Petroleum Industry Bill, necessary for transparency in oil, gas sector

Mr Bank-Anthony Okoroafor, an energy expert, has said that the passage of the Petroleum Industry Bill (PIB) into law is the only way to ensure transparency in the industry.

Okoroafor said in an Interview with the News Agency of Nigeria (NAN in Abuja on Thursday that transparency could also be achieved in the sector once rent seeking opportunities were eliminated.

“As long as NNPC officials are involved in contracting, you cannot have transparency.

“ They should only be involved with regulations only.

“We should pass, at least, some elements of the PIB thereby overhauling the clutter of laws in the industry,’’ he said

According to him, passing the PIB will help to establish new framework for good governance and best practices.

Okoroafor said the law would enhance government revenue and leakages through better tax codes and undo the harm done by the Producing Sharing Companies contracts of 1993.

He said the law would push oil firms to refine, at least, 50 per cent of their production in Nigeria and attempt to amend aspects of the petroleum profit tax administration.

“Simplify the collection of revenues by emphasising on rents and royalties and less on taxes.

“We have a great opportunity now with 72 per cent drop in oil price to move fast with our reforms,’’ Okoroafor said.

He advised that National Oil Companies should be encouraged to be big players in the oil industry, while efforts should geared toward encouraging more Nigerian independents to operate their assets.

Commenting on the N83 new pump price on Household kerosene, he said that with the present price of crude oil, kerosene, Petrol and Automotive Gasoline Oil (AGO) should be very cheap now.

Okoroafor said that government must audit why the products in Nigeria were not following the demand – supply pricing mechanism of world oil.