Key points
- Independent Petroleum Producers Group wants government to harmonise more than 270 taxes, fees and levies imposed on the oil and gas industry.
- The group is calling for a comprehensive review of the Petroleum Industry Act (PIA) five years after its enactment.
- IPPG says recent reforms have boosted production and attracted over $8 billion in upstream investments since 2023.
- The association also wants greater investment in talent, gas infrastructure and value-added processing.
Main story
The Independent Petroleum Producers Group (IPPG) has called on the Federal Government to streamline the numerous taxes and levies imposed on Nigeria’s oil and gas industry and undertake a comprehensive review of the Petroleum Industry Act (PIA) to strengthen the sector’s competitiveness.
The Chairman of IPPG and Managing Director and Chief Executive Officer of Aradel Holdings Plc, Mr Adegbite Falade, made the call on Tuesday while delivering the keynote address at the opening of the 25th Nigeria Oil and Gas (NOG) Energy Week in Abuja.
Falade identified four priority areas requiring urgent attention, namely the harmonisation of multiple taxes and levies, increased investment in human capital, stronger integration across the upstream, midstream and downstream segments, and a review of the PIA.
He argued that the industry currently faces an excessive fiscal burden, with more than 270 different taxes, fees and levies imposed by various government agencies, a situation he said undermines project economics and discourages investment.
According to him, the cumulative effect of these charges threatens to offset the fiscal incentives introduced under the PIA, particularly for smaller producers and operators of mature assets with narrower profit margins.
Falade urged the government to consolidate the various charges into a more transparent and efficient framework that eliminates duplication while aligning the overall fiscal regime with the investment objectives of the PIA.
He also advocated a comprehensive review of the legislation five years after its enactment, saying the exercise should address implementation challenges, clarify ambiguities and incorporate subsequent presidential directives and executive orders affecting the industry.
Despite these concerns, Falade acknowledged that reforms introduced under President Bola Tinubu’s administration had improved the investment climate by shortening contracting timelines, enhancing fiscal attractiveness, unlocking capital and addressing longstanding operational bottlenecks.
He said the reforms helped raise Nigeria’s crude oil production from below one million barrels per day a few years ago to an average of about 1.6 million barrels per day between January and May, with May production exceeding the country’s OPEC quota for the first time in nearly a year.
He added that Nigeria has secured more than $8 billion in upstream Final Investment Decisions (FIDs) since 2023, while approvals granted for 28 field development plans valued at $18.2 billion in 2025 unlocked an estimated 1.4 billion barrels of oil and 5.4 trillion cubic feet of gas.
Falade, however, said Nigeria had been unable to fully capitalise on opportunities created by recent geopolitical developments because of inadequate production capacity and delayed investments.
He stressed the need for greater investment in infrastructure to enable the country respond more effectively to future shifts in global energy markets.
The IPPG chairman also urged Nigeria to focus on creating more value from its hydrocarbon resources by expanding domestic refining, gas processing, petrochemical production, fertiliser manufacturing and other industrial activities instead of relying primarily on crude oil exports.
He warned of an emerging manpower challenge arising from the retirement of experienced professionals, international oil company divestments and evolving technological requirements, calling on operators to increase investment in recruiting, training and developing Nigerian talent.
On gas development, Falade advocated stronger integration across the industry’s value chain, increased domestic gas utilisation, restoration of supplies to existing LNG facilities and sustained investment in gas infrastructure.
He also urged stakeholders to work together to improve security, expand critical oil and gas infrastructure and build a more competitive operating environment for both domestic and export markets.
The issues
Although recent reforms have improved investment sentiment in Nigeria’s petroleum sector, industry operators argue that multiple taxes, regulatory overlaps and implementation challenges continue to reduce competitiveness. The IPPG believes simplifying the fiscal regime, strengthening infrastructure and investing in local capacity will be critical to attracting more investment and maximising the country’s oil and gas resources.
What’s being said
“The Nigerian oil and gas industry remains the most taxed and levied in the country and perhaps globally, with more than 270 separate fees, taxes and levies.” — Adegbite Falade, Chairman, IPPG
“The next geopolitical shock is not a question of if, but when. We must prioritise investment in capacity and infrastructure so that Nigeria can seize future opportunities.” — Adegbite Falade
What’s next
The IPPG is urging the Federal Government to review the Petroleum Industry Act, harmonise taxes and levies, strengthen infrastructure and accelerate investments aimed at improving Nigeria’s competitiveness across the oil and gas value chain.
Bottom line
Nigeria’s independent oil producers say recent reforms are yielding results, but argue that reducing the industry’s tax burden and updating the Petroleum Industry Act are essential to sustaining investment and unlocking future growth.
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