AFR Business Media

AFR Business Media

Ad example

AFR Business

Seeking investors, NNPCL courts South Korea’s Daewoo

by

The Nigerian National Petroleum Company Limited has held talks with a South Korean consortium led by Daewoo E & C on the development of gas projects in Nigeria.

The Group Chief Executive Officer of NNPCL, Mele Kyari, led the company’s team to the discussions which held in Seoul, South Korea on Monday.

The talks were aimed at deepening NNPCL’s drive to tap into the nation’s vast gas resources to be a supplier of clean and affordable energy to the global market.

South Korea is a major destination for Liquefied Natural Gas exports and the consortium, in collaboration with the Korean Export-Import bank, has expressed interest in advancing discussions on investing in greenfield and other gas development opportunities.

The talks will pave way for the execution of a Memorandum of Understanding (MoU) that will unlock strategic foreign direct investment in line with the President Bola Ahmed Tinubu administration’s policy of making Nigeria a prime destination for global investors.

Kyari has also congratulated Temile Development Company, an indigenous player in the gas sector, on the commissioning of its 23,000 cubic meters ultra-modern Liquefied Petroleum Gas (LPG) Carrier in Ulsan, South Korea, today.

According to the GCEO, the vessel named, Alfred Temile 10, represents a significant stride towards deepening the utilization of gas in-country and growing gas revenues.

“It is great that Temile Development Company is able to complete the construction of the 23kt LPG vessel. This will go a long way in improving access to LPG in the domestic market and provide cleaner fuel in our country. Nigeria’s objective is to ensure that everyone has access to clean energy and particularly walk away from bio-mass as a source of energy. We know this is good and that is why we will continue to support it.

He disclosed that NNPC Ltd, alongside its partner West Africa Gas Ltd (WAGL), was building its own vessels which will boost LPG supply in Nigeria with a view to saturating the market.

CBN to support Special Economic Zones

by

The Central Bank of Nigeria (CBN) says it will continue to support the Federal Government to implement an investment promotion strategy to facilitate investment flow into the economy, The CBN Governor, Mr Olayemi Cardoso, said this at a two-day Special Economic Zones (SEZs) Annual Meeting on Wednesday in Lagos.

The theme of the meeting was: “Unlocking Opportunities: Harnessing the Power of Nigeria’s Special Economic Zones Scheme.” Cardoso said the special economic zones were significant to the actualisation of President Bola Tinubu’s economic vision of a $1 trillion economy by 2026.

He said CBN’s mission of ensuring monetary policy and financial system stability was a catalyst for inclusive growth and sustainable economic development critical in ensuring the continued success of the zones.

According to him, the recent efforts geared towards stabilising the exchange rate will assist in attracting foreign direct investment necessary to enhance the development of the country’s Special Economic Zones. Cardoso represented by Dr Kalu Oji, the Deputy Director, Trade and Exchange Department, CBN, said the bank was aware of the challenges faced by the SEZs.

He pledged to tackle the challenges to enable them to attract more funds and job opportunities for Nigerians. Also, Alhaji Bamanga Jada, Managing Director of Oil and Gas Free Zones Authority, described the Economic Zones Scheme as a globally recognised instrument used by policymakers to facilitate, attract and scale up long-term domestic and cross-border investments.

Jada added that it was used to promote and enhance industrialisation, export-oriented investment, diversification, and job creation in most fast-growing economies around the world.

“There is convincing evidence in Nigeria today that the scheme has recorded remarkable progress despite the relatively negative economic climate and the enormous challenges that confront the operators and licensees.

“In specific terms, the Oil and Gas Free Zones Authority, despite the challenges mentioned, has attracted over $24 billion in investment. The Authority has currently more than 100 efficient licensed companies in the oil and gas free zones under the Authority’s regulation,” he said.

He noted that the result was achieved through the combined efforts and collaboration of the Federal Ministry of Industry, Trade and Investment; Nigeria Custom Service (NCS); Federal Inland Revenue Service, and other stakeholders.

Also, Mr Nabil Saleh, Chairman of Nigeria Economic Zones Association, said globally, economic free trade zones have helped many countries such as Morocco, China, and Singapore to boost their manufacturing firms and other sectors.

“In Nigeria, the Special Economic Zones have not done badly. It has generated many direct and indirect jobs to the country, despite the challenges we are going through. Naira Steadies as Banks Issue Update on FX Purchase

“The Nigeria Free Trade Zones, despite their potential, are still not in the standards we expect yet,” Saleh said. Commenting, Dr Olufemi Ogunyemi, the Chief Executive Officer of Nigeria Export Processing Zones Authority, said the meeting serves as an opportunity to gain an in-depth understanding of the challenges faced by operators in the various free zones.

Ogunyemi said the event would address the challenges and chart a way forward to ensure that the scheme continues to serve as a tool for sustainable economic growth.

“As the theme of the meeting suggests, it has become imperative that our SEZs be re-engineered, bearing in mind the unfolding of the fourth industrial revolution, the heightened focus on sustainable development, and the new wave of global value chains,” he said.

Nigeria targets inreased revenue growth

by

The Minister of Finance, Mr Wale Edun, says the Federal Government is targeting a 77 per cent increase in Internally Generated Revenue (IGR). Edun, who is also the Coordinating Minister of the Economy, said this on Wednesday in Abuja, at the opening of the 2024 Strategic Management Retreat of the Federal Inland Revenue Service (FIRS).

According to Edun, tax plays an integral role in the government’s quest to boost revenue that will help bridge infrastructure deficit, and build social safety nets that will cater to ordinary Nigerians. He commended the management of the FIRS for its commitment towards meeting its set revenue target.

“It is commendable that the FIRS is holding this retreat at the beginning of the year to rub minds on how to increase government revenue.

“We are projecting a 77 per cent increase in IGR. Our revenue as a percentage of Gross Domestic Product (GDP) is low at below 10 per cent. It should be much higher.

“The government needs so much to spend on infrastructure and social services. The idea is to shift from expensive debts to domestic revenue mobilisation,” he said. The Executive Chairman, FIRS, Dr Zacch Adedeji, said that the retreat was a historic moment to unveil the new FIRS organisational structure, with the commitment to revolutionise tax administration within Nigeria.

According to Adedeji, the cornerstone of this paradigm shift is the establishment of a customer-centric organisational structure designed to streamline processes and enhance efficiency in tax operations.

“We are not merely adapting to change; we are leading it. The forthcoming structure set to kick off in February, embodies our dedication to modernise and digitise the tax administration landscape in Nigeria. In our pursuit of a more efficient and contemporary tax administration methodology, we are embracing an integrated tax approach, leveraging technology at every step.

“This approach positions FIRS at the forefront of innovation, ensuring that we meet the evolving needs of our taxpayers in a rapidly changing world,” he said. He said that the structure advocated for a comprehensive approach to taxpayer services, consolidating core functions and support under one umbrella.

“By tailoring our services to specific taxpayer segments, we aim to simplify the taxpayer experience. No more complexities, no more overlapping, just a seamless and user-friendly interaction for every taxpayer.

“In a groundbreaking move, we are shifting away from traditional tax categorisation. Instead of maintaining different departments for distinct tax categories, the new structure formulates taxpayer segments based on thresholds.

“This tailored approach ensures that taxpayers are guided and serviced according to their specific needs, eliminating confusion and redundancy in tax administration. Naira Steadies as Banks Issue Update on FX Purchase

“Behind this transformative initiative are carefully considered considerations detailed in our operations plan. We highlight the rationale behind our integrated approach, the benefits of comprehensive taxpayer services, and the logic behind tailored taxpayer categories, which will be presented to management in the subsequent sessions of this workshop.

“These considerations set the stage for a more responsive, efficient and user-friendly tax administration system,” he said. According to Amina Ado, Coordinating Director, Special Tax Operations Group, the FIRS has a revenue target of N19.4 trillion.

Ado said that the service surpassed its 2023 target of 10.7 trillion and generated N12.37 trillion. She said that the 2024 target of N19.4 trillion can be achieved partly through improved management of large taxpayers and sector contributors.

Israel is losing the war against Hamas – but Netanyahu and his government will never admit it By Paul Rogers

by

The official narrative has been that Hamas is weakened, but in reality the IDF’s doctrine of massive force is failing

Until recently the war narrative on Gaza has been very largely controlled by the Israel Defense Forces (IDF) and the country’s ministry of defence. Israel’s international reputation may have plummeted with the killing of more than 20,000 Palestinians, the wounding of more than 50,000 and the destruction of much of Gaza, but the IDF could still sell a plausible narrative of a severely weakened Hamas, even claiming that the war in northern Gaza was largely complete, and success in southern Gaza would follow before too long.

The narrative was helped by severe difficulties for the few journalists still operating in Gaza, including the risk to their personal safety, while the international press corps was stuck in Jerusalem and dependent on IDF sources for much of their information.

That changed as a different picture began to emerge. First there was a lack of evidence to support the IDF’s claim of a Hamas headquarters under al-Shifa hospital, then the IDF could not identify the location of the Israeli hostages, despite having some of the world’s most advanced intelligence.

Very recently there have been two further incidents. On 12 December, there was a skilful triple ambush staged by Hamas paramilitaries in a part of Gaza supposedly controlled by Israeli forces. An IDF unit was ambushed and took casualties. Further troops were sent to aid that unit, and they were then ambushed, as were reinforcements.

Ten IDF soldiers were reported killed and other seriously wounded, but it was their seniority that counted, including as it did a colonel and three majors from the elite Golani Brigade. That Hamas, supposedly decimated and with thousands of troops already killed, could mount such an operation anywhere in Gaza, let alone a district reportedly already under IDF control, should raise doubts about the idea that Israel is making substantial progress in the war.

A further indication came a few days later, when three Israeli hostages succeeded in getting away from their captors, only to be killed by IDF soldiers, even though shirtless and carrying a white flag. What has since made that worse, and is causing considerable anger in Israel, is that calls from the hostages were picked up by an audio-equipped IDF search-dog five days before they were killed.

There are other, wider indications of the IDF’s problems. Official casualty figures have shown more than 460 military personnel killed in Gaza, Israel and the occupied West Bank and about 1,900 wounded. But other sources suggest far greater numbers of wounded. Ten days ago, Israel’s leading daily, Yedioth Ahronoth, published information obtained from the ministry of defence’s rehabilitation department. This put casualty numbers at more than 5,000, with 58% of them classed as serious and more than 2,000 officially recognised as disabled. There have also been a number of friendly fire casualties, with the Times of Israel reporting 20 out of 105 deaths due to such fire or accidents during fighting.

Overall, the IDF is still following the well-rehearsed Dahiya doctrine of massive force in responding to irregular war, causing extensive social and economic damage, undermining the will of the insurgents to fight while deterring future threats to Israel’s security. But it is going badly wrong. Criticism is coming from unexpected quarters, including from the former UK defence minister, Ben Wallace, who has warned of an impact lasting 50 years. Even the Biden administration is becoming thoroughly uneasy at what is unfolding, yet Benjamin Netanyahu and the war cabinet are determined to continue for as long as they can.

It is worth recognising why. The 7 October attacks and the brutality involved struck Israel’s assumption of security to the core, which means that the great majority of Israeli Jews have so far continued to support Netanyahu’s response. Even that, though, is fraying and is made worse by the killing of the three hostages by IDF troops.

An effect of all this is that the IDF commanders are coming under huge pressure to succeed, and will go as far as the war cabinet will allow. Many of those commanders are highly intelligent if inevitably single-minded people, and will now know that for all Netanyahu’s rhetoric, Hamas, or at least Hamas’s ideas, cannot be defeated by military force. They also know that while talks are stalling, pressure from the families of hostages may soon result in another humanitarian pause. Therefore, their aim will be to damage Hamas as much as they can, as quickly as they can, while they can, whatever the cost to Palestinians. For evidence of this approach, witness this week’s intense air raids.

What makes that possible is Netanyahu’s dependence on an extremist minority of religious fundamentalists and trenchant Zionists in his government. They would not have anything like the wider support in Israel were it not for the tragedy of 7 October, yet they are doing more and more harm to Israel’s long-term security. Not only does Israel risk becoming a pariah state, even among its allies, but it will also fuel a generation of radical opposition from a reconstituted Hamas or its inevitable successor.

It needs saving from itself, but that will depend, more than anything, on Joe Biden and the people around him. Perhaps pushed on by the rapidly changing public mood in western Europe, they must recognise their role in bringing an immediate end to this conflict.

Paul Rogers is emeritus professor of peace studies at Bradford University and an honorary fellow at the Joint Service Command and Staff College
Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here.

In Full Embrace of Capitalism, Nigeria’s Leader Says He’ll Remove “Anti-Investment” Barriers

by

President Bola Tinubu has assured the international investment community that his administration would ensure that Nigeria remains a top-level destination for offshore and onshore investments.

Receiving the group chairman and CEO of Total Energies Worldwide, Patrick Pouyanne, on Monday in Abuja, the President reiterated the federal government’s commitment to removing all anti-investment impediments in the country.

A statement by Presidential spokesperson Ajuri Ngelale quoted Mr Tinubu as saying: “We are committed to removing all cobwebs and anti-investment impediments in the oil and gas industry.

“We have a clear path that we are committed to pursuing. We are ready to work with you.”

Mr Tinubu commended Total Energies for its years of exploration and investment in Nigeria’s oil and gas sector, citing the feat as evidence of the company’s commitment and confidence in Nigeria.

The President assured the delegation that his administration was determined to improve the investment climate in Nigeria, emphasizing that the aim of the Petroleum Industry Act (PIA) was to create a favorable investment and work environment.

He reiterated his administration’s commitment to making the necessary efforts for industrial peace, harmony, and development.

“The moment I took over, there was a clear path that we set out to pursue, and we will ensure that Nigeria remains a top-level investment choice in the dynamics of the offshore and onshore sectors.

“We will review troubled areas, fiscally and otherwise, to incentivize gas production in the age of transition to cleaner energy.

“We are ready to make a difference as a government. The good handshake that we have is for partnership and to accelerate and incentivize gas production in pursuit of the energy transition,” he said.

Mr Pouyanne, the global CEO of Total Energies Worldwide, said that Nigeria was “very important” for Total Energies, accounting for 8 to 10 per cent of the company’s worldwide total production and over 18 per cent of its global investment.

“Mr President, we are ready to invest $6 billion in the coming years. We are looking extensively at more deepwater production and gas production opportunities across the terrain.

”We welcome your policies and your personal commitment to ensuring that all required fiscal incentives are provided while security issues are tackled. Everything is here.

“We just need to conclude with the tweaks and changes necessary to unlock the outstanding potential in both oil and gas,” he said.

Mr Pouyanne also highlighted the company’s commitment to maintaining its zero-flaring position in Nigeria to both heal the environment and monetise all available gas resources in support of Nigeria’s energy transition plan.