Author: Adeoye Adefulu

Dr. Adeoye Adefulu is a Partner in Odujinrin & Adefulu’s Energy Practice Team. Adeoye holds a Ph.D from the Centre for Energy, Petroleum and Mineral Law & Policy, University of Dundee, where his research focused on oil and gas reform in Nigeria. He is consistently ranked as one of Nigeria’s leading energy lawyers and is widely regarded as an expert on the Petroleum Industry Bill. Adeoye has advised private companies on the impact of the Bill on their operations and has also advised members of the National Assembly on critical aspects of the Bill. He writes extensively and has given several presentations on energy reform, the Nigerian oil and gas industry and Nigeria’s electricity industry.
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Oil and Gas Industry Reforms to Commence Prior to the Passage of the PIB

The newly appointed Group Managing Director of NNPC, Dr. Ibe Kachikwu recently indicated that the reform of Nigeria’s oil and gas industry will start prior to the passage of the Petroleum Industry Bill.

We reported earlier this year that the House of Representatives passed the Bill in the 7th National Assembly, however, the Senate failed to pass the PIB and has not taken up the House version in its 8th Assembly. Indeed, the Senate Majority Leader, Ali Ndume, has been quoted as saying that the PIB was not a priority of this Senate.

The Buhari government is expected to make a number of changes to the Bill, particularly in relation to institutional reforms and the fiscal regime. The absence of a clear policy statement and indicative timelines from the government is, however, a cause for concern for investors.

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Collier – What the PIB gets right

The renowned Professor of Economics, Paul Collier writes in Businessday on what the PIB gets right. The focus of the short article is on the balance between taxes and royalties under the PIB, with Collier suggesting that the greater emphasis on royalties is better as it provides fewer opportunities for companies to disguise taxable profits. It should be noted that the current draft of the PIB does not indicate the royalty regime at all, but leaves it for the Minister to determine by regulations. Prof. Collier’s comments are likely to be based on the last exposure drafts of the proposed royalty regime. Nevertheless the article is worth reading for an understanding of the dynamics surrounding the royalty/tax debates in Nigeria’s petroleum fiscal reform initiatives.