The Hidden Costs of Nigerian Oil and Gas Contractor’s Permits

By George NWOGU | BIZVILLE PROJECT MANAGEMENT Limited

Dear Industry Colleagues and Partners,

Once you cross certain Nigerian oil and gas contractor’s permits, you embark on a journey of no return to perpetual liabilities for your company. There were permits I had to pay for during my previous years of non-operations as I was in paid employment while the permits fees are accumulating.

Some of these permits, like those for PENCOM and ITF, require payment for three years, even when full business operations have not yet commenced. Unfortunately, I was only aware of NSITF and Tax Clearance at the time. Paying these fees without earning much can test your patience, especially when dealing with non-paying customers.

For example, you cannot survive on a 500K NGN salary when you have liabilities of 500K NGN hanging over your head as a company owner. The only silver lining is that these bills are in depreciating NGN when there are endless potentials to bid in USD as other global companies you are competing with. Otherwise, they could become impossible to pay.

The fact remains that if I knew all these, I wouldn't have ventured. The beauty of venturing is the fact that you get to learn so much about regulatory requirements in your country that improves your potential of assisting a startup with a much more financial muscles as their director (COO or CEO).

I also feel It's what qualifies me to write a book "10Days Mini-MBA for Nigerian Oil and Energy Professionals” by #BIZVILLEPM! ???? "If e easy, my guy, go run am". #Cazzo!

Engr. George Nwogu,

COO, BIZVILLE PROJECT MANAGEMENT Limited

#OilAndGasPermits #NigerianContractors #BusinessLiabilities #EntrepreneurshipChallenges #Nigeria #GeorgeNWOGU #BIZVILLEPM ????

Motto: Humanity First, then Smart and Green. ??