President Bola Tinubu has signed new executive orders aimed at enhancing the investment environment and establishing Nigeria as the top choice for investments in the oil and gas industry across Africa.
The president issued this policy directive in Abuja extensive engagements with major stakeholders in the sector.
The spokesperson for the president on media and publicity, Ajuri Ngelale, made this disclosure in a statement on Wednesday.
According to Ngelale, the directives entail the provision of financial incentives for the development of non-associated gas, midstream operations, and deepwater projects.
In addition, the initiative focused on optimizing the contracting process to decrease the cycle time to six months.
What the President said
According to the statement signed by Ngelale, the President has ordered the special adviser on Energy to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.
- “President Bola Ahmed Tinubu has issued 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.
- “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,” the statement reads in part.
Furthermore, Ngelale noted that the details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation.
More Insights
- The President on Energy has been directed to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.
- Also, the details of the Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation, Ngelale added.
