PIB stalemate hinders economic growth – NESG

Daily Independent (Lagos)

22 May 2011

PIB stalemate hinders economic growth – NESG

Lagos — Nigeria's economy is under threat with the foot-dragging on the Petroleum Industry Bill (PIB), the Nigerian Economic Summit Group (NESG) declared at the weekend, warning that the non-passage of the Bill will undermine growth.

The PIB has been in the National Assembly (NASS) since December 16, 2008.

NESG Director General, Frank Nweke, argued that the uncertainty in the oil sector, which has caused investors to divest or withhold new investment, will worsen.

+++

Nweke said in a statement that the non-passage of the PIB will constrain the implementation of power reform and the national gas master plan.

"Gas flaring will continue with the attendant loss of revenues, adverse environmental and health impact on our people. Sustainable funding of joint venture (JV) operations will remain a challenge and so will government efforts to ensure accountability within the sector," he warned.

He urged the NASS to pass the Bill "for the sake of God and country," adding that not doing so will mean that Nigerians "will not fully harness the benefits of the Local Content Act. It will further delay the much needed deregulation of the oil and gas sector.

"The atmosphere of uncertainty which has pervaded the sector since government first proposed the reforms and caused investors to either divest or withhold new investment will worsen. Development of new oil and gas fields will certainly be jeopardised.

"All of these will imperil the job creation efforts of government and endanger the amnesty programme. The aspiration of Nigerians to have a commercially viable, profitable, and well run national oil company will be dashed.