Oil
BPE Confirms Privatization of four refineries in 2014
ABUJA – The Bureau of Public Enterprises (BPE) yesterday said that the bureau would privatise the four refineries in the country next year.
Mr. Chigbo Anichebe, the Bureau’s Head, Public Communications, told newsmen in Abuja that the refineries’ privatisation was part of the ongoing oil sector’s reforms.
Earlier last week, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, told Bloomberg TV Africa in London that the country would privatise its four government-owned refineries in the first quarter of next year.
That this is the second time the Federal Government is disclosing plans to privatise its refineries.
It will be recalled that President Olusegun Obasanjo approved the sale of the refineries during his administration but the late President Umaru Yar’Adua in 2007 reversed the sale of the refineries for lack of transparency in the transaction.
However, President Goodluck Jonathan in November 2012 recommended that the refineries should be sold due to inadequate finance and under-performance.
Anichebe, nonetheless, told journalists that the privatisation plans were currently at the preliminary stage, where the blueprint of the policy would be decided.
“We are working with the NNPC and Ministry of Petroleum Resources on the privatisation of the four refineries.
“We are just in the preliminary discussion with them and very soon, we will make public the work plan for the privatisation processes, including the engagement of advisers to advise us on the transaction.
“Once the work plan is fine-tuned, hopefully by the end of the year or early January next year, the work plan as well as the schedule will be unveiled to all stakeholders, including the media,’’ he said.
Anichebe said that the privatisation would be handled in line with the usual strategy of the bureau, which was to sell a certain percentage of shares and reserve a certain percentage for the workers, host communities and Nigerians at large.
He urged Nigerians not to be apprehensive about the refineries’ sale because only capable and visionary investors would be considered in the privatisation process.
“People should not be edgy about this transaction because we have done this over and over again. When we first started with the telecommunications sector, people were worried that we will give it to the wrong people.
“They were worried about the security implications and all that. I believe that whether these companies end up with local, home-based or foreign investors, what is important is the efficiency of whoever is handling it.
“The criteria should be that the buyers have the financial muscle and technical know-how to run these companies. We don’t bother about where they come from, as long as they are coming with clean money to invest in our economy.
“So, when we are doing our evaluation of investors for the transaction, that is what we will look at,’’ he said.
The BPE spokesman also said that in 2014, the bureau would also begin the privatisation of the housing sector, Abuja Security and Commodity Exchange Plc., as well as the country’s transportation sector.
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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