Oil
Nigeria’s oil sector output decreases in Q1 – NBS
ABUJA – The economy, measured by the Real Gross Domestic Product (GDP), grew by 6.56 per cent in the first quarter of 2013 as against 6.34 per cent in the corresponding quarter of 2012.
Dr Yemi Kale, the Statistician-General of the Federation, said in a statement in Abuja on Thursday that the Consumer Price Index (CPI) rose by 9.1 per cent in April as against 8.6 per cent recorded in March 2013.
“This is the fourth consecutive month of single digit year-on-year rates being recorded, and the first time this has occurred since the movement to the new CPI base period,’’ Kale said.
The statement said that relative to March, the rise in the headline index could be primarily attributed to higher price levels of food products due to the effect of declining inventories.
“At this time in the planting season, what are sold are foods which were harvested late last year and the limited supplies of these with a relatively stable demand, pushes prices higher.
“As a result of substantially higher price levels last year, the implications are that the year-on-year changes for this year are likely to be lower,’’ it said.
The statement said the National Bureau of statistics observed generally slower rises in monthly prices since 2013.
“This may be connected to more prudent fiscal measures together with aggressive stance of monetary policy.’’
It said that the largest contributors to the increase in the food index in April were bread and cereals, potatoes, yams and other tubers and vegetables.
The statement said that the average annual rate of rise of the food index for the 12-month period ending April 2013 was 10.8 per cent when compared with the same period in 2012.
It said the rate was lower by 0.2 percentage points from the 11.0 per cent recorded in March.
“Within the two broad sectors of the economy, the non-oil sector growth was driven by growth in activities such as building and construction, and hotels and restaurants.
“Others are real estate services, manufacturing, finance and insurance and solid minerals, among others.’’
The statement said that the output in the oil sector, however, decreased in the first quarter of the year relative to the corresponding quarter of 2012.
“The oil sector recorded an average daily production of 2.29 million barrels per day in the first quarter of 2013 based on data obtained from the NNPC as against 2.35 million barrels per day in the corresponding quarter in 2012.
“These figures, with their associated gas components, resulted in a growth rate, in real term of -0.54 per cent in oil GDP in the first quarter of 2013 compared with the –2.32 per cent for the corresponding period in 2012.’’
The bureau said the oil sector witnessed some disruptions as a result of pipeline vandalism and bunkering with some oil companies, such as Eni (Agip), declaring force majeure during the quarter.
It added that the sector benefited immensely from the relative stability in international crude oil market price and the exchange rate of naira against the dollar.
The bureau said the sector contributed about 14.75 per cent to real GDP in the first quarter, compared to the contribution in the first quarter of 2012 which was 15.80 per cent, and 12.59 per cent in the fourth quarter of 2012.
It said that the non-oil sector continued to be a major driver of the economy in the first quarter of 2013 when compared with the corresponding quarter in 2012.
The bureau said the sector recorded 7.89 per cent growth in real terms in the first quarter of 2013 compared with 8.14 per cent in the corresponding period of 2012.
“The growth in the non-oil sector however declined in the first quarter of 2013 when compared with the corresponding quarter of 2012.
“On the other hand, manufacturing, hotels and restaurants, as well as building and construction were bright spots for the economy during the reference period,’’ it said. (NAN)
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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