Nigeria Unveils New Fiscal Incentives to Revitalize Oil and Gas Sector.
In a bid to rejuvenate Nigeria’s oil and gas industry, the federal government has launched a new set of fiscal incentives aimed at attracting significant investment and boosting production. Led by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, the initiative seeks to create a competitive framework for the Nigerian oil and gas sector.
Developed through extensive collaboration across key ministries and regulatory bodies, including the Finance Ministry, Federal Inland Revenue Service (FIRS), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the fiscal incentives aim to stimulate investment in the sector.
Speaking at the launch event held at the Federal Ministry of Finance headquarters in Abuja, Verheijen outlined the objectives of the new measures. They are designed to deliver a competitive Internal Rate of Return (IRR) for oil and gas projects and attract over $10 billion in new investments within the next 12-18 months. The incentives also align with Nigeria’s long-term goal of reaching a daily oil production target of 4 million barrels while enhancing gas supply reliability for export earnings and industrialization.
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Minister of Finance and Coordinating Minister of the Economy, Wale Edun, acknowledged the sector’s stagnation over the past decade and endorsed the consolidated guidelines as a cornerstone of the presidential directive aimed at enhancing the sector’s global competitiveness and stimulating economic growth. He expressed gratitude to President Bola Tinubu for signing the directive in February 2024, emphasizing the importance of creating an environment conducive to international competitiveness and attracting Foreign Direct Investment (FDI).
The signing ceremony, attended by various stakeholders including the Nigerian National Petroleum Company Limited (NNPC), Oil Producers Trade Section (OPTS), and the Independent Petroleum Producers Group (IPPG), underscored Nigeria’s unified approach toward reinvigorating its oil and gas sector.
