 After several years of missteps, intrigues, legislative somersault and restarts, President Mohamed Buhari has finally signed the petroleum industry bill into law on the 16th of August, 2021. But Nigeria now has an app providing for legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the host communities and for related matters. The president has approved this chairing committee to oversee the process of implementation of the newly signed Petroleum Industry Act. Now the chairing committee is headed by the minister of state for petroleum resources, Timipri Silva. On the show today, we will give insight into understanding its impact on the oil and gas sector. Welcome to Business Insights and Plus TV Africa. I am Justin Acadone. Now before we get into the Petroleum Industry Act, the Nigerian National Petroleum Corporation, NNPC, has held the recent appeal court judgment affirming its appraisal of the oil mining license 11, OM 11, describing it as a huge victory for Nigeria. The corporation gave the commendation in the statement signed by its spokesperson, Garbraddin Mohamed Inabuja on Friday. Let's now take all the stories that made headlines in the world of business in Nigeria this week. On Monday, President Mohamed Buhari signed the Petroleum Industry Bill PIB 2021 into law. Special advisor to the president on media and publicity, Femi Additional, disclosed this in a statement he issued in Inabuja. According to the statement, working from home in five days quarantine as required by the presidential chairing committee on COVID-19, after returning from London on Friday, August 13th, the president assented to the bill on Monday, August 16th in his determination to fulfill his constitutional duty. The foreign exchange reserves in Nigeria have started declining again after rising to $33.59 billion, the highest level in more than a month. The forex reserves, which failed to a record low of $33.09 billion on July 12th, had gained $500 million in almost a month to close at $33.59 billion on August 10th, according to the latest data from the central bank of Nigeria. The reserves, however, declined to $33.58 billion on August 12th, the CBN data showed. The abandonment of farmlands and accounts of the insecurity by farmers, headers, clashes and rising incidents of kidnappings left food inflation at 21.03% in July 2021. Although the rate of rise was a bit slower compared to 21.83% recorded in June, the high level of inflation during the month in review meant that Nigerians continue to pay more for lesser food items, thereby weakening their purchasing power. This is even as the latest consumer price index, CPI report, put the inflation rate at 17.38% in July year-on-year or 0.37% points lower than the rates recorded in June 2021, 17.75% according to the National Bureau of Statistics. Data collected from the CBN have shown that the federal government's total borrowings from the central bank of Nigeria through ways and means advances had ballooned to 15.51 trillion Naira, rising by 2,286% in six years. The 15.51 trillion Naira owed by the federal government to the central bank is not part of the country's total public debt stock which stood at 33.11 trillion Naira as of March 2021, according to the Debt Management Office. The public debt stock comprises the debts of the federal government of Nigeria, view 36 state governments and the federal capital territory. Minister of Nigeria Delta, Gautu La Pabio, says the federal government has commenced a process of recovering $4 billion owed by the Nigeria Delta Development Commission, NDDC, by international oil companies. The minister said this on Thursday during the weekly ministerial briefing organized by the presidential media team. He added that the federal government had slated 2022 for the completion of the east-west road and that the present regime had prioritized the completion of the project. And those were the stories that made headlines this week. Moving on, the group managing director of the Niger National Petroleum Corporation, Mele Kiari, has said that the petroleum industry are just ascented to by President Mohammed Buhari, will transform the nation's petroleum industry into a hub of business opportunities. Kiari also said the act will attract huge capital globally into the country's oil sector, strengthen cost recovery, and ensure decent returns on investments. And we have joining us the Pengasins and our chairman from Puthakert, Pites Onita, who will be looking at all of the intrigues and of course reactions that have thrilled the signing. Good evening to you. Many thanks for joining us on Business Insight and Plus TV Africa. Good evening, Mr. Justice. Thank you for having me. Yeah, it is indeed our pleasure. Let's talk about the PIA, nor it has been a very long time. Some would say that it is a long time. Carbon has been almost 30 years and it has just been signed on Monday by the president. What is Pengasins' reaction to all of this? Do you have any fears, any concerns concerning this particular act? First of all, it's important for us to look at where we are coming from. Just like you have mentioned, the issue of the PIB, which is later PIA now, because of the signing of the president, have come a long way. For more than decades, Nigeria have been struggling to have a document, a legal framework that will be able to guide us in the oil and gas industry. So for us in Pengasins, haven't come this far. And finally, the president's signing shows that Nigeria is ready to begin the journey for the development of the oil and gas industry. For us in Pengasins, it is a welcome development and we want to appreciate the members of both the Senate and House of Rep for having that courage to be able to pass that bill, which the president just signed. We agree that there are a lot of things about the document that should be improved, but the first thing first is that it is a legal framework that will guide the oil and gas sector moving forward. And for us, it's a welcome development. All right, in a statement issued jointly by Pengasins and of course New Pengas sometime last month, just before it was signed, association said some of the issues they identify as gray areas include that board membership of unions, restriction on import license, single regulator in the industry, provision of incentive for investment in local refining among orders. So what exactly, can you just throw more light on it specifically concerning this issue of single regulator for the industry? Just as you know, Pengasins as an association operates within the oil and gas sector of Nigeria. And when we raise those alarms that we did between New Peng and Pengasins, it was because we have noted some gray areas like you have mentioned. And as us as an association, what we wanted to achieve is for Nigeria and indeed the operators to be able to look at those gray areas like we have mentioned. Few days ago, we saw on air and the Minister of Petroleum acknowledged that these documents, just like any other document, which is not the law, cannot be perfect at the first instance. So those imperfections, those consigns that have been raised, not only by Pengasins, but also raised by stakeholders across the country. These are what the government said that we look into. So we are sure and we are hopeful that the opportunity to review some of these consigns will be addressed as we move forward. This is a document that we decide in the future of Nigeria oil and gas industry. And it is only normal that those who are in it should be able to raise consigns where it affects them. Our happiness is that government is willing to engage, government is willing to look at those issues. At the appropriate time, Pengasins, I won't discuss with government, we'll be able to give a final position on that. All right, Mr. Onita. Another issue that is similarly controversial is the 3% for host communities and 30% are Frontier Exploration Fund. And even ministers and governors have said that it will deplete the Federation account. But specifically now, what's your take concerning the 3% for host communities and of course, 30% Frontier Exploration Fund? As an association, we have observed the consigns raised by the host communities across the world. And just like the president of Pengasin asked, 3% of what? Because it's important to be noted, 3%. The minister is saying it's about the operating costs or that's saying it has to do with the profits. But as he stands, we are happy that there is a template. Over the years, there is no legal framework in the industry. So if 3% is a starting point for government and we have been given the windows, both stakeholders and community stakeholders to also raise our consign, I'm sure that it will be a stepping stone. Nothing is enough. And I'm sure that even if they give 20% or more, it wouldn't be enough. But we now have a framework which the government have given as 3%. As we progress in trying to look at these documents, look at areas we can make amendments, I'm sure that Nigeria will be better for it. So as an association, we are happy that the communities are being reporganized and we know that when the issues are being tabled, more or better consideration or explanations will be given to all and it will be better for all of us. So would you now say it is Uhuru yet for the downstream sector in Nigeria with the PIA now in force, although there is an implementation committee? Would you say that Nigeria will soon become a hub when it comes to downstream operations in petroleum across Africa? Well, we will say that it is Uhuru for the downstream sector. But what we will say is that it's a starting point for better things to come for the industry and for the country. As you are aware, the minister for state petroleum is the chairman of a silent committee that will be able to look at these issues and be able to work at modernity of its implementation. Though the president have signed, but you are also aware that the effectiveness, the effective framework will be worked out by this committee. So we wait and see how the committee go about it and as an association, we also make our opinions, our suggestions known to the appropriate people. It is only then that we can be able to come back and say whether it is Uhuru or not. But whether it is a step forward, yes. It is a step forward in the right direction. All right, fine. Let's leave the PIA for one second and talk about other issues affecting operations and of course the energy sector, specifically with Tempengusen and your operation. Lots of long ago, you addressed the press conference in Port Harcourt, River State and you said you expressed concerns concerning insecurity and how it has affected operations specifically in that state. Can you tell us more? You want us to talk about the security challenges and how it affects, you know, your operation. Yes. Okay, the security situation in this country is alarming and we don't need the sub-sayer to explain to us what is happening in the country. Kidnapping is on the increase. People are being kidnapped for whatever reasons. The security situation, people can no longer sleep with their eyes closed. There is hardly any day in the national delights of this country that you will not see one or two papers reporting about the insecurity in the country. You talk about the Boko Haram area is the same. So as an association, we met in our neck and we agreed that as state leaders in the economy of Nigeria, we must be able to add our voice to the security situation. As a people, we condemn the insecurity, but then we should also encourage the police officers and other security pedestalers that have taken their life for the interests of all of us. So PENGASAN is collaborating, trying to create the necessary security awareness in collaboration with relevant security agencies within the zone and within the country. So it is a program initiated by the leadership of PENGASAN to first of all, appreciate the policemen and women that are there and saving all of us. But importantly, to create the awareness that we'll be able to save all of us. Mind you, our brothers, our sisters, our colleagues and those who are involved in this security situation that we are complaining in the industry where we operate is just a norm that in every day, you will hear one security kidnap, one over one platform or the other. Our members are mostly what I will call the endangers per se in this case, just like other Nigerians. So this program is our own little way to contribute to the security situation of the country. It's a step, this is just the first phase, the subsequent phases will be made known as we progress. All right, let me just get your candid opinion just before we wrap up on this particular segment. When it comes to modular refineries in Nigeria, what is your take specifically concerning that modular refinery and operations in as much as Mdangoti is actually building a multi-billion refinery here in Lagos? What do you think about modular refineries? Do you think the federal government should be looking in that direction? Well, on the issue of modular refineries, first of all, association position, PENGASAN position is that we should encourage our refineries internally to be able to produce and sustain what we are going to use as a country. That has been the call of PENGASAN and indeed level over the years. So for modular refineries, it is difficult for us to appraise whether we are making progress or not. Recall that few years ago, the vice president of this country made some visitation in some of these areas and executive approvers we are giving. But it is difficult for us now to ascertain whether these modular refineries have been able to contribute positively as we speak. However, the concept of modular refinery is a welcome development. If adequate laws are being put in place for people to do business according to the laws of the land. So that will be our stake on that for now. All right, we must say a very big thank you to you, Peter, Onita, for joining us on Business Insight on Plus TV Africa and indeed telling us the position of PENGASAN concerning the recently signed PIA and of course other security threats in the region. Would you appreciate your time? Thank you for this opportunity and God bless you. All right, yeah, God bless you too. Indeed, we have been speaking about the PIA and we were joined by Peter Onita, Zeno Chairman of PENGASAN and Port Hackett in Reaver State and still talking about the PIA according to the MNPC boss military getting the petroleum legislation passed is the right thing to do because investors will not invest their money if they are not sure of how they are going to get their investment back and what benefits they can get from their investment as well as how stable the investment climate is. Away from all of that, the Chartered Institute of Bankers of Nigeria, CIB, and is set to hold her 14th annual Banking and Finance Conference in repositioning the banking and finance industry as a catalyst for economic recovery, inclusion and transformation of Nigeria. Take a look. Who is that? Come back to take us through. Thank you, Mr. Chairman. It's a shame that we're still seeing people who are trying to game the system, who are basically going to get tickets and seeking to cancel those tickets to try and arbitrage and all of that. But I think at the last Bankers' Committee, there was a press conference and Web Bank spoke to the fact that if we found people trying to game the system and people are going to sign and undertaking as they collect their dollars that they were traveling and if they're trying to game the system, we will report them to law enforcement agents. The accounts may be blocked and all of that, but this is not the forum to speak about that. But permit me to just say that it is going as smoothly as we would have expected it to have gone. The Nigerian GDP report, I think, would leave that in the central bank to speak to once it is ready and I think they will provide, they will address the market next week. Now, Abasiekong spoke to digital infrastructure and the revised or reduced right of way charges spoke to the fact that a few states had complied and brought it down to basically enhance digital infrastructure. They spoke to Cardinal State, Lagos State, and I know that River State is looking at it. I would engage most of our leaders, our political leaders, to basically see how they can speak to their other colleagues. All right, would it be to bring it down the cost of this right of way to basically ensure that digital infrastructure is laid across the country in a cost-optimal manner. But thank you for raising it because it's something that a lot of people don't pay attention to. In fairness, a few years ago, there were a lot more states that had done it. Even Ados State had done it and if we went up to the North, Sokoto State had done something. There were a couple of states that had embraced it but I think the point you're making is the fact that we need all the state's governments doing things that will basically enhance or reduce the cost of digital infrastructure and I think it's a good point and we'll take it up from here. Speaking to the issue of the USSD, I think there's been, it's not the right forum to speak to it and I think that between the telcos and their regulators, the central bank and the committee of banks, I think we've reached what is a reasonable agreement as to the way forward, all right? So that the telcos can receive their charges directly from their customers in a manner that is appropriate for everyone. So I think that has been resolved, all right? And there's a good working arrangement between the banks and the telcos if you like going into the future. Cannot underestimate the growth of the banking system in supporting not just the survival of the economy but in growth. Growth can really be in expansion of businesses and by extension, extension of credit facilities and all that banking services. So... On the conference really set to hold sometime next month we'll also deal with issues concerning cyber crimes, cryptocurrency among all the issues related to the financial sector in Nigeria. And that's the size of the show for this week. I am Justin Kadounye. Many thanks for watching. Bye for now.