Connect with us

Business & Economy

PIB: NAEE calls for clarity on 30% frontier exploration revenue

Published

on

Prof. Yinka Omoregbe
Prof. Yinka Omoregbe
Share

Prof. Yinka Omorogbe, President, NAEE, has called for clarity on 30% NNPC Limited transfer of oil and gas profit to  frontier exploration fund

By Edith Ike-Eboh

Prof. Yinka Omorogbe, President, Nigerian Association of Energy Economics (NAEE), has called for clarity on the 30 per cent NNPC Limited transfer of oil and gas profit to  frontier exploration fund as recommended in the recently passed Petroleum Industry Bill (PIB).

 Omorogbe made the call at the 14th Annual conference of the Nigerian Association of Energy Economics in Abuja on Monday.

The News Agency of Nigeria (NAN) reports that the National Assembly on July 1 passed the PIB which had raised a lot of controversy on issues of Host Community and revenue remittances.

 She commended the National Assembly for the passage of the bill as it was needed for the growth of the sector.

According to her, those that have the actual figures should release them for clarity  as will help to reduce the controversy related to percentages.

`”In this season of change, we cannot be left behind. We cannot be the country that remains frozen in debilitating discussions on whether or not a Bill that will provide a new legal framework for the petroleum industry must pass or not because of controversial clauses that can be amended.

“As the nation debates the Bill, it is necessary to focus on its actual contents and not on interpretations that are not always supported by fact.

“ It is important for those who can, to come out with actual numbers and eschew the present discussions on percentages, based on the perception that they refer to the same thing when in fact they do not.

“ Daily we hear about three per cent as against 30 per cent. three per cent of what? ,’’ she said

It will be recalled that  according to Section 9(4) of the House draft of the PIB, the Frontier Exploration Fund shall be 10 per cent of rents on petroleum prospecting licences and 10 per cent  rent on petroleum mining leases; and 30 per cent of NNPC Limited’s profit oil and profit gas as in the production sharing, profit sharing and Risk service contracts.

The fund shall be applied to all Basins and undertaken, simultaneously.

It also read in Section 9(5) NNPC Limited shall transfer the 30 per cent of profit oil and profit gas to the frontier exploration fund escrow account dedicated for the development of frontier acreages only.

Omorogbe queried how 10 per cent became 30 per cent and urged stakeholders and those involved to offer more explanation for the people to understand.

Commenting on the impact of COVID-19 on global economies, she said that the global poor were the worse hit with the pandemic

“The global coronavirus pandemic which has continued to ravage the world since early 2020 has become the world’s greatest challenge, exacerbating global poverty but serving to emphasise that there was now the need for radical change.

“An estimated 689 million people, comprising approximately roughly nine per cent  of the global population, were estimated to live in extreme poverty in 2020.

“ Seventy per cent of these persons are in Africa and a hundred million of these are in Nigeria.

“ It has recently taken over from India as the poverty capital of the world, with the unenviable position of being the country with about 90 million people living in extreme poverty.

This is particularly tragic when one considers that India has over one billion people and Nigeria has 200 million,’’ she said

According to her, this appears to signify that the virus and its various mutations could be around for a while.

She called for strategic solution from participants and all stakeholders to help in creating avenue for new approach to solve the challenges as it relate the oil and gas sector.

In his welcome address. The Executive Secretary, Petroleum Technology Development Fund (PTDF), Dr Bello Gusua, said the pandemic significantly affected African countries collectively and individually.

He said that the effect was characterized by a decrease in the Gross Domestic Product (GDP) and its growth, loss of employment, increase in poverty, inflation among others.

“Although the present economic indices show a gradual stability, especially in the price of crude oil compared to last year, when the pandemic had reached its peak.

“It is clear that before we can return to the same or higher levels of GDP subsisting before the crisis, the oil and gas industry will need to evolve and adapt pertinent strategic response,’’ he said .

He  added  that African countries that were members of OPEC must have strategic plans to develop the sector for growth of the economies.

He assured that the PTDF intervention would continue to be available for the development of the sector.

“Today’s meeting is to explore the strategic responses to energy sector to COVID-19 and the impact on African Economies, in this wake of this new framework and thrust to normalize the road to economic stability, it is certain that capacity building will play a major role in this upward transition.

“On that note, PTDF intervention will always be available to support the industry,’’ he said (NAN)

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business & Economy

FG Rules Out Electricity Tariff Hike, Targets 24-Hour Power Supply

Published

on

Power Station and Meters
Share

 

The Federal Government has ruled out any plan to increase electricity tariffs, saying its priority is to improve power supply and ensure reliable electricity across the country.

The Minister of Power, Joseph Tegbe, gave the assurance in Ibadan, Oyo State, on Thursday, amid concerns and speculation about a possible increase in electricity tariffs.

Tegbe spoke during the groundbreaking ceremony for five interconnected mini-grid projects with a combined generation capacity of 17.7 megawatts and a 17.74-megawatt-hour Battery Energy Storage System (BESS).

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” the minister said.

He urged Nigerians to disregard reports suggesting an impending tariff hike, stressing that the government was focused on improving electricity generation, transmission and distribution.

The five mini-grid projects are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega. They are expected to provide electricity to communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.

According to the minister, the projects are designed to expand electricity access, reduce dependence on petrol and diesel-powered generators, and create a more favourable environment for businesses, investment and job creation.

Tegbe said the Federal Government was also implementing a broader energy strategy aimed at improving electricity supply through designated energy corridors, including the Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt corridors.

He added that efforts were underway to strengthen the national grid and upgrade generation and transmission infrastructure across the country’s eastern, western and central corridors.

The minister described the mini-grid initiative as part of President Bola Tinubu’s Renewed Hope Agenda, noting that similar electricity interventions had been implemented in communities across several states with support from the Rural Electrification Agency (REA).

He commended Tinubu for his leadership and acknowledged the contributions of the REA, project developer Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company.

Tegbe also recognised the Oyo State Government, traditional rulers and other stakeholders for their roles in facilitating the projects.

The initiative is expected to improve electricity reliability in the beneficiary communities, support local economic activities and reduce energy costs for households and businesses.

 

Continue Reading

Business & Economy

Oyedele Warns Against New Taxes, Urges Governments to Explore Revenue Alternatives

Published

on

President Bola Ahmed Tinubu
Share

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has cautioned governments against imposing new taxes or increasing the tax burden on vulnerable citizens and productive sectors amid economic pressures.

Oyedele spoke on the sidelines of the 2026 annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok, Thailand, where he presented the communiqué of the Intergovernmental Group of Twenty-Four (G24), which he chairs.

The minister said governments should prioritise identifying areas of savings, improving revenue mobilisation and strengthening fiscal management rather than introducing additional tax burdens that could further strain households and businesses.

“This is the wrong time to impose new taxes or increase the burden of tax, particularly on the vulnerable population and productive sectors of the economy,” he said.

Oyedele made the remarks while responding to questions on how developing countries could reduce debt-servicing costs without cutting essential public expenditure.

He urged governments to look inward for savings and explore more efficient ways of generating revenue while protecting vulnerable populations from further financial pressure.

On public borrowing, the minister said debt financing remained necessary to support economic growth but stressed that borrowed funds should be deployed to stimulate job creation and promote inclusive development.

He noted that governments should prioritise limited public resources for essential services, including healthcare and education, while leveraging private capital to support other investment needs.

Oyedele also cautioned against treating taxation and borrowing as mutually exclusive options, explaining that both have economic implications and must be carefully balanced.

According to him, excessive taxation of vulnerable households could reduce their capacity to afford basic necessities, including food, healthcare and education.

He described public debt as a future tax burden, emphasising the need for governments to adopt fiscal policies that balance present revenue needs with long-term economic sustainability.

“Debt is future taxes, so it’s not one or the other. It’s to strike a balance, bearing in mind ultimately that the essence of tax and of debts is to cater for the people,” he said.

The minister’s remarks underscore the need for developing economies to strengthen domestic revenue mobilisation, improve public spending efficiency and manage debt sustainably without undermining household welfare or productive economic activities.

Continue Reading

Business & Economy

Over 67,000 Nigerians Benefit From Consumer Credit Scheme — Tinubu

Published

on

President Bola Ahmed Tinubu
Share

 

President Bola Tinubu has said that 67,512 Nigerians across 25 states and the Federal Capital Territory (FCT) have so far benefited from credit backed by the National Credit Guarantee Company (NCGC).

Tinubu disclosed this on Monday in a series of posts on his official X account as Nigeria prepares to celebrate its 66th Independence Day.

According to the President, the NCGC has issued ₦21.59 billion in guarantees, enabling participating financial institutions to provide ₦46.95 billion in loans.

He said 11,374 of the beneficiaries are women, while 33.5 per cent are first-time formal borrowers.

Tinubu noted that more than 22,000 Nigerians had entered the formal credit system for the first time through the scheme, giving them an opportunity to build credit records that could improve their access to future loans.

The consumer credit scheme was launched in July 2026 by the Nigerian Consumer Credit Corporation (CREDICORP), in partnership with the Federal Ministry of Communications, Innovation and Digital Economy.

The President said the initiative was part of his campaign promise to move Nigeria towards a credit-based economy and make financing more accessible to individuals and businesses.

He said CREDICORP enables working Nigerians to access consumer credit, while the National Education Loan Fund (NELFUND), Bank of Industry and Development Bank of Nigeria provide financing in other sectors.

Tinubu explained that the NCGC was established to reduce the risks faced by financial institutions when lending to businesses and individuals without sufficient collateral or credit history.

He said the company currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.

The President added that businesses supported through the NCGC scheme were estimated to have created 661,291 direct and indirect jobs.

He said the impact of the scheme showed how government reforms could translate into economic opportunities for Nigerians.

“Our reforms laid the foundation. Credit gives Nigerians the means to build on it,” Tinubu said, adding that the Federal Government would continue to expand access to credit across the country.

He described the development as evidence of his administration’s efforts to fulfil its campaign promises, saying, “Promise made, promise kept. We are moving from reforms to opportunities. Nigeria First.”

Continue Reading