Advocate.ng Latest news update on politics, entertainment, sport and more
The Federal Government of Nigeria has taken a significant step towards revitalizing its oil and gas industry with the launch of the Consolidated Guidelines for the implementation of Fiscal Incentives for the Oil & Gas Sector.
The guidelines, part of a Presidential Directive aimed at enhancing the global competitiveness of the Nigerian oil and gas sector, were signed at the Federal Ministry of Finance headquarters in Abuja by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Developed and coordinated by the Special Adviser to the President on Energy, Olu Verheijen, the guidelines have been designed to attract over $10 billion in new investments within the next 12-18 months.
They also aim to improve Nigeria’s long-term oil production target of 4 million barrels per day and enhance the reliability of gas supply to boost export earnings and fuel the country’s industrialisation.
Key components of the guidelines include the NUPRC Guideline on Hydrocarbon Liquids Content in a Non-Associated Gas (NAG) Field, the applicability of tax credits and allowances for Non-Associated Gas Greenfield Development, and the Midstream Capital and Gas Utilisation Allowance.
These measures provide taxpayers with clarity on the computation of benefits and aim to deliver a competitive Internal Rate of Return (IRR) for Oil & Gas Projects.
The signing ceremony, attended by various stakeholders, including NNPC Limited, the Oil Producers Trade Section (OPTS), and the Independent Petroleum Producers Group (IPPG), reflects Nigeria’s unified approach to reinvigorating its oil and gas sector.
In his remarks, Minister Wale Edun expressed gratitude to President Bola Ahmed Tinubu for signing the directive in February 2024 and emphasized the potential of the guidelines in creating an atmosphere conducive to international competitiveness, attracting foreign direct investment.
The launch of these fiscal incentives marks a pivotal moment in Nigeria’s efforts to transform its oil and gas industry, ensuring its global competitiveness and stimulating economic growth.
Subscribe to the Advocate News letter and receive news updates daily in your inbox.
