Oil Firms Demand PIA Review Amid Tax Burden in Nigeria

During the 2026 NOG Energy Week in Abuja, Adegbit Falad, chairman of the Independent Petroleum Producers Group, addressed the challenges facing Nigeria's upstream petroleum sector, particularly the impact of 270 different taxes and fees imposed by various government agencies. These multiple charges are eroding the investment gains anticipated from the Petroleum Industry Act (PIA), which was designed to restore investor confidence and improve crude oil production.

Despite recent reforms by President Bola Tinubu's administration, the cumulative burden of these taxes poses a significant threat to project viability and investment decisions, especially for smaller producers operating with thinner margins. Falad urged the government to harmonize fees across agencies to eliminate duplication and ensure transparency.

He also noted that Nigeria's crude oil production has improved, exceeding OPEC quotas for the first time in nearly a year, but warned that geopolitical disruptions and inadequate production capacity could hinder future growth.