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FEC Okays $64m for Escravos Power Supply

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  • FEC Okays $64m for Escravos Power Supply

The Federal Executive Council on Wednesday approved the sum of $64.2m for a power supply project to Escravos communities in Delta State.

The FEC meeting, presided over by Vice-President Yemi Osinbajo, also approved N612m as revised estimated total cost for the completion of the Cham Dam and development of 100 hectares of irrigation scheme in Balanga Local Government Area of Gombe State.

Osinbajo chaired the meeting in the absence of President Muhammadu Buhari, who is currently attending the 73rd United Nations General Assembly in New York, the United States of America.

Speaking with journalists on some of the outcomes of the meeting, the Minister of State for Petroleum Resources, Ibe Kachikwu, said if executed, the Escravos power project would put an end to the N18m being spent monthly by the Nigerian National Petroleum Corporation to provide power to the area.

He gave an assurance that the project would provide electricity for the communities within four or five years and become a permanent structure.

He stated, “What we took to the council today was to seek approval for the award of a contract for the supply of power to the contiguous communities around the Escravos areas. We had approval earlier to do the Escravos to Lagos pipeline system.

“It was then stalled following protests by the community over the plan to move 50 per cent of the gas to provide power to other areas when the communities did not have power.

“Today, council approved $64.2m to fund two lots. One is to build the power plant to supply power itself and the other to distribute the power to all the affected communities.

“Council granted approval in two lots. With this, we believe power will now be provided for the communities within four or five years, and become a permanent structure.”

Kachikwu said the only way the government had been able to maintain peace in the communities “was to use generators to supply power, which had been costing the NNPC about N18m every month to manage.”

Also speaking, the Minister of Water Resources, Suleiman Adamu, said the Cham Dam and development of the irrigation scheme in Balanga Local Government Area of Gombe State was initially awarded in 2011.

He said the project was being executed by the Upper Benue River Basin Development Authority.

“The dam was originally constructed in 1982 but after some unprecedented rainfall and probably due to inadequate provision of spill ways, the dam was breached about 10 years ago and therefore, it has to be reconstructed, and this is why we came for this augmentation of N612m,” Adamu stated.

He said government was making efforts to complete the inherited project, which started in 2011 and had suffered from inadequate supply of funds.

Adamu added, “Work stopped at about 65 per completion, but we need to complete it; so, we renegotiated the project with the contractors. We therefore brought request for augmentation for N612m.

“The project is being handled by the Upper Benue River Basin Development Authority. It was originally constructed in 1982. It had to be reconstructed. The original contract cost was N832m in 2011.”

On the flooding problem ravaging some parts of the country, Adamu said, “The water level in Lokoja has dropped by six centimetres and the water level in the Lagdo dam in Cameroon is also going down.

“So, we think that the worst is over, unless if any unforeseen incident occurs now. We should be able to see most of the flood waters go down from now on.”

The Senior Special Assistant to the President on Media and Publicity, Garba Shehu, also told journalists that FEC approved the sum of N500m for facility maintenance service for the Economic and Financial Crimes Commission’s new 10-storey building in Abuja.

Shehu added that the sum of N459m was also approved for the anti-graft agency for procurement of 700 computers, 100 laptops and 25 laser printers.

According to him, the FEC also approved the purchase of 15 utility vehicles for the commission.

Shehu noted that EFCC was expanding and needed the vehicles for operations, which he said would be bought from local assembly plants.

The approvals were said to have followed the commission’s requests in three separate memos.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Seplat Petroleum Pays US$564.165 Million to Federal Government in 2020

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Seplat Petroleum, an indigenous Nigerian upstream exploration and production company, announced it paid a total sum of US$564.165 million to the Federal Government in 2020.

In the report on payments made available to the Nigerian Stock Exchange and seen by Investors King, Seplat Petroleum paid US$389.576 million to the Nigerian National Petroleum Corporation (NNPC) as production entitlement in 2020.

Production entitlement is the government’s share of production in the period under review from projects operated by Seplat.

This comprises crude oil and gas attributable to the Nigerian government by virtue of its participation as an equity holder in projects within its sovereign jurisdiction (Nigeria).

Also, Seplat paid US$130.009 million to the Department of Petroleum Resources in 2020. A breakdown of the amount showed US$111.633 million was paid as royalties while US$18.376 million was paid as fees.

Similarly, US$579,361 was paid as a fee to the Nigeria Export Supervision Scheme.

The energy company made another payment of US$17.935 million in fee for 2020.

While the Nigerian Content Development and Monitoring Board received US$4.826 million in fee from Seplat in 2020.

Seplat paid US$21.239 million in taxes to the Federal Inland Revenue Service in 2020.

Therefore, Seplat Petroleum paid a total sum of US$564.165 million to the Federal Government in the 2020 financial year. See the details below.

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Economy

FIRS Sets N5.9 Trillion Revenue Target for 2021

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FIRS to Generate N5.9 Trillion Revenue  in 2021

Mohammed Nami, the Chairman of Federal Inland Revenue Service, FIRS, on Friday said the agency is projecting total revenue of N5.9 trillion for the 2021 fiscal year.

Nami stated this while meeting with the House of Representatives Committee on Finance led by Hon. James Falake on the Service’s 2021 budget defence of its proposed Revenue and Expenditure Estimates.

According to the Chairman, N4.26 trillion and N1.64 trillion were expected to come from non-oil and oil components, respectively.

However, Nami put the cost of collecting the projected revenue at N289.25 billion or 7 percent of the proposed total revenue for the year, higher than the N180.76 billion spent in 2020 to fund the three operational expenditure heads for the year.

He said: “Out of the proposed expenditure of N289.25 billion across the three expenditure heads, the sum of N147.08 billion and N94.97 billion are to be expended on Personnel and Overhead Costs against 2020 budgeted sum of N97.36 billion and N43.64 billion respectively. Also, the sum of N47.19 billion is estimated to be expended on capital items against the budgeted sum of N27.80 billion in 2020. The sum is to cater for on-going and new projects for effective revenue drive.

Speaking on while the agency failed to meet its 2020 target, Nami said “There’s lockdown effect on businesses, implementation directive also for us to study, research best practices on tax administration which involves travelling to overseas and we also have to expand offices and create offices more at rural areas to get closer to the taxpayers, we pay rent for those offices and this could be the reason why all these things went up.

“And if you have more staff surely, their salary will go up, taxes that you’re going to pay on their behalf will go up, the National Housing Fund contribution, PENCOM contribution will go up. Those promoted you have to implement a new salary regime for them. There’s also the issue of inflation and exchange rate differential”, he said.

 

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Economy

Gov Emmanuel Attracts $1.4b Fertilizer Plant to Akwa Ibom

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The Governor of Akwa Ibom State, Mr. Udom Emmanuel has signed an agreement for the citing of a multi billion fertilizer plant in his State.

Governor Emmanuel was part of a Nigerian delegation led by the Minister of State for Petroleum Resources, Chief Timipre Sylva, that visited Morocco to set out the next steps of the $1.4 Bln fertilizer production plant project launched in June 2018.

The agreement between the OCP Africa, the Nigerian Sovereign Investment Authority and the Akwa Ibom State Government will birth one of the biggest investments in the fertilizer production industry worldwide.

The signing ceremony took place at the Mohammed VI Polytechnic University (UMP6).

Mr. Emmanuel signed one of the agreements of the partnership, which covers a memorandum of understanding between OCP Africa, the Akwa Ibom State in Nigeria and the NSIA on land acquisition, administrative facilitation, and common agricultural development projects in the Akwa Ibom State.

Speaking while signing the agreement, Governor Emmanuel said, “Our state is receptive to investments and we are prepared to offer the necessary support to make the project a reality.

“With a site that is suitably located to enable operational logistics and an abundance of gas resources, all that is left is for the parties to accelerate the project development process”, Mr. Udom said.

The agreement reached between the Nigerian Government and the OCP further links OCP, Mobil Producing Nigeria (MPN), the NNPC, the Gas Aggregation Company Nigeria (GACN), and the NSIA.

The two partners agreed to strengthen further their solid partnership leveraging Nigerian gas and the Moroccan phosphate.

This project will lead to a multipurpose industrial platform in Nigeria, which will use Nigerian gas and Moroccan phosphate to produce 750,000 tons of ammonia and 1 million tons of phosphate fertilizers annually by 2025.

The visit of the Nigerian delegation to Morocco takes place within the frame of the partnership sealed between OCP Group and the Nigerian Government to support and develop Nigeria’s agriculture industry.

Following the success of the first phase of Nigeria‘s Presidential Fertilizer Initiative (PFI) and the progress of the fertilizer production plant project launched in 2018 by OCP and NSIA, the Moroccan phosphates group and the Nigerian government delegation have agreed on the next steps of their joint project which is rapidly taking shape.

Several cooperation agreements were inked on Tuesday at the Mohammed VI Polytechnic University (UM6P) by OCP Africa and the Nigerian delegation. Through these deals, OCP reaffirms its unwavering support of agricultural development initiatives in Nigeria including PFI.

OCP Africa and the NSIA have agreed, inter alia, to set up a joint venture which will oversee the development of the industrial platform that will produce ammonia and fertilizers in Nigeria.

The OCP has also pledged to supply Nigerian famers with quality fertilizers adapted to the needs of their soil at competitive prices and produced locally.

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