SNEPCO’s MD Advocate for Simplified Fiscal Terms to Attract Investment in Nigeria’s Oil, Gas Projects

By Ndubuisi Micheal Obineme

Shell Nigeria Exploration and Production Company’s (SNEPCo) Managing Director, Mrs. Elohor Aiboni, has called on the Nigerian government to implement simplified fiscal terms specifically for gas project development that are not connected to oil projects and to replicate the favorable fiscal terms for onshore oil projects outlined in the Petroleum Industry Act (PIA).

Aiboni made this known while speaking in a panel session titled, “The Investors Perspective: Assessing the Attractiveness of Nigeria’s Energy Sector” at the just concluded 2023 NOG Energy Week held in Abuja, noting that providing an attractive fiscal framework in the PIA will reduce the cost of projects.

In her words, She explained that implementing favourable fiscal terms, especially for gas projects will attract more investments into Nigeria’s oil and gas industry.

According to her, “The PIA has provided better terms for onshore oil reducing tax and royalties, but action was still required to enact terms for gas that is not associated with oil drilling. PIA reduced the tax on the onshore. Shortly after the PIA was passed, Finance Act eroded the value of what the PIA had created.”

Speaking further, Aiboni said, “Capital has no emotions at all; it will flow to where it will get the highest returns. It will then begin to bear fruits, lots of fruits and that’s certainly what any investor is looking for.

“Favourable fiscal terms will also boost investors’ confidence, encouraging them to implement projects in the industry. There are factors that will drive oil and gas projects and the first is around the fiscals which is very critical; so there must be right and clear fiscal terms to support the execution of projects.”