NNPC GMD Mele Kyari to present the benefits of Nigeria’s Oil Industry Law at African Energy Week in Cape Town
In Cape Town, we eagerly await Mele Kyari to detail the benefits the adoption of PIA will bring to the country.
JOHANNESBURG, South Africa, October 21, 2021 / APO Group / –
Nigeria has made significant progress in reforming its oil and gas industry in 2021, with the passage of progressive legislation that not only restructures the domestic sector, but provides a more attractive investment destination for international players. In particular, with the adoption of the Petroleum Industry Act (PIA), the Nigerian government has positioned the country as the leading energy market in Africa. During Africa Energy Week (AEW) 2021 in Cape Town, the benefits of PIA will be presented by Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC).
The PIA includes a complete overhaul of the administrative, regulatory and fiscal regime of the Nigerian energy sector, restructuring key petroleum institutions in order to streamline processes and spur the expansion of the country’s oil and gas industry. While the country is faced with the challenges of declining oil production from mature fields, coupled with the climate of reduced investment spending caused by the COVID-19 pandemic, the PIA aims to strengthen the attractiveness of the sector for foreign investments, ensuring a market-oriented regulatory environment that accelerates the country’s industrial developments.
Notable regulatory reforms implemented through the PIA include the creation of a new upstream regulator – the Commission – which will replace the Petroleum Resources Department; the creation of a new Nigerian intermediate and downstream oil regulatory authority; and the complete overhaul of NNPC – which will be replaced by NNPC Limited which will operate on a commercial basis without government funding. As a result, Nigeria has placed transparency at the center of its reforms. In addition, tax reforms include reducing taxation and fees on new / converted licenses from the previous regime; and the introduction of a tax on hydrocarbons – to replace the current tax on petroleum profits. By encouraging investment, the government is focusing on accelerating development across the energy sector value chain.
At AEW 2021 in Cape Town, a strong Nigerian delegation led by HE Chief Timipre Sylva, Minister of State for Petroleum Resources, and Kyari will lead the discussion on the benefits and opportunities brought about by the PIA. With over 200 trillion cubic feet of natural gas reserves and 36 billion barrels of oil, Nigeria is well positioned to become a global energy player. Now, with a regulatory environment that emphasizes stability and transparency, the country is doomed to see an influx of foreign capital and the participation of international companies. In Cape Town, Kyari will promote the PIA, highlighting how Nigeria will serve as a trend for other resource-rich countries looking to secure international investment.
“Nigeria has set an incredibly high standard for other African countries. By implementing a complete regulatory, tax and industry overhaul, introducing key institutions and streamlining sector regulations, the government has positioned Nigeria as Africa’s most attractive energy sector. the passage of the PIA is exceptional. This legislature will usher in a new wave of investment and international participation in the Nigerian sector, and the government should be commended for this achievement. In Cape Town, we look forward to Mele Kyari detailing the benefits the adoption of PIA will bring to the country. Kyari will advise on the restructuring of the NNPC, engage directly with investors and promote the important opportunities offered by the PIA, ”said NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC).
AEW 2021, in partnership with the South African Department of Mineral Resources and Energy DMRE, is the AEC’s annual conference, exhibition and networking event. AEW 2021 brings together African energy players with international investors and partners to drive industry growth and development and promote Africa as a destination for energy investments.