1 hour ago
1
President Bola Tinubu says recent reforms in Nigeria’s oil and gas sector are designed to unlock up to 50 billion dollars in new deep offshore investments.
By Emmanuella Anokam
President Bola Tinubu says recent reforms in Nigeria’s oil and gas sector are designed to unlock up to 50 billion dollars in new deep offshore investments.
Tinubu, represented by Vice-President Kashim Shettima, said this on Tuesday in Abuja at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), established under the Petroleum Industry Act (PIA) 2021.
The President said the Deep Offshore Oil and Gas Projects Incentive Tax Order 2026 had replaced uncertainty with clear and published investment criteria.
“The order replaces that uncertainty with clear, published criteria and requires projects to be executed in Nigeria wherever applicable.
“It is designed to unlock up to 50 billion dollars in new investment, beginning with the Bonga South-West project.
“The message to the world is simple: Nigeria is open for long-term investment and the terms are clear,” Tinubu said.
He said the measure was particularly important because some of Nigeria’s largest oil prospects were located in the deep offshore but had remained undeveloped for years.
According to him, the incentive is expected to unlock as much as 50 billion dollars in new investment, beginning with the Bonga South-West project.
Tinubu said the development reinforced the Federal Government’s message that Nigeria was open to long-term investment and committed to providing clear and predictable terms.
He said the PIA had provided a strong foundation for investment by establishing clear rules, a predictable regulatory framework and mechanisms for greater participation of host communities.
The President said Nigeria had also recorded progress in restoring security in oil-producing areas, attracting investors and improving upstream investment opportunities through open and competitive processes.
He said investors who previously looked elsewhere were returning to Nigeria, which had become Africa’s leading destination for upstream investment for two consecutive years.
Tinubu also highlighted the Host Communities Development Trusts, saying more than 170 host-community trusts had been funded to support projects in education, healthcare and other areas.
He said the development of host communities was particularly significant because sustainable peace in oil-producing areas depended on fairness, inclusion and shared benefits.
The President said the administration was determined to use petroleum resources to support a broader economy driven by agriculture, manufacturing, digital and creative industries.
He said the oil and gas sector would continue to provide gas for power, industries and factories while creating opportunities for Nigerian engineers, fabricators and indigenous service companies.
He said policy reforms would only deliver results when effectively implemented, placing a major responsibility on NUPRC to ensure predictable, transparent and reliable regulatory processes.
Tinubu charged the commission to work closely with sister agencies to ensure investors were not subjected to conflicting requirements or unnecessary delays.
He also urged operators to comply with their work programmes, local-content obligations, environmental standards and commitments to host communities in return for government incentives.
The President said the government would uphold the rule of law, sanctity of contracts and accountability as key pillars for sustaining investor confidence in the sector.
He said the administration would also pursue an energy transition strategy suited to Nigeria’s needs, with greater gas supply for power, industry and clean cooking, alongside expansion of renewable energy.
Tinubu congratulated the NUPRC on its fifth anniversary, urging its management and staff to sustain the commitment, integrity and sense of purpose required to consolidate gains in the upstream sector.(NAN)(www.nannews.ng)
==========
Edited by Emmanuel Afonne
English (US) ·