Mrs. Olu Verheijen, the Special Adviser to President Bola Ahmed Tinubu on Energy, has shed light on the rationale behind the President’s decision to sign Executive Orders aimed at revitalizing the gas and energy sectors of Nigeria’s economy.
Speaking to the media in Abuja on Friday, Mrs. Verheijen emphasized that gas remains pivotal for Nigeria’s energy stability and economic growth.
Highlighting the significance of the President’s actions, Mrs. Verheijen explained that the initiatives were designed to make gas more accessible and affordable for Nigerians while reducing dependency on petrol and diesel. She underscored the importance of clear and consistent policies to accelerate economic growth and diversify the economy.
Mrs. Verheijen pointed out that Nigeria’s current oil and gas production and investment levels fall short of its potential, despite possessing substantial hydrocarbon reserves. To address this, President Tinubu is focused on creating a conducive business environment to attract investments in the oil and gas sector, thus boosting revenue and stabilizing the economy and currency.
The Special Adviser highlighted specific directives issued by the President to streamline regulatory processes and provide certainty for industry players. As a result, infrastructure such as the TNP pipeline has seen improved uptime, contributing to increased liquids transportation and availability of NLNG trains.
Additionally, fiscal incentives have been introduced to promote the penetration of Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG), aiming to ease the impact of fuel subsidies on transportation costs and stabilize cooking gas prices.
Mrs. Verheijen outlined measures to facilitate the monetization of Nigeria’s extensive oil and gas resources, including reducing contracting timelines and project delivery cycles. Directives have also been issued to reform local content practices, ensuring they support investments and competitiveness in the sector.
To ensure effective implementation, responsibilities have been assigned to various government agencies, with coordination overseen by Mrs. Verheijen’s office. The Minister of Finance and the Federal Inland Revenue Service will spearhead fiscal amendments and guidelines, respectively, to support deep-water developments and the implementation of fiscal incentives.
The initiatives outlined by Mrs. Verheijen reflect President Tinubu’s commitment to transforming Nigeria’s energy landscape and fostering sustainable economic growth through strategic reforms in the gas and energy sectors.
