Oil
Jonathan issues $8Bn NIPP share certificates to states
ABUJA – President Goodluck Jonathan yesterday presented national integrated power project, NIPP, share certificates to representatives of the 36 state governments and the Federal Capital Territory, FCT, in Abuja as part of on-going efforts aimed at achieving a sustainable public power to boost economic productivity.
The president said the presentation of the NIPP share certificates was in fulfillment of an agreement reached between his administration and the 36 states over deductions from the Excess Crude Account for the financing of the NIPP and Ibom Power Plant Project.
Prior to the signing of the agreement, the state governors had demanded equitable shares corresponding to monetary values in the NIPP, Railway Modernization Deductions and Ibom Power Plant Project Deductions.
About $8.425 billion was deducted from the Excess Crude Account for the execution of the NIPP projects, while another $80 million dollars sourced from the Federation Account was spent on the Ibom Power Plant Project.
President Jonathan stated that the Share Certificates represent the investments of all the three tiers of governments – federal, states and local councils – in the NIPP programme.
“You all remember that it was during President Olusegun Obasanjo’s time that some monies were set aside from the excess crude and the Federal Government was directly funding the NIPP projects with that money.
“Then, the Chairman of the Revenue Mobilization and Fiscal Commission, Engr. Ahmad Tukur, took the Federal Government to court, not even the state governors, saying the President has no power to spend money belonging to the three tiers of government.
“Of course, that frustrated the programme until when we came on board; the NIPP was stalled until we will now have to say in that case let us negotiate with the governors and let it be properly done, that is an investment where every state, every local government has an investment based on their own amounts in the excess crude (account). So, those details were worked out,” the president stated at the elaborate ceremony attended by state functionaries.
On yet another contentions project, Sovereign Wealth Fund where President Jonathan has been having a running battle with state governors over propriety of investing funds when there were capital and infrastructural projects begging to be financed in the country; he noted that similar Share Certificates would soon be ready for distribution to the three tiers of governments.
Vice President Namadi Sambo reassured that the 10 ongoing thermal power projects under the NIPP across the country would be ready for inauguration by December 2013.
“Mr. President, let me restate the commitment of the Niger Delta Power Holding Company in ensuring the delivery of 10 power thermal power projects and all the transmission and distribution projects by the end of December this year.
“Significant progress had been made and we are confidence that you will deliver on your promise to Nigerians, especially on power. We are very proud of the progress made so far.”
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
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.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
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.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
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.