The Independent Petroleum Producers Group (IPPG) has decried the sheer weight and multiplicity of fees, levies, and statutory charges imposed across the Nigerian oil and gas value chain, stating that the fees from multiple agencies threaten to outpace fiscal incentives introduced under the Petroleum Industry Act to attract and retain investment.
Speaking at the NOG conference in Abuja on Tuesday, Adegbite Falade, chairman, IPPG, said that the Nigerian oil and gas industry remains the most taxed and levied in the country, and perhaps globally, with over 270 separate fees, taxes and levies.
He explained that for smaller producers and operators of mature assets with thinner margins, this burden of multiple fees is a direct threat to project viability, investment decisions, and in some cases, asset abandonment.
For him, it has become imperative for the government to shift from being a collector to a catalyst.
“These fees from multiple agencies and the cumulative burden threaten to outpace fiscal incentives introduced under the Petroleum Industry Act to attract and retain investment.
