ABUJA – The Nigerian Senate wednesday has mandated its committees on Petroleum Resources Upstream, Finance and Judiciary to investigate the reasons for the failure to review the salient provisions of the deep offshore and inland basin production sharing contract act, the Production Sharing Contract (PSC).
Senator Ifeanyi Ubah representing Anambra South who moved the motion at plenary said that beyond the crude oil price of $20, if the share of the federal government in the additional revenue is adjusted, Nigeria stands to gain 30 billion naira monthly amounting to 360 billion naira annually.
According to him, As at 2017, Nigeria had lost about 7 trillion naira over a period of 20 years due to non review and amendment of the deep offshore and inland basin production sharing contract act.
Following this, the Senate calls for an urgent review and amendment of the act in order to boost the nation’s revenue base.
The Senate after fruitful deliberations on the matter directs its committees on Petroleum Resources Upstream, finance and judiciary to investigate the accruable revenue and provide solutions through a bill.
The bill for the amendment of the deep offshore and inland basin production sharing contract act will come up at plenary tomorrow.
The Senate committee on finance also had its first public hearing today. The Senate President while declaring the public hearing open, said that the blockage of leakages will go a long way to improve the nation’s finances. That the Senate is resolute in in changing the undesirable budget circle to impact positively on the economy of the nation and this can be done through proper management of the revenues to reduce deficit and add value to our fiscal processes.
According to him, All hands must be on deck to ensure sanity in the system. Stating that the NNPC and those in the oil sector did not help the revenue and that is why the senate today in its debate call for the amendement of the PSC Act to help improve the revenue. He said the act if will be amended and sign into law and this will boast the budget because we will have enough funds to fund the 2020 buget so as not to let us start on deficit again which is bad.
