains and restates to a large extent some of the extant provisions of law. Gdp at purchasers prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. The key objectives of the bill as stated in part 1 of the pib are.
Its seven most populous cities each house more than one million people, and about one out of two west africans is from nigeria. Manufacturing in nigeria history of the nigerian manufacturing sector since a peak of 7. Press release and statement by the executive director for nigeria under article iv of the imfs articles of agreement, the imf holds bilateral discussions with members, usually every year. Pdf nigeria is a major oil and gas producing country. Afr 440312012 6 set percentage of oil revenues, and should be adequate to carry out its functions independent of the oil industry and should be based on a clear funding structure, for example, a specific. Nigeria union of petroleum and natural gas workers, nupeng, and petroleum and. This is the last quarter of 2012 and nigeria is yet to make significant progress towards achieving zero flare from where she was when the policy to end gas flaring was formulated, when this projection was made. The country must tackle dilapidated infrastructure and overdependence on oil and gas. The petroleum industry bill, pib 2012 is designed to provide a comprehensive legal framework. The african statistical journal, volume 15, august 2012 15 1.
Status of the nigerian oil and gas industry the pib. Request pdf on jan 1, 2017, gbakon kaase and others published comparative fiscal regime analysis of deepwater projects in nigeria ppt psc1993, pib iat 2009, and pib 2012 find, read and cite. The presidents rejection of the pigb poses a significant set back to the oil and gas reforms going through the national assembly. Nigeria overtook south africa on sunday to become africas largest economy and 26th largest in the world after the government released updated figures that. In comparison, the average for the 26 african countries in revenue statistics in africa 2019 remained at 17. Pdf the nigerian petroleum industry bill pib, which is currently being discussed in parliament, aims at reforming the oil industry. The 2012 executive draft of the petroleum industry bill 2012 pib proposes to restructure the nigerian national petroleum corporation nnpc. Nigeria almost doubles gdp in recalculation financial times. It has been five years since the start of a global financial crisis that has given rise to the largest wave of banking crises seen since the great depression. The executive council of the federation fec on wednesday approved the new draft petroleum industry bill pib, saying the document would be delivered to the national assembly in the next couple. Nigeria is the most populous cou ntry in africa, the second biggest economy, the third largest military power and the biggest oil producer 10th oil producer in the world.
On january 1, 2012 the goodluck jonathan led federal government announced a shocking and unexpected stoppage to the petroleum subsidy fund. Global oil prices reached a year low and oil production was crushed by vandalism and militant attacks in the niger delta, resulting in severe contraction of oil gdp. Pdf the challenges and implications of a post pib nigeria for the. Vasco molini economist provided the primary analysis for chapter 2. It is ranked as the 27thlargest economy in the world in terms of nominal gdp, and the 22ndlargest in terms of purchasing power parity. The bill, which still needs to be passed by the house of representatives and assented to by the president of the frn before it becomes law, seeks to establish a framework for the creation of commerciallyoriented and profit. The guardian nigeria newspaper brings you the latest headlines, opinions, political news, business reports and international news. Clearly, the preceding information is an indirect indication of environmental policies and strategies inadequacies or out. The gross domestic product gdp in nigeria was worth 410 billion us dollars in 2019, according to official data from the world bank and projections from trading economics.
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