Nigeria’s independent oil producers are pressing the government to overhaul a tax and levy system they say has grown so unwieldy it risks undoing three years of hard-won gains in attracting investment back to Africa’s largest crude exporter.
Speaking at the opening of the 25th NOG Energy Week on Tuesday, Adegbite Falade, chairman of the Independent Petroleum Producers Group, said the industry now faces more than 270 separate fees, taxes and levies imposed by multiple government agencies, a burden he called the heaviest of any sector in the country and among the highest anywhere in the world.
“The cumulative burden threatens to outpace fiscal incentives introduced under the Petroleum Industry Act,” Falade told an audience that included executives from international oil companies gathered in the capital.
He said smaller producers and operators running mature, lower-margin fields face a “direct threat” to project viability and, in some cases, risk abandoning assets
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