Buhari laments Nigeria lost $50bn In 10 years due to controversial Petroleum Industry Bill

President Muhammadu Buhari on Wednesday lamented in Abuja that Nigeria lost an estimated $50 billion worth of investments in 10 years.

The president explained that the loss was a result of the uncertainty of the non-passage of the Petroleum Industry Bill (PIB), lack of progress and stagnation in the petroleum industry.

President Buhari at a ceremony on the passage of the PIA, before the Federal Executive Council (FEC) meeting on Wednesday, decried that the stagnation affected the growth of the economy, citing lack of political will on the part of past administrations to actualize the needed transformation.

President Buhari was of the view that assent to the Petroleum Industry Bill on August 16, 2021, marked the end of decades of uncertainty and under-investment in the petroleum industry.

“We are all aware that past administrations have identified the need to further align the industry for global competitiveness, but there was a lack of political will to actualize this needed transformation.

“This lack of progress has stagnated the growth of the industry and the prosperity of our economy. In the past ten years, Nigeria has lost an estimated US$50 billion worth of investments due to uncertainty created by the non-passage of the PIB.

“This administration believes that the timely passage of the Petroleum Industry Bill will help our country attract investments across the oil and gas value chain.

“In view of the value our Nation and investors will derive from a stable fiscal framework for the oil and gas industry, our Administration has found it necessary to work with the two chambers of the National Assembly to ensure the passage of the PIB,’’ the president had declared.

The President on Media and Publicity, Femi Adesina, in a statement indicated that the signing of the bill was part of the administration’s commitment to building a competitive and resilient petroleum industry that will attract investment, improve the country’s revenue base, create jobs and support the economic diversification agenda.

President Buhari in the statement declared that as a “nation that depends on oil resources for the development of other sectors, Nigeria runs a Petroleum Industry that is governed largely by laws enacted over 50 years ago such as the principal legislation; the Petroleum Act of 1969 and other obsolete legislations.’’

He maintained that the Presidential assent of the bill to “Petroleum Industry Act 2021” marked the beginning of the journey towards a competitive and resilient petroleum industry that will attract investments to support the nation’s Economic Recovery and Growth Plan.

“The ‘Petroleum Industry Act 2021’ creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.

“The Act also provides for a direct benefit framework that will enable sustainable development of host communities. I appeal to the host communities to look carefully at the contents of the Bill which in the implementation will bring real and lasting benefits to them.

“Furthermore, the Act provides for deliberate end to gas flaring which would facilitate the attainment of Nigeria’s Nationally Determined Contributions of the Paris Agreement through a funding mechanism to support gas flare out project in host communities,’’ he stated.

President Buhari insisted that the Minister of State for Petroleum Resources, Timipre Sylva, will head the implementation team, urging all Ministries, Departments and Agencies (MDA) to adjust to the transition, designed to reposition the economy.