President Tinubu Reveals Executive Order Unlocking $10 Billion Investment in Oil and Gas Sector
President Bola Tinubu announced on Tuesday, April 30, that he has recently signed an Executive Order aimed at unlocking approximately $10 billion in fresh investments within the nation’s oil and gas sector.
The announcement was made during the opening of a two-day retreat on economic transformation and development organized by the House of Representatives.
Represented by his Chief of Staff, Femi Gbajabiamila, President Tinubu disclosed that the initiative is expected to facilitate investments through Fiscal Incentives for Non-Associated Gas (NAG), Midstream, and Deepwater Oil & Gas Developments.
Additionally, the Nigerian government has recently signed consolidated guidelines for implementing Fiscal Incentives for the Oil & Gas Sector.
The President emphasized that these guidelines, a cornerstone of the Presidential Directive, aim to bolster the global competitiveness of Nigeria’s oil and gas sector while spurring economic growth.
Furthermore, the Executive Order streamlines contracting processes, procedures, and timelines from 36 months to 6 months, ensuring the implementation of local content requirements without hindering investments or the cost competitiveness of oil and gas projects.
President Tinubu highlighted ongoing reforms in the nation’s tax regimes aimed at optimizing revenue collection without adversely affecting government revenues. He expressed confidence in the governing partnership between the Executive and the Legislature to swiftly implement necessary statutory changes to benefit the nation.
Despite challenges, President Tinubu underscored the productive collaboration between the executive, the House, and the Senate, citing successful passage of numerous bills enhancing the welfare of Nigerians.
He commended the leadership of the National Assembly for their swift action in passing critical legislation, such as the Student Loans (Access to Higher Education) (Repeal and Reenactment) Act 2024.
The President emphasized the importance of constructive collaboration between the National Assembly and the Executive, stating that the collective mandate and trust of the people necessitate joint efforts toward economic progress and shared prosperity.
He acknowledged the inevitable collisions between executive and legislative prerogatives, emphasizing the primacy of the national interest in decision-making.
Speaker of the House of Representatives, Abbas Tajudeen, highlighted the House’s focus on tax reforms, modernization, and the review of the Petroleum Industry Reform Act (2021) to foster economic transformation. He underscored the imperative for legislative support to government endeavors in addressing economic challenges.
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The retreat aims to foster stakeholder engagement, constructive dialogue, and exchange of ideas on legislative strategies contributing to economic transformation.
It focuses on tax reforms instituted by President Tinubu and the implementation of the Petroleum Industry Act (2021) as vital components of Nigeria’s economic recovery and growth agenda.
Deputy Speaker Benjamin Kalu emphasized the inefficiencies in Nigeria’s tax system, hindering revenue generation and investment in public services and infrastructure. He stressed the pivotal role of the National Assembly, particularly the House of Representatives, in enacting reforms to broaden the tax base, simplify the tax code, and enhance compliance mechanisms.
Executive Chairman of the Federal Inland Revenue, Zack Adedeji, emphasized the need for collective effort in implementing tax reforms to empower citizens and ensure a resilient future.
He highlighted the service’s commitment to enhancing revenue collection through innovative approaches and customer-focused strategies.
