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.”

Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy

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.

It is no longer news that Nigeria reached a major milestone with the launch of the Dangote Refinery, allowing the country to produce its own petrol instead of importing it.

Consequently, Nigerians expected fuel prices to drop, which would help lower the rising costs of goods caused by the high price of petrol, but that has not been the case.

Recall that the first batch of PMS from the Dangote Refinery hit the market on Sunday as promised by the federal government.

However the smiles on Nigerians faces quickly wore off and their hope on the refinery for a reduced fuel price after recent increment of pump price was dashed with the price sold to the Nigerian National Petroleum Company Limited (NNPC Ltd).

Many Nigerians who had anticipated a lesser price compared to the present market price of between N855 and N950 were jolted when the NNPC Ltd released a price template for the stock received from the refinery.

READ MORE: Cab Driver Threatens Legal Action After Adunni Ade Accuses Him of Package Theft

By implication, the price of Dangote PMS is over N100 costlier than the existing market price from NNPC retail stations and other major stations which has caused more fumes and complains by Nigerians.

Shedding light over the issues surrounding petrol price, an energy policy analyst, Yemi Adeoye while speaking on Friday at TVC Business News explained why PMS cannot be sold at lesser price by Dangote.

Adeoye explained that the NNPC is not the regulator of PMS if not an official announcement should have been made instead of Dangote’s instead NNPC is operating as a joint venture with Dangote like it is with every other international oil operating companies in Nigeria, which has come down to the relationship between Dangote Refinery and the NNPC. NNPC supplies Dangute crude oil, while the latter come back with refined PMS.

He also noted that the average price for gas everywhere in the world as well as U.S. is $3.33 in gallons, which amounts to N5,279 in Naira. He explained that a gallon is 4 liters and breaking it down per liter is N1,019.75, which Dangote would have been selling their PMS if allowed to function as a business entity. Therefore, the normal price should have been nothing less than N1,300 per liter without the regulation.

Explaining further, Adeoye said, “Nigeria produces crude oil but refining it requires several steps. First, crude oil must be extracted, which necessitates the use of an oil rig. The cheapest oil rig available costs around $100,000 to $150,000 per day. These factors, among others, contribute to the pricing of Premium Motor Spirit (PMS) because it is an international commodity.” while noting that Dangote would not have announced the price without the regulation of the NNPC.

Adeoye said the commitment of NNPC towards this is supplying crude oil to Dangote in naira instead of dollars which is fair.

“If Dangote should sell PMS as it should, it will be nothing less than N1300. The united state is the highest producer of crude oil with 32 refinaries and sells at N1,319 per liter talkless of Nigeria who owns just one refinary, he added.

Finally, Adeoye said PMS hike is a global phenomenal and it is affecting everything.