Gas association calls for review of PIA to aid ease of doing business

The Nigerian Gas Association (NGA) has called for an immediate and critical review of the Petroleum Industry Act (PIA) to address impediments hindering investment and ease of doing business.

Akachukwu Nwokedi, president of the association, made the call during a training programme held in Lagos, on Wednesday.

Nwokedi described the PIA’s enactment in 2021 as a welcome development that provides regulatory clarity for the petroleum sector and specific provisions for the gas industry.

 However, he said there is a need for a swift review of the document to address gaps currently hindering the gas sector’s growth.

“We still see multiplicity of taxation under the PIA, which has provisions that increase the financial burden on businesses. This needs to be harmonised as a matter of urgency,” the NGA president said.

Multiple taxation, according to Nwokedi, increases the cost of doing business.

He said in some cases, it impacts gas prices for Nigerians “as costs are passed on to end users, thus reducing the attractiveness and speedy adoption of gas”.

The NGA boss also urged the government to make incentives available to drive demand and supply, calling for import duty waivers and subsidised prices of the commercial kits.

“This can be in the form of fiscal incentives for projects and loans grants facilities to support conversion,” Nwokedi said.

“NGA, therefore, advocates the removal of the value-added tax (VAT) on autogas equipment and transactions to further stimulate activities in the sector.”

Nwokedi also asked the government to rethink the collection of royalties, fees, licences, and permits in the US dollars, “without a naira option”.

“While the oil and gas industry is an international industry denominated worldwide in dollars, there is a need to reduce the pressure on the naira by prescribing through law and regulation the options for payments of federal government dues and legacies in naira equivalent,” he said.

He added that the association would continue to promote new investments and protect the interest of the gas industry.