A government official aims to attract up to $10 billion in new investments in deep-water gas exploration in Nigeria based on tax advantages and other measures outlined in a new industrial policy framework.
President Bola Tinubu stated earlier this week that the Federal Executive Council has accepted the framework and will now send it to the National Assembly for passage into law.
According to a statement released on Thursday by Tinubu’s special adviser, Olu Verheijen, the new policy framework aims to accelerate advancements in Nigeria’s offshore gas sector, where an estimated 67% of the resource remains unexplored. Tax credits are offered for new investments.
According to documents reviewed by Bloomberg, the largest crude producer in Africa also intends to provide a gas output permit for greenfield projects in onshore and shallow-water regions that begin production by January 1, 2029.
“We intend to unlock between $5 billion to $10 billion of new investments in Nigeria in the near- to medium-term,” Verheijen explained.
Verheijen, who also heads the Energy Office of the Presidency, stated that once the policy is enacted into law, it is anticipated to accelerate the development of natural gas, replace fossil fuels for transportation, and improve the nation’s energy security.
She predicted that global firms will spend $90 billion on deep-water oil and gas projects in the next years. “Our reforms are focused on this particular pool of funds,” she stated.
Tinubu claimed that since taking office in May 2023, he has carried out some reforms that have drawn over $30 billion in foreign direct investment. Although international investors have praised the policy change, the most populous country in Africa is experiencing a cost-of-living issue as a result, which has led to violent riots.
