The $1.4 billion PSC bill seeking to amend the deep offshore and inland basin production sharing contract (DOIBPSC) act jas been signed into law by President Muhammadu Buhari.
The bill is aimed at amending the act in a way to federal government get its benefits through reviewing the sharing formula.
If the bill is passed into law, it is believed that Nigeria would be earning an additional income of $1.4 billion annually from international oil companies operating in the country.
The much anticipated law was signed by Buhari from his residence in UK.
Through his twitter handle, Buhari described the new law as “a landmark moment for Nigeria”.
The President went on to say that Nigeria will now receive its “fair, rightful and equitable share of income from our own natural resources for the first time since 2003″
He claimed that all along, Nigeria did6 secure its equitable share of the proceeds of oil production.
Accordingto the president, all attempts to amend the law on the distribution of income failed until today.
“A combination of complicity by Nigerian politicians and feet-dragging by oil companies has, for more than a quarter-century, conspired to keep taxes to the barest minimum above $20 per barrel – even as now the price is some three times the value.
Buhari said all these changes today, as with the new law, 200 million Nigerians will start to receive a fair return on the surfeit of resources of the country
He said the Increased income will allow for new hospitals, schools, infrastructure and jobs.”