Oil
Nigeria loses $5.9bn to stolen oil, lacks knowledge of production quantity-NEITI
Yemie ADEOYE
ABUJA— NIGERIA has lots about $5.9 billion to stolen crude oil over the past years, just as the major oil producing country seems to lack adequate knowledge on it oil production quantity, a situation which poses grave danger to accountability according to the Nigeria Extractive Industry Transparency Initiative, NEITI.
The revelation came as the Senate sets up a nine-member ad-hoc committee to probe the 2013 audit report of the federal government agency.
Oil Tanker
The NEITI Executive Secretary,Waziri Adio, who disclosed this when he appeared before the Senate in plenary to explain brief it on the 2013 NEITI audit report, said the country was yet to know its oil and gas production capacity. The Senate decision to investigate the report came after Adio took over two hours to explain what he knew about it. Speaking, Adio, while regretting the level of mismanagement of resources in the oil and gas sector of the nation’s economy over the years, insisted that the country has no specific record of its quantity of oil produced over the years. He said the NEITI 2013 Industry audit reports showed that revenue in the oil and gas industry were not fully remitted to the Federation Account, adding that the danger posed to the economy due to the misappropriation of these funds were much.
Senate President, Bukola Saraki, who presided over the session, said the issues raised by the NEITI boss was grave and must be looked into. Following this, he set up the committee, cutting across nine different standing committees, as he remarked that in view of the enormity of the money involved, the general opinion was that an ad hoc committee be set up to probe the report.
He said the terms of reference of the committee, led by the Chairman, Senate Committee on Petroleum Resources ( Downstream ) Senator Jibrin Barau, would be to re-examine the financial processes and the fiscal audit report of NEITI.
The Senate President also said the committee would look into the financial loss and leakages to government in all its ramifications, the remedial measures and come up with sanctions where necessary. He noted that the committee would determine any relevant legislative action that would be required to block all forms of leakages.
The nine-member ad-hoc committee has as chairman, Senator Tayo Alasoadura, who is the chairman, Senate Committee on Petroleum Resources ( Upstream). Others are Senators Bassey Akpan, who is the Chairman, Senate Committee on Gas, Senator Andy Uba, Chairman, Public Accounts Committee, and Senator John Enoh, Chairman, Committee on Finance. The rest are Senators Chukwuka Utazi, Chairman of the Senate Committee on Anti-Corruption.Kabir Marafa, Chairman of the Senate Committee on Population and National Identity, Solomon Adeola and Bukar Mustapha Adio had alleged that some huge amount of monies, which were in three tranches, were either withheld, lost or underpaid for different reasons. He said: “The first is in the category of the unremitted funds, which amounted to $3.8 bn and N358m; the second category is the category of losses due to inefficient practices and theft totaling $5.9bn and N20bn,”he said.
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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