President Bola Tinubu has signed three new executive orders 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.
In a statement on Wednesday, the Special Adviser on Media and Publicity, Ajuri Ngelale, said the latest initiative by the President followed extensive engagements, analyses, and benchmarking with other jurisdictions.
According to the statement titled “President Tinubu signs executive orders on oil and gas reforms,” Tinubu approved: “The introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments.
“Streamlining of the contracting process to compress the contracting cycle to six months.
“The application of the local content requirements without hindering investments or the 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 and gas sector in Africa, as the statement further explained.
Ngelale noted “that these incentives were developed in collaboration with 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 details of these policy directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation.”
He added that the Special Adviser to the President on Energy, Mrs. Olu Verhijen, has been directed to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.
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