The Petroleum Industry Bill has been stuck at the Nigerian Parliament for the past decade. However, in an attempt to break the jinx of non-passage by successive Governments over the years, the Nigerian Senate in what can be described as an attempt to make history passed a bill which provides the framework for regulatory reforms in the Nigerian petroleum industry (the “Industry”). On Thursday 25th May 2017, the Nigerian Senate, the upper legislative house of the Nigerian Parliament passed the Petroleum Industry Governance Bill (the “Bill”). The Bill, which seeks to provide for the governance and institutional framework for the Industry is one of 3 bills to be passed in Government’s efforts to reform the Industry. The other two bills are the Petroleum Industry Fiscal Reform Bill and the Petroleum Host Community Fund Bill which are at the time of writing this brief, yet to be presented to the National Assembly by the Executive Arm of Government.
The passage of the Bill by the Senate has generated a lot of excitement as Industry participants (operators and advisors) are quite optimistic with regards to the potential of the Bill on the Industry. Notwithstanding the excitement, it is necessary to consider the provisions of the Bill with a view to establishing the potential impact of the Bill on the Industry and any legal hurdles that may arise before enactment and post – enactment.
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