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Excess Crude Revenue Drops to U.S.$2.1 Billion, As Federal, State Governments Share N629.128 Billion in January

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ABUJA – The balance in the excess crude revenue account as at January 2014 dropped further to about $2.1 billion, as the federal, state and local governments shared N629.128 billion from statutory, Value Added Tax, VAT, and other revenue sources in January.

The Accountant General of the Federation, AGF, Jonas Otunla, said the amount shared was about N47.630 billion higher than the distributions of the preceding month.

The amount comprised of N503.685 billion for statutory distributions; N82.277 billion from VAT; N35.549 billion for the subsidy reinvestment and empowerment programme, SURE-P; and refund by the Nigerian National Petroleum Corporation, NNPC of about N7.617 billion.

Details of the monthly distributions on tier-by-tier basis showed that the Federal Government got N235.022 billion from statutory sources and N11.848 billion from VAT, while the 36 states got N119.206 billion from statutory distribution compared with N39.493 billion from VAT. The local governments shared N91.903 billion from statutory distributions and N27.645 billion from VAT.

The states and local governments also shared the N7.617 billion refunded by the NNPC exclusively, while SURE-P’s N35.549 billion distributions were shared among the three tiers of government.

The oil producing states also shared N52.309 billion being the 13 per cent derivation revenues from oil and gas earnings.

Mr. Otunla told reporters at the end of the Federation Accounts Allocation Committee, FAAC, meeting in Abuja that the gross revenue for the month, which totaled N540.870 billion, was higher than the figure earned in December 2013 by N60.920 billion.

The AGF said there was no augmentation for the month under review, as the Excess Crude Account, ECA, took a dive again.

He said that as part of efforts to expand the FAAC and bring in more public finance agencies into its membership, the Petroleum Products Pricing and Regulatory Agency, PPPRA, would from the next meeting be attending the committee’s meeting.

The Chairman of States Finance Commissioners Forum, Timothy Odaah, expressed confidence in the ongoing National Assembly’s public hearing on the alleged missing funds from the Federation Account.

He said states and local governments would be pleased to see that the findings would enhance transparency and accountability in public finance.

– PREMIUM TIMES

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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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