PIA: NNPC Workers To Earn More, Says Petroleum Minister

The Minister of State for Petroleum Resources, Timipre Sylva,
says workers in the oil sector will earn more benefits with the
commencement of the implementation of the newly signed Petroleum
Industry Act.

The minister, who spoke on Wednesday while featuring on Channels
Television’s ‘Politics Today’ programme, also said with the new
Act, the Nigerian National Petroleum Corporation could be sued.

Recall that the President, Major General Muhammadu Buhari
(retd.), had assented to the Petroleum Industry Bill after it
stalemated for about 20 years. The bill, now known as the PIA, will
regulate all matters in the oil sector.

The President had also appointed Sylva to head a steering
committee to oversee the process of implementation of the PIA.

Speaking on the television programme monitored by The PUNCH, the
minister said the President gave the committee 12 months to achieve
the implementation of the PIA “but for the NNPC, the provision of
the law is that within six months, the new NNPC should be
incorporated”.

“NNPC today is a corporation, it is more or less a parastatal of
government. The NNPC of tomorrow will no longer be a parastatal of
government; it will be a CAMA company operating commercially. So,
it is a major difference. The shareholders of the company will then
be the Ministry of Petroleum Incorporated and the Minister of
Finance Incorporated and it will be registered as a company in
Nigeria and will operate according to the Companies and Allied
Matters Act.

“Today, for example, NNPC cannot be taken to court. Today, for
example, NNPC is not operating under the laws of the Companies and
Allied Matters Act but the new NNPC will be a CAMA company and that
means it can be sued and because of that, we expect that there will
be a lot more seriousness in the NNPC,” he explained.

The minister also said “no job will be lost as a result of the
Petroleum Industry Act, all jobs in the oil industry will be
preserved”.

Sylva added that oil workers would enjoy more benefits with the
privatisation of the NNPC.

“I believe they will even get more benefits as private workers
as you know that government doesn’t even pay as the private sector.
So, now being in the private sector will even be more beneficial to
the workers,” he stated.

The recently assented PIB had been heavily criticised by
stakeholders in Southern Nigeria with the Pan-Niger Delta Forum and
other groups in the South-South, South-West and South-East
describing its provisions as “unjust, satanic and provocative”.

The PUNCH had earlier reported that Southern governors last
month in Lagos rejected the proposed allocation of at least 30 per
cent of the profit generated by the proposed Nigerian National
Petroleum Company Limited for the exploration of oil in ‘frontier
basins’ as identified by Section 9 of the PIB.

The 17 governors, in a communiqué signed by the Governor of Ondo
State, Oluwarotimi Akeredolu, at end of their July meeting in
Lagos, said, “The Forum rejects the proposed 3% and support the 5%
share of the oil revenue to the host community as recommended by
the House of Representatives;

“The forum also rejects the proposed 30% share of profit for the
exploration of oil and gas in the basins.

“The forum rejects the ownership structure of the proposed
Nigeria National Petroleum Company Limited. The Forum disagrees
that the company be vested in the Federal Ministry of Finance but
should be held in trust by Nigeria Sovereign Investment Authority
since all tiers of Government have stakes in that vehicle.”

The frontier basins include: Chad Basin, Gongola Basin, Sokoto
Basin, Dahomey Basin, Bida Basin, Benue Trough, amongst others.

Currently, crude oil is obtained from eight states in the Niger
Delta region which include: Abia, Akwa Ibom, Bayelsa, Delta, Edo,
Imo, Ondo and Rivers States.

The Minister of State for Petroleum Resources, Timipre Sylva,
says workers in the oil sector will earn more benefits with the
commencement of the implementation of the newly signed Petroleum
Industry Act.

The minister, who spoke on Wednesday while featuring on Channels
Television’s ‘Politics Today’ programme, also said with the new
Act, the Nigerian National Petroleum Corporation could be sued.

Recall that the President, Major General Muhammadu Buhari
(retd.), had assented to the Petroleum Industry Bill after it
stalemated for about 20 years. The bill, now known as the PIA, will
regulate all matters in the oil sector.

The President had also appointed Sylva to head a steering
committee to oversee the process of implementation of the PIA.

Speaking on the television programme monitored by The PUNCH, the
minister said the President gave the committee 12 months to achieve
the implementation of the PIA “but for the NNPC, the provision of
the law is that within six months, the new NNPC should be
incorporated”.

“NNPC today is a corporation, it is more or less a parastatal of
government. The NNPC of tomorrow will no longer be a parastatal of
government; it will be a CAMA company operating commercially. So,
it is a major difference. The shareholders of the company will then
be the Ministry of Petroleum Incorporated and the Minister of
Finance Incorporated and it will be registered as a company in
Nigeria and will operate according to the Companies and Allied
Matters Act.

“Today, for example, NNPC cannot be taken to court. Today, for
example, NNPC is not operating under the laws of the Companies and
Allied Matters Act but the new NNPC will be a CAMA company and that
means it can be sued and because of that, we expect that there will
be a lot more seriousness in the NNPC,” he explained.

The minister also said “no job will be lost as a result of the
Petroleum Industry Act, all jobs in the oil industry will be
preserved”.

Sylva added that oil workers would enjoy more benefits with the
privatisation of the NNPC.

“I believe they will even get more benefits as private workers
as you know that government doesn’t even pay as the private sector.
So, now being in the private sector will even be more beneficial to
the workers,” he stated.

The recently assented PIB had been heavily criticised by
stakeholders in Southern Nigeria with the Pan-Niger Delta Forum and
other groups in the South-South, South-West and South-East
describing its provisions as “unjust, satanic and provocative”.

The PUNCH had earlier reported that Southern governors last
month in Lagos rejected the proposed allocation of at least 30 per
cent of the profit generated by the proposed Nigerian National
Petroleum Company Limited for the exploration of oil in ‘frontier
basins’ as identified by Section 9 of the PIB.

The 17 governors, in a communiqué signed by the Governor of Ondo
State, Oluwarotimi Akeredolu, at end of their July meeting in
Lagos, said, “The Forum rejects the proposed 3% and support the 5%
share of the oil revenue to the host community as recommended by
the House of Representatives;

“The forum also rejects the proposed 30% share of profit for the
exploration of oil and gas in the basins.

“The forum rejects the ownership structure of the proposed
Nigeria National Petroleum Company Limited. The Forum disagrees
that the company be vested in the Federal Ministry of Finance but
should be held in trust by Nigeria Sovereign Investment Authority
since all tiers of Government have stakes in that vehicle.”

The frontier basins include: Chad Basin, Gongola Basin, Sokoto
Basin, Dahomey Basin, Bida Basin, Benue Trough, amongst others.

Currently, crude oil is obtained from eight states in the Niger
Delta region which include: Abia, Akwa Ibom, Bayelsa, Delta, Edo,
Imo, Ondo and Rivers States.