Exclusive: President Tinubu Enacts Executive Orders for Oil and Gas Sector Reforms
Aimed at revitalizing Nigeria's oil and gas sector and positioning the nation as a premier investment destination in Africa, President Bola Ahmed Tinubu has signed Executive Orders to implement sweeping reforms. These directives, meticulously crafted following extensive consultations and comparative analyses, seek to enhance the investment climate and drive economic growth in the sector.
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| President Bola Tinubu |
The President's directives include amendments to primary legislation to introduce fiscal incentives for oil and gas projects, streamline contracting processes, and promote cost efficiency in local content requirements. The overarching goal is to accelerate investments and foster a conducive environment for sustainable development.
Specifically, the Executive Orders entail:I ntroduction of Fiscal Incentives: Incentives will be extended to non-associated gas, midstream, and deepwater developments to stimulate investment and bolster production capacity.
Streamlining Contracting Processes:The contracting cycle will be compressed to a maximum of six months to expedite project execution and reduce bureaucratic delays.
Application of Local Content Requirements: Ensuring compliance with local content requirements without impeding investments or compromising cost competitiveness, thereby fostering a balanced approach to industry development.
The details of these policy directives will be officially gazetted and disseminated by the Federal Ministry of Information and National Orientation. The development of these incentives was a collaborative effort involving key stakeholders, including the Federal Ministry of Justice, Finance, Petroleum, Budget and Economic Planning, the Federal Inland Revenue Service, and regulatory bodies such as 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.
To oversee the seamless implementation of these directives within the stipulated timeframe, the Special Adviser to the President on Energy, Chief Ajuri Ngelale, has been tasked with coordinating the efforts of all relevant stakeholders.
President Tinubu's bold and proactive measures underscore his administration's commitment to driving sustainable growth and attracting investment in Nigeria's vital oil and gas sector. These reforms are poised to unlock the sector's full potential, create job opportunities, and propel Nigeria towards becoming a global energy powerhouse.
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