With the signing of the consolidated guidelines for implementing Fiscal Incentives for the Oil & Gas Sector, the Nigerian Government is aiming to draw in around $10 billion in investments.
A statement issued by the Ministry of Finance on Tuesday outlined that these guidelines, which form a key part of the Presidential Directives, seek to boost the global competitiveness of Nigeria’s oil and gas sector and drive economic growth.
The signing ceremony of the guidelines took place at the Ministry’s headquarters in Abuja and was presided over by the Minister of Finance, Wale Edun.
The development and coordination of the Presidential Directives were spearheaded by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, in order to establish a competitive framework for the country’s oil and gas industry.
According to Verheijen, the new measures are structured to deliver a competitive Internal Rate of Return for Oil & Gas Projects, with the goal of attracting over $10 billion in fresh investments within the upcoming 12-18 months.
“These guidelines also reflect Nigeria’s dedication to achieving its long-standing oil production target of 4 million barrels per day, while enhancing gas supply reliability to bolster export earnings and support Nigeria’s industrialization efforts,” she remarked.
Among the guidelines that were signed is the NUPRC Guideline on Hydrocarbon Liquid Content in a Non-Associated Gas (NAG) Field, which is crucial for accurately assessing the hydrocarbon liquid content in these fields.
In his statement, Edun emphasized, “The objective is to establish a conducive environment for international competitiveness that will attract investments, particularly foreign direct investment.”