Nigeria Launches New Fiscal Incentives to Revitalise Oil & Gas Sector, Aiming to Attract $10 Billion Investment
In a significant move aimed at reviving Nigeria’s oil and gas industry and bolstering its contribution to the economy, Wale Edun, OFR, Minister of Finance and Coordinating Minister of the Economy, presided over a signing ceremony endorsing the Consolidated Guidelines for the implementation of Fiscal Incentives for the Oil & Gas Sector. The ceremony took place today at the Federal Ministry of Finance headquarters in Abuja.
The Consolidated Guidelines, a cornerstone of the Presidential Directive, were developed to enhance the competitiveness of Nigeria’s oil and gas sector on the global stage while stimulating economic growth. Spearheaded by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, the guidelines aim to create a competitive framework for the industry.
These measures, developed in collaboration with key regulatory bodies including the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), are expected to attract over $10 billion in new investments within the next 12-18 months.
Mrs. Verheijen highlighted that the guidelines are designed to deliver a competitive Internal Rate of Return (IRR) for Oil & Gas Projects, supporting Nigeria’s long-term oil production target of 4 million barrels per day and enhancing gas supply reliability for industrialization and export earnings.
Key guidelines signed include those related to accurately categorising and quantifying hydrocarbon liquid content in Non-Associated Gas (NAG) Fields, as well as guidelines on tax credits and allowances for Non-Associated Gas Greenfield Development and Midstream Capital and Gas Utilization Allowance.
In his remarks, Minister Edun expressed gratitude to President Bola Ahmed Tinubu for signing the directive, emphasizing the potential of the guidelines to attract foreign direct investment and foster international competitiveness in the Nigerian oil and gas sector.
The signing ceremony, attended by stakeholders including NNPC Limited, Oil Producers Trade Section (OPTS), and the Independent Petroleum Producers Group (IPPG), underscores Nigeria’s unified commitment to revitalizing its oil and gas sector, paving the way for enhanced economic growth and development.
