The Lagos Chamber of Commerce and Industry (LCCI) has urged the National Assembly to ensure the passage of the Petroleum Industry Bill (PIB). Mr Muda Yusuf, Director General of the LCCI made this known in a statement issued on Sunday:
”The Lagos Chamber equally urged the national assembly to put in place a law that will promote a more effective and efficient governance, administration, host community development and fiscal framework for the petroleum industry.
“A competitive bill will help preserve the integrity of the existing projects, whilst also encouraging future growth of production, and make Nigeria an investment destination of choice.”
Yusuf stated that the major aim of the PIB includes reforming the institutional and fiscal framework, and developing Nigeria’s gas sector. According to him, the PIB was aimed at creating a framework to support the development of host communities as well as bringing in noteworthy investments to better improve the country’s production capacity.
The DG further noted that there were six primary areas that the drafters of the PIB should look into so as to ensure that the objectives of the bill are realized. They include preservation of base business and rights; granting new Deepwater oil projects a full royalty relief during the first five years of production; identifying Hydro Carbon Tax; segregation of Upstream and Midstream deemed assets; harmonisation of tax practices, and ensuring capital allowance and allowable deductions which are consistent with existing tax legislations and CITA.
Yusuf also maintained that the PIB should exempt existing export gas supply contracts and obligations, as well as make the administrative burden of compliance less cumbersome, while minimising ambiguity and the extent of overlapping regulation.