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NNPC sold $20.9bn crude, remitted only $7bn – Reps

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ABUJA – The House of Representatives on Thursday ordered another round of investigation into crude oil sales and remittances by the Nigerian National Petroleum Corporation.

The focus of the fresh investigation is on the “volume and value of crude oil sales and remittances” by the corporation from January 2013 to date.

The investigation, which will last four weeks, is to be conducted by an ad-hoc committee of the House.

The resolution of the House followed a motion moved by Mr. Haruna Manu, who raised the alarm that about $13.9bn crude oil revenue could not be accounted for by the NNPC.

nnpc truckManu, who quoted from statistics allegedly generated by the NNPC, told the House that the value for crude oil sales from January to August stood at $20.9bn.

He, however, said only $7bn was remitted to the Federation Account by the corporation.

Manu added that “this shows that $13.9bn is not accounted for and it raises questions about how it was spent.”

He claimed that from September to date, the corporation had not given an account of crude oil sales.

Contributing to the debate, the Chairman, House Committee on Public Affairs, Mr. Adeola Olamilekan, recalled that the issue of accounting for crude oil sales by the NNPC had been on for the last seven years without a solution.

He said, “One of the areas of concern is the NNPC’s Joint Venture operations.

“There are several billions of dollars that are unaccounted for.

“Some JV partners will come before the committee and give you information that the NNPC cannot contradict.”

“Now, when you confront NNPC with this information, they don’t address the issues at stake.

“Reports from the Auditor-General’s Office have many cases against the NNPC.

“When this investigation is being conducted, I urge the ad-hoc committee to liaise with the Public Accounts Committee.

“We have information we can give to the committee to assist the investigation.”

A second resolution the House passed on the oil sector sought to investigate the impact of the discovery of Shale Gas on Nigeria’s dwindling crude oil revenue.

The Acting Group General Manager, Group Public Affairs Division, NNPC, Ms. Tumini Green, could not be reached to comment on the allegations made in the report.

Calls made to her mobile telephone line did not go through, while text messages sent to the same number were not replied as of the time of going to press.

However, a source who spoke with our correspondent under the condition of anonymity, said even if $20.9bn crude oil had been sold, international oil companies in Joint Ventures with the NNPC also had their shares of the money.

– THE PUNCH

 

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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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