Chuks
Udo Okonta
The
Nigerian Insurers Association (NIA) has expressed concern over some observed lacunas
that are inimical to insurance growth and development in the proposed Petroleum
Industry Bill (PIB).
The
Legal Committee of the NIA, led by, Samuel Oduroye, in a report submitted to
the association, said from its review on the bill, it was observed that
highlights of the bill did not provide for sanctions for default after
licensing operators, adding that this will create a problem of enforcement of
sanctions against defaulters.
It
noted that there is also no provision requiring that assets of the emerging
entities envisaged in the bill should be insured and that there is no clear
provision for the protection of local content in the bill.
The
committee noted that the fear of double taxation is palpable as the bill is not
clear on the issue. It stressed that the new agencies to be created as provided
in the bill are viewed as old wine in a new bottles and it is doubtful if a
mere change of name will translate to improved efficiency.
“It
is wondered why another cost regulator is needed when the existing joint
ventures board and management could control their cost to be competitive.
“There
was no provision in the PIB that would make it mandatory for government to
publish quantity of the oil produced and all the payments received from oil companies
in view of the influence of secrecy in fuelling corruption in the industry,” the
committee said.
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