By Jeph Ajobaju, Chief Copy Editor
Muhammadu Buhari signing the Petroleum Industry Bill (PIB) into law does not remove fuel subsidy, says Minister of State for Petroleum Resources, Timipre Sylva, contradicting his earlier statement that subsidy would end once the bill became law.
The PIB was in the works for decades until Buhari signed it into law on Monday and became the Petroleum Industry Act (PIA).
Sylva himself and Finance Minister Zainab Ahmed both have argued that subsidising petroleum products wastes funds. Sylva says it encourages fuel smuggling to neighbouring countries. Ahmed says its benefits the rich, not the poor.
But Sylva clarified through a text message his Media Adviser Garba Muhammad sent to The Nation that “we’ll engage you (reporters) on this at the appropriate time” when asked about subsidy removal.
And Major Oil Marketers Association of Nigeria (MOMAN) Executive Secretary, Clement Isong insisted to The Nation that “no minister will provide transitional regulations leading to removal of subsidies now.”
After Buhari signed the bill on Monday, Organisation of Petroleum Exporting Countries (OPEC) Secretary General, Mohammad Barkindo, said the new law would help Nigeria achieve four million barrels per day (bpd) production.
The law “will help harness Nigeria’s potential to achieve its programme of raising oil production to 4 mb/d and oil reserves to 40 billion barrels, while also drawing on the country’s vast natural gas reserves to provide clean and efficient energy,” he enthused in a congratulatory letter to Buhari.
“I wish to extend my congratulations to you on signing into law the PIB, which marks a significant milestone for Nigeria’s oil industry and an historic achievement for your Presidency,” Barkindo added in the letter.
“With the stroke of a pen, you have inaugurated a new era for the industry following years of legislative efforts to strengthen the legal, regulatory, fiscal and governance framework of the petroleum sector.
“Mr. President, your signature on the PIB caps many years of important deliberations and detailed legislative work.
“I am confident the law marks the beginning of a new era of growth and prosperity that will be beneficial to the petroleum industry and ultimately to the Nigerian people.”
Independent Petroleum Marketers Association of Nigeria (IPMAN) Vice President, Abubakar Maigandi, also commended Buhari, saying the law would help appreciate the value of the naira and reduce foreign exchange hassles in the oil industry.
But others, particularly in the South South, criticise the law for allocating only 3 per cent additional funds to the region instead of 5 per cent.
All the 36 governors are also not happy with the bill; they identified six pitfalls in it and wrote to Buhari not to sign it into law.