By Obas Esiedesa, Abuja

Stakeholders have called for tax incentives for the renewable energy sector to accelerate the attainment of Nigeria’s energy transition plan.

Speaking at an online dialogue organised by Orderpaper in collaboration with the Nigeria Extractive Industries Transparency Initiative, NEITI, the stakeholders noted that Nigeria must join the global energy transition movement by creating a carbon pricing mechanism for the country.

The dialogue had the theme: Tax Bills and Their Implications for Energy Transition.

The Executive Secretary, NEITI, Dr Orji Ogbonnaya Orji who spoke at the Rembinar said the success of Nigeria’s Energy Transition Plan, particularly in scaling renewable energy, promoting green finance, and instituting carbon pricing will significantly depend on the design and effective implementation of our tax policies.

He pointed out that “energy transition represents a global shift from fossil fuels to renewable energy sources. For Nigeria, a country heavily reliant on oil revenues, this transformation demands careful and sustained reforms within the extractive sector reforms that NEITI, in line with the global Extractive Industries Transparency Initiative (EITI) standards, is committed to championing”.

Dr. Orji observed that “Historically, Nigeria’s tax structure has leaned heavily in favor of the extractive industries. Tax holidays, pioneer status incentives, and subsidies have largely benefited oil and gas operators, while renewable energy developers continue to face hurdles such as VAT on components, import duties on solar panels, and an absence of clear fiscal relief pathways. Without robust and targeted tax incentives, renewable energy projects struggle to compete — and Nigeria risks missing out on billions in private capital that could power rural communities, support local green manufacturing, and reduce emissions.

“At present, critical measures are missing from our fiscal proposals — including VAT exemptions on renewable energy components, tax credits for clean energy investments, and accelerated depreciation allowances for green technologies”.

Earlier, the Executive Director, Orderpaper, Mr. Oke Epia noted that the online event was convened to foster discussions on broad resource governance issues that aim to advance fiscal reforms, transparency and accountability within Nigeria’s extractive sector and the unfolding energy transition.

Epia explained that the programme was designed to attract participation from a wide range of stakeholders, with mandates and interest in fiscal governance, extractive transparency and public finance management, with the inaugural edition having been held on March 3.

While expressing the hope that the bills will revolutionise the country and redirect not just investment but production and even consumption, he pointed out that when they become laws, they will have clear intersection with Nigeria’s energy sector, including the energy transition.

“These are the goals we want to achieve. And the tax reforms must have a way to align these ambitions. The changes we want to see in the fiscal framework must be aligned, otherwise, we will have to suffer not just policy inconsistency but policy misalignment,” he stated.

In his intervention, Deputy Chairman, House of Representatives Committee on Environment, Hon. Teseer Ugbor, stated that the whole concept of the tax reforms is to change the way tax administration is done to enhance revenue mobilisation, job creation, and economic development.

“The reforms generally seek a unified tax administration system across Nigeria. However, there must be a transition period where states and local governments and the federal government move collectively and gradually to the new tax system,” he stated.