FG Targets 4 Million BPD Oil and 10 BCF Gas Production by 2030 with New Fiscal Reforms

The Federal Government has announced its goal to achieve an oil production capacity of four million barrels per day (bpd) and 10 billion cubic feet (bcf) of gas production by 2030.

This was revealed by Mrs. Olu Verheijen, Special Adviser to the President on Energy, in a statement provided to the News Agency of Nigeria (NAN) on Friday in Abuja.

Morenike Adewunmi, Stakeholder Manager in the Office of the Special Adviser, signed the statement, highlighting the government’s commitment to key reforms and a range of incentives designed to boost oil and gas output.

These initiatives are part of President Bola Tinubu’s broader agenda to revitalize the sector, which remains a major contributor to Nigeria’s foreign exchange earnings.

Verheijen noted that since President Tinubu’s inauguration in May 2023, the administration has introduced reforms aimed at enhancing the oil and gas industry’s competitiveness by reducing operational costs and streamlining business processes.

These reforms are expected to generate thousands of new jobs, increase foreign exchange inflows, boost tax revenues, and contribute to macroeconomic stability.

To further accelerate these reforms, President Tinubu recently approved two sets of fiscal incentives. These include a VAT exemption for gas, diesel, electric vehicles, and clean cooking equipment, as well as tax credits for new investments in deepwater oil and gas exploration.

These incentives, which take immediate effect, are outlined in documents issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The key documents include the VAT Modification Order 2024 and the Notice of Tax Incentives for Deep Offshore Oil & Gas Production.

This marks the first time Nigeria has introduced a fiscal framework specifically for deepwater gas exploration since basin exploration began in 1991.

The incentives align with the Presidential Gas for Growth Initiative, aimed at accelerating the development of natural gas, promoting the use of cleaner energy in transport, and enhancing the country’s energy security.

Verheijen added that these reforms are expected to unlock $10 billion in new investments in deepwater oil and gas projects in the near future. She also emphasized that since Nigeria’s last major deepwater project, Egina, was approved in 2013, international oil companies (IOCs) operating in Nigeria have redirected over $82 billion in investments to more competitive countries.

With an additional $90 billion in planned deepwater investments globally, Nigeria’s reforms are aimed at attracting a significant share of these funds.

She praised President Tinubu for his strategic efforts in rejuvenating Nigeria’s oil and gas industry, positioning the country to reclaim its leadership in the global energy market.