Business a.m
President Bola Tinubu has approved three new directives for the oil and gas sector aimed at improving the industry’s efficiency and competitiveness. The directives include introducing fiscal incentives for related projects, reducing contracting costs and timelines, and promoting cost efficiency in local content requirements.
The development was made known in a statement, titled ‘President Tinubu signs executive orders on oil and gas reforms.’, signed by Ajuri Ngelale, special adviser to the president on media and publicity. Ngelale, explained that the executive orders were signed following “extensive engagements, analyses, and benchmarking with other jurisdictions.”
Ngelale explained that the new orders will introduce fiscal incentives for non-associated gas, midstream and deepwater developments, and apply local content requirements without hindering investments or cost competitiveness.
“Wednesday’s directive is in keeping with his efforts to remove obstacles to investments in Nigeria, harness the nation’s resources and diversify the economy for the benefit of Nigerians, said the Presidency.
It is also expected to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa,” he stated.
According to the statement,,the new incentives were developed in collaboration with several key government ministries and agencies, including the Ministries of Justice, Finance, Petroleum, Budget and Economic Planning, Federal Inland Revenue Service, Nigerian National Petroleum Company Limited, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Commission, and the Nigerian Content Development and Monitoring Board.
Ngelale added that the full details of the new policy directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation. He also announced that Olu Verhijen,the special adviser to the president on energy, has been directed to coordinate the stakeholders involved in the implementation of the directives, to ensure that they are carried out within a specific timeframe.
