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Subsidy: Oil marketers expresses confidence of payment

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By Kunle KALEJAYE
LAGOS-PETROLEUM oil Marketers in Nigeria’s downstream sector of the oil and gas industry have expressed optimism that their subsidy refund and accumulated interest ‎will be paid by the Federal Government very soon.
‎Although the date of the payment is unknown, marketers believed that payment will be made soon after regulatory verification is made.
Chairman, Platinum Alliance, an Oil and Gas Consultancy firm, Sir Uche Iheakanwa, confirmed that payment will be made.
‎” Fuel subsidy will be paid soon after regulatory verification and even before the appointment of Ministers especially that of Finance whose responsibility it is to fund that account,” Sir Iheakanwa said. 
 
As at press time, the actual subsidy figure to be paid to marketers is yet to be verify, Iheakanwa noted that  government believes that the regulated price of downstream products must be maintained to forestall any additional hardship imposed upon the citizens.
 
“This is the reason why DPR and other agencies have been resilient in tackling those who may want to cheat and still collect subsidy. Despite all the challenges, suppliers still believe in the government as the administration has not given anyone reason to doubt,” Iheakanwa said. 
 
Meanwhile, despite the none payment of fuel subsidy to legitimate marketers, it has been observed that supply of petrol ‎across the country has improved and been sold for the actual regulated price (N87 per litre). 
 
Explaining the magic behind the improved supply of petrol in the country, Chairman/Managing Director of Mobil Oil Nigeria Plc, Mr. Tunji Oyebanji said the change in government is one of the reasons. 
 
Oyebanji who spoke recently in Lagos added that banks are now flexible to grant marketers fund to import petroleum products. 
 
“Let make clarify this: marketers did not hold the nation to ransom when there was scarcity of the product. We are yet to be paid but the reason why the product is available is that the refineries are now working, NNPC has brought in more products,” Oyebanji said.
 
Commenting on the status of the refineries, Oyebanji said their technologies are obsolete, hence they cannot operate beyond 60 percent capacity. 
 
He explained that its government decision to deregulate the downstream sector noting that the ‎cost transport crude to the refineries in trucks is not sustainable. 

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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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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