President Tinubu Signs Executive Order On Oil And Gas Reforms
President Bola Ahmed Tinubu has taken a significant step towards enhancing investments in Nigeria’s oil and gas sector by signing an executive order on oil and gas reforms.
The latest action by the Renewed Hope administration aims to eliminate barriers to investments, maximize the nation’s resources, and promote economic diversification for the betterment of all Nigerians.
According to a statement released by Ajuri Ngelale, the Special Adviser to the President, on Wednesday, the President has implemented policy directives to enhance the investment climate and position Nigeria as the top choice for investment in the oil and gas sector across Africa.
This decision follows thorough engagements, analysis, and benchmarking with other jurisdictions, ensuring that Nigeria adopts best practices and remains competitive in the global market.
“The President has initiated the amendment of primary legislation 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 statement noted.
The President has also issued a directive to implement fiscal incentives for non-associated gas, midstream, and deep water projects, streamline the contracting process to a six-month cycle, and enforce local content requirements without impeding investments or cost competitiveness.
The specific policy directives will be officially announced and disseminated by the Federal Ministry of Information and National Orientation.
These incentives were formulated in partnership with various government bodies, including the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum, Federal Ministry of Budget and Economic Planning, Federal Inland Revenue Service, Nigerian National Petroleum Company Limited, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Commission, and Nigerian Content Development and Monitoring Board.
Furthermore, the President’s energy advisor has been tasked with overseeing the collaboration among these stakeholders to ensure the timely implementation of these directives.
