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.

PIB: The Government is not your Nanny

Toyin Akinosho of Africa Oil and Gas Report highlights critical differences between the current fiscal regime and the proposed fiscal regime under the Petroleum Industry Bill. He suggests that the proposed terms will be more onerous and will not encourage capital projects by small and large investors.

PIB Dead on Arrival?

Clara Nwachukwu of the Vanguard in the above titled article highlights some of the hidden tensions surrounding the passage of the PIB. In particular it suggests that the version of the Bill signed by the Minister includes significant changes from that submitted by the PIB Technical Committee.

Upstream Licences Quick Reference Tables (QRT)

The Petroleum Industry Bill proposes changes to upstream licence framework. To replace the Oil Exploration Licence (“OEL”), the Oil Prospecting Licence (“OPL”) & the Oil Mining Lease (“OML”), the Bill establishes the Petroleum Exploration Licence (“PEL”), the Petroleum Prospecting Licence (“PPL”) & the Petroleum Mining Lease (“PML”). The changes are not just in the nomenclature, the new regime includes a number of significant differences to the old structure. Our QRTs will show you those differences in an easily accessible format.