The Petroleum Industry Act, PIA 2021, signed into law by President Muhammadu Buhari on August 16, has been described as possessing some exciting and beneficial contents by PricewaterhouseCoopers, PwC Nigeria.
The group said the Act would support the nation’s economic advancement, noting that it would also attract and create investment opportunities for international and local markets, respectively.
According to Mr Uyi Akpata, Country Senior Partner, PwC, he believes the Bill would move to rejig the country’s petroleum industry by transforming the legal, fiscal, governing and regulatory environment with significant impact.
Mr Akpata made this known in his opening remarks during an exclusive session with business leaders. He stated that it would drastically redefine the Nigerian oil and gas landscape.
This redefinition will be achieved through its wide-ranging impact on various fundamental aspects of the economy, including energy, banking, and insurance.
Petroleum Industry Act
The Petroleum Industry Act 2021 is also expected to improve the corporate governance of the Nigerian National Petroleum Corporation, NNPC, and its scope for improved monetary and fiscal policies, especially in reducing hostility and insecurity in the country.
Again, if religiously implemented, PIA would, however, improve foreign exchange proceeds and help balance the local currency.
In addition, more investment in the sector will increase government revenue and tax collection, thereby reducing the need for government borrowing.