Dr Nasir Sani- Gwarzo, Permanent Secretary, Ministry of Petroleum Resources,
says the effective implementation of the Petroleum Industry Act ( PIA) was pivotal to its value addition to the Nigerian economy.
The News Agency of Nigeria ( NAN) reports that Sani-Gwarzo stated this at the Nigeria Oil and Gas Outlook with the theme: ‘Achieving Energy Security: The Engine for Secured Economic Growth’, on Monday, in Lagos.
Sani-Gwarzo noted that the signing of the PIA by President Muhammadu Buhari on Aug. 16 was aimed at attracting investments to the industry.
He added: ” The new law provides opportunity for purposeful investment in the development of oil and gas resources, by providing clear and simple fiscal terms that would guarantee reasonable investors margin.
“One central theme that runs through the Nigeria oil and gas sector today is the importance of implementation of the PIA on public finances, oil and gas production, fiscal regime for international oil companies, transparency in the petroleum sector and indeed the entire sections of the proposed law.
“We couldn’t agree more. Effective implementation is at the heart of this Act and remains the route through which value will be unlocked into the Nigerian economy.”
According to him, the PIA seeks to incentivise optimality cost-efficiency and cost-effectiveness in oil production.
“Different levers such as the cost-price ratio, the replacement of the investment tax allowances and investment tax credits, which encourage gold plating, with production allowances which reward incremental production have been instituted.
“These measures are in addition to industry-wide initiatives already rolled out by government which focus on cost reduction and enablers in this regard,” Sani-Gwarzo said.
He expressed confidence that Nigeria was on course in its alignment with the global quest to transit to cleaner energy for the sustainable future, using its abundant gas resources as a bridge fuel between the fossils of today and the renewable energy of tomorrow.
“Thus, our National declaration of 2021 – 2030 as “Decade of Gas”, after the successful launching of the National Gas Expansion Programme (NGEP) in 2020.
“Furthermore, Nigeria will continue to promote policies and investment cooperation with other countries and global institutions in various areas of the oil and gas industry.” (NAN)