Oil
Senate to probe NNPC, CBN, others for breach of Fiscal Responsibility Act
ABUJA – The Senate is set to order its Joint Committee on Finance, Judiciary, Human Rights and Legal Matters to commence a probe into perceived loss of revenue into the Consolidated Revenue Fund of the Federation through the breach of the Fiscal Responsibility Act (FRA) as well as alleged breach of public procurement laws and regulations by Central Bank of Nigeria (CBN), Nigerian National Petroleum Corporation (NNPC) and other government agencies.
The directive is fallout of a motion to be moved by Senator Ita Enang (Akwa-Ibom North-east), alleging breach of Section 80 (1) of the 1999 Constitution, which stipulates that all revenues raised or received by the federation shall be paid into the Consolidated Revenue Fund of the Federation.
The motion is also aimed at determining why the balance of their operating surplus is not paid into the Consolidated Revenue Fund and why affected agencies have failed to establish a general reserve fund for the purpose of allocating one-fifth of their operating surplus at the end of the year to the Consolidated Revenue Fund as stipulated in Section 22 (1) and (2) and Section 23 (1) of FRA.
The committee is also expected to determine whether funds spent by agencies listed under FRA exceeded 20 per cent of their revenue surplus and if it is so, where and when the remaining 80 per cent operating surplus was paid.
The committee will also determine whether these agencies are not bound to submit their procurement to the Bureau of Public Procurement (BPP), which has the responsibility to vet and issue authorised certificates before going ahead with such procurement.
The motion was spurred by the alleged abuse of office by CBN which is believed to have derailed from its core functions to other responsibilities such as donations of a whopping N50 billion to tertiary institutions when in the real sense, its duties are to ensure monetary and price stability, issue legal tender currency in Nigeria, maintain external reserves to safeguard the international value of the legal tender currency, promote a sound financial system in Nigeria, and act as banker and provider of economic and financial advice to the federal government.
Other factors giving rise to the motion include the yet-to-be-remitted $10.8 billion by NNPC as well as N255 million spent by the Nigeria Civil Aviation Authority (NCAA) to purchase armoured cars for the Minister of Aviation, Ms. Stella Oduah.
Enang, had in the written motion meant to have been presented on Wednesday, but which was stood down as a result of the executive session held by the senate over the defection letter of 11 senators, added that CBN had in breach of the constitution and FRA, failed to pay its operating surplus to the Consolidated Revenue Fund for appropriation by the National Assembly and instead had cultivated the habit of awarding contracts using such funds.
He listed the contracts that had already been awarded as well as proposed projects by CBN to include N98 billion for International Convention Centre, Abuja; a N14 billion project in University of Lagos; N12. 9 billion contract in University of Maiduguri; N11.3 billion project in Nigeria Defence Academy; N10.2 billion contract in the University of Port Harcourt; N9.5 billion project in University of Jos; and N6.8 billion contract award in University of Nigeria, among several others
– 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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