Oil Firms Oppose 3% Levy for South-South Development

On Wednesday, oil and gas industry operators and petroleum regulators opposed a proposal to require oil and gas producing companies to contribute three percent of their annual budgets to the South-South Development Commission. This opposition was voiced during a public hearing organized by the House of Representatives Committee on the South-South Development Commission, which aimed to amend the South-South Development Commission (Establishment) Act, 2025.

The committee, chaired by Julius Pondi, sought input from stakeholders due to the strategic importance of the petroleum sector. Pondi noted the South-South region faces significant developmental challenges despite its contributions to Nigeria's economy.

The Nigerian Upstream Petroleum Regulatory Commission, represented by Kingsley Chikwendu, expressed support for a sustainable funding structure but criticized the lack of clarity in the proposed levy, particularly regarding the definition of "total annual budget" and other critical issues.