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Nigeria boosts tax breaks to lure $50bn in deep water oil
['Nduka Orjinmo', 'Aug', 'Ciaran Ryan', 'Godfrey Marawanyika', 'Antony Sguazzin', 'Antoinette Slabbert']
Moneyweb
Nigeria is offering sweeping tax incentives to attract as much as $50 billion into deep water oil and gas projects and revive capital-intensive developments that have stalled for decades.
An executive order signed by President Bola Tinubu grants tax credits of as much as $11.50 per barrel for new deep water oil projects, starting with Shell Plc’s Bonga Southwest Aparo development, confirming earlier Bloomberg reporting.
It also provides a credit of as much as $8 per barrel of oil equivalent for new non-associated gas projects.
The incentives will remain in place until December 31, 2029, the presidency said in a statement on Tuesday.
This incentive reflects Nigeria’s determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships, Tinubu said.