Nigeria Enacts Oil Reforms to Boost Global Competitiveness, Tinubu Asserts

President Tinubu's New Policies Aim to Revitalize Nigeria's Oil Sector

by Adenike Adeodun

In a decisive move to enhance the competitiveness of Nigeria’s petroleum sector on the global stage, President Bola Tinubu recently signed three Executive Orders aimed at reforming the oil and gas industry. The president announced these developments during a strategic meeting with a delegation from ExxonMobil Upstream Company, led by its President Liam Mallon.

The newly implemented Executive Orders, which took effect on February 28, 2024, include the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024; the Presidential Directive on Local Content Compliance Requirements, 2024; and the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines. These reforms are designed to streamline operations, enhance fiscal incentives, and bolster local content requirements, thereby ensuring a more favorable business environment for oil companies operating in Nigeria.

President Tinubu emphasized the significance of these reforms, stating that they are pivotal in ensuring that no oil company operating in Nigeria faces undue operational challenges. He expressed confidence that the reforms would position Nigeria’s oil and gas sector to compete more effectively on the global stage, attracting further investments and fostering economic growth.

The discussion with ExxonMobil also addressed the ongoing divestment issues between ExxonMobil and Seplat Energy, currently under litigation. President Tinubu assured the ExxonMobil delegation of the Nigerian government’s commitment to facilitating a resolution. “We have been pushing for closure on divestment issues, and I believe the other party, Seplat, is open to this,” he noted, underscoring the government’s proactive stance in resolving sectoral disputes.

During the meeting, which also included Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), and Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), President Tinubu lauded ExxonMobil for its longstanding commitment to environmental protection and its efforts to reduce gas flaring in Nigeria. He encouraged the company to continue playing a pivotal role in the country’s development, particularly in the context of the current reforms.

“We are close enough to be fair and blunt with you, and we are not afraid to hear from you on better options and recommendations for the growth of the industry in Nigeria,” President Tinubu conveyed, highlighting the administration’s openness to constructive dialogue and partnership.

The meeting also covered critical operational topics such as decommissioning and abandonment, key aspects of the oil industry that are being addressed in accordance with the Petroleum Industry Act (PIA) and global best practices. Minister Lokpobiri reassured that the Nigerian government is committed to resolving these issues effectively. “Mr. President has given a clear directive to the NNPC GCEO and I to resolve the issue of divestment, and we are doing whatever we can to achieve that,” he affirmed.

Liam Mallon, President of ExxonMobil Upstream Company, expressed gratitude for the support and reassurances from the Nigerian government. He praised President Tinubu’s resolve to implement bold reforms within his first year in office and reaffirmed ExxonMobil’s long-term commitment to Nigeria’s energy sector. Mallon’s commendation underscores the mutual benefits anticipated from the ongoing reforms, which aim to secure a sustainable and prosperous future for Nigeria’s oil and gas industry.

The reforms introduced by President Tinubu’s administration are expected to provide significant impetus to the oil and gas sector, ensuring that it remains a cornerstone of Nigeria’s economy. By fostering a more efficient, competitive, and transparent environment, these measures are poised to attract further domestic and international investments, thereby enhancing the sector’s contribution to national development. The commitment to addressing industry challenges and ensuring compliance with international standards demonstrates Nigeria’s readiness to adapt to the evolving dynamics of the global energy market.

Source: Energy News Africa

You may also like

white logo new

Energy News Africa Plus is dedicated to illuminating the vast expanses of Africa’s energy industry.

Editors' Picks

Latest Stories

© 2024 Energy News Africa Plus. All Rights Reserved.