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The 28 February 2024 package is a fiscal-and-regulatory reset for Nigerian upstream oil and gas, addressing the principal complaints of IOCs that have driven sustained capex flight and onshore divestment over the past decade.
1. Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024. Introduces a non-associated gas (NAG) tax credit and creates the legal basis for the Minister of Finance to issue further fiscal incentives — including bespoke deep-water oil and gas terms — to lift the post-tax IRR of new projects to internationally competitive levels. The order specifically targets greenfield NAG projects reaching first commercial production within a defined window after signing, and provides for incremental gas production credits against companies income tax / hydrocarbon tax.
2. Presidential Directive on Local Content Compliance Requirements, 2024. Instructs the Nigerian Content Monitoring and Development Board (NCDMB) to apply the Nigerian Oil and Gas Industry Content Development Act in a manner that does not block project competitiveness where in-country capacity is genuinely absent — i.e., to use waivers and capacity-development plans rather than rigid enforcement that has stalled FIDs.
3. Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024. Caps end-to-end contracting cycle times under NUPRC and NNPCL processes (long the benchmark complaint among IOCs operating in Nigeria, where typical upstream contract approval has run 24-36 months versus an international norm closer to 6-9 months) and cuts associated transaction costs.
The package is positioned as the executive-branch complement to the Petroleum Industry Act 2021 — fixing operational and fiscal pain points the PIA itself did not resolve — and is the first non-divestment-related industrial-policy lever Tinubu has deployed in his flagship oil and gas reform agenda.
largest proven gas reserves, ~209 tcf) for both domestic gas-to-power use and Nigeria LNG Train 7 / future LNG expansion.
North (FID Dec 2024 followed), TotalEnergies Ubeta gas project (FID Jun 2024 followed), ExxonMobil Owowo, ENI NEAP redevelopment.
layered on top of statutory PIA terms, which downstream investors will read as a politically discretionary regime.
of Guinea (NG vs Angola, Republic of the Congo, Senegal, Mauritania) and informs the IPTM thematic frame on emerging-market resource-state capture (where Nigeria is the counter-example — loosening rather than tightening state grip on upstream rents).
coverage of the Western Industrial Policy / EM Resource Upstream Capture themes into West Africa.
project window, sunset clause) — the underlying order text on the NUPRC portal must be parsed for the exact ad-valorem terms before this action can support quant scoring.
this order are sufficient to close the IRR gap versus competing pre-salt Brazil, Guyana Stabroek, and Namibia Orange Basin terms.
regimes risk legal challenge from competing licence holders.
directive — without implementation guidelines the directive is rhetorical.