President Bola Tinubu has taken decisive steps to enhance the investment climate and position Nigeria as a premier destination for oil and gas investments in Africa. This move aligns with the President’s commitment to overcoming barriers to investment, leveraging the nation’s resources, and diversifying the economy for the benefit of all Nigerians.
In a statement released by presidential spokesperson Ajuri Ngelale on Wednesday, it was revealed that President Tinubu has initiated amendments to primary legislation to introduce fiscal incentives aimed at promoting oil and gas projects, reducing contracting costs and timelines, and enhancing cost efficiency in local content requirements.
Recognizing the pressing need to expedite investments, President Tinubu has directed the implementation of fiscal incentives for non-associated gas, midstream, and deepwater developments. Additionally, there will be a streamlining of the contracting process to shorten the contracting cycle to six months, while ensuring that local content requirements do not impede investments or cost competitiveness.
The specific details of these Policy Directives will be officially gazetted and communicated by the Federal Ministry of Information and National Orientation.
These incentives were developed through collaboration with key stakeholders, including the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum, Federal Ministry of 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.
Furthermore, the Special Adviser to the President on Energy has been tasked with coordinating the efforts of these stakeholders to ensure the timely implementation of the directives.
President Tinubu’s proactive measures underscore the government’s commitment to revitalizing the oil and gas sector, attracting investments, and fostering economic growth and development in Nigeria.