The legislation, which has been in the pipeline for 20 years, is aimed at providing clarity and encouraging investment in the oil and gas sector, on which the government relies for about 90% of its foreign exchange earnings and 60% of total income.
It includes provisions to restructure the Nigerian National Petroleum Corporation (NNPC) into a limited liability entity capable of attracting private capital. The legislation also separates regulatory powers from the state oil corporation and establishes distinct regulatory agencies for the upstream, midstream and downstream sectors.
Previous attempts to pass a bill failed in 2009, 2012 and 2018. The legislation won’t make up for lost time and investment. According to KPMG, only 4% of the $70b investment made in Africa’s oil and gas industry between 2015 and 2019 went to Nigeria, despite the fact that it is the continent’s biggest producer
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