Nigeria aims for $10 billion investment with new fiscal incentives for oil, gas sector

In a bid to revitalize the oil and gas sector and attract substantial investment, the Nigerian Government has unveiled consolidated guidelines for implementing fiscal incentives, aiming to secure approximately $10 billion worth of investments.

The Ministry of Finance announced on Tuesday that the guidelines, a key component of the Presidential Directives, are poised to bolster the global competitiveness of Nigeria’s oil and gas industry while fostering economic expansion.

The signing of the guidelines, overseen by Finance Minister Wale Edun at the Ministry’s headquarters in Abuja, marks a significant step in the government’s efforts to create an attractive framework for investment in the sector.

According to the Ministry’s statement, the Presidential Directives, spearheaded by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, were meticulously crafted to establish a competitive landscape for the Nigerian oil and gas sector.

Verheijen emphasized that the new measures are designed to generate a competitive Internal Rate of Return for Oil & Gas Projects and are expected to lure over $10 billion in fresh investments within the next 12-18 months. These initiatives underscore Nigeria’s commitment to achieving its long-term oil production target of 4 million barrels per day while enhancing gas supply reliability to bolster export earnings and drive industrialization.

Among the guidelines signed is the NUPRC Guideline on Hydrocarbon Liquid Content in a Non-Associated Gas (NAG) Field, essential for accurately assessing and quantifying hydrocarbon liquid content in these fields.

Minister Edun emphasized the government’s aim to create a conducive environment for international competitiveness, particularly to attract foreign direct investment (FDI) into the oil and gas sector.