On 29 December 2017, the Nigerian President signed into law the Niger-Delta Development Commission (Establishment)(Amendment) Act (“Amendment Act”). The Amendment Act amends the provisions of Section 14(2)(b) of the Niger-Delta Development Commission (Establishment, etc) Act (the “Principal Act”) as follows:

“There shall be paid and credited to the fund established pursuant to subsection (1) of this section –

                (b) 3 per cent of:

(i) the total annual budget of any oil producing company operating onshore and offshore, in the Nigeria Delta area; and;

(ii) the total annual budget of any gas processing company in the Niger Delta area, excluding the cost of feed gas.”

Our thoughts:

The Amendment Act seem to clarify the applicability of NDDC levy to gas processing companies operating only in the Niger Delta as opposed to the erstwhile provisions of the Principal Act which only mentioned “gas-processing” companies without more. However, we believe the following issues are yet to be addressed:

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