INDUSTRY NEWS Government garnered more revenue than it projected in the 2020 revised budget from oil. The 2020 revised budget put the Federal Government’s projected revenue from oil at N1.01tn but the actual retained revenue for the year under review was N1.52tn. This showed that the government retained N507.67bn higher than it projected in the revised budget for 2020, which represented a 50 per cent increase on the target. Also, while the 2020 revised budget projected a retained revenue of N1.9bn for the Federal Government from minerals and mining, the actual revenue that was generated from the sector was N2.09bn. However, it was observed that the actuals from non-oil revenue, Company Income Tax and Value Added Tax were lower than their respective projected targets in the revised budget.
The retained revenue projections of the Federal Government for non-oil revenue, CIT and VAT in the revised budgets were N1.62tn, N821.67bn and N284.11bn, while their actuals were N1.28tn, N673.22bn and N192.66bn respectively. Also, the actual revenues from Customs and federation account levies were lower than their targets as captured in the revised budget for 2020. The actual revenue from customs that was retained by the Federal Government during the review period was N396.37bn, whereas the projection in the 2020 revised budget was N450.7bn. For federation account levies, the projection was N68.46bn, but the actual retained revenue of the Federal Government was N13.84bn. Minister of Finance, Budget and National Planning, Zainab Ahmed, recently said revenue generation
remained the most critical fiscal issue over the medium term. She noted that several measures were being instituted to improve government revenue and entrench a regime of prudence with emphasis on achieving value for money. Ahmed explained that improving the country’s tax administration framework to optimise government revenue was a major thrust of the Federal Government’s Strategic Revenue Growth Initiatives. Nigeria LNG Limited is one of the world’s top 10 suppliers of liquefied natural gas. The company is an incorporated joint venture owned by the Nigerian National Petroleum Corporation, 49 per cent; Shell Gas B.V., 25.6 per cent; Total Gaz Electricite Holdings France, 15 per cent; and Eni International N.A. N.V. S.àr.l, 10.4 per cent.
Shell Reports Nigeria to W’Bank Panel over Oil Spill Dispute The oil major’s Netherlandsregistered holding company and SPDC filed the case at the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) on February 10.
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oyal Dutch Shell Plc along with its Nigerian subsidiary, th e S h ell Petroleum Development Company (SPDC), has launched arbitration proceedings against the federal government over a long-running dispute with a Rivers community.
This is coming as the Joint Venture (JV) between the Nigerian National Petroleum Corporation (NNPC) and Total E & P targets to hit first oil in the $500 million Ikike Oilfield from the last quarter of 2021. A post on the website of the Washington-based World Bank dispute resolution body, indicated that the hearing of the case marked “Shell Petroleum N.V. and The Shell Petroleum Development Company of Nigeria Limited v. Federal
Republic of Nigeria (ICSID Case No. ARB/21/7)” was still pending. It listed the claimant’s representative as Debevoise & Plimpton, London, UK and New York, NY, U.S.A, while the respondents representatives were named as the AttorneyGeneral of the Federation and Minister of Justice, Abuja, Nigeria, Solicitor-General of the Federation and Permanent Secretary to the Federal Ministry of Justice, Abuja, Nigeria as well as the Federal Ministry of Justice. The World Bank’s arbitration body is a leading institution devoted to international investment dispute settlement, having administered the majority of all international investment as agreed to by participating states.
Majorwaves Energy Report FEBRUARY 2021, Vol 4 No 2
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