Oil
PPPRA Paid N832 Billion As Subsidy to Oil Marketers in 2013
ABUJA – The Petroleum Products Pricing Regulatory Agency (PPPRA) yesterday stated that it paid about N832.06 billion in 2013 as subsidy claims to petroleum products marketers under the Petroleum Support Fund (PSF).
It said the 2013 total subsidy payment figure was slightly lower than its 2012 figure of N862.06 billion which it paid and that it had been able to as part of cost cutting measures, eliminate previous manipulation of bill of lading to continuously make such savings to the government.
The immediate past Executive Secretary of PPPRA, Mr. Reginald Stanley, who handed over the responsibility of managing the agency to its new Executive Secretary, Mr. Farouk Ahmed, also explained in his formal hand-over remarks in Abuja that within the 2013 subsidy expenditure framework, the agency was able to save for the government N326.57 billion, at the same time keeping the number of marketers pruned to import fuel into the country to about 48.
Stanley noted that the agency had under his watch undergone strategic reform exercises, adding that such reform measures which were aligned with the overall plan of the government for Nigeria’s oil and gas industry had resulted in the investment of about N70 billion within two years in the downstream petroleum sector.
“Today, the downstream has been completely sanitised. PPPRA processes and procedures are all aligned to global best practice. This has engendered confidence, transparency and accountability in line with President Goodluck Jonathan’s transformation agenda.
PPPRA under my watch was able to reduce the daily consumption from 60.25 million litres per day in 2011 to 39.79 million litres per day in 2012,” Stanley said.
He further stated: “Similarly, in 2013, the agency recorded 42.11 million litres per day which was 18.14 million litres per day less than what was recorded in 2011. What is so spectacular of the 2013 consumption is that it showed a modest increase of 5.5 per cent on 2012 figure, in an economy growing at 6.9 per cent per annum. Statistically, gasoline consumption tracks the GDP growth very closely.”
On subsidy payments, he said: “Equally arising from this reduction in volume of petrol is the huge savings to the subsidy payment of N409 billion in 2012 and N326.57 billion in 2013. PPPRA was able to reduce subsidy on PMS in 2012 to N862.06 billion while the figure in 2013 was about N832.06 billion.” “In the last 24 months, over N70 billion has been invested in the downstream. So many depots and jetties have been built through private initiates, thereby generating thousands of jobs in our economy.”
Let me use this medium to appeal to our esteemed National Assembly to graciously pass the Petroleum Industry Bill (PIB) so as to sustain a vibrant downstream sector of the Nigerian oil and gas industry.”
Farouk, in his remarks, however requested staff of the agency to commit to the ongoing reforms in the agency. He noted his distaste for unwholesome practices within the PPPRA, adding that staff who may find it difficult to cope with such reform processes would be given the opportunity to exit the system.
– THIS DAY
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.
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.
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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