In a move by the government to secure its equitable share of the proceeds of oil production, President Muhammadu Buhari, through his official Twitter handle (@MBuhari) disclosed that he had signed the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Amendment Bill into law.
Reportedly, Nigeria has lost about US$21 billion to the failure of the government to review the PSC as required by the Act. In our view, the amendment of the PSC Bill reinforces the efforts of the fiscal authority in exploring more sources of revenue to fund its spending plans.
In the amended PSC bill, two more revenue streams were added to the 1993 Deep Offshore and Inland Basin PSC. Firstly, there is a flat 10% royalty on all projects over 200 meters deep and the other is a 7.5% royalty on frontier and inland basins. Under the previous fiscal regime, offshore projects of between 200 meters to 400 meters deep paid 12% of the project costs in royalties.
Projects between 401 meters to 800 meters deep paid 8%, while those from 801 meters to 1 000 meters paid 4%. Deep offshore projects above 1 000 meters deep did not pay any royalties.
The 2019 amended PSC bill, which has now become law, prescribes a flat rate of 10% across board. The revised Act also introduces a price-based royalty payment system, which would add between 0% to 10%, depending on the prevailing oil price in the market. In other words, oil firms executing deep offshore projects in Nigeria will be paying varying percentages based on the prevailing price of a barrel of oil at the time. Notably, it is only when oil sells for $20 and below that the new royalty will seize to apply.
Also, Section 16 of the repealed bill provided for a review of the PSC’s (the first of which was signed in 1993) after 15 years and subsequently every five years. The re-adjustment window was increased to eight years, albeit there was no clarity as to whether this clause will apply to new projects like the Total-operated Egina field, the Shell and Eni-operated Etan/Zaba Zaba field and the Bonga South-West block, which Shell is yet to take a final investment decision on.
The signing of the amended bill has generated mixed reactions across the country, with some stakeholders holding the opinion that the new levies will make deep offshore projects less profitable and result in lower investment. On the other hand, it is expected that Nigeria’s share of earnings from offshore oil wells will increase significantly, particularly in the periods when oil prices are rising. The government is hoping to raise around US$500 mn in 2020 and over US$1 bn in 2021, from new taxes levered into the fiscal terms of the contract. In our opinion, this will be of benefit for governments’ purse at a time when the fiscal authority is struggling with a brewing fiscal crisis.
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Applications across Nigeria, South Africa and Kenya now open for the 2021 Facebook Community Accelerator Program
The selected leaders will spend five months learning from experts, coaches and a customised curriculum so they can strengthen their community.
Today, Facebook is inviting community leaders from Nigeria, South Africa and Kenya to apply for the 2021 Facebook Community Accelerator Program—a program that offers participants training, mentorship and up to $50,000 USD in funds to invest in an initiative that extends their community’s positive impact.
The aim of the Community Accelerator is to help leaders of Facebook communities to harness the power of their community to turn ideas into action. The selected leaders will spend five months learning from experts, coaches and a customised curriculum so they can strengthen their community.
Lessons include community identity foundations, leading action-oriented programmes and sustainability. Participants will also receive early access to new Facebook products aimed at helping communities better manage and activate their members.
Plan an initiative
Participants will identify an important initiative that will create a positive impact on the broader world and develop a plan to mobilise their community around their goal. Initiatives will be shared with potential partners, mentors and a panel of judges for the chance to be awarded funding and receive public recognition.
Participants will then spend three months executing their initiatives. They will collaborate with advocates and leaders in the community space and work with the Facebook team to bring their ideas to life.
Says Kiran Yoliswa, Partner Management Lead, Middle East and Africa Community Partnerships at Facebook: “Facebook communities and their leaders are helping to resolve social challenges, sharing knowledge and information, while connecting with others that share their interests or passion for a cause. We’ve seen so many incredible communities from across South Africa, Kenya and Nigeria using our platform to drive change and provide support and encouragement for thousands of people, we’re excited to offer their Facebook Community leaders this program to help amplify their impact even more.”
How to apply
This program is open to communities that have a presence in Facebook Groups with leaders who are 18 years or older. Communities must have existed for over one year and must have a minimum size of 1,000 members. Applications open today, May 4 – 31, 2021.
The Community Accelerator is part of our Facebook Community Leadership Program, a global initiative that invests in people building communities. Learn more and apply here.
NIN registration: 54 million Nigerians have now enrolled – Buhari
12 million Nigerians were enrolled into the National Identity Database in the past 6 months.
President Muhammadu Buhari disclosed that the FG has enrolled 54 million Nigerians into the National Identity Database, citing that 12 million were enrolled in the past 6 months alone and that the final aim of the scheme is to secure Nigeria’s security infrastructure.
President Buhari disclosed this in a statement on Thursday evening.
What the President said about NIN enrollment
“I am pleased with the success we are recording in the enrollment of persons into the National Identification Number (NIN) database. 54 million Nigerians have now enrolled; I am told over 12 million of these within the last six months. Our goal is total coverage.
The National Identification Number (NIN) is the foundational digital ID for the country. It will cover one of the weaknesses in our security structure. We will be able to easily identify all Nigerians, including the crooks in our midst.”
The President added that both legal residents and Nigerians are expected to obtain the NIN as it would be beneficial to government agencies to utilise resources efficiently.
In case you missed it
The Federal Government announced a further extension of the ongoing National Identification Number (NIN) registration and linkage with Subscriber Identity Module (SIM) exercises to a new deadline of June 30, 2021.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- 2021 Q1 Results: FTN Cocoa Processor Plc reports loss after tax of N162.21 million
- Tantalizers Plc reports a loss after tax of N97.75 million in FY 2020 in Q1 2021.
- Courteville Business Solutions Plc proposes final dividend of 3 kobo per share for FY 2020.
- 2020 FY Results: UPDC Real Estate Investment Trust records over 500% growth in Profit after tax.
- Sovereign Trust Insurance records a 43% surge in profit after tax to N392.1 million in Q1 2021.