The Federal Government has unveiled plans to boost its revenue base on royalty to 50 percent in the Deep Offshore and Inland Basin Production Sharing Contracts in a new bill waiting for amendment at the National Assembly.
The proposal was contained in the Deep Offshore and Inland Basin Production Sharing Contracts (Amendment) bill, 2018 transmitted separately by the Presidency to the House of Representatives and Senate.
But industry analysts say the implication of the law is that there would more money in the hands of the federal government at the expense of the state governments. According to the explanatory memorandum that accompanied the bill, the government seeks to review its share in additional revenue under the production sharing contracts.
The amendment bill, which scaled through first reading on the floor of the House on Thursday, seeks to alter the Deep Offshore and Inland Basin Production Sharing Contracts Act, 1999.
Source: Business Day