Oil
Arguments as CBN confronts NNPC over missing $49.8
ABUJA – Attempt by the Federal Government to douse the tension generated by the claim by the Central Bank Governor, Sanusi Lamido Sanusi, that the sum of $49.8 billion had not been remitted by the Nigerian National Petroleum Corporation to the Federal purse ended in deadlock last night.
The meeting, which was summoned on the orders of the Presidency following a strong letter by Sanusi to President Goodluck Jonathan to probe the missing sum, started at about midday and did not end until about 8pm.
It was presided over by the Permanent Secretary of the Ministry of Petroleum Resources, Mr. Dandali Kifasi and attended by officials from the Central Bank of Nigeria, Ministries of Finance and Petroleum, Federal Inland Revenue Service and the NNPC and some presidential aides.
Vanguard learnt that the meeting was characterised by heated arguments between officials of the CBN on one hand and those of the NNPC and its subsidiaries, who are involved in oil production and sales for Nigeria.
CBN, it was learnt, had presented data, which it claimed emanated from the NNPC subsidiary and insisted that the missing amount had not been remitted to the Federation Account, a claim that infuriated NNPC officials present.
A source at the meeting hinted that the arguments were so fierce that the Permanent Secretary of the Petroleum Ministry, who presided, had to storm out of the venue in anger but was later persuaded to return.
In a deft move to calm down frayed nerves, the meeting went on break for about an hour and reconvened later in the day but the contentious issue of the actual amount remitted by the NNPC to the Federation Account since the beginning of the year, could not be agreed upon between its officials and those of CBN.
Unable to resolve their differences over what has been generated and remitted, the meeting was called off at about 8p and a decision taken to reconvene today with a view to finding out where the missing link in the lingering faceoff must have occurred.
The NNPC insists that the amount claimed by the CBN is not missing; adding that the economy would have collapsed if the said amount was withheld or withdrawn from the system.
NNPC’s Executive Director in charge of Exploration and Production, Eng. Abiye Membere, who addressed the media on Saturday on the issue, insisted that the corporation had paid in full to the CBN the proceeds from oil within the period under review.
– VANGUARD
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
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.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
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.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
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.