The Managing Director of Seplat, Austin Avuru has insisted that for the nation’s oil and gas sector to move forward, there is a need for strong regulations, The Guardian reports.
Speaking at the Petroleum Club Guarantors Dinner in Lagos recently, he noted that “if the country does not institute strong regulations in the oil industry, it would collapse.” According to him, indigenous operators do not have the discipline to entrench the governance necessary to move the industry forward. Local operators are often compelled by relevant institutions of government before paying royalties. Therefore, “when operators do not pay royalties and taxes it will collapse the industry.”
Speaking further, he also added that the Petroleum Industry Bill (PIB) is not necessarily the solution to Nigeria’s oil industry problems. He said what the country needs is a fiscal bill that will address the fiscal regime in the industry, this will give ample opportunity to investors to have a clear idea of what the fiscal regime and governance structure is before investing in the sector. He however commended the National Assembly for passing the PIB governance bill.