Lagos, Oct. 12, 2023: The Nigerian Gas Association (NGA) has called for an immediate review of the Petroleum Industry Act (PIA) to address impediments hindering investment and ease of doing business in the industry.
Mr Akachukwu Nwokedi, President, NGA, made the call during a news conference on Wednesday 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.
According to him, 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 NGA suggests that allowing payments in Naira equivalent would help alleviate pressure on the Nigerian currency, especially in this period of extreme FX fluctuations.
“The need to develop Commercial & Fiscal terms for Gas development (offshore and deepwater), to propel competitive investment.
“There is also the need to review the Fiscal Incentives and develop Commercial & Fiscal terms for Gas development (offshore, deepwater and across the value chain), to propel competitive investment.
“This will boost and sustain gas supply to meet the nation’s needs,” he added.
Nwokedi noted 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.
He said that the NGA’s commitment over the next two years is aimed towards advocate for its members and the entire industry, promoting new investments and supporting the transition to cleaner energy sources.
He said NGA will actively participate in and coordinate the DoG initiatives, ensuring their successful and speedy implementation.
He added that NGA will deliver industry events and training on gas-specific and broader energy sector topics to enhance the knowledge and skills of industry professionals.
Nwokedi said: “NGA will foster improved communication between the association and its members through an integrated online membership ecosystem.
“The association will engage in technical roundtables and other initiatives to enhance communication on industry governance and safety standards.
“NGA will fully implement a resource centre, providing credible data and information about the Nigerian gas industry.
“We will launch an annual training programme for energy editors to ensure accurate reporting and knowledge dissemination within the sector,” he said.
Nwokedi noted that the parley’s objective was to inform about industry issues and solutions while establishing strong partnerships with the media.
By working together, the NGA and the media aim to ensure accountability and disciplined delivery of proposed initiatives, unlocking Nigeria’s potential to become a gas economic powerhouse.