Oil
Fuel scarcity bites harder in Nigeria, despite NNPC assurances
Even as the face-off between the Federal government of Nigeria and oil marketers in the Country continues, transporters in the Federal Capital Territory, Abuja, and its environs continue to face a hard time on the fifth day running, many filling stations in the city refuse to open for business.
Joseph BAMIDELE
ABUJA – Even as the face-off between the Federal government of Nigeria and oil marketers in the Country continues, transporters in the Federal Capital Territory, Abuja, and its environs continue to face a hard time on the fifth day running, many filling stations in the city refuse to open for business.
This is inspite of assurances coming from the Nigerian National Petroleum Corporation, NNPC, that it has abundant stock of petroleum products to last another forty-five days.
L-R Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, Senior Special Adviser to the Minister, Ufo Eric-Atuanya, Group Managing Director of the Nigerian National Petroleum Corporation, Engr. Andrew Yakubu at Wednesday's press conference to announce recent gains in the nation's Gas-Power aspirations.
Ahead of the Eid el Fitri festivity and the envisaged heavy movement of people for the holidays, the Ministry of Petroleum Resources and the NNPC had tried to assure the public that it has stepped up fuel supply to the Federal Capital Territory and across the nation to meet up demands.
The government denounced the appearance of long fuel queues in the major cities of the country, noting that there was absolutely no reason for oil marketers to embark on strike over unpaid fuel imports.
It further warned Nigerians against panic buying, noting that it has abundant petroleum products to go round the country without any fear of shortage throughout the period of festivity.
Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, last Thursday called on the marketers to end their purported strike action and cooperate with the Federal government to ensure effective products distribution to all parts of the country especially during the festive season of Eid-el Kabir.
Alison-Madueke noted that the government was prepared to do everything in its power to ensure that Nigerians get products to Nigerians all over the country, even as she disclosed that the Nigerian National Petroleum Corporation, NNPC, and its subsidiary, the Petroleum Products Marketing Company (PPMC) has more than 40 days stock of petroleum products at its disposal.
She explained that the observed panic-induced fuel queues in Abuja have nothing to do with shortage in supply of petroleum products and that marketers and private depot owners are being adequately supplied with products.
“As at today, the PPMC has stepped up supply of products to Abuja and environs. This situation will be sustained from now through the period of the festivities. I can assure you there is no shortage of PMS or any other petroleum product now or in the foreseeable future as the PPMC has a 45-day fuel sufficiency in strategic reserve,” Alison-Madueke stated.
The Minister said NNPC was working in concert with other relevant agencies to ensure that petroleum products get to the end users at approved prices.
Oil marketers have said the reason for the strike was the Federal Government’s failure to pay them for fuel imports, a claim which has been described by government officials as not accurate.
A statement issued by Paul Nwabuikwu, the Senior Special Assistant to the Coordinating Minister for the Economy and Minister of Finance, Ngozi Okonjo-Iweala described the marketers claim as baseless and inaccurate.
He explained that marketers with legitimate claims have been fully paid adding that only ones yet to receive payments are those indicted by the Aig-Imoukhuede Presidential Committee which investigated fuel subsidy payments.
The statement noted that, “The claim by. The true position is that the Federal Government has been meeting its obligations to oil
marketers in respect of all legitimate claims.
“For instance, between April and May 2012, Batches D/12 and E/12 involving 14 oil marketers with a claim of N17 billion were fully settled through the issuance of Sovereign Debt Notes and other relevant documentation.
“In addition, since the directive by the Coordinating Minister to the DMO to continue payments of all verified claims, N25.6 billion worth of claims have been fully settled with the issuance of Sovereign Debt Notes. In all, between April and August this year, in respect of 2012 PMS claims, Sovereign Debt.”
He added that Notes amounting to N42.666 billion have been issued to 31 oil marketers.
“However, the claims by marketers recommended for further investigation by the Aig-Imoukhuede Presidential Committee have not been paid. Payments or sanctions to this category of marketers will be determined by the outcome of investigations.
The statement noted that, “Against this background, it is clear that the strike was instigated mainly by marketers who were indicted by the Aig-Imoukhuede Committee which investigated fuel subsidy payments.
“Their obvious intention is to blackmail the Federal Government in order to escape sanctions for the crimes they have committed. Nigerians should not be deceived by their antics.
“Such tactics will not succeed because the Federal Government is determined to ensure that persons and organisations which did the wrong things do not get away with wrong actions and wrong behaviour.”
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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