As part of efforts to harness the nation’s resources and diversify the economy for the benefit of all Nigerians, president Bola Tinubu has signed three execution orders to help improve the investment climate and position Nigeria as the preferred investment destination for the oil and gas sector in Africa.
This was disclosed in a statement by his Special Adviser on Media and Publicity, Ajuri Ngelale.
The orders are to introduce fiscal incentives for oil & gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.
Recognizing the urgency to accelerate investments, the President 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.
The details of these Policy Directives, according to the statement, will be gazetted and communicated by the Federal Ministry of Information and National Orientation.
The statement further added that 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 timeframe,” the statement added.