Senate Passes Oil And Gas Free Zones Bill

The Oil and Gas Free Zones Bill passed by the Senate provides the establishment of free zones for the sector in the country and this is expected to encourage industrial development in the oil and gas industry.

One of the features of the bill is the provision of tax holiday for operators under the free zones.

The sponsor of the Bill, Sen Odion Ugbesia, said the passage of the bill into law would bring the operation of free zones in the country to international standards.

“The bill is to bring the operation of free zone to international standard,” Mr. Ugbesia said.

“The main feature is that the appointment of the chairman of the board must be subjected to senate approval.

“The other feature is that the tax holiday should be enjoyed fully by the operators of oil and gas in the industry.

“Free zones all over the world observe tax holidays that means you don’t pay tax. With this bill, we should do business without paying tax whatsoever because that is the incentive that operators in such zones enjoy and this is to encourage them.

“This in self provides the opportunity for free zones to contribute to the growth of the economy.”

He noted that the current free zones are not operating the way they should but the bill will aid in making things better.

“With this Bill I think things will change and we will begin to reap the benefits of actual free zone mechanism,” said Mr Ugbesia.

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About Unknown

Deji Sadiq, a.k.a DEJI OF LAGOS is a LASU trained Economist turned freelance journalist, a Blogger, an information strategist, a public affairs analyst and a committed activist with a passion for equal opportunities.