Daily Watch – Nigeria union leader arrested, Kenya seeks public input on revenue

The Nigerian National Petroleum Company (NNPC) and its joint venture partner, Chevron Nigeria Limited, have completed the conversion of five joint venture assets in compliance with the Petroleum Industry Act (PIA) 2021. NNPC Upstream Chief Bala Wunti noted that the asset conversion is expected to significantly boost crude oil production, with the two companies targeting 165,000 barrels of oil per day by the end of 2024. This transition from the Petroleum Profit Tax regime to the more investor-friendly PIA terms converted five Oil Mining Leases (OMLs) into four Petroleum Prospecting Licences (PPLs) and twenty-six Petroleum Mining Leases (PMLs). Under the PIA, existing Oil Prospecting Licences and OMLs will automatically transition into PPLs and PMLs upon expiration, with the option for voluntary conversion.

The Nigeria Labour Congress has announced the arrest of its President, Joe Ajaero, by security operatives. The NLC, in a statement on its X handle, said Mr Ajaero was arrested by the State Security Service (SSS) “at the Nnamdi Azikiwe Airport Abuja this morning on his way to attend an official engagement of TUC United Kingdom and he is now detained at the office of the NSA.” The NLC and Amnesty International have demanded Mr Ajaero’s immediate release. The Peoples Democratic Party (PDP) also condemned the arrest and urged President Tinubu to handle the labour issue carefully. Meanwhile, the Department of State Services (DSS) officers took control of the Socio-Economic Rights and Accountability Project’s (SERAP) Abuja office, which SERAP called an “unlawful occupation” in a statement on X.

The Ghana Cocoa Board (COCOBOD) says the new cocoa crop season which starts on Tuesday, 10 September 2024, will be opened with its proposed self-financing plan. Finance Minister Mohammed Amin Adam has also indicated that the government will be seeking some external funding to support the cocoa sector. COCOBOD head Joseph Boahen Aidoo has disclosed that the target for the next season has been reviewed down by 19.8% due to the unprecedented dry spell witnessed this year. He recalled that harsh weather has hindered farmers in Bono and Western North regions from a successful planting season. Aidoo said there are plans to boost cocoa production by over 200,000 metric tonnes in the next six years, including replacing old, non-flowering trees.

Kenya’s finance ministry will seek suggestions from the public on new legislation to boost revenue and tackle other challenges, Finance Minister John Mbadi said on Monday. “I will be issuing a circular tomorrow, inviting the public’s participation to submit proposals on some legislative reforms to improve our current economic situation,” he said. Kenyans have until 20 September to submit views. Mbadi said the country must continue servicing its debt, which exceeds the World Bank and International Monetary Fund’s recommended level, due to years of borrowing for infrastructure construction. Once the situation improves, the government may consider medium-term tax cuts, including lowering the Value Added Tax (VAT) to 14% from 16% and reducing corporate income tax by 500 basis points to 25%.