Nigeria Issues Executive Orders Introducing Fiscal Incentives for Oil Projects, Reduce Contracting Circle
By Juliet Ukanwosu
Following dedicated efforts to remove obstacles to investments in Nigeria’s oil and gas industry, Nigeria has signed executive Orders aimed among others to introduce fiscal incentives for Asset development and streamline contracting circle.
President Bola Tinubu who executed the policy directives, said it was targeted at harnessing the nation’s resources and diversify the economy for the benefit of all Nigerians.
The president added that the new policy directives will help to improve the country’s investment climate and position Nigeria as the preferred investment destination for the oil and gas sector in Africa.
According to a statement by Ajuri Ngelale, Special Adviser to the President on Media & Publicity, the new policy direction followed extensive engagements, analyses, and benchmarking with other jurisdictions.
The Orders include an amendment of primary legislation to introduce fiscal incentives for oil and gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.
Specifically, the executive orders are; Introduction of fiscal incentives for non-associated gas, midstream and deepwater developments; Streamlining of contracting process to compress the contracting cycle to six months; and The application of the local content requirements without hindering investments or the cost competitiveness.
Ngelale who reiterated that the Orders are in recognition of the urgency to accelerate investments in the sector, informed that details of the policy directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation.
He disclosed that the incentives were developed in collaboration with the Federal Ministry of Justice, 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 Special Adviser to the President on Energy has been directed to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe,” the statement further informed.
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