The Group Chief Executive Officer of NNPC Ltd, Mele Kyari says President Bola Tinubu’s reforms in the oil and gas sector have created a stable fiscal environment with long-term profitability.
He stated this at the 2025 Nigeria International Energy Summit (NIES), on Tuesday in Abuja.
Kyari said that many Final Investment Decisions (FIDs) announced in recent times were as a result of the Presidential Executive Order on oil and gas, which provided fiscal incentives for ease of doing business.
“Today, investors are increasingly recognising that investing in Nigeria, particularly in the oil and gas sector, offers not only the potential for solid returns but also a stable fiscal environment that promises long-term profitability.
“So, there is so much space that gas can fill and that is why this country has taken the next step, in building the necessary infrastructure, creating the framework and necessary fiscal incentives that are required.
“And all these would not have happened without the right leadership which has brought something to the table, creating new fiscal tax and incentives for non-associated gas, executive orders, ease of doing business and procurement and investments,” he said.
He expressed satisfaction over the current reform, which was tackling bureaucracy, enhance tax administration, reduce multiple taxation and boost investors’ confidence.
According to him, the world recognises Africa as the next destination to the global energy market, recognising Nigeria’s position as the largest producer of oil and gas in the continent.
Kyari said that oil would remain a critical component of the global energy mix, contributing over 39 per cent of global oil demand as the world would require more than 100 million barrels of oil daily.
“At NNPC Ltd., we view gas not merely as a transitional fuel, but as a vital and sustainable alternative for the future.
“Currently, over 70 per cent of Nigeria’s population lacks access to clean cooking fuel, and more than 50 per cent remains without reliable access to electricity.
“These gaps present a significant opportunity for gas to play a transformative role,” Kyari said.
He explained that it was based on these realities that Nigeria was prioritising the development of the essential infrastructure, regulatory frameworks, and fiscal incentives needed to achieve energy security and drive national development.
Also speaking, Dr Abdurazaq Isa, Chairman, Independent Petroleum Producers Group (IPPG)/Waltersmith Group, lauded the president for the bold, progressive and comprehensive reforms being witnessed in the oil and gas sector.
Isa said Tinubu administration’s transformative policies had continued to bring a steady turnaround with the intended outcomes beginning to manifest.
He said the transformation had specifically manifested in the steady growth of crude oil production, enabling Nigeria to meet the Organisation of the Petroleum Exporting Countries (OPEC) quota of 1.5 million barrels of oil per day.
He said the reforms brought about significant improvement in the security situation in the Niger Delta, creating conducive operating environment for oil operations to thrive.
Isa acknowledged the announcement of FIDs in the tune of 5.5 billion dollars on the NNPC Ltd. and Total Energy’s oil field development and Shell’s Bonga North, in direct response to the Presidential Executive Orders issued in 2024.
“Diligent implementation of the Decade of Gas Initiative, which has unlocked critical gas development projects supporting LNG production, gas-to-power initiatives and cheaper fuel switching initiatives, notably the Presidential CNG Initiative.
“The initiative has also led to the settlement of outstanding legacy gas debts, thereby boosting investor confidence.
“Announcement of annual bid rounds by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the exploitation, appraisal and development of acreages, signalling an intention for sustainable production and reserve growth.
“The sustained implementation of the downstream sector deregulation, which has significantly improved petroleum product availability and market efficiency.
“And then the conclusion of major divestment’s, transactions and deals, paving the way for Nigerian independence to dominate the onshore and shallow water acreages,” he said.
Isa said these accomplishments did not come easy and should not be taken for granted. (NAN)
