The Special Adviser to the President on Energy, Mrs. Olu Verheijen, yesterday said the Tinubu administration opted for fiscal incentives in the oil and gas Sector with a view to attracting foreign investments.
The move, according to her, was also motivated to grow revenue and foreign exchange to stabilise the economy and the naira.
Verheijen, who spoke at a media briefing in Abuja on the energy plan of the government, said enhanced security measures in the Niger Delta are already yielding positive results with crude oil production rising by over 200,000 barrels per day over the last six months.
Besides, she said the stability in the oil producing areas has increased the availability of NLNG Trains 1-6 from 57% in 2023 to 70% in the first quarter of 2024.
The President, she said, has also directed that the contracting and project delivery timelines in the Oil and Gas Sector be reduced from 36 months to six months while the removal of fuel subsidy remains firmly on course.
The Energy Adviser with whom were the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, and the Senior Special Assistant to the President on Media and Publicity, Mr. Temitope Ajayi, among other top government functionaries, said government was working hard to make Nigeria the preferred destination for oil and gas investments in Africa.
She said: “The oil and gas sector is critical to our ability to do so. However, our current oil and gas production and investment levels fall significantly short of our potential.
“Since 2016, Nigeria has only accounted for only four per cent (4%) of Africa’s total oil and gas investments, despite possessing thirty-eight per cent (38%) of the continent’s hydrocarbon reserves.
“His Excellency, President Bola Ahmed Tinubu, is determined to re-write this narrative. His focus is to remove obstacles to investments in Nigeria; improve the Investment Climate; position Nigeria as the preferred investment destination for the Oil & Gas sector in Africa; diversify the economy for the benefit of all Nigerians.
“To achieve these objectives, Mr. President has:
·Issued a Presidential Directive to streamline and clarify the scope of the two Regulators in the petroleum sector to provide certainty and create a conducive business environment.
·Directed the NSA and Special Adviser on Energy to coordinate enhanced security measures in the Niger Delta.
“Owing to this directive, the TNP pipeline which had been repeatedly vandalised is now enjoying improved uptime; availability has practically doubled since these directives were implemented.
“This has translated to increased liquids of over 200,000 barrels/day being transported over the last 6 months. It has increased the utilization of NLNG Trains 1-6 from 57% in 2023 to 70% in Q1 2024.”
