The All Progressives Congress, APC transition committee led by Ahmed Joda has made recommendations concerning the oil and gas sector. The recommendations which have been submitted to President Muhammadu Buhari include;
1. Total removal of subsidy on premium motor spirit (PMS), otherwise known as petrol.
2. Reviewing all Nigerian Petroleum Development Company (NPDC) operations and agreements especially the Strategic Alliance Agreements executed with third parties. This is to recoup any unearned royalties, taxes and any potential over-lifting under these agreements. This is one of the issues raised in the recent audit of NNPC.
3. Reviewing all pioneer status and tax waivers, and renegotiating or revoking concessions granted in order to recoup unpaid taxes. The Nigerian Investment Promotion Council (NIPC) was recently accused of indiscriminately granting pioneer certificates which led to an estimated loss of $20 billion revenue over five years.
4. Commencing a full-scale reorganisation and restructuring of NNPC and its subsidiaries to reposition it as a globally competitive national oil company and “significantly enhance reserves, output and revenues while creating major linkages with other sectors of the Nigerian economy”.
5. Incorporating the existing joint ventures (JVs) and reducing federal government stake to 49% “which should be on the listed on the Nigerian Stock Exchange”. This is expected to raise significant revenue from asset sale, relieve the government of the burden of cash call obligations and facilitate investment for accretion of reserves.
6. Commencing an audit of all Offshore Processing Agreements and Crude Swap Agreements entered by NNPC to identify and claim any reimbursements for excess crude lifted vis-a -vis products delivered based on a fair and transparent audit process.
7. Providing relevant security hardware and personnel to eliminate vandalism to critical pipeline infrastructure and unauthorised offshore vessel loading.
SOURCE: The Cable
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