Oil
U-turn on Refineries: Oil workers doubt Jonathan’s sincerity
LAGOS – Indications emerged yesterday that oil workers do not believe the announcement that President Goodluck Jonathan has not approved the privatisation of the nation’s four refineries.
The oil workers, under the aegis of the Petroleum and Natural Gas Workers Senior Staff Association and (PENGASSAN), have said a planned meeting with the Minister of Labour, Chief Emeka Wogu, would still hold tomorrow.
In a text message from our correspondent on whether or not the parley would still hold, despite Jonathan’s disapproval of the transaction – which reportedly infuriated the workers to give a warning strike notice on December 18, last year – PENGASSAN President Comrade Babatunde Ogun said the announcement by the President’s Special Adviser on Media and Publicity, Dr. Reuben Abati, was not convincing.
Ogun stressed that the workers would hold the meeting because they wanted Nigerians to witness the happenings between both sides.
He said: “We can believe a statement by an aide of the President but we are not convinced yet. We want Nigerians to be our witnesses: the meeting will hold.”
The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, had announced in London that the Federal Government would privatise the Port Harcourt Refining Company Limited (PHRC) I; Port Harcourt Refining Company Limited (PHRC) II; Kaduna Refining and Petrochemical Company Limited (KRPC) and Warri Refining and Petrochemical Company Limited (WRPC) in the first quarter of this year.
The Bureau of Public Enterprises (BPE), in a statement in Abuja, announced that Dr Jonathan had approved of the privatisation of the refineries.
The BPE statement added that the President had raised a steering committee on the privatisation of the refineries.
A statement by the Head of Public Communications of BPE, Mr. Chigbo Anichebe, said the Minister of Petroleum Resources heads the committee while its members are: Ministers of Finance, Power, Labour, National Planning, Mines and Steel Development, Justice and the Chairman of the Extractive Sub-Committee of the National Council on Privatisation (NCP).
Other members are: the Special Adviser to the Vice President on Economy, the Group Managing Director of NNPC, the Director-General of BPE, the Group Executive Director (Refineries) of the NNPC, among other.
The committee’s Secretary is Director (Oil and Gas) of the BPE.
The statement added: “This is in keeping the Transformation Agenda, which seeks to catalyse and provide an enabling environment for the private sector to be the drivers of economic growth in the country.”
But Dr Abati, in a statement on January 2, explained that the government had no plans to privatise the refineries.
– THE NATION
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
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.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
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.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
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.