Country Report

Nigeria upstream fiscal summary

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Nigeria awards upstream licences to foreign investors under the 2021 Petroleum Industry Act (PIA). Operators with existing licenses before the PIA became law may voluntarily convert to PIA terms. For new investors in oil operations, we expect PSCs will continue to apply, with a cost oil limit of 70%, and the production sharing of liquids based on cumulative production. Gas terms are less clear; we assume simple concession fiscal terms for gas, paying royalty and income tax.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Ring fencing
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty
    • PSC cost recovery
    • Income taxes
    • Hydrocarbon tax
    • Education tax
    • Companies income tax
    • PSC profit sharing
    • Fiscal treatment of decommissioning
    • Product pricing
    • Summary of modelled terms
  • Recent history of fiscal changes
  • Stability provisions
  • Split of the barrel and share of profit
  • Effective royalty rate and maximum government share
  • Progressivity
  • Fiscal deterrence

Tables and charts

This report includes 28 images and tables including:

  • Timeline
  • Timeline detail
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate - onshore, oil
  • Effective royalty rate - shelf, oil
  • Effective royalty rate - deepwater, oil
  • Effective royalty rate - onshore, shelf and deepwater, gas
  • Maximum government share-onshore, oil
  • Maximum government share - shelf, oil
  • Maximum government share - deepwater, oil
  • Maximum government share - onshore, shelf and deepwater, gas
  • State share versus Pre-Share IRR - oil
  • State share versus Pre-Share IRR - gas
  • Investor IRR versus Pre-Share IRR - oil
  • Investor IRR versus Pre-Share IRR - gas
  • Bonuses, rentals and fees
  • Indirect taxes
  • Production sharing - oil
  • Effective contractor production share - oil
  • Assumed terms by location- oil
  • Assumed terms by location - gas

What's included

This report contains:

  • Document

    Nigeria upstream fiscal summary

    PDF 1.14 MB