The Federal Government has announced its ambitious targets of reaching four million barrels per day (bpd) of oil production and 10 billion cubic feet (bcf) of gas production by the year 2030. This information was disclosed by Mrs. Olu Verheijen, Special Adviser to the President on Energy, in a statement made available to the News Agency of Nigeria (NAN) on Friday in Abuja.
The statement was signed by Morenike Adewunmi, Stakeholder Manager in the Office of the Special Adviser. Verheijen highlighted that achieving these goals would involve a commitment to a reform agenda and unprecedented incentives for oil and gas production introduced by President Bola Tinubu’s administration.
“Since President Tinubu assumed office in May 2023, the government has embarked on a series of new reforms to improve the competitiveness of its oil and gas industry,” she stated. The reforms aim to reduce costs and enhance the timeliness of doing business in a sector that remains Nigeria’s biggest earner of foreign exchange.
Verheijen noted that these reforms, which include three presidential directives issued in February 2024, are expected to create tens of thousands of new jobs, boost foreign exchange earnings, stimulate tax revenues, and contribute to Nigeria’s macroeconomic stability.
She further disclosed that her office is coordinating the rollout of these reforms. In a significant move to advance ongoing structural changes in the oil and gas industry, President Tinubu has approved the issuance of two new sets of fiscal incentives.
These incentives include a VAT waiver covering gas, diesel, electric vehicles, and clean cooking equipment, along with tax credits for new investments in the exploration and production of deepwater oil and gas. The new fiscal incentives are expected to take effect immediately, as outlined in documents issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to Verheijen, the documents include the Value Added Tax (VAT) Modification Order 2024 and the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, aligned with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
“This is the first time that Nigeria is outlining a fiscal framework for deep water gas since basin exploration commenced in 1991,” she emphasized. The incentives align with the Presidential Gas for Growth Initiative, aiming to accelerate the development of natural gas, displace fossil fuels in transport, and promote the affordability of gas, thereby bolstering the country’s energy security.