Business
NCDMB Assures Samsung Of Support On Oil/gas Industry Projects
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola- Ogbe, has assured Samsung Heavy Industries Nigeria (SHIN) of support in it quest to execute oil and gas in the Niger Delta region.
Ogbe gave the assurance, last Friday, when he received a delegation from the company, led by its new Managing Director, Mr. Jin Lee.
A statement from the Corporate Communications/Zonal Coordination Department of the NCDMB quoted the Board’s Executive Secretary as having welcomed the new Managing Director to Nigeria, assuring him of the Board’s support, in line with its mandate to encourage domiciliation of critical oil and gas industry’s operations and patronage of established capacities.
He charged SHIN to work with indigenous service companies, build their capacities and maximize job creation in the economy.
Speaking further, he promised to recommend SHIN to the African Petroleum Producers Organisation (APPO) and other international groups, in furtherance of the Nigerian Content 10-year strategic roadmap’s Sectorial and Regional linkage enabler, which places emphasis on the creation of international opportunities for Nigerian companies that have built outstanding capacities.
The NCDMB Scribe also promised that the Board would visit SHIN’s facilities, in company of representatives of international and indigenous operating oil and gas companies, with a view to accessing their capacities and mobilizing patronage.
The meeting was held at the Board’s Lagos liaison office and discussions focused on the firm’s in-country capacities, which include heavy fabrication and FPSO integration quayside at the SHI MCI free zone, Takwa Bay, Lagos.
The company sought the Board’s assistance to attract new projects to the facility, highlighting their experience to execute major oil and gas projects and pledging support to the Federal Government’s mantra of fast tracking crude oil production and creating employment opportunities for Nigerians.
The SHIN team reminded the Executive Secretary that their facility executed key scopes in-country aspects of Total Energies’ Egina deepwater project, including the partial integration of the Egina FPSO in 2017 and 2018.
The Tide learnt that Egina deep water project remains a reference point for local content accomplishment in the Nigerian oil and gas industry till date.
Lee expressed regret that the facility had not carried out major projects since the onset of COVID-19 pandemic in 2020, when oil industry operations were significantly impacted.
The SHIN officials also requested the Board to introduce their company to the APPO and other international clientele.
According to the firm, the introduction would enable them market their capabilities, attract international businesses, thereby establish Nigeria as a hub for exporting such services in Africa.
The company also announced plans to diversify into the renewable energy space, and contribute towards providing solutions to Nigeria’s energy challenges, saying they intend to manufacture floating foundations and associated assets for wind farms, and other renewable projects.
Ariwera Ibibo-Howells, Yenagoa
Continue Reading
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has said the Port Harcourt Refining Company (PHRC) remains operational and continues to produce on-spec refined petroleum products.
Chief Corporate Communications Officer of NNPC Ltd., Olufemi Soneye, disclosed this in a statement on Wednesday.
Je said: “The Nigerian National Petroleum Company Limited (NNPC Ltd.) wishes to clarify that despite a minor incident at a section of the Port Harcourt Refining Company (PHRC) earlier today, the plant remains operational and continues to produce on-spec refined petroleum products.
“NNPC Ltd assures the public that there is no cause for concern, as all sections of the recently rehabilitated plant are in full operation.”
The company had earlier dismissed reports of an explosion at the Port Harcourt Refining Company in Rivers State. The state-oil company described the report as ‘false’, noting that what occurred at the refinery was a flare incident, which has been contained fully.
Last November, NNPC Ltd. said the Port Harcourt refinery had commenced production after a long period of rehabilitation.
It said the refinery began truck loading of petroleum products on Tuesday, November 26, 2024.
Business
Revenue Mgt: NEITI Wants Improved Fiscal Discipline, Transparency … As FAAC Disbursement Hits Record N15.26trn
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for improved fiscal discipline and enhanced transparency in revenue management at all levels of government.
The call is part of recommendations by NEITI in its Federation Accounts Allocation Committee (FAAC) Quarterly Review, which stated that the FAAC disbursed a record N15.26 trillion to the federal, state, and local governments in 2024, reflecting a 43 per cent increase from the previous year.
The FAAC report said FAAC the surge underscores the impact of key fiscal reforms, including fuel subsidy removal and exchange rate adjustments, which significantly boosted oil revenue remittances.
The report, Presented by the Executive Secretary of NEITI, Ogbonnaya Orji, the report attributed the increased disbursements to these policy changes, which reshaped the country’s revenue landscape.
According to a statement by the Acting Director, Communication and Stakeholders Management, Obiageli Onuorah, it assessed the fiscal sustainability of government borrowing and the implications for oil-producing states benefiting from the 13 per cent derivation fund.
A breakdown of the N15.26trillion distributed among the three tiers of government shows that the Federal Government received N4.95 trillion, while state governments collectively received N5.81 trillion, and Local government allocations amounted to N3.77 trillion.
State governments recorded the highest percentage increase, with allocations rising 62 per cent from N3.58 trillion in 2023.
Local government allocations increased by 47 per cent, while the federal government’s share rose by 24 per cent, up from N3.99 trillion in the previous year.
The fourth quarter of 2024 saw the highest quarterly disbursement on record, reaching N4.214 trillion, reflecting the impact of sustained revenue growth and fiscal policy reforms.
FAAC attributed key drivers of the record disbursements to major fiscal reforms implemented by the Federal Government.
It said another factor is the removal of fuel subsidies in mid-2023 eliminated deductions that previously reduced distributable oil revenue, leading to increased remittances to the federation account.
It said exchange rate liberalisation also played a crucial role, as the depreciation of the naira boosted naira-denominated mineral revenues by over 400 per cent.
FAAC further said higher global crude oil prices and improved domestic production contributed to increased earnings from the petroleum sector.
Despite these gains, however, the report warned of inflationary pressures, rising debt servicing costs, and fiscal uncertainty for states heavily reliant on oil earnings.
NEITI emphasised the need for proactive measures to stabilise the exchange rate, curb inflation, and strengthen non-oil revenue sources to ensure long-term economic stability.
State-by-State analysis of the disbursement shows that Lagos State received the highest FAAC allocation in 2024, totalling N531.1 billion, followed by Delta with N450.4 billion and Rivers with N349.9 billion.
Akwa Ibom and Bayelsa States also ranked among the top recipients, with N329.2 billion and N270.4 billion, respectively.
Nasarawa received the lowest allocation of N108.3 billion, followed by Ebonyi with N110 billion and Ekiti with N111.9 billion.
Six states — Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano — each received over N200 billion, collectively, accounting for 33 per cent of total state allocations.
In contrast, the six lowest-receiving states accounted for only 11.5 per cent.
The report highlighted the widening fiscal disparity between states, noting that Lagos, Delta, Rivers, and Akwa Ibom collectively received N1.49 trillion, a sum more than three times the total allocation of the bottom four states — Kwara, Ekiti, Ebonyi, and Nasarawa — which stood at N442.4 billion.
In terms of debt deductions and fiscal sustainability, debt servicing deductions from state allocations amounted to N800 billion, representing 12.3 per cent of total state disbursements.
Lagos State recorded the highest debt deductions, with N164.7 billion, accounting for over 20 per cent of total deductions.
Kaduna State followed with N51.2 billion, while Rivers and Bauchi also saw significant deductions of N38.6 billion and N37.2 billion, respectively.
The report raised concerns over the debt-to-revenue ratios of many states, particularly those with high debt burdens but lower revenue allocations.
NEITI urged governments to adopt conservative revenue projections to prevent budget shortfalls and improve fiscal management to ensure debt sustainability.
In making other recommendations, NEITI urged authorities to increase savings in the Excess Crude Account (ECA) to mitigate future revenue shocks and to strengthen non-oil revenue generation to reduce dependence on FAAC allocations.
The report also recommended measures to stabilise the exchange rate, curb inflation, and ensure conservative budgeting for crude oil production and pricing.
It further stressed the need for governments to prioritise job creation, poverty reduction, and economic stability while maintaining fiscal transparency in line with Open Government Partnership (OGP) and Extractive Industries Transparency Initiative (EITI) commitments.
NEITI reiterated the importance of leveraging its findings to hold all levels of government accountable for the prudent management of public funds, particularly revenues generated from the extractive industries.
The Trans Niger Pipeline in Bodo Community, Gokana Local Government Area of Rivers State belonging to Renaissance Africa Energy Holdings has resumed operations after a fire incident on Monday.
A company source, which spoke to The Tide’s source on condition of anonymity, said the pipeline was tested and it passed the integrity, saying there was no blast on the facility.
According to the source, “The pipeline is back in operation. First of all, we had no blasts or explosions in our facilities. We had an unauthorised entry from the operations. Then we sent a team there. The team saw that the site had been accessed.
“We got a call, and a team went out and saw that there were attempts at excavation and arson. But of course, the fire had burnt out. They did an inspection, and there was an adjacent pipeline.
“They tested that and it passed the integrity test. I think the operations went through that adjacent pipeline. Operations are ongoing as we speak”.
The TNP transports 450,000 barrels of crude oil per day to the Bonny Export Terminal, using a pipeline network.
Renaissance Africa Energy Holdings just completed the landmark transaction between itself and Shell to acquire the entire equity holding in the Shell Petroleum Development Company of Nigeria.
Reports of an explosion on the pipeline were one of the reasons President Bola Tinubu declared a state of emergency in Rivers State.
Confirming the incident on Tuesday, the Rivers State Police Public Relations Officer, Grace Iringe-Koko, said the fire was noticed on Monday night during a security patrol.
According to her, Renaissance was immediately altered and the company shut down the affected pipeline and activated safety measures.
While saying there was no further threat to residents or the environment, the PPRO revealed that two individuals have been arrested for questioning as part of an ongoing investigation into the cause of the incident.
-
Business4 days agoW’Bank Likely To Grant Nigeria’s $1.1bn Loan Request
-
Rivers4 days agoMOSIEND Urges RSHA To Reconcile Differences With Gov
-
Rivers4 hours ago
NAFDAC’s Greenbook App’ll Curb Fake Drugs, Substandard Products’
-
World3 hours ago
W/Cup Qualifiers: Eswatini Hold Cameroon To Shock Draw
-
Maritime4 days agoNAFDAC Uncovers $1.4m Fraud Syndicate
-
News4 days agoTinubu’s Wife Wins ‘Woman Of The Year’ Award
-
News3 hours ago
NSPRI Empowers Agri-preneurs For Independence, Postharvest Loss Reduction
-
Entertainment2 hours ago
Late Mohbad’s Brother, Adura Arrested