Nigerian Government aims to attract about $10 billion worth of investment by signing the consolidated guidelines for implementing Fiscal Incentives for the Oil & Gas Sector.
A statement on Tuesday by the Ministry of Finance explained that the guidelines, a cornerstone of the Presidential Directives, are aimed at enhancing the Nigerian oil & gas sector’s global competitiveness whilst stimulating economic growth.
Accordingly, the Minister of Finance, Wale Edun, presided over the signing of guidelines at the Ministry’s headquarters in Abuja on Tuesday.
It revealed that the Presidential Directives were developed and coordinated by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, to ensure a competitive framework for the Nigerian oil & gas industry.
“These Consolidated guidelines for the fiscal incentives are based on extensive collaboration across Finance and Petroleum Ministries and involve several key regulatory bodies, including the Federal Inland Revenue Service, the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority,” part of the statement read.
According to Verheijen, these new measures have been designed to deliver a competitive Internal Rate of Return for Oil & Gas Projects and attract over $10bn 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 to boost export earnings and fuel Nigeria’s industrialization,” she said.
Verheijen disclosed that among the guidelines signed was the NUPRC Guideline on Hydrocarbon Liquid Content in a Non-Associated Gas (NAG) Field, which is essential for accurately categorizing and quantifying the hydrocarbon liquid content in these fields.
On his part, Edun 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.”
