Gas Flaring Law Error Cost Nigeria Billions of Dollars
Government is approaching lawmakers to amend energy law
Nation looking to boost revenue to fund infrastructure
London, Jan. 29, 2018 (AltAfrika)-Nigeria plans to make gas flaring more costly for companies that have escaped the payment of billions of dollars despite being fined, Nigerian Finance Minister Kemi Adeosun said.
The West African nation is recovering from a contraction of its economy in 2016, the first in 25 years, and is seeking revenue sources to plug a $25 billion infrastructure gap and fund a record 2018 budget presented in December by President Muhammadu Buhari.
The government is also updating the tax law and going after defaulters, with the intention to boost collection and raise the country’s tax-to-GDP ratio, currently at 6 percent and among the lowest in the world.
Nigeria in the past never focused much on tax revenue because of its reliance on oil income that funds most of government spending, Adeosun said. The OPEC member produced 1.8 million barrels per day in December, according to data compiled by Bloomberg.