The Women in Energy Network (WIEN), a leading gender equity advocacy group in Nigeria, has expressed satisfaction with the Oil and Gas Companies Order 2024 recently issued by President Bola Ahmed Tinubu.
The Executive Order pertains to tax incentives exemption, remission, and other incentives for the development, production, processing, and consumption of non-associated gas (NAG) in the country.
In a public statement, WIEN President, Eyono Fatayi-Williams, stated that the new presidential executive order provides much-needed incentives for unlocking investments in oilfield development in Nigeria’s petroleum sector.
This order, which also offers fiscal and commercial incentives for investments in the midstream petroleum industry, marks the first significant boost for commercial players in the industry in the last two decades.
With these incentives, it is anticipated that Nigeria’s discovered gas fields will now attract development and production investments.
“The incentives introduced by President Tinubu will stimulate comprehensive activity in the petroleum industry, commercialize the nation’s vast natural gas resources, and ensure adequate supply for commercial, industrial, and domestic fuel gas applications in the economy,” Fatayi-Williams emphasized.
She highlighted that the incentives, including 10-year tax credits and allowances, make the executive order a strong driver of gas-driven industrial growth in the economy.
Unlocking the development of non-associated gas (NAG) in Nigeria will support the nation’s economic aspirations for the gas industry, such as the autogas policy, LPG penetration program, national gas expansion program, and gas-to-power program.
WIEN stated that the Executive Order will not only facilitate essential investments in the upstream petroleum industry but also improve the ease of doing business by creating a favorable fiscal environment for investment capital inflow into the oil and gas sector.
With these investment incentives now available, WIEN urged all its members to capitalize on the tax credits and allowances to actively participate in the energy industry reforms.
Fatayi-Williams noted that these incentives will drive full value chain activity in the industry, where many WIEN members are already actively engaged.
She emphasized that natural gas, besides being a reliable industrial and clean domestic fuel, has the potential to enhance commercial viability in the electricity supply industry.
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