President Muhammadu Buhari has signed the Bill amending the Deep Offshore (and Inland Basin Production Sharing Contract) Act into law, while on a private visit to London.
He signed the bill in the presence of his Chief of Staff, Abba Kyari.
In a series of tweets posted on his official Twitter handle @MBuhari on Monday, the President said “Nigeria will now receive its fair, rightful and equitable share of income from our own natural resources for the first time since 2003.”
He blamed Nigerian politicians “and feet-dragging by oil companies” for the delay in reviewing the Act.
“This afternoon, I assented to the Bill amending the Deep Offshore (and Inland Basin Production Sharing Contract) Act.
“This is a landmark moment for Nigeria; let me use this opportunity to thank the National Assembly for the cooperation that produced this long overdue amendment.
“You will recall that in my 2020 Budget Presentation Speech before the National Assembly in October, I highlighted the need to urgently review the fiscal terms for deep offshore oil fields, to reflect current realities and to ensure increased government revenues.
“Now, a month later, we have together with the 9th National Assembly made history with the passage and the signing of the amended Bill into law. We will continue to work together to deliver on all our promises to ensure inclusive growth and enhance the welfare of all Nigerians.
“Nigeria will now receive its fair, rightful and equitable share of income from our own natural resources for the first time since 2003.
“All attempts to amend the law on the distribution of income have failed. Until today, a combination of complicity by Nigerian politicians and feet-dragging by oil companies has, for more than a quarter-century, conspired to keep oil taxes to the barest minimum.
“Today this changes. For the first time under our amended law, 200 million Nigerians will start to receive a fair return on the surfeit of resources of our lands. Increased income will allow for new hospitals, schools, infrastructure and jobs.
“Today marks a new and beneficial relationship with our oil company partners: one that benefits all – starting with the Nigerian people,” he stated in the tweets.
It will be recalled that the Deep Offshore and Inland Basin Production Sharing Contract Act enacted as a decree in 1993 (DOIBPSCA or the Act) provides the legislative framework guiding Nigeria’s deep offshore oil production, covering acreages greater than 200 meters in water depth.
One of the amended sections (Section 16 of the Act) stipulates a periodic review to guarantee economic benefits from additional revenues to the Federal Government of Nigeria from deep offshore acreages underpinned by Production Sharing Contracts (PSCs).
Read his tweet thread below:
This afternoon I assented to the Bill amending the Deep Offshore (and Inland Basin Production Sharing Contract) Act. This is a landmark moment for Nigeria; let me use this opportunity to thank the National Assembly for the cooperation that produced this long overdue amendment.
— Muhammadu Buhari (@MBuhari) November 4, 2019
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