Tag: NNPC Limited

  • PMS pricing: Okupe chides NNPCL, marketers

    PMS pricing: Okupe chides NNPCL, marketers

    A former presidential spokesman, Dr Doyin Okupe, has urged the Nigerian National Petroleum Company Limited (NNPCL) and oil marketers not to make President Bola Tinubu look bad before Nigerians.

    Okupe, in a statement on Friday titled: ‘Dangote Refinery, NNPCL, Oil Marketers and the Voodoo of PMS Pricing’, urged all oil stakeholders to be sensitive to the plights of Nigerians

    According to him, the emerging scenario in PMS pricing appears to aim at making the government, which is no longer involved in petroleum pricing, look bad and indirectly heap undeserved blame on President Tinubu.

    “The opaqueness and lack of transparency in determining the appropriate price of PMS is a national embarrassment.

    “The insensitivity of these agencies to the suffering of Nigerians is inexplicable. The FOB (Free On Board) price of PMS at Rotterdam (as of Friday) is $0.541 per litre, which is N927.82 at N1,715 to $1.

    “The landing cost of PMS in Lagos is N978 per liter. Local refineries save the cost of freight to and from European ports, which comes to approximately N85 per liter of PMS.

    “From every empirical but accurate calculation, no local refinery should sell above the FOB price at Rotterdam less savings from freight charges of N85, which is N842.83,” he said.

    Okupe, a former Director-General of Peter Obi 2023 Presidential Campaign Council, tasked NNPCL, Dangote Refinery, and oil marketers to contradict his position.

    The News Agency of Nigeria (NAN) recalls that barely three weeks after raising the price of Premium Motor Spirit, popularly known as petrol, NNPCL  adjusted the pump prices of the commodity, upwardly.

    The national oil firm raised the retail price of petrol in Abuja from N1,030 to N1,060 per litre.

    In Lagos, NNPCL stations increased the unit price of the commodity from N998 to N1,025 per litre.

  • BREAKING: NNPC opens up on Port Harcourt helicopter crash

    BREAKING: NNPC opens up on Port Harcourt helicopter crash

    The Nigerian National Petroleum Company (NNPC) Limited has officially opened up on the helicopter crash that occurred along the waterways in Port Harcourt, Rivers State.

    TheNewsGuru.com (TNG) reports the helicopter crash occurred today, 24th October 2024, at about 11:22 am along the waterways in Port Harcourt.

    The helicopter, a Sikorsky SK76 with registration 5NBQG and operated by East Wind Aviation, was en-route from Port Harcourt Military Base (DNPM) to the NUIMANTAN oil rig.

    In a statement, Olufemi Soneye, Chief Corporate Communications Officer of NNPC Limited disclosed a search and rescue mission is currently ongoing.

    Soneye confirmed in the statement that there were 8 persons on board the helicopter and that so far, three (3) bodies have been recovered.

    The statement reads: “On the 24th of October 2024, about 11:22am, we lost contact with the Helicopter – Register Number: 5NBQG, engaged by NNPC Limited, that took off from Port Harcourt NAF Base en route the FPSO – NUIMS ANTAN. The helicopter was operated by East Winds Aviation.

    “There were 8 persons on board (6 passengers and 2 crew members). The appropriate authorities have been contacted, including the Ministry of Aviation, who have since issued a press statement. Search and rescue missions are currently ongoing. So far, three (3) bodies have been recovered.

    “We shall continue to monitor the situation and provide regular updates as the events unfold. Our prayers are with the passengers, crew and their respective families at this very difficult time. We assure that we will continue doing everything possible to support the ongoing search and rescue operation”.

  • Petrol price hike: NLC reacts as fuel queues resurface

    Petrol price hike: NLC reacts as fuel queues resurface

    Fuel queues have resurfaced across Lagos following an increase in the pump price of Premium Motor Spirit (PMS), popularly known as petrol, by the Nigerian National Petroleum Company (NNPC) Limited and other marketers.

    Many filling stations, including those along Ikorodu Road, Ikeja and Bariga, have temporarily closed due to the price hike. A correspondent who monitored the situation reports that pump price at NNPCL stations had risen  to N998 per liter, while other marketers were charging even more. Northwest filling stations are now selling at N1,000, Hyden Petroleum at N1,100 and NIPCO at N1,050.

    This marks the third price increase in two months, following the start of petrol purchases from the Dangote Oil Refinery on the outskirts of Lagos. NNPC Ltd. has raised petrol prices from N855 per liter to N998 in Lagos, with prices reaching N1,003 in North-Eastern states. On Sept. 3, the fuel price rose from N568 in Lagos, the lowest at that time, and N617 in other regions to a minimum of N855.

    Dr Ayodele Oni, an energy lawyer, suggested that the government could foster competition by promoting the establishment of modular refineries and revamping existing national facilities. Oni, also a partner at Bloomfield Law Practice, said that increased competition among refiners could lead to better prices for consumers.

    To stabilise exchange rate fluctuations, Oni recommended that the government partially defend the Naira with foreign exchange in the short term. For the long term, he called for policies that encourage exports and foreign direct investment to boost dollar inflows.

    Oni also advised diversifying the economy into manufacturing and agriculture to reduce import costs. He proposed exploring alternative fuel sources such as Compressed Natural Gas (CNG) and suggested that citizens take advantage of government incentives for CNG vehicle conversion.

    Oni, therefore, urged the government to introduce mass transit systems to reduce the impact of fuel price fluctuations on the populace. According to him, Nigeria is now operating under a deregulated regime, where prices are influenced by market forces, including exchange rates.

    He attributed the recent price increases largely to the rising dollar exchange rate against the Naira, as the petroleum sector operates in a dollarised market. He expressed hope that the crude-for-Naira arrangement between NNPC and the Dangote Refinery would help stabilise the Naira against the dollar and alleviate pricing pressures.

    Petrol hike will further deepen poverty, jobs lost – NLC

    Meanwhile, the Nigeria Labour Congress (NLC) has said that the latest increase in the pump price of petrol will further deepen poverty as production capacities dip. The Congress added that the increase would lead to more jobs lost with multidimensional negative effects, and therefore, demanded its immediate reversal.

    NLC position is contained in a statement signed by its President, Mr Joe Ajaero on Wednesday in Abuja, titled, “What next after increase in pump price?”. The labour leader said the previous increases had not produce any good result, rather, people only got poorer.

    He said the Congress was dismayed by the latest increase in the pump price of petrol without commensurate capacity of Nigerians or mitigatory measures.

    “Even following the logic of market forces , we find it an aberration that a private company (NNPCL) is the one fixing prices and projecting itself as a hegemonic monopoly. We challenge the government to go to the drawing board and present us with a blueprint for an inclusive economic growth and national development instead of this spasmodic ad hocism and palliative policy.

    “It needs no stating the fact that the latest wave of increase has grossly altered the calculations of Nigerians once again at a time they were reluctantly coming to terms with their new realities,” he said.

    It would be recalled that the Nigerian National Petroleum Company Limited(NNPCL) had raised the pump price of petrol  by 14.8 per cent to N1,030 per litre from N897 across its retail outlets in the FCT. Earlier in September, the NNPCL had increased the price of the product from N615 to N897.

  • BREAKING: NNPCL again increases fuel pump price [SEE NEW PRICE] 

    BREAKING: NNPCL again increases fuel pump price [SEE NEW PRICE] 

    The Nigerian National Petroleum Company (NNPC) Limited has again jerked up the pump price of Premium Motor Spirit (PMS), also known as petrol, across its retail outlets nationwide.

    TheNewsGuru.com (TNG) reports NNPC Limited jerked up the price of the product to as high as N1,030 per litre in Abuja, as observed in the federal capital territory (FCT) on Wednesday.

    In Lagos State, it was observed that the price of the product increased to N998 per litre. NNPC had increased the pump price of petrol to N897 per litre set in September.

    This is coming after NNPC announced that it will no longer be the sole off-taker of petrol from Dangote Refinery, and that marketers can now negotiate prices directly with the refinery.

    The latest price increase makes it the second time the pump price of petrol has been hiked in the past month. NNPC had in September increased the pump price of petrol from N615 per litre to N897.

    Earlier this week, NNPC announced it is ending its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.

    This means the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery.

     

    Details shortly…

  • Petrol supply: IPMAN seeks independence from NNPC’s monopoly

    Petrol supply: IPMAN seeks independence from NNPC’s monopoly

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Federal Government to  allow its members to source direct supply of petroleum products to ease the pressure in the sector.

    Mr Chinedu Anyaso,  Chairman of IPMAN, Enugu Depot in charge of Anambra, Ebonyi and Enugu states, said this in his 2024 Independence  message  on Tuesday in Awka.

    Anyaso noted that sourcing and pricing of products were determined by the Nigerian National Petroleum Company Ltd.

    “As it is today, we are selling according to the price we are getting the products, there is not much we can do to influence the major variables of price and availability.

    “IPMAN controls about 85 per cent of retail outlets in the country, so we are in a position to play greater impacts in the reforms going on in the sector.

    “If the sector is further liberalised to allow IPMAN participate as major stakeholders, products will definitely become more available and price will be cheaper,” he said.

    Anyaso said the national leadership of IPMAN was already holding strategic talks with the management of Dangote Refinery to secure direct supply from the company.

    He said sourcing products directly from the company would reduce price.

    Anyaso said IPMAN had visited the Port Harcourt Refinery and could confirm that serious work was going on to bring the facility back to  operation.

    He expressed optimism that lifting of product would commence there in no distant future.

    He, however, appealed to the general public to understand the role of IPMAN in the ongoing challenge in the sector.

    Anyaso added that marketers were negatively affected by the challenge in the sector in terms of reduced sales and profitability.

    The IPMAN chairman urged Nigerians to have faith in the country, noting that there would be light at the end of the tunnel.

    He assured Nigerians that its members would continue to serve them to the best of their ability within the extant regulatory environment.

  • NNPC and the ‘Unoka’ syndrome – By Pius Mordi

    NNPC and the ‘Unoka’ syndrome – By Pius Mordi

    You have to feel for today’s generation. Of all the deprivation inflicted on them by the by the chain of failed leadership in Nigeria, the most severe is denying them access to the works of first generation literary giants Nigeria gave to the world. In my growing up days, we did not have to wait until preparing for WAEC before having to read novels that shaped our world view on leadership and lack of it. Before pivoting to the various areas of academic specialisation on moving to the old Class 4, every secondary student had to read great literary works like Chinua Achebe’s Things Fall Apart, No Longer At Ease and A Man of the People. That is if other great works like George Orwell’s Animal Farm and numerous others are not factored in.

    I wonder if secondary school students are being given the privilege of reading such great literary works. Can the title of this piece resonate with them? Unoka was one of the less celebrated characters of Things Fall Apart. He was Okonkwo’s father, who died ten years prior to the opening of the novel. Although Unoka is not physically present in the novel, he played an important role in Okonkwo’s memory. Ever since he was a child, Okonkwo felt deeply ashamed of his father.

    Unoka was afraid of blood and violence and had no interest in gaining a title in his village. He was lazy and unwilling to work for a living. Characterized as a tall, thin man with a slight stoop, Unoka was Okonkwo’s father. He appeared “haggard and mournful except when he was drinking or playing his flute.” Unoka was an ill-fated man. He had a bad ‘chi’ or personal god, and evil fortune followed him to the grave, more like to his death, for he could not enjoy the privilege of being buried in a grave.

    A foil to Okonkwo, Unoka was not a successful or respected man and specialised in accumulating debt he never repaid. Achebe told of Unoka’s wall where he marked the loans he collected from his contemporaries. And when any of his creditors came to remind him of the debt he owed, he would point to the wall to prove to the creditor that he is not the only one he is owing or the first. The despondent creditor would be dismissed with the regular promise that the debt would be paid as soon as he got the money. Unoka never got the money nor paid his creditors.

    Unoka did not provide for his family and Okonkwo grew up without having enough to eat. Because of Unoka’s personality, Okonkwo grew to resent him.

    Unoka was irresponsible. He was poor, lazy, and neglectful of his wife, and he did not plan for the future. During his life, he never gained status or respect from the villagers. Bad fortune followed Unoka, even to his death. He died of swelling in his stomach and limbs — an affliction not acceptable to ‘Ani’, the earth goddess. He, therefore, could not be buried properly, so he was taken to the Evil Forest to rot, making Okonkwo even more ashamed of his father.

    Okonkwo lived the opposite of Unoka by being “a wealthy farmer and had two barns full of yams” and was hardworking. He was respected by elders and kings, and he considered himself their equal. While Unoka was a dream, Okonkwo was a man of action and worldly success.

    There is so much in common between Unoka and the Nigerian National Petroleum Corporation (NNPC). In the latest effort in dressing the failed state oil behemoth in borrowed robes, ‘Limited’ was added to its nomenclature in a deceitful arrangement that created the false impression that it is a limited liability company. At the time NNPC was established in April 1977, other oil producing countries also set up their own state oil companies. About the time NNPC was established, Saudi Arabia’s Aramco and Brazil’s Petrobras also came on stream with similar mandates.

    All three companies were the dominant players in their respective country’s oil sectors and are among the top three oil producing countries in each of their respective regions. However, this is where the similarities end, as Nigeria’s oil company has not been able to compete with these companies in terms of profits or to even refine and supply products to its citizens.

    Just like Unoka, NNPC has been irredeemably irresponsible, poor, lazy, and neglectful of its mandate, and never planned for the future. NNPC has never been successful or respected and specialised in accumulating debt it could ever repay. While its contemporaries – Aramco and Petrobras – blossomed, attracted investments, managed state-owned refineries and built additional ones while making refined products regularly available in their countries, NNPC presided over the progressive decline of Nigeria’s oil industry. Again, just as Unoka, NNPC has been unwilling to work for a living. It has not gained status or respect from the international community. NNPC has had a bad ‘chi’ and evil fortune stalking it and will ultimately shepherd it to its looming grave.

    Chief Olusegun Obasanjo usually tells the story of how he bought 19 new general cargo ships for the now liquidated Nigerian National Shipping Line (NNSL) as military head of state. When he returned years later as elected president, NNSL was no longer there. Sani Abacha had got exasperated with its poor state and liquidated it.

    Actually, NNPC has fared much worse. It superintended over the failure of four modern refineries built and handed over to the behemoth to manage. For more than 25 years, the four refineries in Warri, Kaduna as well as the two in Port Harcourt have been moribund. NNPC has bequeathed to Nigeria a fraudulent regime of petrol subsidy through which billions of dollars are fleeced out of the national economy every year being the sole importer of refine products.

    Now that the long expected refinery built by Aliko Dangote is on stream, NNPC wants to be the sole buyer for delivery to independent marketers so it can sustain its fraudulent pricing template. On the other hand,  its contemporaries have become global conglomerates involved in all chains of the oil industry.

    When Unoka died, from his ashes sprang a warrior, achiever, a man of honour in Okonkwo. NNPC has to die for Nigeria’s oil industry to survive and tread the path of growth. NNPC has been pampered for too long. It cannot and can never be productive. It is too steeped in the rot it created for itself. Bury NNPC. An Okonkwo may probably arise.

  • Why Nigeria is due for new Constitution – Anglican Primate

    Why Nigeria is due for new Constitution – Anglican Primate

    Archbishop Henry Ndakuba, the Primate of the Church of Nigeria, Anglican Communion, has said Nigeria is due for a new Constitution, which he stressed should be made by the sovereign assembly of the people of the nation to replace the current 1999 Constitution as amended.

    TheNewsGuru.com (TNG) reports Archbishop Ndakuba, who said this on Thursday, while inaugurating a standing committee meeting of the Church, stressed the new Constitution, he urged should be people-oriented, is required to address the nagging issues bedevilling the country.

    Ndakuba said the National Assembly (NASS) had done well with the several constitutional amendments, saying that Nigeria was due for a new Constitution, which will take into consideration the concerns already expressed in the Sovereign National Conferences.

    The cleric said that the various calls for the restructuring of Nigeria should be considered as well, as shying away from doing it was not helping the nation.

    No government can stop people who are hungry from protesting – Ndukuba

    Speaking further, Archbishop Ndakuba said the recent #EndBadGovernance protest was a clear indication that the people were tired of failed promises by government to stem the rising cost of living, which had imposed severe hardship on most households in the country.

    Ndakuba said that the protest was a clarion call to governments at all levels, especially at the Federal Government, to heed the cry of the people.  According to him, government should not victimise anyone, as no government can legislate or stop people who are hungry from protesting.

    He said that the epileptic power supply, in spite of the privatisation of the power sector and tariff reviews, the astronomical rise in the cost of petroleum products had made life much more difficult.

    Primate seeks state of emergency on social welfare

    Archbishop Ndakuba also on Thursday called for a state of emergency on social welfare in the country while urging the National Assembly to criminalise delay in pension payment. He said that there was urgent need for special programmes for the most vulnerable segments of the society, particularly, the unemployed and the aged.

    The cleric decried the continuous verification of pensioners and the none observance of the provision of the Constitution that mandated review of pension, every five years.  He commended President Bola Tinubu and all Nigerian workers on the signing into law of the N70,000 new minimum wage.

    Ndakuba, however, called on the government to extend the scheme to cover pensioners, many of whom are living on starvation wages.

    “We urge the National Assembly to criminalise the non-payment of pensions to entitled persons as and when due. Attention should also be paid to the most vulnerable segments of the society, particularly, the unemployed, the aged, young unemployed or skilled male and female adults.

    “The latter is the engine room of every society. There is therefore, an urgent need for an articulation of appropriate policy and programmes to cater for this often-forgotten segment of the population or imperil the future of the country.

    “When you see the numbers on our streets, you will agree that the need is urgent. A declaration of emergency in social welfare in Nigeria may not be out of place,” he said.

    The cleric urged the Federal Government to prioritise the interest of Nigerians in the ongoing engagements between Dangote Refinery and NNPCL.

    Ndakuba commended the Supreme Court’s pronouncement on Local Government Autonomy, saying that there would be a multiplier effect in education, health, and food security across the all LGAs of the nation.

    He said that it should also be able to arrest the rural-urban migration, calling for a whole-society approach in monitoring its implementation, as the project should not be left in the hands of politicians alone.

  • Only NNPC will buy Dangote petrol – Minister of Finance

    Only NNPC will buy Dangote petrol – Minister of Finance

    The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun has revealed that only the Nigerian National Petroleum Company (NNPC) Limited will buy the Premium Motor Spirit (PMS) produced by the Dangote Refinery.

    TheNewsGuru.com (TNG) reports Edun revealed this at a news conference in Abuja on Friday while disclosing that the Dangote Refinery will begin the distribution of PMS, popularly known as petrol, on Sunday.

    Noting that the product would be trade in Naira, Edun, who was represented by the Executive Chairman, Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, at the news conference, explained that after NNPC buy from Dangote Refinery, the firm will then sell to various marketers.

    “Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker. PMS will only be sold to NNPC. NNPC will then sell to various marketers for now,” he said, while adding that all associated regulatory costs (NPA, NIMASA, etc.) would also be paid for in Naira.

  • NNPC, Chevron conclude conversion of assets into PIA terms

    NNPC, Chevron conclude conversion of assets into PIA terms

    In line with the Petroleum Industry Act (PIA) 2021 provisions of transiting assets from the Petroleum Profit Tax (PPT) into PIA terms, the NNPC Ltd. and its Joint Venture (JV) partner, Chevron Nigeria Ltd (CNL), have concluded the conversion of five of its JV assets into the PIA terms.

    Under the new PIA regime, all existing Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) would be automatically converted to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon their expiration.

    Nonetheless, an option of voluntary conversion is provided for holders of OPLs and OMLs (Operator, Licensees or Lessees) under the erstwhile Petroleum Profit Tax (PPT) regime. The PIA terms are generally perceived as more investor-friendly, compared to the erstwhile PPTA terms.

    During a brief ceremony held at the NNPC Towers on Monday, the two partners signed documents on the conversion of five (5) OMLs into four (4) PPLs and twenty-six (26) PMLs, in line with the new PIA terms, marking a significant step towards increasing domestic gas supply and expanding global market presence.

    Speaking at the occasion, Group CEO NNPC Ltd., Mr. Mele Kyari, described CNL as one of the most reliable partners for NNPC Ltd. “Over the years, Chevron has been a partner of choice that has not contemplated completely divesting/exiting (oil production in) the shallow water and we are proud of them,” he added.

    Kyari assured CNL that NNPC Ltd would sustain its partnership with the JV partner to create more value for both parties and expand Nigeria’s footprints in the domestic and export gas markets.

    He commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its exemplary role in midwifing the conversion.

    The Director, Deepwater and Production Sharing Contract (PSC) of CNL, Mrs. Michelle Pflueger who stressed the significance of the conversion for both companies, affirmed CNL’s long-standing commitment to the assets.

    Also speaking, NNPC Ltd.’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, highlighted the advantages of the PIA terms over the previous PPT terms, noting that the conversion was a strategic move towards the successful implementation of the PIA.

    In his remarks, NNPC Ltd.’s Chief Upstream Investment Officer, Mr. Bala Wunti, noted that the assets conversion is expected to significantly boost crude oil production, with the two partners focusing on attaining the 165,000 barrels of oil per day (bopd) production target by year-end, 2024.

    He emphasized the continued importance of CNL’s operational philosophy in maintaining network stability and facilitating gas supply especially to the domestic market.

  • N100 million fraud: EFCC arraigns fake NNPC Director

    N100 million fraud: EFCC arraigns fake NNPC Director

    The Kaduna Zonal Directorate of the Economic and Financial Crimes Commission (EFCC) has arraigned one Ibrahim Nuhu Shuaibu before Justice Darius Khobo of the Kaduna State High Court, sitting in Kaduna State for fraud.

    Shuaibu is being prosecuted on a seven-count charge bordering on criminal breach of trust, impersonation and obtaining by false pretence to the tune of N100 million.

    Count one of his charge reads: “That you, Nuhu Ibrahim Shuaibu (a.k.a Ishaku Abdulrazak) (M) and lIya Garba (now deceased) sometime in 2017 in Kaduna within the judicial division of this honorable court did conspire between yourselves to do an illegal act, to wit: obtaining money under false pretence and thereby committed an offence contrary to Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006 and punishable under Section 1(3) of the same Act.”

    Another reads: “That you, Nuhu Ibrahim Shuaibu (a.k.a Ishaku Abdulrazak)(M) sometime in 2018 at Kaduna within the judicial division of this honorable court, with intent to defraud, obtained the total sum of N47,050,000.00(Forty Seven Million and Fifty Thousand Naira) from one Faisal Safiyanu, when you claimed to supply him petroleum products, which pretence you knew to be false and thereby committed an offence contrary to Section 1(1)(a) of the Advance Fee Fraud and Other Fraud Related Offenses Act 2006 and punishable under Section 1(3) of the same Act.”

    He pleaded “not guilty” to all the charges when they were read to him, prompting the prosecution counsel, M. Lawal to urge the court to fix a trial date. His counsel, AbdulKareem Audu failed to file a bail application.

    Justice Khobo afterwards ordered the defendant to be remanded in the custody of the EFCC.

    Shuaibu’s journey to prosecution started  sometime in 2017 when he presented himself to his victim as NNPCL’s  Group Executive Director and promised to assist him procure over 2000 litres of petroleum products for which the victim transferred the agreed cost to his bank accounts in tranches. Shuaibu failed to fulfil his own part of the bargain after receiving payment and failed to refund his victim his money.