Investment impasse: NGA demands PIA review to address urgent challenges
Sopuruchi Onwuka
The Nigerian Gas Association (NGA) has called for wide stakeholder engagement and consultation for an immediate and critical review of the Petroleum Industry Act (PIA) to address impediments hindering investment and ease of doing business.
The President of the Association, Akachukwu Nwokedi, made the call during a media parley with the media in Lagos where he emphasized the need for a swift review of the PIA to address gaps currently hindering the gas sector’s growth.
Whereas he acknowledged PIA’s enactment in 2021 as a welcome development that provides regulatory clarity for the petroleum sector and specific provisions for the gas industry, he also recommended the fiscal aspects of the law which holds potential to transform the gas sector be reviewed for optimization.
Mr Nwokedi highlighted lingering issues in the industry to include multiple taxation, noting that it increases the cost of doing business and, in some cases, result in higher end-user gas prices, reducing the attractiveness and rapid adoption of natural gas.
He also pointed at payment in dollars in local transactions such as royalties, fees, penalties, licenses, and permits without providing a Naira payment option.
While the oil and gas industry is internationally denominated in dollars, the NGA suggests that allowing payments in Naira equivalent would help alleviate pressure on the Nigerian currency, especially in this period of extreme forex drought and when enterprises in the country earn their income in Naira.
He also pointed at the need to review the fiscal incentives to boost and sustain gas supply to meet the nation’s needs.
Aka Nwokedi emphasized the crucial role the NGA plays in advocating for the Nigerian gas industry, promoting new investments, protecting industry interests, and facilitating a just energy transition.
He stated that the NGA’s commitment over the next two years includes plans to advocate for its members and the entire industry, promoting new investments and supporting the transition to cleaner energy sources.
He also listed the commitment of the association to supporting government’s Decade of Gas (DoG) implementation by actively participating in and coordinating successful and speedy implementation.
On capacity building, Mr Nwokedi declared that the NGA would deliver industry events and training on gas-specific and broader energy sector topics to enhance the knowledge and skills of industry professionals.
He also pledged to enhance industry communication to foster improved understanding between the association and its members through an integrated online membership ecosystem.
In pointing at industry governance and safety standards, Mr Nwokedi stated that the NGA would continue engage in technical roundtables and other initiatives to enhance communication on credible data and information dashboard about the Nigerian gas industry.
He pledged annual training for the energy media to ensure accurate reporting and knowledge dissemination within the sector, especially on the association’s membership in the International Gas Union (IGU).
The association will continue to promote greater Nigerian involvement in the gas sector across the entire value chain, Mtr Nwokedi pledged, pointing at the implementation of the diversity, equity and inclusion (DEI) initiatives to promote a more inclusive gas and energy sector.
Mr Nwokedi told the nation that the NGA would consolidate industry views, expertise and experience to enhance the strategic focus of the association and energy sector by relaunching of the NGA Advisory Group:
He noted that the parley’s objective was to inform the media and Nigerians of industry issues and solutions while establishing strong partnerships with the media.
“By working together, the NGA and the media aim to ensure accountability and disciplined delivery of proposed initiatives, unlocking Nigeria’s potential to become a gas economic powerhouse,” he reiterated.
The Oracle Today reports that the Nigerian Gas Association (NGA) is the apex non-partisan organization representing various stakeholders within the Nigerian Natural Gas Industry Value Chain.
Established in 1999, the NGA is dedicated to promoting the development of Natural Gas in Nigeria to benefit the nation and its stakeholders. With an unwavering commitment to advocacy, investment promotion, promoting standards and best practices, capacity building, and serving as the industry resource centre of choice, the NGA plays a pivotal role in the Nigerian energy sector.
