Olu Verheijen, the special adviser on energy to President Bola Tinubu, articulated that the recent oil and gas reforms under President Bola Tinubu’s administration aim to rejuvenate the economy and enhance revenue generation within the sector. Verheijen conveyed this message during a ministerial press briefing held in Abuja on Friday, March 8, 2024, underscoring Nigeria’s emerging status as a favored destination for global oil and gas investments.
Highlighting the significance of President Tinubu’s executive order, Verheijen emphasized its role in revitalizing the oil and gas sector, attracting increased investment, bolstering revenue generation, and fostering economic stability. The special adviser reiterated the government’s commitment to reversing negative investment trends within the sector.
Verheijen outlined key directives issued by President Tinubu to streamline regulatory frameworks in the petroleum sector and bolster security measures in the Niger Delta region. Notably, the directives have led to tangible improvements, including enhanced operational efficiency of the TNP pipeline and increased availability of NLNG Trains 1-6.
Additionally, Verheijen discussed fiscal measures implemented by the president to promote the adoption of compressed natural gas (CNG) and liquefied petroleum gas (LPG), aiming to mitigate the impact of petrol subsidy removal on transportation costs and stabilize cooking gas prices nationwide.
The fiscal incentives for Non-Associated Gas (NAG), Midstream, and Deepwater Oil & Gas Developments seek to facilitate the monetization of Nigeria’s extensive oil and gas resources. Verheijen highlighted the untapped potential of Nigeria’s gas reserves and the imperative to meet domestic demands for industry, power, and cooking.
In summary, President Bola Tinubu’s recent executive order signifies a pivotal step towards revitalizing Nigeria’s oil and gas sector, backed by extensive stakeholder engagements and a strategic focus on incentivizing key developments within the industry.
