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- Seeks urgent fiscal overhaul
By Adewale Sanyaolu
Nigeria’s indigenous oil producers have raised the alarm over what they described as an excessive fiscal burden on the country’s petroleum industry.
The group under the ageis of the Independent Petroleum Producers Group (IPPG) revealed that operators contend with more than 270 different taxes, fees and statutory levies.
Chairman of IPPG, Adegbite Falade, stated this in his keynote address at the opening of the 2026 NOG Energy Week in Abuja.
He said a situation where oil firms pay as much as 270 different types of taxes and levies discourages investment and threatens the viability of many projects.
Falade said while recent government reforms have improved investor confidence, the multiplicity of charges imposed by different government agencies risks undermining those gains.
“Today, the Nigerian oil and gas industry remains the most taxed and levied in the country, and perhaps globally, with over 270 separate fees, taxes and levies,” he said.
According to him, the cumulative burden of these charges has begun to outweigh the incentives introduced under the Petroleum Industry Act (PIA), particularly for smaller indigenous operators managing mature oil assets.
He warned that the situation could force some operators to abandon projects, urging the Federal Government to harmonise the various charges into a transparent and globally competitive fiscal framework.
“We therefore urge government to undertake a comprehensive harmonisation of all fees and levies across all agencies to eliminate duplication, ensure transparency in how these charges are computed and applied, and align the overall fiscal burden with the incentive-driven spirit of the PIA,” he said.
Beyond fiscal reforms, the IPPG chairman identified an emerging manpower crisis as another major threat to the industry, noting that the retirement of experienced professionals and recent international oil company divestments have created significant skills gaps that require urgent investment in workforce development.
Falade also called for a comprehensive review of the PIA five years after its enactment, to address implementation challenges and incorporate presidential directives that have improved investment conditions.
He stressed that Nigeria must shift its focus from simply increasing crude oil production to creating greater value through refining, gas processing, power generation, fertiliser production and petrochemicals.
According to him, the country’s vast hydrocarbon resources should serve as a catalyst for industrialisation rather than continued exports of raw crude and gas.
While commending the administration’s reforms that have helped secure more than $8 billion in upstream final investment decisions since 2023 and boosted oil production to about 1.6 million barrels per day, Falade maintained that sustainable growth would depend on creating a more competitive operating environment for investors.
