THE NEED FOR OIL AND GAS SECTOR REFORMS AND THE ROLE OF TAXATION IN NIGERIA⃰

Abstract

Nigeria is a country heavily dependent on its oil and gas industry. The sector has historically been the mainstay of the economy, accounting for a significant portion of the country's GDP and foreign exchange earnings. However, despite its importance, the oil and gas industry in Nigeria has been plagued by a number of challenges, including corruption, inefficiency, and underinvestment. As a result, there is a need for significant reforms in the sector. In carrying out this research, the researcher employed the doctrinal method of research wherein the comparative, descriptive and analytical approaches were adopted. Also the primary sources of legislation, books and judicial authorities as well as secondary sources of journal articles, publications etc were used. This paper explored the need for oil and gas sector reforms in Nigeria and the role of taxation in facilitating these reforms. The paper began by examining the current state of the oil and gas industry in Nigeria, including its strengths and weaknesses. It then discussed the need for reforms in the sector and outlined the various challenges that must be addressed to achieve these reforms. The paper then explored the role that taxation plays in facilitating these reforms, including the use of tax incentives to attract investment and the use of tax compliance measures to reduce corruption and increase transparency. This paper found out that significant reforms are needed in the Nigerian oil and gas sector, and that taxation can play a critical role in facilitating these reforms. By implementing appropriate tax policies, the government can encourage investment, reduce corruption, and increase efficiency in the sector. The researcher concluded that these reforms will be essential for Nigeria to maintain its position as a leading oil and gas producer and to ensure sustainable economic growth and development. Recommendations were made which suits the different phases of the challenges and inefficiencies.