Regulators Warn Against New Levy on Oil Companies

On Wednesday, oil industry regulators and operators raised concerns regarding a proposed amendment to the South-South Development Commission (Establishment) Act, 2025, during a public hearing organized by the House of Representatives Committee on the South-South Development Commission. The amendment suggests that oil and gas producing companies contribute three percent of their total annual budgets to the Commission to support regional development.

Hon. Julius Pondi, the committee chairman, emphasized the importance of stakeholder input, especially after key participants missed the initial session on July 8 due to the Nigerian Oil and Gas Conference.

Mrs. Oritsemeyiwa Eyesan, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, represented by Kingsley Chikwendu, expressed support for a sustainable funding framework but cautioned against the levy, citing undefined terms in the bill that could lead to financial uncertainty for operators already facing multiple statutory obligations.