The Nigerian government has announced that it is implementing strategic incentives to lure investment into its oil and gas sector.
Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission, revealed this, stating that the initiative is aimed at reinvigorating the industry.
According to him, one significant alteration involves replacing signature bonuses — payments made by companies to governments upon contract signing — with lump-sum arrangements for production.
He said this shift, along with efforts to address licensing delays, aims to streamline processes and enhance the investment environment within the country’s oil and gas sector.
Komolafe highlighted that cost reduction for contractors and addressing production agreement delays marks a significant departure from prior practices.
He added that prospective investors will witness Nigeria’s commitment to conducting business differently in the upcoming bidding rounds.
Komolafe also noted a significant decline of approximately 74% in capital inflows into the industry over almost a decade, emphasizing the urgency of these reforms to attract much-needed investment.
“Reducing costs for contractors and addressing the issues that hold up production agreements represent a paradigm shift.
“In the next bidding round, happening very soon, potential investors will see that Nigeria is ready to do business differently,” he said.
