On Thursday, Nigeria’s long-overdue oil sector reform bill, expected in 2008, was finally passed by the parliament of Africa’s top oil-producing country.
The parliamentarians agreed through a vote, to approve the rather long-overdue oil and gas law, aiming to bring new investments into the country’s oil industry.
“Both the senate and house of representatives have passed the Petroleum Industry Bill (PIB). It’s a landmark feat by the current National Assembly after many years of delay,”A spokesperson for the senate president said
The bill has for long been under review in the country’s parliament, for close to some 20 years. Various arguments have been raised against the bill including, the amount of revenue to be alocated to local communities in oil-producing areas.
Since its submission to the country’s parliament in 2008, the bill has been debated and rewritten so many times, especially due to the terms between the government and foreign investors.
End Of The Era Of Foreign Oil Exploitation
Nigeria, Africa’s largest producer of oil, has a citizenry of over 200 million people. The country exports nearly 1.9 million barrels of oil daily, however, the oil industry has received little to no investments. The industry is also ridden with low productivity, dilapidated infrastracture and poor progress.
This is highly due to poor management and inappropriately calculated deals with foreign investors, at the detriment of the country’s growth.
The speaker welcomed the new bill and said it was an ‘important victory’.
The bill is aimed at providing a clearer system and simplified taxes and payment systems for all Nigerian oil companies.
This new change is focussed on three important sectors. They are the control of taxation, more improved distribution of resources and the conversion of the Nigeria National Petroleum commission into a commercial institution.
Nigerians all over the world are hopeful that the new bill will bring more investors to invest now since most people are gradually losing interest in oil and fossil fuel-related businesses.
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