Nigeria’s President Bola Ahmed Tinubu has issued dolicy directives to improve the investment climate and position Nigeria as the preferred investment destination for the oil and gas sector in Africa.
According to a statement by the Presidency, following extensive engagements, analyses, and benchmarking with other jurisdictions, President Tinubu initiated the amendment of primary legislation to introduce fiscal incentives for oil and gas projects.
This amendment will also reduce contracting costs and timelines, and promote cost efficiency in local content requirements.
The Presidency noted that “Recognizing the urgency to accelerate investments, the President has 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.
“The application of the local content requirements without hindering investments or the cost competitiveness.”
“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 statement read.
Others are 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 (Mrs Olu Verheijen) has been directed to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe,” the statement added.
