The Federal Government has commissioned PricewaterhouseCoopers (PwC) to conduct a global benchmark of fees and rates applicable in Nigeria’s oil and gas industry, as part of efforts to address concerns over multiple charges affecting operators.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this at the 25th NOG Energy Week in Abuja, saying the exercise was initiated following concerns raised by industry operators over the number of fees, levies and charges imposed across the sector.

The PwC benchmarking exercise comes amid ongoing efforts by stakeholders to improve the investment environment in Nigeria’s oil and gas sector, as the country seeks to sustain recent production recovery and attract further capital into the industry.

Lokpobiri said the Independent Petroleum Producers Group (IPPG), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the government came together to commission PwC to compare Nigeria’s industry charges with those obtainable in other oil-producing jurisdictions.

He added that the benchmark would examine the fees and rates in other jurisdictions to determine how Nigeria can align with global practices.

“What I’ve directed is that, PwC, do the survey, do global benchmarking. What are the fees and rates in other jurisdictions? Nigeria has committed to be globally competitive. So let us benchmark it against other jurisdictions in the world. And that report will soon be ready,” Lokpobiri said.

The minister acknowledged that the issue of multiple fees and levies had remained a concern in the industry, noting that Nigeria has over 270 fees, taxes and rents within the oil and gas sector.

His comments came as operators continue to push for a more predictable operating environment, with the Independent Petroleum Producers Group (IPPG) earlier raising concerns over the cumulative burden of fees, levies and statutory charges on investment decisions.

The IPPG Chairman, Adegbite Falade, said the industry remained the most taxed and levied in the country, warning that the burden could affect project viability, especially for smaller producers and operators of mature assets.

Falade said the industry required a streamlined and competitive cost environment to support investment and sustain production growth.