Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

Implications of Nigeria's Draft Petroleum Fiscal Policy

Proshare

Monday, April 24, 2017 8:00 AM / Deloitte

As part of efforts towards reforming the oil and gas industry, the Ministry of Petroleum Resources (MPR) recently released the Draft National Petroleum Fiscal Policy. The release of the Policy follows the recent moves to rename the Petroleum Industry Bill (PIB) to “Petroleum Industry Reform Bill (PIRB)” and breaking this up into two separate bills to address one of the major challenges bedevilling legislative passage of the PIB. 

The purpose of the policy is to provide a fiscal framework that will guide the planning and development of petroleum activities in an efficient manner and ultimately lead to the socioeconomic development of Nigeria. Government is also interested in increasing revenue generated from this sector of the economy. 

Some of the highlights of the Policy include:
 

·         Reintroduction of the Nigerian Hydrocarbon Tax

·         Reduction of tax deductible items

·         Limited recoverability of costs incurred overseas to a maximum of 80%

·         Introduction of volume and price based royalty payments

·         Introduction of production allowances as a preferred fiscal instrument over cost based incentives  

Kindly click to download the full report  

Visit Deloitte’s blog to keep yourself abreast of business alerts, subject matter expert perspectives and so on.  

Disclaimer:
This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

Related News 

1.       Analysing the Petroleum Industry Bill

2.      Bukola Saraki's Remarks at Petroleum Industry Bill Public Hearing

3.      The New Petroleum Industry Bill and Taxation of Petroleum Products in Nigeria

4.      Average Prices of PMS, AGO, HHK and Cooking Gas Price Watch

 

READ MORE:
Related News