Oil workers reject PIB

Oil workers in the industry’s three regulatory agencies have rejected the redrafted Petroleum Industry Bill (PIB) soon to be presented to the National Assembly.

OIL

The PIB is to replace the one passed by the Seventh Assembly but which was not assented by the president.

Minister of State for Petroleum Resources Dr. Ibe Kachikwu had announced plans by the government to send another draft of the bill for the lawmakers’ consideration. The old bill, he said could not meet the yearnings of value-addition to the oil industry. But the content has not been made public.

But yesterday, workers in the Department of Petroleum Resources (DPR), Petroleum Products Pricing Regulatory Agency (PPPRA) and Petroleum Equalisation Fund (PEF), said they would not accept the draft bill because it neglects their welfare.

The workers said: “Petroleum Industry Governance & Institutional Framework Bill 2015”, if allowed to be passed into law, the bill, will lead to job cuts in some of the regulatory agencies. The bill seeks to provide the governance and institutional framework for the petroleum industry and other related matters.

The workers operating under the auspices of Regulators Forum have petitioned the national leadership of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) not to allow the bill scale through without taking care of the anomalies contained in it.

The petition signed by PENGASSAN Chairman, PPPRA Chapter, Victor Ononokpono, along with his DPR counterpart, Garba Bello, and PEF, Aminu Ahmed, said the concerns of the workers bordered on observations that the redraft institutional and legal framework for reforms in the oil and gas industry may have inadvertently left the oil workers in the cold.

While commending the Minister’s effort to stimulate reforms in the industry after several failed attempts, they argued that some inconsistencies in the draft PIB had stirred some fears about a veiled attempt by the government to sack its members.

They drew attention to some of the inconsistencies, especially in Part 3 of the redraft PIB which seeks to establish the Nigeria Petroleum Regulatory Commission (NPRC), Section 13, on the composition of its Board, and Section 87, on the Transfer of staff.

They noted that the Bill provides that the Commission would combine the monitoring and regulatory roles and responsibilities of DPR and PPPRA to “administer and enforce policies, laws and regulations relating to all aspects of petroleum operations.”

They expressed concern about the silence of the redraft Bill on the fate of the Petroleum Equalisation Fund (PEF) vested with the responsibility of ensuring uniform pricing of petroleum products, adding that “the union senses a subtle ploy to retrench or drop some of the work force transiting to the Nigeria Petroleum Regulatory Commission with the contentious clause on ‘transfer of certain employees.

“Cessation of employment and transfer of staff should be automatic and guaranteed as provided by the Public Service rules and Constitution of the Federal Republic of Nigeria.”

According to the workers, unlike the former PIB, the redraft bill does not make provision for the representation of the organised labour on the board of the Nigeria Petroleum Regulatory Commission (NPRC).

To the workers, the redraft bill is a departure from the provisions of the original draft 2012 Bill. Part D, Section 47 (2) (f) and (g) on the Board of the Downstream Petroleum Regulatory Agency (DPRA), representatives of the two major oil workers unions, the National Union of Petroleum and Natural Gas Workers (NUPENG) and PENGASSAN were listed as members.

“Apart from the uncertainty of the agency’s institutional role, the draft Bill as currently drafted will create job loss, as no provision for absorption or transfer of service for the work force is contemplated,” the oil workers’ representatives said.

“The Central Working Committee must make a public position known on the non-inclusion of organised labour in the composition of the governing Boards of Commission against international best practice.”

They asked the national unions to extract a memorandum of understanding on the re-drafting of the contentious issues, particularly as it concerned job loss of PENGASSAN members across the existing agencies (PEF, PPPRA and DPR).

Oil workers reject PIB

Senate President reads Riot Act on unremitted funds, says era of profligate is over

ABUJA- CHAIRMAN, Chairman of Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, Engr. Elias Mbam said yesterday that report on the N8.64 billion wardrobe allowance for Senators and Members of the House of Representatives as being over exaggerated.

Senate

This came as the just as the Senate President, Senator Bukola Saraki read out riot act to government agencies that have not been remitting Federal Government revenue to the Federation account, warning that the government will no longer condone such mismanagement act.

Speaking yesterday when he paid a courtesy visit on the President of the Senate, Senator Bukola Saraki, the Earlier, the RMAFC Chairman disclosed that wardrobe allowance as spelt out by the Commission has been put at 25 percent of the basic salary which when broken down amounts to N506, 600 per legislator, per annum.

Mbam who noted that the agency has bern enjoying cordial relationship with the National Assembly, however called for continued working partnership with a view to enhancing their effectiveness, just as he advised that the agency operates a functional website where information concerning the day-to-day activities of the agency.

Meanwhile, President of the Senate, Senator Bukola Saraki while responding to the RMAFC boss, read out riot act to government agencies that have not been remitting Federal Government revenue to the Federation account, warning that the government will no longer condone such mismanagement act.

Senator Saraki who noted that non-compliance by agencies of government has brought major setback in the processes of governance, however reiterated the support of the Senate in bringing back justice to any erring agency that indulges in diverting government revenue to illegal channel adding, “Monetary revenue and allocation is a serious challenge to our economy. Though, diversification of economy is very important but is not an overnight issue. We must block every leakage in government revenue.

“We made campaign promises to Nigerians and we must fulfill all our pledges. It cannot be business as usual. We will do everything within our capacity to elevate the living standard of Nigerians.”

President of the Senate who cleared air on the N8.64billion bogus wardrobe

allowance to lawmakers as reported in the media, stressed that the Commission was charged with fixing of remunerations to public office holders and advised the media to be more accurate in their reporting.

In a related development, the Senator representing Kogi West, Senator Dino Melaye has condemned the proposed N8.64 billion wardrobe allowance to be received by lawmakers in the 8th National Assembly, just as he urged the lawmakers to be prepared to accept a pay cut due to the situation in the country.

Senator Melaye said, “I stand solidly on what I earlier said about pay cut. There must be a pay cut to Senators and House of Representative members.

“You can’t be talking about change and this kind of money in this country now when people are hungry. We must be sacrificious. We must show Nigerians that we must sacrifice by allowing a pay cut.”

 

Senate President reads Riot Act on unremitted funds, says era of profligate is over

Fresh crisis looms in oil industry, PENGASSAN warns

The nation’s oil sector will be subjected to a higher level of instability owing to the continued delay in the passage of the Petroleum Industry Bill by the National Assembly, a new report has said.

The report was developed by the Petroleum and Natural Gas Senior Staff Association of Nigeria on the state of the petroleum industry and the association’s expectations from the new government, a copy of which was obtained by our correspondent on Friday.

The delay in passing the bill, according to the report, will aggravate the anxiety within host communities of oil companies waiting to benefit from the PIB’s provision of 10 per cent Host Community Fund and accept accountability for sabotage of oil installations in their areas.

The irregular funding of Joint Venture budget and the non-payment of cash call obligations in the face of the dwindling oil revenue, it stated, were likely to continue, thereby prolonging the era of economic volatility.

It will be recalled that on June 4 this year, the House of Representatives eventually passed the PIB along with a number of other pending bills. But the bill did not receive the approval of the Senate before it wound down its activities.

The bill, when passed into law, is expected to clarify the rules and procedures that will entrench good governance, transparency and accountability in the oil and gas sector as well the operational and fiscal terms that will enable Nigeria to competitively retain equitable proportion of revenue accruing from oil and gas industry operations.

PENGASSAN noted in the report that the country had not succeeded in integrating under one law the fiscal policies, instruments and institutions governing the oil industry.

It also stated that the industry’s legal/regulatory framework, which had been regularly subjected to ministerial discretion and fiat, would likely continue, notwithstanding that the development had significantly caused the suspension and diversion of several investment projects to other African countries.

According to the report, existing and prospective investors seriously yearn for basic incentives to stimulate their business interests across the industry’s value chain, and the delay in the PIB passage is, however, restraining the aspiration.

The report said, “There is the need for an all-inclusive stakeholders’ summit involving industry operators/players; representatives of the Presidency; National Assembly; security and service chiefs; state governments; ministries, departments and agencies of the government; the Nigerian National Petroleum Corporation; the Nigerian Extractive Industry Transparency Initiative; revenue offices; Nigeria Labour Congress/Trade Union Congress; the Nigeria Union of Petroleum and Natural Gas Workers/PENGASSAN, among others.

“The summit should be aimed at harmonising the grey areas in the bill and ensuring its accelerated passage in a fair and equitable manner. While the PIB is being attended to, government must resolve the foggy issues in fiscal stability and predictability of the extant laws and the regulatory framework; uncertainty around the portfolio assets leasing to allow the operators the first right of renewal; and pending cash call on the JV operation expenditure and improved funding of capital projects.”

Few members of the House of Representatives had passed the controversial PIB in a race to beat the expiration of the tenure of the seventh National Assembly.

Only 47 out of the 360 members of the House remained in the chamber at the time the session, which was presided over by the then Deputy Speaker, Mr. Emeka Ihedioha, considered and passed the bill.

However, the passage of the bill was of no effect as it did not receive the mandatory concurrence from the Senate.

The seventh Senate, which formally rounded off its tenure recently, had abandoned the PIB at the committee stage, a development which rendered the bill passage by the House an “effort in futility.”

By legislative proceedings, a bill is considered passed only when the passage is done by both chambers of the National Assembly.

The failure of the Senate to pass the bill had transferred its fate to the just inaugurated eighth National Assembly.

Fresh crisis looms in oil industry, PENGASSAN warns

National Assembly to abandon PIB

The current National Assembly may abandon the Petroleum Industry Bill owing to the slow progress of work on it.

Senate

The PUNCH observed on Wednesday that it was becoming clear that the bill might be abandoned as senators and members of the House of Representatives have only 16 days to the end of the 7th National Assembly.

Findings showed that while the Senate is behind by not reporting the bill out of the committee stage, the House which started considering its own report last week, was being slowed down by disagreements among lawmakers over the many clauses in the proposed law.

For example, at the resumed consideration of the report by the House on Wednesday, members hotly disagreed over the funds oil majors were expected to share with the Federal Government for exploration activities in the River Basins.

Many clauses had to be deferred in the course of consideration as members also raised constitutional questions on some of the provisions.

Faced with the ensuing disputes among members, presiding Deputy Speaker   Emeka Ihedioha referred all contentious issues back to the Ad hoc Committee on PIB to be re-taken.

Ihedioha had observed that members were arguing more on issues as they affected their interests, adding, “Whatever interest you have cannot be more than the national interest that this parliament and this House in particular has.”

He later adjourned further consideration till Tuesday next week.

There were doubts on Wednesday whether the House would conclude work on the 348- clause document before the valedictory session of the House fixed for May 27.

Investigations showed that of concern was the fact that the Senate was behind and was not likely to make any serious progress on the bill before May 29.

A National Assembly official, who spoke with The PUNCH on the progress of the bill said, “The efforts of the House, though commendable, will end up as being futile.

“We all know that a bill becomes law only when passed by the two chambers of the National Assembly and is assented to by the President.

“So, even if the House does pass the bill before May 29, what purpose would it have served without the concurrence of the Senate?

“The only option is if the Senate will simply adopt the report of the House. I doubt if this is likely, considering the controversial nature of the PIB.”

Asked to comment on what would happen to the bill should the Senate fail to pass it, the Deputy House Leader,   Leo Ogor, replied that it would be on the record that the House passed it.

“We operate a bicamera legislature. We in the House are passing the PIB.’’

When contacted, the Senate Leader, Victor Ndoma – Egba, said deliberation on the bill was deliberately suspended by the Senate because there was no adequate time   to consider the report.

He said, “The feelers we are getting is that the incoming administration will want to study the bill and this makes sense because it is a far-reaching piece of legislation. At this point in time, it must be of interest to the incoming administration.

“The public has a misconception that the bill has been with us for four years which is not true. This bill was re-introduced to the 7th National Assembly in late 2013.

“Because it has several aspects like the fiscal (financial), technical, the legal, and the gas component, it is a very complicated bill.

“Since we needed to bring in several committees. The logistics of having more than one committee to deal with a bill is challenging. In this case we have to bring in six committees.

“Finding a common opening in terms of schedule is usually a problem and because it is very technical, we need to get the technical input of virtually every stakeholder in the sector.

“Inherently, it is not a bill that could be treated in a hurry, it is not possible. Having six committees working together on a bill is not only a big logistic problem but also, quite challenging and a big nightmare.

“For this piece of major legislation, it is important that we thread slowly, it’s going to be a major policy plan for the incoming administration, so if we are around the corner, why are we in a hurry?”

Fresh indications had emerged on Tuesday about how the non- release of the N520m appropriated for the National Assembly to work on the PIB caused its non-passage by the Senate.

Investigations by one of our correspondents revealed that the comprehensive and the executive summary of the report had been jointly produced by the six Senate committees coordinated by the Chairman of the Committee on Petroleum Resources (Upstream), Senator Emmanuel Paulker.

Findings   further showed that the report had not been presented because none of the 43 members of the six committees   had appended his   signature on it.

The development stalled its presentation on the floor of the Senate for a clause by clause consideration by members.

It was learnt that the Senate leadership made N40m available to the joint committees, whose members were expected to carry out public hearings among stakeholders across the country.

The committees were also to   hire foreign and local consultants to assist in the task.

A member of the joint committee, told The PUNCH on condition of anonymity that the amount released by the Senate leadership was grossly inadequate to carry out the assignment.

He said, “The committee involved foreign consultants who are experts in various fields in the oil and gas industry. The consultants did their work but the committee is still owing them huge sums of money at the moment.”

He alleged that, “rather than the Federal Ministry of Petroleum Resources releasing the N520m appropriated for the exercise, some officials diverted the money to produce billboards and posters, claiming that they were creating awareness for a bill that has not been passed.”

The committee member added,   “The situation created serious problems for the six committees made up of 43 members who were expected to carry out the necessary legislative activities.

“In fact, members of the joint committee had refused to sign the document because they did not receive adequate sitting allowances.

“The leadership of the senate are in a fix on what to do now since the House of Representatives had started deliberation on its own version of the bill.”

When contacted, the   spokesperson for the Federal Ministry of Petroleum Resources,   Kingsley Agha, said, “I’m busy and I can’t take your call.”

National Assembly to abandon PIB