The Nigerian parliament which comprises of the House of Representatives and the Senate would be holding public hearings on the following bills in the coming days;
(i) Petroleum Industry Fiscal Bill 2018,
(ii) Petroleum Industry Administration Bill 2018 and the
(iii) Petroleum Host and Impacted Communities Development Bill 2018.
Considering the fiscal regime has been a source of great debate in the previous versions of the Petroleum Industry Bill, this briefing note provides highlights and key provisions of the Petroleum Industry Fiscal Bill (the “Bill” or “PIFB”) and our remarks on the new introductions of the Bill.
The objective of the Bill is to establish a progressive fiscal framework that encourages substantial and progressive investment in the petroleum industry by balancing rewards with risk and enhancing revenues of the Federal Government of Nigeria while ensuring a fair return for the investors. Also, the Bill seeks to provide a clear distinction between legislative aspects of the fiscal regime and negotiable aspects of contractual obligation.
We have examined the provisions of the Bill in no order but on the basis of provisions we consider key and important with the potential of altering the fiscal position of exploration and production companies.