Oil producers in Nigeria and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had been progressing with dialogue on the gathering of the 0.5 per cent wholesale value levy.
Whereas the NMDPRA argued that the oil producers ought to acquire the levy and remit it into Authority’s checking account, the oil producers stated the regulator ought to acquire the levy.
Nevertheless, the Chief Govt of NMDPRA, Farouk Ahmed, whereas talking at a stakeholder engagement in Lagos, stated the target of the discussion board was to assessment points and considerations raised throughout the first section of the NMDPRA sensitisation programme.
Ahmed, who was represented by the NMDPRA Authorized Adviser, Joseph Tolorunse, stated: “As a consequence of unresolved points, NMDPRA has been overwhelmed with disagreements relating to the implementation of wholesale provide operations. At this stakeholders’ sensitisation workshop, the problems and considerations will likely be mentioned and NMDPRA’s place on these considerations will likely be offered in an interactive method.”
Additionally, the Vice Chairperson of Oil Producers Commerce Part, OPTS, Gasoline Sub-Committee, Princess Edeimu Chukwumah, who represented Chevron Nigeria Restricted, and James Makinde from Seplat and different representatives of the Worldwide Oil Firms (IoCs), argued towards the producers accumulating the levy.
Reacting to the arguments, Tolorunse, whereas talking to newsmen stated: “one of many arguments raised is the implementation of assortment of presidency revenues, particularly the 0.5 per cent wholesale value of petroleum merchandise and pure gasoline.
“The PIA makes provision in part 37 and 52 for assortment of levies however the Act doesn’t specify the entity to gather it. We’ve got defined to them right here, that the costs will not be on the provider however quite on the wholesale clients. It might be higher to gather the levy on the wholesale level because it kinds a part of the wholesale value.”
He famous that, “for the reason that Act was handed in 2021, the timing for implementation was a part of our pushback as we have to cross rules and likewise make tips that can specify the procedures for assortment.”
He urged stakeholders to work collectively in enabling the operation of the rules that can pave the best way for optimised midstream and downstream oil and gasoline operations within the nation.
