Effective Stakeholder Management is essential for sucess in policy and legislative environments. This Seminar looks at the dynamics of Stakeholder Relationship which can aid the passage of one of Nigeria's most sought-after piece of legislation - the Petroleum Industry Bill.

1. Stakeholder Management Seminar
The Petroleum Industry Bill as Focus.
Bolaji Okusaga

2. Let’s Think About the 5 Steps for
Managing Stakeholders
Step 1 – Identify
Stakeholders
Step 2 – Prioritise
Stakeholders
Step 4 – Engage
stakeholders:
building the
relationship
Step 3 – Visualise
the stakeholder
community
Step 5 – Monitor
the
communication

3. Let’s Use the PIB
The Nigerian Petroleum Industry Bill.
• Starting with the need to review current legislative
and policy regimes in the Oil and Gas sector
• A policy document was drafted under the Obasanjo
regime led by policy champions like Riliwanu Lukman
• A PIB 2008 Bill was sent to the house during the 6th
Assembly but was not passed.
• The Bill was reviewed and resent to the 7th Assembly
as PIB 2012 but has not been passed.

4. Key Targets of the Nigerian Oil and Gas
Industry – in the last Decade
2007
2008
2010
36 billion barrel
Reserves and 4
million b/d
production
Develop
domestic
market and end
flaring
• Maximising sector
value and fair
share for Nigeria
• Improving Nigerian
capacity and
Content
• Capture economic
value and generate
as much revenue
from gas as from
oil
40 billion barrel
reserves and
4.5 million b/d
production by
2010
• Emphasize local
content
• Bouy the Cabotage
Act and move for
passage of the PIB

5. Current Market Overview and Industry
Dynamics
Market Overview
• Upstream Market is
Oligopolistic with
Shell, Exxon
Mobil, Chevron as
leaders in an industry
that has a lot of
marginal hybrid and
local players
Industry Dynamics
• Move to strengthen cabotage Act
in order to ease the rise of local
players in the shipping of Nigeria’s
Crude
Push for stronger local content and
technology transfer
The ongoing debate on the
Petroleum Industry Bill with
resistance from Multinational Oil
Corporations
Issues of Bunkering and Oil Theft
and attendant loss of revenue
accruable to government

6. Engagement Platform: Policy
POLICY
ENTERPRISE AGENCIES
GOVERNMENT
PRESIDENCY
LEGISLATURE
Senate & House
Committees
MINISTRIES AND
PARASTATALS
JUDICIARY
Nigeria policies and
reform initiatives
Promotion Council
NNPC, NAPIMS, D
PR
NIGER-DELTA AMNESTY
PROGRAMME
State
Governments
NSE
SEC
•Enterprise Agencies are very critical stakeholders who determine
policy direction and implementation
6

7. Engagement Platform: Partnership
PARTNERSHIP
Shipping Companies and
Oil Trading Concerns
Industry Groups
OPTS, Business Chambers
COUNTER-PARTIES
SUPPLIERS
•This Group aids business success
•Bespoke communication for this group will be essential.

8. Engagement Platform: Pressure
PRESSURE
COMMUNITIES / NGO’S
Amnesty
International
MEDIA
NEWS /
POLITICS
OIL & GAS
Host Communities
ERA / Friends of
the Earth
BUSINESS &
ECONOMY
ENVIRONMENT
•Media, NGO’s and Community Based Organisations are key
influencers who help shape public opinion.
8

9. Target Audience - Expectations
Stakeholder Group
What Petroleum Industry Policy
Champions expects from them
What stakeholder s expect from
Petroleum Industry Policy
Champions
Government
Empathy with the industry’s challenges.
Fair hearing in all disagreements with
host communities.
Consistent business opportunities,
higher profit margins. Quality products
to end users at fair market value.
Commitment
to
socio-economic
development of Nigeria in general and
host communities in particular.
Local Communities
Identification with Petroleum Industry
Policy
Champions
and
an
understanding of its contribution and
value to the local community and
economy at large. Support in lobbying
government and setting agenda within
the industry. Understanding that
dialogue is the best way to resolve
disputes
Socio
economic
development,
employment
opportunities,
environmental protection
9

10. Target Audience - Expectations
Stakeholder Group
What Petroleum Industry Policy
Champions expects from
stakeholders
What stakeholders expect
from Petroleum Industry
Policy Champions
Partners
Thorough understanding of the business
and the company and commitment to
moving Petroleum Industry Policy
Champions forward to meet objectives.
Loyalty and empathy.
Good corporate governance,
consistent business opportunities
and higher profit margins
The Media and its institutions
Positive news angles, wide coverage and
prominence, understanding of company
values, invitation to comment on industry
and general business news.
Consistency in message content,
accessibility, transparency,
business patronage, respect,
recognition and an understanding
of news values. Capacity
development and value creation
Regulators
Provide incentives, an enabling
environment, and a voice in the
formulation of legislation affecting the
organisation. Entrenchment of sensible
legislation that balances diverse interests.
Demonstrate good citizenship by
living the business principles,
demonstrate responsibility and be
actively engaged in capacity
building and be supportive of
economic reform
10

11. …Journey to the 2012 Petroleum Industry
Bill(PIB)
Special PIB Task Force led by Senator
Udo Udoma was set in January 2012 to
work with relevant government bodies
to produce a new version of the PIB for
presentation to the National Assembly.
The PIB Technical Committee was
headed by the Director of DPR Osten
Oloronsola.
The Task Force was directed to consult
with key stakeholders and to liaise
with the National Assembly to ensure
the quick passage of the 2012 PIB
The Special Task Force on PIB
submitted its report in June 2012 to
the Presidency
Federal Executive Council of Nigeria
approved the PIB on 11 July 2012
The Presidency upon the approval of
the Federal Executive Council
(FEC)forwarded the 2012 PIB to the
National Assembly on 18th July 2012
The bill is now before the National
Assembly

12. Overview of the 2012 PIB
Is a 223 page document ;comprises 363 sections divided into 9 parts with 5 schedules. Provides for the legal, fiscal and regulatory framework
for the oil and gas industry. Note that some sections of the PIB were not correctly numbered. E.g. no section 119
Create two regulatory entities. The Upstream Petroleum Inspectorate and the Downstream Petroleum Regulatory Agency Provides for Host
Community Fund ; Upholds in its entirety the Nigerian Oil and Gas Industry Content Development Act 2010
Split the NNPC into three entities; two incorporated, one not.
Introduces new fiscal framework for the oil and gas industry; NHC, CIT and Royalties
No mention of refining or refining operations other than in Section 220 (2)(b) which mentions that regulations may be made for these
operations. Meanwhile there is a refinery Bill in the senate.
Its outcome will determine the future of the Nigerian oil and gas industry , as well as the Nigerian workers. Most influential and important
legislation after the Nigerian constitution

13. Group One – Group Discussion
• Identify Stakeholders
• Introduction to the PIB case study
• Stakeholder Identification
• Exercise 1: Identify stakeholders needed for
the passage of the PIB 2012
• Explain the role of each Stakeholder
• Discussion

14. Group Two – Group Discussion
• Prioritise Stakeholders
• Stakeholder Prioritisation – Prioritise the
Stakeholders needed to pass the PIB 2012
• Exercise 2: The most important stakeholders
based on their roles and impact
• Discussion

15. Group Three – Group Discussion
• Engage stakeholders: building the relationship
• Stakeholder engagement towards the passage
of the PIB 2012
• Exercise 3: Define stakeholder support and
receptiveness

16. Let’s get to work.