Olu Verheijen, the Special Adviser to President Bola Tinubu on Energy, has revealed that under President Tinubu’s administration, the Nigerian government has opted for fiscal incentives in the oil and gas sector to attract investments.
Verheijen emphasised the need to address fundamental issues in the sector to make Nigeria the preferred destination for oil and gas investments in Africa.
Her words: ”The government has implemented enhanced security measures in the Niger Delta, resulting in increased liquids of over 200,000 barrels/day in the last six months.
”NLNG Trains 1-6 utilisation has also risen from 57% in 2023 to 70% in Q1 2024.
”To streamline the regulatory framework in the petroleum sector, President Tinubu issued a directive to clarify the scope of regulators and create a conducive business environment.
”The President aims to expedite the oil and gas sector’s contracting and project delivery timelines, reducing them from 36 months to six months.
”The government is working to make Nigeria the preferred investment destination for oil and gas in Africa, and fiscal incentives are part of the strategy to reverse the over 70% undeveloped gas reserves.”
Verheijen stated that the removal of fuel subsidies is still on course, but the government reserves the right to intervene to ensure price stability and prevent social unrest.
She added: ”President Tinubu’s administration is focused on addressing obstacles to investments, improving the investment climate, and diversifying the economy for the benefit of all Nigerians.
”The government seeks to grow revenue and foreign exchange to stabilise the economy and currency.”
Notably, Nigeria, possessing 38% of Africa’s hydrocarbon reserves, has accounted for only 4% of the continent’s total oil and gas investments since 2016.