President Bola Tinubu has approved three new directives aimed at introducing fiscal incentives for projects in the oil and gas sector, reducing contracting costs and timelines, and promoting cost efficiency in local content requirements.
These directives, issued on Wednesday, are part of President Tinubu’s efforts to facilitate investments in Nigeria, harness the nation’s resources, and diversify the economy for the benefit of Nigerians, according to a statement from the Presidency.
The move is expected to enhance the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa.
The incentives were developed in collaboration with various government bodies including the Federal Ministries of Justice, Finance, Petroleum, Budget and Economic Planning, as well as regulatory bodies such as the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Commission, and the Nigerian Content Development and Monitoring Board.
The details of these Policy Directives will be officially published and communicated by the Federal Ministry of Information and National Orientation. Additionally, the Special Adviser to the President on Energy, Mrs. Olu Verhijen, has been tasked with coordinating the stakeholders to ensure the timely implementation of these directives.
“Extensive engagements, analyses, and benchmarking with other jurisdictions” a statement signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, read Wednesday.
The statement is titled ‘President Tinubu signs executive orders on oil and gas reforms.’
According to Ngelale, Tinubu approved the “Introduction of fiscal incentives for non-associated gas, midstream and deepwater developments.”
“Streamlining of contracting process to compress the contracting cycle to six months.”
“The application of the local content requirements without hindering investments or the cost competitiveness.”