President Muhammadu Buhari arrives at the January UK-Africa Investment Summit in London
Nigeria endangers IOC interest for quick fiscal fix
The government’s revision of PSCs to seek more revenue from oil majors will backfire if it prompts them to reevaluate their portfolio investment priorities
The latest move by Nigeria to raise revenue from the oil industry, a law constituted in record time in November, could add up to $1.5bn to the government’s coffers over the next two years but quickly backfire in subsequent years, say participants in the country’s oil sector. Nigeria’s President Muhammadu Buhari gave executive assent to a bill amending the 1993 Deep Offshore and Inland Basin Production Sharing Contract (PSC), with the aim of increasing the governments revenue from oil production. Before the amendments, royalties ranged from 0pc to 12pc based on the water depth of the field. The new law eliminates the 0pc rate and royalties are calculated on a basis dependent on the chargeab
Also in this section
24 December 2025
As activity in the US Gulf has stagnated at a lower level, the government is taking steps to encourage fresh exploration and bolster field development work
23 December 2025
The new government has brought stability and security to the country, with the door now open to international investment
23 December 2025
A third wave of LNG supply is coming, and with it a likely oversupply of the fuel by 2028
22 December 2025
Weakening climate resolve in the developed world and rapidly growing demand in developing countries means peak oil is still a long way away
