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Energy Reforms: Nigeria to over-take SA in 2014

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By Joseph BAMIDELE
LAGOS--Nigeria’s Gross Domestic Product, GDP is expected to over-take South Africa in 2014 when Nigeria Energy sector is fully reformed, an official of the Nigerian National Petroleum Corporation, NNPC has said.
Nigeria currently earns $450 billion as her Gross Domestic Product, GDP, and it expected to increase between 2013 and 2014 when the country’s energy sector is fully deregulated.
The Executive Director (Corporate Planning and Strategy) of NNPC, Dr. Timothy Okon said the energy sector is the biggest in Africa and all industry stake holders should play a pivotal role to ensure that the sector is fully reformed.
According to him, reforming the sector will help improve the economy by means of creating jobs.
“Nigeria economic is 5 per cen

President Jonathan

t the size of the US economic which is $9 trillion of their GDP. We have to raise our GDP higher in other to meet that of the United State. In order to double the economy in the next two years, reform is very important to deliver that.

“The energy sector is also very critical to double the Gross Domestic Product, GDP of the country.
“Nigeria is blessed with lots of natural resources, these resources can easily translate into economic development only when the sector is properly reform.  When the sector has been reform, it is open up for full participation,” he said.
Explain a very critical aspect of reforming the industry, Dr. Okon stated that petroleum pipelines remains the back bone of the refineries that needs to be preserved.
He said “The pipeline network in the country is well design to work side by side with the three refineries in the country.
“If you want to refine crude oil in Kaduna refineries, the pipeline system is already in place to transport crude oil from Warri to Kaduna refinery.
“But our pipelines system needs to be properly maintained because they are now subjected to constant vandalism. in areas that troublesome, these pipes need to buried very deep so that they are not exposed to vandalism. These are some of the issues that reforming the sector will address,” he said.
 Highlighting the key focus of reforming the energy sector, Dr. Okon said there must be availability of petroleum products. This can be done only when the pipelines system is working effectively.
He also added that the refineries must be brought back to their optimal performance, noting that “with a regulated market, you will have the refineries working.”
Just as the Nigerian Communication Commission, NCC in the telecom sector, and the Nigeria Electricity Regulatory Commission, NERC in the power sector, Dr. Okon said deregulation in the petroleum sector goes with a strong regulation because it helps to advance the space of consumer protection.
If more refineries will bring down the cost of refined products in the country, the NNPC Executive Director (Corporate Planning and Strategy) said not necessary.
“if we have more refineries in the country, that does not automatically translate into reduced price of refined product. But deregulation of the downstream sector will encourage more investment.”
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Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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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.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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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.

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ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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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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