Three new directives aimed at reducing contracting prices and deadlines, promoting cost efficiency in local content standards, and introducing fiscal incentives for associated projects have been authorized by President Bola Tinubu in the oil and gas industry.
This came after “extensive engagements, analyses, and benchmarking with other jurisdictions,” according to a statement released on Wednesday and signed by Ajuri Ngelale, the president’s special adviser on media and publicity.
“President Tinubu signs executive orders on oil and gas reforms,” reads the statement.
Ngelale claims that the “Introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments” was approved by Tinubu.
“Simplifying the contracting procedure to reduce the duration of the contract to six months.”
“The implementation of local content requirements without impeding cost competitiveness or investment.”
According to the Presidency, Wednesday’s instruction is in line with his efforts to lower barriers to investment in Nigeria, utilize the country’s resources, and diversify the economy for the good of Nigerians.
The statement went on to say that it is also anticipated to strengthen the investment climate and establish Nigeria as the go-to location for investments in the African oil and gas industry.
Ngelale stated that the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, and the Federal Ministries of Justice, Finance, Petroleum, Budget and Economic Planning were all involved in the development of these incentives.
The Federal Ministry of Information and National Orientation will gazet and communicate the specifics of these Policy Directives, while Mrs. Olu Verhijen, Special Advisor to the President on Energy, has been instructed to “continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.”