House of Reps Public Hearing Day 2 – Nigerian Gas Association

  • Significant improvement on previous bills, but needs to address gas in a way to realise its potential
  • Gas should be treated as an enabler rather than a source of tax revenue
  • If gas is used properly it has a significant leverage effect on the economy
  • Incentives similar to AGFA should be put in place
  • Cost efficiency factor should not apply to gas
  • Gas royalties should be paid in Naira
  • Condensate should be treated as gas
  • A clearer definition of upstream, midstream and downstream
  • Sample calculation tables should be included in the bill to avoid disputes with the FIRS
  • All royalties should be in tranches
  • Marginal fields should be specifically protected

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