President Bola Ahmed Tinubu has taken a significant step towards oil and gas reforms, signing an Executive Order to position Nigeria as the top investment destination in Africa’s oil and gas sector.
The announcement, conveyed on Wednesday by the President’s Spokesperson, Ajuri Ngelale, reveals that the President has initiated amendments to primary legislation. These changes aim to introduce fiscal incentives for oil and gas projects, reduce contracting costs and timelines, and enhance cost efficiency in local content requirements.
Acknowledging the urgency to boost investments in the sector, the President has directed the introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments. Additionally, he has launched efforts to streamline the contracting process, aiming to compress the contracting cycle to a swift six months. Another crucial directive involves the application of local content requirements without impeding investments or cost competitiveness.
Ngelale emphasized that the detailed Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation. He highlighted President Tinubu’s dedicated efforts to remove obstacles to investments, harness Nigeria’s resources, and diversify the economy for the benefit of all Nigerians.
These incentives were crafted in collaboration with key ministries and agencies, including the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum, and others. The President has entrusted his Special Adviser on Energy with continuing to coordinate these stakeholders to ensure the timely and effective implementation of the directives.
