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Kachikwu unveils plans to mitigate effect of fall in crude oil price

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Kachikwu unveils plans to mitigate effect of fall in crude oil price

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has allayed fears that the marginal fall in the prices of crude oil would impact negatively on the nation’s economy in the short-term.

Speaking in Abuja yesterday on the state of refineries and the possible impact of the fall in oil prices on the economy, he ruled out absolute sale of the three refineries in Warri, Port Harcourt and Kaduna.

He argued that the slight fall in crude oil prices was not an indication of failure of the measures put in place to prevent supply glut.

His words: “I think the Organisation of Oil Exporting Countries (OPEC) has taken some major steps to ensure that there is supply glut. The steps taken to mitigate the effect of shale oil are not large enough to also check its glut.

“I am worried that the prices are falling a bit. But not too worried because we know that the downward movement in the price of oil is momentary.”

Kachikwu, who blamed market instability on speculations by marketers, said the trend was a sign for Nigeria and other oil producing countries to begin to refine their crude oil in their countries rather than continue exporting crude.

“The inconsistency we are witnessing is caused largely by speculations by marketers and not that the fundamentals are solely responsible. OPEC members and non-members like Russia are working closely to ensure that that excess supply of shale is checkmated and the price should rebound very soon.”

“The Nigerian economy is not under any threat for now. The future is to focus on its refineries and increase capacity to refine crude oil within the country. That is what Nigeria should do, going forward,” he added.

Kachikwu also hinted that the country required about $1.4 trillion to repair the three refineries just as he ruled out total sale of the assets.

He said that Nigeria’s efforts were already yielding results in its search for financiers for the refineries but added that no financier has been selected just yet.

Culled from the Guardian

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Economy

Crash in global crude necessitates passage of PIB says Sylva

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Crash in global crude necessitates passage of PIB says Sylva

**it will bring Nation back to reality- Kyari

The minister of State for Petroleum Resources Timipre Sylva has indicated that the volatility of global crude prices which crashed into negativity at the height of covid 19, has underscored the urgency that necessiates the passing of the PIB.
Speaking at the Public hearing for the Petroleum Induatry Bill (PIB) 2020 the minister said it will go a long way to overhauling the legal and regulatory framework of the Nigerian petroleum industry and clarifies the rules of engagement for the monetisation of the country’s valuable hydrocarbon resources.
He said the proliferation of the country’s funding hydrocarbons that make it seem available for exploitation have also impacted on demand for crude as well as the revenue and profits accruable.
He said the necessity for reform of the Nigeria petroleum industry to make it conform to the current realities to proper position it for the challenges of the future has made it imperative for the effort to pass the bill to be sustained and finalised.
“This day has been anticipated for a very long time given the checkered history of the various attempt to pass the bill and has been made possible by the effort of the different stakeholders within the executive and legislature who have worked with patriotic and selfless zeal to make thi happen.
“I want to place on record, my gratitude to President Muhammadu Buhari for his immense support and guidance which culminated into transmission of the PIB to the National Assembly on Sept. 28, 2020.
“This bill was tabled before the 9th assembly on the 30th September and since then, the distinguished lawmakers have worked assiduously on it and this has accounted for the good purpose that had brought us to this public hearing.
“Distinguished senators have also promised to consider and pass the bill into law expeditiously and I want to place on record the  sincere gratitude of the federal government and the good people of Nigeria who will benefit from the passing of the PIB by the senators.”
He said the world had changed significantly since the first effort of reform was made in the year 2000 to pass the PIB.
“The Nigerian petroleum industry faces  challenges arising not from the domestic environment but from the wider international environment,
“Apart from the current covid 19 crises which has cost the strongest recession experienced globally since 2019, the industry faces other critical challenges.
According to him,  several nations have announced the intent to comply with the Paris agreement of 2016 and have adopted climate change policies.
The Group managing director, Nigeria National Petroleum Corporation (NNPC) Mele Kyari on his part said the industry does not tolerate uncertainties, adding that when the journey to PIB started in the year 2000, through the oil and  gas reform committee, it was the beginning of the interruption of uncertainties in the industry.
“Since 2000 until this moment, that the industry has not seen significant investment except one particular area, production sharing which we still  have challenges because of  the fiscal uncertainties.
“This industry refused to develop from 2000 till today, we haven’t seen significant development in this industry since 2000 and the reason is very clear.
“The three attempts to make this legislation work that has not succeed but every time you have such situation you have uncertainties.
“We will not find other investors coming as long as we remain a very high cost environment, a very uncertain fiscal environment and with other associated issues that come with it.”
He said, passing the PIB is a necessity so that the Market in Nigeria can become more competitive, compared to where it was 20 years ago.
“PIB is to bring us back to reality that reality is to take advantage of the resources that we have today to enable us develop the midstream which is what is lacking today.”
“It will enable  that we have the possessive facilities and also focusing more on gas development so that this country can make progress.”

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Post COVID-19: FG explores indirect tax, ICT to shore up revenue says Finance minister

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Post COVID-19: FG explores indirect tax, ICT to shore up revenue says Finance minister

The minister of finance, Budget and National Planning Zainab Ahmed has reiterated the Federal Governments determination to explore all possible avenues including indirect taxation such as ICT driven tax to shore up the country’s revenue.
She spoke when the chartered Institute of Taxation of Nigeria (CITN) Abuja and District Society visited on sensitization to mark the tax week.

The minister who spoke through a director in the ministry Fatima Hayatu said because of the experience during the COVID-19 lockdown the tax drive is being redirected to ICT.
“We have all seen from the COVID-19, we were all in Lock down,  but we were using our phones and technology, that is why we are now going to ICT driven tax and we are going to be taxing more of the digital technology.
She said Post COVID-19 indirect taxation is where most of the taxes will be coming from.
“The theme; ‘Tax, Politics and social contract’ is very apt in the present situation, Nigeria needs all the taxes more than before, as a ministry we will give the CITN all the support it needs to carryout it’s basic duties.
Chairman of FCT Internal Revenue Service (IRS) Alhaji Abdullahi Attah said considering the fact that the country is now seriously looking for money and oil is dwindling the next option is taxation.
Speaking through Director Human Resources in FCT IRS Muhammad Jada, he said there is every need to take taxation seriously and ensure that the trust reposed in them is not be betrayed
“It is an important organization and an important week where the trust and the integrity is the key.”

The chairman CITN Abuja district Dr Nwabuzor M. Emeke said they are organising the annual tax week as a week they lay emphasis on tax advocacy and sensitisation.
“This year we have chosen the topic that has to do with tax, politics and Social Contract
What are we trying to say, we are looking at it from two perspectives, and equally encouraging Government to fulfil their own end of the bargain so that when Nigerians see what the Government is doing with the proceeds from tax they would be encouraged to pay taxes.
He said in so doing they CITN Abuja district is organizing a seminar Tuesday at Merit House, where about four eminent professors will speak on issues about taxation. “The issue of tax cannot be over emphasised because we all know what Nigeria is going through in terms of the dwindling oil revenues, so the Government is deploying more efforts on tax issues and that is on your shoulder as FIRS and we as CITN that regulate tax in Nigeria is partnering with you to ensure that you achieve your target that is given to you by the Federal Government.

The chairman of FIRS Muhammed Nami said they attach importance to the Relationship between FIRS and CITN as many directors in FIRS are also members of CITN
Represented by the coordinating director digital support group of the Federal inland Revenue Service Dr. Achek Maidugu he said,
“The CITN is part and parcel of the FIRS, most of us are members with the Abuja and district society.
“FIRS holds CITN in high esteem as critical stakeholder we appreciated and we always identify with CITN.”
He said they have been supporting CITN adding that they will continue the partnership.

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Economy

AEC urges African Govts. to invest in home-made products as post COVID-19 strategy

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AEC urges African Govts. to invest in home-made products as post COVID-19 strategy

By Mustapha Sumaila

The African Economic Congress (AEC) has urged African Governments to invest in home-made products as a means of fast-tracking development as post COVID-19 strategy to recover economy.

The Founder and Chief Executive Officer of AEC, Mrs Nancy Nnaji said this in a statement in Abuja on Monday.

Nnaji said this suggestion was part of recommendations of various speakers
at the just concluded 2nd Edition of the annual conference held recently by AEC.

The meeting had the theme: “Post COVID-19: Africa in the New Economic Order”.

She said the conference had also recommended that Africans should prioritise research as a tool for sustainable development on the continent.

According to her, Africa is advised to move for self-reliance in the coming years, by harnessing and leveraging its abundant resources both human and materials to drive economic transformation.

She said the meeting noted that agricultural sector was key to Africa’s economic transformation and by developing it, abundant resources could be provided to finance the 2063 African union agenda to curb unemployment, food shortage, malnutrition and extreme poverty.

The founder stated that “Africans are also enjoined to be educated on the technical know-how to improve agriculture on the continent.

“Governments must increase the yearly allocated budget for agriculture and promote private sector engagement to avoid inadequate funding.

“To increase the level of value addition of food exports, there must be an investment in innovation and technology around local processing and infrastructure building.

“There is need for digital literacy skills, critical thinking skills, technical skills, soft skills, entrepreneurial skills, and certification programmes should be incorporated into the learning curriculum in all levels of education to produce self-reliant and employable graduates” she added.

Nnaji also added that the conference advised on the need to improve broadband connectivity to support interactive online learning and teaching. (NAN)

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