• Home
  • Anti-Corruption
  • Fact-Check
  • Economy
  • National
    • Government
  • Security
  • Features
  • State
  • Event
    • PR Nigeria Award
  • E-Paper
Search
  • Home
  • About
  • Adverts
  • Contact
Sign in
Welcome! Log into your account
Forgot your password? Get help
Password recovery
Recover your password
A password will be e-mailed to you.
PRNIGERIA PRNigeria News
PRNIGERIA PRNIGERIA
  • Home
  • Anti-Corruption
    • Chinese nationals jailed in Lagos

      Court Jails Nine Chinese Nationals for Cybercrime in Lagos

      ASUU

      Tackle Corruption, Institutional Decay – ASUU Charges FG

      EFCC Arraigns Bauchi Accountant General Over N8bn Fraud as Court Sentences…

      PRNigeria logo fearured image

      EFCC Arraigns Ex-Convict, Other for Naira Abuse in Lagos

      EFCC Arrests 37 Suspected Internet Fraudsters in Ilorin

  • Fact-Check
  • Economy
    • Comptroller General Nigerian Customs Bashir Adewale

      Nigeria Customs, ICPC and the Audit of Conscience

      Customs Diplomacy: Nigeria, Saudi Arabia Ink Mutual Assistance Deal

      Comptroller General Nigerian Customs Bashir Adewale

      Nigeria, Belarus Forge Alliance to Combat Smuggling, Facilitate Trade

      President Bola Ahmed Tinubu and CG Customs, Bashir Adewale Adeniyi

      Tinubu Hails Customs Boss Wale Adeniyi on Historic Election as WCO…

      WTO Lauds Nigeria Customs for Embracing Global Trade Standards

  • National
    • Shittu Yunus Shittu

      Can Nigeria Lead Africa’s AI Revolution? By Shittu Yunus Shittu

      162 years of the Nigerian Army celebrations

      The First Shot and the Long March: Reflections on 162 Years…

      Asiwaju Adegboyega Solomon Awomolo

      47 Years of Excellence: Honoring Asiwaju Awomolo, SAN

      NCoS inmates

      58 Inmates in Kano Sit for 2025 NECO Exams, Thanks to…

      Tinubu conference centre generates N700m in 3 weeks – Wike

    • Government
      • Tinubu conference centre generates N700m in 3 weeks – Wike

        Soldiers

        Soldiers, forest guards to tackle insecurity in Kwara State

        MUSWEN Muslim Ummah of South West

        MUSWEN Renews Call for Shariah Courts to Regulate Affairs of Muslims

        Corporate Affairs Commission

        CAC Unveils AI-Powered Registration Portal to Revolutionize Business Registration in Nigeria

        Employment: ICPC Secures Conviction of FAAN Staff

  • Security
    • The suspected notorious Militia member

      Troops Nab Notorious Militia, Recover Weapons in Plateau State

      Tinubu to Troops: You Have My Full Backing to Crush Terrorists,…

      162 years of the Nigerian Army celebrations

      The First Shot and the Long March: Reflections on 162 Years…

      Police Officer

      Security Forces Nab 2 Suspected ESN/IPOB Terrorists in Enugu

      NCoS inmates

      58 Inmates in Kano Sit for 2025 NECO Exams, Thanks to…

  • Features
    • Shittu Yunus Shittu

      Can Nigeria Lead Africa’s AI Revolution? By Shittu Yunus Shittu

      162 years of the Nigerian Army celebrations

      The First Shot and the Long March: Reflections on 162 Years…

      From SDP to ADA to ADC: Can the New Opposition Coalition…

      Bashir Adewale Adeniyi MFR

      Adeniyi: Lifting Nigeria to the Pinnacle of Global Customs Authority

      Nigeria’s Growth Numbers Tell Only Half the Story By Umar Farouk…

  • State
    • The suspected notorious Militia member

      Troops Nab Notorious Militia, Recover Weapons in Plateau State

      Police Officer

      Security Forces Nab 2 Suspected ESN/IPOB Terrorists in Enugu

      NCoS inmates

      58 Inmates in Kano Sit for 2025 NECO Exams, Thanks to…

      Police Officer

      Police rescue 19 Ghanaians from human traffickers in Oyo

      Soldiers

      Soldiers, forest guards to tackle insecurity in Kwara State

  • Event
    • Asiwaju Adegboyega Solomon Awomolo

      47 Years of Excellence: Honoring Asiwaju Awomolo, SAN

      NCoS inmates

      58 Inmates in Kano Sit for 2025 NECO Exams, Thanks to…

      Troops of the Nigerian Army giving a salute

      162nd Anniversary: Tinubu Salutes Nigerian Army, Hails Troops as Guardians of…

      President & Chairman of Governing Council, Dr. Ike Neliaku

      NIPR Lauds Nigerian PR Firms for Outstanding Performances at 2025 SABRE…

      SCN NGO signs partnership with PRNIGERIA

      SCN NGO Seals Partnership with PRNigeria to Amplify its Humanitarian Projects

    • PR Nigeria Award
  • E-Paper
Home Government How Tinubu is Positioning Nigeria as Africa’s Energy Investment Hub – Minister
  • Government

How Tinubu is Positioning Nigeria as Africa’s Energy Investment Hub – Minister

By
Mohammed Idris
-
March 6, 2024
President Bola Tinubu and Information Minister, Mohammed Idris Malagi
President Bola Tinubu and Information Minister, Mohammed Idris Malagi

How Tinubu is Positioning Nigeria as Africa’s Energy Investment Hub – Minister

In keeping with his dedicated efforts to remove obstacles to investments in Nigeria, harness the nation’s resources and diversify the economy for the benefit of all Nigerians, His Excellency, President Bola Ahmed Tinubu has executed Policy Directives to improve the investment climate and position Nigeria as the preferred investment destination for the Oil & Gas sector in Africa.

Following extensive engagements, analyses, and benchmarking with other jurisdictions, the President has initiated the amendment of primary legislation to introduce fiscal incentives for Oil & Gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements. Recognizing the urgency to accelerate investments, the President has directed as follows:

(1) Fiscal Incentives for Non-Associated Gas (NAG), Midstream and Deepwater Developments:

– Gas tax credits shall apply to non-associated gas (NAG) greenfield developments in onshore and shallow water locations, where the hydrocarbon liquids fall between 0-100 barrels per million standard cubic feet of gas.

– A 25 percent gas utilization investment allowance shall apply on qualifying expenditure on plant and equipment incurred by a gas utilization company in respect of any new and ongoing project in the midstream oil and gas industry.

– Implementation of commercial enablers for new brownfield and greenfield to incentivize investments for oil and gas projects in the deep water.

These incentives address the lack of differentiation between NAG fields in PIA, yield competitive returns and prevent value erosion for ongoing gas utilization projects, including NLNG Train 7 due to changes introduced by sections 6 and 9 of the 2023 Finance Act. It is anticipated that these investments will have a multiplier effect by catalyzing economic activity around these projects. The anticipated impact of these investments extends beyond energy security. The projects are expected to relaunch economic activity and job creation in the sector, as well as stimulate activity in ancillary SMEs within local communities.

(2) Streamlining of Contracting Processes, Procedures, and Timelines:

– The President has directed the Ministry of Finance Incorporated (MOFI) and the Ministry of Petroleum Incorporated (MOPI) to take steps to procure the Nigerian National Petroleum Company Limited to raise the contract approval thresholds for Production Sharing Contracts (PSCs) and Joint Operating Agreements to not less than $10 million or the Naira equivalent.

– The President has directed that NNPC Limited and the Nigerian Upstream Investment Management Services Limited (NUIMS), in collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) and industry stakeholders, simplify the contract approval process.

Read Also:

  • Troops Nab Notorious Militia, Recover Weapons in Plateau State
  • Can Nigeria Lead Africa’s AI Revolution? By Shittu Yunus Shittu
  • Tinubu to Troops: You Have My Full Backing to Crush Terrorists, Separatists

– The duration period for third-party contracts awarded pursuant to a PSC or JOA is increased from three to five years with the option of renewal for an additional two years after the expiration of the initial three years.

– These directives are aimed at compressing the contracting cycle to 4-6 months, ultimately reducing project schedules, expediting the delivery of oil and gas products to the market, and increasing value to the country.

(3) Local Content Practice Reform:

Pending legislative review of certain reform propositions, the President has directed that the Nigerian Content Development and Monitoring Board in its implementation of the Nigerian Oil and Gas Industry Content Development Act, 2010 (“Local Content Act”) shall consider the practical challenges of insufficient in-country capacity for certain services, and act in a manner that does not hinder investments or the cost competitiveness of oil and gas projects. By providing flexibility with the application of the Local Content Act, local operators will be encouraged to increase their capacity, thereby creating additional business opportunities, upskilling of the workforce, and ultimately creating more jobs and boosting economic growth.

These incentives were developed in collaboration with the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum, Federal Ministry of Budget and Economic Planning, Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Company Limited (NNPCL), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Commission (NMDPRA), and the Nigerian Content Development and Monitoring Board (NCDMB).

The Special Adviser to the President on Energy has been directed to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.

Some directives on previous structural reforms undertaken by the President to address the decline in investments include:

– Streamlining and clarifying the scope of regulators in the petroleum sector, with a view to providing certainty and clarity to investors and facilitating a conducive operating environment.

– Enhanced security measures across the Niger Delta that has grown production by 200kbbls per day and increased the availability of NLNG Trains 1-6 from 57% in 2023 to 70% today

– Introduction of fiscal incentives to deepen Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG) penetration.

The President strongly believes that private sector-led growth enabled by clear and inclusive government policies is the most enduring path to prosperity for all Nigerians. The President is committed to sustained engagement and collaboration with key investors to ensure we improve the ease of doing business in Nigeria.

Mohammed Idris
Minister of Information and National Orientation

6th March, 2024

VISIT OUR OTHER WEBSITES
PRNigeria.com EconomicConfidential.com PRNigeria.com/Hausa/
EmergencyDigest.com PoliticsDigest.ng TechDigest.ng
HealthDigest.ng SpokesPersonsdigest.com TeensDigest.ng
ArewaAgenda.com Hausa.ArewaAgenda.com YAShuaib.com
  • TAGS
  • Mohammed Idris
  • Nigerian Upstream Petroleum Regulatory Commission
  • NMDPRA
  • Oil & Gas projects
Previous articleNAGGW to Train Herders, Farmers on Cattle Ranching, Orchard Plantation 
Next articleAnambra, Delta Police Spokespersons, 1605 Others Promoted to SPs
Mohammed Idris
Mohammed Idris
Xing

RELATED ARTICLESMORE FROM AUTHOR

BREAKING: Olubadan of Ibadan Dies After One Year on the Throne

Tinubu conference centre generates N700m in 3 weeks – Wike

Soldiers

Soldiers, forest guards to tackle insecurity in Kwara State

Yushau Shuaib of PRNigeria, Barrister Nima Salman Mann and Rear Admiral A. A. Mustapha of NIPSS

Cybercrime Allegation: PRNigeria Petitions Police Against NIPSS Officials

Man caught trying to hack into FCMB

‎FACT-CHECK: Was a Man Trapped in Ceiling after Trying to Hack FCMB Bank?

This man reportedly caught his wife with their driver in a hotel room

FACT-CHECK: Did a Man Catch His Wife and Driver “Knacking” in a Hotel Room?

MUSWEN Muslim Ummah of South West

MUSWEN Renews Call for Shariah Courts to Regulate Affairs of Muslims

Corporate Affairs Commission

CAC Unveils AI-Powered Registration Portal to Revolutionize Business Registration in Nigeria

Employment: ICPC Secures Conviction of FAAN Staff

Staff of PRNigeria with federal lawmakers

Federal Lawmakers Endorse PRNigeria Fellowship, Pledge Support for Youth Empowerment

‎FACT-CHECK: Are Nigerian Soldiers Protecting Cattle Instead of Citizens in Yelewata Benue State as Shown in a Viral Video?

How a Single Electricity Market Will Empower Africa’s People and Economies

Recent Posts

  • Troops Nab Notorious Militia, Recover Weapons in Plateau State
  • Can Nigeria Lead Africa’s AI Revolution? By Shittu Yunus Shittu
  • Tinubu to Troops: You Have My Full Backing to Crush Terrorists, Separatists
  • The First Shot and the Long March: Reflections on 162 Years of the Nigerian Army By Olayemi Esan
  • 47 Years of Excellence: Honoring Asiwaju Awomolo, SAN
  • Home
  • About
  • Adverts
  • Contact
© 2020 PRNigeria. All Rights Reserved.
Latest News
Troops Nab Notorious Militia, Recover Weapons in Plateau StateCan Nigeria Lead Africa’s AI Revolution? By Shittu Yunus ShittuTinubu to Troops: You Have My Full Backing to Crush Terrorists, SeparatistsThe First Shot and the Long March: Reflections on 162 Years of the Nigerian Army By Olayemi Esan47 Years of Excellence: Honoring Asiwaju Awomolo, SANDefection Can’t Erase Malami’s Legacy of Impunity, Watchdog Group WarnsAppeal Natasha Akpoti Reinstatement Ruling, Women Groups Urge SenateBREAKING: Olubadan of Ibadan Dies After One Year on the ThroneSecurity Forces Nab 2 Suspected ESN/IPOB Terrorists in Enugu58 Inmates in Kano Sit for 2025 NECO Exams, Thanks to State GovernmentTinubu conference centre generates N700m in 3 weeks – WikePolice rescue 19 Ghanaians from human traffickers in OyoSoldiers, forest guards to tackle insecurity in Kwara StateAnambra Police Arrest Man with Human Breast; Rescue Abducted Driver, Recover Goods Worth N9.5mPolice Arrest 43 Illegal Immigrants, Human Traffickers, Rescue Victim
X whatsapp