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.

Breaking

SON insist on international best practices, set-up committee to audit, certify education sector

Published

on

Share

In ensuring that educational management system in the country deliver on their mandate of impacting knowledge and skills, the Standards Organization of Nigeria (SON) has inaugurated national technical committee for adoption and certification of education management standards.

At the inauguration in Abuja, Farouk Salim, Director General of SON, said one of the challenges facing Nigeria has been international standards both in products and services delivery, which is why the organisation is aligning to best international practice.

“One of SON mandate is to support all businesses in determining quality of products/services using ; standardization, certifications and quality assurance. As such our decision to adopt this international standard on educational organizations management system ISO 21001:2018 is apt at this time when we have opened our borders to all forms of trade with other African countries.

“It is important that we promote and sustain our learning institutions by ensuring that the services that are provided in our schools meet the needs of learners, promote equal opportunities for all students and earn the confidence and approval of learners’ sponsors in order to contribute their quota to national growth and development,” he said.

Salim, represented by Engr. Timothy Abner, Director Training services at the SON added that although government is doing a lot to upgrade the standard of products and the education sector, he however also noted there should be additional effort of adopting and establishing this international best practice will assist Nigeria to always deliver globally recognized services and products in different sectors of the economy.

The Committee is to draw up requirements for bodies providing audit and certification of educational organizations management systems.

Continue Reading

Business & Economy

Senate summons CBN Governor over naira fall

Published

on

Senate in Session
Share

 

…proceeds on annual recess till Sept. 20 
The Senate, on Wednesday, resolved to summon the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, to educate and inform senators in a closed session on the reasons for the rapid depreciation of the value of the naira.
It also mandated the Senate Committee on Banking, Insurance and Other Financial Institutions to assess the impact of CBN intervention funds meant to support critical sectors of the economy.
The resolutions were reached by lawmakers after the upper chamber considered a motion sponsored by Senator Olubunmi Adetunmbi (APC – Ekiti North).
The motion was entitled, “State of CBN Intervention Funds and Free Fall Of Naira.”
Coming under Order 41 and 51 of the Senate Standing Order, as amended, Adetunmbi bemoaned Nigeria’s economic reality amid an urgent call for “extraordinary measures”.
He noted that the CBN through its numerous multi-sectoral intervention funds, provided special funds to support critical sectors of the economy.
He explained that in view of such interventions, it had become necessary to assess the state of implementation and effectiveness of the funds deployed for the purpose.
The lawmaker, recalled that the CBN in 2021, placed an indefinite halt on forex bidding by Bureau de Change operators (BDCS) and importers over allegations of abuse and mismanagement.
He observed that the halt by the CBN resulted in a spike of the exchange rate.
According to Adetunmbi, “the two instruments of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) could only serve less than 20% of the total forex demand by travelers and businesses.”
He expressed worry that the import and export window meant to serve the forex needs of business giants, “has become a rare opportunity that only a privileged few can access.”
“These and a number of others have contributed to the excessive scarcity of forex in Nigeria today”, he added.
He noted that as at the 26th of July 2022 (yesterday), the exchange rate in the autonomous segment (BDCS) of the foreign exchange market is N670 to 1 United States Dollar and projected to end at N1000 by end of the year based on the current rate of depreciation.
He, therefore, advised the Central Bank to take new measures to curb forex scarcity and address the sliding rate of Naira exchange.
In his contribution, Senator Sani Musa (APC – Niger East), faulted the Central Bank’s decision to halt foreign exchange biddings, thereby cutting off the parallel market – Bureau de change operators.
According to him, the attempt by the CBN to control the value of the naira with the continuous exclusion of BDCs would only lead to its further depreciation.
He, therefore, advised the apex bank to rather ensure the regulation and monitoring of the parallel market.
“What CBN used to do was to give out $10,000 (USD) to each of these BDCs with a clear directive for it not to be sold above N470 as against the $419 exchange rate. It worked.
“But today, nobody is determining where the rate is going and I can assure you we can’t have that solution because we are only importing”, he said.
On his part, Senator representing Katsina North District, Senator Ahmad Babba-Kaita, said one way to improve the value of the naira was to encourage foreign investments to attract inflow of other currencies into Nigeria.
“The only way we can access the dollar will be determined by other economies and not ours”, he noted.
He, however, attributed the lack of foreign investments into Nigeria on the poor security situation caused by banditry, terrorism and other criminal activities.
The Senate, in its resolutions, called on the CBN to urgently intervene to stop the rapid decline in the value of the Naira vis-à-vis the Dollar and other international currencies.
It also mandated the Senate Committee on Banking, Insurance and Other Financial Institutions to conduct an assessment of CBN intervention funds and the declining value of Naira to come up with sustainable solutions.
The Senate, at the end of Wednesday’s proceedings, adjourned plenary till September 20th, 2022, for its annual recess.
Continue Reading

Business & Economy

Buhari seeks Senate’s nod on four re-appointed nominees as Directors of CBN board

Published

on

CBN Headquarters Abuja
CBN Headquarters Abuja
Share

 

The Senate, on Tuesday, received a request from President Muhammadu Buhari, to confirm the re-appointment of four nominees as Non-Executive Directors of the Board of the Central Bank of Nigeria.

The request was contained in a latter dated 21st July, 2022, and read at the start of plenary by the Senate President, Ahmad Lawan.

The President, in the letter, explained that the request to confirm the nominees was made in accordance with Section 10(3)(a) of the Central Bank of Nigeria (Establishment) Act 2007.

The nominees for confirmation include: Prof. Mike Idiahi Obadan (South South), Prof. Justitia Odinakachukwu Nnabuko (South East), Prof. Ummu Ahmed Jalingo (North East), and Mr. Adeola Adetunji (South West).

Continue Reading