President Bola Tinubu has taken a significant step towards reforming Nigeria’s oil and gas sector by signing executive orders aimed at removing obstacles to investments. These orders, which are part of his commitment to improving the investment climate, aim to position Nigeria as the preferred destination for oil and gas investments in Africa.
According to a statement by presidential spokesman Ajuri Ngelale, the executive orders include policy directives to improve the investment climate and attract more investments to the sector. These directives were developed following extensive engagements, analyses, and benchmarking with other jurisdictions.
One of the key initiatives is the amendment of primary legislation to introduce fiscal incentives for oil and gas projects. This includes reducing contracting costs and timelines, as well as promoting cost efficiency in local content requirements. The President has also directed the introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments.
To accelerate investments, the President has directed the streamlining of the contracting process to compress the contracting cycle to six months. Additionally, the application of local content requirements will be streamlined to ensure they do not hinder investments or cost competitiveness.
The details of these policy directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation. The President has directed the Special Adviser to the President on Energy to continue coordinating stakeholders to ensure the implementation of these directives within a stipulated timeframe.
PM News