President Bola Tinubu is enticing oil firms around the world with incentives to attract investments.
If investors turn up and invest in Nigeria’s oil and gas industry, the government will be able to revive the economy and increase crude oil production. This is the hope of the people.
Nigeria is introducing incentives to attract oil and gas investment as Africa’s biggest economy works to ramp up crude output.
The Chief Executive Officer of Nigeria’s Upstream Petroleum Regulatory Commission, Gbenga Komolafe, said Nigeria was considering replacing signature bonuses with lump sums for production.
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The country is also tackling delays in licensing.
Nigeria’s stressed oil industry has been a drag on the economy, with the country unable to meet OPEC+ quotas amid supply disruptions, crude theft, and vandalism.
President Bola Tinubu has initiated sweeping reforms to revive the economy and put it on the track of growth since taking over in May 2023.
Tinubu believes that the recovery of the energy sector is vital to achieving the double-digit expansion he’s targeting.
Doing Business Differently
Reducing costs for contractors and addressing the issues that hold up production agreements represent a “paradigm shift,” Komolafe said.
In the next bidding round, happening “very soon,” potential investors will “see that Nigeria is ready to do business differently.”
Tinubu has pledged to increase oil output — currently around 1.4 million barrels a day — to 4 million a day by 2030 – an aspiration many analysts believe to be implausible.
Boosting production is not only a question of cutting red tape.
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In recent years, major oil firms have exited Nigeria mostly for reasons around pipeline sabotage
Komolafe revealed that the government is working to upgrade infrastructure, end theft, and vandalism, and improve community relations.
Also, he wondered who said that capital inflows into the industry had dropped by about 74% in almost a decade.
