An Evaluation of Fiscal Regimes for the Nigerian Petroleum Industry Bill

the Nigerian Petroleum Industry Bill

Abstract

Petroleum has been the mainstay of the Nigerian economy for the past four decades. As a result, government is constantly looking for ways to enhance the contribution of the sector to the national economy without jeopardizing the environment and the communities from which the oil is produced, while taking into consideration the interests of the investor. Thus, there is an ongoing debate in the legislature on a petroleum industry bill which is intended to reform the oil industry in Nigeria. The aspect of the bill that has generated most reactions is the fiscal regime provisions in the bill. The petroleum industry bill sponsored by government, proposes some reforms in the existing fiscal regimes which the international oil companies consider to be detrimental to their interests. This paper identifies the key areas of disagreements on the review of the fiscal regimes. It also examines the strengths and weaknesses of the positions of government and the international oil companies by adopting a discursive approach and using quantitative information from respectable and trusted sources. Some recommendations are then provided for the way forward.