My 1st Bill On Accruable Oil Revenue Recovery Passes 1st Reading ~ By Ifeanyi Ubah
My first bill which was co-sponsored by senator akpan albert bassey and my humble self has passed first reading within 24 hours of presentation of my motion on the recovery of accruable oil revenue
Yesterday, to the glory of God, my first bill as a Senator which came in line with the motion I sponsored on Wednesday, October 2, 2019 on the Deep Offshore and Inland Basin Production Sharing Contract CAP D3 LFN 2004 Act (Amendment) Bill 2019 passed first reading on the floor of the Senate because of it’s importance and the need to augment the National budget through additional accruable oil revenue.
This Bill which was described by my fellow distinguished colleagues as one of the epoch making bills in the Ninth Senate was borne out of the compelling need to checkmate the systemic negligence and non-review of the PSC Act which has made the Federal Government lose about $21 billion over the past years.
According to the Ministry of Finance’s projected 2020-2022 Medium Term Fiscal Framework; if the bill is passed, N160 billion will be earmarked for the 2020 fiscal year, N320 billion for 2021 and 457 billion for the 2022 fiscal year as federally collectible revenue accruable to the Federal Government as a result of the review of the PSC agreement Act.
Nigeria stands to gain an additional sum above 30 billion naira monthly (360 billion annually) if the amendment bill is passed. Having passed the first reading, this marks the beginning of a new era in the Nigerian Petroleum landscape.
It is therefore my expectation that the bill, if passed into law will yield significant results in stemming the systemic financial leakages in the Nigerian Petroleum Sector and optimally increase our nation’s revenue base so as to ensure that Government serves our people better.
The Bill is premised upon Section 16 of the Act which allows for periodic review of the Act. Section 16(1) of the Act which provides that where the price of crude oil at any time exceeds $20 per barrel the share of the government in the additional revenue shall be adjusted under the PSC to such extent that such adjustment will be economically beneficial to the government of the Federation. and address the deeply entrenched financial leakage in the Nigerian Petroleum industry.
As the Vice Chairman, Senate Committee on Petroleum (Upstream), I am decisive about taking intentional steps to entrench transparency and accountability in the Nigerian Upstream Petroleum industry so as to increase the Federal Government’s share of revenue accruing from oil trading.
I am proud to be a major contributor in this National revenue boosting bill which is part of my early legislative inputs in the Senate.
I want to express gratitude particularly to the Senate President, His Excellency; Senator Ahmad Lawan and the entire leadership of the Senate, most especially my Chairman in the Senate Petroleum Upstream committee; Senator Akpan Albert Bassey for his support and efforts in making this bill a reality.
To my Distinguished colleagues, may I seize this opportunity to commend you for the high sense of patriotism, maturity and unparalleled commitment exhibited. These are clear indications of the import and sense of duty you attach to your call to national service.
Conclusively, I thank my family, friends and supporters who have shown enormous support through their good words and unwavering confidence in me. I want to reassure you all that my priority will always be to work for the betterment of public interest through robust, effective and detailed legislation and oversight to ensure that my people derive the dividends of democracy.
Senator (Dr.) Patrick Ifeanyi Ubah
Anambra South Senatorial District