Tinubu promises investors business-friendly policies in oil, gas industry

• Published On: 26 February 2025 at 17:24

President Tinubu has promised to remove obstacles to investment and operations in Nigeria's oil and gas sector.

Speaking at the 8th Nigeria International Energy Summit in Abuja, titled "Bridging Continents: Connecting Investors Worldwide with Africa's Energy Potential," he promised investors that attractive fiscal policies and business-friendly regulations would boost the industry's growth.

President Tinubu, accompanied by the Minister of State for Finance, Dr. Doris Uzoka-Anite, expressed confidence in Nigeria's potential as a global energy powerhouse. He emphasized the importance of strategic reforms, innovative policies, and a strong commitment to sustainable development in propelling the sector forward.

"As many of you are aware, we are currently implementing a number of comprehensive fiscal and tax policy reforms. These reforms aim to create a more business-friendly environment and attract both domestic and international investment by simplifying tax regulations, providing incentives, and ensuring a more transparent and predictable fiscal framework.

"Our goal is to remove barriers to entry and promote business growth in Nigeria. These measures will not only make it easier for businesses to invest and operate in our country, but they will also stimulate economic development, create jobs, and increase overall national prosperity.

"Ladies and gentlemen, the investment landscape in Nigeria's energy sector is brimming with opportunities driven by a favourable regulatory environment and strategic initiatives, aimed at attracting all kinds of investors," the president claimed.

The president outlined key policy interventions aimed at attracting investment, emphasizing Nigeria's attractive opportunities for investors to explore and develop new oil blocks in the oil and gas exploration and production sector.

He stated that the government's efforts to improve security in oil-producing regions and streamline regulatory processes have resulted in a more favorable investment climate.

"Our commitment to diversifying our energy mix creates significant opportunities in the renewable energy sector. Investors can export solar energy projects, which will benefit Nigeria's abundant solar resources, as well as green and hydro power projects, Tinubu said.

Meanwhile, Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), has revealed that an unnamed company plans to announce a $20 billion Final Investment Decision on an oil and gas project in the coming months.

Lokpobiri stated that the Tinubu administration has significantly transformed Nigeria's oil and gas sector, emphasizing that the country is open for business and ready to attract investment.

He also dismissed claims that international oil companies are leaving Nigeria, stating that they are simply shifting operations from onshore and shallow water areas to offshore fields.

Mele Kyari, CEO of NNPC Group, stated in his address that Africa is viewed as the next major player in the global energy market, emphasizing Nigeria's role as the continent's largest oil and gas producer.

Kyari reaffirmed Nigeria's position as the continent's largest oil and gas producer and a major player in the global energy market. He emphasized that oil will continue to play an important role in the global energy mix after 2025, accounting for more than 39% of global demand and exceeding 100 million barrels per day.

"NNPC sees gas not just as a transitional fuel, but as a vital and sustainable alternative for the future. Currently, more than 70% of Nigeria's population lacks access to clean cooking fuel, and more than half lacks consistent access to electricity. These gaps provide an excellent opportunity for gas to play a transformative role," Kyari stated.

Kyari explained that, in response to these realities, Nigeria has prioritized the development of critical infrastructure, regulatory frameworks, and fiscal incentives to leverage gas as a key driver of energy access and national development.