Nigeria's President Bola Tinubu named 45 ministers in his new cabinet as his government looks to tackle huge security and economic problems
AFP

The Federal Government has introduced new financial benefits to boost the oil and gas industry's role in Nigeria's economy, aiming to attract $10 billion in new investments within 18 months.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, witnessed the signing ceremony for the incentives at the headquarters of the Federal Ministry of Finance in Abuja, according to the statement issued on Tuesday.

The statement mentioned that President Bola Ahmed Tinubu signed three executive orders on Feb. 28, as part of the federal government's efforts to enhance the country's investment.

"These Consolidated guidelines for the fiscal incentives are based on extensive collaboration across Finance and Petroleum Ministries and involved several key regulatory bodies," Special Adviser to the President on Energy Olu Verheijen mentioned in a statement, Punch reported.

The regulatory bodies include the Federal Inland Revenue Service, the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

These new measures aim to ensure that oil & gas Projects offer a competitive Internal Rate of Return, which could attract over $10 billion in new investments within the next 12 to 18 months, as per Verheijen.

"They also underscore Nigeria's commitment to reaching its long-term oil production target of 4 million barrels per day whilst enhancing the reliability of gas supply for to boost export earnings and fuel Nigeria's industrialization," she said.

The special adviser explained that the signed guidelines include the NUPRC rules on hydrocarbon liquid content in a non-associated gas field. These rules are crucial for correctly identifying and measuring the amount of hydrocarbon liquids in the fields.

Furthermore, she mentioned other guidelines that address the eligibility of tax credits and allowances for NAG greenfield development, as well as the midstream capital and gas utilization allowance. These guidelines aim to provide taxpayers with clear instructions on how to calculate these benefits.

The signing ceremony was attended by various stakeholders including the Nigerian National Petroleum Company (NNPC) Limited, the Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG).