Original title: Nigeria Cuts Oil Firms’ Cost-Recovery Cap to Boost Budget Income
Nigeria has set a lower threshold by which oil companies can recover their expenses as it seeks to boost government revenue amid lower crude oil prices threatening to widen the budget deficit in the West African nation. Firms with production-sharing contracts with the government will now claim a maximum of 70% of their expenses, down from a previous 80% ceiling, Bashir Ojulari, group chief executive officer of the Nigerian National Petroleum Co. Ltd. said during a briefing in Abuja, the capital on Monday.