By Adedapo Adesanya
Nigeria hopes to attract as much as $10 billion of new investments in deep-water gas exploration through tax breaks, the Special Adviser to President Bola Tinubu on Energy, Ms Olu Verheijen says.
This target and other measures are proposed in a new policy framework for the industry, she added.
This is as the Federal Executive Council (FEC) approved the framework, which will now move to the National Assembly to be passed into law, President Bola Tinubu said during his presidential speech to mark the 64th Independence Day on Tuesday.
In a statement, Ms Verheijen said this new policy framework seeks to speed up developments in Nigeria’s offshore gas sector, where an estimated 67 per cent of the resource remains undeveloped, by providing tax credits for new investments.
Nigeria, which is Africa’s top crude producer has abundant gas resources which remain under-tapped due to low investments and a lack of policy direction.
In recognition of this, the federal government also plans a gas production allowance for greenfield developments in onshore and shallow-water locations that start producing by January 1, 2029.
“We intend to unlock between $5 billion to $10 billion of new investments in Nigeria in the near- to medium-term,” Ms Verheijen said.
Once passed into law, the policy is expected to fast-track the development of natural gas, displace fossil fuels for transportation and bolster the country’s energy security, she added.
According to her, Nigeria will be positioning itself with global companies planning to spend an estimated $90 billion on deep-water oil and gas projects in the coming years.
“This is the pool of funds that our reforms are targeting,” she said.
Since assuming office in May 2023, President Tinubu has implemented a series of reforms that he claims have attracted more than $30 billion in foreign direct investment.
Some of these policies have been welcomed by foreign investors, however, it has created a cost-of-living crisis for Nigerians.