The Federal government has announced its consideration of the 254 bids from indigenous and foreign companies interested in the sale and purchase of the government’s equity crude under the 2018/2019 crude oil term contracts.
The bids opening exercise was witnessed by representatives of the regulatory agency, the Department of Petroleum Resources, DPR.
Others that attended the event included the Nigeria Extractive Industries Transparency Initiative, NEITI, the Nigerian Content Development and Monitoring Board, NCDMB; and representatives of the civil society and the media.
A statement by the spokesperson of the NNPC, Ndu Ughamadu, at the end of the event, said eventual winners would be selected as licensed off-takers to trade on Nigeria’s equity crude for a 12 months period.
Nigeria’s crude oil allocation is done once every month to only successful companies.
Addressing the prospecting off-takers shortly before the commencement of the bid exercise, the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru, said the exercise was to promote greater participation of Nigerian enterprises, while preserving world-class standards.
Mr. Baru assured that best practices would be adopted in the selection of bidders, as he promised fairness and just treatment in the selection process.
“I wish to remind the general public that the Crude Oil Term Contract is not a Procurement Contract, but a process of selecting partners for the sale and procurement of NNPC Equity crude oil volumes,’’ Mr. Baru said.
The Group General Manager, Crude Oil Marketing Division, Mele Kyari, mentioned some of the conditions potential off-takers under the 2018/2019 crude term contract were asked to meet. The conditions include having a minimum annual turnover of $500 million for 2016 and net worth of $250 million for 2016.
Mr. Kyari said apart from having the 2015 & 2016 audited accounts, aspiring off-takers must equally demonstrate the capacity to establish an irrevocable Letter of Credit, LC subject to contract terms.
On the marketability of Nigeria’s crude in the international market, Mr. Kyari said Europe remained the major destination of Nigerian crude grades, accounting for 36.59 per cent of the total sales, with Asia and the Far East receiving 28.43 per cent.
He said about 16.57 per cent of Nigeria’s crude grades was exported to North America, 13.17 per cent to Africa, 2.84 per cent to South and Central America, while the rest of the world served as beneficiaries of the rest.
The official further stated that the sustained reforms in the marketing and disposal of Nigeria’s equity crude had eliminated the ugly incidents of ‘briefcase’ companies as witnessed in the past.
In 2017, a total 224 firms participated in a similar contract for the 2016/2017 season.
Successful bidders were to join in lifting over 700,000 barrels per day of crude oil by NNPC on Free on Board (FOB) basis.
The 26 Nigerian crude oil grades on offer included Bonny Light, Forcados Blend, EA Blend, Bonga, Qua Iboe Light, Yoho Blend, Erha and Escravos Light. Others are: Pennington Light, Agbami, Brass Blend, Abo, Oyo, Okono Blend, Amenam Blend, Akpo Condensate and Usan. The rest include: Atam Blend, Okwori, Okoro, Ima, Ukpokiti, Obe, Okwuibome, Ebok and Asaratoru.
2020 Finance Bill Exempts Minimum Wage Earners From Tax: Buhari
President Muhammadu Buhari has revealed that the recently proposed 2020 Finance Bill will exempt workers earning the minimum wage from paying tax.
Buhari disclosed this on Monday in a speech delivered virtually by Vice President, Yemi Osinbajo at the opening session of the 26th Nigerian Economic Summit Group Conference themed: “Building Partnerships for Resilience.”
“We are proposing in the new Finance Act that those who earn minimum wage should be exempted from paying income tax,” he was quoted as saying in a statement issued by the Senior Special Assistant to the President on Media and Publicity, Laolu Akande.
“These provisions which complement the tax breaks given to small businesses last year will not only further stimulate the economy but are also a fulfilment of promises made to take steps to help reduce the cost of transportation and the impact of inflation on ordinary Nigerians.”
Nigeria Will Exit Recession By First Quarter Of 2021 – Finance Minister
Minister of Finance, Budget and National Planning, Zainab Ahmed has revealed that Nigeria would emerge from recession in the fourth quarter of this year or by the first quarter of 2021.
Speaking on Monday at the ongoing 26th Nigerian Economic Summit organized by the Nigerian Economic Summit Group and the Federal Ministry of Finance, Budget, and National Planning, Zainab said the current recession would be short-lived.
She blamed COVID-19 for the current recession, saying it followed the pattern across the world where many countries had entered an economic recession.
“Nigeria is not alone in this, but I will say that Nigeria has outperformed all of these economies in terms of the record of a negative growth,” Ahmed said.
Court Remands Nigerian Senator, Ali Ndume, In Prison
Senator Ali Ndume, the lawmaker representing Borno South Senatorial district has been ordered on Monday by a federal high court to be sent to prison.
The order follows his inability to produce Abdulrasheed Maina, the former Chairman of the defunct Pension Task Team, whom he stood as surety for in his corruption and money laundering trial.
The high court, sitting in Abuja was presided over by Justice Okon Abang and ordered Senator Ndume to be remanded in Kuje correctional centre.
Justice Abang, however, gave three conditions upon which Ndume can regain his freedom namely payment of N500m bail bond into the Federation Account of the Federal Government and present evidence of such payment in court or the FG sells the property situated in Asokoro, Abuja which Ndume pledge as security for the bond and present evidence of sale and payment of the N500m realised into the Federation Account or he (Ndume) produces Maina, who is believed to have now jumped bail, in court.
Shortly after the pronouncement by the Judge, Senator Ndume was led away from the courtroom by security operatives.
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