By Patience Chat Moses
The Nigerian Gas Association (NGA) has called for an immediate and critical review of the Petroleum Industry Act (PIA) after wide stakeholder engagement and consultation to address impediments hindering investment and ease of doing business.
The President of the Association,Akachukwu Nwokedi, made the call during a media parley with Energy Correspondents in Lagos.
Akachukwu acknowledged PIA’s enactment in 2021 as a welcome development that provides regulatory clarity for the petroleum sector and specific provisions for the gas industry.
He also commended the fiscal aspects of the law for its potential to transform the gas sector.
Nwokedi emphasised the need for a swift review of the PIA to address gaps currently hindering the gas sector’s growth.
The NGA President expressed concerns over the multiplicity of taxation within the PIA.He noted that such taxation requirements increase the cost of doing business and, in some cases, result in higher end-user gas prices, reducing the attractiveness and rapid adoption of natural gas.
Another critical issue is the requirement to pay royalties, fees, penalties, licenses, and permits in US Dollars without providing a Naira payment option.
While the oil and gas industry is internationally denominated in dollars, the Association suggested that allowing payments in Naira equivalent would help alleviate pressure on the Nigerian currency, especially in this period of extreme FX fluctuations.
There is also the need to review the Fiscal Incentives and develop Commercial and Fiscal terms for Gas development, to propel competitive investment.
He emphasized the crucial role the NGA plays in advocating for the Nigerian gas industry, promoting new investments, protecting industry interests, and facilitating a just energy transition.