The Federal Executive Council meeting which was presided over by Acting President Yemi Osinbajo has approved a new National Petroleum Policy for the country, said the Ministry of Petroleum Resources.
The approval of the 100-page document was given last week after the cabinet meeting, the ministry said.
It is intended to remove the barriers affecting investment and development of the sector.
In the upstream, maximizing production of hydrocarbons, additions to reserves and future production as well as allocation of oil licences and leases are some of the highlights of the policy.
In the downstream, the policy will deal with the commercialisation and liberalisation of downstream and petroleum products pricing.
The main aspects of the petroleum policy are Governance (Legal and Regulatory Framework) and Industry Structure, which proposes the establishment of a new National Oil Company of Nigeria (NOCN) leading to the restructuring of NNPC into autonomous business units.
The ministry included that the policy will be reviewed and updated periodically to ensure consistency in government policy objectives at all times.