President Tinubu Takes Drastic Measures On Oil And Gas Reforms

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…Signs Executive Order

As part of efforts aimed at removing obstacles to investments in Nigeria with a view to harness the nation’s resources and diversify the economy for the benefit of all Nigerians, President Bola Ahmed Tinubu has initiated the amendment of primary legislation to introduce fiscal incentives for oil & gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.

Accordingly, the President has executed policy directives to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa.

This followed extensive engagements, analyses, and benchmarking with other jurisdictions for which the President recognised the urgency to accelerate investments.

Towards this end, President Tinubu has directed the introduction of fiscal incentives for non-associated gas, midstream and deepwater developments.

He also directed the streamlining of contracting process to compress the contracting cycle to six months and the application of the local content requirements without hindering investments or the cost competitiveness.

A statement by Ajuri Ngelale, Special Adviser to the President on Media and Publicity, said the details of the policy directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation.

The Presidential spokesperson said these incentives were developed in collaboration with the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum, Federal Ministry of Budget and Economic Planning, 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 statement further said that the Special Adviser to the President on Energy has been directed to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.

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