President Muhammadu Buhari Monday signed the Deep Offshore Inland Basin Production Sharing Contract, commonly called the Production Sharing Contract, PSC, bill into law. Buhari had left Saudi Arabia, where he went to scout for investment during an investment summit while using the opportunity to go for lesser hajj. But the Chief of staff, Aba Kyari, allegedly took the bill to him in London to sign.went viral on the internet.
The picture of Aba kyari, on suit, handing the bill to Buhari, who was sitting down, was viral on social media.
The bill seeks to review the sharing formula in favor of the federal government. Initially, the sharing formula permits sharing of the proceeds above sale of oil above $20 per barrel. But the Oil majors have not been faithful to their own side of the bargain. Currently, the total amount that has accumulated from the old agreement is in excess of $62 billion, and the oil majors are already in court to challenge their requirement to pay. Government has only been able to recoup about $28 billion while the rest is being challenged.
The federal government now has amended the relevant section of the bill, and it has been signed into law-a development he-Buhari- tweeted is “a landmark moment for Nigeria”. The first set of PSCs was signed in 1993.
His Twitter handle is said to b handled by his media aids.
The projection is that $500 million will accrue to the government early enough for them to plough into the 2020 budget, while an additional $1.4 billion will be injected into the 2021.
Presidency said this is the first time Nigeria will have equitable share of its income since 2003.
“All this time Nigeria has failed to secure its equitable share of the proceeds of Oil production, for all attempts to amend the law on the distribution of income have failed. That is until today”, the Presidency said, blaming a Complicity by Nigerian politicians and foot dragging by the oil majors for keeping a minimal tax over $20 per barrel.
According to the presidency, increased income will allow for new hospitals, schools, infrastructure and jobs.
