The Senate Minority Whip, Senator Osita Ngwu, has commended President Bola Tinubu for signing an Executive Order on Oil & Gas Reforms, saying it will spur investment and engender economic prosperity of the country.
The lawmaker, who represents Enugu West in the Senate, gave the commendation in reaction to Tinubu’s policy directives to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa.
According to presidential spokesman, Ajuri Ngelale, following extensive engagements, analyses, and benchmarking with other jurisdictions, President has initiated the amendment of primary legislation to introduce fiscal incentives for oil and gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.
Ngelale had on Wednesday said: “Recognising the urgency to accelerate investments, the President has directed as follows: Introduction of fiscal incentives for non-associated gas, midstream and deepwater developments, Streamlining of contracting process to compress the contracting cycle to six months., and application of the local content requirements without hindering investments or the cost competitiveness.”
While welcoming the development, Ngwu, on Thursday, described it as a wonderful step that will encourage investors and push up Nigerian oil and gas market and service delivery.
Acknowledging that oil and gas are the backbone of the Nigerian economy, Ngwu said the move by Tinubu holds the potential for repositioning the sector for optimal production and consequent economic rejuvenation as well as wealth creation for the country.
“I welcome wholeheartedly, the signing of the Executive Order on Oil & Gas Reforms by President Bola Tinubu. This is not just one of a presidential directive but a sure move the reposition the sector which is key to the economic development of the country,” Ngwu said on Thursday. ”
The plan to amend the primary legislation to introduce fiscal incentives for oil & gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements is a also a right step and the parliament will support it by reviewing the PIA currently in force to meet up with evolving realities.
“Beyond that, as a legislature, oil and gas reforms is already part of legislative agenda and we will surely leverage this initiative to further provide the needed legislations and interventions for the overall transformation of the sector to chiefly attract investors whose confidence will be built while Nigerians reap the benefits of their God-given resources,” Ngwu stated.
