The Petroleum Product Pricing Regulatory Commission (PPPRA) has said that the implementation of the Petroleum Industry Act (PIA) will foster greater investment to the sector.
In a statement sent to Blueprint and signed by PPPRA’s Executive Secretary, Abdulkadir Saidu, the PIA will also lead to transparency and efficient resource management, provide a more consistent standard of operations and ensure less cumbersome regulatory control of the industry, among other gains.
President Muhammadu Buhari assent to the PIB Monday put an end to the twelve years of wait for industry stakeholders for its passage
“The PIA which provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.
Delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy,” Saidu said.
The Agency commended the executive and legislature for making the PIB to finally see the light of the day.
“The PPPRA congratulates His Excellency, President Muhammadu Buhari, GCFR, the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva and the 9th National Assembly for finally making the historic Petroleum Industry Act (PIA) a reality.
“The PPPRA especially commends the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector
The establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clearly delineates the roles of industry operators and regulators.
“There is no gainsaying that the PIA signals the implementation of full deregulation of the downstream sector,” the PPPRA boss said.
He calmed fears that the implementation of the PIA will lead to price increase of petrol explaining that the federal government is yet to conclude negotiation with organized labour.
“However, it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS. The current price will remain until negotiations with organised labour, which will develop a feasible framework that minimizes the impact of a market-based pricing policy on the masses is concluded,” the statement said.
