Business
2021 AEW: Sylva, Kyari to lead discussions on benefits of Nigeria’s PIA
At the 2021 African Energy Week (AEW) in Cape Town, a strong Nigerian delegation led by H.E. Chief Timipre Sylva, Minister of State for Petroleum Resources and Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) will lead the discussion on the benefits and opportunities brought about by the PIA.
Nigeria has made significant progress to reform its oil and gas industry in 2021, with progressive legislation being passed into law that not only restructures the domestic sector but provides a more attractive investment destination for international players.
Notably, with the passing of the Petroleum Industry Act (PIA), the Nigerian government has positioned the country as Africa’s top energy market.
The PIA comprises a complete overhaul of the administrative, regulatory and fiscal regime in Nigeria’s energy sector, restructuring key petroleum institutions in order to streamline processes and drive the country’s oil and gas industry expansion.
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As the country faces challenges of declining oil production from mature fields, coupled with the reduced capital expenditure climate brought about by the COVID-19 pandemic, the PIA aims to enhance the sector’s attractiveness for foreign investment, ensuring a market-driven regulatory environment that will accelerate the country’s industry developments.
Additionally, fiscal reforms include the reduction in the taxation and royalty-take of new/converted licenses from the prior regime; and the introduction of a hydrocarbon tax – to replace the existing petroleum profits tax.
By incentivising investment, the government is focused on accelerating development across the entire energy sector value chain.
“Nigeria has set an incredibly high standard for other African countries. By implementing a complete regulatory, fiscal, and industry overhaul, introducing key institutions and streamlining sectoral regulations, the government has positioned Nigeria as Africa’s most attractive energy sector.
The passing of the PIA is exceptional. This piece of legislature will usher in a new wave of investment and international participation in the Nigerian sector, and the government should be commended on this achievement.
“In Cape Town, we are looking forward to Mele Kyari going into detail on the benefits that the passing of the PIA will bring to the country. Kyari will advise on the NNPC restructuring, directly engage with investors, and promote the significant opportunities brought about by the PIA,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC).
AEW 2021, in partnership with South Africa’s Department of Mineral Resources and Energy DMRE, is the AEC’s annual conference, exhibition and networking event. AEW 2021 unites African energy stakeholders with investors and international partners to drive industry growth and development and promote Africa as the destination for energy investments.