Oredola Adeola

The Nigerian Gas Association (NGA) has hinted that the Federal Government’s recent publication of three vital policy directives in the Gazette, will not only draw significant investments but also improve security measures, elevate production rates, promote domestic gas usage, and simplify business processes in the gas sector.

Mr. Aka Nwokedi, NGA President, made this known in a statement obtained by Advisors Reports on Tuesday.

Advisors Reports gathered that President Bola Tinubu recently initiated the amendment of primary legislation to introduce fiscal incentives, reduce project execution timelines, and promote cost efficiency in the oil and gas sector.

These directives aim to showcase his policy direction to both the market and regulators.

Meanwhile, the NGA noted that the directives which involve the introduction of fiscal incentives for non-associated gas, midstream, and deepwater projects, will herald a monumental leap towards unlocking investments in the oil and gas sector.

Nwokedi described the three directives as transformative milestones poised to revolutionise Nigeria’s oil and gas sector energy landscape, with gas as a critical enabler.

He emphasised that the strategic introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments is poised to attract substantial investments, bolster security measures, escalate production rates activities, amplify domestic gas utilisation, and refine the ease of doing business within the sector.

The NGA President further said the directive streamlining the contracting process to expedite the current 36-month contracting cycle to just six months, is the Game-Changer.

He said, “This would significantly reduce bureaucratic bottlenecks and enhance operational efficiency across the sector. This streamlined approach will catalyse project execution, optimise resource allocation, and foster a conducive environment for local and international investors.

Nwokedi also emphasised that directive applying local content requirements without compromising investments or cost competitiveness underscores the government’s commitment to fostering sustainable development and empowering local stakeholders.

He said, “These directives could pave the way for inclusive growth, knowledge transfer, and skill development within the Nigerian workforce by balancing local content obligations and investment incentives.

“We commend the Federal Government for its unwavering commitment to driving positive change and fostering a conducive environment for investment in the oil and gas sector,” stated Mr. Nwokedi.

The NGA President further said, “These progressive policy directives mark a significant leap forward in our collective journey towards a sustainable energy future and bolstering security across Nigeria.”

Mr. Nwokedi reiterated the NGA’s steadfast commitment to collaborating with the Federal Government to actualise the nation’s strategic energy objectives, focusing on leveraging gas as a pivotal enabler of economic prosperity and national development.

The Nigerian Gas Association therefore in the statement reaffirmed its dedication to fostering collaboration with all stakeholders, including government agencies, industry players, and civil society organisations, to propel progress and prosperity in the oil and gas sector.