Oil
Sanusi lied about Missing $49.8 billion – Senate
ABUJA — The Senate, yesterday, said that the suspended Governor of the Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi lied by saying that the Nigerian National Petroleum Corporation, NNPC, misapplied $49.8 billion accruing from crude oil sales. It said that only $20 billion or N3.26 trillion was missing.
It said that it could not see how Sanusi arrived at his allegations that the money was missing.
Chairman, Senate Committee on Finance, Senator Ahmed Makarfi, PDP, Kaduna North, who made this known yesterday, said that contrary to Sanusi’s allegations, there was nothing like any unremitted $49. 8 billion.
This was contained in the report submitted by the committee at Senate plenary, yesterday.
Makarfi said that his committee made rigorous investigations into the allegation, but could not see how Sanusi arrived at the missing money.
“The committee could not see how the figure of $49.8billion was arrived at by the (former) CBN Governor in the first instance,” the Committee added.
It noted that the total crude oil liftings between January 2012 and July 2013 was $67 billion and not $65 billion as the suspended CBN Governor alleged.
“There was nothing like unremitted $49.8 billion. All the agencies-CBN, NNPC, Ministry of Finance and the Ministry of Petroleum Resources had agreed after reconciliation meetings that $47 billion out of the $67 billion had been credited to the Federation Account. The amount to be accounted for, therefore was $20 billion,” the committee observed.
Sanusi had claimed in his letter to President Goodluck Jonathan that $49.8 billion from crude oil revenue was missing, prompting nationwide outrage.
However, the Makarfi Committee’s report cleared the NNPC and the Ministry of Petroleum of any shady deals and directed the NNPC and the Ministry of Finance as well as other relevant agencies to reconcile another $300 million.
The committee observed that $ 5.254 billion PMS subsidy claims certified by the Petroleum Products Pricing Regulatory Agency, PPPRA, as part of the $20 billion to be accounted for was adequately covered by the Appropriation Acts of 2012 and 2013.
The committee’s report further noted that the “CBN Governor at the first hearing had put forward the figure of $12 billion as monies to be reconciled and changed his position to $20 billion at subsequent hearing. In the conclusion of his written submission, that it could be $20 billion, $12 billion, $10.8 billion or anything in between, the CBN Governor orally or in writing never outrightly submitted that monies were missing but that monies were not remitted to the Federation Account by the NNPC.
The report further recommended the immediate passage of the Petroleum Industry Bill (PIB) as the Minister of Petroleum, Mrs. Diezani Allison-Madueke continues to sanitise the industry.
It equally recommended the abolition of subsidy regime, saying, “there is the need for the subsidy regime to be totally discontinued with.
“All stakeholders should be consulted and carried along as much as possible before abolishing the subsidy,” it added.
– 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.