Oil
NNPC admits some oil revenues still unaccounted for
ABUJA – Top Nigerian officials who met to verify claims that N8 trillion oil revenues had been missing over the last 18 months narrowed their differences to about N1.9 trillion missing.
Central Bank of Nigeria (CBN) Sanusi Lamido Sanusi raised the issue of the missing trillions in a letter he wrote to President Goodluck Jonathan in September.
The letter was published recently and the President asked the Minister of Finance Ngozi Okwonjo-Iweala, minister of Petroleum Resources Diezani Allison Madueke, the CBN Governor, GMD of NNPC Andrew Yakubu, DPR director George Osahon and top officials from the Budget Office to meet and verify the claim.
After meeting for several days, Mrs. Okwonjo-Iweala said at a news conference yesterday that the NNPC had mostly accounted for the unremitted sum of $49 billion as claimed by CBN.
She said what was recorded over the period January 2012 to July 2013 is a shortfall of $ 10.8 (about N1.6 trillion) from domestic crude oil receipts due to the Federation Account, Iweala said.
She explained that during the meeting NNPC noted that the actual proceeds from crude oil exports in the period were $67.12bn which was higher by $1.79 billion than the $65.3billion CBN reported.
“A ccording to NNPC’s records, the total revenues of $67.12billion was comprised of revenues which directly accrued to NNPC (for the Federation Account) of $14billion, and additional revenues lifted by NNPC on behalf of other parties.”
These other parties, NNPC claimed accounted for the income that was calculated as the total generated revenue which the CBN hoped would have been remitted to the Federation Account. The parties are FIRS ($15billion), for DPR ($2billion), for NPDC ($6billion) and for other third party financing ($2billion).
In addition, the total amount of crude lifted by NNPC amounted to $28billion which was not reflected in the CBN’s foreign accounts but was said to have been paid directly in Naira into the Federation Account.
Thus, with the inclusion of the various exports conducted on behalf of the non-NNPC parties, the total of $67 billion was mostly accounted for, to address the issues raised by the CBN, Iweala concluded.
Meanwhile, the NNPC acknowledged a shortfall in oil revenue remitted to the Federation Account during the period under review but disputed the figure of about $10.8 billion agreed by other stakeholders as missing revenue.
Speaking on the shortfall, Alison-Madueke added that crude oil theft has been a major cause of revenue shortfall in recent times.
The CBN Governor, Sanusi Lamido Sanusi, speaking on the issue publicly for the first time, said the government bank has the responsibility to be transparent in fiscal issues and that the letter written on the difference in crude oil proceeds was informed by such.
“We were concerned at what we saw as a gap between what we had in our records as the values of crude shipped by NNPC and the amount repatriated as equity to the federation account.
– DAILY TRUST
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.