The Nigerian government is working to slash oil project timelines and cut industry costs by 40 per cent through new executive orders signed by President Bola Ahmed Tinubu.
These reforms aim to streamline the contracting process, compressing it to a maximum of six months, and enhancing fiscal incentives for non-associated gas projects.
This is as International oil companies (IOCs) have shifted over $82 billion in investments away from Nigeria since 2013, primarily due to bureaucratic challenges and security concerns.
Special adviser to the President on Energy, Olu Verheijen who made these known, urged investors to seize new opportunities in Nigeria’s energy sector, highlighting untapped potential and recent reforms to attract capital.
Speaking to a diverse audience, at the ongoing African Energy Week in Cape Town, South Africa, she underscored the untapped potential within the industry and discussed the recent reforms implemented by the President Bola Tinubu administration to attract investment.
Verheijen, in a statement by the director information, State House, Abiodun Oladunjoye, noted that the country has historically underperformed in oil and gas production despite Nigeria’s wealth in the oil and gas industry.
She referenced how countries like Brazil that has only 30 per cent of Nigeria’s oil reserves has outperformed by producing 131 per cent more than current production of Nigeria.
“Despite our abundant endowments, we have underperformed against our potential. For example, Brazil holds only 30 per cent of Nigeria’s oil reserves but produces 131 per cent more. This is largely due to under-investment,” she said.
She said that since 2016, Nigeria has attracted only four per cent of African oil and gas investments, while investment has surged in other, less resource-rich nations.
Source: By Jonathan Nda-Isaiah from leadership.ng