- CISLAC calls for the removal of fossil fuel tax incentives to support Nigeria’s clean energy transition.
- NEITI advocates for fiscal transparency and fairness in allocating resources to renewable energy development.
The debate over Nigeria’s energy transition has intensified. Civil society leaders are demanding the removal of fossil fuel tax incentives. The Civil Society Legislative Advocacy Centre (CISLAC), the Nigeria Extractive Industries Transparency Initiative (NEITI), and other stakeholders made this call during the launch of a report in Abuja. The report is 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.”
CISLAC’s Executive Director, Auwal Musa Rafsanjani, praised Nigeria’s ongoing efforts to address climate change. He mentioned initiatives like the Energy Transition Plan and the Energy Transition Office. However, he warned that keeping fossil fuel tax incentives contradicts the country’s net-zero emission target. He added that giving tax reliefs to oil firms while expanding fossil fuel investment weakens the move towards a green economy.
Rafsanjani explained that fiscal policies can speed up or slow Nigeria’s renewable energy transition. Therefore, he urged the government to reform tax laws that support fossil fuels and redirect such incentives to renewable energy projects. He said this would strengthen fiscal discipline, attract investment, and promote national development.
The CISLAC report, developed through thorough research, analysed how tax reliefs affect Nigeria’s energy transition goals. It found that these incentives maintain carbon dependence and weaken renewable investment. The study also compared Nigeria’s fiscal model to global trends. Many countries are already phasing out fossil fuel subsidies to fund clean energy growth.
The report recommended a gradual phase-out of fossil fuel tax incentives, stronger reporting and accountability, and increased domestic resource mobilisation for renewable projects. The authors also urged global cooperation on climate finance and technical support for countries that are heavily dependent on oil.
In his goodwill message, NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, applauded CISLAC’s efforts. He described the research as a timely contribution to Nigeria’s fiscal and energy reform. He emphasised transparency, fiscal coherence, and fairness in all future policies.
Dr Orji also stated that Nigeria must replace falling oil revenue with clean energy investment. He said a fair and transparent transition would support the country’s 2060 net-zero target.