FG grants energy firms N20bn waivers

The Federal Government granted about ₦19.662billion in waivers and exemption to energy firms in the country in five months, between January and May 2014.
The amount is 51.23 per cent of the ₦38.381 billion allocated to water resources in the 2014 budget;31.48 per cent of the ₦62.45billion allocated to
Power; 31.75 per cent of ₦61.928billion allocated to Petroleum Resources; and 29.5 per cent of the ₦66.645billion allocated to agriculture.
Data from the Budget Office of the Federation, in the Ministry of Finance, indicated that oil and gas firms enjoyed about ₦18.881billion in waiver and
exemption, while power companies enjoyed ₦780million.
The Government also reiterated its commitment to tackling the epileptic power situation in the country, and addressing the issue of estimated billing. To this end, it granted ₦326.174million in exemptions to two prepaid electricity meter companies, Momas Electricity Meters Manufacturing Company Limited,
and Mojec International Limited, for the importation of metering facilities. Specifically, Momas got two exemptions: the first worth ₦32.272million for the importation of semi-knock down meters, one and three phase normal credit meters, one and three phase standard
prepayment meters and all other related equipment. The second exemption was ₦163.69million for the importation of meter plastic machines and accessories, compression mould machine and all
other meter related equipment.
On the other hand, Mojec International got ₦130.213million in exemption for the importation of machinery, equipment and components for single and three phase pre-paid meters.
Indorama Eleme Fertilizer and Chemicals Limited accounted for 53.4 per cent of the total waivers and exemption granted to energy firms in the period under review, with a total of ₦10.5billion. Specifically, Indorama enjoyed a ₦6.96billion waiver for the importation of the machinery, equipment and spare parts for the utilisation of Nigeria natural gas to bring about an increase in power generation. The company was also granted a ₦3.54billion waiver for the importation of fertiliser equipment, catalysts and chemicals, pile and spare parts among others.
Chevron Nigeria Limited followed, enjoying a waiver of ₦4.88billion for the importation of machinery, equipment and spare parts for Escravos Gas to
Liquids (EGTL) and a host of other pipelines.
United Cement Company of Nigeria got ₦1.969billion in exemption for the importation of machinery, equipment and spare parts aimed at boosting natural gas utilisation and power supply. NIPCO Plc got ₦1.087billion in exemption for the importation of machinery, equipment and spare parts.
Other energy firms that got waivers and exemptions in the period are: Green Fuels Limited — ₦14.37million for the importation of machinery, equipment
and spare parts for compressed natural gas to Independent Power Plants (IPPs), and Edo Cement Company Limited — ₦240 million for the importation of gas generators, plants, machinery, equipment and spare parts.
Accugas Limited got ₦30.87million in exemption for machinery, equipment and spare parts for pipeline;
Exterran Nigeria Limited got ₦66.09 million in exemption for the acquisition of natural gas powered compressors and spare parts, while Procter and Gamble got ₦29.754 million in exemption for
machinery, equipment and spare parts.
Others are Sumal Foods Limited — ₦42.878 million; Federal Ministry of Power/Marubeni Engineering Corporation — ₦454.185 million and De United
Foods Industries Limited — ₦19.978 million.

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