Tinubu Signs Executive Orders On Oil And Gas Reforms
President Bola Tinubu has taken significant steps towards enhancing Nigeria’s investment climate, particularly in the oil and gas sector. The President recently signed three crucial execution orders aimed at fostering a more favourable environment for investment and positioning Nigeria as the top choice for investment in Africa’s oil and gas industry.
According to a statement released by his Special Adviser on Media and Publicity, Ajuri Ngelale, these orders reflect the President’s commitment to eliminating barriers to investment, leveraging the nation’s resources, and fostering economic diversification for the betterment of all Nigerians.
One of the key directives focuses on introducing fiscal incentives tailored to stimulate investments in non-associated gas, midstream, and deepwater developments. These incentives are designed to attract investment capital and accelerate the pace of development in these critical areas.
Furthermore, the President’s directives include measures to streamline the contracting process within the sector, to reduce the contracting cycle to a mere six months. This move is expected to expedite project implementation and reduce bureaucratic hurdles, thus making Nigeria a more attractive destination for oil and gas investments.
In addition, the orders emphasize the importance of promoting cost efficiency in local content requirements. While ensuring compliance with local content regulations remains a priority, the aim is to achieve this without compromising the competitiveness of investments or imposing undue financial burdens on stakeholders.
“These incentives were developed through extensive collaboration with various governmental bodies and industry stakeholders,” the statement highlighted. The President worked closely with key ministries including the Federal Ministry of Justice, Federal Ministry of Finance, and Federal Ministry of Petroleum, among others, to formulate these policies.
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 were also integral in the development of these directives.
The statement further noted that the details of these policy directives would be officially gazetted and communicated by the Federal Ministry of Information and National Orientation. Moreover, Olu Verhijen, the Special Adviser to the President on Energy, has been tasked with overseeing the coordination of all stakeholders to ensure the timely and effective implementation of these directives.
The move is poised to significantly enhance Nigeria’s attractiveness as an investment destination in the oil and gas sector, driving economic growth, job creation, and ultimately improving the livelihoods of Nigerians across the nation.
