Nigeria looks set to unbundle a long-awaited oil law to speed up its passage through Parliament, potentially unlocking billions of dollars in frozen investments.

The Petroleum Industry Bill has been gathering dust since 2008 because of disagreements between the government and global oil majors over its terms.

The new head of the Nigerian National Petroleum Corporation Emmanuel Kachikwu, who is likely to become junior oil minister, said recently the delay was hurting the economy.

“The average source of volumes in investments that we are losing on an annual basis because of the lack of PIB is in excess of $15 billion (13.7 billion euros),” he told senators.

“The non-passage of the Bill in whatever form over the years has created a level of uncertainty that no international investor wants to grapple with.”

BILL'S ECONOMIC EFFECT

Parliament needs to “find a way of working with us and go ahead and pass those elements of the Bill where there’s not much contention”, he added.

Analysts believe the Bill would help redefine the fiscal terms in the oil and gas industry, increase Nigeria’s share of revenue and also help restructure the state-run firm.

Kachikwu, a former ExxonMobil executive, was appointed in August as part of President Muhammadu Buhari’s drive to overhaul the company and cut down on corruption.

The Bill as proposed would see international oil companies pay 10 per cent of their net profits to a “Petroleum Host Community Fund” to benefit oil- and gas-producing areas.