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Vitol, Glencore Win $380m Award in Nigerian LNG Litigation

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By Tony Obiechina Abuja 

Trading Houses, Vitol and Glencore will receive $380 million in compensation after their gas supplier, trading firm Taleveras, won a legal battle in a London court against Nigeria’s sole liquefied natural gas (LNG) producer for non-delivery of cargoes, court documents seen by Reuters showed.

The case heard in London’s High Court and Court of Appeal is the latest in a string of lawsuits brought by buyers against sellers and producers for non-delivery of cargoes after gas rallied from lows plumbed during the COVID pandemic when Russia invaded Ukraine in February 2022.

Taleveras sued Nigerian venture, known as NLNG and involving Shell, Total Energies and Eni partners, four years ago.

These three companies are minority shareholders in NLNG, along with the Nigerian state-owned oil company, which has 49%. Last week, Taleveras had NLNG’s appeal rejected, according to an official video of court proceedings.

A full written judgment is due to be released in the coming weeks.

NLNG runs Nigeria’s biggest LNG plant, which covers around 5% of global supply.

NLNG said it was reviewing the ruling and declined further comment. Shell and Eni declined to comment, while TotalEnergies did not respond to a request for comment, Reuters reported.

Court proceedings focused on 19 cargoes that NLNG had been due to deliver to Taleveras in 2020-2021.

Taleveras had pre-sold some of these cargoes to Vitol and Glencore, according to court documents.

The trading houses took legal action against Taleveras for non-delivery, leading to a chain of litigation.

The lost appeal means NLNG will need to pay Vitol around $260 million and about $120 million to Glencore, the documents said.

Vitol and Glencore did not respond to requests for comment. It was not clear how much Taleveras would receive on top of $380 million. Taleveras declined to comment.

European benchmark gas prices swung between 3.63 euros ($4.14) per megawatt-hour in 2020 as demand fell because of the pandemic and 311 euros ($328) per MWh in 2022 after the invasion of Ukraine disrupted supplies to Europe.

When prices soared, some producers cut supply under long-term deals and sold those volumes at higher prices on the spot market instead, triggering a wave of complaints about legality of such actions.

In one such case, Shell (SHEL.L), opens new tab and BP (BP.L), opens new tab pursued arbitration against Venture Global LNG, a U.S. gas exporter, for failing to supply contracted cargoes. Venture Global cited technical issues at its LNG facilities as the reason for delayed deliveri.

In the case of Taleveras versus NLNG, Reuters could not establish the reasons NLNG cited for delays.

Taleveras was founded in 2004 by Igho Sanomi, one of Nigeria’s independent energy traders. The company is now based in Dubai.

Nigeria’s GDP Grows by 3.84% in Fourth Quarter, 2024

Meanwhile, Nigeria’s economy showed strong growth in the fourth quarter (Q4) of 2024, with the country’s Gross Domestic Product (GDP) expanding by 3.84% in real terms compared to the same period in 2023, according to the latest data from the National Bureau of Statistics (NBS). 

This marks an improvement over the 3.46% growth seen in Q4 2023, signaling increased economic activity at the close of 2024.

Statistician-General of the Federation and Chief Executive Officer of the NBS, Prince Adeyemi Adeniran emphasized that the services sector played a central role in driving the economy, registering a robust 5.37% growth in Q4 2024. This sector accounted for 57.38% of Nigeria’s total GDP, highlighting its vital contribution to the national economy.

On a quarterly basis, Nigeria’s GDP rose by 10.99%, reflecting a higher level of economic activity than in the preceding quarter, Q3 2024. The total economic output for Q4 2024 reached ₦22.61 trillion, surpassing the ₦20.12 trillion recorded in Q3 2024 and the ₦21.77 trillion seen in Q4 2023.

Despite a strong performance in Q4, Nigeria’s annual GDP growth for 2024 stood at 3.40%, slightly up from the 2.74% growth recorded in 2023. However, agriculture and industry showed slower growth, while services continued to expand at a solid pace.

In nominal terms, Nigeria’s GDP for Q4 2024 reached ₦78.37 trillion, reflecting an 18.91% year-on-year increase from ₦65.91 trillion in Q4 2023.

Key contributors to this growth included crop production, trade, telecommunications, real estate, and financial institutions, with crop production alone accounting for 23.42% of the GDP.

Agriculture and industry experienced slower growth, with agriculture growing by just 1.76% (down from 2.10% in Q4 2023) and industry expanding by 2.00% (compared to 3.86% in the same quarter of 2023). In contrast, the services sector saw a notable 5.37% growth, a significant increase from 3.98% in Q4 2023.

The oil sector saw modest growth, with oil GDP increasing by 1.48% in Q4 2024, a sharp drop from the 12.11% growth recorded in Q4 2023. Average daily oil production for the quarter stood at 1.54 million barrels per day, slightly lower than the 1.56 mbpd seen in Q4 2023 but higher than the 1.47 mbpd recorded in Q3 2024.

The non-oil sector remained a strong performer, contributing 95.40% of the GDP in real terms, up from 95.30% in Q4 2023. Key sectors driving this growth included rail transport, metal ores, financial institutions, and insurance.

Looking ahead, Nigeria’s economy is expected to maintain its recovery momentum, with the services sector continuing to lead growth. However, challenges in agriculture and industry could pose risks to sustained expansion. The government’s focus on enhancing the non-oil sector, particularly in transportation and financial services, could further strengthen economic stability in 2025.

“A simplified tax system will attract investments, create jobs, and stimulate economic growth in the region. This, in turn, will lead to increased economic activity, improved living standards, and reduced poverty levels.

“As the North is a significant contributor to Nigeria’s economy, the benefits of the Tax Reform Bills will be felt across the country. 

“The reduction in compliance costs will also ease the burden on taxpayers in the North, enabling them to invest in their businesses and communities.

“This will be particularly beneficial for small and medium-sized enterprises (SMEs), which are the backbone of the Northern economy. By reducing the tax burden on SMEs, the tax reform bills will promote entrepreneurship, innovation, and job creation in the region.

“The increased revenue generated from the reforms will also enable governments in the North to fund critical infrastructure projects and social programs.

“This will help to address the region’s developmental challenges, such as inadequate healthcare, education, and transportation infrastructure. By investing in these critical areas, the North will be better equipped to unlock its economic potential and improve the lives of its people.

“The benefits of the tax reform bills to the North are numerous. The reduction in compliance costs will ease the burden on taxpayers, enabling them to invest in their businesses and communities.

“Additionally, the increased revenue generated from the reforms will enable governments to fund critical infrastructure projects and social programs.

“The tax reform bills will also promote fairness and equity in the tax system, eliminating multiple taxation and reducing the tax burden on low-income earners.

“This will promote social justice and reduce poverty in the region. Furthermore, the reforms will promote transparency and accountability in the tax system, building trust between governments and the people,” Garuba said.

He also commended the Senate Committee Chairman, Senator Sani Musa for his neutrality and impartiality by ensuring that all Nigerians were heard during the hearing.

Garuba in the same vein urged all northerners to support the tax reform bills, emphasising that the reforms are in their best interest.

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May 29th Tragedy: Flash flood kills 21and wash away 50 houses in two Niger Communities

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From Dan Amasingha, Minna

Tragedy struck in two Niger Communities as flash accompanied by heavy down pour that lasted for hours led to heavy flood that claimed 21 lives and washed away over 50 houses. The heavy down pour which started late on Wednesday, the 28th of May lasted till mid Thursday leaving behind tells of woes and deaths.

Niger State emergency management agency confirmed the deadly flood in a statement by the Director General Abdullahi Baba Ara on Thursday evening.
” NSEMA is in receipt of report of a deadly flood disaster that ravaged two communities of Tiffin maza and Anguwan hausawa in Mokwa town of Mokwa LGA” He disclosed that, the incidence occurred last night (Wednesday)during a torrential downpour of very high intensity that lasted several hours.
According to him, the surging flood water submerged and washed away over 50 residential houses with their occupants.Tge Agency Director General disclosed that, ” in response the Agency, in collaboration with Mokwa LG Authority, local divers and very brave volunteers are conducting search and rescue operation to rescue survivors and recover corpses .” At present 3 servivors ( a woman and her 2 children) are receiving treatment for wounds and shock at Mokwa general, while 21 corpses have so far been recovered of those who sadly loss their lives in the incidence” Alhaji Abdullahi Baba Ara said over 10 persons are still missing as search and rescue operation is still ongoing.

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My Administration, Policies Are Working,  Says Tinubu

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By Andrew Oota , Abuja

President Bola Tinubu has declared that his administration’s economic reforms and policies  were working for the progress of Nigeria and the good of all.

The President also  stated that his administration would make life better for Nigerians acknowledging the sacrifices made so far, with a conviction  that his vision for the country is clear.

Tinubu  said this in a statement issued to commemorate the second anniversary of his administration on Thursday, May 29, 2025.

He stated that his administration had stabilised the nation’s economy, noting that “we are now better positioned for growth and prepared to withstand global shocks.

He pointed out that , “Today, I proudly affirm that our economic reforms are working. We are on course to build a greater, more economically stable nation.

“Under our Renewed Hope Agenda, our administration pledged to tackle economic instability, improve security nationwide, reduce corruption, reform governance, and lift our people out of poverty.

“While implementing the reforms necessary to strengthen our economy and deliver shared prosperity, we have remained honest by acknowledging some of the difficulties experienced by our compatriots and families.

”We do not take your patience for granted. I must restate that the only alternative to the reforms our administration initiated was a fiscal crisis that would have bred runaway inflation, external debt default, crippling fuel shortages, a plunging naira, and an economy in a free-fall.

“Despite the bump in the cost of living, we have made undeniable progress.”

The president further stated that he acknowledged the sacrifices many Nigerians have been making for the development of the country, adding: “Our journey is not over, but our direction is clear. So is our resolve to tackle emerging challenges.

“By the Grace of God, we are confident that the worst is behind us. The real impact of our governance objectives is beginning to take hold.

“The future is bright, and together, we will build a stronger, more inclusive Nigeria that we can all be proud of.” He said.

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Seven Months After, Reps Pass Harmonized Tax Reform Bills

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By Eze Okechukwu and Ubong Ukpong,Abuja

House of Representatives on Wednesday passed the tax reform bills transmitted to the National Assembly by President Bola Tinubu in October 2024.The bills were passed at a session presided over by the Deputy Speaker, Benjamin Kalu.

The development followed the adoption of the harmonised versions of the reform bills by both the House and the Senate.
At plenary on Wednesday, the House of Representatives considered the report of the conference committee, which harmonised the bills.
The Chairman of the House Committee on Finance, Abiodun Faleke (APC, Lagos), who headed the House team to the conference committee, presented the conference report to the House for consideration.
According to him, the Conference Committee met and agreed on all areas of difference in the version passed by both chambers of the National Assembly. He stated that there were 45 areas of difference in the Nigeria Tax Administration Bill, 12 areas of difference in the Nigeria Revenue Service Bill, 9 areas of difference in the Joint Revenue Board Bill and 46 areas of difference in the Nigeria Tax Bill, adding that all grey areas were resolved ahead of the passage. While the conference committee agreed to retain the Senate version in some of the clauses, they also retained the House version in some others, making amendments in a few others. The conference committee agreed to the imposition of a 4 per cent development levy on the assessable profit of all companies chargeable to tax under Chapters 2 and 3, except small companies and non-resident companies. They also agreed that the levy shall be collected by the Nigeria Revenue Service and paid into a special account created for the same purpose.

In the sharing formula, the committee agreed that 50 per cent of the tax would go to the Tertiary Education Trust Fund, 15 per cent to the Education Loan Fund (up from 3 per cent agreed by the House), and 8 per cent to the Nigeria Information Technology Development Fund.

Similarly, the National Agency for Science and Engineering Infrastructure is to get 8 per cent (down from 10 per cent earlier agreed by both chambers), the National Board for Technology Incubation is to get 4 per cent from the fund, defence and security infrastructure is to get 10 per cent while cyber security fund will get 5 per cent.

Meanwhile, the Social Security Fund, Nigeria Police Trust Fund, and National Sports Development Fund were excluded from the list of beneficiaries passed by the House of Representatives.

The committee also adopted a new clause 158, which imposes a 5 per cent surcharge on chargeable fossil fuel products provided or produced in Nigeria and shall be collected at the time a chargeable transaction occurs.

The controversial Value Added Tax sharing formula was not part of the areas of disagreement between the two legislative chambers.

In his remarks, Kalu said the parliament has played its part in ensuring that the country moves forward, even as he urged the executive arm of government to do its part.

In his contribution, a member of the House representing Gwoza/Damboa/Chibok Federal Constituency, Borno State, Ahmed Jaha warned those who will clean up the bill not to tamper with any of the clauses passed, saying “Where the T is not crossed, don’t cross it, where the I is not dotted, don’t do it. We have the original copies of the bills as passed before and after harmonisation.

“We have had cases in the past where those in charge of cleaning up the bills tamper with it and at the end of the day, the President will withhold assent. That must not happen.”

That said, the All Progressives Congress lawmaker singled out Speaker Tajudeen Abbas and Deputy Speaker, Benjamin Kalu for praise, saying, “I want to thank your leadership for the role you played in making these bills a success. I also want to thank the Chairman of the Committee, Abiodun Faleke. He showed that he is truly a good elder. He provided a lot of training for some of us, and I want to say that this is the way to go.”

In a related development, the Senate has approved the Rivers State 2025 budget for a second reading.

The budget, which totals ₦1,480,662,592,442 trillion, was presented by the Senate Leader, Senator Michael Opeyemi Bamidele, on Wednesday.

Bamidele explained that the Senate had assumed legislative powers over Rivers State following the declaration of a State of Emergency in the state.

Supporting the motion, Senator Solomon Adeola Olamilekan emphasised the urgency of passing the budget to ensure that the people of Rivers State feel the impact of governance.

He said, “Mr. President, I am not exactly sure under what title this document is categorised, but from what I can see, it pertains to a budget under the state of emergency. I hereby support its passage for second reading so that the people of Rivers can feel the presence of government.”

With no opposition to the motion, the Senate President, Godswill Akpabio, conducted a voice vote and referred the budget to the Ad-hoc Committee on Overseeing the Rivers State of Emergency for further legislative action.

Senate announced that the Sole Administrator of Rivers State, Vice Admiral Ibok-Ete Ekwe Ibas, along with other key state officials, would appear before a Joint National Assembly Ad-hoc Committee to defend the state’s 2025 budget. NASS holds commemorate 25 years of democracy, holds joint session,

Also,President of the Senate, Senator Godswill Akpabio, has announced that a joint session of the National Assembly will be held on June 12 to commemorate Democracy Day.

He made the announcement after the upper chamber reconvened for plenary on Wednesday.

Akpabio revealed that the Senate leader, Senator Opeyemi Bamidele, the Senate minority leader, Senator Abba Moro as well as the Chairman senate services, Senator Sunday Karimi will meet with their counterparts in the House of Representatives to finalize the programme of activities and coordinate arrangements for the special session.

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