Oil
NITEL, refineries, slated for privatization, says BPE
NEW YORK – More of Nigeria’s failed corporations, including the former national telecoms carrier, Nigerian Telecommunications Limited (NITEL), and refineries, have been scheduled for a fresh round of privatization, Nigeria’s Bureau of Public Enterprises, BPE, said on Monday.
The director general of the privatization agency, Benjamin Dikki, who spoke at “The Nigeria Investors’ Summit” in New York, United States of America, identified the telecommunications, transportation, housing, banking, tourism and petroleum as sectors where the next tranche of investment opportunities have already been identified.
Top on the list of key government institutions to be privatized, Mr Diki said, is NITEL, which would be sold to interested private investors along with its frequencies through a guided liquidation process.
Several previous attempts by government to privatize NITEL failed, as the bid exercises were often manipulated by their managers to satisfy vested interests.
In the transport sector, he said several investment opportunities would become available with the implementation of the provisions of the Railway Bill, National Inland Waterways Bill, Ports and Harbour Bill, and National Transport Commission Bill, the drafts of which were ready and would soon be sent to the National Assembly for consideration and passage into law.
He noted the ongoing reforms in the housing sector, which have reached advanced stages, adding that with over 18 million housing deficit in the country, more investment opportunities would open up, particularly as the Federal Government had made the development of that sector a priority in its development agenda.
Mr Dikki said the privatization agency was currently collaborating with the relevant parties to review the policies, legal and regulatory frameworks in the housing sector to make it attractive to interested private investors.
The BPE director told the prospective investors who attended the event that the next line of investment opportunities would come from the Abuja Commodities and Stock Exchange, where government has concluded plans to harness the warehouses and silos across the country and link them to the various trading platforms for Warehouse Receipt Trading system.
“Once we make prices and buyers predictable through the activities of the trading platforms, we would have a mega boom in the making in that sector,” he said.
Mr Dikki said the planned reform in the Development Finance Institutions, DFIs, would soon commence with the privatization of the Bank of Industry, BOI, and Bank of Agriculture, BOA, adding that the reforms in the tourism sector have already begun with the review of the policy, legal and regulatory frameworks to help attract private capital into the sector.
He urged investors interested in the oil and gas sector to be prepared to take advantage of the investment opportunities that would open up when the Petroleum Industry Bill (PIB), which is currently before the National Assembly, is passed. He said there would be several opportunities with the planned privatization of the refineries, and the concession of the network of oil and gas pipelines systems across the country.
On the recent privatization of the 18 Power Holding Company of Nigeria (PHCN) successor companies, he said the over $3billion, which will accrue to the Federal Government as proceeds from the various transactions, is biggest ever in global privatization transaction history.
“The Federal Government has been consistent in its policy to open up its economy and create the enabling environment for the private sector to thrive,” he noted.
– PREMIUM TIMES
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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