The Chief Executive Officer, CEO, of the Centre For The Promotion Of Private Enterprise, CPPE, Dr. Muda Yusuf, has advised the Federal Government, to explore other gas flaring mitigation measures, which must be proportional to the volume of gas flared.
Yusuf, said such initiative would provide greater opportunity for Nigeria to attract investors into its gas sector and take advantage of the current global high demand for gas.
Yusuf, while reacting to the decision of President Muhammadu Buhari, to withhold assent to the 2023 Finance Bill, rejected imposition of tax on gas companies.
Nigeria has one of the largest gas reserves in the world of more than 190 trillion cubic feet and is Africa’s largest gas reserves.
The prospects for investment in gas have never been this auspicious, driven largely by the Russian – Ukraine conflict, he said adding that this is not a good time to impose a punitive tax on gas companies.
He also observed that the 50 per cent tax introduced in the Bill is not consistent with the essence of the recently enacted Petroleum Industry Act [PIA].
Policy consistency, he noted is vital to attract and retain investment in the gas sector in line with the aspirations of government as expressed in the PIA.
“The act was enacted just about a year ago. We should refrain from actions that would signals of policy inconsistency to investors in the sector. This could dampen investors’ confidence.” he advised.