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FG to reap $300bn from PIB yearly

By Hector Igbikiowubo
THE Nigerian National Petroleum Corporation, NNPC, weekend, said government revenue from upstream oil industry joint venture and production sharing contracts agreements would increase to $300 billion following passage of the Petroleum Industry Bill, PIB.

Dr. Mohammed Barkindo, NNPC’s Group Managing Director, said this at a two-day workshop organised by the corporation in conjunction with the Federation Accounts Allocation Committee, FAAC, to improve understanding of the operations of the oil and gas industry in the country.

The parley which was attended by finance commissioners, accountants-general from the 36 states and members of the Revenue Mobilisation and Fiscal Commission was a continuation of NNPC/ Stakeholders’ Forum series which was flagged off mid-January with the successful Downstream Stakeholders’ Forum in Lagos.

In a breakdown of the projection, the General Manager, Planning of the National Petroleum Investment Management Services, NAPIMS, a subsidiary of NNPC, Mr. Victor Briggs, stated that PIB sought to boost accruals to government coffers from the deep water offshore operations from the current level of 32 per cent to 72.3 per cent.

The Group General Manager, Corporate Planning and Strategy and Director of NNPC Transformation, Dr. Tim Okon, in a presentation, said  apart from increasing government take, PIB would engender a fresh fiscal regime that would make it easy to calculate royalties by eliminating undue cost deductions.

Earlier, while declaring the workshop open, the Minister of State for Finance and Chairman of FAAC, Mr. Remi Babalola, praised the organisation for hosting the workshop which, according to him, would inspire trust and confidence and cement the relationship between FAAC members and NNPC.

In his address, Minister of Petroleum Resources, Dr.Rilwanu Lukman, said the workshop was designed to remove doubt and suspicion about the operations of NNPC, especially as it affects accruals to the federation account.


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