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NGA Calls for PIA Review to Address Urgent Gas Sector Challenges


Lagos Nigeria — The Nigerian Gas Association (NGA) has called for an immediate and critical review of the Petroleum Industry Act (PIA) after wide stakeholder engagement and consultation to address impediments hindering investment and ease of doing business.

The President of the Association, Akachukwu Nwokedi, made the call during a media parley with Energy Correspondents on Wednesday, September 11, 2023, in Lagos, Nigeria. Akachukwu acknowledged PIA’s enactment in 2021 as a welcome development that provides regulatory clarity for the petroleum sector and specific provisions for the gas industry.

He also commended the fiscal aspects of the law for its potential to transform the gas sector.

However, Nwokedi emphasized the need for a swift review of the PIA to address gaps currently hindering the gas sector’s growth. These issues, as highlighted by NGA members, include:

1. Multiplicity of Taxation: The NGA President expressed concerns over the multiplicity of taxation within the PIA. He noted that such taxation requirements increase the cost of doing business and, in some cases, result in higher end-user gas prices, reducing the attractiveness and rapid adoption of natural gas.

2. Payment in US Dollars: Another critical issue is the requirement to pay royalties, fees, penalties, licenses, and permits in US Dollars without providing a Naira payment option. While the oil and gas industry is internationally denominated in dollars, the NGA suggests that allowing payments in Naira equivalent would help alleviate pressure on the Nigerian currency, especially in this period of extreme FX fluctuations.

3. Fiscal Incentives: The need to develop Commercial & Fiscal terms for Gas development (offshore and deepwater), to propel competitive investment. There is also the need to review the Fiscal Incentives and develop Commercial & Fiscal terms for Gas development (offshore, deepwater and across the value chain), to propel competitive investment. This will boost and sustain gas supply to meet the nation’s needs.

Aka Nwokedi emphasized the crucial role the NGA plays in advocating for the Nigerian gas industry, promoting new investments, protecting industry interests, and facilitating a just energy transition. The NGA’s commitment over the next two years includes the following strategic focus areas:

– Increased Advocacy: The NGA aims to advocate for its members and the entire industry, promoting new investments and supporting the transition to cleaner energy sources.

– Supporting Decade of Gas (DoG) Implementation: The NGA will actively participate in and coordinate the DoG initiatives, ensuring their successful and speedy implementation.

– Capacity Building: The NGA will deliver industry events and training on gas-specific and broader energy sector topics to enhance the knowledge and skills of industry professionals.

– Enhancing Industry Communication: NGA will foster improved communication between the association and its members through an integrated online membership ecosystem.

– Industry Governance and Safety Standards: The NGA will engage in technical roundtables and other initiatives to enhance communication on industry governance and safety standards.

– Gas Industry Resource Centre: The NGA will fully implement a resource centre providing credible data and information about the Nigerian gas industry.

– Annual Training for Energy Editors: The NGA will launch an annual training program for energy editors to ensure accurate reporting and knowledge dissemination within the sector.

 Global Advocacy and Investment Promotion: The NGA will advocate for and promote investment opportunities within the Nigerian gas industry globally, leveraging its membership in the International Gas Union (IGU).

– Increased Participation of Nigerians: The association will continue to promote greater Nigerian involvement in the gas sector across the entire value chain.

 Diversity, Equity, and Inclusion (DEI): The NGA will drive the implementation of DEI initiatives among its members, promoting a more inclusive gas and energy sector.

Relaunching of the NGA Advisory Group: The NGA will consolidate industry views, expertise and experience to enhance the strategic focus of the Association and energy sector

Nwokedi noted that the parley’s objective was to inform about industry issues and solutions while establishing strong partnerships with the media. By working together, the NGA and the media aim to ensure accountability and disciplined delivery of proposed initiatives, unlocking Nigeria’s potential to become a gas economic powerhouse.

About the Nigerian Gas Association (NGA)

The Nigerian Gas Association (NGA) is the apex non-partisan organization representing various stakeholders within the Nigerian Natural Gas Industry Value Chain. Established in 1999, the NGA is dedicated to promoting the development of Natural Gas in Nigeria to benefit the nation and its stakeholders. With an unwavering commitment to advocacy, investment promotion, promoting standards and best practices, capacity building, and serving as the industry resource centre of choice, the NGA plays a pivotal role in the Nigerian energy sector.

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