Oil
Petroleum minister restates commitment to PIB
LAGOS – The Minister Petroleum Resources, Mrs Deziani Alison-Madueke, has reiterated the commitment of the federal government towards achieving the petroleum industry reforms agenda through the actualisation of the objectives of the Petroleum Industry Bill (PIB).
Speaking at an interactive enlightenment workshop on the PIB held in Lagos at the weekend, Alison-Madueke, who was represented by the Group General Manager, National Petroleum Investment Management Services (NAPIMS), a subsidiary of the NNPC, Mr. Jonathan Okehs, assured that the PIB embodies the essential reforms that will put the petroleum sector on the path of robust growth.
She stated that the government priorities include the promotion of private sector investment in both upstream and downstream activities of the oil and gas industry.
In achieving this, she said the government is determined to establish a commercial framework for the industry including a tariff regime that promotes transparency, and also guarantee security of investments and a reasonable rate of return on investment.
She reiterated the urgent need to deregulate the industry and promote environmentally-friendly oil and gas exploration and exploitation methods.
The minister listed the other objectives of the reforms to include local content development; strengthening capacity building programmes, especially in core technical areas; and the provision of funding mechanisms for pre-bidding geosciences and surveys of deepwater offshore.
She noted that the reforms seek gas flare down to reduce pollution and increase revenue and promotion of adequate gas supply for domestic use and power generation.
Alison-Madueke also highlighted strategies to be adopted in achieving these objectives.
Some of these strategies include creating a deregulated and competitive petroleum sector to attract foreign and local investments; ensuring a viable commercial framework for the petroleum sector, including a tariff regime that promotes accountability.
“These strategies have proven to be successful in the power sector. Today, Nigeria is on the way to accessing capital investors in a sector, hitherto been without prospects due to policies that made investments uneconomic to pursue. It is my belief that the PIB embodies the essential reforms that will put the petroleum sector on the path of robust growth.
Adhering to the principles advocated above, Nigeria fully expects to be a significant hub in the African region for petroleum activities. We anticipate that initiatives such as gas pricing reforms, gas commercialisation framework and the gas infrastructure blueprint,” she explained.
Representative of the Trade Union Congress (TUC), Mr. Mike Anochirim, said the bill is long overdue for passage.
He agreed with the recommendations of the PIB, adding that the issue of outsourcing and contract staffing is another critical issue that should be noted by the legislators.
Decrying the huge number of Nigerians still working as contract staff in the oil industry, he emphasised that regular jobs should not be outsourced under the new regime.
– THIS DAY
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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