President Bola Tinubu has initiated the amendment of primary legislation to introduce fiscal incentives for oil and gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.
In a statement by Special Adviser on Media and Publicity, Ajuri Ngelale, the President, in keeping with his tireless efforts to lower barriers to investment in Nigeria, utilise the country’s resources, and diversify the economy for the good of all Nigerians, has carried out Policy Directives to enhance the investment climate and establish Nigeria as the continent’s top destination for the oil and gas industry in Africa.
According to the statement, following extensive engagements, analyses, and benchmarking with other jurisdictions, President Tinubu recognising the urgency to accelerate investments, directed as follows:
“Introduction of fiscal incentives for non-associated gas, midstream and deepwater developments; 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.
“The details of these 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.
“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 time frame.”
