Tag: PRESIDENCY

The Presidency has announced the take-off of the 550 million US Dollar upstream gas project between the Nigerian National Petroleum Corporation Ltd. (NNPCL) and TotalEnergies on development of Ubeta field.

Special Adviser (SA) to President Bola Tinubu on Energy, Olu Verheijen disclosed this at an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department, in Washington, DC.

Speaking at a luncheon organised as part of the inaugural dialogue, Verheijen said the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.

A statement on the event signed by Morenike Adewunmi, Stakeholder Manager, Office of the Special Adviser to the President on Energy,
was made available to the News Agency of Nigeria (NAN) in Abuja on Tuesday.

Verheijen told the gathering that major energy reforms introduced by President Bola Tinubu since June 2023 focused on improving energy security, attracting investments and deepening collaboration with key partners including the the US government.

She said the key reforms had improved the viability of the gas-to-power value chain of the country

The reforms according to her, included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors, and to reduce carbon emissions from gas production.

She added that, to support the reform efforts, the President issued five new executive orders aimed at providing fiscal incentives for investment.and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.

The presidential aide said the directives also aimed to immediately unlock up to 2.5 billion dollard in new oil and gas investments in the country.

She acknowledged the support of financing and technical partners like the US government, the World Bank and the African Development Bank towards expanding electricity access and reliability through grid and off-grid solutions.

Verheijen affirmed her optimism about the bright prospects for Nigeria’s energy sector, especially with the renewed focus on gas as a transition fuel in the race to meet the country’s commitments to the Paris climate agreement.

“We see resilient demand for gas through the energy transition as it is a readily available, cost-effective backup to renewables while cutting emissions by half immediately,” she said.

Speaking on the Dialogue, Verheijen recalled it was established in June 2023 to create a platform for the US and Nigerian governments and private sector to deepen bilateral cooperation and advance the implementation of shared energy and climate action ambitions.

“Nigeria seeks to create a robust regulatory framework and attract new investments for the production of gas for power, transportation and clean cooking.

“I cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue.

“The goal of this dialogue for us to jointly proffer solutions that will close the energy access gap for close to 100 million Nigerians who still lack reliable power.

“We want existing and potential partners to better understand our areas of priority so that our collaboration can be better targeted, and with tangible outcomes,” she said..

On his part, Geoffrey Pyatt, US Assistant Secretary of the State Department’s Bureau of Energy Resources said the dialogue was apt and strategic.

“The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria.

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“Together, we’re advancing shared energy security, decarbonization, and economic growth goals,” he said.

The Dialogue saw the launch of a new Nigeria-focused initiative, the Clean Energy Alliance of Nigeria (CLEAN), by the U.S. State Department, to mobilise stakeholders to support and promote investment in clean energy in Nigeria.

The Nigerian delegation to the event was led by the Minister of State for Petroleum Resources (Gas)  Ekperikpe Ekpo.

Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, NNPC Limited, were also in attendance.

The US delegation included representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency (USTDA), and the Export-Import Bank

NAN recalls that the signing ceremony of the 550 million USD Final Investment Decision (FID) on the Ubeta Field Development Project took place in Abuja in June

The Ubeta field, discovered in 1964 is located Northwest of Port Harcourt, Rivers state.

(NAN)

The Presidency has addressed the claims made by Zhongshan Fucheng Industrial Investment Co. Limited regarding attempts to take over offshore assets of the federal government of Nigeria.

In a statement released on Thursday, August 15, Bayo Onanuga, special adviser to the president on information and strategy, confirmed that the federal government was aware of the attempts by the Chinese company and firmly denied any contractual obligations with them.

According to Onanuga, the dispute involving Zhongshan Fucheng is primarily between the company and the Ogun state government, not the federal government.

He emphasised that the federal government has no contractual ties with Zhongshan, and any claims made by the company concerning offshore assets are unfounded.

Onanuga’s statement highlighted that Zhongshan Fucheng is attempting to use unorthodox means to gain control over Nigerian assets.

He said: “The ongoing issue centres around a 2007 contract between Zhongshan and Ogun State, which involved the management of a free-trade zone. However, the contract was revoked in 2015, and Zhongshan had only completed the construction of a perimeter fence on the land designated for the free-trade zone. Despite the revocation, Zhongshan has sought restitution from the Ogun state government.

Onanuga asserted that the company has no legitimate grounds for such demands, given the status of the contract and the limited progress made by Zhongshan before its termination.

The statement read: “The Presidency is aware of the various failed attempts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to take over offshore assets of the Federal Government of Nigeria through subterfuge.

“The federal government is not under any contractual obligation with the company. The case in which Zhongshan is trying to use every unorthodox means to strip our offshore assets is between the company and the Ogun State Government.

“The Federal Government is fully aware of efforts being made by the Ogun State Government to reach an amicable resolution on the matter.

“It must be said without any equivocation that Zhongshan has no solid ground to demand restitution from the Ogun State Government based on the facts regarding the 2007 contract between the company and the State Government to manage a free-trade zone.

“When the contract with Ogun State was revoked in 2015, the company had only erected a perimeter fence on the land earmarked for a free trade zone.

“While the Attorney-General of the Federation and Minister of Justice is working with the Ogun State Government on an amicable resolution, Zhongshan obtained two orders from the Judicial Court of Paris dated March 7, 2024, and August 12, 2024, without any notice being duly served on the Federal Government of Nigeria and Ogun State Government.

“This arm-twisting tactic by the Chinese company is the latest in a long list of failed moves to attach Nigerian government-owned assets in foreign jurisdictions.

“The material facts in the transaction between the Ogun State Government and Zhongshan point to another P&ID case in which unscrupulous and questionable individuals falsely present themselves as investors with the sole objective of undercutting and scamming Governments in Africa.

“Undoubtedly, Zhongshan withheld vital information and misled the Judicial Court in Paris into attaching the Nigerian government’s presidential jets, which are on routine maintenance in France. The use and nature of the Presidential jets as assets of a Sovereign entity whose assets are protected by diplomatic immunity forbid any foreign Court from issuing an order against them.

“We are convinced the Chinese company misled the Judicial Court of Paris regarding the use and nature of the assets it seeks to attach and did not fully disclose to the court as required by law. This same Chinese company had tried to enforce its questionable judgment in the UK and USA but failed.

“Like the P&ID case, foreign companies are trying to defraud Nigeria with the collaboration of some bureaucrats. Zhongshan appeared to have sold the judgment they got to a venture capitalist seeking to make money by embarrassing the Federal Government and President Bola Tinubu.

“We want to assure Nigerians that the Federal Government is working with the Ogun State Government to discharge this frivolous order in Paris immediately.

“Nigerian Government will always work to protect our national assets from predators and shylocks who masquerade as investors.

Background to the Zhongshan Fucheng Case:

“A contract between Ogun State and Zhongshan to manage a free-trade zone was executed in 2007. The parties entered into a dispute in 2015, and arbitration began in 2016.

It further stated: “By 2019, the arbitration hearing had been concluded. The Arbitral Panel awarded over 60 million USD against the Federal Government of Nigeria (FGN), a co-defendant, when all Zhongshan had done was build a perimeter fence around the free-trade zone.

“Based on legal advice, the Ogun State Government resolved to resist the enforcement of the award. The resistance was successful in 8 different jurisdictions. There are pending appeals against recognition orders issued in both the US and UK.

Read Also: N573b fund: Presidency replies governors

“Ogun State also engaged Zhongshan in settlement discussions on reasonable terms. The last meeting, held in September 2023 in London, lasted for three days and was attended by several officials of Ogun State, including Governor Dapo Abiodun and the Attorney General/Minister of Justice, Prince Lateef Fagbemi.

“Zhongshan’s initial reasonable readiness to consider Ogun State’s offer was surprisingly reversed by the second day when it insisted on the government paying the full arbitration debt. This led to a breakdown of the mediation, with parties agreeing to meet again in the first quarter of this year.

“Since then, Zhongshan has been evasive. Instead, it embarked on a series of enforcement proceedings, which the legal team appointed by the FGN and Ogun State successfully opposed. In cases similar to the present one, where Zhongshan obtained an ex-parte order, Ogun State successfully set aside the orders.

“Ogun State has not given up on a reasonable settlement option, with the most recent letter sent to Zhongshan last week. Zhongshan only responded after obtaining this latest illegal order.”

• …says loan guaranteed by fed govt

The Presidency has addressed the controversy surrounding the ₦573 billion payment to state governments, clarifying that it is a loan from the World Bank, not a grant.

Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, explained that the loan is part of the Covid-19 livelihoods support scheme under the NG-CARES Programme funded by the World Bank.

Ajayi’s clarification comes after some governors denied receiving federal government’s grant, sparking controversy over the payment. 

Ajayi emphasised that the federal government guarantees the loan, which means it will be responsible for repayment if the states are unable to pay.

The Presidency’s statement comes after some governors denied receiving a grant from the federal government, sparking a debate over the nature of the payment.

Ajayi stressed that the focus should be on the positive impact of the funding on the lives of citizens, rather than the semantics of whether it is a loan or grant.

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The Presidency assured that President Tinubu will continue to work with governors as partners in nation-building, expanding the economy, and enabling shared prosperity for all Nigerians.

The payment is expected to support state governments in meeting their financial obligations and implementing development projects. 

“They are not denying. They are saying it is not a grant, a dash from federal government. That it is a loan from World Bank

“I think the issue is not whether it is a loan or grant. The point, as clearly stated in the President’s broadcast is that the states got money and the amount, which is the second tranche under the Covid-19 livelihoods support scheme under the NG-CARES Programme funded by the World Bank, is N570 billion.

“The fact of the matter is states are getting needed support and funding to improve the lives of the people. Meanwhile the World Bank facility is guaranteed by the federal government because every multilateral loans must have Sovereign guarantee which means the loan will be paid by the FG in case the sub-nationals are unable to pay.

“There should be no hue and cry by any governor really if the objective is to serve the people and make life better for the masses. The President is elected to make life better for citizens same way the governors are elected to do same in their respective states. 

“President Tinubu will continue to work to expand the economy and enable shared prosperity for all Nigerians. He considers the Governors as partners in progress and in the job of nation-building. 

“What can’t be denied is that the states have more resources to deliver better service to the people, especially in critical areas of education, healthcare, security and physical infrastructure like roads among others”, Ajayi said.

The Presidential spokesman described the issue as more than just semantics, explaining that the payment was the second tranche, with the first tranche paid in October or November last year.

“I think the issue here is one or two governors trying to reduce the matter to semantics. It is much more than that. The fact remains that the federal government paid the states the money and the N573 billion is actually the second tranche. The first tranche was paid sometimes in October or November last year”, he said.

To bridge the gap between the federal  government and local communities in the country, the Presidency has launched the Citizens Assembly for the Abuja area. 

The Senior Special Assistant to the President on Community Engagement (North Central), Abiodun Esseit, speaking at the launch at the State House, decried a concerning gap between the federal government and local communities in Nigeria. 

The presidential aide cited a March 2024 survey conducted across the North Central region, including Abuja, Benue, Kogi, Kwara, Nasarawa, Niger, and Plateau states. 

 According to her, the findings paint a stark picture of disconnection.

 She said: “Community engagement plays a crucial role in building trust between the Federal Government and its citizens. It establishes a direct connection, ensuring that the voices of the people are heard and considered in the corridors of power. 

 “To gain a clearer insight into the challenges facing our grassroots, we conducted a survey in March 2024, involving 166 respondents from the North Central region, including Abuja, Benue, Kogi, Kwara, Nasarawa, Niger, and Plateau states.

 “The findings revealed a significant disconnect between the Federal Government and local communities. For instance:48.2% of participants perceive a lack of engagement from the Federal Government.78.3% feel unrepresented in the government’s policies and decision-making processes. 

“62.1% consider community engagement organizations effective. “68.7% believe the government does not consult with local communities before implementing projects. 

“However, nearly 90% believe that co-creation can lead to more sustainable and contextually relevant solutions. These findings clearly indicate a substantial gap in trust and communication between the federal government and local communities, a gap stemming from unfulfilled promises by successive governments over the past 25 years since the return to democratic rule.”

To address this gap, the presidential aide noted that President Bola Tinubu appointed six Senior Special Assistants on Community Engagement across Nigeria’s six geopolitical zones in September 2023. 

She said this move is part of the administration’s Renewed Hope Agenda, which aims to improve governance through strategic citizen engagement. 

 She said the Citizens’ Assembly initiative, launched by the presidential aide’s office, seeks to bridge this disconnect. 

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According to her, it provides a platform for residents to express thoughts, share ideas, and collaborate on solutions to community problems. She said the assembly will be replicated across the North Central states following its FCT launch. 

“Nearly a thousand volunteers from the region applied to participate in this grassroots engagement effort. Selected individuals will represent at least one ward across the six North Central states and the FCT, serving as agents of change within their communities,”she added .

 The presidential aide emphasized the crucial role of community engagement in building trust between the government and citizens. 

 She called on other government appointees and elected leaders to replicate this model in their respective jurisdictions to foster national prosperity.