Strategies for Enhancing Petroleum Reinvestment Opportunities in Nigeria

Reinvestment in Nigeria’s deep offshore sector has declined, impacting the production capacity and revenue. This study explored strategies to enhance reinvestment opportunities in Nigeria, employing a petroleum investment model based on the Petroleum Industry Act (PIA) 2021 fiscal provisions. Delayed royalty and tax incentives served as fiscal tools that could attract reinvestment options in the model. The study found that these measures boosted the attractiveness of the investment and, encouraged reinvestment options. Results indicated potential for sustainable growth, emphasizing the need for a balanced fiscal approach. Reinvestment scenarios yielded an impressive 35% internal rate of return, Contractor metrics included a $57 million net present value and $105 million net cash flow, informing responsible development decisions.