The Nigerian Government aims to attract approximately $10 billion in investment by implementing the consolidated guidelines for Fiscal Incentives in the Oil & Gas Sector.
According to a statement released on Tuesday by the Ministry of Finance, these guidelines, a key aspect of the Presidential Directives, are intended to boost the global competitiveness of Nigeria’s oil & gas sector and stimulate economic growth.
The signing ceremony for the guidelines took place at the Ministry’s headquarters in Abuja on Tuesday, presided over by the Minister of Finance, Wale Edun.
The statement highlighted that the Presidential Directives, spearheaded by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, aimed to establish a competitive framework for the Nigerian oil & gas industry.
Collaboration across various governmental bodies, including the Federal Inland Revenue Service, the Nigerian Upstream Petroleum Regulatory Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, was crucial in developing these consolidated guidelines for fiscal incentives.
Verheijen emphasized that these measures were designed to generate a competitive Internal Rate of Return for Oil & Gas Projects and attract over $10 billion in new investments within the next 12-18 months. She also stressed Nigeria’s commitment to reaching its long-term oil production target of 4 million barrels per day while improving the reliability of gas supply to bolster export earnings and fuel industrialization.
Among the signed guidelines was the NUPRC Guideline on Hydrocarbon Liquid Content in a Non-Associated Gas (NAG) Field, essential for accurately assessing and quantifying the hydrocarbon liquid content in these fields.
Minister Edun reiterated the goal of creating a conducive environment for international competitiveness to attract foreign direct investment into the sector.