President Tinubu Charts Course for Oil Sector Revival with Bold Executive Actions
By William Emmanuel Ukpoju
In a bid to bolster Nigeria’s position as a prime destination for oil and gas investments in Africa, President Bola Ahmed Tinubu has signed three executive orders targeting strategic reforms within the sector. The move is part of a comprehensive effort to attract increased investment, streamline operations, and promote efficiency.
According to a statement by Ajuri Ngelale, Special Adviser to the President on Media & Publicity, the executive orders are aimed at introducing fiscal incentives for oil and gas projects, reducing contracting costs and timelines, and enhancing local content requirements.
These directives, developed in collaboration with various ministries and regulatory bodies, are designed to accelerate investment and drive growth within the industry.
Among the key provisions outlined in the executive orders are the introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments, as well as the streamlining of contracting processes to shorten the contracting cycle to just six months. Additionally, the orders emphasize the application of local content requirements without impeding investment or cost competitiveness.
The details of these policy directives will be officially gazetted and communicated by the Federal Ministry of Information and National Orientation.
Meanwhile, recent data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicates a notable increase in Nigeria’s oil production. In January 2024, oil production grew by 8.7% compared to the same period last year, reaching 1.64 million barrels per day.
The report further reveals that the average daily liquid production was 1.42 million barrels, with an additional 217,097 barrels of condensate production.
The Commission’s Chief Executive, Engr. Gbenga Komolafe, highlighted measures adopted by the NUPRC to address challenges in the sector and enhance production. These measures include improved transparency in hydrocarbon measurement and accounting, collaborative work program administration, and production optimization through enhanced monitoring and field development strategies.
President Tinubu’s executive orders signal a significant step forward in Nigeria’s efforts to revitalize its oil and gas sector, attract investments, and drive sustainable growth.
