The Federal Government has commissioned global professional services firm PricewaterhouseCoopers (PwC) to undertake a comprehensive benchmarking of the more than 270 fees, taxes and statutory charges imposed on Nigeria’s oil and gas operators.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, disclosed the development on Tuesday at the 25th Nigeria Oil & Gas (NOG) Energy Week in Abuja.
According to the minister, the exercise is aimed at harmonising multiple charges within the industry and improving Nigeria’s competitiveness as an investment destination.
Lokpobiri explained that although many of the fees are relatively small in monetary value, the administrative burden associated with processing hundreds of separate payments has become a major obstacle for investors.
He said operators had consistently complained that the paperwork required to process minor statutory payments was the same as that required for million-dollar transactions.
“It is true that Nigeria has over 270 fees, taxes and rents in the oil and gas sector, but we are already taking steps to address the challenge,” the minister said.
He explained that the Oil Producers Trade Section (OPTS) had earlier raised concerns over the multiplicity of charges, prompting the government to direct the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and industry stakeholders to work with PwC on a global benchmarking exercise.
According to Lokpobiri, the study will compare Nigeria’s fiscal regime with those of competing oil-producing jurisdictions and recommend a more efficient framework capable of attracting greater investment into the sector.
He expressed confidence that the outcome would simplify payment processes, reduce regulatory bottlenecks and improve the ease of doing business.
The minister also disclosed that Nigeria’s crude oil production, including condensate, had risen above 1.8 million barrels per day, while active drilling rigs had increased from about 14 in 2023 to more than 60.
He attributed the improvement to the implementation of the Petroleum Industry Act, policy reforms introduced by the administration of President Bola Tinubu and renewed investor confidence in the country’s petroleum sector.
Lokpobiri maintained that the government remains committed to restoring Nigeria’s production capacity to 2.5 million barrels per day through sustained investments and regulatory reforms.
