Nigeria’s President Bola Tinubu has issued out new directives aimed at revitalizing investment in its oil and natural gas sector
These measures comes as a response to challenges facing Nigeria’s oil and gas industry, including declining investments, operational issues in onshore and shallow-water locations, and the need to align with the 2021 petroleum law.
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The head of State issued tax credit measures for some onshore and shallow-water locations to encourage investment. He also issued directives that set to streamline and expedite the process for approving contracts related to the oil and gas sector.
Other measures include; implementing requirements for a certain level of local content in oil and gas operations, likely aimed at boosting domestic participation and capacity building, introducing a 25% gas utilization investment allowance in new and ongoing projects in the midstream sector, which could incentivize investment in gas infrastructure and utilization.
The President also implemented measures to increase investment in deepwater exploration and production, potentially addressing the declining investment in this sector and proposed raised the approval thresholds for production-sharing and joint ventures to a minimum of $10 million, likely to streamline decision-making processes and attract larger investments.
“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 Petroleum Upstream Commission, The Nigerian Midstream and Downstream Petroleum Regulatory Commission and the Nigerian Content Development and Monitoring Board,” said President Bola Tinubu.
