Oil
EU Finance Ministers Fail To Approve New Bank Secrecy Rules
BRUSSELS — European Union finance ministers failed to reach a deal Tuesday on new rules aimed at curtailing bank secrecy and tax evasion.
The ministers’ final formal meeting of the year came after Austria and Luxembourg imposed qualifications on their support for the new rules.
Tuesday’s failure casts doubt over whether a year-end deadline to adopt the rules can be met.
EU leaders pledged to adopt by December new rules that would broaden the sharing of information on taxpayers’ financial accounts, but Austria and Luxembourg only signed up on the proviso that the EU’s executive arm makes progress in negotiating similar tax accords with the non-EU jurisdictions of Switzerland, Liechtenstein, Monaco, Andorra and San Marino.
EU heads of government will now try and break the stalemate when they meet in Brussels at the end of next week.
At a debate in Brussels on Tuesday, Luxembourg’s new finance minister, Pierre Gramegna, said his country would continue to block the deal until the EU reaches agreements on information sharing with the five neighboring countries, which also have strict bank-secrecy laws.
“Although some encouraging developments have occurred, we have not yet reached the light at the end of the tunnel,” Mr. Gramegna said. He said he was also reluctant to sign off on the directive before a deal is reached among nations belonging to the Organization for Economic Cooperation and Development, a club of rich countries.
Algirdas Semeta, the EU’s tax commissioner, said progress had been made in talks with third countries, but admitted that “we have some way to go before we have signatures on dotted lines.”
Austria and Luxembourg—which have among the most secretive banking systems in the EU—have, for years, blocked agreement on a 2008 EU proposal to broaden tax data-sharing. The proposal would broaden the already existing disclosure of interest payments made to EU residents with foreign bank accounts. The revised rules would oblige member states to share information on interest payments made through a broader set of financial institutions, including trusts.
The new tax accords, which EU politicians have said could rake in billions of euros, are part of a number of anti-tax-evasion proposals being pushed by EU governments to raise tax revenues hit hard by the region’s economic and financial crisis.
They must be ratified by all of the EU’s 28 governments.
Luxembourg has warned that the deal will simply shift business to countries outside the EU unless those countries are pressured to adopt similar standards.
A spokesman for Austria’s finance ministry said Tuesday that the country can’t make a final decision on the proposal because it doesn’t yet have a government following national elections. But the spokesman reiterated that Vienna regards an agreement with the five non-EU tax havens as a precondition for any deal.
However, the finance minister of Lithuania—which currently holds the EU’s rotating presidency—said he would seek to end the dispute by asking EU leaders to discuss it at this month’s summit, following requests by France and Italy.
“It is becoming very difficult for us to explain what is going on,” Italian finance minister Fabrizio Saccomanni said. “We are wasting time for reasons only the tax-evaders can exploit.”
– WALL STREET JOURNAL
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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