The President, Nigerian Gas Association (NGA), Mr. Dada Thomas, has said that the Federal Executive Council’s recent approval of both the National Gas Policy and National Petroleum Policy is good but not enough for the desired revamp of the nation’s oil and gas sector, The Punch reports.
Although the NGA president, who doubles as the Managing Director of Frontier Oil Limited, a major upstream player, commended the government for approving the NGP and the NPP, he argued that the required development would not be achieved without a corresponding approval of a fiscal policy for the sector. He said despite the significant roles of the NGP and the NPP, it was the fiscal policy that would actually enable investors to properly assess the economic viability of Nigeria‘s oil sector before they could invest in it so as to grow it to an enviable height.
Officials at the petroleum ministry explained that the fiscal policy was still work in progress and that it would address issues in the upstream oil and gas sector, adding that various meetings were ongoing with respect to the fiscal policy. It was learnt that discussions were ongoing with the NGA, independent petroleum producers, as well as with the Oil Producers Trade Section – a group that consists of operators in the upstream oil and gas sector, especially international oil companies operating in Nigeria.