Tinubu Announces $17.5bn Fiscal Incentives In New Oil & Gas Investments, 2.3 Million Jobs Expection
President Bola Tinubu has made the declaration that the oil and gas sector will take on new phases in the country.
He made this known in a directive handed over to the Federal Ministry Of Information and National Orientation. A copy of which was cited by our correspondent.
The directive aimed at renewing hope for the oil and gas sector in Nigeria.
In the directive, it was stated that operating costs for oil and gas operations in Nigeria which currently exceeds global standards by 40 percent will reduce drastically.
Also, these new directives have the potential to generate up to 1 bcf per day incremental domestic supply and create 2.3 million jobs.
However, fiscal incentives will attract up to $17.5 billion in new oil and gas investments.
Also, Nigeria’s oil and gas contracting cycle will be reduced to six months from 38 months to speed up production of oil and gas.
It was noted that oil production has risen from 1.22 mbpd in Q2 2023 to 1.6 mbpd in Q1 2024 which in alignment with the directive renews hope for the oil and gas sector.
Enhanced security measures across the Niger Delta have delivered increased revenue from LNG exports and cargoes have grown from an average of 16 in 2023 to 21 in Q1 2024.
With these new directives, it is anticipated that these will effect positive changes in the oil and gas sector.
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