Abstract Title: | A Comparative Analysis of Nigeria Petroleum Fiscal Systems Using Royalty and Tax Optimization Models to Drive Investments |
Abstract Type: | Oral |
Session Choice: | Other |
Presenter Name: | Mrs Madueke Joy Chioma |
Co-authors: | Dr Imagbe Princewill Osasunwem |
Company/Organisation: | Onaiscity Oil and Gas Nigeria Limited |
Country: | Nigeria |
Abstract Information :
The adoption of any petroleum arrangement - concessionary or contractual - is a financial issue that is centered on how costs are recovered and profits divided, which is at the heart of taxation and economic rent theories. Hence countries are expected to make the tax system attractive for the IOCs in order to encourage inward investment. The effectiveness of any petroleum arrangement depends largely on the attractiveness of its underlying tax regime which, in turn, depends on the effectiveness of its design and implementation. The uncertainty created by the non-passage of the proposed Petroleum Industry Bill (PIB) over the years has continued to impede investments in the oil and gas sector in Nigeria. Oil producers Trade Section (OPTS) which is the industry representative body for the oil and gas producing companies in Nigeria have expressed concern over the federal government’s intention to change the laws governing the oil and gas industry including the fiscal terms. The aim of the study is to critically examine whether the Nigerian petroleum tax system is appropriately designed and effectively implemented to achieve the benefits the country desires from its petroleum taxation arrangements.