Nigeria’s President signed three executive orders to stimulate the oil and gas industry.
March 2024
The executive orders signed by President Tinubu to effect change in the oil and gas industry were drafted through close collaboration with stakeholders in the industry. Through this collaboration, the painpoints of these stakeholders were taken into consideration in the improvement of the current regulations. While we believe these improvements will increase investors’ profitability (consequently, confidence), particularly in the gas space, we also believe in some cases, it could come at the cost of local content development.
It appears these regulations tilts towards the investors in the event of a clash between profitability and local content. Albeit vaguely, it, however, mandates NCDMB to carefully monitor impacts on local content and ensure there is a reasonable balance between profitability and social impact. In effect, while the directives are steps in the right direction, it would take the concerted efforts of all stakeholders to ensure that it has its desired effect on investment with as minimal impact on local content as possible.
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