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Nigerians Run Riot on Twitter As FG Imposes VAT On AGO

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Many Nigerians have taken to Twitter to express disgust with the Nigerian Government now on the verge of imposing consumption tax, also known as Value Added Tax on Automotive Gas Oil (AGO) commonly known as diesel.

 

Biztellers gathered that longsuffering Nigerians are worried that the Federal Government could contemplate another tax imposition, given the level of hardship occasioned by the deregulation of the Premium Motor Spirit (PMS), also known as petrol.

 

Recall that the announcement of the end of fuel subsidy made in the inauguration address of President Bola Tinubu on May 29, had seen the price rise to between N488 – N600 per litre, up from N180 – N200 where it was.

 

A Twitter user, simply identified as Niger Delta could not hide his displeasure with the possibility of imposition of VAT on diesel and incessant increases since the President Tinubu administration took over from President Muhammadu Buhari on May 29.

 

Delta on his verified Twitter handle, @Franeb decried the situation and wished for mass action to defend the public interest.

 

He tweeted, “For every time he increases something and there’s no pushback he’d add again and expect you to keep quiet.

 

“It’s actually time for us to come out and protest and demand that the Judiciary do the right thing and remove this bast**d.

 

“I can’t pay 7.5% VAT on PMS.”
For another Twitter user, responding to Delta, Floydtoshi Nakamoto @Floyd0281, the situation the consumption tax would reduce purchasing power and the public can only expect more of such.

 

Nakamoto tweeted, “Tinubu made it clear that he would reduce their purchasing power and widen the tax net. This is just the beginning.”

 

As at the time of filing this report, the subject was the top trending topic on Twitter, with over 7000 tweets, despite the Nigerian senior male national team, the Super Eagles picking the ticket to the 2023 African Nations Cup (AFCON) on Sunday.

 

Recall that diesel was deregulated by the President Olusegun Obasanjo administration and sells at between N750 – N850 per litre across Nigeria.

 

Biztellers reports that the implication is that consumers would be paying at least 7.5% more on diesel, with current rate expected to move up by between N56.25 – N63.75, which would push the price to the range of N806.25 – N913.75 per litre.

 

The implication would include more hardship, characterised by inflation because diesel is what the real sector rely on to power generating sets, in the absence of public power supply.

 

Efforts to get the government’s angle to the story proved abortive as the phone of Chief Corporate Communications Officer, NNPC Limited, Garba Deen Muhammad was switched-off.

 

Another member of his team contacted simply said, “let me confirm. Let me confirm,” and quickly switched off his phone.

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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