by Ben Ndubuwa……..
As part of efforts not to allow the oil a gas industry collapse under the weight of the ravaging coronavirus pandemic, the government has been advised to suspend royalty on new production; relax ring fencing and give tax holiday on new assets.
Professor Wumi Iledare, who is the chairman of National Petroleum Research and UCC Institute for Oil and Gas Studies, CapVas, Ghana in an exclusive interview with FINANCIAL ENERGY REVIEW said that government should spur activities in the oil and gas industry at this time with incentives.
According to him, it was in times like this in the 80s that Nigeria increased its reserves and activities. “Incentives are like prayers spurring outcomes that would not have materialized. Let us revisit those possibilities so the industry does not collapse with extreme difficulties to revamp” he pointed out.
Prof. Iladera who is also Professor Emeritus in Energy Sudies, Louisiana State Universty, USA said it may seem odd, but that the government needs to avoid loans for consumption of goods manufactured mostly from abroad at this period. “To me, even if it sounds out of the box thinking, CBN knows how to get money to people locally and logically. Better to print secured currency than being in a perpetual paper money loan from abroad, more so from countries that do not ever forgive debt” he said.