Lagos Nigeria, August 16 (Bloomberg) – Nigerian President Muhammadu Buhari signed into law long-awaited legislation to overhaul the oil and gas industry in Africa’s biggest crude producer.
Buhari assented to the so-called Petroleum Industry Bill on Monday, a month after it was voted through by both chambers of the National Assembly, presidential spokesman Femi Adesina said in an emailed statement. Buhari’s government is banking that the reforms will attract a greater share of global capital allocated to fossil fuel projects.
The bill was first presented to parliament in 2008 and is aimed at removing legal and regulatory uncertainty that’s held back the industry’s growth. While oil contributes less than 10% to Nigeria’s gross domestic product, it accounts for nearly all foreign-exchange earnings and half of government revenue. The economic-growth cycle is closely linked to crude output.
Wrangling between politicians and complaints by oil companies scuppered previous efforts to update the regulations, a process that began almost two decades ago.