The recently reviewed Deep Offshore and Inland Basin Production Sharing Contract Amendment Bill will attract genuine investors into Nigeria’s Oil and Gas sector.
An expert in the sector, Adeola Yusuf, said only shoddy investors would be discouraged.
President Muhammadu Buhari had signed the bill into law last Monday, and its full implementation is expected to significantly increase Nigeria’s share of earnings from oil wells offshore.
Since the signing of the bill into law, there has been concerns that Nigeria could lose over $55bn in deep offshore investments, and would forfeit $10.4bn in revenue by 2030.
Concern on the new law
Yusuf, however, said that those raising such concerns about the new law are doing that based on sentiments.
According to him, “If you look at it very well, those that come up with that kind of concern are the agents of International Oil Companies or those that are working directly with them. While it may be through, it is as well so heavy on sentiments.
“The truth of the matter is, if you want to look at it critically, has government done what it supposed to do? The answer to that is yes. Will Nigeria benefit tremendously from this? The answer is to that is yes.”
Yusuf said the Production Sharing Contract law ought to have been reviewed since 2008 but nothing was done by the government.
“Between 2008 and 2019 that we are now, we have over 10 years that government has been foot-dragging on that. Sincerely, government has done what it supposed to do.
“Will it discourage investment? I don’t want to believe that it will discourage investment, it will only discourage shady investments,” he said.