The Federal Government has launched plans to simplify the tax and levy structure in Nigeria’s oil and gas industry, following longstanding complaints from operators about the large number of statutory charges imposed across the sector.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, announced the initiative on Tuesday during the opening of the 2026 NOG Energy Week in Abuja. He said the government has engaged global consulting firm PwC to conduct an international review of Nigeria’s fiscal regime and compare it with those of other oil-producing countries.
According to the minister, the study is expected to provide recommendations that will help make Nigeria’s petroleum industry more competitive and attractive to investors.
Lokpobiri acknowledged concerns raised by industry stakeholders over the existence of more than 270 taxes, levies and regulatory charges, saying the government had already begun working with relevant stakeholders to address the issue.
He explained that many of the charges are relatively small in value but still require separate documentation and approval processes, creating unnecessary administrative costs for companies.
The minister noted that operators have argued that processing hundreds of individual invoices for minor payments increases compliance costs and reduces operational efficiency. He said the ongoing review would examine whether these charges can be consolidated to simplify payment procedures.
The benchmarking exercise is being carried out in collaboration with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Independent Petroleum Producers Group (IPPG) and the Oil Producers Trade Section (OPTS).
Lokpobiri said the report, expected to be completed soon, will compare Nigeria’s tax and fee structure with international best practices and guide reforms aimed at strengthening the country’s competitiveness in the global energy industry.
He also stated that the administration of President Bola Tinubu has remained open to addressing concerns raised by investors and industry players through consultations and policy adjustments.
Earlier, IPPG Chairman Adegbite Falade warned that the large number of taxes and statutory charges imposed by different government agencies is undermining the benefits of reforms introduced under the Petroleum Industry Act (PIA).
Falade said the cumulative financial burden is making it more difficult for operators, particularly indigenous producers and companies managing mature oil fields, to sustain investments and maintain profitable operations. He cautioned that the current fiscal environment could discourage new investments and increase the risk of asset abandonment.
He urged the government to harmonise the various taxes and levies across agencies, improve transparency in how the charges are calculated, and create a more predictable cost structure that supports growth, job creation and increased oil production.
The Federal Government expects the outcome of the PwC review to serve as the basis for reforms that will simplify the industry’s fiscal framework while improving Nigeria’s appeal as an investment destination for oil and gas projects.
