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FG Commissions PwC to Review 270 Oil Taxes
The Federal Government has begun efforts to streamline more than 270 taxes, levies, and statutory charges imposed on Nigeria’s oil and gas industry, commissioning PwC to conduct a global benchmarking of the country’s fiscal regime.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, disclosed this at the opening of the 2026 NOG Energy Week in Abuja, following complaints from indigenous producers about excessive charges.
Chairman of the Independent Petroleum Producers Group (IPPG), Adegbite Falade, described Nigeria’s oil sector as “perhaps the most taxed in the world,” warning that the cumulative burden was eroding competitiveness and discouraging investment.
Lokpobiri admitted the concerns were valid, noting, “It’s been a major concern that Nigeria has over 270 fees, taxes and rents in this sector. It is true. But that doesn’t mean we’re not doing something about it.”
He explained that many charges were small but required lengthy paperwork, forcing operators to process hundreds of invoices.
“Why don’t we group all together? If I’m paying, can’t I pay everything once instead of making the company process 270 invoices?” he asked.
The PwC review will compare Nigeria’s fiscal charges with those of competing oil-producing countries and guide reforms to make the industry more globally competitive.
Falade warned that the burden of multiple fees was undermining incentives introduced under the Petroleum Industry Act (PIA), threatening the viability of smaller producers and mature assets.
He urged government to harmonise charges across agencies to eliminate duplication and improve transparency.
Lokpobiri assured stakeholders that the Tinubu administration was committed to addressing genuine industry concerns, saying the benchmarking exercise would help resolve the issue “once and for all.”
