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AMCON rebuke claims of seizing Capital Oil

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ABUJA – The confusion that followed the takeover of Capital Oil and Gas Industries Ltd by the Asset Management Corporation of Nigeria (AMCON) has been laid to rest with the clarification on the issue by Mustafa Chike-Obi, the Managing Director/CEO of AMCON.

The AMCON boss said: “AMCON has not taken over Capital Oil but is managing it for a two-year period.” According to Chike-Obi, when Ifeanyi Ubah decided to run for the governorship position of Anambra State, “We gave him two choices; complete breakaway from the company for two years while he runs or he agrees not to leave for two years. He chose to run. So, we will appoint MD, CFO and another ED to run the company. He still owns it, but he cannot write any cheque or sign any money out of the company for two years.”

Ifeanyi patrick ubah Capital oil CEOChike-Obi stated further: “We told him not to run for governorship, but if he runs for governor, he cannot run his company because we do not want to be seen as sponsoring a governorship candidate. So he agreed. He is gone to run for governorship. We have taken over the management of his company. When he finishes running, he can come back to the company, but he can’t do it for less than two years.”

The clarifications made by Chike-Obi obviously became necessary based on various insinuations that Ubah opted for politics because the business of Capital Oil failed and was seized by AMCON. A legal luminary, Barr. Uchechi Oleka, pointed out that AMCON cannot seize Capital Oil and Gas Industries Ltd because it does not have the statutory powers to do so. According to him, the AMCON Act in Section 6(1) (0), amongst other things, says: “The Corporation shall have powers to give security for any debt, obligation or liability of any company…”

Chike-Obi’s explanation is timely because it sets the record straight on the misinformation that Capital Oil and Gas Industries Ltd is a failed business and that the takeover of any business by AMCON is something extra-ordinary. While it is obvious that the problem of Capital Oil and Gas Industries Ltd began with the non-implementation of a fully deregulated oil regime, the AMCON boss said that without the setting up of AMCON, most of the banks, most of the manufacturing companies, and all the airlines would have folded up.

He cited the case of an airline that is owing AMCON N70 billion but the aircrafts they have are worth about N75 billion. “We could take the aircrafts tomorrow; sell them in order to get our money back. But what will that do to Nigeria? The airline in question does about 65 percent of the domestic air travel,” Mr. Chike-Obi stated.

– VANGUARD

 

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Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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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.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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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.

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ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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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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