THE FLARE GAS (PREVENTION OF WASTE AND POLLUTION) REGULATIONS, 2018 – WHAT IS NEW?
According to Maikanti Baru, the Group Managing Director of the Nigerian National Petroleum Corporation, petroleum operators currently flare about 700 million standard cubic feet (“scf”) of gas per day, which could generate 5,000 megawatts of electricity daily. At about $3.81 per 1,000scf of gas and using an exchange rate of N306.35 to $1.00, Nigeria loses an economic benefit of approximately N817million daily due to gas flaring.
HIGHLIGHTS OF THE REVISED INCOME TAX (TRANSFER PRICING) REGULATIONS 2018 AND THE GUIDELINES ON TRANSFER PRICING DOCUMENTATION
The Federal Inland Revenue Service (“FIRS”), on 19 March 2018 and 20 September 2018, released the revised Income Tax (Transfer Pricing) Regulations 2018 (the “Revised TP Regulations”) and the Guidelines on Transfer Pricing Documentation (“Guidelines”) respectively.
HIGHLIGHTS OF THE BILL FOR THE REPEAL AND RE-ENACTMENT OF THE COMPANIES AND ALLIED MATTERS ACT (“CAMA”)
The Companies and Allied Matters Act (Repeal and Re-enactment) Bill (the “CAMA Bill”) 2018, which seeks to repeal the Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria 2004, was passed by the 8th Senate after its third reading on 15 May 2018. The CAMA Bill is one of the most significant business reform bills in Nigeria in over 28 years. It was introduced to the Senate on 15 June 2017 and passed by the Senate within eleven months of its introduction.
NEW REGULATIONS FOR THE REGISTRATION OF CHARGES OVER MOVABLE ASSETS AND APPOINTMENT OF CORPORATE REPRESENTATIVES
The Corporate Affairs Commission (the “Commission”), in line with its statutory mandate and ongoing reform initiatives to improve the ease of doing business and the standard of economic activities in Nigeria, has issued new guidelines. The new guidelines relate to the registration of charges over movable assets and the appointment of corporate representatives. The new guidelines took effect in April 2018.
THE JOINT OPERATING AGREEMENT – ENFORCEABILITY OF THE FORFEITURE CLAUSE
The Oil and Gas industry and in particular the exploration and production sub-sector is incredibly capital intensive and attracts a great deal of risk, such that a reasonable forecast of financial expenditure and certainty as to how to meet this is a key consideration for any forward-thinking investor in its pursuit of profit.
NIGERIAN NATIONAL ASSEMBLY PASSES THE PETROLEUM INDUSTRY GOVERNANCE BILL
Almost 2 years after its first presentation to the Nigerian Senate, the Nigerian National Assembly has passed the Petroleum Industry Governance Bill (“PIGB” or the “Bill”). The PIGB was first introduced to the Nigerian Senate on 13 April 2016 and passed by the Senate on 25 May 2017. In accordance with the Nigerian legislative process, the Bill was forwarded to the House of Representatives (the lower house of the National Assembly) for concurrence and was passed by the House of Representatives on 17 January 2018. The Bill was thereafter harmonised and passed by the National Assembly on 28 March 2018.
HIGHLIGHTS OF THE METER ASSET PROVIDER REGULATIONS, 2018
Electricity metering and attendant collection losses are well-known prevalent problems in the Nigerian Power Sector (the “Sector”). Despite the launch of the Credit Advance Payment for Metering Implementation in 2011 (“CAPMI”)1, several metering/billing systems remain in practice – most notoriously, the estimated post-paid meter reading billing system and prepaid metering system. The lack of uniformity in the metering system has caused huge collection losses and has adversely impacted the financial position of distribution companies (“DisCos”) in the Sector.
ALTERNATE DIRECTORS - THE LAW, THE PRACTICE
Section 244 of the Companies and Allied Matters Act1 (“CAMA”) defines directors of a company as persons duly appointed by the company to direct and manage the business of the company. A director owes extensive duties and statutory obligations to the company as she/he is regarded as being in a fiduciary relationship with the company. Consequently, a director is required to always act in utmost good faith and in the best interest of the company.
Suspension Of Waivers For The Manning Requirement Of The Coastal And Inland Shipping (Cabotage) Act, 2003 And Detention Of Vessels As A Result
On 19th April 2018, the Assistant Director (Western Zone), Maritime Labour Department of the Nigerian Maritime Administration and Safety Agency (“NIMASA”), informed stakeholders that following the suspension of the grant of waivers from the manning requirement of the Coastal and Inland Shipping (Cabotage) Act 2003 LFN 2004 CAP. C51 (“Cabotage Act”), vessels with foreign seafarers working onboard will be detained with effect from 1st June 2018. The suspension of the grant of waivers from..
Action to Recover Solicitor's Fees - Locus Standi and Privity Hurdle: The case of Rebold Industries Limited v. Mrs. Olubukola Magreola & 2 Ors reviewed
Under Nigerian law, one who practices a profession and renders his professional services to another at his request is entitled to receive remuneration or professional fees from the beneficiary of such services unless he voluntarily waives the payment. In the case of a legal practitioner, one of the options open to recover fees or costs due to him in his