Key Nigerian oil bill finally looks set to pass

Significance

Although President Muhammadu Buhari’s government recently touted its imminent passage, it has stalled again and will not pass until the first quarter of 2021 at the earliest. With a bleak fiscal and current account outlook in the medium term, the PIB’s passage is seen as crucial to stimulating investment in the oil and gas sector.

Impacts

• The new legislation would increase the amount of government revenue available for sharing with subnational units.
• The provisions on community development funds should gain some political capital in the restive Niger Delta region.
• The passage of the PIB would improve an embattled Buhari’s poor economic legacy.