The House of Representatives of Nigeria has passed the Petroleum Industry Governance Bill (PIGB) 2017 on January 17, 2018. The PIGB now awaits harmonization by the two Legislative Houses and the assent of the President before it is signed into law. It gives an idea of how to develop governance and institutional framework for the Petroleum Industry in Nigeria.
The bill offers that upon the approvals of the new commission, the Minister of Petroleum Resources can grant, modify, renew, extend or revoke any licence or lease required for petroleum or production, pursuant to the provisions of the Act or any other enactment.
Section 86 of this bill provides for the inclusion of the Nigeria Petroleum Liabilities Management Company. The intendment of the Bill is to establish the Nigeria Petroleum Liabilities Management Company as a limited liability company that has the legal capacity to hold assets including shares in the Nigeria Petroleum Assets Management Company and the National Petroleum Company on behalf of the Government of the Federal Republic of Nigeria.
The establishment of a petroleum equalization fund that is to be funded by way of a 5% fuel levy in respect of all fuel sold and distributed within the federation which shall be charged subject to the approval of the Minister.
