President Muhammadu Buhari on Monday, assented to the Bill amending the Deep Offshore (and Inland Basin Production Sharing Contract) Act.
President Buhari assented to the bill in London, the Senior Special Assistant on Media and Publicity, Malam Garba Shehu announced.
The amended Bill, is expected to generate at least $500m additional revenue for Nigeria in 2020, and over $1bn from 2021.
Recall that in his 2020 Budget Presentation Speech before the National Assembly in October, the President 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, President Buhari together with the 9th National Assembly saw to the passage and signing of the amended Bill into law.
The President who took to his Twitter handle @MBuhari to announce the news, said that Nigeria will now receive her ‘fair, rightful and equitable’ share of income from her own natural resources for the first time since 2003.
He further noted that increased income will allow for new hospitals, schools, infrastructure and jobs.
According to him, “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.
“We will continue to work together to deliver on all our promises to ensure inclusive growth and enhance the welfare of all Nigerians”.
While noting that all attempts to amend the law on the distribution of income have failed until now, he revealed that 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”.
In his words, “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.
“Today marks a new and beneficial relationship with our oil company partners: one that benefits all – starting with the Nigerian people,” he ended.