President Bola Tinubu, on Wednesday, issued executive orders to revitalize Nigeria's oil and gas industry. The directives were intended to draw in investors, maximise resources, and broaden the country's economic base.
Nigeria, the biggest oil producer in Africa, has long tried to use its abundant gas and oil resources to further its economy. Nevertheless, obstacles including minimal local engagement, contracting delays, and regulatory bottlenecks have prevented the industry from reaching its full potential.
The president's Special Advisor on Media and Publicity, Ajuri Ngelale, stated that the policy directives were created following extensive consultations and benchmarking with international best practices. The directives aim to improve the investment climate and establish Nigeria as the preferred destination for oil and gas investments in Africa.
According to the statement, the President has started the process of amending primary laws to lower contracting costs and timelines, encourage cost-efficiency in local content requirements, and introduce fiscal incentives for oil and gas projects. This comes after extensive engagements, analysis, and benchmarking with other jurisdictions, realizing the need to increase investments immediately.
Incentives to promote deepwater initiatives, midstream improvements, and non-associated gas projects will be included in the order. Additionally, it will guarantee the implementation of local content requirements to improve local engagement without compromising the attractiveness of investments.
The goal of the reform is to boost Nigeria's competitiveness in the world market for oil and gas while also boosting its economic growth.
He stated that the Federal Ministry of Information and National Orientation will formally release the specifics of these executive orders, which would be a major step towards making Nigeria's oil and gas industry more vibrant and effective.
Ngelale emphasized the administration's commitment to promoting sustainable growth and development in the energy sector, adding that the special adviser to the president on energy will supervise the execution of these orders.
