Permanent secretary, Ministry of Petroleum Resources, Dr Sani Gwarzo, has called for effective implementation of the Petroleum Industry Act (PIA) to drive purposeful investment in the oil and gas sector.
Gwarzo made this known at the virtual Nigeria oil and Gas outlook 2021 with the theme “Achieving Energy Security; the Engine for Secured Economic Growth” on Monday.
“The Topic today, gives me the opportunity to talk about PIA and also to elaborate on other policies of the government of Nigeria that are aimed at attracting investments across the oil and gas value chain.
“The new law provides opportunity for purposeful investment into the development of oil and gas resources by providing clear and simple fiscal terms that would guarantee reasonable investors margin,” he said.
According to him, a central theme of the oil and gas sector is the importance of the PIA on public finances, oil and gas production, fiscal regime for international oil companies, transparency in the petroleum sector, among others.
“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,” he said.
He said the PIA aimed to incentivise optimality and ensure cost-efficiency and cost-effectiveness in oil production.
He noted that it would positively affect 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.
These measures, he said were in addition to industry-wide initiatives already rolled out by government, which focused on cost reduction and enablers in this regard.
“I am confident that Nigeria is on course in its alignment with the global quest to transit to cleaner energy for the sustainable future.
“Hence, in addition to producing liquid hydrocarbons, we are using our abundant gas resources as a bridge fuel between the fossil of today and the renewable energy of tomorrow.
“Thus, our National declaration of 2021 – 2030 as ‘Decade of Gas’ after the successful launching of National Gas Expansion Programme (NGEP) in 2020,” he said.
He further said Nigeria would continue to promote policies and investment cooperation with other countries and the global institution in various areas of the oil and gas industry.