Oil
Alleged Missing $10.8 billion Used For Subsidy, Pipeline Repairs – NNPC
ABUJA – The Nigerian National Petroleum Corporation (NNPC) has explained that the alleged missing $10.8 billion dollars, as claimed by the Central Bank of Nigeria (CBN), was used for pipelines repairs, payment of subsidy claims and maintenance of the nation’s reserve.
The Acting Group General Manager, Public Affairs, NNPC, Mr Umar Ibrahim, told Channels Television on Saturday that the reconciliation of the figure would soon be over.
While the NNPC was trying to resolve the $10.8 billion deficit, the CBN Governor, Lamido Sanusi, on Tuesday, gave the Nigerian Senate a new figure. Sanusi told the Senate that the NNPC had not remitted $20 billion to the Federation Account.
Mr Ibrahim pointed out that the CBN had kept changing the figures, insisting that it was affecting the reconciliation process.
“As at December 18, when the press conference was held, the figure was $10.8 billion and I believe that by next week, when we go to the National Assembly, we will come to the end of it. It is a continuous exercise,” he said, referring to the reconciliation process.
According to him, the law establishing the NNPC mandated the corporation to deduct expenditure from proceeds before forwarding the money to the Federation Account.
Subsidy On Kerosene.
Another issue facing the NNPC is the issue of subsidy on Kerosene.
There have been speculations that the subsidy had been suspended by the government but Mr Ibrahim said that the corporation had not received any directive advising it to suspend the subsidy on the product.
“We do not work on hearsay. We have not received a directive or instruction saying that we should stop selling Kerosene at 40.9 Naira per litre. If there was an instruction, it did not come down to us.
“We have been making claims for kerosene subsidies as far back as 2009. To say that there was no claim is wrong. As far as we are concerned, there is subsidy on Kerosene. If you go to any NNPC Mega Station you will not buy kerosene more than 50 Naira,” he explained.
Mr Ibrahim also called on Nigerians to present the corporation with proof that the subsidy had been suspended.
Many households have lamented the hike in the price of the product, a development retailers have attributed to the removal of the subsidy on Kerosene.
But the NNPC’s spokesman insisted that the corporation was not mandated to monitor the prices of the product, advising Nigerians to report retailers selling above the approved 50 Naira per litre to the appropriate body.
He further said that the NNPC was not interested in the subsidy regime, as it was a policy of the government.
“We are not interested in buying Kerosene at international prices and selling at regulated prices. The subsidy regime is a policy of the government and the day they do not want it, we will go by the way of the government.
“We have been put under tremendous pressure over the issue and we are not interested in it. We want to focus on our core business and not on importing at international price and selling at regulated prices,” he stressed.
Mr Ibrahim absolved the NNPC of any secrecy in its account books, saying that “the corporation’s account books are open for audit”.
“We do not run our business on the pages of the newspapers. We do have auditors, internal and external auditors that come and audit our books. The Auditor General’s office and the Accountant General’s office have access to our books. The National Assembly has access to our books and this people are representing the Nigerian public. So our books have been open to those who should have access to it,” he said.
The corporation had called on the CBN governor to provide facts to back his claim that $20 billion was not remitted to the Federation Account.
– CHANNELS TV
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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