The Oil and Gas (O&G) industry has continued to be the mainstay of the Nigerian economy despite Government’s best efforts at diversification into Agriculture and Mining.
Even though the sector is less than 10% of the country’s GDP, it contributes about 65% of Government revenue and 88% of Nigeria’s foreign exchange earnings. It is no wonder that happenings in the industry tend to have an impact on the other sectors of the economy. It is, therefore, important for players in the Nigerian economy to continue to be aware of developments in the O&G industry and monitor the happenings therein.
In October 2016, the Federal Government (FG) launched the 7 Big Wins Agenda with the overriding objective of creating a stable and enabling environment. The expectation is that it will maximize investment opportunities in the sector and generate increased and sustainable growth in the economy. Consequently, the Government aspired to increase daily oil production to 2.8 million barrels (reduced from the 4 million barrels the government had previously set as its 2010 vision). The Government also resolved to transform the country from an oil-based economy to a gas-based economy by developing gas infrastructure, commercializing gas flare, implementing a gas commercial framework and maximizing the use of gas to power economic development.
There is no doubt that the Government is working to achieve the objectives of the 7 Big Wins Agenda. This Newsletter highlights some of the recent tax and regulatory developments in the sector.
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