In a pivotal step towards revitalizing Nigeria's oil and gas industry, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, led a significant signing ceremony at the Federal Ministry of Finance headquarters in Abuja, endorsing the Consolidated Guidelines for implementing Fiscal Incentives for the Oil & Gas Sector. These guidelines, a linchpin of the Presidential Directive crafted to bolster the sector's global competitiveness and spur economic growth, were developed under the stewardship of Mrs. Olu Verheijen, the Special Adviser to the President on Energy. Encompassing extensive collaboration across key ministries and regulatory bodies, including the Federal Inland Revenue Service (FIRS) and regulatory commissions, these measures aim to attract over $10 billion in investments within the next 12-18 months, while advancing Nigeria's long-term oil production targets and gas supply reliability. Mrs. Verheijen highlighted critical guidelines, such as those concerning hydrocarbon liquids content in non-associated gas fields, alongside provisions elucidating tax credits and allowances. Edun, expressing gratitude to President Bola Ahmed Tinubu for championing the directive, underscored the guidelines' potential to foster international competitiveness and drive foreign direct investment. The attendance of various stakeholders further underscores Nigeria's concerted effort to rejuvenate its oil and gas sector.

Here is the official statement:

"Nigeria Launches New Fiscal Incentives to attract $10b investment in Oil & Gas Sector

In a move to further revitalise the oil and gas industry’s contribution to the Nigerian Economy, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, today presided over a signing ceremony at the Federal Ministry of Finance headquarters in Abuja endorsing the Consolidated Guidelines for the implementation of Fiscal Incentives for the Oil & Gas Sector.

The Guidelines represent a cornerstone of the Presidential Directive aimed at enhancing the Nigerian oil & gas sector's global competitiveness whilst stimulating economic growth.

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.

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 Mrs. 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.

Mrs. Verheijen disclosed that among the guidelines signed were the NUPRC Guideline on Hydrocarbon Liquids Content in a Non-Associated Gas (NAG) Field, essential for accurately categorising and quantifying the hydrocarbon liquid content in these fields.

Additional guidelines focused on the applicability of tax credits and allowances for Non-Associated Gas Greenfield Development and the Midstream Capital and Gas Utilization Allowance, providing taxpayers with clarity on the computation of these benefits.

Edun thanked President Bola Ahmed Tinubu for signing the directive in February 2024 to engender growth in the Nigerian oil and gas sector, which had stagnated for over the last decade. He also emphasised the potential of the guidelines, saying, “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”.

The signing ceremony was attended by various stakeholders, including 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."

There no doubt this government want to do Al they can to I've this country forward. Sent I Sentiment aside

This is a good step in the right direction. Devil they say is in the details. I pray this strategy attracts and bring necessary resources Nigeria needs at this critical junction.

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.

We currently do around 1.5 million barrels a day.

4 million barrels a day will increase the annual budget from 40 billion dollars currently to over 90 billion dollars.

It will be a hell of an achievement if they pull this off.

🥱 😴

Fingers crossed