Oil
Oil Traders likely to sue Swiss NGO
ABUJA – Oil traders accused of shady deals in Nigeria’s crude sales by a Swiss-based Non- Government Organisation, the Berne Declaration, may have approached their lawyers on the possibilities of seeking redress for what they described as “libelous publication” by the NGO.
Sources privy to the move hinted that “The Swiss-based researchers from a distance published what can be likened to a ‘beer parlor gist’ on Nigeria oil and gas sector based on their vague understanding of the unique Nigerian business environment. This explains why they hurriedly lifted unverified figures from equally disputed sources like the Ribadu and Farouk reports, but we are determined to teach them some legal lessons,” the source intoned.
The Berne Declaration had alleged that some local and international oil traders were colluding with the Nigerian National Petroleum Corporation, NNPC, to defraud the country of billions of dollars, thus sparking off enquiries into the country’s crude oil sales.
Irked by the insinuations contained in the report, the oil traders were said to be rallying to file legal action against the group, whose report is believed to be rooted in conjectures and unverified statistics.
The report, titled: “Swiss Traders’ Opaque Deals in Nigeria,” has been criticised by some industry players who flayed the NGO for its poor showing and understanding of the operating environment in the Nigeria’s oil and gas industry.
It was gathered that the consortium of local and international oil traders mentioned in the report have opened consultation with a United Kingdom, UK- based international law firm with a view to seeking judicial redress for the libelous publication. Sources close to the oil traders argued that the Berne Declaration literally “plagiarised” the controversial Nuhu Ribadu-led Petroleum Revenue Special Task Force draft report, as well as the now discredited Farouk Lawal-led Committee report on subsidy, which it relied on to reach its conclusions.
Furthermore, they argued that the deliberate description of specific businesses and individuals that have not been found guilty of any offense in any court of law as fraudsters, may work against the organisation in the Swiss Court.
“Such vilifying and unprofessional conducts are frowned at by laws around the world especially in Switzerland,” they added.
NNPC rebuttal
Recall that the NNPC had refuted the contents of the publication in its entirety, describing it as mere phantom.
The Acting Group General Manager, Group Public Affairs Division of the Corporation, Ms. Tumini Green, had described the publication as not only bogus, but also strewn with inaccurate and poorly researched data, which defied common sense and verifiable evidence in Nigeria.
“For instance, how can anybody who claims to be a close observer of the Nigerian oil and gas industry say that the process leading to the award of Term Contract for the lifting of Nigeria’s crude is shrouded in mystery? It is a common knowledge that the call for tender for this contract is periodically published by almost all the newspapers in Nigeria via paid advert placements by the NNPC,” Green noted. She explained that in practice the Corporation sells Nigerian government equity crude oil to lifters/traders engaged on Annual Term Contract basis, adding that at present there are about 50 such term contracts.
“No company has a monopoly or exclusive right to lift any quantity of Nigerian crude oil. The process of selection of traders/lifters is competitive and transparent. Traders lift crude oil according to the terms of contractual agreements applicable to all traders, among others on (Free on Board) FOB basis and proceeds paid directly into designated Central Bank of Nigeria crude oil sales accounts,” she further said.
On the allegation that Nigeria’s crude is sold to some companies at special discounted rate, Green countered: “Nigeria crude oil is sold at published Official Selling Price (OSP). This is not only bench-marked against the internationally recognised pricing institution, Platts daily publications, but also fixed after a critical analysis of market fundamentals and price determinants at global level. The OSP differentials are determined crude stream and cannot favour an individual or group of traders as being insinuated,” she explained.
– 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.
Enugu Gov Presents ₦971bn 2025 Budget To State Assembly
Tinubu, Wife To Embark On State Visit To France
We Arrested Yahaya Bello; He Didn’t Submit Himself – EFCC
FIRS Chairman Advocates For Innovation To Boost Nigeria’s Economy
Over 4,400 Police Officers File Lawsuit Against NPF, IGP Over Promotions
Tinubu Applauds Revival Of Port Harcourt Refinery, Orders Prompt Reactivation Of Warri, Kaduna Refineries
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
