Oil
NNPC pledges closer ties with Governors Forum to grow national economy
Modupe ASUDO
ABUJA-THE Nigerian National Petroleum Corporation (NNPC) has expressed its readiness to continuously work with the Nigerian Governors Forum (NGF) in order to grow crude oil production, renewable energy and generate more revenue for the country.
A release today in Abuja by the corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu stated that the Group Managing Director of the corporation, Mallam Mele Kolo Kyari, made this commitment when the Chairman of the NGF, Dr. Kayode Fayemi, led the Governor of Sokoto State and the Forum’s Deputy Chairman, Rt. Hon. Aminu Waziri Tambuwal, on a business visit to the NNPC Towers in Abuja.
NNPC GMD, Engr. Mele Kyari
Mallam Kyari said the NNPC was ready to work for Nigerians through the efficient exploration and exploitation of the nation’s abundant hydrocarbon resources, noting that the NGF was an important and critical stakeholder to the successes of the corporation’s operations.
“It is our job to deliver value for the teeming population of this country. The NNPC has no excuse but to deliver on its mandate by touching the lives of Nigerians in many positive ways. We will ensure steady and unimpeded supply and distribution of petroleum products and we will also ensure that the NNPC remittances to the Federation Account Allocation Committee (FAAC) are enhanced,” Mallam Kyari assured.
He said NNPC’s operations would continue to drive the levers of production that would ensure steady generation of royalties and petroleum profit taxes from all its partners in the oil and gas value chain.
The NNPC’s helmsman stated that the corporation would work with the National Assembly and the NGF to ensure that appropriate legislations were put in place to guarantee a fiscal environment that would promote inflow of investment into the nation’s Petroleum Sector.
On transparency, Mallam Kyari assured that the financials and operations of the corporation would continue to be communicated to the NGF and that the NNPC would continue to engage the Forum to make the operations of the Oil and Gas Industry smooth in the country.
He said the NNPC would continue to work with the governors to enact appropriate legislations to mitigate incidences of pipeline vandalism, noting that adequate security of the corporation’s pipelines would go a long way to improving the nation’s revenue portfolio.
“We would promote partnership with the states in the area of renewable energy in line with our plan to transform into a competitive global integrated energy company,” Mallam Kyari said.
He added that the NNPC would continue to work with the Department of Petroleum Resources (DPR), the Federal Inland Revenue Services (FIRs) and all other revenue generating agencies of government to ensure fiscal feasibility for the states in consonance with the Medium Term Expenditure Framework (MTEF) enable good planning.
Earlier, Dr. Fayemi congratulated Mallam Kyari on his well-deserved appointment describing him as a true emblem of transparency following his active participation and belief in the principles of the Extractive Industries Transparency Initiative (EITI).
The Chairman of the NGF assured of the support of the 36 state governors, noting that they would continue to partner the NNPC and its leadership to deliver value to the Nigerian people.
“As governors at the sub-national level, we would continue to safeguard the NNPC’s pipelines as they run through our various states. We would partner and support the security agencies to mitigate the frequent infractions on the facilities of the corporation across the states,” Dr. Fayemi assured.
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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