The Federal Government has perfected plans to attract $10 billion in new investments in deep-water gas exploration through tax breaks and other incentives.

In the new policy framework forwarded to the National Assembly to be passed into law, the Federal Executive Council (FEC) said about 67% of Nigeria’s offshore gas sector remains undeveloped.

However, the FEC believes that by providing tax credits for new investments in the sector, more global players can be lured to the untapped sector.

In a statement published by Olu Verheijen, special adviser to the president, the government also plans a gas-production allowance for greenfield developments in onshore and shallow-water locations.

“We intend to unlock between $5 billion to $10 billion of new investments in Nigeria in the near- to medium-term,” Verheijen said.

According to Verheijen, who also heads the Energy Office of the Presidency, once this is passed into, it would fast-track the development of natural gas, deepen gas usage for transportation and bolster energy security.

It was estimated that global businesses will be spending about $90 billion on deep-water oil and gas projects in coming years, this, Verheijen said is what the country is targeting.

“This is the pool of funds that our reforms are targeting,” she said.

The president has implemented a series of reforms to rejig the nation’s economy and set Nigeria on the right path. In a recent broadcast, the president claimed these reforms have attracted over $30 billion in foreign direct investment.

Despite the changes made to core policies, Nigerians are yet to see its results as earnings remained low and inflation rate remained at an all-time high while economic uncertainties in the face of chronic Naira depreciation have eroded the profitability of businesses.

Following outrage on the recurring delays in the completion of the Port Harcourt Refinery rehabilitation project, the contractor overseeing the facility rehabilitation has said it would soon release an update on when the project will be completed.

The contractor, Maire Tecnimont SpA, announced that it will provide details on the project’s completion by or before October 2.

Responding to a letter from human rights lawyer Femi Falana, who had inquired about the completion timeline for the refinery’s rehabilitation, the contractor, through the law firm Olajide Oyewole LLP, acknowledged Falana’s request and promised to give details next week.

The law firm stated that its client, Tecnimont, had received his letters dated September 17 and 24, 2024 regarding the contract with the Nigerian National Petroleum Company (NNPC) Limited and is considering the inquiries.

According to the law firm, “Our client is considering your letters and they intend to get back to you on or before 2 October 2024.”

The $1.5 billion engineering, procurement, and construction (EPC) contract for the rehabilitation of the Port Harcourt refinery was signed between the Nigerian National Petroleum Corporation (NNPC) – before becoming a public company – and Tecnimont on April 6, 2021.

Timipre Sylva, the former minister of state for petroleum, had initially stated that the rehabilitation would occur in three phases, lasting 18, 24, and 44 months, respectively.

However, despite NNPC’s announcement on December 21, 2023, that the mechanical phase of the refinery’s turnaround maintenance was completed, and the facility was ready, there have been ongoing delays.

On March 15, Mele Kyari, NNPC’s group chief executive officer (GCEO), said that production would begin by the end of that month, but this target was missed.

Kyari later set a new deadline for early August, yet the refinery still did not commence production.

On 5 September, Adedapo Segun, NNPC’s executive vice-president of downstream operations, said that despite the mechanical completion in December 2023, further safety checks were necessary to ensure the refinery’s safe operation.

Segun emphasised that NNPC would not rush into production simply to meet a deadline if there were unresolved safety concerns.

An American multinational oil and gas corporation, ExxonMobil, has disclosed its plan to launch a $10 billion investment in Nigeria’s deep-water oil operations.

The Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Shane Harris, reaffirmed the company’s commitment to investing in Nigeria during a high-level meeting with Vice President Kashim Shettima on the sidelines of the ongoing 79th Session of the United Nations General Assembly in New York, United States.

Harris, who led other ExxonMobil executives to the meeting, noted that the company’s commitment to Nigeria remains unwavering.

He said, “As we celebrate 70 years of oil production and 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities.”

The centerpiece of ExxonMobil’s new strategy is the Owo project, a substantial subsea tie-back that could represent a $10 billion investment.

Harris further disclosed that ExxonMobil is working closely with the president’s office and the Special Adviser to the President to secure favorable fiscal arrangements to make the significant investment possible.

Despite the planned divestment of its onshore assets to Seplat Energy, ExxonMobil aims to inject $1 billion annually into maintenance operations and an additional $1.5 billion to boost production by 50,000 barrels per day over the next few years.

Buying into the investment proposal, Nigeria’s Vice President Shettima described it as a clear testament to the Federal Government’s economic reforms and investment-friendly policies.

According to Shettima, ExxonMobil’s potential investment aligns perfectly with President Bola Tinubu’s vision for a more investment-friendly Nigeria.

He promised the oil and gas company an enabling environment for the investment.

The vice president elaborated on the Tinubu administration’s efforts to ensure the ease of doing business in Nigeria, adding that the Renewed Hope Agenda places a strong emphasis on this priority.

He noted that the current administration has initiated comprehensive reforms to streamline bureaucratic processes, enhance transparency, and provide fiscal incentives that make Nigeria an attractive destination for global investors.

Addressing the specific concerns of the oil and gas sector, Shettima stated that the government is committed to revising the fiscal framework for deep-water operations. He said the federal government’s goal is to strike a balance between attracting investments and ensuring fair returns for the Nigerian people.

In a related development, an international maritime giant, DP World, has announced plans to develop a multibillion-dollar port project in Nigeria.

The Group Chairman & CEO of DP World, Sultan Ahmed bin Sulayem, revealed the company’s intentions during a courtesy visit to Shettima on the sidelines of the ongoing United Nations General Assembly in New York.

The proposal comes as a direct response to President Tinubu’s aggressive investment drive and efforts to improve the ease of doing business in the country.