Oil
Why we’re yet to move against NNPC-Pres. Buhari
ABUJA—THE Federal Government, yesterday, attributed the delay in moving against the Nigerian National Petroleum Corporation, NNPC, to efforts being made to establish the magnitude of fraud and inefficiencies in the corporation and in the oil and gas industry over the last couple of years.
Speaking in an interview on the Nigerian Television Authority, NTA’s, ‘Good Morning Nigeria,’ programme, President Muhammadu Buhari disclosed that the government was already working with some individuals that are helping it to track the destination of stolen crude oil and the accounts the proceeds were paid into.
He also reassured during the interview that only patriotic, decent and experienced Nigerians would be appointed as ministers in his government even as he lamented the state of the Air Force, which according to him could not support ground troops in the fight against Boko Haram terrorists due to lack of serviceable equipment. He said: “Frankly, I read the stories too that I intend to break up the NNPC.
I think the best way to go about it is to establish the fact of the magnitude of the inefficient way the NNPC conducted itself. When we do that we will be on a higher moral ground to carry out whatever recommendations that have been made to us.”
He maintained that the NNPC has lost track of the number of accounts it had, adding that the government was discreetly working with some Nigerians to ensure that perpetrators of fraud in the oil and gas sector were brought to book. “We have to maintain high confidentiality so that we do not put at risk some of the Nigerians that are helping us to trace some of the destinations of this stolen crude and then the accounts where they are being paid into instead of the Federal Government account.
“I do not think the NNPC knows how many accounts are outside there, which payments are being made for Nigerian crude which is really an outright theft. The money we want to intercept which have been going on for a number of years, a lot of Nigerians will not comprehend,” he explained. Offshore processing agreements Buhari lamented the fact that the crude oil swap programme and offshore processing agreements, OPA, have over the years been used to defraud the country, stating also that a number of operators in the oil and gas industry displayed lack of conscience and love for the country.
He said: “These individuals have refineries all over the world. The swapping is tied into a major killing ground for corrupt officials with an average evil to loot the country’s crude, work out how much they can bring back to us, and we pay for the transportation and for the refining. ‘The swapping programme is such a dishonest way through which Nigeria is consistently losing on daily basis, millions of dollars. I think the people who have been operating in the industry, a lot of them have displayed lack of conscience and patriotism, and only God knows the amount of damage their actions have inflicted on Nigeria.”
He expressed optimism that the United States and other European countries are willing to cooperate with Nigeria in repatriating funds that are proceeds of corruption and stolen crude. However, he stated that the Federal Government is working to ensure that it complied with the laws of these countries and provide them with the needed documents that will help expedite the repatriation. He said: “These countries are willing. I have also said that we have to comply with their system; that we have to get the documents, especially the shipping documents, and how we load from our terminals, their destinations.
It is important to note that some of them change the crude and the destinations in the high seas and then change the account it needs to be paid into. Instead of the Federal Government account, they are paid into individual accounts.
“The cooperation we need is that once we get hold of the shipping documents and we are lucky to trace them out to the countries where they sold the crude and which account it goes into and we submit the evidence in terms of loading, in terms of payments being paid into accounts other than the Federal Government account. “Once we do that, we are very willing to make sure that those accounts are frozen and the money repatriated to Nigeria. It is not an easy process, but I assure you that we are working very hard. We cannot say that we wait until everything is intact before we let you know. Whatever we are able to get in the following months or a couple of months, we will bring it out for Nigerians to know, with facts in our hands and prosecution started against those who perpetrated the unpatriotic action against Nigeria for so many years.
” Appointment of ministers On the appointment of ministers, President Buhari reassured that only patriotic, decent and experienced Nigerians would be appointed as ministers in his government. He said: “From what I have seen so far, we need really patriotic Nigerians — Nigerians that can work very hard, knowledgeable, experienced and committed Nigerians to be in charge of ministries. “A lot of the institutions of Nigeria — important institutions were compromised. Everybody was for himself and God for all of us; it’s most unfortunate.
“We have the people, educated people, experienced people but everybody seemed to be working for himself — how much he could get as quickly as possible. “We have to look for technocrats and we have to look for politicians and certainly we have to look for decent people in these classes to give them the responsibility of being in charge of ministries and important parastatals (agencies).” Air Force Lamenting the state of the Air Force, Buhari said, “Our case is lack of capacity and effective Air Force. We don’t have trained personnel.
The Air Force is virtually non-existent. The fixed-wing aircraft are not very serviceable. The helicopters are not serviceable and they are too few. We need the Air Force to conduct reconnaissance and support the ground troops. The arrangement made by the former government will soon expire. We have made this clear to the Americans and we have made it clear to G7 and we need their cooperation.”
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.
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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.
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.”
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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.