The Federal Government said it has generated over $500 million investments from January till now from the fiscal incentives introduced to deepen the penetration of CNG, LPG and LNG in Nigeria.
The Special Adviser to President Bola Tinubu on Energy, Mrs. Olu Verheijen, made this disclosure on Monday during the opening session of the ongoing 18th Oil Trading & Logistics (OTL) Africa Downstream Energy Week in Lagos.
These incentives, she said included waivers on import duties and VAT on the sale and distribution of LNG, CNG, LPG, as well as associated equipment.
LNG is the acronym for Liquidified Natural Gas; CNG is Compressed Natural Gas; Liquified Petroleum Gas
The theme of the conference is: ‘Alliances for Growth – Markets, Operations and Policy.”
Represented by Mrs. Eriye Onagoruwa, the Special Adviser to the president added: “Very importantly, this fiscal incentives also cover electric vehicles, to encourage investment in this area as part of our commitment to sustainable energy transition in Nigeria.
“The amount of investments from this initiative, from January till date, is over $500 million.”
The unprecedented incentive, she explained, was targeted at attracting new investments and promote diversification of Nigeria’s energy portfolio.
According to her, the federal government launched the Presidential CNG initiative specifically to create a CNG ecosystem capable of achieving Nigeria’s objective of transiting to cleaner transportation fuels and easing the impact of the removal of fuel subsidies in Nigeria.
The CNG initiative, she disclosed has so far attracted over $170million in private investments in addition to government financing, adding that currently, Nigeria has more than 125 vehicle conversion facilities, up from seven in 2023.
She also said that the government is determined to provide affordable access to clean cooking options by way of gas and electric boat for women, adding that the fiscal incentives have been designed to achieve this important goal, which is in line with the United Nations.SDG goal, seven on creating affordable and accessible energy.
While describing the development of 650,000 barrels Dangote refinery as a “giant leap forward in the march as a nation and a continent towards self-sufficiency in petroleum products and towards normalizing the principle of local value addition, she said there was another 200,000 barrel per day bore refinery that is in development, as well as several modular refineries already operating, such as the Walter Smith refinery, Aradel and OPEC refineries.
“These constitute proof of a changing landscape in which private investors are actively encouraged, and let me quickly acknowledge here that this new requires all have their teething challenges, which we are committed to solving as a government.
“As a government, our overriding goal is to create and maintain a business environment that will result in more landmark projects such as the target refinery and others across every aspect of the energy value chain.
“Nigeria has the capacity to make this happen, and it is our responsive responsibility as government to act as enablers and facilitators of the private investments required to deliver of this huge potential.,” the Special Adviser said.
A lot of the opportunities in front of government, she said would require collaboration across sectors, skill sets and also across geographies.
While acknowledging the exceptional leadership of President Bola Ahmed Tinubu, in enhancing the investment environment of the midstream and downstream sector, through the novel sectoral policies that have been in placed in the last eighteen months, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)’s Chief Executive, Farouk Ahmed, said the bold reforms of the President had transformed the sector into an attractive investment destination that supports profitable and viable business ventures in the oil and gas industry.
He assured that NMDPRA is fully committed to supporting all the reform initiatives of the President in the midstream and downstream sector through enhanced regulatory processes including efficient issuance of licenses, permits and authorizations.
Over the course of the last year, he said that the NMDPRA had revised and consolidated its regulations through strategic industry stakeholder engagements with a view to streamline the regulatory framework for ease of compliance in the sector.
This, he said, was complemented by issuance of relevant guidelines and automation of processes to strengthen regulatory clarity and enhance compliance.
He said: ”Our refining sector has been expanding rapidly with the issuance of nine valid License to Establish (LTEs), seven License to Construct (LTCs) and four LTOs for modular refineries.
“Dangote Petroleum Refinery and Petrochemical (DPRP) came on stream in February 2024,with production of some petroleum products including AGO, ATK etc. The refinery commenced production and supply of PMS in September 2024.
“It is expected that supply from the refinery will improve significantly when it is fully completed and licensed.”
“Meanwhile, the gas sector holds a 16 BSCF/D licensed processing capacity, 5 BSCF/D licensed transportation capacity and 1.5 BSCFD licensed distribution capacity. Each of the subsector is expanding rapidly alongside the general transformation in the natural gas sector,” he said
He assured that NMDPRA would continue to put in place all necessary measures to actualise the full aspirations of the PIA., which include the assurance of quality and safety in the industry, strategic stakeholder engagements, and provision of regulatory support to key government initiatives such as the Decade of Gas and Pi-CNG programs.
The theme of the conference, ‘Alliances for Growth – Markets, Operations and Policy,” Ahmed said showed the continuing imperative for effective collaborations between the stakeholders of the industry.
According to him, strategic collaborations and alliances were indeed required for the industry to effectively surmount the emerging and conflicting challenges related to climate action, geopolitical tensions, market stability, and ever-growing energy demand.
“Within the Midstream and Downstream sector, strong collaborations are required between regulatory agencies to facilitate ease of doing business, and between businesses to pool resources required for delivering complex projects.
“It is also necessary to expand regional collaborations to enhance cross-border trade; and for the industry to establish a robust mechanism for sharing of best industry practices and capacity optimization.
“In this regard, I would like to acknowledge the efforts of MEMAN in establishing such a centre in Lagos. The NMDPRA would work with MEMAN and other stakeholders to explore avenues to extend the services of the center to
other midstream and downstream players,” he said.
The NMDPRA’s Chief Executive said the authority would continue to associate with OTL Africa and commits to ensuring the outcomes of the summit are effectively adopted for the overall development of the industry and guaranteeing energy security in Nigeria.
Governor of Lagos State, Mr Babajiide Sanwoolu, in his opening address, said that the right environment is required to unlock potential of energy sector’s transformation
“As we look across Africa, the potential for energy sector transformation is immense, yet unlocking this potential requires the right environment—one that promotes growth, fosters innovation, and includes every voice,” he said.
He noted that governments have a significant role to play, urging the need to establish frameworks that encourage investment, streamline regulations, and ensure energy infrastructure becomes a foundation for broader development.
He said that Lagos State is committed to creating precisely such an environment, “one that not only attracts investment but fosters partnerships that benefit our communities and economies.”
He said that his administration has worked tirelessly to support energy initiatives that made energy more accessible, affordable, and sustainable.
“Whether through public-private collaborations or international partnerships, Lagos has become a model of resilience and innovation in the sector.
“We are focused on creating a resilient, forward-thinking energy landscape, from renewables to cleaner fuels, to build a greener, cleaner future for all.
“Our abundant natural resources, especially our gas reserves, along with our emerging renewable energy potential, present unique opportunities for investment. I encourage each of you to explore these possibilities at our exhibition, where Lagos State will showcase not only our advancements in downstream oil and gas but also our strides in clean energy,” the governor said.
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