Nigeria: Proposed tax incentives for oil and gas sector
Proposed tax credit of 15% for R&D activities that lead to new or improved products
The Nigerian Oil and Gas Industry Content Development (NOGICD) Bill, 2023—currently pending before the National Assembly—seeks to repeal prior legislation, with an aim to enhance Nigerian content in the oil and gas sector, including the introduction of new tax incentives.
The NOGICD Bill proposes several tax changes, including the introduction of a Nigerian Content Research and Development Fund requiring operators to contribute 0.5% of their taxable annual profit. Additionally, the bill proposes a tax credit of 15% for research and development (R&D) activities that lead to new or improved products.
Read a December 2024 report prepared by the KPMG member firm in Nigeria