FG Grants Energy Firms N20bn Waivers

The Federal Government granted about N19.662 billion 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 N38.381 billion allocated to water resources in the 2014 budget; 31.48 per cent of the N62.45 billion allocated to Power; 31.75 per cent of N61.928 billion allocated to Petroleum Resources; and 29.5 per cent of the N66.645 billion allocated to agriculture.Data from the Budget Office of the Federation, in the Ministry of Finance, indicated that oil and gas firms enjoyed about N18.881 billion in waiver and exemption, while power companies enjoyed N780 million.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 N326.174 million 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 N32.272 million 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 N163.69 million 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 N130.213 million 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 N10.5 billion.Specifically, Indorama enjoyed a N6.96 billion 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 N3.54 billion waiver for the importation of fertiliser equipment, catalysts and chemicals, pile and spare parts among others.Chevron Nigeria Limited followed, enjoying a waiver of N4.88 billion 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 N1.969 billion in exemption for the importation of machinery, equipment and spare parts aimed at boosting natural gas utilisation and power supply. NIPCO Plc got N1.087 billion 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 — N14.37 million for the importation of machinery, equipment and spare parts for compressed natural gas to Independent Power Plants (IPPs), and Edo Cement Company Limited — N240 million for the importation of gas generators, plants, machinery, equipment and spare parts.Accugas Limited got N30.87 million in exemption for machinery, equipment and spare parts for pipeline; Exterran Nigeria Limited got N66.09 million in exemption for the acquisition of natural gas powered compressors and spare parts, while Procter and Gamble got N29.754 million in exemption for machinery, equipment and spare parts. http://www.vanguardngr.com/2014/10/fg-grants-energy-firms-n20bn-waivers/