Nigeria Petroleum Bill

Nigeria’s Petroleum Industry Bill

 

The The Petroleum Industry Bill of 2012 (PIB) provides a legal, fiscal and regulatory framework for the Nigerian petroleum industry. In July of last year, the PIB was forwarded to the National Assembly for consideration and passage into law.  of 2012 (PIB) provides a legal, fiscal and regulatory framework for the Nigerian petroleum industry. In July of last year, the PIB was forwarded to the National Assembly for consideration and passage into law.  The Bill proposes several solutions to some of the most pressing challenges facing the Nigerian Petroleum Industry, and represents a massive piece of sector reform.

For a good few years, Nigeria has been almost entirely reliant on their oil sector, with the industry accounting for a large percentage of the country’s GDP and total earnings.

One of the major objectives of the PIB is to establish a progressive fiscal framework that will encourage further investment in the petroleum industry while optimising revenues accruing to the Government. The Bill seeks to achieve the objective by revising the fiscal regime in the petroleum industry. However, it remains to be seen if the revised fiscal regime will encourage further investment in the industry.

Key objectives outlined by the PIB:

  • The establishment of accountability and transparency
  • Creation of an attractive environment for investment
  • Establishment of an adaptable and competitive fiscal framework
  • Encourage exploration and utilization of Nigeria’s petroleum resources
  • Improve gas supply for both domestic use and to further industrialization aims
  • Improve efficiency and effectiveness of regulatory institutions

Critical review of PIB required

It is conceded that the version of the PIB that will be eventually passed into law may be different from the current version submitted to the National Assembly.

Companies engaged in upstream petroleum operations and other stakeholders in the Nigerian oil and gas industry, will be well-advised to critically review (and simulate) the impact the PIB will have on their operations if enacted in its current form. This is necessary to ensure that crucial issues are raised and addressed before the Bill is passed by the National Assembly and signed into law by the President.

KPMG Nigeria has outlined key fiscal provisions of the Bill and their implications in the download available below.

Download

 

About Femi Oke

Relentless passion for creativity and digital acumen to help a professional services firm thrive in the digital space. Femi is an individual with a rich experience on regional African knowledge, its diverse business culture and he understands the continent’s economic drive. He thrives on selfless service and lasting mutually beneficial relationships with colleagues and especially clients encountered in the course of his duties. He is creative, practical and self-motivated with business judgement in corporate, brand and strategic communications, social, digital & traditional media and executive profiling. Roles in the firm include New Media, Digital Communication, Corporate Communication, executive profiling and Brand Management execution. Working on the multi-million dollar Africa high growth market project stands out for femi; besides this, managing all KPMG’s digital communication for the World Economic Forum on Africa is another project that gives him great delight. Femi holds a Masters Degree in Global Marketing from the University of Liverpool.

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