The Independent Petroleum Producers Group (IPPG) has called for a comprehensive review of the taxes and levies imposed on oil industry operators in Nigeria, arguing that the current fiscal regime is unsustainable for domestic firms.
The group contends that the cumulative weight of these charges is eroding profitability and discouraging the capital expenditure necessary to maintain and expand production capacity.
This appeal comes as Nigeria seeks to position itself more prominently within the global energy landscape, having recently joined the International Energy Agency (IEA) as an associate member.
However, domestic producers argue that this strategic milestone is undermined by a crippling tax structure that fails to incentivize investment.
The IPPG’s stance highlights a growing tension between government revenue needs and the operational realities of indigenous oil companies, which often operate with thinner margins than their international counterparts.
The call for reform adds to a broader narrative of frustration within Nigeria’s energy sector, where successive administrations have been urged to move beyond promotional roadshows and deliver tangible structural reforms.