While most people were focusing on the medium by which the “offshore bill” was signed, and faulting the need for Abba Kyari to fly a chartered jet, the cause to rejoice was lost on most Nigerians.

President Buhari has told the world that “Nigeria will now receive its fair, rightful and equitable share of income from our own natural resources for the first time since 2003.”

The benefits to Nigeria in the amended bill include higher revenues and having a greater say in the maximization of our natural resources. The high points of this amendment include:

A 10% flat rate on all offshore sites exceeding 200m water depth prevents the confusions that emanate from the cumbersome measuring process fraught with deceit and corruption.

A 7.5% rate for locations closer to the shore, also known as Frontier/Inland basins.

There is a graduated increment in tax to be paid when crude oil price rise to ensure that all parties are profiting equally as against the flat taxation of all increments above $20.

There is also a periodic review every 5 years to ensure that we do not fall into the same trap of needing to constantly review the entire bill just to ensure we are being paid what is due us as a nation.

Apart from assigning responsibilities and sanctions for subsequent reviews, the major highlight of the amendment is that all Production Sharing Contracts will now attract royalty based on a combination of water depth and oil price.

In conclusion, President Buhari stated; “for the first time under our amended law, 200 million Nigerians will start to receive a fair return on the surfeit of resources of our lands. Increased income will allow for new hospitals, schools, infrastructure, and jobs.
“Today marks a new and beneficial relationship with our oil company partners: one that benefits all – starting with the Nigerian people,”

Back to Kyari and the estimated $140,000 cost of the trip, would it be wise to recall that the President, during the 2020 budget presentation to the National Assembly noted that the amendment of DOIBPSCA is one of the priorities of the Federal Government of Nigeria (FGN), as it has the capacity to generate additional revenue of at least $500million which will aid FGN in achieving the proposed 2020 budgeted revenue?

Would it also amount to a good move if there are currently vibes in the OPEC corridor of a slump in oil prices and the government had to expressly position itself in good stead to forestall huge economic losses? Things to ponder.

The signing of the bill follows Senate President Ahmad Lawan’s announcement last week that the Petroleum Industry Bill would also be passed before the end of 2020.

“Our petroleum industry is almost stagnant; it has long needed profound reform. Our oil and gas-related committees are therefore expected to work hard to take the lead in our determination to reform this vital sector,” said Lawan.

Hopefully, by the turn of the year, Nigerians would begin to profit from these actions of the government in ensuring a stronger economy for the nation.

When other countries are thinking post oil smh

Thanks op. Sometimes, one wonders if it is bubu who has no certificate or those who reason like they haven't got certificate.

Omoodua007:
When other countries are thinking post oil smh

So, because we need to start thinking post oil, we should not maximize benefits from crude oil now that it is still profitable?

seunmsg:


So, because we need to start thinking post oil, we should not maximize benefits from crude oil now that it is still profitable?

May we Dey max they go
See as Nigeria don spoil finish
Tbh I wish we could all go our separate ways

Can never rejoice over any news again.....till i start feeling the impact.....or I see it benefit the common man