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Fuel Scarcity:Between Capital oil and other oil marketers

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By Kunle Kalejaye
LAGOS-The decision by Capital Oil and Gas Limited to release on the 24th May, 2015, 13 million litres of petroleum products came as a surprise to the rest oil marketers and depot owners who have refused to discharge products unless their outstanding N200 billion subsidy is paid by the Federal Government.
fuel scarcity 1The decision also came at a time when Nigeria’s economic and social activities was gradually coming to a halt as Banks, Radio stations, telecommunication companies and other small scale businesses operated skeletal activities due to fuel scarcity.
Heroic as the decision to release 400 trucks of petroleum products may sound, it did not go down well with oil marketers who are yet to collect their outstanding subsidy and cumulative interest.
Some oil marketers argued that Capital oil’s decision was hasty and unfounded especially as arragments has been concluded for them to meet with the Minister of Finance, Department of Petroleum Resources, DPR, Nigeria National Petroleum Corporation, NNPC, Central Bank of Nigeria, CBN and Chairman Senate Committee on Petroleum, Downstream on Monday, May 25, 2015.
The unpaid marketers believed that the outcome of the meeting with the above relevant stakeholders over their unpaid subsidy ‎should have been the determining factor on the next step to take. Capital oil’s decision therefore, sent a chill down the spine of these marketers.
While addressing newsmen on the company’s decision to save Nigeria’s collapsing economic from the hands of ‘economic saboteurs,’ Managing Director of Capital Oil and Gas Limited, Dr Ifeanyi Ubah said his company on the 16th May, 2015 received a Short Message Service, SMS ordering them to suspend loading of petroleum products in all depots. 
He explained that the reason for such directive was as a result of funds owed to Petroleum Tanker Drivers and National Association of Road Transport Owners, NARTO by oil marketers, adding that marketers were in turn owed by Federal Government.
‎The sad development according to Capital oil boss led to acute fuel shortage in the country resulting in severe hardship in the form of high prices of goods and services.
In his words “‎We are constrained at this point and have decided that two wrongs cannot make a right. We will not be part of this sabotage against our fatherland.
Therefore, from this minute, we shall take the risk of opening our facilities and commence swift loading…of 13 million litres of petroleum products.
“With this act, it is our belief that once again our citizens will begin to smile, return to normal family and work life. We call on other petroleum marketers to follow suit and save our Nation from this impending economic and social crisis.
“This is a period that requires patriotism and service to fatherland.
In order not to been as economic saboteurs, Depot and Petroleum Products Marketers Association DAPPMA rose to the defence by blaming PTD and NARTO for the fuel scarcity noting that their depot facilities was open for business regardless of the huge amount government is owning them.
DAPPMA’s  Executive Secretary, Olufemi Afewole at the end of Monday’s meeting Chaired by Senator Magnus  Abbe in Abuja said “we never embarked on any shut down of our depots/facilities.”
 ‎He explained that it was the PTD arm of NUPENG and NARTO who normally transport products from marketers depots, that embarked on the strike action following their publicised complaints of not being paid their legitimate outstanding transport claims by marketers who participate Petroleum Subsidy Fund scheme.
According to the DAPPMA scribe ‎”we have maintained that we would sell and load all petroleum products available to us even as delays in the payments of our reimbursement have continued to impede and adversely affect our operations. 
 
“The suspension in loading in the last few days has been due to the strike action embarked upon by PTD-NUPENG and NARTO. These two bodies had refused to load out / lift petroleum products for distribution from our depots. That is the true position”
 
DAPPMA’s reaction
Reacting to claims by Capital Oil boss that DAPPMA members companies embarked on a strike, Olufemi Adewole said it is unfounded and baseless.
“The allegation by Mr. Ifeanyi Uba of Capital Oil and Gas Industries OIL AND GAS INDUSTRIES that DAPPMA member companies embarked on a strike action is not only mischievous, but completely false and a figment of his imagination. 
 
“Capital Oil and Gas Industries Limited does not participate in the petroleum subsidy scheme having been disqualified from the ‘PSF scheme’ by the government regulatory agency hence they do not import PMS (petrol). 
 
“The company is not owed a kobo under the ‘PSF scheme as they cannot make any claim hence they do not feel the impact of non-payment of subsidy reimbursements; instead the company stores petroleum products for NNPC/PPMC under a ‘throughput arrangement’ as do a few other members of our Association,” Adewole said.

The DAPPMA scribe also explained that his members have sought dialogue as a means to settle with two union, (PTD and NARTO)‎ to end the hardship caused by fuel scarcity. 
Adewole, also gave an insight into the outcome of the meeting with relevant stakeholders  held on Monday in Abuja on the perilous feul scarcity.
He said  “at the Senate Petroleum Committee’s sitting held in Abuja today, Monday, 25th May, 2015 the areas of disagreement between depot owners / marketers and the Federal Ministry of Finance and all other stakeholders were resolved while PTD-NUPENG and NARTO have also pledged their commitment to resume loading of petroleum products from all depots that have stock.”

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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Business

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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Oil

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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