Business & Economy
PIB: NAEE calls for clarity on 30% frontier exploration revenue
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)
Business & Economy
Dangote Refinery Will Generate ‘Massive Job Opportunities’ – Aliko
The President of The Dangote Group, Aliko Dangote, on Monday, said his refinery will generate “massive” job opportunities for the teeming Nigerian youths.
He stated this in Lagos during the commissioning of the 650,000 bpd Dangote Petroleum Refinery and Petrochemicals by President Muhammadu Buhari.
The project is expected to churn out Premium Motor Spirit (PMS), diesel (AGO), aviation jet fuel and Dual-Purpose Kerosene (DPK), among other refined products.
“The refinery operation will generate massive job opportunities in their hundreds of thousands,” he said while highlighting the benefits of the refinery.
“The refinery will make available to our industries vital raw materials to a large range of manufacturers in the pharmaceuticals, food, beverages, construction and many other industries.”
The businessman also expressed thanks for the “massive” support for him and The Dangote Group towards the creation of the Dangote Petroleum Refinery and Petrochemicals plant.
He appreciated Buhari and Nigerians for the immeasurable support his company received from the inception of the project to its completion.
“What I want to share with Nigerians is actually to show my personal gratitude and that of The Dangote Group, for all the assistance that we got from the President, from the Federal Government of Nigeria, from even the President-elect, because he also set the pace by creating the Lekki Free Trade Zone as part of his dream.
“And also we want to thank most especially Governor Fashola, Governor Ambode and most especially Governor Sanwo-Olu; because they have given us all the assistance that we were looking for.
“We thank all Nigerians for giving us their support which is too numerous to mention,” the industrialist said.
Business & Economy
Dangote Refinery To Generate 12,000 Megawatts Of Electricity – CBN
The Central Bank of Nigeria (CBN) has said that the newly inaugurated Dangote Petroleum Refinery and Petrochemicals will help Nigeria generate more power for its electricity sector.
Speaking today at the inauguration in Lagos State, Governor of the apex bank, Mr Godwin Emefiele, said the Dangote Refinery is expected to generate 12,000 megawatts of electricity.
He further stated that over 135,000 permanent jobs will be available to Nigerians as operations get underway.
According to him, it is also expected that the refinery saves Nigeria between $25 and $30 billion in forex annually.
Like a venture that continues to give, the refinery Emefiele says will further give the economy an inflow of $10billion yearly.
In his opinion, the Dangote Refinery is an indication that Nigeria can produce whatever it Needs.
Business & Economy
SANWO-OLU PRAISES BUHARI, TINUBU, DANGOTE CONTRIBUTIONS TO NIGERIA’S FIRST PRIVATE REFINERY
•LASG has provided enabling environment for private sector growth, says Dangote
Lagos State Governor, Mr. Babajide Sanwo-Olu, on Monday, said the stories of President Muhammadu Buhari; President-elect, Asiwaju Bola Tinubu and Chairman of Dangote Group, Alhaji Aliko Dangote are a testament that prosperity can be achieved when leaders have shared vision for the people they are leading.
Sanwo-Olu shared three different stories on how President Buhari, Asiwaju Tinubu and Dangote are connected to the newly commissioned first privately owned refinery in Nigeria, the Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, said the three leaders have shown Nigerians that leadership is about consistency and commitment to Nigeria’s economic growth.
He said: “The vision of Aliko Dangote, President Muhammadu Buhari and incoming President Asiwaju Bola Ahmed Tinubu, is a story of possibility when men have a shared common vision, purpose and they have the possibility that things can happen, things can change and things can be prosperous for the people they are leading.
“These three men; Aliko Dangote, President Muhammadu Buhari, and President-elect Bola Ahmed Tinubu epitomise all the great qualities of great leadership. They have shown us that nothing can be something. They have shown us that leadership is about consistency. It is about showing that whatever it is that you believe in, give it all it takes and at the end of it you will see the results coming out.”
Governor Sanwo-Olu while commending Dangote, said the business mogul is a completely detribalised Nigerian who has impacted many lives positively.
He said: “To our son Alhaji Aliko Dangote, we are indeed truly proud that you have put Nigeria and indeed Africa on that world map in which you have done the very first. We are proud of your belief in your country and your belief in the youth that you are giving the opportunity to. We are proud of the fact that you are a Nigerian that is completely detribalised and you have imbibed it in many ways.
“It is about the opportunity this (refinery) has provided for all the youth and young people of our country. It is about the fact we can say to them the work these three men – Mr. President, Alhaji Dangote, and our incoming president have done and will continue to do.
“It is about our future. It is about providing an opportunity for the youth because over 150,000 direct and indirect jobs that will be created are for our youths; young leaders that are in their 20s and their 30s for them to believe that indeed Nigerian is a place for them. Nigeria considers them as an important and veritable tool in developing and ensuring the very best.
“I want to also thank our President-elect who propelled a vision of what we are enjoying today. As governor and as Lagosian, he was the main architect of the modern history of the trajectory of Lagos and we are hopeful and praying that when he comes in as president, all of those additional vision that he has will come to reality.”
Governor Sanwo-Olu, who was part of the birth of the Lekki free zone in 2006 during the tenure of Tinubu as Governor of Lagos State, praised the host communities for showing hospitality to investors in the area.
“I want to use this opportunity to thank our host community. This community has been the host to several firsts in our country and I want to thank all of them; from the traditional rulers to all of the indigenous citizens that have continued to reflect the true spirit of Lagos to be able to show hospitality and accommodation in everything that we are about,” he said.
Governor Sanwo-Olu also commended President Muhammadu Buhari’s eight years in office, saying the people of Lagos State are proud of what the President has done for Nigeria.
He said: “You (President) have spent 2,915 days out of 2,922 days that you have. Mr. President, you have spent 99.98 percent of your time. Mr President history will certainly judge you well. We in Lagos are happy. This is your third trip to the Lekki Free Zone in less than a year.
“We are proud of you. We are indeed excited that you have thrown everything you have into it and as you bow down, I might not have the opportunity of holding a microphone again, I want to say to you, that on behalf of Lagos State, we are truly proud of the things that you have done for us in this country.”
Speaking earlier, Dangote commended Lagos State Government under the leadership of Governor Sanwo-Olu for providing an enabling environment for private sector growth, particularly the Dangote Refinery.
He said: “Lagos State Government has been exceptionally remarkable in their efforts toward the completion of this project.
“The Lagos State Government under the leadership of Governor Babajide Sanwo-Olu has provided an enabling environment for private sector growth in the state and this project. It has allowed us to invest over $30 billion in different sectors of the industry.”
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