Energy

There is a good chance that President Muhammadu Buhari will sign the Petroleum Industry Governance Bill (PIGB) into law in the third quarter. Even though we had expected that the bill would be signed into law in the second quarter, it never even got to the president for his signature after it got stuck in the legislative process in the National Assembly.  Buhari is said to be currently consulting with oil industry operators, within Nigeria’s energy sector, to see if he would sign the bill into law. There is political mileage to be derived for signing this energy sector and petroleum industry bill into law, which increases the likelihood of it being sanctioned.

The National Assembly will also pass the other three versions of the petroleum industry bills — the Host Community Bill, the Fiscal Bill and the Petroleum Industry Administration Bill — into law in the third quarter. But the chances of any of these energy sector bills being signed into law before the end of the year are slim. However, the executive bill seeking an amendment to the Deep Offshore Petroleum Act is expected to sail through in the third quarter and be signed into law before the end of the year.

Militant activities will continue to be elevated in the Niger Delta as the election approaches and the country will continue to struggle to keep up with oil production. Political considerations mean that the government cannot take too hard a stand on oil sabotage in the region. Politicians juggling for influence will also seek to use militants in the region to push personal agendas.

This article was taken from the Nigeria Q3 Forecast, which can be found in our Nigeria Focus and Nigeria Politics & Security publications. For more information on this topic, or to ask our consultants any questions you might have regarding business in Nigeria, then please contact us.