Nigeria's Risky New Oil Revenue Plan
Nov 18, 2019 | 10:00 GMT
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- After years of delayed oil sector reforms, the Nigerian government has finally expedited a crucial bill that updates the terms for offshore investments.
- Most of Nigeria’s most important deep-water fields will have their contracts renegotiated in the 2020s under the new investment terms, which include higher royalties and more frequent reviews.
- But while the deep-water deals inked under these new terms may initially boost Nigeria's oil revenue, smaller profits for foreign firms and market uncertainty risks lowering investment in the long term.