Nigeria hopes to attract up to $10 billion in new investment in deep-sea gas exploration through tax breaks and other measures proposed in a new policy framework for the industry, government officials say. .
President Bola Tinubu said earlier this week that the Federal Executive Council had approved the framework and it would now be submitted to Parliament to be passed into law.
The new policy framework aims to accelerate the development of Nigeria’s offshore gas sector, where an estimated 67% of resources remain untapped, by providing tax credits for new investments, Tinubu’s Special Adviser Or Verheijen said in a statement on Thursday.
Africa’s largest oil producer also plans gas production quotas for onshore and shallow-water greenfield developments to begin production by January 1, 2029, according to documents seen by Bloomberg.
“We intend to unlock between $5 billion and $10 billion of new investment in Nigeria in the near to medium term,” Verheijen said.
Verheijen, who also heads the presidential energy department, said the policy, if passed, is expected to accelerate the development of natural gas, replace fossil fuels for transportation, and strengthen the country’s energy security. said.
He said global companies will spend an estimated $90 billion on deepwater oil and gas projects over the next few years. “This is the funding pool that our reforms are targeting,” she said.
Since taking office in May 2023, Tinubu has implemented a series of reforms that he says have attracted more than $30 billion in foreign direct investment. The policy overhaul has been welcomed by foreign investors but has triggered a cost of living crisis and deadly protests in Africa’s most populous country.
