Oil
Fuel scarcity looms over delayed subsidy payments
LAGOS-The reluctance of some oil marketers to import petrol owing to alleged non-payment of subsidy arrears and the subsequent reduction in loading activities at the Apapa depots are currently putting serious pressure on product supply across the country.
There are fears that scarcity of petrol is imminent if the situation is not addressed.
Some filling stations, which in recent times were always open to dispense petrol, had challenges meeting customers’ demand. This development became evident on Sunday.
The Chairman, Nigeria Union of Petroleum and Natural Gas Workers, Lagos Zone, Alhaji Tokunbo Korodo, told our correspondent on the telephone on Tuesday that the number of trucks loading fuel per day had reduced.
He also said loading of fuel at the Coconut area of Apapa, Lagos had been disrupted following the road construction work along the axis.
“Any marketer that has product along that corridor will not be able to load,” Korodo said.
Commenting on the state of the current state of the depots, he said, “Most depots are fast drying up. That is why there is a slight unofficial increase in the price of the product that is currently being sold at the Apapa depots. From N86 per litre, we now see some marketers selling for N90 to N91 (without trucks).
He said despite claims that the fourth quarter import allocation and its supplementary had been approved by the government, the non-payment of subsidies to marketers could make a nonsense of the move as importers would not be willing to do further importation.
“Marketers need money to bring in this product. They put down a lot of money to import the product, and may not be able to do additional importation if they are not paid as and when due.”
When our correspondent visited some depots at Apapa on Tuesday, many tankers were seen idle; only few were lifting products.
Depots where activities were spotted included Aiteo, Nipco and Conoil. The idle tankers also worsened the traffic situation in the area making it difficult for car owners and other commuters to move freely.
The spokesperson for an oil marketing company in Apapa told our correspondent in confidence that the ex-depot price per litre had risen by over N1 following the pressure.
When our correspondent spoke with the Petroleum Products Pricing Regulatory Agency’s spokesperson, Mr. Lanre Oladele, on the telephone, he said there were enough products in the country to last for another 50 days.
He confirmed that the fourth quarter import allocation as well as its supplementary allocation had been approved by the government.
According to him, some construction works were being done along the Apapa axis, which could be causing some supply challenges. “This does not mean product is not available,” he stressed.
When our correspondent reached the Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Femi Olawore, he said the situation was being examined.
He declined to make further comment on subsidy payments or supply trends.
An independent oil marketer, who insisted he wanted to be anonymous, told our correspondent that some marketers were already complaining of non-payment of subsidy arrears.
He said the marketers were not willing to import because subsidy had not been paid on their past importation.
In October this year, the Federal Government through the PPPRA granted approval to oil marketing and trading companies to import 600,000 metric tonnes of petrol pending the approval of the fourth quarter fuel import allocations. This was part of the efforts to sustain regular supply of petrol in the country.
PUNCH-
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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