Senate to review PSA Act to boost Nigeria’s revenue …As FG loses N7trn to foreign firms, to earn N360bn annually

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The Senate will on Thursday consider a bill to review the Production Sharing Contract Act in a bid to boost the country’s revenue earnings. The review of the PSA Act is part of measures by the Ahmad Lawan-led-Senate to increase the revenue earnings of the country.

The resolution was reached after consideration of a motion titled: “Urgent need to review and recover additional revenue accruable to the government of the Federation from the Production Sharing Contracts pursuant to Section 16 of the Deep Offshore and Inland Basin Production Sharing Contract Act.”

The motion was sponsored by Senator Ifeanyi Patrick Ubah (YPP, Anambra South).

The Senate also on Wednesday, mandated its Committee on Petroleum Resources Upstream to investigate the reasons for the failure to review the provisions of the Production Sharing Contract (PSA) Act

The President of the Senate, Ahmad Ibrahim Lawan, stated that Nigeria’s economy will gain significantly if the Act was reviewed and amended.

He said, “The monies can be injected into financing the 2020 Budget. This is one important and patriotic motions we have taken so far in the Ninth Senate.

“Let me say that tomorrow (Thursday), the bill that needs to be amended is coming up for consideration for second reading, and I believe what we need to do is to give it the most expeditious consideration ever.

“We also pray the executive arm of government will give it expeditious treatment because this is one bill that if amended and signed, will give us N160 billion proposed for the 2020 budget.

“So time is of essence here, and therefore, we will do everything possible to pass it, and of course follow it up, so that the effect is seen in money available to finance the 2020 appropriation which will be presented possibly next week.”

Presenting the motion, Senator Ubah disclosed that “as a result of the non-review and amendment of the PSC Act, the Federal Government has lost about US$21 billion (about 7 trillion naira) over a period of 20 years.”

Ubah added, “Nigeria having lost trillions of naira due to non-review of the PSA Act stand to gain an additional sum above 30 billion naira monthly (360 billion naira annually) if the Act is reviewed and amended.”

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