As anticipated in our tax alert of 21 October 2019, President Muhammadu Buhari has signed the Deep Offshore and Inland Basin (Production Sharing Contract) Act (DOIBPSCA), 2004 (Amendment) Bill, 2019 (the Bill) into an Act on Monday 4 November 2019.
The aim of the Act, with the same details as the Bill transmitted for presidential assent by the National Assembly, is to improve government’s revenue take under Production Sharing Contracts/Arrangements (PSC).
As the President alluded to during his budgetary speech, the amendment is expected to improve the revenue standing of the country with attendant impact on investors in the industry and hopefully, the populace. We also expect Companies operating under the PSC regime to ensure compliance with the provisions of the Act to avoid exposure to penalties.
Please click here to read our earlier tax alert analysing the amendments to the Act and expect a detailed newsletter on the changes and actual impacts shortly.