Oil
Amaechi, Dangote, NLC Supports passage of PIB
PORT HARCOURT – Support for the speedy passage of the Petroleum Industry Bill (PIB) came yesterday from President of the Dangote Group, Aliko Dangote; Rivers State Governor, Chibuike Amaechi and the Nigeria Labour Congress (NLC) leader, Abdulwaheed Ibrahim Omar.
Their position came at the Nigeria Union of Petroleum and Natural Gas Workers’ (NUPENG) third quadrennial delegates conference with the theme “Reforms in the Oil and Gas Industry: Catalyst for National Growth and Development – What Prospect for Attainment of a Decent Work Agenda,” which held in Port Harcourt yesterday.
Governor Amaechi warned that unless the bill is passed and Nigeria is able to add value to its over two million barrels of daily crude production, a gloomy future lied ahead in the sector.
Represented by his deputy, Mr. Tele Ikuru, Amaechi said that 20 years ago, Nigeria was the dominant producer of petroleum products in the West African sub-region.
He noted that with the discovery of crude oil in some African countries and the United States (U.S.) strategic plan to reduce oil import by 75 per cent in few years from now, the price of crude oil, which is the mainstay of Nigeria’s economy, would crash.
He warned that unless the National Assembly passes the PIB into law and the country starts the process of adding value to the over two million barrels of crude oil produced daily, the country will get to a point when it will be holding black gold that is almost worthless.
Therefore, he tasked NUPENG to lead the crusade for the passage of the bill even if it means embarking on industrial action, demonstrations and riotous agitation. According to him, the union will be justified because the bill has the capacity to attract investors and boost the economy.
Meanwhile, Dangote, who was chairman of the occasion, said the desired reforms in the petroleum sector would only be achieved if the Federal Government could muster the required political will to conclusively drive the process. He described the bill as a bold step that would address the issue of corruption and ensure transparency in the sector.
The businessman, who was represented by Mr. Joseph Makoju, said the PIB is key to the survival of the Nigerian economy because it has the potential to attract investments and boost local capacity in the oil and gas industry.
However, NLC President, Omar, regretted that dark forces in the polity, particularly in the Executive and Legislative arms of government, as well as multinational corporations have been frustrating the passage of the bill. He described these dark forces as existential threat to the country.
According to Omar, crude oil production in the country has dropped in recent times. Therefore, the Federal Government should take decisive measures to end the menace of oil theft and artisanal refining, instead of lamenting haplessly.
Also, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu, stressed that the passage of the PIB into law and the full implementation of government’s reforms would enhance Nigeria’s economy and drive growth.
For NUPENG President, Igwe Achese, some companies are leaving Nigeria to other African countries where oil has just been discovered in commercial quantity because of the delay in effecting holistic reforms in the country’s oil and gas sector.
– GUARDIAN
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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