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Lokpobiri, Ahmed, Others to Speak on Nigerian Oil Reforms, Fiscal Incentives at AEW 2024

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Lokpoboiri

By Adedapo Adesanya

Nigeria policymakers will discuss the country’s latest policy directives and investment opportunities across exploration, gas monetization, and refining at the upcoming African Energy Week: Invest in African Energy conference set to be held in November.

Nigeria, Africa’s largest oil producer, is targeting $10 billion in oil and gas investments in the next 12-18 months but still faces challenges including oil theft, underinvestment, and a fresh wave of divestments.

Nigeria has implemented a slate of reforms aimed at creating a more favourable investment climate and improved governance within the sector.

According to a statement, the conference will have an Invest in Nigeria Energies roundtable which will outline the ample opportunities for investors and project developers to grow the energy value chain of Africa’s largest crude oil producer, highlighting the latest policy directives, consolidated fiscal incentives and gas utilization investment allowances.

The session places Nigerian policymakers in conversation with industry regulators and associations, exploring the latest policies, regulations and investment opportunities currently shaping the market.

The discussion will be led by Mr Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil); Mr Abdulrazaq Isa, Chairman of the Independent Petroleum Producers Group of Nigeria; and Mr Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The discussion will also feature representatives from IOCS including ExxonMobil and Chevron.

President Bola Tinubu introduced several policies earlier this year – in addition to the ongoing implementation of the Petroleum Industry Act – to reinvigorate the country’s energy sector and retain its position as a regional powerhouse.

According to him, these new measures aim to deliver a competitive Internal Rate of Return for oil and gas projects and attract over $10 billion in new investments within the next 12-18 months.

For new exploration, this includes streamlining contracting procedures by raising approval thresholds for PSCs and JOAs to not less than $10 million, simplifying processes and extending the duration of third-party contracts from three to five years.

This serves to reduce project contracting cycles, leading to faster oil and gas production and supporting Nigeria’s long-term oil production target of 4 million barrels per day.

Nigeria is also targeting new investments in gas monetization, refining and infrastructure expansion, with a view to boosting gas supplies, raising power access and supporting industrialization.

Business Post reports that gas-focused reforms, including tax credits for non-associated gas projects and a 25 per cent tax dedication for qualifying plant and equipment used in gas utilization projects, have also been disclosed to trigger new investments.

In June 2024, TotalEnergies and the Nigerian National Petroleum Company (NNPC) reached a $550 million FID for the development of the Ubeta gas field. Gas from the field will be supplied to the Nigeria LNG liquefaction plant, with first production anticipated for 2027, and support the country’s transition toward low-cost and low-emission projects.

In the downstream industry, Nigeria has been in the process of deregulating the sector, improving fuel availability and affordability, eliminating government subsidies and improving efficiencies, the statement noted.

Also, the long-awaited Dangote Refinery began operations in late 2023 and hopes to transform Nigeria into a net exporter of refined petroleum products to Europe, Asia and Africa. With a capacity of 650,000 barrels per day, the refinery is Africa’s largest and its operational success is crucial for stabilizing domestic fuel prices, reducing import dependency and increasing foreign exchange earnings.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Rivers Sole Administrator Promises Swift Utilisation of Funds

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Ibok-Ete Ibas rivers state sole administrator

By Adedapo Adesanya

The Sole Administrator of Rivers State, Mr Ibok-Ete Ibas, has assured that necessary steps would be taken to ensure the prompt utilisation of the withheld local government funds, which have now been released by the federal government.

Recall that President Bola Tinubu on Tuesday declared a state of emergency in Rivers State and suspended Governor Similaniyi Fubara and the Deputy Governor, Mrs Ngozi Odu, as well as all members of the Rivers State House of Assembly, over a political crisis. He then replaced them with Mr Ibas, who will act for the next six months as a sole administrator.

Speaking during a meeting with Heads of Local Government Administrators in Port Harcourt on Friday, Mr Ibas described the gathering as a pivotal moment in the collective effort to restore stability and progress in the state.

The Sole Administrator lamented the economic hardship in the Niger Delta, noting that despite the region’s wealth of natural resources, its people continue to suffer.

“This is unacceptable,” he stated, emphasizing the need for transformation and accountability.

He expressed concerns over the delay in salary payments across local government areas, acknowledging the struggles of affected workers.

“I feel the pain of the workers,” he said, assuring them that the withheld allocations had been released and that his administration would ensure that salaries are paid without delay.

However, he warned that financial accountability would be strictly enforced.

Mr Ibas, a retired vice admiral and former Chief of Naval Staff, directed all local government areas to submit their wage bills, supported by relevant documentation, through the office of the Head of Service.

He said his administration would not tolerate financial recklessness, vowing to scrutinize the handling of public funds and take action against any mismanagement.

Mr Ibas said good governance is not just a slogan, but a commitment to changing the negative narrative within the next six months.

He further stressed the importance of collaboration with traditional rulers and security agencies to enhance security at the grassroots level.

“You must take the lead in ensuring security within your domains,” he urged local government administrators.

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FG Calls for Alternative Energy Sources to Drive Nigeria’s Maritime Industry

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Adegboyega Oyetola

By Adedapo Adesanya

The federal government has called for the adoption of alternative energy sources in the maritime industry to reduce greenhouse gas emissions, warning that Africa could face severe economic impacts if left behind in the global transition.

The Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, made this call in Abuja while declaring open the African Strategic Summit on Shipping Decarbonization.

He cautioned that the ongoing shift to low-emission shipping fuels could increase transport costs for Africa, disproportionately affecting developing nations.

“With over 90 per cent of global trade relying on maritime transport, reducing GHG emissions is not just an environmental necessity but an economic imperative,” Mr Oyetola stated.

He stressed the need for Africa to have a strong voice in shaping global policies. “As the IMO advances its regulatory framework on decarbonization, Africa must ensure its interests are safeguarded, as we rely heavily on imports and contribute less than 2 per cent to the global fleet,” he said.

Highlighting the potential benefits of the transition, Mr Oyetola urged African nations to leverage the shift towards cleaner energy to boost industrialization.

“With 38 coastal nations, Africa can use this transition to develop its ports as launch pads for economic growth by engaging the Global North in strategic partnerships,” he added.

The Minister emphasized the need for a just and equitable transition, ensuring that no African nation is left behind.

“While we recognize the urgency of climate action, developing economies face challenges such as limited access to technology, energy poverty, and food insecurity. The principle of common but differentiated responsibilities must guide our approach,” he said.

Also, Director General of the Nigerian Maritime Administration and Safety Agency, NIMASA, Mr Dayo Mobereola, reinforced the urgency of decarbonization.

“The shipping industry contributes about 3 per cent of global emissions. This summit is a platform for Africa to shape a strategy that ensures sustainable maritime development without being disadvantaged,” he noted.

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JUST IN: Ayobo-Ipaja LCDA Chairman Bolatito Shobowale Dies

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bolatito shobowale Ayobo-Ipaja LCDA

By Dipo Olowookere

The Chairman of Ayobo-Ipaja Local Council Development Area (LCDA), Mrs Bolatito Shobowale, has died, Business Post has confirmed.

She passed away on Friday after a prolonged battle with illness and three days after her deputy, Mr Ladi Oluwaloni, was asked to become the acting chairman of the council due to her long absence from work.

Mrs Shobowale had been away from her office for about six months, preventing the presentation of the 2025 budget to the council lawmakers for approval.

There had been underground grumbling within the LCDA until Governor Babajide Sanwo-Olu stepped in and approved the appointment of Mr Oluwaloni as the acting chairman.

Recent council activities had been carried out without the deceased, including the welcoming of the Governor Advisory Council (GAC) led by Mr Femi Pedro and the presentation of work tools to some residents who completed an empowerment programme sponsored by the state government.

Reacting to the death of Mrs Shobowale, the chairman of Alimosho Local Government Area, Mr Jelili Sulaimon, said she would be missed.

Mr Sulaimon, in a statement signed by his media aide, Mr Babatunde Yusuf, described the deceased, fondly called Mama Show, as a mother to all and a good administrator who is ever willing to see Ayobo-Ipaja LCDA progress positively.

According to him, Mrs Shobowale, elected into office in 2021, committed herself to the growth and development of council until her death.

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