During Nigeria’s plenary session on 25th May 2017, the Senate passed the Petroleum Industry Governance Bill (PIGB). The PIGB is only a segment of the original Petroleum Industry Bill (PIB). The bill splits the Nigerian National Petroleum Corporation (NNPC) into two, namely National Petroleum Company (NPC) and the Nigeria Petroleum Assets Management Company (NPAMC).
The draft law proposed the establishment of the Nigeria Petroleum Regulatory Commission (NPRC) to serve as the guide for licensing, monitoring, regulations and standards across the value chain, supervision of petroleum operations enforcing laws. In accordance with the draft law, the companies would absorb the present Department of Petroleum Resources, Petroleum Products, Pricing and Regulatory Agency (PPPRA) and the Petroleum Equalization Fund (PEF).
This Bill seeks to give instructions and institutional framework for the Nigerian Petroleum Industry and create clear separation between, the policy, regulatory and commercial organizations. When enacted, the PIGB will seek to create effective governing institutions with clear and separate roles for the Petroleum industry, establish an outline for the creation of commercially-oriented, profit driven petroleum entities that ensures value addition and internationalization of the petroleum industry, promote transparency and accountability in the administration of petroleum resources in Nigeria, and build a conducive business environment for petroleum industry operations.