KEYNOTE ADDRESS BY THE PRESIDENT OF THE SENATE, HIS EXCELLENCY DR. ABUBAKAR BUKOLA SARAKI CON ON THE OCCASION OF THE 55TH EDITION OF THE OIL PRODUCING TRADE SECTION OF THE LAGOS CHAMBER OF COMMERCE AND INDUSTRY ON THURSDAY 2ND NOVEMBER, 2017 AT 12.00 NOON AT THE EKO HOTEL AND SUITES, VICTORIA ISLAND, LAGOS ON THE TOPIC, ‘NIGERIA: AN INVESTOR FRIENDLY DESTINATION.’
PROTOCOL.
1.I am delighted to be here today and it gives me great pleasure to welcome you all to this year’s Oil Producers Trade Section of The Lagos Chamber of Commerce and Industry.
- The interest the African continent and the world at large have in oil is hardly surprising, given that it provides a multi-billion dollar opportunity of investment. Oil remains the biggest source of energy on our continent because millions depend on it every day for lighting, heating, cooking, transportation, electricity as well as many other direct and indirect uses.
- With our current rate of urbanization, Africa now has more people living in the cities. Take for example Lagos. We are in a city today that has a population closing up on the 20 million people mark. There is hardly any part of this city without a huge demand for energy.
- It is estimated that Nigerians consume more than 10 million litres of petrol a day and the volume tends to increase because of the numbers of cars and households buying generators daily. The shortage of electricity in many parts of Nigeria is causing people to spend more on petrol and diesel to generate their own electricity.
- In the National Assembly, we owe it to the citizens to make laws that is favourable to their welfare and overall well-being. The Petroleum Industry Bill has been a major talking point in our quest to open up opportunities in the oil and gas sector. The PIB, which was becoming a difficult piece of legislation to pass in the past, was split into four parts namely:
- Petroleum Industry Governance Bill
- Petroleum Industry Administration Bill
- Petroleum Industry Fiscal Bill
- Petroleum Host Community Bill.
- The Senate broke a 17-year jinx with the passage of the Petroleum Industry Governance Bill. The three other components of the Bill are currently in Committee stage. The inability to pass the previous versions of the PIB was due to vested interests pulling in opposite directions, and lack of will by the political class. Although we have a critical and congested legislative timetable ahead, we will definitely work hard to pass the three other Bills. This we must do, in recognition of the profound impact on the future direction of our economy.
- The key objectives of the PIB include the creation of a conducive business environment for petroleum operations in order to enhance exploration and exploitation of petroleum resources in Nigeria – for the benefit of Nigerian people – optimize domestic gas supplies, particularly for power generation and industrial development.
- The PIB is also to establish a progressive fiscal framework that encourages further investment in the Petroleum Industry while optimizing revenues accruing to the Government, to deregulate and liberalize the downstream petroleum sector, promote transparency and openness in the administration of the sector, and promote Nigerian content through efficient and effective regulatory framework.
- Overall the PIB introduces some positive developments like addressing host community concerns, promotion of local content, removal of minimum tax, removal of restrictions on capital allowances claimable, tax deduction for abandonment provision.
- There is no doubt in our minds that the ultimate objective of any oil producing country is to control and operate all phases of its industry. This will translate to massive reduction in unemployment and ensure rapid development arising from increased revenue to the government’s treasury as a result of local production.
- The opportunities for investment in the oil and gas sector is massive in Nigeria because of the ever growing population and high demand for petrol, diesel, gas and kerosene by all classes of citizens from the very rich to the poor. A smart investor like Alhaji Aliko Dangote is setting up a refinery that will boost the country’s foreign investment when it finally comes onstream. The refinery, when completed, would save the country billions of dollars’ foreign exchange on petroleum products and would crash the price of Premium Motor Spirit (PMS), because the product would be refined in the country. We encourage more investors to tap into the unique opportunities offered by this sector, due to the increasing demands for these products.
- We are working tirelessly in the National Assembly to set the right policies for a robust and investment friendly atmosphere. We sincerely believe that the passage of the PIB would reshape the oil and gas industry.
- I thank the organizers of this business session. I hope that at the end of the various sessions, we all will be better informed and encouraged to keep seeing the various opportunities that exist in our downstream sector.
Thank you for listening.
God bless you all.
PRESIDENT OF THE SENATE
