FG moves to maximise revenue potential from oil & gas sector

I signed an executive order to unlock about $10 billion in fresh investments in the sector. This will happen through Fiscal Incentives for Non-Associated Gas (NAG), Midstream and Deepwater Oil & Gas Developments. – Tinubu

The federal government has expressed readiness to maximise the revenue potential in the oil and gas sector through the pushing of policies that will enhance growth, transformation and development in the economy.

These were the remarks of President Bola Ahmed Tinubu, who was represented by his Chief of Staff, Femi Gbajabiamila at a two-day retreat for Members of the House of Representatives with the theme: “Economic Transformation & Development: Towards Effective Implementation of the Petroleum Industry Reform Act (2021) and Tax Reforms/Modernisation”.

In his remarks, the President promised to maintain peace, goodwill, harmony, and collaboration between the executive and legislative arms for beneficial and crucial to the achievement of the national development goals.

“I am delighted that you have selected the “Navigating Change: Legislative Strategies for Economic Transformation” as the theme of this retreat. This choice underscores our shared understanding of the critical role the legislature must play if we are to achieve the ambitious goals of national transformation and renewed hope that we have set for ourselves,” he stated.

“However, we are also determined to maximise revenue potential from this critical industry. For this reason, we are pushing policies to attract investment in the oil and gas sector. Recently, I signed an executive order to unlock about $10 billion in fresh investments in the sector. This will happen through Fiscal Incentives for Non-Associated Gas (NAG), Midstream and Deepwater Oil & Gas Developments.

Just last week, the Federal Government of Nigeria signed the Consolidated Guidelines for implementing Fiscal Incentives for the Oil & Gas Sector. The guidelines, which represent a cornerstone of the Presidential Directive, aim to enhance the Nigerian oil and gas sector’s global competitiveness while stimulating economic growth.”

He also applauded the lawmakers for the passage of significant legislation like the Students Loans Act 2024, and other bills aimed at enhancing the welfare of Nigerians.

“Despite the sceptics, the productive collaboration between the executive, the House, and the Senate has yielded significant results. We have successfully passed numerous bills, all aimed at enhancing the welfare of our fellow Nigerians. I particularly appreciate the National Assembly’s swift action in considering and passing the Student Loans (Access to Higher Education) (Repeal and Reenactment) Act 2024. Your actions have substantially fortified the legal framework of the Students Tertiary Education Loan Program, ensuring its efficient implementation.

“These achievements are a testament to the power of our partnership and the positive impact it can have on our nation.”

The President also said his administration will ensure the implementation of the local content policies without impeding investment.

“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.

“Related to this are the reforms we are implementing to our tax regimes to limit the taxes collected without negatively affecting government revenues. All of these have the same objective – to reduce government interference with the commercial imperatives of businesses in the country so that businesses based here can be competitive and focus on their core objectives of economic growth through innovation and trade.

“We will need the support of the National Assembly to fully implement some of these reforms, as statutory changes will be required in some areas. I am confident that when the time comes, the governing partnership we have established between the Executive and the Legislature will ensure that these changes are effected swiftly to benefit our nation.”

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