11 April 2018, Sweetcrude, Abuja – The Nigerian National Petroleum Corporation, NNPC, has decried multiple taxations on operators in the Nigerian petroleum industry, saying the development was stifling operators.
Group Managing Director of the NNPC, Dr. Maikanti Baru, raised the alarm as he stated that the various taxes and levies were causing complaints among the operators.
Baru, who was speaking at a consultative meeting with the consultants to the National Assembly on the Petroleum Industry Reform Bill, led by the lead consultant and former Director of the Department of Petroleum Resources, DPR, Mr. Osteen Olorunsola, said the NNPC was interested in the segment of the Petroleum Industry Bill, PIB, relating to the fiscal terms and was ready to spend considerable time and efforts to ensure that the National Assembly got it right in the interest of the nation.
Baru said the major complaint by operators in the industry was that of multiple taxations which include statutory contributions to the Niger Delta Development Commission, NDDC, and Nigerian Content Development and Monitoring Board, NCDMB, as well as sundry expenses on security.
He said: “We have to be able to design a system that works. If the 3%, 13% or any other statutory allocation for development is not working, then you should not be afraid to recommend a percentage that could work to replace the present system where operators pay multiple taxes and yet have to pay much more extra to secure their investments”.
Vowing that the NNPC would work very closely with the consultants to arrive at models that can respond to future challenges in the industry, he challenged them to take a comprehensive look at the issues in the oil and gas sector and make bold recommendations that could engender enduring reforms.