Nigeria’s indigenous oil producers have raised concerns over what they described as an excessive tax regime in the petroleum sector, warning that more than 270 taxes, fees and statutory levies are discouraging investment and threatening the viability of oil and gas projects.
The Chairman of the Independent Petroleum Producers Group (IPPG), Adegbite Falade, disclosed his keynote address at the opening of the 2026 NOG Energy Week in Abuja.
Falade said the multiplicity of charges imposed by various government agencies has eroded the incentives introduced under the Petroleum Industry Act (PIA), particularly for indigenous operators managing mature oil assets.
“The Nigerian oil and gas industry remains one of the most taxed and levied sectors, with over 270 separate fees, taxes and levies,” he said, warning that the growing fiscal burden could force some operators to abandon projects.
He urged the Federal Government to harmonise the various taxes and levies into a transparent and globally competitive fiscal framework to eliminate duplication and improve investor confidence.
Beyond taxation, Falade identified a widening skills gap as another challenge facing the industry, attributing it to the retirement of experienced professionals and the divestment of international oil companies. He called for greater investment in workforce development and a review of the PIA, five years after its enactment, to address implementation challenges and align it with recent presidential reform directives.
He also stressed the need for Nigeria to prioritise value addition through refining, gas processing, power generation, fertiliser production and petrochemicals rather than relying on crude oil exports.
While commending the Federal Government’s reforms, which he said have attracted over $8 billion in upstream investment commitments since 2023 and increased crude oil production to about 1.6 million barrels per day, Falade maintained that sustained growth would depend on creating a more competitive and investment-friendly operating environment.
