Reps propose removal of presidential power to grant oil licence

The President is set to lose his discretionary power to grant oil licence should the parliament passes the recommendations made to that effect by the Special Ad-hoc Committee on Petroleum Industry Bill (PIB) of the House of Representatives.

The committee, which laid its report on the draft bill before the House, recommended the total removal of the contentious discretional power of the President to grant the much coveted oil licence.

Aside from this, the committee, in the executive summary of the report, rather recommended competitive biddings for the award of such licenses and leases.

The recommendation was in contrast to Section 191 of the original bill sent to the parliament by the executive.

The report was laid before the House’ plenary on Thursday by the Chairman of the Committee, who is also the Chief Whip of the House of Representatives, Ishaka Bawa.

The report of the committee is expected to be considered at the committee of the whole when the parliament resumes plenary on March 31.

Addressing newsmen at a press conference on Thursday, Bawa disclosed that the conventional power of the Minister of Petroleum was retained under Section 6 of the bill.

He said the powers conferred on the minister over the control of newly established agencies in the petroleum industry were considered enormous and capable of undermining the independence of the regulatory agencies.

To this end, the committee recommended the removal of powers given to the minister either to serve as chairman or to recommend to the President the appointment of chairmen of the board of such agencies.

Bawa explained that the rationale behind the removal of the ministerial powers is to ensure smooth running of the agencies without undue influence, and guarantee independence of the same, which is in line with the current global best practices.

The committee in the executive summary of the report also recommended that the Petroleum Host Community Fund provided under Section 166 of the original bill, be extended to communities where oil facilities and installations such as pipelines, depots and refineries are located.

This, he said, was done to allay the raging distrust between oil producing states and non-producing communities in the country.