The Nigerian Oil and Gas Industry Content Development (NOGICD) Bill, 2023 has been presented before the National Assembly which introduces tax law changes and new incentives to promote Nigeria’s oil and gas sector.
The key measures include a proposal for a 15% tax credit for R&D activities and a Nigerian Content Research and Development Fund that requires operators to contribute 0.5% of their taxable annual profit.
The (NOGICD) Bill, 2023 was introduced to repeal the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010 (NOGICDA or the Act), which was enacted to promote and sustain the growth of Nigerian content within the country’s oil and gas industry.
This development follows after Nigeria’s Federal Ministry of Finance announced two incentives to revitalise Nigeria’s oil and gas sector on 2 October 2024: The Value Added Tax (VAT) Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production under the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
