Skip to main content
Access every election story that matters
Enjoy unlimited digital access
$1.99
per week for 24 weeks
Access every election story that matters
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
// //

Nigeria’s parliament on Friday cleared a historic petroleum overhaul that seeks to attract waning investment to its aging oil sector and sent the measure to the president for signature.

The overhaul, in the works for 20 years, is the first sweeping update to the laws that govern everything from oil drilling to fuel sales in Africa’s largest oil exporter in decades. Experts said the package is crucial to enable Nigeria to develop its oil and gas before they effectively become stranded assets as the world moves toward cleaner energy.

The Senate had approved the package on Thursday, but the house postponed its vote amid rancorous debate over the amount of money directed to oil-producing communities.

Story continues below advertisement

Both parliamentary chambers had passed the bill this month, but approved different amendments, which required harmonization between lawmakers from the two chambers.

The reconciled bill sent to the president would send a 3 per cent share of the annual operating expenditure of oil companies to communities where petroleum is produced. The house had approved a 5 per cent share, and the difference had been a sticking point in the reconciliation process.

The final package also included clauses that would require licences to import fuel, and direct the regulator issuing the licences to give preference to those with domestic refining capacity.

Those clauses are widely viewed as an effort to boost the Dangote Group, whose billionaire founder Aliko Dangote is building a 650,000 barrel per day (bpd) refinery on the outskirts of Lagos.

Only 23 other companies have refining licences, and most of them produce less than 12,000 bpd, leaving Nigeria to import nearly all of the fuel it consumes.

Revisions to the original language would allow international traders to seek import licences. But unions and groups representing fuel marketers decried the import licences as anti-competitive.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies