Oil
$10.8bn Crude oil Fund not Missing – NNPC
ABUJA – The Nigerian National Petroleum Corporation (NNPC) in a statement issued in Abuja by Dr Omar Ibrahim, General Manager, Group Public Affairs Division on Sunday has dismissed the claim that the sum of $10.8billion, out of the alleged unremitted $49.8 billion crude oil fund, was missing.
Ibrahim stated that the issues surrounding the allegation of unremitted $49.8billion against the NNPC, had since been explained last December at a joint press conference by NNPC, the Central Bank of Nigeria (CBN), Ministry of Finance, and Ministry of Petroleum Resources.
“There was no where it was admitted by any of the parties in the course of the press conference, that the sum of $12billion or $10.8billion, out of the alleged unremitted $49.8billion, is missing,” he said.
“The truth of the matter is that as at the time of the press conference, $30 billion of the alleged unremitted oil revenue, had been reconciled by all the parties involved.
“Dr Okonjo-Iweala, Coordinating Minister of the Economy did explain that the reconciliation was an ongoing process and that the balance of $10.8billion is still being reconciled,” the statement said.
NNPC added that at no time did anybody, neither the Coordinating Minister of the Economy, nor Malam Lamido Sanusi, CBN Governor, say that the outstanding $10.8billion was missing.
The statement said it was also pertinent to further clarify that NNPC, as a national oil company, was saddled with certain onerous responsibilities that other oil companies were freed from.
“For instance, as the supplier of last resort, NNPC has the responsibility of ensuring that there is adequate supply of petroleum products, whether the market is favourable or not.
“The yet to be reconciled $10.8 billion can be located in the expenses on some of the responsibilities which the corporation carries out on behalf of the Federal Government with respect to the domestic crude oil utilisation,” it stated.
The organisation said that these included the unpaid subsidies on kerosene and premium motor spirit (PMS), bulk importation of the PMS and the maintenance of national strategic reserves for petroleum products.
It said this was in addition to the cost of repairing and maintaining vandalised pipelines.
“The corporation is left to bear these responsibilities on behalf of the Federal Government, the cost incurred in this mandate is also part of the $10.8 billion yet-to-be-reconciled outstanding figure,” it stated.
It stressed that all the parties involved in the reconciliation process, were aware of these facts, adding that the figures were being thoroughly scrutinised.
NNPC further stated that at the end of the day, the parties would make their findings public as they did last time.
“It is therefore incorrect for anyone to continue to misinform the public that the sum of $10.8billion or $12billion of oil revenue, is missing,” the statement added.
– NIGERIAN BULLETIN
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
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