FG to review tariff in oil, gas sector

The Federal Government has announced its readiness to review tariffs in oil and gas sector, and have also concluded plans to extend fiscal incentives to all investors that have oil and gas facilities close to rural oil producing communities.
Speaking at the Nigerian Content Forum on Tuesday in Houston, Texas, U.S.A, the Minister of State for Petroleum Resources and Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, said government is making efforts to harness the country’s hydrocarbon resources for industrialization.
He reiterated that government’s focus is no longer on revenue from crude oil exports, but to process locally in order to meet petrochemical, power, energy and domestic needs of Nigerians.
Recently , indigenous operators in the a Nigerian oil and gas sector, raised alarm over their inability to access the Nigerian Content Development Fund, which has reached $600 million over the last three years.
But Kachikwu, who was represented by Tunde Adelana, Director, Monitoring and Evaluation, NIgeria Content Development and Monitoring Board (NCDMB) swiftly responded that the fund’s operating model was currently being reviewed to enhance its accessibility to local service companies for their capacity enhancement activities.
He said the government is determined to accelerate the implementation of the Nigerian Oil and Gas Park Scheme to enable the country’s Small and Medium Enterprises focus on production and services while infrastructure and facilities are were being developed to support domiciliation imperatives.
He said the sites are being acquired in strategic locations and physical development is expected to commence in strategic locations and physical development to commence in earnest to meet the aspirations of the industry.
“Government is determined to keep our populace productively engaged, 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 that set up in Nigeria beyond opportunities in the oil and gas sector.”