The 2024 Executive Order And Directives
The status of the Nigerian oil and gas industry as the dominant contributor to Nigeria’s external reserves undoubtedly serves as a pointer to the economic importance of the sector to the nation. Thus, fixing the Nigerian oil and gas industry has a significant positive impact on the ongoing macro-economic challenges that the nation is facing. The overarching importance of the Nigerian oil and gas sector to the overall wellbeing of the Nigerian economy may explain the continuous efforts by the Federal Government of Nigeria (“FGN”) to improve the investment and operational climate in the said sector, with the aim of attracting home-grown and international investors.
Indeed, in furtherance of the FGN’s continuing drive to boost the attractiveness of the oil and gas sector, the President of the Federal Republic of Nigeria and the Minister of Petroleum Resources, President Bola Ahmed Tinubu, on February 28, 2024, signed one (1) executive order and two (2) directives (the “Executive Orders”) aimed at introducing positive reforms to the oil and gas sector. These Executive Orders put in place, fiscal incentives for certain types of non-associated gas projects, reduce contracting costs and timelines in the sector, as well as obliterate any leakages impacting the compliance with local content requirements within the Nigerian oil and gas sector.
