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Excess Crude Account now $3.18bn as FG, States, LGs share N675.6bn

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ABUJA – Indications emerged Thursday that the Excess Crude Account (ECA) has been depleted to only $3.18 billion.

After some initial delays, the Federation Account Allocation Committee (FAAC) last night finally shared a total distributable revenue amounting to N675.650 billion among the three tiers of government for November.

The FAAC meeting for the period under review ought to have been concluded by Wednesday but there had been tardiness in convening the members partly because revenue collections by various revenue generating agencies were yet to be collated.

Other sources alleged that there was little revenue to share.
Earlier yesterday, the state commissioners of finance threatened to boycott the meeting and return to their respective locations as the leadership failed to convene the meeting.

finance minister ngozi okonjo-iweala and petroleum minister diezaniBut they were restrained by the Minister of State for Finance, Alhaji Yerima Ngama, who promised that frantic efforts were being made to hold the meeting later yesterday.
But Ngama later told journalists that the FAAC meeting day had been brought forward in view of the Christmas season to enable states pay workers salaries on time.

He said the delays were caused by pressure from other official engagements such as the Federal Executive Council (FEC) meetings.

However, shortfalls in recent times had been augmented by almost consistent withdrawals from the ECA, created to provide succor in rainy days.

The Gross revenue for the period under review amounted to N597.752 billion which was higher than the N539.553 billion realised in the previous month.

Mineral revenue amounting to N490.765 billion was however, higher than the N465.057 budgeted for the month. However, non-mineral revenue of N106.987 was lower than the budgeted amount of N158.711 billion in the period under review.

The Net Statutory Allocation stood at N535.204 billion complemented by revenue from Value Added Tax (VAT) which totalled N91.730 billion, compared to N66.346 billion collected in October.

Briefing journalists last night after the monthly meeting of the committee in Abuja, Ngama said there was need for states to step up their internally generated revenue, noting that the current total tax collection was only seven per cent of Gross Domestic Product (GDP).

He said strategies were being mapped out by the committee to enhance non-oil revenue.
A breakdown of the sharing of the statutory revenue showed the federal government received N252.239 billion while the states shared N127.939billion. The local governments received N98.636 billion while the sum of N56.390 billion was distributed to oil and gas producing regions under the 13 per cent derivative principle.

For the VAT collections, the federal government received the sum of N13.209billion; states got N44.031 billion while the local governments shared N30.821 billion.
Other revenue shared was the N7.617 billion- refund from the Nigerian National Petroleum Corporation (NNPC) as well as N35.549 billion proposed for distribution under the Subsidy Re-investment Empowerment Programme (SURE-P).

– THIS DAY

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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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Oil

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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