…As diesel, gas, prices may fall over VAT suspension
By Charles Ebi
Nigerians may witness another round of fuel scarcity less than a month after the price of Premium Motor Spirit ,PMS, commonly known as petrol, was increased to about N1,000 per litre in Lagos and other cities across the country.
AljazirahNigeria yesterday observed that a few petrol stations dispensing the product to motorists are beginning to experience queues.
At one of the petrol stations in Alimosho area in Lagos State, fuel was sold to customers at N1,020 per litre, while an AP petrol station around the Okunola area of Egbeda had several vehicles jostling to purchase fuel.
It was a similar experience on Wednesday at the NNPC Retail Station in the Cele area of Egbeda, with queues extending outside the facility.
It was gathered that independent marketers are unable to access an online portal of the Nigerian National Petroleum Company ,NNPC, designed for the purchase of petrol.
Reports making the rounds showed that this platform had been shut, with marketers still awaiting over 90 million litres of petrol from the NNPCL.
But the NNPCL, through its spokesman, Mr Olufemi Soneye, claimed that the portal was shut down because “We have a significant backlog to address. The closure is intended to prevent us from holding marketers’ funds for an extended period”, promising that it will be “reopened once the backlog has been sufficiently reduced. We are working to address it as soon as possible”.
This development is coming at a time when Nigerians expect the country to say goodbye to the scarcity of products because of the commencement of the petrol supply from the Dangote Refinery in Lagos.
Recall that on September 15, 2024, the facility, which can refine 650,000 barrels of crude oil per day in Lagos, began to supply the NNPCL with petrol amid issues concerning the currency to be used to sell crude oil to the refinery.
It was later agreed that Dangote Refinery would begin to buy the commodity from the NNPC in Naira and not in United States Dollars from Monday, October 1, 2024, to enable it to sell petrol at a cheaper rate.
Meanwhile, the Federal government has introduced new fiscal incentives to boost foreign investments in Nigeria’s oil and gas sector.
The two incentives were unveiled by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, according to a statement on Wednesday.
In the notice signed by the Director of Information and Public Relations in the Finance Ministry, Mr Mohammed Manga, the incentives are aimed at revitalising the country’s energy climate.
It also announced that the importation of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment would no longer require value-added tax payment.
It said the initiative would position Nigeria’s deep offshore basin as a premier destination for global oil and gas investments, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.
This policy directive arrives alongside new divestment plans from ExxonMobil and Seplat, which President Bola Tinubu said would receive ministerial approval in the coming days.
The statement read, “In its avowed determination towards ensuring a boost in the nation’s upstream and downstream sector, the Federal Government has introduced groundbreaking concessions aimed at revitalising the industry.
“This is just as the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, today unveiled two major fiscal incentives aimed at revitalising Nigeria’s oil and gas sector: Value Added Tax Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production, in accordance with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024″.
“The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment.
“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources”.
It explained that the notice of tax incentives for deep offshore oil & gas production provides new tax reliefs for deep offshore projects, stressing that, “This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments”.
The Ministry said these fiscal incentives reflect the administration’s steadfast commitment to promoting sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.
The statement added, “These reforms are part of a broader series of investment-driven policy initiatives championed by President Bola Tinubu, in line with Policy Directives 40-42.
“They reflect the administration’s strong commitment to fostering sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production.
“With these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market.
“These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians”, the statement concluded
