Senate Scraps PPRA, DPR, PEF

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…as Upper Chamber Passes PIGB after 10 years

By Nuel Suji – The Senate has passed into law the Petroleum Industrial Governance Bill (PIGB), scrapping subsidiary agencies like the Department of Petroleum Resources (DPR), Petroleum Product Pricing Regulatory Agency (PPPRA) and the Petroleum Equalization Fund (PEF).

By the passage of the bill, the agencies are now collapsed into one agency.

Also, according to the provision in the PIGB, Nigeria National Petroleum Corporation (NNPC) is unbundled into two new agencies in order‎ to effectively manage the oil and gas sector.

The new established agencies ‎according to bill passed by Senate are Nigeria Petroleum Assets Management Company (NPAMC) and National Petroleum Company (NPC)‎.

The Nigerian Petroleum Regulatory Commission {NPRC} which shall be headed by a Chairman, will also consists of commissioners whose appointments and removal shall be subject to senate approval.

‎It provides that the NPRC will ensure compliance with all applicable laws and regulation governing the Petroleum industry.

‎The NPAMC “will be saddled with responsibility ‎to operate assets transferred to it as fully commercial.

“It shall also be responsible for the management of assets currently held by Nigeria National Petroleum corporation (NNPC).

The bill was first introduced in the senate 10years ago but could not pass owing to conflicting interest.

It took senators over two hours to finally pass the 132 clauses and provisions Thursday.

The intendment of the bill is to establish a National Petroleum Company which shall have financial autonomy by restructuring the NNPC into two commercial entities.

Speaking on the collapsed of DPR, PPRA and PEF, Chairman, Senate Committee on Downstream, Senator Tayo Alasoadura said the passed bill provides for a robust framework for effective operational petroleum sector.

“Our report proposes a slim, ‎ focused yet robust framework for effective institutional governance of the Nigeria Petroleum Industry.

“We support and enhanced the creation of an independent one-stop-shop regulatory agency which will absorb the present Department of Petroleum Resources (DPR), Petroleum Product Pricing Regulatory Agency (PPPRA) and the Petroleum Equalisation Fund (PEF) into one agency, Alasoadura said.

Adding: “We have streamlined and sharpened the role of the (Petroleum) minister. We have also enhanced the extensive reform of NNPC into two limited liability companies.”

In his remarks after the passage of the bill, Senate President, Bukola Saraki said it would ensure transparency and accountability and create and an enabling environment for the petroleum sector.

When passed into law, the document is expected to stimulate Nigeria’s oil and gas sector.

It is also expected to help Nigeria reduce corruption and inefficiency in the sector.

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