Nigeria targets 4 million BPD in Oil production by 2030
The Federal Government of Nigeria has announced ambitious targets of four million barrels per day (BPD) in oil production and 10 billion cubic feet (BCF) of gas production by 2030.
This announcement was made by Mrs. Olu Verheijen, the Special Adviser to the President on Energy, in a statement released on Friday, October 4.
Verheijen emphasized that these goals are part of a comprehensive reform agenda spearheaded by President Bola Tinubu’s administration since he took office in May 2023.
The government aims to boost the competitiveness of Nigeria’s oil and gas industry while simultaneously reducing operational costs and improving business efficiency in a sector that is vital for the country’s foreign exchange earnings.
“The reforms include three presidential directives issued in February 2024, which are expected to create tens of thousands of new jobs, enhance foreign exchange earnings, stimulate tax revenues, and contribute to Nigeria’s macroeconomic stability,” Verheijen stated.
To support these ambitious targets, President Tinubu has approved new fiscal incentives designed to invigorate the oil and gas sector. Among these incentives are a VAT waiver for gas, diesel, electric vehicles, and clean cooking equipment, as well as tax credits for new investments in deepwater exploration and production.
These fiscal incentives, which are set to take effect immediately, are detailed in recent documents issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The documents include the Value Added Tax (VAT) Modification Order 2024 and a Notice of Tax Incentives for Deep Offshore Oil & Gas Production, aligning with the Presidential Gas for Growth Initiative.
“This marks the first time Nigeria has outlined a fiscal framework for deepwater gas since exploration began in 1991,” Verheijen noted. “These incentives are crucial for fast-tracking natural gas development, promoting affordability, and enhancing the country’s energy security.”
Additionally, Verheijen indicated that the reforms aim to unlock $10 billion in new investments in deepwater oil and gas projects in the near to medium term.
Since the approval of Nigeria’s last deepwater project, the Egina project, in 2013, International Oil Companies have redirected over $82 billion in investments to more competitive environments abroad.
With the new reforms in place, the government hopes to attract a portion of the projected $90 billion planned for future deepwater developments.
Verheijen commended President Tinubu for his strategic initiatives that are generating positive momentum in the oil and gas industry, signalling a renewed era of growth and investment in Nigeria’s energy landscape.
