SOME THINGS YOU NEED TO KNOW ABOUT THE NEW PETROLEUM INDUSTRY ACT
1. Repeals 10 existing industry laws.
2. FG to fully commercialize NNPC by February 2022.
3. 3% of Oil Revenue from each host community is retained for the host community and 30% is retained for frontier basins.
4. Only two regulatory agencies will be created for the Oil industry.
5. One of regulatory Agencies for Upstream will collect now the following revenues from upstream operators; rents, royalties, production share (this gives Nigeria a much higher percentage of revenue share).
6. Downstream regulatory agency will now collect Gas Flare fees from Midstream Operators (this is new revenue stream and will minimize gas flaring).
7. 1% levy is charged on wholesale (not pump price) of petroleum products.
8. The new Corporation to retain 10% of profit of oil & gas as management fee.
9. Oil companies will now to be sanctioned for understating profits and understating losses.
10. Members of the Board of Trustees and Executives of the Board set up to handle the host communities fund may not be necessarily indigenes of the host communities
11. The Oil areas that are receiving the funds are mandated to apply it 75% for capital projects, 20% reserve and 5% administrative
12. Host communities fund to be set up within 1 year from yesterday.
13. All employees of NNPC now automatically become employees of the new commercial entity, NNPC Limited.
14. Once incorporated, Board appointments to be made by shareholders, not only the President.
15. Host communities to forfeit entitlements under the fund to the extent of damage in case of vandalism.