Policy making in Nigeria Policy making in Nigeria The success of any political system lies in its policy making and implementation process.
The Petroleum Industry Governance Bill PIGB —the first and possibly most important of four related pieces of legislation— passed through both houses of the legislature earlier this year, raising hopes that the whole bundle could be on the statute books before next February's presidential elections.
All that was needed was presidential assent and there was optimism among the legislation's backers that-whatever its shortcomings-Muhammadu Buhari would see it as better than nothing and give it the nod.
Those hopes were dashed, when Buhari declined this week to sign off on the PIGB, demanding further changes. Assuming he doesn't change his mind, this would seem to remove any chance of implementing the PIGB before the elections, as well as laying it open to further review once the new parliamentary session is under way.
This could mean further delays, given that efforts to pass new petroleum industry legislation were mired in political wrangling for most of the previous decade.
According to the Buhari camp, the president baulked at, among other things, the amount of oil revenues being allocated to the industry's new regulator and the continuing role of the country's Petroleum Equalisation Fund, which subsidises elements of domestic petroleum marketing.
I think these are things that could be have been addressed sooner, if the will was there," said Gail Anderson, research director at consultancy Wood MacKenzie.
State-run institutions such as the Nigerian National Petroleum Corporation NNPC have consistently been used as cash cows to support other struggling areas of the government—as well as being the focus of corruption allegations.
NNPC's inability to meet funding commitments for projects has been a long-running bugbear for oil companies-one that the new revenue allocation to the revamped bodies running the industry was, in part, intended to address. There has been much media speculation over recent months that the president was also concerned that the PIGB would unduly reduce his power over the industry—he also acts as oil minister—by giving more control to the independent regulator.
Investment uncertainty This further hiatus in the protracted process of updating the laws and structures governing the oil and gas industry is hardly likely to encourage new investors to plough money into complex offshore developments in the country. However, the rising oil price is likely to act as a salve for the small group of incumbent international oil companies that dominate the sector.
They have decades of experience working in the country and are well accustomed to the above-ground risks. In terms of gas projects, they may benefit financially if new industry legislation is stalled, as the planned regulations would remove some fiscal incentives designed to encourage gas developments in the past.
However, there are more serious constraints to growth in gas production, especially domestically, not least because a lack of electricity transmission infrastructure to cater for gas from planned power projects. Even if industry reforms are introduced, any fiscal changes are unlikely to have a direct impact on them in the short term, given the financial terms for their current production sharing contracts PSCs are pretty well entrenched.
However, they may feel more trepidation about renewal negotiations for current deepwater licences, several of which expire in the early-to-mid s. Offshore activity In the meantime, there are signs that a modest uptick in offshore activity could be on the way.
Total may expand the scope of its Egina deepwater project, whose floating production storage and offloading facility FPSO is due to start operations in late Total is now considering tying back its nearby Preowei discovery to the Egina FPSO, after a third appraisal well was successfully drilled there in late Shell's delayed expansion of the Bonga deepwater oil field may also be making progress.
In early September, Shell Nigeria's managing director Bayo Ojulari said a schedule for a final investment decision would be announced after commercial talks with the government ended.The United States Mission to Nigeria is pleased to announce an expansion of the Drop Box Visa Renewal Program, tentatively to start of June 9th.
Most people do not know but there are presently 68 INEC recognized Political Parties in Nigeria(Updated for ). The top three Political Parties at the moment still remains All Progressive Congress (APC), Peoples Democratic Party (PDP), and All Progressives Grand Alliance (APGA).
Last year, Daryl Harris, associate professor in the Department of Political Science, traveled to the University of Ibadan’s Institute of African Studies in Ibadan, Nigeria, as the recipient of a – Fulbright Distinguished Research Award. The Minister of Power, Works and Housing, Babatunde Fashola, said that President Buhari was laying the foundation for economic growth of Nigeria through infrastructure renewal.
When I moved for the putting together of a new political party, the Abundant Nigeria Renewal Party (ANRP), one of the driving reasons was the need for younger people like me to be able to put our political ideas and structures together.
The Embassy. Embassy of the Federal Republic of Nigeria International Court, NW Washington, DC Tel: () (Ext) Email: [email protected] Embassy Staff.