Petroleum Industry Bill Is Not A Perfect Legislation Says Dr Muda Yusuf
Dr Muda Yusuf,
The immediate past Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf, has expressed mixed-feelings on the Presidential assent to the Petroleum Industry Bill (PIB) describing it the Bill “as not a perfect legislation.”
He said the Bill is not a perfect legislation “because not all the concerns of major stakeholders have been addressed by the legislation,” noting that the Bill is “an improvement over the current legislative framework”
According to him, the Presidential assent to the PIB is a welcome development. Although it is not a perfect legislation because not all the concerns of major stakeholders have been addressed by the legislation. But it is surely an improvement over the current legislative framework. Am aware that the oil companies were concerned about the adequacy of the fiscal terms in the PIB.
“The host communities also had reservations about the percentage contribution to host communities fund. But we can always improve on those provisions with time. Issues of this nature are typically work in progress.
“The the Act is a major instrument of reform in the oil and gas sector. It has a number of significant implications for the oil and gas sector and the economy as a whole.
“It has a profound investment effect as investment sentiments the petroleum sector are enhanced by the new policy regime.”
On the macroeconomic effect, the Economist said “There is the macroeconomic effect which expected from the conservation of foreign exchange as more petroleum products are produced locally, there is revenue effect on account of new private investments in the sector; there is the employment effects from new investments, and there is is the expected foreign exchange earnings outcomes which higher upstream oil sector investment will generate.”
The former LCCI boss said the boosting of petroleum refining capacity as well as petrochemicals production will have remarkable impacts on our balance of payment position in the medium to long term.
