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ExxonMobil, banks boost indigenous contractors’ capacity with $8.6bn scheme

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ABUJA – Nigeria’s local content policy on Tuesday received a major boost with the launch of a financial scheme amounting to $8.6 billion by ExxonMobil Nigeria, aimed at increasing the capacity of indigenous contractors in the oil and gas industry.

The ExxonMobil Nigeria Contractor Finance Scheme, which is a partnership between the oil major and 12 leading Nigeria banks, seeks to support Nigeria’s national content aspirations by providing ExxonMobil contractors better funding options to fulfill contracts awarded to them.

The initiative, which was launched on Tuesday in Lagos, will enable contractors to avail themselves of the sum of $8.6 billion available under the scheme.

The banks involved in the scheme include First¬Bank, Stanbic IBTC, GTBank, Ecobank, Zenith, Access, Citibank, Standard Chartered, UBA, Union bank, FCMB and Fidelity.

ExxonMobil, banks boost indigenous contractors’ capacity with $8.6bn schemeMark Ward, chairman and managing director, ExxonMobil Upstream affiliates in Nigeria, speaking at the commissioning ceremony for the scheme, said, “Partnering with 12 leading Nigerian banks, it is our expectation that with the $8.6 billion available under the scheme, ExxonMobil contractors nationwide would be able to access better and quicker funding options to enable them execute their contracts speedily. The cooperation of the banks has proved invaluable to the successful rollout of this scheme.”

He said the scheme underscored one of the three key elements of ExxonMobil’s national content programme which seeks to develop local suppliers to form a competitive base.

“Since the scheme was introduced in November 2013 at least 24 contractors have been able to access funds under the scheme and we continue to encour¬age more contractors to sign up to the programme. They are ensured easier access to

competitive funding as well as reduced loan processing time which would enhance speedier completion of their contracts while building their capacity,” Ward said.

Ernest Nwapa, executive secretary, Nigerian Content Development Monitoring Board, who formally flagged off the programme, com¬mended ExxonMobil and the partners for the initiative.

He stressed the need for banks to deepen their financing of indigenous manufacturers in the industry and not just the contractors.

Olufemi Odumuboni, team leader, oil and gas products, FirstBank, told BusinessDay that the banks had been supporting manufacturers and fabricators in the oil and gas industry to enable them manufacture most of their equipment locally.

He said the newly launched scheme would help the national content initiative in the industry, adding that the partner banks had earmarked cer¬tain amount of money to commit to the scheme

– BUSINESS DAY

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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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