- In the new oil and gas orders, Tinubu approved the introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments.
- The order will also streamline the contracting process, compressing the contracting cycle to six months.
President Bola Tinubu 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.
This was contained in a statement titled ‘President Tinubu signs executive orders on oil and gas reforms’, signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale. It read in part, “This followed extensive engagements, analyses, and benchmarking with other jurisdictions.”
According to Ngelale, Tinubu approved introducing fiscal incentives for non-associated gas, midstream and deepwater developments and streamlining the contracting process to compress the contracting cycle to six months.
This also includes applying the local content requirements without hindering investments or cost competitiveness. The Presidency stressed that Wednesday’s directive is in keeping with Tinubu’s efforts to remove obstacles to investments in Nigeria, harness the nation’s resources and diversify the economy to benefit Nigerians.
The statement further explained that the directive will also improve the investment climate and position Nigeria as the preferred investment destination for Africa’s oil and gas sector.
Ngelale noted that the presidency developed these incentives in collaboration with the Federal Ministries of Justice, Finance, Petroleum, 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 Federal Ministry of Information and National Orientation will gazette and communicate the details of these Policy Directives.
This is as the presidency has directed the Special Adviser to the President on Energy, Mrs Olu Verhijen, to continue coordinating the stakeholders above to ensure the implementation of these directives within a stipulated timeframe.