Mohammed Shosanya
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 in order to address impediments hindering investment and ease of doing business.
The President of the Association, Akachukwu Nwokedi, who made the call during a media parley with Energy Correspondents in Lagos, 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.
He emphasized the need for a swift review of the PIA to address gaps currently hindering the gas sector’s growth.
He expressed concerns over the multiplicity of taxation within the Petroleum Industry Act.
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.
He lamented the requirement to pay royalties, fees, penalties, licenses, and permits in US Dollars without providing a Naira payment option.
He added:”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 foreign exchange fluctuations.
He emphasized 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 and fiscal terms for gas development (offshore, deepwater and across the value chain), to propel competitive investment.
He explained that this will boost and sustain gas supply to meet the nation’s needs.
Aka Nwokedi 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.
He said the NGA aims to advocate for its members and the entire industry, promoting new investments and supporting the transition to cleaner energy sources in two years
It will actively participate in and coordinate the DoG initiatives, ensuring their successful and speedy implementation as well as deliver industry events and training on gas-specific and broader energy sector topics to enhance the knowledge and skills of industry professionals, he said.
According to him, the NGA will foster improved communication between the association and its members through an integrated online membership ecosystem and engage in technical roundtables and other initiatives to enhance communication on industry governance and safety standards.
He hinted that the body will fully implement a resource centre providing credible data and information about the Nigerian gas industry.
The NGA will launch an annual training program for energy editors to ensure accurate reporting and knowledge dissemination within the sector.
He said the body will advocate for and promote investment opportunities within the Nigerian gas industry globally, leveraging its membership in the International Gas Union (IGU) and continue to promote greater Nigerian involvement in the gas sector across the entire value chain.
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.