What's happened
Nigeria's government has reduced the maximum expense claim for firms with production-sharing contracts from 80% to 70%, according to Nigerian National Petroleum Co. CEO Bashir Ojulari. The move aims to adjust fiscal terms amid ongoing economic reforms, announced during a briefing in Abuja on Monday, September 1, 2025.
What's behind the headline?
The reduction in expense claims from 80% to 70% signals Nigeria’s attempt to balance attracting foreign investment with fiscal discipline. This move likely aims to reduce government expenditure commitments while maintaining a competitive environment for oil firms.
- It indicates a shift towards more sustainable fiscal policies, possibly driven by the need to manage national revenue more effectively.
- The change could impact the profitability of oil projects, potentially leading firms to reassess investment strategies.
- Nigeria’s ongoing reforms, including the 2017 ban on imported tomato paste, show a pattern of policy adjustments aimed at fostering local industries and reducing reliance on imports.
- The move may also be a response to global oil market fluctuations, seeking to stabilize sector revenues.
Overall, this policy change is a strategic step that could influence Nigeria’s oil sector investment climate, balancing fiscal responsibility with sector competitiveness. It underscores Nigeria’s broader economic reform agenda, which aims to diversify revenue sources and improve fiscal sustainability.
What the papers say
Bloomberg reports that Nigeria has lowered the expense claim ceiling for firms with production-sharing contracts from 80% to 70%, a move announced by Bashir Ojulari during a briefing in Abuja. This adjustment reflects Nigeria’s ongoing efforts to reform its oil sector and manage fiscal commitments.
The article highlights Nigeria’s broader economic context, including past policies like the 2017 ban on imported tomato paste, which aimed to stimulate local production. The reduction in expense claims is part of a series of fiscal adjustments intended to balance attracting investment with fiscal discipline.
While Bloomberg focuses on the economic implications for the oil sector, Al Jazeera’s coverage of Nigeria’s food measurement units and the decline of iconic brands like De Rica provides regional cultural context. The two stories, though different, both reflect Nigeria’s ongoing economic and social adjustments, with the oil sector reform being a key component of the country’s broader economic strategy.
How we got here
Nigeria introduced reforms to its oil sector in 2017, including banning the import of tomato products to boost local production. The government’s recent adjustment to expense claims reflects ongoing efforts to recalibrate fiscal policies and attract investment, amid broader economic reforms and sector restructuring.
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Nigeria, officially the Federal Republic of Nigeria, is a sovereign country located in West Africa bordering Niger in the north, Chad in the northeast, Cameroon in the east, and Benin in the west.