President Bola Ahmed Tinubu has signed the oil and gas reforms, issuing policy directives to improve the investment climate and position Nigeria as the preferred investment destination for the oil and gas sector in Africa.
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.
A statement issued by Ajuri Ngelale, the Special Adviser to the President on media & publicity on Wednesday, read, “Recognising the urgency to accelerate investments, the President has directed as follows: introduction of fiscal incentives for non-associated gas, midstream and deepwater developments.”
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Other policies introduced include the streamlining of the contracting process to compress the contracting cycle to six months and the application of the local content requirements without hindering investments or the cost competitiveness.
“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.
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“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,” it stated.
The details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation even as Olu Verhijen, 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.”
