Tag Archives: Allocate

Nigeria To Allocate New Oil Licenses To Fund 2017 Budget

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The Federal Government will issue new oil licences as part of efforts to explore new streams of revenues to fund the 2017 budget, an official has said.

The Minister of Budget and National Planning, Udoma Udoma, stated this when he appeared before the Senate Joint Committee on Appropriation and Finance to defend the revised Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP).

He said the Federal Government would also review the current joint venture arrangements with oil companies, marginal oil fields as well as mount pressure on revenue generating agencies to surpass expected targets.

Mr. Udoma said a total of N10 trillion was being targeted by the Federal Government as revenue for the 2017 fiscal year.

According to him, out of this amount, about N5 trillion is expected to be generated from the sale of crude oil.

“Non-oil revenues will rake in about N5.06 trillion.

“These revenues are expected to come from corporate and company taxes, Nigeria Liquefied Natural Gas, Stamp Duties, capital gains tax and value added tax.

“Others are Customs, excise, fees, surcharges on luxury items, special levies and Federal Government independent revenue,” he said.

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Buhari Will Strip President Powers To Allocate Oil Blocks- Report

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If the new draft of the Petroleum Industry Bill (PIB) is passed by the National Assembly, the President will not have discretional powers to allocate oil blocks. When it comes into effect, the Nigeria Petroleum Regulation Commission (NPRC) would solely enjoy such powers. The agency would emerge with the PIB.

The final draft of the new bill, “Petroleum Industry Governance and Institutional Framework Bill 2015”, which was concluded on December 2, 2015, limits the power of the President to appoint members of the NPRC board. The bill aims to promote transparency and accountability in the administration of the petroleum resources, while creating a conducive business environment for the industry operations. The new draft, which mentions the Senate twice, says the Upper Chamber would be responsible for the ratification of the governing board members appointed by the president. “The appointment to the board in respect of persons appointed pursuant to paragraphs (a) to (d) of this section shall be made by the President subject to confirmation of the senate,” the bill reads.

“The chairman and non-executive commissioners shall be persons of high integrity and substantial professional experience; in appointing the chairman and the non-executive commissioners, the President shall have due regard to a fair representation of the technical, legal and commercial interests.”

The initial PIB, which had been stuck in the National Assembly for nearly a decade, conferred discretionary powers on the President to allocate oil blocks besides the competitive open bidding. As recently as 2012, the PIB presented before the National Assembly said, “notwithstanding the provisions of the subsection (3) of Section 190 or any other provision of this Act, the President shall have the power to grant a licence or lease under the Act”.

Credit: Sun