By Etuka Sunday
Nigeria Natural Resource Charter (NNRC) has said that the passage of Petroleum Industry Bill (PIB) would address the issues of loss and multiple taxation in the Oil and Gas Industry.
NNRC said, the $150billion aggregate loss recorded in the sector in 10 years would have been averted with the passage of the PIB.
Recall, to ease the passage, NASS split the PIB into four legislation: Petroleum Industry Governance Bill (PIGB), Petroleum Host and Impacted Community Development Bill (PHCDB), Petroleum Industry Fiscal Bill (PIFB) and Petroleum Industry Administrative Bill (PIAB).
Speaking at the Media Training on PIB organised for Energy Correspondents in Abuja, experts expressed optimism that the Petroleum Industry Administrative Bill (PIAB) would ensure that oil well licences are issued through transparent bidding process.
Dr. Adeoye Adefulu while speaking on the review of the PIAB said, absence of driven price determination for petroleum products, creates opportunity for welfare loss and rent seeking, distorting incentives for fair market development.
Adefulu said, PIAB would bring clarity to the management of Nigeria’s petroleum resources, removes arbitrariness and discretion, and delivers an open market structure especially for the mid and down streams.
The Program Coordinator, NNRC, Tengi George-Ikoli while speaking on Petroleum Sector Reforms said, government should encourage efficient exploration and production operations, and allocate rights transparently.
She said, tax regimes and contractual terms should enable the government to realise the full value of its resources consistent with attracting necessary investment, and should be robust to changing circumstances.
NNRC Coordinator, said, the government should pursue opportunities for local benefits, and account for, mitigate and offset the environmental and social costs of resources extraction projects.
She said, nationally owned companies should be accountable, with well-defined mandates and an objective of commercial efficiency.
Overall, the PIAB would be of benefit to the Federal Government since it would encourage and promote investment.
Apart from the fact that it would optimise its value addition to the economy from petroleum operations, it would create effective and efficient one regulatory stop shop for the federal government.
For the investors, the Bill will not only ensure level playing field, it would ensure balance sharing of risks and rewards.