Presidential Directives for Promoting Investment in the Oil and Gas Sector in 2024

The Nigerian Oil & Gas sector has witnessed a decline in investments recently. According to statistics from the National Bureau of Statistics (NBS), foreign investors sidelined the Nigerian oil & gas sector in Q2 2023 for the first time on record. The sector is significant to Nigeria’s overall economic development, and the government needs to ensure that the relevant fiscal and regulatory framework is competitive enough to restore investor confidence ultimately, attracting the necessary investment.

In furtherance of this objective, the President of the Federal Republic of Nigeria issued three directives aimed at introducing certain fiscal incentives in the oil and gas sector, reducing contracting timelines and costs, and promoting efficiency in local content requirements.

These directives were issued pursuant to his executive powers under the 1999 Constitution of the Federal Republic of Nigeria (as amended), Petroleum Industry Act 2021, the Nigerian Oil and Gas Industry Content Development Act, and the Companies Income Tax Act, respectively. They are geared towards promoting and projecting Nigeria’s investment outlook in the petroleum industry. In this newsletter, we have highlighted and shared our thoughts on the key provisions of the directives and their attendant implications for players within the Nigerian petroleum industry. We hope you will find it insightful to read.

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