Delta State Governor, Sheriff Oborevwori has reaffirmed his commitment to supporting the growth of the hydrocarbons sector and reshaping the nation’s economy.
Gov. Oborevwori, who was represented by the Secretary to the State Government, Dr. Kingsley Emu, stated this during the 8th meeting of the National Council on Hydrocarbons held in Asaba, the Delta State capital.
The governor said as the highest producer of hydrocarbons, Delta State is dedicated to creating an enabling environment for its continued prosperity.
He added that the state government recognises the pivotal role the hydrocarbon industry plays in shaping the nation’s economy.
“As we reflect on the theme: “Petroleum Industry Act, 2021: The journey so far,” I am very confident that the very robust discussions have yielded valuable insight into the successes and challenges encountered thus far,” he added.
Gov. Oborevwori noted that the meeting has identified the yawning gaps and areas of the law that require immediate amendment, especially as it relates to the host communities.
The governor emphasised the need for states to be accorded clear oversight roles as all stakeholders strive to deepen the implementation of the Petroleum Industry Act.
Minister of Petroleum Resources (Oil), Heineken Lokpobiri, represented by the Director of the Upstream Department, Busari Kumoru, noted that the Petroleum Industry Act is critical to Nigeria’s monetary and fiscal policy environment.
He stated that crude oil contributes about 90 percent of Nigeria’s foreign exchange earnings and up to 65 percent of the government’s revenue despite accounting for under 10 percent of the Gross Domestic Product (GDP).
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Lokpobiri noted that the performance of the petroleum industry influences the direction of the government’s fiscal policy and monetary interventions more than any other sector of the economy.
He maintained that the objectives of the PIA include fostering a business environment conducive for petroleum operations, encouraging and facilitating both local and foreign investment in the petroleum industry.
He stressed that the key approach from the PIA towards achieving these objectives include the reduction of headline tax and royalty rates, creation of host communities’ development funds for harmonious co-existence and improving ease of doing business by repealing conflicting laws while enhancing the governance and regulatory environment.
The minister stressed that the PIA will have a positive impact on the ability of the sector to attract investments, the need to monitor the changes and keep the provisions under review in line with evolving business realities and the stiff competitive environment for investments.
