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Home » Can the Passage of the Petroleum Industry Bill (PIB) Benefit the Downstream oil Sector?

Can the Passage of the Petroleum Industry Bill (PIB) Benefit the Downstream oil Sector?

by Joshua
February 25, 2013
in Uncategorized

Engr. Alex peters (Marine Engineer)

Engr. Alex peters (Marine Engineer)
It can do a lot of empowerment for Nigerians who are in the industry and put a stop to some of the foreign countries who are very dominant in the industry, it will empower a lot of Nigerian contents that we have been striving for and a lot of financial benefits from it would be accrued to this country, instead of these profits going out as capital flight. The effect of PIB will also be very conspicuous for the South-South region, which is why there seems to be a lot of opposition to it from the non-oil producing areas in the country, because it will affect the revenue allocation formula and sharing formula.

Barr.  Emmanuel Gowon (National Sec. NARTO)
It will be beneficial to the country especially the aspect that involves the downstream sector, if it can be honestly implemented, it will reduce the regulation of petroleum products, refining, marketing and  distribution of petroleum products, by so doing, the deregulation on its own will engender competition among players, it will therefore bring about heavy competition if it is honestly and properly handled, it will bring about the stability of products in the market, and we will enjoy stability in prices as well. But like I said, it must be properly implemented, and whatever money is accrued with the inclusion of subsidy will be used for human infrastructure in this country.

Captain Labinjo (National Sec. ISAN)
There is need for us to have a correct knowledge of the sector, the downstream has to do with the exploration sector, contrary to the way it is being used , while the upstream is the refinery engine holders, the sector has over the years been monopolized by the foreigners, but what the PIB is trying to do is to empower the distributors corporately, and because there is no regulation that actually prevents foreigners from coming to explore these opportunities, but until we explore the PIB, then it will empower the indigenous operators just as we have the Cabotage Act, although the port is not working as expected but if we have this PIB, and a very strong regulatory body it will ensure a strong compliance to this, definitely it is going to benefit the local operators.

Aisuodionoe Ose Fidel (NUPENG Member)
Once the law is put in place, the corruption that is highly evident in the industry will be  removed, genuine operators will now realize that what you put in is what you get, more operators will now see reason to come in and invest in the country, they will equally stay with their investments because they will now know that there is an enabling law protecting them and their investments. By that, there will be a smooth line of operation, crude oil from Niger-Delta will be processed in Nigerian refineries, both the existing and maybe the new ones to be created later, the local operators will source locally, distribute locally, then the money and the logistics spent in extraction, processing and distribution becomes a local thing within the Nigeria local content, this will improve the Nigerian economy. There will be more product availability and it will make our members, the oil marketers to naturally pick location to another place for easy distribution, this means more work for us to do and our trucks as well, the product availability will ensure more jobs at the downstream.

Mr. Christian Okenu (Petroleum Marketer)
 It  will take care of the communities where the oil is being produced, formerly, the oil communities were suffering, the multi-national companies before now would come to do oil exploration, while they would take the wealth away, the host community would be left with sufferings but with this bill, it will take care of the community, it will change so many things, such as derivation formula by the state, the bill will give these communities leverage as to how this money needs to be shared, the benefit is that the bill  will allow private investors to come in and build refineries. The bill will open the industry to the extent that foreign investors will invest in the downstream sector of the economy and this will affect the common man, including those who do formal and informal businesses, they will begin to benefit, there will be millions of jobs directly and indirectly.

Christopher Immumolen (Managing Consultant, Oil and Gas Institute)
The passing of PIB into law will have a positive effect on the downstream sector, in the aspect of procurement and contract award because one of the requirement is that most of the jobs in the oil and gas sector and maritime sector would be awarded to local and indigenous companies and these indigenous companies are regarded as the downstream. With this, we will see the small and medium scale organisations begin to spring up because they will now have the belief that they will always get the support by getting contracts and getting people to do the job, the issue has always been companies getting the jobs, because they were not able to get support in getting these jobs, they ran out. The proper implementation of PIB will bring about a spring up and empowerment of downstream sector because most of them will be getting the empowerment. However it is not just about implementing bills, we must have good enforcement agencies who are sincere to ensure that the implementation of the policies are effective which will now be narrowed down to the downstream sector.

Olanife Adeoye (Petroleum Marketer)
This bill will spell out where individual private investors can contribute their own quota to the benefit of the nation and the masses. Initially, the investment in this industry is between the government and the masses, foreign investors and big multinationals. It will enhance the ability to approach financial institutions to join forces with us especially at the downstream when it comes to loan for the benefit of the economy. It will help the government to divert the billions being budgeted; they will be able to move them to other parastatal to do so many infrastructures. In addition, most of this money being hoarded abroad in the name of DPR, NNPC will now be invested locally. 

Chief Isaac Jolapamo (Chairman, ISAN)
We had the Cabotage and we did not see the impact, we have had the Local Content,but we didn’t see the impact, so what is the PIB doing? We are not expecting any miracle to happen when it has not happened in the ones meant specifically to develop the trade, when you look critically at the PIB, it has been watered down to such an extent that it might not make a difference, so we are not optimistic about what PIB will bring, we will rather work on getting the Cabotage Act to be more effective and the Local Content to be more effective, it is more effective in areas like engineering and so on but not on shipping services.


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