The Federal Government through the Federal Executive Council has approved the framework of a new tax incentive to attract gas investors which will now move to the National Assembly to be passed into law
According to the Special Adviser to the President on Energy, Olu Verheijen, the new policy framework seeks to speed up developments in Nigeria’s offshore gas sector, where an estimated 67% of the resource remains undeveloped, by providing tax credits for new investments.
Since assuming office in May 2023, Tinubu has implemented a series of reforms that he said have attracted more than $30 billion in foreign direct investment.
By January 1, 2029, Nigeria (Africa’s top crude producer) also plans a gas-production allowance for greenfield developments in onshore and shallow-water locations that start producing.
According to Olu, she stated that “We intend to unlock between $5 billion to $10 billion of new investments in Nigeria in the near- to medium-term.
Once passed into law, the policy is expected to fast-track the development of natural gas, displace fossil fuels for transportation and bolster the country’s energy security.
Global companies will spend an estimated $90 billion on deep-water oil and gas projects in the coming years. This is the pool of funds that our reforms are targeting”.
