The Nigerian National Petroleum Corporation (NNPC) has said money alleged to have been diverted from the dividend from the Nigeria Liquefied Natural Gas (NLNG) company was a revolving loan to fund subsidy payments.
 
According to the NNPC, the $1.05bn revolving loan obtained from the dividend of the NLNG prevented petroleum products’ chaos in the country, adding that the loan was used to subsidise the cost of Premium Motor Spirit, popularly known as petrol, in 2018.
 
The corporation also said that it was unfortunate for the National Assembly to commence a probe into the use of the NLNG dividend.
 
It would be recalled that the Senate, on Tuesday, commenced an investigation of the alleged diversion of $1.05bn from the Nigerian Liquefied Natural Gas dividend account by the NNPC.
 
The Group General Manager of NNPC, while commenting on the development on Saturday in Abuja, said the probe by the Senate was wrong as the $1.05bn loan saved Nigeria from chaos.
 
He said: “The Senate got it wrong. Based on newspaper reports, the Senate said it was $3.5bn subsidy fund, whereas we do not have anything like subsidy fund. What we have is that we sourced for revolving loan based on the Nigeria LNG dividend to NNPC.
 
“And this is because NNPC is a major shareholder in NLNG and inter-party agencies are managing this and the figure is $1.05bn. There is nothing like $3.5bn because anything subsidy must be appropriated by the National Assembly.
 
“Now, it is important to state that if we didn’t source for that revolving loan, the nation would have been in chaos. They are not looking at that but claim we spent $3.5bn when there is nothing like that. You can’t place something on nothing.
 
“If we wanted to play safe, we would just appear before the Senate and when they say what of the $3.5bn, we will say nothing like that and that will be all. But for the sake of responsibility, we went further to clarify issues and told them what we have.”
 
Ugbamadu insisted that there would have been crisis across the country if the NNPC had not taken the step.
 
He said further: “So, the investigative panel, set up by the Senate on the Nigeria LNG dividend, is unfortunate because NNPC is the major shareholder and we utilise the dividend paid to the NNPC for importation of products and it is a revolving loan.
 
“Meaning – the NNPC is going to pay it back and if we didn’t obtain that and if the National Assembly has a leeway, it should recommend to the NNPC on what should be done because the price of petrol at N145 per litre is fixed.
 
“Major and independent marketers are not importing and you expect the NNPC to concentrate on the importation of products, which is not our core business! And if that is not done, the entire nation will be in chaos; you and I will be affected, including members of the National Assembly.
 
“It was the same National Assembly that said NNPC should do everything within its reach to ensure that the last fuel challenge is wiped out and that is exactly what we have done.”
 
Ugbamadu however said he could not provide the exact amount the NNPC is currently incurring as ‘under-recovery’ on petrol.
 
“The point is that I don’t have the figures here, but you know it varies depending on the international price of products. Except I source the figures from the PPMC (Pipelines Product Marketing Company).
 
Ughamadu said, “It is for a year. It is for 2018. That is another reason why we are not going to see queues during the Yuletide and beyond because we are augmenting what is imported with our local production. So, Nigeria will not experience fuel shortage this festive period.”The corporation’s spokesperson said it was unfortunate for the Senate to set up an investigative panel on the NLNG dividend as the NNPC controlled the largest stake in the gas company.
 
 
Source: The Ripples
The Nigerian National Petroleum Corporation (NNPC) has said its crude oil and gas export sale in August 2018 was $470 million, indicating an increase of about $78 million when compared with July oil and gas export figures of $391.91 million.
 
In a statement by NNPC Group General Manager, Group Public Affairs, Ndu Ughamadu, the figures were contained in the corporation’s Monthly Financial and Operations report for August 2018 released on Wednesday in Abuja.
 
The report, which is the 37th in the series, indicated that crude oil export sales contributed $337.62 million, representing 71.83 percent of the dollar transactions compared with $283.43 million contribution in the previous month.
 
It stated further that the export gas sales during the period amounted to $132.38 million, adding that the August 2017 to August 2018 crude oil and gas transactions involved crude oil and gas export worth $5.26 billion.
 
The NNPC report explained that based on the above sales figures, a total export receipt of $450.24 million was recorded in August 2018 as receipt against $382.65 million in July 2018.
 
Contribution from crude oil during the period amounted to $336.43 million, while gas and miscellaneous receipt stood at $101.33 million and $12.48 million, according to the report.
 
A further breakdown of the figures showed that out of the export receipts, $142.31million was remitted to the Federation Account, while $307.93 million was remitted to fund the JV cost recovery for the month of August, 2018 to guarantee current and future production.
 
The state-owned oil firm said the total export crude oil & gas receipt for the period August 2017 to August 2018 stood at $5.23 billion out of which $3.74 billion was transferred to JV Cash Call as first line charge and the balance of $1.49 billion paid into the Federation Account.
 
On Naira payments to the Federation Account, the report informed that NNPC transferred N128.40 billion into Account for the month under review. It also explained that from August 2017 to August 2018, the Federation and JV received N879.02 billion and N651.4 billion respectively.
 
Providing insight into the corporation’s remittances to the national treasury, the NNPC explained that the Federation Crude Oil & Gas Revenue, Federation Crude Oil and Gas lifting, are broadly classified into Equity Export and Domestic crude which are lifted and marketed by corporation and the proceeds remitted into the Federation Account.
 
It informed that Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into the Federation Account domiciled in Central Bank of Nigeria (CBN).
 
The corporation explained that domestic crude oil of 445,000 barrels per day was allocated for refining to meet domestic products supply, and payments were effected to the Federation Account by NNPC after adjusting crude & product losses and pipeline repairs & management costs incurred during the period.
 
 
Source: The Ripples
The Russian Federation and the United Arab Emirates (UAE) have expressed their readiness to expand their scope of partnership with the Nigerian National Petroleum Corporation (NNPC).
 
In a statement by NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the corporation said the partnership will be in the upstream, midstream, downstream and services sectors to further boost their various economies.
 
Speaking after a working visit to the Group Managing Director of the NNPC, Maikanti Baru, the Russian Federation Ambassador to Nigeria, Alexey Shebarshin, said the proposed synergy was for the betterment of citizens of both nations.
 
He added that the visit was to consolidate the collaboration and partnership with the state oil firm in ensuring the growth and development of the Nigerian oil and gas industry for collective interests.
 
The statement quoted him as saying, “With deep thanks and appreciation of further cooperation between the Russia Oil and Gas Companies and NNPC that will bring positive results of our joint cooperation.”
 
Shebarshin said the two countries have had a long history and would continue to expand their business interests as part of efforts to improve the standard of living of citizens.
 
Speaking in a similar vein during his courtesy call to Baru, the Ambassador of the United Arab Emirates (UAE), Obaid Mohammed Aitaffag, said his country would continue to partner the corporation in the development of the downstream and services sector of the petroleum industry.
 
“It was a pleasure to meet the NNPC team led by Dr. Baru. I hope that our discussion brings closer ties between UAE and Nigeria in the areas of Oil and Gas,” Aitaffag said.
 
It would be recalled that the Russian Federation, as an oil producing nation, joined other countries that make up the Organization of the Petroleum Exporting Countries (OPEC) in the landmark declaration of cooperation to stabilize global supply of oil to the international market.
 
 
Source: The Ripples
The Nigerian National Petroleum Corporation (NNPC) and some companies in the oil and gas sector of the country have failed to remit a total revenue of $22.06 billion and N481.75 billion to the Federation Account.
 
This is contained in the latest report by the Nigerian Extractive Industries Transparency Initiative (NEITI) on Monday.
 
The report, which summarises unremitted revenue, losses and unreconciled differences from operations and transactions in the oil and gas sector, indicates that only NNPC defaulted to the tune of $19.04 billion and N424.57 billion.
 
It further shows that oil and gas producing companies were still withholding $152.69 million and N5.2 billion; companies involved in offshore processing contracts, $498.6 million; and Nigerian Petroleum Development Company (NPDC), $2.38 billion and N51.95 billion.
 
The report puts the total losses to the federation from crude oil production, processing and transportation at $3.04 billion and N60.99 billion, while unreconciled differences from the allocation, sale and remittance of proceeds from domestic crude allocated to NNPC was put at N317.48 billion.
 
In July, Ripples Nigeria reports that NNPC failed to remit a total of N198 billion to the Federation Account in 2016, an amount which brought the total under remittance of revenue from domestic crude oil sales by the corporation to over N4 trillion in the year.
 
“It was observed from the examination of NNPC report to Technical Sub- Committee of Federation Account Allocation Committee meeting held in December 2016 that accumulative total of N4,076,548,336,749.75 remained unremitted to the Federation Account by NNPC as at 31st December 2016.
 
“The total revenue unremitted as at 1st January 2016 from amounts payable into the Federation Account by NNPC was₦3,878,955,039,855.73. The sum of N1,198,138,355,860.30 was due in revenue to the Federation Account out of the total generated in 2016, however, NNPC paid the sum of N1,000,545,058,966.20 resulting in an amount withheld of N197,593,296,894.02.
 
“This brought the total amount withheld by NNPC from the Federation Account as at 31 December 2016 to N4,076,548,336,749.75,” the Auditor-General of the Federation, Anthony Ayine, stated in his 2016 annual report.
 
 
Source: The Ripples
The Central Bank of Nigeria (CBN) said it expects to maintain its tight monetary policy stance until the inflationary pressures ease towards it target band as it doesn’t see oil prices falling below $80 a barrel this year.
 
The Brent crude, against which Nigeria’s oil is priced, had hit its highest level of over $86 per barrel since November 2014 last Wednesday on the back of supply concerns in the international market ahead of United States (U.S.) sanctions on Iran’s oil sector expected to take effect next month.
 
So long as U.S. sanctions take effect on Iran in November, “I do not expect the price to close less than $80 this year,’’ CBN governor, Godwin Emefiele told reporters in London on Sunday.
 
The product, which serves as the nation’s major source of revenue, slumped from its 4-year highs during the week to close at $84.03 a barrel on Friday.
 
Rising oil prices will amount to increased revenue for the country as crude oil price in the 2018 Budget was benchmarked at $51 a barrel. This may cause an increment in capital release for the budget, resulting into excess liquidity and quickening inflation.
 
With CBN’s tight monetary policy position, interest rate among other policy rates at a relatively high levels will reduce liquidity in the Nigerian market and check demands, an intervention that would in turn moderate the macroeconomic variable.
 
The CBN continued to keep its interest rates on hold at a record high 14 percent since July 2016 to curtail inflationary pressures which had risen above its acceptable band of 6 percent to 9 percent for more than three years and accelerated in August for the first time in 19 months.
 
“The current state of tightening will continue until at least we see inflation attaining those levels that have been set” as a target, Emefiele said.
 
Emefiele said the apex bank would not relent in its intervention to support the exchange. “We will continue to intervene, we believe in a stable exchange rate regime,” he said.
 
Ripples Nigeria reports that the CBN had resisted several calls to allow the forces of demand and supply to determine the value of the Naira in the foreign exchange market. Rather, it fixed the exchange rate and continued support the local currency through its interventions.
 
These interventions, including foreign portfolio investors’ exit from emerging economies to take advantage of high yields U.S. as the US FED Reserve continued to raise its interest rate, plunged the nation’s external reserves to $43.92 billion as of October 4, 2018 from a high of $47.79 billion on July 5, 2018.
 
CBN’s spokesperson, Isaac Okoroafor, had last Wednesday affirmed that the current depletion in the nation’s foreign reserves was attributable to the two factors this media platform had pointed out.
 
While explaining that the major reason for Naira appreciation was due to the bank’s forex management strategy, which includes its support, Okoroafor had stated that, “the drop in our forex reserves is basically as a result of the capital flow reversals arising from rising interest rates in the United States.”
 
 
Source: Business Gist
The World Bank has lowered its growth forecast for Nigeria’s economy in 2018 to 1.9 percent as the growth continued to downsize in the oil and agriculture sector.
 
The latest estimate is 0.2 percent points lower than 2.1 percent growth the global financial body earlier projected for the nation’s economy in April.
 
The world bank said its decision to cut Nigeria’s 2018 growth estimate was occasioned by the reduction in the production volume of crude oil, the country’s main source of revenue, and contraction in the agricultural sector of the economy which was largely driven by the herder-farmer clashes.
 
“In Nigeria, declining oil production and contraction in the agriculture sector partially offset a rebound in the services sector and dampened non-oil growth, all of which affected economic recovery.
 
“Nigeria’s recovery faltered in the first half of the year. Oil production fell, partly due to pipeline closures.
 
“The agriculture sector contracted, as conflict over land between farmers and herders disrupted crop production, partially offsetting a rebound in the services sector and dampening non-oil growth,” the bank stated.
 
According to the National Bureau of Statistics (NBS), the oil sector of the economy contracted by -3.95 percent in the second quarter of 2018 from a year earlier, while the non-oil sector grew by 2.05 percent in real terms during the reference quarter.
 
The drop in the oil sector impeded growth in the Nigerian economy to 1.50 percent in the quarter down from 1.95 percent recorded in the preceding quarter.
 
Available statistics from NBS shows that the nation’s agricultural sector grew by 1.19 percent from a year earlier in real terms in the second quarter of 2018, representing a decrease by –1.82 percent points from the corresponding period in 2017.
 
The data further shows that Nigeria’s average daily oil production volume dropped in Q2 2018 to 1.84 million barrels per day after recording an average production volume of two (2) million barrels per day in the previous quarter.
 
The contraction in the Crude oil and Gas sectors was attributable to some production issues which, according to the Minister of Budget and National Planning, Sen. Udoma Udo Udoma, were being addressed by the Nigerian National Petroleum Corporation (NNPC).
 
But the Minister of State for Petroleum, Ibe Kachikwu, had last month noted that the decision to raise or cut production volume would be largely dependent on the prices of crude in the international market.
 
This indicates that there may soon be a rebound in the country’s crude oil production volume as the Brent crude, against which Nigeria’s oil is priced, hit its highest level of $84 per barrel since November 2014 last Monday.
 
The development was occasioned by supply concerns in the international market ahead of United States sanctions on Iran’s oil sector expected to take effect from next month.
 
 
Source: Business linking

The Institute of Chartered Accountants of Nigeria (ICAN) has revealed that the nation’s stunted economic development was attributable to unhealthy politics, poor leadership and the tussle for resources distribution at all levels of government.

ICAN President, Alhaji Razak Jaiyeola, made this revelation while speaking at the 48th Annual Conference of the institute in Abuja on Tuesday.

According to Jaiyeola, the country was yet to leverage the enormous resources which it had been endowed with to accelerate its growth.

“I will not be saying anything new if I assert that Nigeria is a great, blessed and richly endowed nation with abundant human and natural resources. What may be new is that the unhealthy politics of governance, poor leadership and tussle for resource distribution at all levels have stunted, rather than accelerated, the nation’s pace of social and economic development.

“We have not, as a people, leveraged the opportunity of our endowment to advance the cause of the nation and its people. Individual will, rather than the common good, has tended to be the driving force in politics in the last 58 years. No nation prospers under such a scenario,” Jaiyeola said.

He noted that the country’s environment was facing great degradation, impaired ecosystem, air, water and noise pollution owing to the exploration and mining of the nation’s wasting natural resources.

He said the activities were making it difficult for the environment to play its triple functions of food provider, waste assimilator and life sustainer for the present and future generations.

Also speaking, President Muhammadu Buhari said it is a collective task to build the nation, adding that while the accountants’ role remained critical in the fight against corruption, every citizen had a role to play in the fight against insecurity.

In his address, President Muhammadu Buhari said accountants had a critical role in his administration’s fight against corruption.

The President, who was represented by the Minister of Budget and National Planning, Senator Udo Udoma, stated, “Let me first say that with regard to fighting corruption, you have a special contribution to make as accountants in this regard. Your members serving as accountants and auditors can bring to bear your special skills in ensuring that books and records are properly kept.

“Working closely with the statutory agencies responsible for fighting corruption, ICAN will no doubt assist the government in its effort at fighting this national malaise.”

Also speaking at the event, the President of the International Federation of Accountants (IFAC), Rachel Grimes, said trust crisis, in which citizens had lost faith in governing institutions, had been identified across the world.

She added that it was against the backdrop that IFAC developed a strategic plan titled ‘Build Trust; Inspire Confidence’ for 2019 – 2020.

 

The Ripples...

The Nigerian National Petroleum Corporation (NNPC) has denied media reports alleging that the Nigeria Police Force (NPF) recovered $470.5 million and N8 billion of the corporation’s funds hidden in commercial banks.

It said it runs a transparent account which the Presidency, the Office of the Accountant-General of the Federation (AGF) and the Central Bank of Nigeria (CBN) were fully aware of and receive periodic status reports on balances yet to be remitted to Treasury Single Account (TSA) by commercial banks.

The Nigeria Police Force had claimed that the monies belonging to NNPC Brass Liquefied Natural Gas were hidden in some commercial banks and not remitted to the treasury single account in violation of the Federal Government’s directives.

According to the police, “The sum of Four Hundred and Seventy Million, Five Hundred and Nineteen Thousand, Eight Hundred and Eighty-Nine US Dollars and Ten Cent ($470,519,889.10) belonging to NNPC BRASS/LNG INVESTMENT hidden in some commercial banks after the directives of the Federal Government on TSA.

“The sum of Eight Billion, Eight Hundred and Seven Million, Two Hundred and Sixty Four Thousand, Eight Hundred and Thirty-Four Naira, Ninety-Six Kobo (NGN8,807,264,834.96) monies belonging to NNPC BRASS/LNG INVESTMENT, that was not remitted to TSA Account of the Federal Government was also recovered,” the Police had said in a statement.

But in a statement issued on Friday by NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the corporation said although a few commercial banks were yet to complete remittance of US dollar deposits to the TSA, it noted that it had no funds hidden in any commercial bank.

The state oil firm explained that the allegation was not only misplaced but equally misleading.

According to Ughamadu, following the implementation of TSA, the corporation had made a report to the Presidency on the failure of some commercial banks to complete transfer of US dollar deposits and a Presidential directive was issued for CBN to ensure that the funds were completely transferred to the corporation’s TSA in US dollars.

“Most of the commercial banks have since complied with the Presidential directive and completed transfer to the Corporation’s Treasury Single Account in US dollars, including the reported $470.5 million.

“On the purported recovery of N8 billion by the Nigeria Police Force, the Corporation is not aware of any change in the subsisting Presidential directive to the effect that all of the US dollar balances must be transferred to NNPC’s CBN Treasury Single Account in US dollars in addition, no such funds have been deposited into the Corporation’s CBN Treasury Single Account.

“Consequently, NNPC’s record of the US dollar funds still yet to be transferred by a few commercial banks cannot reflect the said recovery.

“While the Central Bank of Nigeria executes the Presidential directive to ensure complete transfer of US dollar funds to the Corporation’s CBN TSA, it is pertinent to reiterate our earlier position that NNPC will resist every attempt to subject these funds, which have been in the full view of Government, to five percent whistle blowing fees as this would be unreasonable and a sheer waste of public funds,” he said.

 

The Ripples

The Nigerian National Petroleum Corporation (NNPC) has said it recorded a trading surplus of ₦17.16 billion in April.
 
In a statement on Thursday in Abuja by the corporation’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the surplus indicated a ₦5.43 billion improvement, representing 46.29 percent on the trading surplus recorded in March.
 
According to him, the trading surplus was part of the highlight of the corporation’s Monthly Financial and Operations Report for April, 2018.
 
He said the report is the 33rd edition since NNPC commenced the publication of its financial and operations report on a monthly basis as part of efforts to instill a culture of transparency and keep stakeholders and the general public informed of its activities.
 
The NNPC boss added that the trading surplus was achieved through a combined higher performance by the upstream, midstream (refineries) and downstream sectors as well as a reduction in Corporate Headquarters’ operational expenditure.
 
He quoted the report to have said, “This enhanced performance is attributable to robust revenues from sales of crude oil and petroleum products by NPDC and PPMC as well as the upsurge in refineries’ performance, particularly in the Port Harcourt Refining Company (PHRC).”
 
On the gas production and supply front, the report indicated that the average daily production for April, 2018, stood at 8,054.46 billion cubic feet (bcf), out of which an average of 835.27 million metric standard cubic feet (mmscf), equivalent of 3,283 megawatts of electricity, was supplied to the power sector daily during the period under review.
 
“The result when compared with that of April, 2017, implies an increase of 496mw of power generated relative to same period last year,” Ughamadu said, quoting the report.
 
It further showed that in the period under review, a total of 1.61 billion litres of Premium Motor Spirit (petrol) was supplied by NNPC in furtherance of the zero fuel queue policy of the Federal Government.
 
The NNPC said it recorded a 48.21 percent reduction in the rate of pipeline vandalism which fell to 166 from 224 vandalized points in the previous month.
 
According to the report, the Aba-Enugu pipeline segment accounted for 78 vandalized points, representing 84.78 percent of total vandalized points on the nation’s network of products pipelines.
 
 
Source: The Ripples

French oil major, Total and the Nigerian National Petroleum Corporation (NNPC) as well as their project partners will launch Egina crude at this year’s Asia Pacific Petroleum Conference (APPEC) in Singapore later this month.

This was contained in a copy of an invitation to the conference on Wednesday, Reuters reports.

The Singapore’s APPEC, scheduled to hold between September 24 – 26, is one of Asia’s biggest annual petroleum industry gatherings, during which producers, refiners and merchants sign and renew supply deals and exchange information.

Last month, a $3.3 billion worth Egina Floating Production, Storage and Offloading (FPSO) had sailed from LADOL Island in Lagos to its oil field located in Oil Mining Lease (OML) 130 located some 130 kilometers off the coast of Nigeria at water depths of over 1,500 meters.

The oil field was projected to raise Nigeria’s crude oil production by 200,000 barrels per day, an approximate of 10 percent of the country’s total oil production output, when it comes on stream in December.

The project, built by Samsung Heavy Industries of Korea (SHI) for the Egina oil field was primarily operated in Nigeria by the global oil giant, Total, at a cost of $16 billion.

In October last year, the Egina FPSO had sailed from the quayside at Samsung Yard in Geoje, South Korea, before arriving at the Samsung Yard (SHI-MCI FZE quayside) in Lagos in January 2018.

Thereafter, it was fabricated and integrated locally at the yard by Samsung Heavy Industries Nigeria Limited to accelerate the pace of Nigeria’s industrial fabric, transfer of technology and make the nation the hub of FPSO integration in Africa.

The FPSO, weighing close to 220,000 metric tons and measuring 330 meters long by 60 meters wide, is reputed as the largest ever built by Total.

Also, Saudi Arabia’s state-owned oil giant Aramco will team up with South Korean refiner S-Oil Corp for a joint reception at the conference, according to two industry sources.

Aramco became the single largest shareholder of S-Oil in January 2015, part of its drive to expand its footprint in the downstream petroleum sector and establish commercial offices in global oil trading hubs like Singapore.

   

Vanguard...

Page 1 of 3

  1. Opinions and Analysis

Calender

« November 2018 »
Mon Tue Wed Thu Fri Sat Sun
      1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30