admin President Bola Tinubu has signed three executive orders that will improve significantly the investment climate and position Nigeria as the preferred investment destination for the oil and gas sector in Africa has been signed into law.
The documents are in line with with the president’s efforts to remove obstacles that can hinder investments in Nigeria, harness the nation’s resources as well as diversify the economy for the good of the people of Nigeria.
The orders are to introduce fiscal incentives for oil and gas projects, reduce contracting costs and timelines as well as promote cost efficiency in local content requirements.
The executive orders will address the introduction of fiscal incentives for non associated gas , Midstream and deep water developments, the streamlining of contracting process to compress the contracting cycle to six months and the application of the local content requirements without hindering investments or cost competitiveness.
In the statement released by the special adviser to the president on media and publicity, Ajuri Ngelale, said the incentives packaged into the executive orders were developed in collaboration with the federal ministry of Finance, Federal ministry of petroleum, Federal ministry of budget and economic planning, Federal inland revenue service, 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 presidential spokesman disclosed that the special Adviser to the president on energy has been directed to continue coordinating all the involved stakeholders so as to ensure the implementation of the directives within s stipulated time frame.
Meanwhile the Independent Petroleum producers Group, ( IPPG) has endorsed the action of the president on the Executive orders which are aimed at revitalizing investment in the oil and gas sector ,thereby position it as Africa’s first destination within the energy sector.
In a statement signed by the Chairman of the IPPG,Abdul Rasak ISA(OFR) ,the group maintained that president Tinubu’s policy directives include the introduction of value adding fiscal incentives for investments in upstream non- associated gas ( NAG) developments, Midstream infrastructure and deep water assets.The group explained that the three executive orders also streamline the industry’s contracting process,and seek to reform local content practices which make all the measures to be pivotal to the future of the industry.
The Independent Petroleum producers Group noted that the signed executive orders by the president will lead to reduced project cost,faster project execution timelines, reduction of waste and multiple layers of middlemen in project contracting processes, increased number of gas projects reaching final investment decision ( FID) ,increased gas processing and gas distribution capacity as gas infrastructure investments grow and thereby lead to increased gas supply for domestic use( including power,cooking gas and for export.
The IPPG said it is ready to partner with the government and all stakeholders to ensure the successful implementation of the presidential directives.It reaffirmed it’s belief that the reforms will attract more investments into the oil and gas sector,accelerate project completions while ultimately contribute to the prosperity of all Nigerians.
The IPPG in its own words noted that “president Tinubu’s policies suggest a new direction that prioritizes Nigeria’s strategic interests, ensures that we can harness our vast gas resources effectively and recognizes the role of the private sector in driving growth.These executive orders are credible impetus required to relaunch the growth of production and revenue within the oil and gas industry which marks a significant milestone in Nigeria’s journey towards achieving cherished goal of energy security and economic stability for Nigetians.
The Independent Petroleum producers Group ( IPPG) is a twenty eight members association of indigenous exploration and production companies committed to the advancement and sustainability of the Nigerian oil and gas industry.
IPPG advocates for policies that support the growth and development of the oil and gas sector, thereby ensuring Nigeria’s position as a leading energy provider globally.
