President Muhammadu Buhari in London, United Kingdom assented to the Bill amending Deep Offshore (and Inland Basin Production Sharing Contract) Bill into law, assisted by his Chief of Staff  Abba Kyari on Monday.

The amended Bill will generate an estimated $500m in additional revenues for the FG in 2020, and over $1bn from 2021, according to a tweet from the Presidency.

Malam Garba Shehu, the President’s Senior Special Assistant on Media and Publicity, in a statement in Abuja said the Act, among other things, give effect to certain fiscal incentives given to the oil and gas companies operating in the Deep Offshore and Inland Basin areas under production sharing contracts between the Nigerian National Petroleum Corporation or other companies holding oil prospecting licenses or oil mining leases and various petroleum exploration and production companies.

After signing the Bill into law, the President was quoted to have said: “Today is an important day for all Nigerians –but particularly the young generation.

“Today I signed into law the amended Deep Offshore Act. Nigeria will now receive its fair, rightful and equitable share of income from our own natural resources for the first time since 2003.

“In that year oil prices began a steep increase to double –and at times –triple over the following decade.

“All this time Nigeria has failed to secure its equitable share of the proceeds of oil production, for all attempts to amend the law on the distribution of income have failed. That is, until today.

“Rapid reductions in the cost of exploration, extraction and maintenance of oil fields had occurred over these 25 years, at the same time as sales prices have risen.

“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.

“Today this changes. For the first time under our amended law, 200 million Nigerians will start to receive a fair return on the surfeit of resources of our lands. Increased income will allow for new hospitals, schools, infrastructure and jobs.

“Today marks a new and beneficial relationship with our oil company partners: one that benefits all – starting with the Nigerian people.”