Operators task govt on streamlining taxes, levies in gas sector

Gas sector operators under the Nigerian Gas Association (NGA) have urged the Federal Government to streamline taxes and levies with new initiatives.

The group made the call during a courtesy visit to the Special Adviser to the President on Energy, Mrs. Olu Verheijen.

Led by its President, Akachukwu Nwokedi, the association also called for review of the Petroleum Industry Act (PIA) provisions that impact the ease of doing business in the sector.

The NGA highlighted the importance of prioritising gas and fully capitalising on the abundant gas reserves in Nigeria, especially in the context of the country’s participation in the Decade of Gas and the global energy transition.

The association applauded the Federal Government for several commendable initiatives, including licensing 42 companies under the Nigerian Gas Flare Commercialisation Programme, expanding the gas aggregation space, establishing the Presidential Compressed Natural Gas Initiative, and the substantial energy investment commitment with major oil and gas companies operating in Nigeria.

Acknowledging government efforts, the group highlighted several critical challenges plaguing the industry that need urgent attention, such as gas supply issues, the absence of a commercial and fiscal framework to stimulate investment in the sector, aging gas infrastructure and security concerns.

The body also listed multiple taxation hurdles, VAT on Autogas-related equipments and transactions, lack of public awareness regarding the benefits of switching to gas, and the dollarisation of levies and taxes.

The NGA sought the support of the special adviser in addressing the challenges, proposing that government create enhanced special security measures around pipeline assets to ensure consistent gas supply.

It also demanded that government should ensure strong focus on deepwater and offshore gas development to unlock Nigeria’s abundant gas reserves and ensure sustainable gas supply for export and domestic use

Nwokedi sought for involvement of the NGA as a resource group for industry input in formulating policy and regulatory direction.

He reaffirmed the significant advantages derivable from the continuing consultation and engagement between the association and the government.