The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, urged the consultant to the National Assembly on Petroleum Industry Reform Bill to make bold recommendations.
Baru said this in a statement issued by his Spokesman, Mr Ndu Ughamadu in Abuja.
Baru urged the consultant to take a comprehensive look at the oil and gas sector and be bold to effect changes to engender enduring reforms.
He said with the passage of the Petroleum Industry Governance Bill (PIGB), the National Assembly would now focus on the remaining two segments of fiscal terms and host communities.
Baru also urged the National Assembly to carry out extensive consultations to aggregate views and opinions of stakeholders to strike a balance that could attract investments and ensure adequate oil and gas revenue.
Speaking specifically on the fiscal terms, Baru said the major complaint by operators in the industry was multiple taxation.
This, he said, included statutory contributions to the Niger Delta Development Commission (NDDC), and Nigerian Content Development and Monitoring Board (NCDMB) as well as sundry expenses on security.
We have to be able to design a system that works.
If the three per cent, 13 per cent or any other statutory allocation for development is not working, then you should not be afraid to recommend a percentage that could work.
To replace the present system where operators pay multiple taxes and yet have to pay much more extra to secure their investments,” he said.
He explained that NNPC was interested in the segment of the PIB relating to the fiscal terms and was ready to spend considerable time and efforts to ensure the National Assembly got it right.
According to him, NNPC will work very closely with the consultants to arrive at models that can respond to future challenges in the industry.
Lead consultant, Mr Osteen Olorunsola, said their mission was to seek input to come up with a comprehensive and balanced report to guide the National Assembly in its legislative work with regards to the Bill.
The joint committee of the National Assembly passed the Bill in March after a conference report.
Source: Voice of Nigeria