The Minister of State Petroleum Resources Chief Timipre Sylva, has said that the desire to surmount the challenges bedeviling the oil and gas sector led to the enactment of the Petroleum Industry Act (PIA).
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".
Sylva, in a statement on Thursday by his Senior Adviser (Media and Communications), Horatius Egua said Federal Government's desire to inject life into the sector characterised by fiscal and operational challenges led to making proactive reforms a priority.
The minister said the enactment of the PIA on Aug. 16, 2021 was a "watershed moment for the nation, the industry and all stakeholders.
He said it signalled the beginning of a more conducive environment for investment, output, industrial and national growth, while also addressing legitimate grievances of resource host-communities most impacted by resource extraction operations.
He said the PIA 2021, at full implementation, 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.
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"The PIA has set the foundation for a 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)," he said.
"This administration remains committed to ensure full implementation of these conceived reforms to foster efficiency and attract investments and development of supporting infrastructure along the oil and gas value chain as embedded in our policy aspirations for the sector.
"The government has taken the necessary steps to sustainably implement and operationalize the PIA 2021 within the timelines stipulated in the Act," he said.
To this end, he said the government had inaugurated the steering committee, which he chaired, responsible for PIA implementation immediately after the PIA was signed into law.
Reflecting on the theme of the conference "Nigeria's Oil and Gas Sector: Reforms, Results and the Road Ahead", Sylva said the theme resonated the aspirations and commitment of President Buhari's government to reform the sector.
