NEITI issues warning over oil industry bill

A Nigerian organisation has warned that the country could lose up to $3 billion (£1.8 billion) per year in oil industry revenue over the next five years if a new bill is passed.

The Nigeria Extractive Industry Transparency Initiative (NEITI) said that if the National Assembly passes the Petroleum Industry Bill (PIB), government petroleum revenue would be eroded as the limit set by the House of Representatives is less than internationally competitive rates.

NEITI said in a statement that the revised PIB reduces the government's share of oil revenue from deepwater projects to a minimum of 45 per cent, from 56 per cent and that for joint venture projects to be reduced to less than two-thirds from 82 per cent.

It claims that this will damage the fragile, oil-dependent economy in Nigeria.

"NEITI is, therefore, of the view that if the NASS passes the bill as it is now, the Nigerian oil and gas sector will be in serious danger of not achieving the desired national goals of promoting greater indigenous participation and increased revenue generation for national development," the statement claimed.

Nigerian Oil Minister Diezani Alison-Madueke recently claimed she hoped to see the bill passed by the end of 2011.