President Bola Tinubu has authorized three executive directives aimed at reforming the oil and gas sector. These directives aim to introduce fiscal incentives for related projects, streamline contracting processes, and enhance cost efficiency in local content requirements.
According to a statement signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, Tinubu’s decision follows extensive engagements, analyses, and benchmarking with other jurisdictions.
The statement, titled ‘President Tinubu Signs Executive Orders on Oil and Gas Reforms,’ outlines the approved directives:
1. Introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments.
2. Streamlining of contracting processes to reduce the contracting cycle to six months.
3. Application of local content requirements without impeding investments or cost competitiveness.
These directives align with Tinubu’s commitment to eliminating barriers to investment in Nigeria, leveraging the nation’s resources, and diversifying the economy for the benefit of Nigerians.
The Presidency anticipates that these measures will enhance the investment climate and position Nigeria as the preferred investment destination for the oil and gas sector in Africa.
Ngelale emphasized that these incentives were developed in collaboration with various federal ministries and regulatory bodies in the oil and gas sector.
The details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation. Additionally, the Special Adviser to the President on Energy, Mrs. Olu Verhijen, has been tasked with coordinating stakeholders to ensure the directives’ implementation within a specified timeframe.
