Effective implementation of PIA to stimulate investment – Gwarzo

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The Permanent Secretary of the Ministry of Petroleum Resources, Dr Sani Gwarzo, called for effective implementation of the Petroleum Industry Law (PIA) to stimulate targeted investments in the oil and gas sector.

Gwarzo made this known at the Nigeria Oil and Gas Outlook 2021 Virtual Conference with the theme “Achieving Energy Security; the engine of secure economic growth ”, Monday.
“Today’s topic gives me the opportunity to talk about PIA and also to develop other Nigerian government policies that aim to attract investment in the oil and gas value chain.

“The new law offers the possibility of investing in a targeted manner in the development of oil and gas resources by providing clear and simple tax conditions which would guarantee a reasonable margin to investors,” 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, the tax regime of international oil companies, transparency in the oil sector, among others.

“We couldn’t agree more. Effective implementation is at the heart of this law and remains the route through which value will be released in the Nigerian economy, ”he said.
He said the PIA aims to encourage optimality and ensure the profitability and profitability of oil production.

He noted that this would positively affect various levers such as cost-price ratio, replacing investment tax allowances and investment tax credits (which encourage gilding) with production allowances.

These measures, he said, were in addition to industry-wide initiatives already implemented by the government, which focused on cost reduction and enablers in this regard.
“I have no doubts that Nigeria is on the right track in aligning itself with the global quest to transit towards cleaner energy for a sustainable future.

“Thus, in addition to producing liquid hydrocarbons, we use our abundant gas resources as a bridge fuel between the fossil fuels of today and the renewable energies of tomorrow.
“So our national declaration of 2021-2030 as ‘Gas Decade’ after the successful launch of the National Gas Expansion Program (NGEP) in 2020,” he said.

He further stated that Nigeria will continue to promote investment policies and cooperation with other countries and the global institution in various fields of the oil and gas industry.


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