…Tax Reform Bills will drive Nigeria toward $1trn economy — Senate, NNPC
By Seun Ibiyemi
President Bola Ahmed Tinubu on Tuesday stated that Nigeria’s current tax reform policies will attract both local and international investors. The reforms, he said, are designed to simplify the country’s tax regulations, offer incentives, and create a more transparent and predictable fiscal framework.
Speaking at the 2025 Nigerian International Energy Summit (NIES) in Abuja, Tinubu highlighted that the reforms are intended to phase out barriers to entry and support business growth across various sectors in the country.
Represented by the Minister of State for Finance, Dr. Doris Aniete, Tinubu remarked, “As many of you are aware, we are currently implementing a series of comprehensive reforms in our fiscal and tax policies. These reforms are designed to create a more business-friendly environment and attract both local and international investments. By simplifying our tax regulations, offering incentives, and ensuring a more transparent and predictable fiscal framework, we aim to remove barriers to entry and support the growth of businesses in Nigeria.”
He added that these measures would not only facilitate easier investment and operation for companies but would also stimulate economic development, create jobs, and enhance the overall prosperity of the nation.
The theme of the summit was “Bridging Continents: Connecting Investors Worldwide With Africa’s Energy Potential.”
Tinubu also outlined the promising investment opportunities within Nigeria’s energy sector, particularly in oil and gas exploration. He emphasised that Nigeria offers unique prospects for investors to explore and develop new oil blocks. He noted, “Our commitment to improving security in oil and gas producing regions and streamlining regulatory processes has created a conducive environment for investment.”
In addition, Tinubu discussed the country’s focus on renewable energy, stating that Nigeria is committed to diversifying its energy mix, which presents significant opportunities in solar, wind, and hydropower projects. He also highlighted the government’s Decade of Gas initiative, stressing the strategic importance of natural gas as a transition fuel and offering opportunities in gas production and infrastructure development.
Furthermore, Tinubu pointed to opportunities in domestic refining and petrochemical development, particularly with the revival of domestic refineries and the establishment of new petrochemical plants. With the forthcoming operation of the Nigerian National Petroleum Corporation (NNPC) refineries, the country is expected to significantly increase refining capacity, reducing costs and providing more affordable products to Nigerians.
He assured stakeholders that the government would continue to remove bottlenecks and red tape that hinder investments. “We are seeing more investment flow through the creation of enabling environments, regulations, and policies to support your investment,” he said.
The President also discussed ongoing efforts to expand power generation and improve transmission infrastructure, presenting further investment opportunities in both conventional and renewable energy sources. He added that Nigeria’s focus on increasing short-term renewable energy aligns with global trends, offering sustainable investment prospects.
Regarding hydrogen, Tinubu revealed that Nigeria is actively developing a hydrogen policy aimed at attracting investors. He highlighted the nation’s commitment to integrating both blue and green hydrogen into the energy mix, leveraging its strategic geographic position and natural resources.
Tinubu further encouraged stakeholders to participate in Nigeria’s hydrogen journey and explore investment opportunities in other critical energy minerals. He noted that Nigeria’s substantial deposits of copper, lithium, nickel, cobalt, and rare earth minerals—essential for clean energy technologies—offer significant investment potential. The government, he added, plans to build local refining capacities for these resources to ensure more value addition and revenue generation.
In his address, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, reassured stakeholders that International Oil Companies (IOCs) are not leaving Nigeria. He explained that while some companies are migrating to deepwater offshore operations, they remain committed to Nigeria, confirming that the country remains an attractive investment destination.
Lokpobiri highlighted that out of the four Final Investment Decisions (FIDs) taken in the African oil and gas industry, three were made in Nigeria, and $20 billion in investments is expected to flow into the country soon. He also announced that the African Energy Bank, headquartered in Nigeria, will begin operations in the first quarter of 2025.
Recalling his recent experience in Davos, Lokpobiri noted that while there was an offer for loans for oil and gas, he rejected it, emphasising that Nigeria prefers investment over loans at this time.
The Minister credited the progress in the sector to the Executive Orders issued by President Tinubu in the previous year and urged stakeholders to prioritise energy security before focusing on the energy transition.
…Tax Reform Bills will drive Nigeria toward $1trn economy — Senate, NNPC
Also, the Senate has stated that the proposed Tax Reform Bills will play a crucial role in helping Nigeria achieve the $1 trillion economy goal set by President Bola Ahmed Tinubu’s administration.
Chairman of the Senate Committee on Finance, Senator Sani Musa, made this known on Tuesday while addressing reporters in Abuja.
He revealed that the committee would soon hold a three-day retreat to review stakeholder memoranda submitted on the Bills.
Meanwhile, Senator Abdul Ningi, Chairman of the Senate Committee on Sports, acknowledged that the Bills have taken on a national dimension.
Initially opposed to the reforms, Ningi noted that the intervention of state governors played a key role in facilitating the ongoing public hearing, allowing critical stakeholders to voice their opinions and contribute to the legislative process.
…Nigeria can surpass $1trn GDP target — NNPCL boss Kyari
The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Malam Mele Kyari, has stated that Nigeria has the potential to exceed a $1 trillion Gross Domestic Product (GDP).
Speaking at the ongoing 2025 Nigerian International Energy Summit (NIES) in Abuja on Tuesday, Kyari described the $1 trillion GDP goal as too modest, emphasising that the oil and gas sector remains the key driver of the nation’s economic expansion.
Kyari noted that the development of gas infrastructure and domestic gas delivery is already positioning Nigeria to surpass this target.
In response to remarks made by Mr. Abdurasak Isa, Chairman of the Independent Petroleum Producers Group (IPPG), Kyari said, “I hear the ambassador say we are aiming for a $1 trillion GDP. I think that’s too small. That is not very ambitious. I believe we can do better than this. In fact, $1 trillion is maybe the balance sheet of one company somewhere.
“We will do better than this. This country has the potential for much more, and this industry will surely be the biggest contributor to this development. That is already happening with the ongoing efforts in building gas infrastructure in our country and delivering gas into the domestic market.”
Kyari further explained that gas is not only a transition fuel, but also a valuable alternative fuel. He attributed the recent investment decisions in the sector to the Executive Order of President Tinubu, which has facilitated regulatory changes, easing the business environment and serving as an incentive for investment.
On the ongoing tax reforms in Nigeria, Kyari acknowledged that industry players often complain not just about the introduction of taxes, but the bureaucracy involved in the payment process. However, he praised the current reforms for “clarifying issues, easing the administration of taxes, reducing the number of taxes, and ultimately allowing investors to have a clearer long-term outlook on their investments and potential returns.”
Kyari highlighted that operators in the oil and gas industry are already seeing returns on their investments, thanks to a stable environment. He said, “Investors have seen that when they put their money in our country today, particularly in our oil and gas businesses, they can expect to get their money back. They can get returns, and there is also a stable physical environment that provides a long-term view for their investments. And I’m sure that’s why we are seeing a number of investors returning to Nigeria.”
Meanwhile, Haitham Al Ghais, the Secretary General of the Organization of Petroleum Exporting Countries (OPEC), stated that the investment needs of the global oil industry are substantial, with cumulative investment requirements amounting to $17.4 trillion from now until 2050.
Al Ghais noted that Africa is home to five of the top 30 oil-producing countries, and its proven oil reserves amount to around 120 billion barrels. He urged the summit to focus on how the continent can unlock its full potential and create an environment conducive to attracting the capital necessary to fully realise this potential.
He also highlighted OPEC’s commitment to contributing to long-term stability in the oil market, adding, “We do this because we know that stability is a prerequisite for investors to plan effectively in the short, medium, and long term.”