“It is an encompassing document. When you pass a law, you give people time to adjust to it, to make necessary adjustments and all that before it takes effect,” Agboola, an oil and gas analyst at Diamond Bank told CNBC Africa on Friday.
This follows the Nigerian Minister of Petroleum Resources, Diezani Alison-Madueke’s announcement that the country’s much anticipated PI Bill might take as long as five years to be fully implemented.
If the implementation of the bill takes longer than five years, it could have serious consequences for the national economy. Agboola explained that Nigeria needs some direction going forward in the industry.
“It’s already generating a whole lot of issues in the industry. First of all people don’t know where we are going to, people don’t know what is going to happen. People don’t know what the content of the bill is going to be. It is very important we get our acts together and get this bill passed,” he said.
“I think the earlier we realise that, the better for us really. If you look at what is happening around the world, oil is found everywhere. The good thing about Nigeria is it’s a mature environment, it’s a matured industry. I think we shouldn’t take that for granted.”
As a result of international oil companies selling off their Nigerian oil assets in the last two years, Agboola insisted that the sooner the bill is implemented, the better for the country.
“Just like we’ve always said, investors want to do business and always want to go to where they can quickly invest and get returns on their investment. So for me whatever we need to do about this PI Bill, we need to do it very fast,” he said.