Nigeria’s Oil Sector Attracts $3 Billion in Investments
Government Incentives Boost Nigerian Oil and Gas Industry
ExxonMobil’s $10 Billion Investment in Nigeria’s Oil Sector
BY SHEKWOPEYELO
The Nigerian Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the federal government’s recent incentives in the oil and gas sector have successfully attracted $3 billion to the economy. This announcement was made during the Nigerian Economic Summit in Abuja on Tuesday.
In addition to the $3 billion investment, ExxonMobil has revealed plans to invest approximately $10 billion in Nigeria’s deep-water operations. Moreover, several indigenous oil companies are also stepping up their investments in the sector.
Edun emphasized the importance of the oil and gas sector as the primary source of foreign exchange and government revenue. He stated, “The oil and gas sector has been revamped. We are reducing the time it takes to process investments and transactions. The incentives have led to a total investment of about $3 billion.”
He continued, “ExxonMobil announced a $10 billion investment, and more Nigerian companies are getting involved. The oil sector is our first focus for generating foreign exchange and oil revenue.”
Manufacturing Sector Growth
In addition to developments in oil and gas, Edun pointed out similar trends in the manufacturing industry. He noted that industry leaders are eager to invest due to government incentives like tax exemptions and reforms designed to stimulate growth.
He shared that a major manufacturer recently disclosed plans for a $2 billion investment in the sector. “Just last Saturday, I met with a significant manufacturer. We’ve implemented various incentives and tax reforms for the manufacturing sector to help reduce their costs,” Edun said. “They are now prepared to invest $1.2 billion across different areas of the economy, thanks to these specific reforms.”
Key Insights
Previously, the federal government introduced tax reliefs for deep offshore oil and gas projects and excluded VAT on LPG, CNG, and diesel. The Ministry of Finance confirmed that these fiscal incentives aim to bolster investments in the oil and gas sector.
The ministry issued the Value Added Tax (VAT) Modification Order 2024 and the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, as part of the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
