The Civil Society Legislative Advocacy Centre (CISLAC) has called for a comprehensive review of Nigeria’s fiscal policies to serve as a central instrument in achieving a just and inclusive energy transition.
Speaking in Abuja at the launch of a report titled “Assessing the Role of Tax Incentives in Nigeria’s Fossil Industry,” CISLAC’s Executive Director, Auwal Ibrahim Musa Rafsanjani, stressed the importance of aligning fiscal regimes with the country’s commitment to achieving net-zero carbon emissions by 2060.
Rafsanjani urged the Federal Government to phase out fossil fuel incentives that no longer support national development priorities. He noted that such reforms would strengthen domestic resource mobilization, enhance transparency, and promote accountability in the management of tax expenditures.
He further highlighted the need for fiscal tools to promote renewable energy investments and reduce carbon dependence.
“Increased transparency in tax incentive administration and the alignment of fiscal policies with Nigeria’s broader development and climate goals are essential to achieving a sustainable transition,” he said.
Also speaking at the event, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya Orji, warned that Nigeria would face the dual risks of declining hydrocarbon revenues and insufficient investment in clean energy if fiscal reforms were not urgently implemented.
“Many of the existing incentives in the fossil fuel sector no longer serve national development priorities and should be urgently reviewed or removed,” Dr. Orji stated. “A well-coordinated fiscal transition is critical to supporting the government’s vision of building a one-trillion-dollar economy.”
He added that the recently enacted Tax and Revenue Reforms Act provides a solid legal foundation to rationalize tax incentives, improve revenue collection efficiency, and ensure that fiscal measures deliver tangible public benefits.
In her remarks, a representative of Tax Justice Network Africa, Ms. Gloria Majiga, reaffirmed the organization’s commitment to working with stakeholders to embed the report’s recommendations into national policies.
Majiga emphasized that collaboration among civil society, government, and private sector actors would be vital to achieve a just and inclusive energy transition in Nigeria.
