Desirable Revenue Management Practices For A Sustainable Oil And Gas Industry In Uganda

ABSTRACT

This study was aimed at examining the desirable revenue management practices for a sustainable

oil and gas industry in Uganda which involved studying the relationship between transparency

and accountability, tax administration and contract negotiation as well as citizens’ involvement

in the Oil sector and sustainability of the sector. The researcher adopted a descriptive survey

research design to examine perceptions of 48 respondents drawn from the Oil Governance and

Management class of UTAMU, Bank of Uganda and the Ministry of Energy and Mineral

Development who were sampled by convenience and by stratification. Descriptive analysis was

used to establish the distributions of the sample on demographic variables of age, sex, level of

education, and occupation while the Pearson Rank Correlation in the MS Excel programme was

used to measure the degree of association between the two variables. Additionally, regression

analysis was also run using number analytics software to determine the strength of the model.

The study established that while transparency and accountability is a major contributor to

sustainability development of the oil sector, it has a less positive marginal effect compared to tax

administration and contract negotiation, yet a better determinant of sustainability than citizens’

involvement. Altogether, the study established that the marginal effect of instituting proper tax

administration and contract negotiation processes will have a more positively significant effect to

the sustainability of the oil resource while citizens’ involvement may not have a significant

effect. Since the Government of Uganda holds all oil, gas and sub-soil mineral assets in trust for

the nation, care must be taken in formulating taxation policies and in negotiating contracts

pertinent to oil and gas exploration and development in the country. It may also consider the

Extractive Industries Transparency Initiative (EITI) because it provides avenues for addressing

the general failure to account, transform resource wealth into sustainable development, i.e. the

resource curse and the associated governance problems in the extractive sector