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Fuel Scarcity:Nigeria’s Oil marketers to get N264b outstanding in March

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Okonjo-Iweala

Okonjo-Iweala

By Kunle Kalejaye
The Federal Government have draw a workable payment timetable to refund the outstanding sum of N264 billion it own oil marketers in part of 2014 and 2015 before the end of March 2015
The Minister of Finance and the coordinating Minister of the economy, Dr. Ngozi Okonji Iweala reassured oil marketers yesterday in a closed meeting held in Lagos.
At the end of yesterday meeting with the minister, oil marketers were assured that a total of N164 billion of their subsidy claims and N100 billion foreign exchange and interest will be paid.
Biztellers.com had earlier reporter that fuel importation has dipped by 14 percent leading to scarcity of the product between next month and April.
To advert the fuel shortage in the country, the finance minister of meet with oil marketers in Lagos while the Minister of Petroleum Resources, Mrs Diezani Alison Madueke was in London for official duties but flew into the country today.
Confirming the outcome of the meeting, the Executive Secretary of Major Oil Marketers Association of Nigeria, MOMAN, Mr. Obafemi Olawore told journalist in Lagos that government has assured them of their payment on schedule.
According to him, “there was drop in fuel supply in the country but the good news is  ‎that we met with the minister of finance and we have been promised and assured that our money will be ready between now and March ending.
“Our principals have agreed with the workings of the payment. We believe her and the fuel supply situation that was low before will pick up.
“If you notice any tightness in the purchase of fuel, it is a temporal one but products will be made available. We are going to play our part.
“Many oil companies have been over outstretched because of lack of funds and banks no longer wants to support us. But with this new development and promised made, things will go back to normal.”
‎Commenting on the refund of the differential payment for the reduction of fuel price from N97 to N87, the MOMAN scribe said government will also reimburse marketers as the working process is ongoing.
“Before the reduction from N97 to N87 per litre of fuel, we already have stock. Government has assured us that they will pay the difference and we are working on that,” Olawore said.
He however lamented the negative impact foreign exchange on fuel importation noting that when exchange rates continue to move, it will swallow the available advantage in the business.
“When exchange rate goes up, landing cost for diesel or PMS also goes up and this cost are factor in when final sales is done to filling stations.”
He therefore call for complete deregulation in the downstream sector of the petroleum industry that will pave way for private investor to build refineries in the country.
The MOMAN scribe also urged the National Assembly to expedite action to pass the Petroleum Industry Bill, PIB ‎stating that there is room for amendment when the need arise.
Recalled that the federal government had paid marketers N345 billion in 2013 and part of 2014 as subsidy.

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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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.

 

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Business

Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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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.

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Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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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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