Nigeria Targets $10 Billion Investment with New Oil & Gas Sector Guidelines
The Nigerian Government aims to attract approximately $10 billion in investment by implementing consolidated guidelines for the Oil & Gas Sector.
According to a statement from the Ministry of Finance on Tuesday, these guidelines, a key component of Presidential Directives, are designed to boost the global competitiveness of Nigeria’s oil & gas sector while fostering economic growth.
The signing of the guidelines took place at the Ministry’s headquarters in Abuja, presided over by the Minister of Finance, Wale Edun.
The Presidential Directives, spearheaded by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, aim to establish a competitive framework for Nigeria’s oil & gas industry.
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“These Consolidated guidelines for the fiscal incentives are based on extensive collaboration across Finance and Petroleum Ministries and involve several key regulatory bodies, including the Federal Inland Revenue Service, the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority,” part of the statement read.
According to Verheijen, these new measures have been designed to deliver a competitive Internal Rate of Return for Oil & Gas Projects and attract over $10bn in new investments within the next 12-18 months.
“They also underscore Nigeria’s commitment to reaching its long-term oil production target of 4 million barrels per day whilst enhancing the reliability of gas supply to boost export earnings and fuel Nigeria’s industrialisation,” she said.
Verheijen disclosed that among the guidelines signed was the NUPRC Guideline on Hydrocarbon Liquid Content in a Non-Associated Gas (NAG) Field, which is essential for accurately categorising and quantifying the hydrocarbon liquid content in these fields.
On his part, Edun said, “The idea is to create an atmosphere conducive to international competitiveness such that investment comes in. And in this case, we know it’s foreign direct investment.”
