Non-implementation of gas flare penalties costs FG N2.9trn – NEITI

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Lack of political will on  the part of the Federal Government to enforce its own laws on gas flare penalties, has cost the country $14.298 billion between April 2008 and October 2016, Vanguard reports.

This came as international oil companies (IOCs), and other oil companies operating in the country fail to abide by the regulation stipulating a penalty of $3.5 for every 1,000 Standard Cubic Feet (SCF), of gas flared in the country.

The Nigerian Extractive Industries Transparency Initiative (NEITI), in its latest audit report, the 2014 Nigerian Oil and Gas Audit Report, disclosed that in 2008, the Federal Government in its fiscal regime for the petroleum sector had set a penalty of $3.5 per 1,000 SCF of gas flared by the oil companies, stating, however, that the companies have refused to comply with the directive.

It also stated that the Federal Government had over the years, refused to enforce the regulation and is still collecting the old rate of N10 per 1,000 SCF which was supposed to run from 1998 to 2008.