Breaking News
Translate

DPR, operators disagree over incentives to gas investors

By Ediri Ejoh

There are indications that the Federal Government may be at discord with the gas sector operators over incentives with the government calling on private investors to tap into opportunities available in the industry to grow their investments as well as the economy.

Some stakeholders who spoke to Sweetcrude maintained that a consistent gas policy as well as incentives are the very tools needed to revive the sector.

According to the Council Chairman, Society of Petroleum Engineer (SPE) Nigeria, Mr. Saka Matemilola, government has to provide the incentives to ensure that the infrastructure are put in place to achieve the set goal in the gas industry development.

”When all of these are handled or settled, then the companies that closed down because of no power would come back. Companies like the textile companies, manufacturing etc,” he said.

But speaking on the issue, Head of Gas Division, Department of Petroleum Resources, DPR, Mr. Antigha Ekaluo, stated: “The operators have been getting waivers in the past, to include some royalties, waivers on the concession licenses and others. But Oliver twist attitude is that of Nigerian attitude, always asking for more.

“Now we are not looking at incentives because if you give incentives too much, it is subject to abuse and we will start having some array of demands.  A cocktail of demands will emerge and you would not be able to give all the incentives.

“So, I tell you that we are not looking at incentives anymore, but we are looking at realistic business modules to be created. What we want is that you pay for what you get in the industry.~

“So they work out their business plans, and know what they need to spend and their income plans and then work out their profits. If you continue giving incentives in Nigeria terrine, you will harm yourself as government.


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.