President Bola Tinubu has approved three new directives in the oil and gas sector to introduce fiscal incentives for related projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.

This followed “extensive engagements, analyses, and benchmarking with other jurisdictions” a statement signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, read Wednesday.

The statement is titled ‘President Tinubu signs executive orders on oil and gas reforms.’

According to Ngelale, Tinubu approved the “Introduction of fiscal incentives for non-associated gas, midstream and deepwater developments.

“Streamlining of contracting process to compress the contracting cycle to six months.

“The application of the local content requirements without hindering investments or the cost competitiveness.”

Wednesday’s directive is in keeping with his efforts to remove obstacles to investments in Nigeria, harness the nation’s resources and diversify the economy for the benefit of Nigerians, said the Presidency.

It is also expected to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa, the statement further explained.

Ngelale noted that these incentives were developed in collaboration with the Federal Ministries of Justice, Finance, Petroleum, Budget and Economic Planning, Federal Inland Revenue Service, the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Commission, and the Nigerian Content Development and Monitoring Board.

The details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation even as the Special Adviser to the President on Energy, Mrs Olu Verhijen, has been directed to “continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.”