Library / Federal Republic of Nigeria Official Gazette No. 42 Lagos - 5th March, 2024
Federal Republic of Nigeria Official Gazette No. 42 Lagos - 5th March, 2024

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PRESIDENTIAL DIRECTIVE ON REDUCTION OF PETROLEUM
SECTOR CONTRACTING COSTS AND TIMELINES, 2024
[28th Day of February, 2024]
WHEREAS, comparative analysis has shown that the contracting cycle
within the Nigeria’s petroleum sector exceeds global industry standards by 4
to 6 times and adversely affects our competitiveness for potential investors ;
WHEREAS, the Federal Government of Nigeria (FGN), with a view to
promoting transparency and efficiency, and to encourage investment in the
petroleum sector, aims to —
(a)  shorten the procedure for getting approval for contracts to which
companies in the petroleum sector and companies controlled by the FGN
are parties ; and
(b)  give effect to and reinforce the provisions of the Business Facilitation
(Miscellaneous Provisions) Act, 2022 and enhance the ease of doing business
within the petroleum sector ;
WHEREAS, there is the urgent and compelling need to reform the contracting
process in petroleum sector by —
(a)  simplifying and compressing the contracting cycle to a period of not
more than six months, in alignment with global industry practice ;
(b)  raising contract approval thresholds to account for the rate of
inflation ; and
(c)  raising the duration for third party contracts from three to five years
with the option of renewal for an additional two years ;
AND WHEREAS, the FGN is committed to improving the investment climate
and positioning Nigeria as the preferred investment destination for the petroleum
sector in Africa.
NOW THEREFORE, pursuant to the powers conferred upon me by section 5
of the Constitution of the Federal Republic of Nigeria, 1999 (as amended),
section 3 of the Petroleum Industry Act, 2021 and section 100 of the Nigerian
Oil and Gas Industry Content Development Act, 2010, I, Bola Ahmed Tinubu,
GCFR, President, Federal Republic of Nigeria and Minister of Petroleum
Resources, direct the Ministry of Finance Incorporated (MOFI) and Ministry
of Petroleum Incorporated (MOPI), as shareholders of the Nigerian National
Petroleum Company Limited (NNPCL), and the Nigerian Content Monitoring
and Development Board (NCDMB) as follows —
Commence-
ment.
S. I. No. 3 of 2024