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ARTICLE · 01 DECEMBER 2008

Developments In Nigeria´s Tax Regime For Gas Utilization Projects

Abraham & Co
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Nigeria is currently the largest oil producing country in Sub-Saharan Africa and the tenth largest producer in the world. The oil and gas sector accounts for about 60% of government's total revenue and more than 90% of its foreign exchange receipts upon which all tiers of government depend.

NigeriaEnergy and Natural Resources
Lolade Ososami
Lolade Ososami

Introduction

Nigeria produces about two million barrels of crude oil per day and is ranked as the eleventh1 largest producer in the world. The oil and gas sector accounts for about 60% of government's total revenue and more than 90% of its foreign exchange receipts upon which all tiers of government depend. Nigerian oil reserves are now estimated at 25 billion barrels2. Crude oil production in Nigeria averages about 2million barrels per day ('bpd'), which is about 60% of the total African production – with Angola coming second at about 1.7m bpd. Based on an estimation of Nigeria's oil reserves it is believed that Nigeria will conservatively remain a producer of petroleum for another forty to fifty years.

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