So, tax break in Nigeria:
Nigeria has lost billions of dollars because of a 10-year tax break given to Shell, Total and Eni, three of the world’s biggest oil and gas companies.
That staggering $3.3bn (£2.3bn) revenue loss, in a country where millions of people live in extreme poverty, is best understood through the social cost. The tax giveaway, which started in 1999, forfeited an opportunity to grant 70 million young Nigerians access to quality education, rebuild the university system and tackle entrenched problems in the health system.
So, why’d they get the tax break?
Until recently, companies were unwilling to exploit gas because there is no domestic market for gas in Nigeria, exports of gas were difficult and profit margins were low.
The tax break brought in the $10 billion needed to get the LNG going.
So it’s not in fact, Nigeria has lost money from tax break, it’s Nigeria has some development and will get some future revenue from having provided the tax break. Without the break it would get nothing.