Victor EzejaPresident Bola Tinubu has signed executive orders for a set of Policy Directives to reform Nigeria’s oil and gas industry and make it the preferred investment destination in Africa.
A statement by Special Adviser to the President on Media and Publicity, Ajuri Ngelale, said Tinubu has commenced the process of amending the primary legislation in order to lower contracting costs and timelines, create fiscal incentives for oil and gas projects, and encourage cost-effective local content requirements. This, Ngelale said, comes after extensive engagements, analyses, and comparisons with other territories.
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According to the statement by the president while recognizing the urgency to accelerate investments in the oil and gas industry, has directed as follows:
“(1) Introduction of fiscal incentives for non-associated gas, midstream and deepwater developments.
“(2) Streamlining of contracting process to compress the contracting cycle to six months.
“(3) The application of the local content requirements without hindering investments or the cost competitiveness.”
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It said that the details of the Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation.
“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,” it stated.
The statement further said the President’s Special Adviser on Energy has been directed to continue coordinating the stakeholders to ensure the implementation of these policy directives within a stipulated timeframe.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
