Oil
NNPC insists $30bn oil revenue remitted to Federation Account
ABUJA – Following the controversy that trailed the controversial $49.8 billion missing from federation account, the Nigerian National Petroleum Corporation, NNPC has disclosed that the disputed balance of $10.8 billion from the original amount, which has not been paid into the Federation Account, is not missing but formed part of its operational costs within the period, January 2012 to July 2013, which was referred to by the Central Bank of Nigeria, CBN Governor, Sanusi Lamido Sanusi, in his letter to President Goodluck Jonathan on unremitted oil revenues.
In a statement issued by the Corporation’s General Manager, Media Relations, Dr. Omar Farouk Ibrahim, it insisted that issues surrounding the allegation of the unremitted $49.8 billion against it had since been explained, but it appears that the initial dust raised by Sanusi’s letter was yet to settle.
It explained that repairs on Nigeria’s 5,000 kilometres of petroleum pipeline network, which is constantly subjected to vandalism, unpaid subsidies on kerosene and petrol, as well as its maintenance of national strategic reserves for petroleum products, were all parts of its operational costs accounted for by the $10.8 billion.
According to Ibrahim, the Corporation considered it necessary to make further clarifications on the burning issue, considering the extant media reports on the same issue, which it considered as misleading.
“We are therefore constrained to respond and clarify the issues once again to help those who do not yet understand the clarification made earlier by the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, Governor of the Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi, and Group Managing Director of the NNPC, Mr. Andrew Yakubu, at a joint press conference which was widely reported in the media.
“For the avoidance of doubt, there was no where it was stated or admitted by any of the parties in the course of the press conference or anywhere else that the sum of $12 billion or $10.8 billion out of he alleged unremitted $49.8 billion was missing.
“The truth of the matter is that as at the time of the press conference, $30 billion of the alleged unremitted oil revenue had been reconciled by all the parties involved. Dr. Okonjo-Iweala did explain that the reconciliation was an ongoing process and that the balance of $10.8 billion was still being reconciled,” said the Corporation’s spokesperson.
”At no time did anybody, be it the Coordinating Minister for the Economy or the CBN governor say that the outstanding $10.8 billion was missing. It is simply curious how some sections of the media are not prepared to see the difference between the two positions – reconciliation in progress versus money missing. These two positions are simply not the same thing no matter the angle from which anyone chooses to see them.”
Giving a breakdown of NNPC’s operational expenses, which make up the $10.8 billion, Ibrahim said, having made that point, it is also pertinent to further clarify that NNPC as a national oil company is saddled with certain onerous responsibilities that other oil companies are free from.
”For instance, as the supplier of last resort, NNPC has the responsibility of ensuring that there is adequate supply of petroleum products whether the market is favourable or not.
“The yet to be reconciled $10.8 billion can be located in the expenses on some of the responsibilities, which the Corporation carries out on behalf of the federal government with respect to the domestic crude oil utilisation.
“One of such issues is the unpaid subsidy on kerosene and premium motor spirit (petrol). It would be recalled that Dr. Okonjo-Iweala was earlier in 2013 reported to have stated that she had not paid any subsidy on kerosene since she assumed office.
“The truth of the matter is that since 2007 when the late President Umaru Yar’Adua reviewed the prices of petroleum products, following the general strike in protest against the price hike by his predecessor, the issue of subsidy payment on kerosene was left hanging and NNPC was mandated to continue to sell the product at a subsidised rate of N50 per litre.
– VANGUARD
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.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
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.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
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.
New Terrorist Group Emerges In Northwest Nigeria – DHQ
Osun Declares Three-Day Mourning For COAS, Lagbaja
Shallipopi Splits From Record Label, Dapper Music
Lagos Gov’t Launches Bid For 500MW Gas Power Hubs Amid Energy Crisis
BP, Trafigura, Vitol Lead Global Offtake Of Dangote’s Refined Products
Marketers Test Legality Of Banning Importation Of Refined Petroleum Products
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
