Petroleum Industry Bill Overview Series: Part 2: A summary of the new fiscal provisions

Part 2 of our Petroleum Industry Bill (PIB) overview series summarizes the new Fiscal Provisions of the PIB. In Part 1, we gave a detailed breakdown of the Governance provisions of the bill.

The Petroleum Industry Bill (PIB) completely overhauls the fiscal and tax framework in the Nigerian petroleum sector, with the objective of establishing a progressive fiscal framework that encourages investment in the Nigerian petroleum industry.

In Part 2, we discuss the:

Scope and applicability of fiscal and tax amendments
Administration and collection of the revenue of the Federal Government
Applicable fiscal changes including;
Royalty regime
Cost Recovery
Tax regime
Gas Pricing
Applicability of Companies Income Tax
Transition and stabilization provisions.