FG’s new oil, gas policy will attract investments, says Nigerian Gas Association

The Nigerian Gas Association (NGA) has commended the federal government for the recent gazetting of three policy directives in the oil and gas sector.

The directives, issued on March 1, include introducing fiscal incentives for non-associated gas, midstream, and deepwater developments, as well as reducing the contracting cycle from 36 months to six months.

According to a statement on Friday by the association, Aka Nwokedi, NGA president, said the policies mark a significant step towards unlocking investments in the oil and gas sector.

Nwokedi lauded the directives as transformative milestones poised to revolutionise Nigeria’s energy landscape, with gas as a critical enabler.

He said the strategic introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments “is poised to attract substantial investments, bolster security measures, escalate production rates activities, amplify domestic gas utilisation, and refine the ease of doing business within the sector”.

Furthermore, he described the reduction of the contracting cycle as a “game-changer”.

The NGA president added that this would significantly reduce bureaucratic bottlenecks and improve operational efficiency in the sector.

The streamlined approach, he said, will catalyse project execution, optimise resource allocation, and provide a favourable climate for local and foreign investors.

Nwokedi also said implementing local content standards without compromising investments or cost competitiveness underscores the government’s commitment to promoting sustainable development and empowering local stakeholders.

The directives, he said, could pave the way for inclusive growth, knowledge transfer, and skill development within the Nigerian workforce by balancing local content obligations and investment incentives.

“We commend the Federal Government for its unwavering commitment to driving positive change and fostering a conducive environment for investment in the oil and gas sector,” Nwokedi said.

“These progressive policy directives mark a significant leap forward in our collective journey towards a sustainable energy future and bolstering security across Nigeria.”

Nwokedi reiterated NGA’s commitment to partnering with the federal government to actualise the nation’s strategic energy objectives and focusing on leveraging gas as a crucial catalyst of economic prosperity and national development.