The Federal Government has unveiled plans to review tariffs and introduce fresh incentives for investors in the oil and gas industry.
The move, according to the Minister of Petroleum Resources, Mr. Ibe Kachikwu, is aimed at boosting investments in oil and gas facilities close to rural producing communities.
Kachikwu stated this at the 2016 Nigeria Content Investment Forum organised by Sweetcrude Reports in collaboration with Nigeria Content Development and Monitoring Board (NCDMB) in Houston, Texas, USA.
The Minister who was represented by the Director, Monitoring and Evaluation of NCDMB, Mr. Tunde Adelana, explained that government shall extend fiscal incentives to all investors that set up factories close to rural oil producing communities.
“Tariffs that put local production at a disadvantage are being reviewed as a way of enhancing competitiveness of locally made goods that are critical to the industry including steel pipes and valves,” he said.
Kachikwu said government was making efforts to harness the country’s hydrocarbon resources for its industrialisation.
He reiterated that government’s focus was no longer on revenue from crude oil exports but on local processing to meet petrochemical, power, energy and domestic needs of Nigerians.
“Government is determined to keep our populace productively engaged and as such, we are working on enforcing local content practice in other sectors especially power, construction and information and communication technology.
“As you may be aware, the National Assembly is currently in the process of amending our Public Procurement laws with stricter local content provisions. The cross sectorial synergy that will be created therein will expand market opportunities for oil equipment manufacturers set up in Nigeria beyond opportunities in the oil and gas sector,’’ he said.
Addressing Nigeria’s Small and Medium Enterprises (SMEs) and Houston’s Original Equipment Manufacturers (OEMs) at the event, the Minister said specific areas of focus for local content development include infrastructure development, fiscal incentives, funding, addressing long contracting cycle and in-country processing of hydrocarbon resources.