Nigeria: Report on the pending petroleum industry bill

A report on the pending Petroleum Industry Bill (PIB) 2020

A report on the pending Petroleum Industry Bill (PIB) 2020

The Petroleum Industry Bill (PIB) 2020 reflects an attempt by the government to strike a balance between immediate revenue demands and the need to attract long-term investment for the petroleum industry.

The oil and gas industry has had a significant impact on Nigeria’s economy. Though the industry contributes less than 10% to the country’s gross domestic product, it contributes about 90% of the foreign exchange earnings and 60% of total income. Consequently, any change in the industry would affect government finances. This is the reason why successive governments have remained focused on the sector despite various discussions on diversifying the economy.

For the past 20 years, there have been various attempts at reforming the industry. However, none of these efforts yielded any tangible result until the introduction of the Petroleum Industry Bill (PIB) 2020.

Proponents believe the bill would contribute to a massive transformation of the industry and succeed in attracting the desired investment required to reposition the industry.

Read a June 2021 report [PDF 4.3 MB] prepared by the KPMG member firm in Nigeria

 

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