Nigeria may get $1.5bn as Senate amends PSC Act.


October 16, 2019

Sunday Aborisade,  Abuja

The Senate on Tuesday unanimously passed a  bill  amending  the Offshore and Inland Basin Production Sharing Contract Act 2014.
The President of the Senate, Ahmad Lawan,   said the bill which had amended the PSC Act was not meant to discourage investment.
He  said Nigeria would be at least $1.5bn richer in 2020 as a result of the amended bill.

The lawmaker said, “We expect that they (international oil companies) will continue to do business in Nigeria with this new legislation.

“When we do legislation in the National Assembly, we will always be mindful of the need to have a competitive environment just like we have done.

“We have done what could not be done  since   2003. So today marks a milestone in the life of this Senate in particular and the National Assembly in general.
 “By passing the bill Nigeria will be at least $1.5bn richer in 2020.

“Our committees, together with the NNPC, worked together till 5am this morning to put together this report.

“We also received an executive communication from the sponsors here, Akpan Albert and Ifeanyi Uba, who co-sponsored (the bill).”

The  Senate   had  discovered that the IOCs had failed to remit the  sum of   N7tn  ($21bn) to the Federal Government  in the last 26 years based on  non-implementation of the  PSC Act.

Oil firms like Chevron, Exxon Mobil, Shell and South Atlantic Petroleum came into fore during debate on the motion sponsored to that effect by Ubah.

Ubah in the motion co-sponsored by 27 other senators, informed the Senate that  the salient  provisions of the contractual agreements between Nigeria and the affected oil firms had not been adhered to by parties concerned.