In this article, the president has issued executive directives to improve the oil and gas sector and also enhancing the investment environment.
President Bola Tinubu has signed new executive orders aimed at enhancing the investment climate and also position Nigeria as the top choice for investments in the oil and gas industry across Africa.
The president has approved three new directives in the oil and gas sector to introduce fiscal incentives for related projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.
READ: Oil and Gas Regulatory Consulting
This followed “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.
According to Ngelale, the directives entail the provision of financial incentives for the development of non-associated gas, midstream operations, and deepwater projects.
In addition, the initiative focused on optimizing the contracting process to decrease the cycle time to six months.
“The application of the local content requirements without hindering investments or the cost competitiveness.”
The directive is in keeping with his efforts to remove obstacles to investments in Nigeria, harness the nation’s resources and diversify the economy for the benefit of Nigerians, said the Presidency.
It is also expected to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa, the statement further explained.
READ: Local Content in Nigeria (NCDMB) Registration
“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 time frame.”