His Excellency, President Muhammadu Buhari, GCFR, today, 16 August 2021, signed the Petroleum Industry Bill (PIB), 2021 into law, following its passage by the National Assembly in July 2021.

According to the Special Adviser to the President, Mr. Femi Adesina, the ceremonial aspect of the assent of the Petroleum Industry Act, 2021 (“the Act”) will be concluded during the week, after the President’s mandatory isolation upon returning from the United Kingdom.

Comments

We commend the National Assembly and Executive for the passage of the Act after two decades of unsuccessful attempts.

The Act provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters. It repeals the following Acts:

  1. Associated Gas Reinjection Act, 1979 CAP A25 Laws of the Federation (LFN) 2004, and its amendments;
  2. Hydrocarbon Oil Refineries Act No. 17 of 1965, CAP H5 LFN 2004;
  3. Motor Spirits (Returns) Act, CAP M20 LFN 2004;
  4. Nigerian National Petroleum Corporation (Projects) Act No. 94 of 1993, CAP N124 LFN 2004;
  5. Nigerian National Petroleum Corporation Act (NNPC) 1977 No, 33 CAP N123 LFN as amended, when NNPC ceases to exist pursuant to section 54(3) of this Act;
  6. Petroleum Products Pricing Regulatory Agency (Establishment) Act 2003;
  7. Petroleum Equalisation Fund (Management Board etc.) Act No. 9 of 1975, CAP P11 LFN 2004;
  8. Petroleum Equalisation Fund (Management Board, etc.) Act, 1975;
  9. Petroleum Profit Tax Act Cap P13 LFN 2004, (PPTA); and
  10. Deep Offshore and Inland Basin Production Sharing Contract Act (DOIBPSCA), 1993 CAP D3, LFN 2004 and its 2019 amendment.

However, there are transitional and savings provisions in the Act to deal with cases of licensees that may not want to convert.  Consequently, the extant laws, such as the PPTA and the DOIBPSA, will continue to apply until such leases have expired and/ or renewed under the Act.

Please click here to read our publication on the enacted PIB.

For further enquiries, please contact

Wole Obayomi

ng-fmtaxenquiries@ng.kpmg.com