The Nigerian Gas Association (NGA) is urging for an urgent and thorough review of the Petroleum Industry Act (PIA) following extensive engagement and consultation with stakeholders. The President of the NGA, Akachukwu Nwokedi, made this call during a media briefing with Energy Correspondents in Lagos, Nigeria, on September 11, 2023. While acknowledging the positive aspects of the PIA, such as regulatory clarity and provisions for the gas industry, Nwokedi emphasized the need to swiftly address the gaps that are impeding the growth of the gas sector.
Several key issues hindering the gas sector’s progress were highlighted by NGA members. First and foremost, there is a major concern over the multiplicity of taxation within the PIA(as seen in various parts of the Act such as sections 260, 267, 297, 302 etc) which increases the cost of doing business and leads to higher end-user gas prices, hampering the wider adoption of natural gas.
Furthermore, there is also a requirement to pay royalties, fees, penalties, and permits in US Dollars without providing a Naira payment option , on this note , the NGA suggests that allowing payments in Naira equivalent would alleviate pressure on the Nigerian currency, especially during periods of extreme foreign exchange fluctuations.
Lastly, there is a need to develop commercial and fiscal terms for gas development, particularly in offshore and deep-water areas, to attract competitive investment and ensure a sustainable gas supply to meet the nation’s needs.The NGA, as the leading advocate for the gas sector of the power industry, is committed to supporting its members, promoting new investments, protecting industry interests, and facilitating a just energy transition. Over the next two years, the NGA has outlined strategic areas of focus, which include increased advocacy efforts, active participation in and coordination of the Decade of Gas (DoG) initiatives, capacity building through industry events and training, enhanced communication with members through an integrated online membership ecosystem, engagement in technical roundtables to improve industry governance and safety standards, establishment of a Gas Industry Resource Centre to provide credible data and information, launching an annual training program for energy editors, global advocacy and investment promotion, promoting greater Nigerian involvement in the gas sector, driving diversity, equity, and inclusion initiatives, and relaunching the NGA Advisory Group to consolidate industry views and expertise.
Nwokedi emphasized that the objective of the media briefing was to raise awareness about industry issues and proposed solutions, as well as to establish strong partnerships with the media. By working together, the NGA and the media aim to ensure accountability and the successful implementation of the proposed initiatives, thereby unlocking Nigeria’s potential to become a powerhouse in the gas economy.