Economy

Nigeria Secures $16 Billion Oil Sector Investment Boost

Published

1 year ago

June 27, 2025

Nigeria’s oil and gas sector secures $16bn in investments between 2023 and 2025, driven by reforms, tax incentives and improved regulatory efficiency

Nigeria oil sector investment commitments have surged past $16 billion between 2023 and 2025, a milestone the Nigerian Upstream Petroleum Regulatory Commission attributes to recent regulatory reforms and policy overhauls.

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The Commission Chief Executive, Engr. Gbenga Komolafe, made this disclosure during the Nigeria-China Sustainable Bilateral Business, Trade, and Investment Summit held in Lagos.

According to a statement released by NUPRC, Komolafe outlined how the drastic reduction in contracting cycles from 36 to six months, along with strategic tax incentives and the elimination of fiscal bottlenecks, played a pivotal role in restoring investor confidence.

“Transformative reforms have reshaped Nigeria’s oil and gas sector, improving operational efficiency and global competitiveness,” Komolafe said.

He emphasised that international energy majors like Shell, TotalEnergies and Seplat, alongside a strong cohort of indigenous companies, have not only sustained their operations but are scaling up activities in Nigeria’s energy space.

With an estimated 210.54 trillion cubic feet of natural gas—the largest in Africa—and 37.28 billion barrels of crude oil, Nigeria continues to stand out as a central player in the global energy industry.

Komolafe highlighted current daily production levels at approximately 1.75 million barrels of crude oil and seven billion standard cubic feet of gas. He added that targets have been set to raise production to three million barrels and 12 billion cubic feet respectively.

The Commission chief credited the 2021 Petroleum Industry Act as a cornerstone of the ongoing transformation, pointing to its role in fostering a stable, transparent and investor-friendly business environment.

He said licensing rounds are now conducted through competitive bidding and supported by digital platforms, which further enhance transparency and investor trust.

Nigeria’s commitment to sustainable and clean energy transition remains evident in programmes such as the Decade of Gas initiative, the Presidential Compressed Natural Gas programme, and the Gas Flare Commercialisation Programme.

These projects aim to curb emissions and support the global shift towards lower carbon energy options.

Komolafe also highlighted the array of opportunities available in exploration, financing, project development and technical services, bolstered by appealing incentives like zero hydrocarbon tax, lower royalties, and simplified operational frameworks.

Quoting President Bola Tinubu, he concluded, “Nigeria must not only be open for business; Nigeria must be irresistible for investment.”

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He called on both local and foreign investors to seize the moment and become key players in shaping the nation’s energy future.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

1 day ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.