Tinubu directs new reforms in oil and gas sector

By Egena Sunday Ode

President Bola Tinubu has directed ⁠the introduction of fiscal incentives for non-associated gas, midstream and deepwater developments.
Special Adviser to the President on Media and Publicity, Ajuri Ngelale, said in a statememt on Wednesday that Tinubu gave the directive in recognition of the urgency to accelerate investments.
He said the president also directed the streamlining of contracting process to compress the contracting cycle to six months as.wrll as the application of the local content requirements without hindering investments or the cost competitiveness.
According to the statement President Tinubu has executed policy directives to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa.
“Following extensive engagements, analyses, and benchmarking with other jurisdictions, 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,” the statement said.
It noted that 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 timeframe,” the statement noted.