The Federal Government on Tuesday signed the Consolidated Guidelines for the implementation of Fiscal Incentives for the oil and gas sector.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, coordinated the exercise held at the headquarters of the Federal Ministry of Finance in Abuja.
The ceremony was attended by various stakeholders, including Nigerian National Petroleum Company (NNPC) Limited, Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG), further highlighting Nigeria’s unified approach toward reinvigorating its oil and gas sector.
The guidelines represent a cornerstone of the Presidential Directive aimed at enhancing the Nigerian oil and gas sector’s global competitiveness whilst stimulating economic growth.
The presidential diectives were developed and coordinated by the Special Adviser on Energy to the President, Mrs. Olu Verheijen to ensure a competitive framework for the Nigerian oil and gas industry.
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The Consolidated guidelines for the fiscal incentives are based on extensive collaboration across Finance and Petroleum Ministries and involved several 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).
According to Verheijen, these new measures have been designed to deliver a competitive Internal Rate of Return (IRR) for oil & gas projects and attract over $10 billion in new investments within the next 12-18 months.
They also underscore Nigeria’s commitment to reaching its long term oil production target of 4 million barrels per day whilst enhancing the reliability of gas supply for to boost export earnings and fuel Nigeria’s industrialization.
In his remark, Edun thanked President Bola Tinubu for signing the directive in February to engender growth in the Nigerian oil and gas sector.
He said: “The idea is to create an atmosphere conducive to international competitiveness such that investment comes in. And in this case, we know it’s foreign direct investment.”
By:Babajide Okeowo
