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Oil and Gas Fiscal Innovation and Smart Urban Growth in the Niger Delta: Incentivizing Automation, Robotics, and IOT for Sustainable Infrastructure Finance

Kaaka, Fegalo J. D

Abstract

The study focuses on how innovative oil and gas fiscal regimes can trigger smart urban infrastructure development in Nigeria’s Niger Delta by stimulating the adoption of automation, robotics and IoT in upstream and midstream operations. The purpose of this study is to (i) Assess the role of fiscal instruments such as royalties, tax credits, investment allowance, and technology-based deductions to encourage digitalisation in petroleum sector and analyse (ii) the resulting efficiency gains to create fiscal space to finance sustainable urban infrastructure. The study, through its mixed methods research design which integrates secondary fiscal datasets, technology-cost models, expert interviews and simulated projections for the period 2010-2024, uses descriptive analytics, correlation modelling and a fiscal–technology elasticity index to generate estimates of the productivity gain, operational loss reduction and enlargement of the government take as a result of using digital technologies. Findings reveal that fiscal regimes with technology incentives improve the efficiency with which oil is produced by 12–18 per cent, reduce leakages by 22 per cent, and enhance potential fiscal revenues for urban infrastructure financing by as much as ?412 billion annually. Results that follow show robotics and IoT adoption are strongly correlated with enhanced transparency, reduced tax evasion, and better predictability. The research suggest that without purposeful fiscal reforms that are explicitly linked to technology adoption, the Niger Delta will continue to suffer infrastructural stagnation despite great hydrocarbon endowment. This suggests a shift towards performance-linked fiscal incentives, an automation tax credit, and a Smart Infrastructure Development Fund funded by digital-efficiency gains. By creating a unified analysis of energy fiscal policy, digitalisation economics and smart urban development for resource-rich developing countries, the research enriches knowledge.

Keywords

Smart Fiscal Regimes; Automation and Robotics; Internet of Things ; Urban Infrastructure Finance; Niger Delta Development

References

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