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FG reiterates commitment to boost domestic petroleum product supply

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By Kunle KALEJAYE
ABUJA-THE Federal Government has reiterated its commitment to reform the nation’s existing refineries and boost domestic petroleum product supply.
The commitment was made by the Group Managing Director of Nigeria National Petroleum Corporation, NNPC, Dr. Ibe Kachichwu at the National Association of Energy Correspondent, NAEC conference in Lagos.
Ibe KACHIKWU

Ibe KACHIKWU

Dr. Kachikwu who was represented by the Acting Managing Director of National Engineering and Technical Company, NETCO, Mrs Bola Ashafa‎ said all the refineries have currently been re-streamed but are yet to attain optimal capacity. 

 
Commenting on the removal of price control mechanisms in the downstream sector, Kachikwu said it is imperative to ensure full growth of the sub-sector by allowing private stakeholders to complement government efforts in developing the industry. 
 
“In the last decade, Nigeria has taken some important steps towards a more deregulated downstream fuel sector noting that deregulation will ensure fair market value and product availability as enshrined in the Petroleum Industry Bill. 
 
“As the helmsman in the NNPC, I can assure you that we will continue to maintain stability in the supply and distribution of petroleum products nationwide to avoid crises. 
 
“NNPC has enough stock of petrol to service the country for 25 days at a national consumption rate of about 40 million litres per day. Unfortunately, the stock is not immediately available across the twenty one depots in view of the challenges facing the distribution pipelines facilities,” Kachikwu said.
The NNPC boss also stated government readiness to develop the domestic gas market through various policy initiative and to massively increase the utilisation of gas in the domestic market for power generation and industrial development.
He added that International Oil Companies are currently being encourage to build gas-fired power plants ‎such as the JV Independent Power Plants located at Afam VI operated by Shell; Okpai Kwale operated by Eni; Qua Iboe by ExxonMobil; Agura by Chevron and Obite by Total which are expected to build additional capacity.
“Going forward, NNPC is also committed to the construction of the Abuja power plant of 1,350mw and the Kaduna power plant of 900mw in partnership with reputable international power producer,” Kachikwu said.

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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