₦airaland Forum

heisenberg33: @Jarus nice write up, i myself have been following the events surrounding the PIB. My question to you is, do you anticipate any form of job loss for the DPR and NNPC staff? For example if the DPR is unbundled, do you think there would be any lay-off?

Although, th govt will not want to lay off so as to be politically correct and avoid friction, I anticipate gradual and systemic (rather than massive) layoff of some guys. They can just come up with a policy like anybdoy that has spent 20 years to go, or commission a professional firm to carry out staff audit, and using that as a basis to send away redundant/incompetent employees. It may not be immediate though.

All will be hinged on efficient management of oil industry agencies which is one of the objectives of PIB.

akiesony: Very incisive article, Jarus. You are obviously following the PIB very closely. I look at the PIB as the key that will open the oil industry to more Nigerians.
Jarus, do you have any insights as to specific biz opportunities one can begin to plan for? If the gsm boom is a taste of what to come, the smart guys are already making contacts in China.
Shoot me a mail if you can Jarus.

As a professional in the industry I have to monitor PIB, because I have to be on top of my game as a member of team to devise post-PIB strategy for my employers.

For you, if you are from Niger Delta region, especially from oil producing communities, go and float an oufit, if you don't have any already, package it and start liaising with your community chiefs and associations to get contracts. Contracts as small as packing shits of facilities workers will fetch you millions every month. And I'm not kidding.

Other employment/contract opportunities include:

- Supplying security personnel
- Being representative of your community (CLO, every oil company must have a CLO in the host community, who will be interfacing between the community and the company
-contract for supply of materials - all kinds of materials
- You can also float a company, assemble manual labourers, and with right contacts, you get contract to supply these semi-skilled personnel to the oil companies and charge your management fees


If you are well schooled, formal employment opportunities (although contracts for services pay more.

For other Nigerians not from ND region, it comes by way of employment. More indigenous operators will come into action, and the existing will expand their operations, because they now have advantage over the IOCs. Thsi will mean more jobs in the expansion process.

femi4: Uche is not part of SA 2010 squad, so I don't see him as one of the key players.
Moses, I know!
Mikel, I know!
Abeg, who is Uche?
Yet to be tested in SE

smh for these miss-roads wey no dey watch fottball.

Kalu Uche was Nigeria's best player in World Cup 2010 and Nigeria's best performer in Europe this past season (second highest goal scorer in Turkish top flight).

If you don't know Uche, you don't know football.

boron10: It's time for Keshi to re-invite osaze to the super eagles

No, he will cause friction in the team.

jisky: Fine write up,very educative.
But mind u OFFA s not a village.lol

LOL. Village is generally used to mean 'hometown' in Nigeria.

Victor is missing opportunity to be in contention for African footballer of teh year award.

He did well in AFCON 2013 (2nd best player), did well in UEFA, partially well in EPL

Capping these with a good performance in confederation cup will earn him Top 3 in African player of the award, if he doesn't win it. That would be an achievement.


This is a poor year for African foreign stars, since Eto'o, Drogba are leaving teh scene and Yaya Toure not spectacular thsi year. An average performance is enough to win AFPOTY 2013.

Unfortunately, Moses is about frittering away this opportunity.

There is a Gabonese Pierre Agyebamg or so setting French league on fire. He may end up winning the gong.

tdade: Considering the fact that it will improve the life of an average Nigerian, I dunno why NASS keeps stalling. Is it the 10% that goes to host communities?

That's one of the contentious areas - some people hold that we are giving too much to teh host communities. Their state governments collect higher cut thru the derivation principle already, there is the NDDC Fund (which mandates producing companies to remit 3% of their annual budget to the NDDC) for development of teh host region, there is the minsitry of Niger Delta too with its budget. Now, Host Community Fund. I also hold that we are giving too much to the host region. That is one major point of contention in the NA.

Other major points of contention are:

Too much power to the minister of petroleum, who can issue and withdraw, licence almost at will (although there is a facade of advisory team)

The provisions don't favour IOCs - and sure to fight back

Sincere 9gerian: A fool wants the ANSWERS but does not want to see the FORMULA. Guy, it is the FORMULA that produces the ANSWERS and without using the FORMULA you'll not arrive at the ANSWERS.

The PIB will provide jobs, jobs and more jobs. The PIB will also increase govt revenue which can be used to provide more good roads, better health services,etc. So guy, look beyond your nose

Nice response.

The PIB is fine on paper. But the problem again is, Nigeria's problem has not been the law but people implementing the laws. One wonders whetherb people to carry out the provisions of PIB will come from Mars.

But let's give it benefit of doubt.

Looks more like LASG beating a retreat to me, than commissioner being misquoted.

NOTABLE AGENCIES THAT WILL BE ESTABLISHED OR RESTRUCTURED BY PIB

• PETROLEUM TECHNICAL BUREAU (PTB): This will be a special unit under the office of the Minister of Petroleum. It will be peopled by professionals from both the upstream and downstream sectors and charged with the responsibility of rendering professional support to the minister

• UPSTREAM PETROLEUM INSPECTORATE (UPI): The UPI will regulate technical and commercial activities in the upstream sector. It will be responsible for issuing licences and permits. Representatives on Federal Mistry of Finance, NUPENG, PENGASSAN etc will part of UPI board, in addition to other professionals appointed by the president. The UPI is not profit-driven, it will therefore not pay income tax

• DOWNSTREAM PETROLEUM REGULATORY AGENCY (DPRA): This is to be the downstream industry, what the UPI is to the upstream industry. So if you want to set up a filling station, for instance, you approach DPRA.

Note that the Directorate of Petroleum Resources (DPR) currently does what UPI and DPRA will be doing. In other words, PIB unbundles DPR into UPI and DPRA


• THE PETROLEUM TECHNOLOGY DEVELOPMENT FUND (PTDF): The PTDF will continue to exist. The objective of the PTDF is to develop and train manpower necessary to service the petroleum industry in Nigeria. The body gives scholarships to Nigerians, sponsors and supports researches etc

• THE PETROLEUM EQUALIZATION FUND (PEF): The PEF continues to exist under the regime PIB seeks to introduce. The PEF is responsible for accounting for the ‘subsidy’ – the leverage given to Nigerians by making oil marketers sell at prices below market price i.e equalizing. But what is unclear to me is how this will continue to exist when subsidy will be totally removed. But my guess is the continuous existence will be to take care of the backlogs in the equalization funds accounting or to continue its function until after final subsidy is finally removed, the scrapped.


• THE PETROLEUM HOST COMMUNITIES FUND (PHCF): Host communities are communities where petroleum resources are found i.e the Niger Delta and other areas it will be found in the future (like my village in Kwara…lol). The PIB will require oil and gas producing companies to contribute an amount (10% of their profits after adjusting for Hydrocarbon Tax and Companies Income Tax) into this Fund. The funds will be used to develop the economy and infrastructure of these communities. A community that still goes ahead to destroy assets of companies producing in their locality will forfeit their share of PHCF. A good deal, if you ask me.

• THE NATIONAL PETROLEUM ASSETS MANAGEMENT CORPORATION (NAPEMC): The NAPEMC will be responsible for managing government investments in the upstream industry. It will have subsidiaries to carry out different aspects of these activities. It will take over assets and liabilities of NNPC, will be incorporated and fully profit-driven. It is not a regulatory entity. NNPC employees shall be transferred to this entity.

• THE NATIONAL OIL COMPANY (NOC): This will also be an offshoot of NNPC, but unlike NAPEMC which will be a limited liability company, the NOC will be listed on the Stock Exchange, meaning you and I can buy its shares. Up to 30% of its share will be available for grabs by the public. Certain employees, assets and liabilities of NNPC will also be transferred to the NOC.

• THE NATIONAL GAS COMPANY (NGC): This will also be listed as a PLC and certain employees, assets and liabilities of NNPC will be transferred to it.

TAXATION
The PIB effectively repeals the Petroleum Profits Tax Act (PPTA), which has been governed fiscal framework in the upstream sector pre-PIB. Upstream oil and gas companies will now be subject to
• Companies Income Tax (CIT): Like the downstream businesses. It remains at 30% of adjusted profits
• Hydrocarbon Tax (HCT): This is a new tax to be introduced by the PIB for upstream operators. The rate is 50%
Roughly, the effective tax rate in the upstream industry comes to around 80%. It should be noted the repealed PPTA ranges from 66.75% to 85%. So it may be net benefit or hit to companies depending on their operations.

Education Tax remains unchanged at 2% of assessable income.

CONCLUSION
Although I have summarized the PIB in layman language, it no doubt goes beyond this. A lot of technical jargons and complexities have been left out to avoid derailing from the objective of this article. It should also be noted that the PIB has not been finally passed, but this essay is based on the latest version as at the time of doing this summary. There will surely be changes to the Bill before the final version is passed into law, but the major areas covered in this write-up are not expected to significantly change.

http://jarushub.com/2013/05/20/beyond-the-jargons-pib-for-dummies/

WHAT DOES PIB SEEK TO ACHIEVE?

The Bill seeks to:
• Create a conducive business environment for petroleum operations
• Enhance exploitation and exploration of petroleum resources in Nigeria for the benefit of Nigerians
• Optimize domestic gas supplies, especially for power generation and industrial development
• Encourage investment in Nigerian petroleum industry
• Optimize government revenue
• Establish profit-driven oil entities
• Deregulate and liberalize the downstream petroleum sector
• Create efficient and effective regulatory agencies
• Promote the development of Nigerian content in the oil industry
• Protect health, safety and the environment in petroleum operations

KEY IMPLICATIONS/OBJECTIVES TO NOTE FROM THE ABOVE

• More jobs for Nigerians – as it will become illegal to employ foreigners for certain skills that can be sourced locally
• Where such skills are sourced from abroad due to unavailability locally, a local understudying the expat is a requirement
• The above is applicable not only to skill, but to materials sourcing
• The above means more jobs for Nigerian local contractors, especially those from the oil producing regions
• Gas is still under-focused in Nigeria and the potential from this source of energy lays untapped. PIB seeks to maximize this. If well explored, this will boost power supply in Nigeria
• Government revenue from oil industry will increase. This means more funds in the hands of government to engage in developmental activities, ideally
• The downstream sector becomes fully deregulated. In other words, subsidy will fully go.
• Subsidy removal is not totally bad, if there are no distortions to market – this is my personal opinion as an economist (well, accountant with academic training in economics)
• Environmental protection – what Saro Wiwa and co fought for, and the initial grudge of the Niger Delta militancy – will be addressed to a large extent

WHO OWNS THE OIL?
The PIB vests ownership and management of all petroleum resources, offshore or onshore, in the Federal Government of Nigeria, which manage them on behalf of all Nigerians. This means irrespective of where the oil is found, it belongs to the government of Nigeria. Of course, equity calls for special consideration for localities where the resources are mined. This is taken care of by the Revenue sharing laws and other provisions of this Bill like the Host Community Fund.

http://jarushub.com/2013/05/20/beyond-the-jargons-pib-for-dummies/

BEYOND THE JARGONS – PIB FOR DUMMIES

A bill is a draft of a proposed law that is still undergoing legislative scrutiny. When it is passed by the National Assembly, it becomes an Act. No other bill has been more popular since Nigeria’s return to democratic rule in 1999 than the current Petroleum Industry Bill (PIB) – maybe the Freedom of Information Bill comes near. The reason is not far-fetched: anything petroleum in Nigeria generates passionate interest.

Every lettered Ade, Ada and Adamu is aware that there is a contentious bill by the name PIB, but other than the professionals – journalists, informed oil sector workers, regulatory and professional services providers, industry watchers and analysts – and some politicians, few people understand what the PIB is about. In this essay, I have attempted to explain the PIB in the most basic of terms.

WHAT IS PIB?
PIB is a bill that, when passed as an Act, becomes the master reference law that governs the Nigerian petroleum industry – from the upstream division (exploratory, development and production activities) through the midstream (gas processing) to downstream (servicing, refining, distribution, transportation, marketing/retailing).

BACKGROUND
Shortly after President Olusegun Obasanjo assumed office in his first term, he set up a committee, called the Oil and Gas Industry Committee (OGIC), with a mandate to take a comprehensive look at Nigeria’s oil and gas sector and offer better ways of managing the industry. Obviously, many of the laws and regulations guiding the industry had been around for long, some far back 1950’s, and although they had undergone amendments, the federal government considered it necessary to take an holistic review of the industry with a view to getting the best of it by all stakeholders. The OGIC was led by Mr. Rilwanu Lukman, veteran petroleum engineer and former Secretary-General of OPEC, and had other oil industry eggheads. The committee submitted its report, and its recommendations formed the basis of Petroleum Industry Bill, which has since been subjected to further reviews and adjustments.

http://jarushub.com/2013/05/20/beyond-the-jargons-pib-for-dummies/

Interesting, as these guys appear to be GEJ's most popular ministers after NOI and Diezani.

It is also interesting that Bala, Orubebe and Maku are few of GEJ's ministers who appear, at least outwardly, ready to die for him, going by their action and utterances.

Bala jumped ship from ANPP, dropped his senatorial seat, took on the cabal, seized Turai Yaradua's land, name Maitama boulevard or something like taht after GEJ, etc, all to please GEJ

Orubebe appears to be GEJ's right hand man.

Maku - need one say more?

And Oduah - believed by many as most performing minister, changing faces of airports.

dearestsewa: Hi everyone, I am a fresh graduate. I believe in earning nothing less than 6digits of naira at my 1st job. My friends on the one hand say that I should start smwhere evn if it's small bt my parents say that I shd wait 4d job dat wl put an end 2our poverty. I dnt knw whch advice 2follow bt I thot sharing your first remuneratn wt me might help. Thanks- confused NLander.

Bros, start somewhere, even if it's 5-digit, especially given that it doesn't appear you are from a rich home.

Although I also set a standard that I wont take any job less than 100k (i.e 6-digit) when I started work, it was because I knew I would have options, given, in all humility, my certificates.

My first real salary (not pre-NYSC and all that) was 163k per month. To God be the glory, five years later, I earn almost five times that.

princemolak: But This Same Guy Just delivered a lecture yesterdai in lagos while a book was being launchd,am nt believing this untill i see it on sahara reporters.
.
Want to make money online?check www.onlinemoneydon.com

It is true.

sexkillz: [color=#000030]Seun saw my username and looked beyond it when me made me a mod in Romance section. The same user name was mod of the year 2012. The username is moderating 4 sections on Nairaland.

I don't think it's about the username or it's relevance. The politics section needs moderating and that's what I'm here to do. My username doesn't affect what I know I have to do and when I have to do it.

Thank you though. [/color]

No P. All the best bro.

Welcome on board, SK.

You are thick-skinned, so I believe you should be able to cope. You are also obviously detribalized and dont have a problem mixing with anybody ireespective of affiliations and persuasions. Your organizational skills is also great (you should be able to continue with my initiatives - debates etc - although I understand your primary assignment is to fight tribalism)


I however think a change in username will give a better impression for a section like politics. It is possible. I asked Seun to change my username in 2009 and he did, retaining my posts under my old ID.

shadrach77: i know one that normally works - they say if a baby is having hiccups, put a thread on his/her head. When i was young i saw many mothers try this and it works! Can anybody explain the rational behind this

Another one i heard is, if you are cooking beans and you want the beans to get cooked faster, throw a metal spoon into the cooking pot. That works too

Another one is, if the ironing platform of your pressing iron is stained, apply toothpaste to it to remove it, that works like magic too

Yet another one - if someone pours itching powder (yerepe) on you, rub the affected parts with palm oil. That works too. Bottom line is, not everything in the world can be explained medically or scientifically - deal with that

I can't believe we still do this for my baby

eating fish eye makes you dull.

13volts: All three police stations burnt down in Daura, including the Area Command

Two yet to be identified burnt bodies inside one of the police station, probably that of a suspect and a police man.

Three soilders ambushed and killed while on route from Kastina to re enforce a military patrol team.

Commander of JTF in Kastina wounded in the ambush but in stable condition

About three banks robed and unspecified amount stolen

The gunmen while escaping had an accident some few kilometers away from Daura, in the process a detachment of MOPOL from Kastina met them and engaged them in gunfire.

Three gunmen where shot dead, others escaped into the bush with bullet wounds.

MOPOL are currently combing the bushes for possible arrest of the feeling suspects.

About 7 AK 47 rifles, ammunitions and unspecified amount of cash recovered from the gunmen.

All three suspects killed had Kanuri tribal marks which further re enforced the notion that they came from Brono.

This is the latest you can get from any source.

This is war. There is war in Nigeria already.

Demdem: I move for ur re-instatement while Afam should be sacked. he seems to be redundant.

Bros, I be MOD EMERITUS nah. I don pass mod now.

I was on that seat for two and half years and this is the truth:

1, Tribalism may never be stopped, whether by soft or hard approach. That is the bitter truth. I set it out as an agenda in 2010 when I was made a Mod, but I later came to the realization it may never be stopped. After all, pick a Nigerian newspaper on a typical day and read the headlines: "North declares war on GEJ", "Dokubo threatens to make Nigeria ungovernable is his Ijaw kinsman is not re-elected", "Yorubas present agenda" etc. I'm not saying mods should not try (in fact, it is their primary duty to make this place hell for tribal warriors), but totally eradicating it is impossible. That was my lesson.

2, A mod, like any leader, can never be totally popular.

3, I don't think a mod will deliberately tilt the forum in favour of any interest. I honestly don't think so. But people will always read sectional meanings to whatever he does. When I was on the seat, Desola was accusing me of being anti-Yoruba, the Igbos were accusing me of frolicking with Yorubas and protecting their interest. All these are lies, but they never worried me, because the contradiction in the accusations is enough vindication. A good mod, having satisfied himself that he is doing his job fairly, should not bother about those kinds of accusations. They are part of the job.

[quote author=kene_slow]I'd put Ryan Giggs ahead of him in the wing department. Guys like Arjen Robben also featured in the EPL at one point remember?

Beckham is/was a very good player, but definitely not tier 1. I'd put him at tier 2B; great career regardless.[/quote]Arjen wasn't spectacular in EPL, no thanks to injury.

The CBN governor is not the president or a state governor. He doesn't have to announce to the whole world he is going on medical leave, moreso when it's just for a few days.

In any case, if he wanted to hide it, he would not have allowed a picture of him in hospital taken. There is one on the internet where he was seeing off Kano state governor who visited him in the hospital.

At the risk of committing name-dropping, I am also aware as he told me he was on medical leave abroad, without asking, when I contacted him for something else last week. I don't think he has anything to hide about going on medical leave.

Visiting hospital abroad? Now that is debatable. But I don't think the CBN governor is the right person to get Nigerian hospitals functioning well.

ibonu

I used to say he was overrated. But in hindsight, he wasn't actually overrated. At least nobody ever said he was the best player on planet.

I think he was a great player.

In my books, he was:



England's best footballer in the last 15 years
EPL's best deadball specialist ever
Second to CR7 as best winger the game has seen in the last 15 years


I know he is overhyped, but nobody ever said he was the best football player, the hype comes from the looks and all those off-field activities, which are not my business

oyb: psychos

Decoded.

This is my third employment.

First one, female boss
Second one, male boss
Third and current, female boss.


I have been fortunate to have nice bosses in all the three places.


Both female bosses I have had are ok.

But as a general observation, female bosses are either extremely nice/good/fantastic or extremely opposite (difficult, hostile etc).

Male are usually in-between.

Easily StanbicIBTC.

I use StanbicIBTC and 85% of staff in all companies i have worked for also use them. I get my notifications and statements regularly. They also have responsive customer service.

Others:

I take ear pieces without dropping
I go with magazines (if I see it is your copy in it e.g KLM)
Sometimes I go with the body cover (blanket)
I also go with eye cover (abi wetin be that thing wey Qatar and few others dey give to cover your eyes when sleeping)

Of course, all are legal.