Concerns have been shared on the high charges that accrue from doing business in Nigeria’s oil and gas free zones. The resulting effect of the exorbitant charges, is that expected foreign investments could be put in jeopardy as well as impeding the overall growth of the sector.

Nigeria had recently taken steps to improve the ease of doing business. However, increasing costs as well as hostile management policies of the  private oil and gas zones made it hard to accomplish this feat. For Instance, investments worth $33.3bn to be brought in by Samsung Heavy industries were being subjected to a 1% charge which amounts to roughly $33m; of which it was reported that such charges were never agreed as per initial agreements. Shell has also pulled its assets from certain zones due to the unbearable operating environment.

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