President Bola Tinubu has signed three new executive orders in the oil and gas sector to reduce contracting costs and timelines, and promote cost efficiency in local content requirements.
The signing was disclosed by the spokesman of the President, Chief Ajuri Ngelale in a statement on Wednesday.
According to Ngelale, the signing is in keeping with the President Tinubu’s committed efforts to remove hinderances to investments in Nigeria, harness the nation’s resources and diversify the economy for the benefit of all Nigerians.
Also, the image maker of the President said his principal approved the “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.”
It is also expected to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa, the statement further explained.
Ngelale further noted that these incentives were developed in collaboration with the Federal Ministries of Justice, Finance, Petroleum, 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 details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation even as the Special Adviser to the President on Energy, Mrs Olu Verhijen, has been directed to “continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.”