President Bola Tinubu has taken significant steps toward reforming Nigeria’s oil and gas sector by signing three executive orders.
These directives aim to introduce fiscal incentives for related projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements. The President’s Special Adviser on Media and Publicity, Ajuri Ngelale, stated that these orders were the result of extensive engagements, analyses, and benchmarking with other jurisdictions.
The first directive approved by Tinubu focuses on the introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments. This move is expected to attract investments and stimulate growth in these sectors. The second directive aims to streamline the contracting process, compressing the contracting cycle to six months. This will help expedite projects and reduce bureaucratic delays. The third directive emphasizes the application of local content requirements without hindering investments or compromising cost competitiveness.
According to the Presidency, these directives align with Tinubu’s commitment to removing obstacles to investments, leveraging Nigeria’s resources, and diversifying the economy for the benefit of Nigerians. The implementation of these orders is expected to enhance the investment climate and position Nigeria as the preferred investment destination for the oil and gas sector in Africa.
The development of these incentives involved collaboration with various government entities, including the Federal Ministries of Justice, Finance, Petroleum, Budget and Economic Planning, the 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 specifics of these Policy Directives will be officially gazetted and communicated by the Federal Ministry of Information and National Orientation. The Special Adviser to the President on Energy, Mrs. Olu Verhijen, has been tasked with coordinating the stakeholders involved to ensure the timely implementation of these directives.
