By Our Correspondent
A newly enacted tax law is expected to significantly reduce revenue leakages in the oil and gas sector, according to fiscal policy experts and industry analysts.
The legislation, which introduces stricter compliance measures and improved transparency requirements, is aimed at ensuring that governments receive their full share of earnings from oil production and exports.
Experts note that for years, weak enforcement, outdated reporting systems, and regulatory loopholes have contributed to substantial losses in oil revenues. These leakages have often occurred through underreporting of production volumes, tax evasion, and poor monitoring of contracts and royalties.
The new tax act seeks to address these challenges by tightening oversight mechanisms and modernizing the revenue collection framework.
Under the law, oil companies will now be required to adopt standardized reporting practices and submit more detailed financial disclosures to tax authorities.
The act also strengthens penalties for non-compliance, making it more costly for firms to evade taxes or manipulate records. Analysts believe these measures will encourage greater accountability across the sector.
Government officials have welcomed the reform, describing it as a critical step toward boosting public revenue and improving fiscal stability. Increased oil tax revenues are expected to support national development priorities, including infrastructure, healthcare, and education, while reducing reliance on external borrowing.
While industry stakeholders have expressed cautious optimism, some have called for clear implementation guidelines to ensure the law is applied fairly and consistently.
Experts agree that effective enforcement will be key to the act’s success, emphasizing that sustained political will and institutional capacity are essential to fully curb oil revenue leakages.
