President Muhammadu Buhari has assented to the Bill amending the Deep Offshore (and Inland Basin Production Sharing Contract) Act.
President Buhari who is still in London on a visit, on Monday, November 4th 2019 in a series of tweets on his official Twitter handle, thanked the National Assembly for their cooperation and passing into law the long-overdue bill.
The President took to his twitter handle to announced the signing of the bill amending the Deep Offshore Act, saying:
“This afternoon I assented to the Bill amending the Deep Offshore (and Inland Basin Production Sharing Contract) Act. This is a landmark moment for Nigeria; let me use this opportunity to thank the National Assembly for the cooperation that produced this long-overdue amendment.
You will recall that in my 2020 Budget Presentation Speech before the National Assembly in October, I highlighted the need to urgently review the fiscal terms for deep offshore oil fields, to reflect current realities and to ensure increased government revenues.
Now, a month later, we have together with the 9th National Assembly made history with the passage and the signing of the amended bill into law. We will continue to work together to deliver on all our promises to ensure inclusive growth and enhance the welfare of all Nigerians”.
Stating the further, the President said: “Nigeria will now receive its fair, rightful and equitable share of income from our natural resources for the first time since 2003.
All attempts to amend the law on the distribution of income have failed. Until today. A combination of complicity by Nigerian politicians and feet-dragging by oil companies has, for more than a quarter-century, conspired to keep oil taxes to the barest minimum.
“Today this changes. For the first time under our amended law, 200 million Nigerians will start to receive a fair return on the surfeit of resources of our lands. Increased income will allow for new hospitals, schools, infrastructure and jobs.
Today marks a new and beneficial relationship with our oil company partners: one that benefits all – starting with the Nigerian people” the President stated.
This steps taken by President Muhammadu Buhari will give effect to certain incentives (such as lower royalty and tax rates etc.) granted to oil and gas companies operating under PSCs in the Deep Offshore and Inland Basin areas of Nigeria
The Senate passed the Deep Offshore and Inland Basin Production Sharing Contract Act 2004 (Amendment) Bill, 2019 (the Bill) in October 2019.
The Bill which aims to amend the provisions of the Deep Offshore and Inland Basin Production Sharing Contract Act 2004 (DOIBPSCA or the Act) also aims to shore up Nigeria’s revenue earnings.
DOIBPSCA regulates the operations of oil and gas companies operating under production sharing contracts (PSCs) in the Deep Offshore and Inland Basin.