Highlight

FG signs Executive executive order to unlock $10bln investment in oil and gas

"A week ago, the Federal Government signed the consolidated guidelines for implementing fiscal incentives for the oil and gas sector"

1.3k
President Bola Tinubu has signed an Executive Order to unlock up to $10 billion in fresh investments in the nation’s oil and gas sector.

The Nigerian leader stated at the House of Representatives’ two-day retreat on economic transformation and development on Tuesday that fiscal incentives for non-associated gas, midstream, and deepwater oil and gas will drive development.

President Tinubu, who was represented by his Chief of Staff, Mr. Femi Gbajabiamila, disclosed that a week ago, the Federal Government signed the consolidated guidelines for implementing fiscal incentives for the oil and gas sector.

He said: “The Executive Order streamlines contracting processes, procedures, and timelines from 36 months to six months.

“The order also seeks to ensure that local content requirements are implemented without impeding investments or the cost competitiveness of oil and gas projects.

“All of these have the same objective  to reduce government interference with the commercial imperatives of businesses in the country so that businesses based here can be competitive and focus on their core objectives of economic growth through innovation and trade.

“We will need the support of the National Assembly to fully implement some of these reforms, as statutory changes will be required in some areas.

“I am confident that when the time comes, the governing partnership we have established between the Executive and the Legislature will ensure that these changes are effected swiftly to benefit our nation,” he added.

The President commended the legislature for working in harmony with the executive arm in championing policies meant to enhance the welfare of Nigerians.

He said: “Your actions have substantially fortified the legal framework of the Student Tertiary Education Loan Programme, ensuring its efficient implementation.

“These achievements are a testament to the power of our partnership and the positive impact it can have on our nation.

“The legislature must have the capacity to monitor the executive, and the executive, in turn, should be willing to comply with the legislative enactments.

“It is not just a coincidence but a strategic advantage for our country that the governing relationship between the Executive and the Legislature perfectly reflects this ideal.

“As you know, my administration is implementing significant policy changes to reform how we govern and position our country for progress and shared prosperity for all citizens.”

Tinubu thanked Nigerians for sticking by his policies and the challenges that came with them.

He added: “These reforms, while necessary and, in some cases, long overdue, are not without their challenges. I am deeply grateful for your unwavering support and understanding during these times. Your understanding and support have been invaluable, and I am confident that with our continued collaboration, we can overcome any challenges that lie ahead.

“The oil and gas industry has long been the lifeblood of our national economy. My administration is working tirelessly to change this and diversify our economy from overreliance on the production of fossil fuels. However, we are also determined to maximise revenue potential from this critical industry.

“For this reason, we are pushing policies to attract investment in the oil and gas sector.”

He continued: “We can only justify our collective mandate and the trust our people repose in us through constructive collaboration between the National Assembly and the Executive. This joint effort is the minimum the people who voted for us expect from us.

“However, the very essence of checks and balances means there will be times when the executive and legislative prerogatives inevitably collide. Above all else, the national interest must guide our decisions in those moments.

“We share a common responsibility in shaping the future of our nation, and it is through our collaboration that we can effectively fulfil this duty.”

In his address, Speaker of the House of Representatives, Abbas Tajudeen, pledged the readiness of the Green Chamber to continue to work hard to address the economic challenges facing the nation.

He said that by designing and implementing progressive tax policies, the nation must endeavour to ensure a fair and efficient tax system that boosts revenue while fostering economic growth and equity.

According to him, this entails not only broadening the tax base and simplifying tax codes, but also improving compliance and minimizing loopholes that benefit only the wealthy.

“The retreat aims to foster stakeholder engagement, ensure constructive dialogue, exchange ideas, and offer insights on legislative strategies that will contribute to the economic transformation of our country.”

He said further that the retreat would give the lawmakers an opportunity to take a look at the tax reforms instituted by President Tinubu and undertake a review of the implementation of the Petroleum Industry Act (2021).

“’This situation is compounded by a lack of enthusiasm and morale for tax compliance, contributing to the nation’s underwhelming fiscal performance. Comparatively, Nigeria’s efficiency in collecting VAT is the lowest among its African peers, indicating significant inefficiencies in its tax system.
“This trend of low tax revenue, coupled with a continued dependency on the increasingly unstable oil revenue, presents a major risk to Nigeria’s fiscal sustainability. It also highlights an important area for potential reform to boost revenue and stabilise the country’s economic framework.

“The lack of growth in non-oil revenue sources and the volatile nature of oil income underscore the urgent need for Nigeria to diversify its revenue base and enhance its fiscal management to ensure economic stability and growth,” the speaker said.

Leave a comment

Related Articles

Lagos Assembly Orders Halt to Makoko Demolitions Amid Standoff with Gov. Sanwo-Olu

A major rift has emerged between the Lagos State House of Assembly...

Just In: Terrorism & Arms Charges: DSS Arraigns ex-AGF Malami, Son

Former AGF Abubakar Malami and his son, Abdulazeez, have been remanded in...

“No Deal”: Presidential Claimant Fernando Dias Rejects Guinea-Bissau Junta’s Transition Plan

By Paul Ejime Dr Fernando Dias da Costa, who claimed victory in...

UK Prosecutors Reveal Diezani Spent £140k on Luxury Furniture in One-Day Shopping Spree

As the trial of former Nigerian Petroleum Minister Diezani Alison-Madueke continues in...

“Democracy Forbids It”: Falana Argues Against Court-Martial for Soldiers in Alleged Coup

Mr. Femi Falana (SAN), prominent human rights lawyer, has argued that military...

“I Can Account for My Wealth”: Malami Petitions Court to Vacate Forfeiture Order

Former Attorney General of the Federation and Minister of Justice, Abubakar Malami...

Bonga FPSO Shutdown for Maintenance, Nigeria’s Oil Output to be Affected

Shell Nigeria Exploration and Production Company (SNEPCo) has announced the shutdown of...

Traders Count Losses as Fresh Fire Ravages Kano’s Singa Market

Barely two months after a crippling fire outbreak, Singa Market in Kano...

Tragedy in Abuja: Rising Music Star Ifunanya Dies After Snake Bite

A bright light in Nigeria’s music scene has been extinguished. Ifunanya Nwangene,...

Ademola Lookman Set to Join Atlético Madrid in €40m Deal

Nigerian forward Ademola Lookman is poised to join Atlético Madrid in a...

Ogun Gov. Abiodun to Unveil State-Owned DisCo, New World Bank-Power Projects, Mini-grids

Ogun State is gearing up for a major power boost with the...

Kano Secures ₦1trn Rail Project After Governor’s High-Profile Defection to APC

Barely 48 hours after joining the ruling All Progressives Congress (APC), Kano...

Emefiele’s Trial: Ex-CBN Director Admits to $2.5m ‘Gift’ Linked to $6.2m Election Logistics Fund

Bashirudeen Maishanu, a former Deputy Director of Banking Supervision at the Central...

“Selective Payouts”: Dozens of ‘Concerned’ Lawyers Demonstrate at Finance Ministry, Abuja

Lawyers representing the Concerned Lawyers for Probity and Justice protested at the...

Historic Milestone: Sarah Mullally Confirmed As First Female Archbishop of Canterbury

History was formally etched into the foundations of the Church of England...

17 Days to Go: Access Bank Lagos City Marathon Unveils Key Details

With the 2026 Access Bank Lagos City Marathon just 17 days away,...

FG to Recall Military Retirees to Secure High-Risk “Ungoverned Spaces”

The Federal Government has launched a strategic initiative to deploy military veterans...

Boardroom Titan, Business Mogul Otunba Adekunle Ojora Exits

Renowned Lagos patriarch Otunba Adekunle Ojora has died at 93. The Olori...

FCTA Strike: NLC Defies Court Order, Tells Workers to Continue Action

The Nigeria Labour Congress (NLC) has signaled its intent to continue industrial...

Alleged Coup: Military Can’t Try Treason Under Armed Forces Act – Frank Tietie

Abuja-based human rights lawyer Frank Tietie has cautioned that the Nigerian military...