TheCable

President Bola Tinubu has issued policy directives to improve the investment climate and position Nigeria as the preferred investment destination for the oil and gas sector in Africa.

In a statement on Wednesday, Ajuri Ngelale, special adviser to the president, media and publicity, said the issuance follows in-depth discussions, evaluations, and benchmarking with other jurisdictions.

“Following extensive engagements, analyses, and benchmarking with other jurisdictions, the President has initiated the amendment of primary legislation to introduce fiscal incentives for oil & gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements,” he said.

Recognising the urgency to accelerate investments, he said the president has directed 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,” Ngelale said.

“The application of the local content requirements without hindering investments or the cost competitiveness.

“The details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation.

“These 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.”

Ngelale said the special adviser to the president on energy has been instructed to continue coordinating the aforementioned stakeholders to guarantee the directions are carried out within the allotted period.