News

Oil Producers Raise Alarm Over 270 Taxes, Urge FG To Ease Regulatory Burden


Nigeria's independent oil producers have expressed concern over what they describe as an excessive tax regime, warning that the proliferation of taxes, levies and regulatory charges is increasing the cost of crude oil production and weakening the country's competitiveness.

The concerns were raised during the 2026 Nigeria Oil and Gas (NOG) Energy Week, where the Group Chief Executive Officer of Aradel Holdings and Chairman of the Independent Petroleum Producers Group (IPPG), Adegbite Falade, said operators currently contend with more than 270 different taxes, fees and charges imposed by various government agencies.

According to him, the cumulative financial and administrative burden is gradually eroding the incentives introduced under the Petroleum Industry Act (PIA), which was designed to attract investment into Nigeria's oil and gas sector.

Falade noted that Nigeria missed valuable opportunities to boost revenue during recent global energy disruptions because the country lacked sufficient production capacity.

He recalled that the Russia-Ukraine conflict disrupted global energy markets and created increased demand for alternative sources of gas and refined petroleum products. Despite possessing one of the world's largest gas reserves, he said Nigeria was unable to fully benefit because infrastructure limitations and delayed investment decisions constrained production.

He added that a similar opportunity emerged during tensions involving the United States, Iran and the wider Middle East earlier this year, when international crude oil prices rose significantly above Nigeria's budget benchmark. However, he said limited production capacity prevented the country from taking full advantage of the favourable market conditions.

Falade stressed that Nigeria must prioritise strategic investments in infrastructure to improve production capacity and position itself to benefit from future developments in the global energy market.

He pointed to the Dangote Refinery as an example of the value of making bold, long-term investments, urging government and industry stakeholders to strengthen partnerships that will expand production and improve infrastructure.

Despite the challenges, he acknowledged recent improvements in the sector, attributing the gains to stronger collaboration among the Federal Government, regulatory agencies, security institutions, host communities and industry operators.

According to him, Nigeria's crude oil production has recovered from levels below one million barrels per day recorded a few years ago to an average of about 1.6 million barrels per day between January and May, with May production exceeding the country's OPEC quota for the first time in almost a year.

Falade also highlighted renewed investor confidence, stating that the current administration has attracted more than $8 billion in upstream Final Investment Decisions (FIDs) since 2023. These include major projects by Shell and TotalEnergies, while 28 field development plans valued at approximately $18.2 billion were approved in 2025, unlocking an estimated 1.4 billion barrels of crude oil and 5.4 trillion cubic feet of natural gas.

Responding to the industry's concerns, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, assured stakeholders that the Federal Government is taking concrete steps to simplify the country's fiscal framework.

He disclosed that the government has engaged PricewaterhouseCoopers (PwC), working alongside the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to compare Nigeria's fiscal charges with those of other oil-producing countries.

According to the minister, the objective is to make Nigeria's petroleum industry more competitive and attractive to investors. Lokpobiri explained that while operators currently face about 270 separate taxes and regulatory charges, many generate only minimal revenue individually but create unnecessary administrative bottlenecks through multiple invoicing and compliance requirements.

He said the government is considering consolidating many of the charges into a simplified structure that will reduce bureaucracy without affecting government revenue.

The minister expressed confidence that the outcome of the ongoing benchmarking exercise would provide lasting solutions to the issue and further improve the investment climate in Nigeria's oil and gas industry.

Comments

Post a Comment

Popular posts from this blog

News

Image
FMC Keffi Seeks Help In Identifying Unconscious Road Accident Victim The Federal Medical Centre (FMC), Keffi, has called on members of the public to help identify an unconscious patient currently receiving treatment at the hospital’s Accident and Emergency Department. According to a statement signed by Aminu Usman Sarki, on behalf of the Head of Public Relations and Protocol, the patient, identified as Sanusi Abass, a middle-aged man, was brought to the hospital around 2:00 p.m. yesterday by officials of the Federal Road Safety Corps (FRSC) after a road traffic accident along the Keffi–Abuja expressway. Mr. Sarki disclosed that while the patient is showing signs of improvement, he remains unconscious and unable to communicate any personal details or next of kin information. Members of the public who may recognize the patient or have information about his family are urged to contact the hospital’s Public Relations Office or visit the Accident and Emergency Department for fur...
Read more

News

Image
Tension Still In Udege-Mbeki As Missing Young Man’s Body Is Found In Paddock Lake The body of Abdulmalik Adamu Beki, a young man from Udege-Mbeki community in Nasarawa State who had been missing since Sunday night, has been discovered at a popular old lake known as Paddock. Abdulmalik was declared missing after he reportedly left his friends at a mining site late Sunday night and did not return. His disappearance had sparked concern among residents and fellow youths in the community. His remains were later found at Paddock, an old lake said to have been excavated over a century ago by a previous mining company. Historically, the lake served as a reservoir and processing point for washing columbite, tin, and other solid minerals explored in the area during early mining operations. However, the discovery of his body has heightened tension in the community. Some residents, particularly youths, have raised suspicions over the circumstances surrounding his death. They contend th...
Read more

News

Image
Nasarawa Government Hints At Imminent Announcement Of New Osu Ajiri  There are strong indications that the Nasarawa State Government may announce a new Osu Ajiri of Edege Chiefdom anytime tomorrow, following a statement credited to Governor Abdullahi A. Sule at Maraba-Udege, the headquarters of Edege Area Administrative Council. The governor made the declaration at the Council Secretariat where he met with victims of the recent attacks across Gidan Ogiri, Akyawa-Baka, Udegen-Kasa, Apura Adagba and Itara communities, in a show of solidarity and concern over the security situation in the area. The development comes months after an election for the stool was conducted on January 15 this year by the Nasarawa State Ministry of Local Government and Chieftaincy Affairs. However, the outcome of that exercise has remained controversial and was never officially announced by the authorities. Sources suggest that the delay in declaring the result may not be unconnected to disputes ...
Read more