NNPC Proposes Increase in Oil Royalty, Scraping of Investment Tax Credit in PSC
In the same vain, a price regime of $100-$130 would attract royalty of 0.20 per cent while an increase of price between $130 -$170 translate to royalty rate of 0.10 per cent. A price regime of $170 and above would attract zero per cent royalty payment.
- The NNPC argued that in the alternative, the graduated royalty scale as provided in the Act should be removed while the Honorable Minister of Petroleum Resources should be empowered to intermittently set royalties payable for acreages located in deep offshore and inland basin production sharing contracts through regulations based on established economic parameters.
“It is our opinion that these incentives have outlived their usefulness and are now impediments to the Federal Government’s revenue collection efforts. The use of such incentives can be terminated by an amendment of section 4 of the Act,’’the Corporation noted. The Corporation called on the National Assembly to seek relevant input from the Federal Inland Revenue Service, to resolve the divergent opinions regarding the methodology for the computation of the taxes which would arise as a result of the proposed royalty regime. On the Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri, the Corporation recommended the establishment of the Museum alone with clear budgetary allocation from the Federal Government under the control and management of the National Commission for Museum and Monuments. “It is better to refine and upgrade the capacity of the Petroleum Training Institute, in Warri and the National College of Petroleum Studies, Kaduna, in order to avoid duplication of functions and more importantly ensure optimal utilization of funds,’’ NNPC stated. Source / More on: NNPC Oil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook]]>