I have signed Executive Order to unlock $10 billion investment in oil and gas – Tinubu
President Bola Tinubu announced on Tuesday, April 30, that he recently authorized an Executive Order aimed at unlocking approximately $10 billion in fresh investments within the nation’s oil and gas sector. Speaking at the commencement of a two-day retreat on economic transformation and development organized by the House of Representatives, the president outlined that this initiative is anticipated to materialize through Fiscal Incentives for Non-Associated Gas (NAG), Midstream, and Deepwater Oil & Gas Developments.
Represented by his Chief of Staff, Femi Gbajabiamila, the president also revealed that just last week, the Nigerian government finalized the consolidated guidelines for implementing Fiscal Incentives for the Oil & Gas Sector. These guidelines, emblematic of a cornerstone of the Presidential Directive, aim to bolster the global competitiveness of Nigeria’s oil and gas sector while fostering economic growth.
Furthermore, he stated, “The Executive Order also streamlines contracting processes, procedures, and timelines from 36 months to 6 months. The order also seeks to ensure that local content requirements are implemented without impeding investments or the cost competitiveness of oil and gas projects.”
In tandem with these efforts, the President highlighted ongoing reforms in the nation’s tax regimes designed to optimize revenue collection without adversely impacting government revenues. He emphasized the necessity of support from the National Assembly to fully enact these reforms, as statutory changes will be required in certain areas.
Despite skepticism, the President underscored the productive collaboration between the executive, the House, and the Senate, which has culminated in the successful passage of numerous bills aimed at improving the welfare of Nigerians. Expressing gratitude to the leadership of the National Assembly for their swift action in considering and passing the Student Loans (Access to Higher Education) (Repeal and Reenactment) Act 2024, he emphasized the power of their partnership and its positive impact on the nation.
The President stressed the importance of a constructive collaboration between the National Assembly and the Executive, citing the essence of checks and balances in guiding decisions that serve the national interest.
In his address at the event, Speaker of the House of Representatives, Abbas Tajudeen, articulated the House’s focus on tax reforms, modernization, and a review of the implementation of the Petroleum Industry Reform Act (2021), with the overarching objective of identifying concrete legislative strategies for economic transformation.
Deputy Speaker of the House, Benjamin Kalu, highlighted the inefficiencies in Nigeria’s current tax system, advocating for reforms that broaden the tax base, simplify the tax code, and enhance compliance mechanisms without placing undue burdens on citizens.
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Executive Chairman of the Federal Inland Service, Zack Adedeji, emphasized the need for collective effort and shared commitment in implementing comprehensive tax reforms to empower citizens and ensure a resilient future. Represented by the Director of Support Services Group, Mohammed Lawal Abubakar, Adedeji outlined the country’s ongoing tax reforms, aimed at enhancing transparency, accountability, and revenue generation for economic development.
He further detailed the segmentation of taxpayers into various categories for more effective tax administration and underscored the nation’s tax policy’s reliance on both direct and indirect taxes to optimize revenue collection and minimize leakages.
