By Atoyebi Nike
The Civil Society Legislative Advocacy Centre (CISLAC) has called for an urgent review of Nigeria’s tax incentive policies in the fossil fuel industry, warning that continued fiscal support contradicts the nation’s energy transition agenda.
Speaking at the launch of a new report titled “Assessing the Role of Tax Incentives in Nigeria’s Fossil Fuel Industry: Implications for Energy Transition, Policy Direction and the Path to a Sustainable Future” in Abuja on Tuesday, CISLAC Executive Director Auwal Rafsanjani said fiscal incentives must align with Nigeria’s commitment to achieving net-zero emissions by 2060.
“Incentivising the fossil fuel industry on the one hand and pursuing a net-zero emission target on the other appears to be a contradiction of government strategy,” Rafsanjani stated.
He commended ongoing government initiatives such as the Nigerian Council for Climate Change and the Energy Transition Office, but cautioned that fiscal regimes must encourage renewable energy investment rather than entrench fossil fuel dependence.
The CISLAC report supported by Tax Justice Network Africa and the Energy Transition Fund recommended a gradual phase-out of subsidies and incentives that sustain carbon-heavy industries. It also urged fiscal reforms, stronger accountability, and transparency in tax administration to promote a just and inclusive energy transition.
Executive Secretary of NEITI, Dr. Ogbonnaya Orji, warned that poor oversight could cost Nigeria up to ₦6 trillion, adding that many existing tax incentives “no longer align with national priorities.”
He said, “Aligning tax incentives with Nigeria’s energy transition goals is not just a fiscal reform imperative but a climate justice necessity.”
Similarly, Ms. Gloria Majiga of the Tax Justice Network Africa stressed that such incentives have cost African countries valuable revenue that could support clean energy and social development.
Also, Dr. Sabiu Sani, Associate Professor of Energy and Petroleum Economics at the University of Abuja, argued that tax waivers for multinational oil firms are “no longer necessary,” as they do not serve Nigeria’s current economic and environmental interests.
