As Nigeria turns 61, some stakeholders in the oil and gas industry say effective implementation of the Petroleum Industry Act (PIA) 2021 will accelerate repositioning of the sector for national development.
The stakeholders made the assertion in separate interviews with the News Agency of Nigeria (NAN) in Lagos.
“It contributes over 90 per cent of our foreign exchange earnings and over 50 per cent of revenue”
According to the stakeholders, the sector needs to be repositioned because it contributes only about 10 per cent to Nigeria’s Gross Domestic Product (GDP) despite being the mainstay of the country’s economy and enabler of its economic activities.
The federal government had set up an implementation committee for the PIA which was signed by President Muhammadu Buhari on Aug. 16.
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.
Its effective implementation on public finances, oil and gas production and fiscal regime for international oil companies will improve transparency and add value to the petroleum sector.
National president, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Chinedu Okoronkwo, said the oil and gas sector and the country lost a lot of revenue due to the delay in the passage of the PIA.
Okoronkwo said: “We, as stakeholders in the oil and gas industry, must commend President Muhammadu Buhari for breaking this jinx holding down the sector by signing the PIA. Now that the PIA is here, we must now put our efforts towards its effective implementation because we need to maximise our oil and gas resources as the world transits to cleaner sources of energy.”
Founder, Centre for the Promotion of Private Enterprise (CPPE), Also, Mr Muda Yusuf, said the oil and gas sector was strategic to the Nigerian economy.
“It contributes over 90 per cent of our foreign exchange earnings and over 50 per cent of revenue. This accounts for the vulnerability of the Nigerian economy to oil price and output shocks. Although, because of the weak domestic linkages of the sector, its contribution to GDP is just about 10 per cent. This poor linkage is also reflected in the employment generation in the sector.
“Hopefully, with the coming into effect of the PIA, some of the shortcomings around regulation and policy would be addressed,” Yusuf, a former director general of the Lagos Chamber of Commerce and Industry said.
SOURCE: nationaleconomy.com