Nigeria lowers the cost recovery ceiling for oil companies to increase fiscal revenue.

Due to the continued decline in international crude oil prices, fears of exacerbating the fiscal deficit of West African countries have arisen. The Nigerian government announced a reduction in the upper limit of cost recovery ratio for oil companies to increase government revenue. The CEO of the state-owned enterprise Nigerian National Petroleum Corporation, Bashir Al-Zubair, stated on Monday that the maximum cost recovery ratio that companies can now declare under production sharing contracts with the government has been reduced from 80% to 70%. Al-Zubair said this move will ensure that "production funds continue to flow into the federal account" and "this position, while safeguarding contractors' investment returns, enhances the federal government's revenue share." According to him, the remaining 30% in unrecoverable costs will be distributed between the company and the government based on specific agreement terms.