The Minister of State Petroleum Resources, Timipre Sylva, says the desire to surmount the challenges bedevilling the oil and gas sector led to enacting the Petroleum Industry Act (PIA).

Mr Sylva spoke at the Nigeria International Economic Partnership Forum, in New York, with the theme ‘Nigeria’s Oil and Gas Sector: Reforms, Results and the Road Ahead’.

In a statement on Thursday, the minister said President Muhammadu Buhari regime’s desire to inject life into the sector characterised by fiscal and operational challenges led to making proactive reforms a priority. The minister added that enacting the PIA on August 16, 2021, was a “watershed.”

He said it signalled the beginning of a more conducive environment for investment, output, and industrial and national growth while also addressing legitimate grievances of resource host communities most impacted by resource extraction operations.

At full implementation, he said the PIA 2021 would create massive investment opportunities, improve transparency, attract investors, and reposition the Nigerian Oil and Gas industry for sustainable growth. The minister said the PIA 2021 had established a legal, governance, regulatory, and fiscal framework for the petroleum industry, host community development, and associated matters.

“It provides fiscal certainty, improves regulations and incentives for investment, including up to ten-year tax vacations, while guaranteeing better take for both government and private investors, thereby balancing rewards with risk,” Mr Sylva explained. “The PIA has set the foundation for sustainable growth in the sector with the establishment of the Nigerian National Petroleum Company Limited (NNPCL), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerian Upstream Petroleum Regulatory Commission (NUPRC).”

(NAN)