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.
Pedro Van Meurs on the PIB 2012
Mr. Pedro Van Meurs, an experienced consultant on petroleum matters has just released his commentary to the PIB 2012 which may be found here. Mr. Van Meurs was a consultant to the Inter-Agency Team which worked on a previous draft of the PIB between 2008-2010.
Vince Cable – PIB should focus on what helps Nigeria
The Washington Post reports the comments of the British Business Secretary, Vince Cable, on the Petroleum Industry Bill at a business roundtable held on Monday, 10th of October in Lagos. His comments appear to contrast with those of UK diplomats reported in the Leadership.
The Petroleum Industry Bill & North – South Politics
The Osun Defender highlights the geopolitical dynamics in the National Assembly regarding the passage of the Petroleum Industry Bill.
Shell faults new Petroleum Industry Bill
See Thisday’s report on Shell MD, Mutiu Sunmonu’s comments on the Petroleum Industry Bill 2012.
The Extent of Ministerial Powers under the Petroleum Industry Bill 2012
Feature article
All I want is a warm bed and a kind word and unlimited power.
Ashleigh Brilliant
The phrases, “the Minister may”, “as may be decided or imposed by the Minister” “the Minister shall have the right” are phrases commonly sighted in the Petroleum Act 1969, the principal legislation currently governing the Nigerian petroleum industry as well as subsequent industry legislations. These Ministerial powers cover a multitude of issues ranging from power to grant upstream and downstream petroleum licences, prescribe terms and conditions of licences, control pricing of petroleum products, declare national emergency,[1] order discretionary suspension of petroleum operations and make regulations, to mention a few. These provisions have resulted in the vesting of a huge amount of power in a single office with almost unfettered powers to direct the affairs of this very sensitive industry. The product has been an industry with a record of abuse of power, lack of transparency and accountability and ineffective regulatory oversight, resulting in little or no benefit being derived by the citizenry. Continue reading “The Extent of Ministerial Powers under the Petroleum Industry Bill 2012”
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.
Petroleum Mining Lease QRT
The QRTs below compare the critical terms of the PML under the Petroleum Industry Bill with the current OML regime.
Petroleum Prospecting Licences QRT
The QRTs below compare the critical terms of the PPL under the Petroleum Industry Bill with the current OPL regime.
