Nigeria’s PIB Fiscus is More Competitive Than Angola and Algeria

The Nigerian fiscal regime is still very competitive in the PIB period, compared with the countries in the Gulf Of Guinea and North Africa.

The PIB (Petroleum Industry Bill) is a comprehensive legislation that aims, in part, to increase Nigerian government take from exploitation of the country’s resources. International Oil Companies have balked at some of the fiscal provisions, arguing that they are less competitive than comparative fiscal regimes on the continent. But a Schlumberger report, released during the last edition of the Nigerian Association

Petroleum Exploration (NAPE) Conference in Abuja, suggests that the complaints are exaggerated. Whereas overall government take in Algeria and Angola each is about 90%, at $70 per barrel, the Nigerian government will receive at most 80% in the PIB era, according to the oil service company.

Highlights of the Schlumberger Report

Onshore and shallow water

Pre PIB                       PIB

PPT 85%                     NHT-50%, CITA -30%

Inland Basins

Pre PIB                       PIB

PPT 5%                       NHT 3-5%, CITA-30%

Under the PIB, a lot of tax is gone..


Pre PIB                       PIB

Gas Capex is               Gas capex is charged

charged against           against gas reserves

oil reserves


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