The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government, Ministry of Petroleum Resources, and other institutions responsible for the implementation of the Petroleum Industry Act (PIA) 2021 to consult with private sector operators and other stakeholders in order to drive effective and efficient implementation.
This was disclosed in a statement by the Director-General of LCCI, Dr. Chinyere Almona.
The Petroleum Industry Act provides a robust legal framework that will support the reforms required to position the industry as an investment haven that attracts investors from across the globe.
Alumona said: “We commend the federal government, the National Assembly and all other stakeholders for this breakthrough after several years of deadlock in the attempts made by successive governments to develop a comprehensive and practicable legislative framework to regulate the oil and gas industry.
“The Act has opened windows of opportunities in the oil and gas industry, with renewed optimism for increased inflow of investments, revenue generation boost, and job opportunities.
“With the emergence of a more structured industry, it offers a level playing ground that can attract massive Foreign Direct Investments (FDIs) into the country.
“This Act will also promote more competition that could bring about a more efficient system, more product choices, and lower prices in the long term.”
According to her, to reap the full benefits of the PIA 2021, the government must pay attention to the implementation of its provisions to ensure all Nigerians benefit from the potential opportunities of the Act.
She said further: “There is a need to create more understanding through public enlightenment about the three percent revenue allocation to host communities to forestall a misunderstanding of the government’s intentions and raise tensions in the oil-producing region.
“Beyond the enlightenment, there should also be a monitoring mechanism to ensure that the allocated funds are judiciously used for the development of the host communities.
“The government should be firm and clear in their communications about the removal of oil subsidies or otherwise. Policy statements influence business decisions.
“The divergent statements by different government officials on the removal of oil subsidies create uncertainty. This is unhealthy and not standard practice for a sector that hosts billions of dollars of investment.”
The chamber said the unbundling of the NNPC should be done in such a way that it does not create unnecessary bottlenecks and bureaucracy in contract administration and project management in the oil and gas industry.
It said the emerging companies should be run in line with the Companies and Allied Matters Act (CAMA) and the Code of Corporate Governance.
It also asked that the Act be implemented with a focus on the areas of business regulations that make up the indicators of the Ease of Doing Business Ranking by the World Bank.
Follow The Eagle Online Channel on WhatsApp
