The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the oil and gas sector has secured approximately $7 billion in investment commitments, thanks to new incentive frameworks introduced by President Bola Tinubu’s administration.
Edun made this statement on Tuesday during a ministerial press briefing in Abuja.
He explained that these investments had been dormant for years, waiting for favorable economic conditions. He emphasized that President Tinubu’s initiatives in the energy sector have now activated these investments, fostering prosperity and creating jobs.
Edun also highlighted the CNG-fueled conversion programs as part of the administration’s policy framework aimed at driving growth.
As mentioned earlier, the shift to CNG is a government policy not just for vehicles but also for generators. They must be either CNG-fueled, solar-based, or electric.
“This is part of the new incentive structure. Additionally, there are new incentives in the oil and gas sector that are encouraging fresh investments We anticipate $7 billion in investments, which had been on hold, to now be realized. Similarly, other sectors are benefiting. A stable, growing economy attracts investment, boosts productivity, further grows the economy, creates jobs, and reduces poverty. This is the path Nigeria is now on,” said Edun.
Key Points to Note Nigeria’s oil and gas industry, similar to other sectors, has suffered from inadequate capital investments over the years due to issues such as insecurity, oil theft, and policy inconsistency. Pouyanne noted that TotalEnergies has not engaged in oil exploration in the oil-rich Niger Delta region for the past 12 years.
Additionally, Shell Petroleum Development Company of Nigeria Limited (SPDC) and other International Oil Companies (IOC) are re-evaluating their portfolios, as producing oil in the Niger Delta no longer aligns with their health, security, and environmental policies.
