The ongoing reforms to revitalise investment in Nigeria’s oil and gas sector will position the nation as Africa’s premier investment destination within the energy sector, the Independent Petroleum Producers Group (IPPG) has said.
The Chairman of IPPG, Abdulrazaq Isa, said policy directives in the recent Executive Orders signed by President Bola Ahmed Tinubu, introduced several value adding fiscal incentives to encourage more investments in upstream non-associated gas (NAG) developments, midstream infrastructure, and deepwater assets.
Also, the IPPG Chairman said the orders streamlined the industry’s contracting process and seek to reform local content practices in the industry to encourage more participation by indigenous operators.
“All of these measures are pivotal to the future of the industry and have in-fact been recommended by the industry for many years,” Isa said on Sunday in a statement.
“We are encouraged to see swift progress within a relatively short period of time. We believe these actions will directly result in the following benefits for Nigeria and the oil and gas industry: reduced project cost; faster project execution timelines; reduction of waste, and multiple layers of middlemen in project contracting processes; increased number of gas projects reaching Final Investment Decision (FID); increased gas processing and gas distribution capacity, as gas infrastructure investments grow, and increased gas supply for domestic use, including power, cooking gas, etc. and for export,” he added.
Isa said IPPG stands ready to collaborate with the government and all stakeholders to ensure the successful implementation of these directives aimed at revitalising investments towards sustainable growth in the industry.
He said the IPPG believe these reforms would attract more investments into our sector, accelerate project completions, and ultimately, contribute to the prosperity of all Nigerians.
The global oil and gas industry, he noted, has continued to contend with limited availability of capital, and uncertainty as to the evolution of future demand.
In the past, he said Nigeria often unintentionally compounded these challenges and delayed investments, by inserting the government between willing private sector counter-parties.
This, he pointed out, recently became evident in the delayed approval of recent international oil companies (IOCs) divestment plans, the stalled progress in taking FIDs in the outstanding upstream Deepwater projects as well as gas resource and infrastructural development projects.
Policies enunciated by the present administration suggest a new direction that prioritises Nigeria’s strategic interests, ensure the country can harness its vast gas resources effectively and recognises the role of the private sector in driving growth in the industry.
These Executive Orders, the IPPG Chairman said, were credible impetus required to re-launch the growth of production and revenue from the oil and gas industry, and mark a significant milestone in the country’s journey towards achieving shared goal of energy security and economic stability for all Nigerians.
The IPPG is a 28-member association of indigenous Exploration and Production companies committed to the advancement and sustainability of the Nigerian oil and gas industry. IPPG advocates for policies that support the growth and development of the sector, ensuring Nigeria’s position as a leading energy provider globally.