Oil
Oando to build N16bn IPPs for Lagos, Abuja Airports
LAGOS – An indigenous Nigerian oil company, Oando Plc, has concluded discussion with the federal government to provide long-term, uninterrupted power supply to the Murtala Muhammed International Airport, MMIA, Lagos and
Nnamdi Azikiwe International Airport, NAIA, Abuja through the establishment of an Independent Power Supply project, IPP, at the cost of $100 million (N16 billion).
It was gathered that discussions over the project had reached advanced stage and that each airport would cost the company $50 million, while the federal government, through the Ministry of Aviation, is already looking at the terms offered by the company as the project, when completed, would last for about 20 years.
An inside source from the aviation ministry said: “This project is going to provide uninterrupted power supply at these airports and environs. We are yet to sign the agreement but we are in advanced discussion with them and after the last meeting, we are going to have with the government, we will come to a conclusion. They made an offer to us; we saw that it is good, so we accepted it. We need reliable power supply at the airports to carry out the kind of massive development that we want, to boost the economy of this country.”
The IPP, when eventually ratified, would be powered by gas and the capacity would be 30 KVA for each of the airports and when completed the projects would be primary power supply to the airports while the present power project almost completed at the Lagos airport would provide secondary power supply during the maintenance of the IPP and other planned interruptions.
The Minister of Aviation, Stella Oduah, had during her midterm report a fortnight ago in Abuja, said all the major airports in the country would have IPP for uninterrupted power supply to provide the kind of service the airports need, especially now that the federal government was embarking on fresh produce cargo export programme as cold rooms would be built at perishable cargo terminals where the produce would be stored before airlift to various destinations overseas and locally.
Oduah also said the airfield lighting that would be provided at some of the airport runways, including that of the 18L of the domestic terminal in Lagos and the existing ones, would need uninterrupted power both from the IPP and solar power in a backup on backup power system.
If successfully completed, Oando would extend the project to other airports in the country, but another indigenous oil company, MRS was also jostling to provide gas powered IPP to some of the airports, but government had not started any discussion with the company.
The period of completion of the projects, however, is still unknown as government is yet to finalize discussions on the project. – THIS DAY
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.
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.
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.”
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.