The Federal Government of Nigeria has launched consolidated guidelines aimed at catalyzing investment in the oil and gas sector, with a target of attracting $10 billion in investments. The guidelines, a key component of Presidential Directives, were signed by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the Federal Ministry of Finance headquarters in Abuja.
Developed and coordinated by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, the guidelines seek to bolster the global competitiveness of the Nigerian oil and gas industry while fostering economic growth. Collaboration across various government bodies, including the Finance and Petroleum Ministries, the Federal Inland Revenue Service, the Nigerian Upstream Petroleum Regulatory Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, was instrumental in crafting these guidelines.
Verheijen highlighted the measures’ objectives, emphasizing their role in delivering a competitive Internal Rate of Return for oil and gas projects and attracting substantial investments within the next 12-18 months. She reaffirmed Nigeria’s commitment to reaching its long-term oil production target of 4 million barrels per day and enhancing gas supply reliability to bolster export earnings and fuel industrialization.
Among the guidelines signed were those addressing the categorization and quantification of hydrocarbon liquid content in Non-Associated Gas (NAG) fields, as well as tax credits and allowances for Non-Associated Gas Greenfield Development and Midstream Capital and Gas Utilization Allowance. These guidelines aim to provide clarity to taxpayers regarding the computation of benefits and promote transparency in the sector.