President Bola Tinubu has signed several executive orders meant to streamline and strengthen the nation’s oil and gas industry.
Specifically, he has ordered the introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments, including streamlining of the contracting process to compress the contracting cycle to six months.
Also signed on Wednesday was the application of the local content requirements without hindering investments or cost competitiveness.
A statement by Ajuri Ngelale, Tinubu’s Special Adviser on Media and Publicity, noted that the policy directives is meant to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa.
Tinubu also noted that it was in keeping with his dedicated efforts to remove obstacles to investments in Nigeria, harness the nation’s resources, and diversify the economy for the benefit of all Nigerians.
“Following extensive engagements, analyses, and benchmarking with other jurisdictions, the President has initiated the amendment of primary legislation to introduce fiscal incentives for oil and gas projects.
“Reduce contracting costs and timelines, and promote cost efficiency in local content requirements. Recognizing the urgency to accelerate investments.
“The details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation.
“These incentives were developed in collaboration with the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum, Federal Ministry of Budget and Economic Planning, Federal Inland Revenue Service, 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 Special Adviser to the President on Energy has been directed to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe,” Ajuri noted in the statement.
