By Folake Ogunleye
The Petroleum Technology Association Of Nigeria (PETAN) has asked for the formation of an inter- agency committee on import duties and multiple taxation as it affects stakeholders.
Speaking at the PETAN Award dinner held in Lagos at the weekend, Chairman, PETAN, Mr Bank-Anthony Okoroafor said such policies had to do with import duties on equipment ownership and policies of withholding tax and multiple taxation.
Okoroafor who said the keys to unlocking huge opportunities in the indigenous oil service industry are capacity building, capitalization, and collaboration said “without industrial activity in the nation’s oil and gas sector, there will be no jobs for the service companies, no revenue to government, no employment opportunities and no empowerment of our people”.
Speaking further, he said much emphasis has been made on gas policy and this will give opportunities to people to explore for gas and also there is more emphasis on building gas infrastructure and nice fiscal terms to attract investors.
Analysts have said Nigeria’s recently approved gas policy has created an opportunity for the development of domestic liquefied natural gas (LNG) investments which can help unlock billions of naira in revenue for Africa’s largest economy helping it deepen the sector.
The policy seeks to set up a single independent petroleum regulator while It also aims to separate upstream from midstream operations and to separate gas infrastructure ownership and operations from gas trading, the oil ministry said.
The policy will also divide the Nigerian Gas Company into separate transport and gas marketing companies and introduce “market-led wholesale gas pricing” after a transitional period.
According to them, it clearly defines the boundaries between upstream, midstream and downstream sectors, as well as opens good access for investment in midstream assets (processing facilities and transmission systems) which will also be governed by a network code where producers can process and transport their gas to the market across the country.
He also said that an appropriate pricing structure, guarantees for payment, enabling fiscal regimes, host communities engagement, and conducive environment were some of the other enablers for investors to take advantage of the $51 billion gas opportunities.
“Beyond growing gas for the power sector, there has been a strategic positioning of the sector to support massive gas-based industrialisation. The intent is to position Nigeria as the regional hub for gas-based industries such as fertiliser, methanol, petrochemicals, and central processing facilities,
“The first of this effort is the planned 30 square kilometre gas-based industrial park in Delta State. This will be Africa’s largest purpose-built gas park supporting gas-based industries,” they stated.
“As you can see we have a pragmatic roadmap for gas supply development growth to achieve our aspiration of growing current power generation capacity by at least a 3-fold increase within the next four years, position Nigeria as the African regional hub for gas-based industries and maintaining a 10 per cent market share in global LNG trade with dominance in regional gas pipeline supplies.”