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Tag: NNPC Limited

  • Fuel scarcity: Issues behind looming petrol price hike

    Fuel scarcity: Issues behind looming petrol price hike

    On Sunday, 1st of September 2024, the Nigerian National Petroleum Company (NNPC) Limited prepared Nigerians for sleepless nights after releasing a terse statement conceding financial constraints, and as a result, cannot guarantee sustainable fuel supply across the country.

    The statement released by NNPC Limited, signed by its Chief Corporate Communications Officer, Olufemi Soneye, quickly sent a signal that the Nigerian government-owned oil firm is scheming to hike the pump price of petrol once again.

    The statement reads in part: “NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply”.

    As a result of the financial strain, NNPC, hitherto the major importer of fuel in the country, disclosed that it would return to assuming its role as the supplier of last resort, quoting the Petroleum Industry Act (PIA). In line with this, the company noted it would rather “collaborate with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide”.

    What is the implication? The statement released by NPPC implies that the company is pushing the responsibility of making the petroleum product available to independent marketers.

    Note that NNPC in partnership with international oil companies export Nigeria’s crude oil to foreign countries for refining. The refined products, mainly Premium Motor Spirit (PMS), otherwise known as fuel or petrol and Automotive Gas Oil (AGO), popularly known as diesel, are then imported into the country by the same NNPC as the major importer, and a number of independent oil marketers.

    Recall that President Bola Tinubu announced the removal of subsidy payments from PMS during his inaugural address on May 29, 2023. Subsidy payments had since been removed from AGO. The Chief Financial Officer of NNPC Limited, Alhaji Umar Ajiya recently explained the position of President Tinubu when he said “no marketer has received any money from the company by way of subsidy”. If the NNPC is well understood, the fuel subsidy deal is now operating between the federal government and NNPC Limited.

    However, the NNPC in its audited financial statements for the year ended 31 December 2023 did note that the cost of importing PMS is usually much higher than the regulated price and that the burden for energy security reasons, and all associated costs, is on the federal government. The difference between the actual landing cost of the product and the regulated price is known as under recovery or shortfall or fuel subsidy, a deal that is now between the FG and NNPC.

    Meanwhile, the administration has instructed NNPCL cannot sell petrol above a certain regulated price. Since some independent oil marketers import fuel into the country, how possible is it for them to sell petrol at the regulated price? The landing cost of petrol, we are made to know, as of July, is about N1,117 per litre and the official pump price is about N600 per litre. So, if the government is paying NNPC the shortfall for the regulated price of petrol, who pays the independent marketers the shortfall?

    Notwithstanding, NNPC Limited revealed in its audited financial statements for year 2023 that the Nigerian government was yet to defray the sum of N4.8 trillion and that the government had only defrayed the sum of N649.4 billion, meaning the FG is owing the NNPC shortfalls, let alone marketers receiving compensation for under recovery.

    The audited financial statements released by NNPC Limited reveal PMS under recovery and energy security expenses grossing N3 trillion for the year ended 31 December 2023. Meanwhile, a forecast by NNPC Limited had shown that the cumulative PMS under recovery from August 2023 will hit N6.884 trillion by December 2024.

    So, where do we go from here? NNPC is the major importer of fuel. FG directed NNPC not to sell beyond a regulated price, with the FG bearing the cost of shortfall or under recovery. NNPC is not getting payment from the FG for the shortfalls; independent marketers are not receiving payment either. A number of other oil companies import fuel, but FG doesn’t pay them the shortfall, being paid NNPC. FG confirmed no marketer has been paid fuel subsidy for a very long time. So, there is no money exchanging hands with any marketer in the name of subsidy, if we should take the NNPC and the FG seriously.

    The independent marketers must then sell fuel as determined by market forces and not as determined by any instruction of the FG. The market forces, being the landing cost of petrol and other operational costs involved in getting petrol to end users.

    Taking the recent NNPC statement into cognisance, if the major oil marketer cannot guarantee sustainable fuel supply across the country, this leaves the burden of fuel supply to the independent marketers, which many have said will worsen the prevailing fuel crisis. As a result, there will be an astronomical hike in the pump price of fuel. If you do the maths, the pump price of petrol may shoot as high as N2,000 per litre. In all, the prevailing fuel scarcity in Nigeria is set to worsen, barring any last minute intervention by the FG.

    Prevailing fuel queues have refused to cede to any intervention, especially in Lagos State and in Abuja, the federal capital territory (FCT), with the NNPC at one point, blaming the queues on the rainy season. As we cannot call out the Minister of Petroleum for the problems in the sector, we are left to blame natural disasters. But, there is no more natural disaster to blame by NNPC! Where do we go from here?

  • Petrol importation scam must be investigated – Falana

    Petrol importation scam must be investigated – Falana

    Human rights lawyer Femi Falana has said the “importation scam” around petrol must be investigated. Falana made his statement on Channels Television’s Sunday Politics programme.

    According to him, “It is high time the importation scam was investigated. I am not talking of the joke that is going on in the National Assembly. The media must help, civil society organisations must help to expose the fraud”.

    There have been reports that a $6 billion debt the Nigerian National Petroleum Company Limited (NNPCL) owes petrol suppliers has worsened petrol scarcity in Nigeria.

    The NNPCL on Sunday finally admitted the company’s “significant debt to petrol suppliers”, saying it poses a threat to the sustainability of fuel supply.

    “Once the government begins to speak about affordability and sustainanbility in response to growing queues at filling stations, there are problems,” Falana stated.

    The Senior Advocate of Nigeria said “there is no full disclosure on the part of the government” on subsidy on petrol.

    He said Nigeria can’t spend “$2.9bn to fix the refineries” yet the dates for the resumption of production at the refineries have been constantly being shifted.

    Falana threatened to sue those responsible for the fixing of state-owned refineries should they announce another postponement.

    Recently, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the landing cost per litre of petrol has made it impossible for petrol marketers to import the essential commodity just as being done by the NNPCL.

    “Right now, the landing cost of PMS is over ₦1,200, without the margin of the marketers, transportation and other logistics,” said IPMAN National Operations Controller, Zarama Mustapha.

    “NNPC sells to marketers at ₦565 or so. That means there is a subsidy of almost ₦600 to ₦700 as of now.

  • BREAKING: Fuel price hike looms as NNPC admits financial strain

    BREAKING: Fuel price hike looms as NNPC admits financial strain

    The Nigerian National Petroleum Company (NNPC) Limited has admitted to facing financial strain due to the cost of supplying Premium Motor Spirit (PMS), popularly known as fuel or petrol.

    TheNewsGuru.com (TNG) reports Olufemi Soneye, Chief Corporate Communications Officer of NNPC Limited made this known in a statement on Sunday.

    Soneye disclosed in the statement that the financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply across the country.

    The statement reads: “NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply.

    “In line with the Petroleum Industry Act (PIA), NNPC Ltd. remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide”.

    TNG reports fuel queues have refused to cede to any intervention, especially in Lagos State and in Abuja, the federal capital territory (FCT), with the NNPC at a point, blaming the queues on the rainy season.

    Industry experts had disclosed that the landing cost of petrol as of the end of July 2024 was N1,100 per litre, excluding the additional costs of transporting the product to retail outlets. The official pump price of petrol is about N600/litre. The experts in the energy sector argued how the increasing landing cost of petrol could lead to an upward adjustment of pump prices by marketers.

    Recall that the federal government had instructed the NNPC Limited not to sell PMS above “a certain regulated price” as contained in the audited financial statements of NNPC Limited released for the year ended 31 December 2023.

    NNPC in the financial statements noted that the cost of importing PMS is usually much higher than the regulated price. The company described the difference between the cost of importing PMS and the regulated price as under recovery or “shortfall”.

    Checks carried out by TNG on the audited financial statements released by NNPC Limited reveal PMS under recovery and energy security expenses grossing N3 trillion for the year ended 31 December 2023. A forecast by NNPC Limited had shown that the cumulative PMS under recovery from August 2023 will hit N6.884 trillion by December 2024.

    Further checks reveal that as of the end of December 2023, the Nigerian government was yet to defray the sum of N4.8 trillion to NNPC Limited. The government has only defrayed the sum of N649.4 billion.

    Although President Bola Tinubu announced the removal of fuel subsidy during his inaugural address on May 29, 2023, there is now overwhelming evidence that the government still spends billions on subsidy. However, the federal government had consistently denied this and the NNPC has said the FG is owing.

  • Atiku demands immediate listing of NNPC on stock exchange

    Atiku demands immediate listing of NNPC on stock exchange

    Former Vice President of Nigeria Atiku Abubakar has demanded the immediate listing of the Nigerian National Petroleum Corporation Limited (NNPCL) on the stock exchange in line with the Petroleum Industry Act.

    Atiku said this in reaction to the decision of the NNPCL to hand over the Warri and Kaduna refineries to private operators who are expected to manage and operate them.

    “The NNPCL is supposed to have been listed on the stock exchange in line with the Petroleum Industry Act. This would make the company more profitable and enhance transparency and corporate governance.

    “Currently, the NNPCL claims to be private, but this is only a ruse to fool the feeble-minded because it remains the ATM of the Federal Government. Anything short of listing the NNPCL on the stock exchange is nothing but a cosmetic development,” he added.

    He further stated that the NNPC Limited continues to provide a cover of political protection to the Tinubu government’s policy inconsistency on the payment of subsidy, raising questions about the independence that the PIA requires of the NNPC Limited as a private business concern.

    The Peoples Democratic Party (PDP) Presidential candidate said previous arrangements and concessions had not worked because of a lack of transparency in the contract award process as well as the failure of the government to attract investors.

    The former Vice President said that for such a deal to succeed at all, the Bureau of Public Enterprise (BPE) and a credible technical partner like Standard and Poor’s must be part of the process.

    Atiku added, “Former President Olusegun Obasanjo revealed recently that even Shell, one of the world’s wealthiest oil companies, rejected the offer to operate Nigeria’s refineries. This is because the NNPCL has, for years, been a cesspool of endemic corruption.

    “This is why over $20bn that has been spent on the refineries in the last 20 years has led to nowhere. It is also curious that a government that is still paying petrol subsidy is trying to make its refineries profitable. Which businessman will invest in a refinery that has been programmed to operate at a loss?”

    Atiku questioned the feasibility of the NNPC’s latest plan even as he pointed out that such arrangements in the past had not been profitable.

    He added, “The manage and operate approach has not always worked. The Manitoba Hydro International, which was handed the Transmission Company of Nigeria led to nowhere. Similarly, Global Steel Limited, which was handed the Ajaokuta Steel Company, was not able to make the facility profitable.

    “The contract was questionably revoked by the Umaru Musa Yar’Adua administration, and Nigeria ended up paying Global Steel a compensation of nearly $500m while Ajaokuta remains comatose 17 years later.”

    The Waziri Adamawa advised the NNPCL not to make the contract process opaque like it did with OVH last year, which was not only dubious but has still failed to boost the NNPCL’s petrol sufficiency as evidenced by the months long fuel scarcity.

    “In 2022, Nueoil, an unknown and newly registered company, acquired OVH and Oando filling stations. Barely four months later, NNPCL Retail bought Nueoil and took control of all its assets, including the Oando filling stations.

    “Barely eight months later, OVH turned around to take over NNPCL Retail. This convoluted transaction was done in order to hide the corruption involved. If this is the approach that the NNPCL wants to use in handing over its refineries to private hands, then Nigerians should not expect any positive development whatsoever.”

  • NNPC Limited’s new nomenclature for subsidy – By Pius Mordi

    NNPC Limited’s new nomenclature for subsidy – By Pius Mordi

    By Pius Mordi

    When Muhammadu Buhari became president in 2015 he told Nigerians that subsidy for which Goodluck Jonathan was vilified when he sought a marginal increase in petrol pump price had been removed and effected a significant price increase, it did not take long before it emerged that subsidy was still being paid. No, its not subsidy. Its under-recovery, we were told.

    In his inaugural speech on May 29, 2023, President Tinubu gleefully announced that subsidy is now a thing of the past. The announcement was followed an astronomical increase in pump price of petrol and the downward spiral in the economy rolled in ever since. As in Buhari’s time, it did not take long before it emerged that subsidy was still being paid. After a prolonged period of loud silence, NNPCL finally opened up but gave us another name for subsidy.

    “It is not subsidy, it is importation shortfall”, Chief Financial Officer of NNPC Limited, Alhaji Umar Ajiya, almost swore in insisting that nobody or organisation was paid any subsidy in 2024. So from ‘under recovery’, we now have ‘importation shortfall’ as the newest nomenclature from the oil behemoth. Illogically, it came as the opaque state oil company which recently added ‘Limited’ to its name announced a net profit of N3.297 trillion at the end of the 2023 financial year in December. Great news? Not quite.

    Jiya simultaneously announced that Tinubu has approved a request by NNPC Limited to utilise the 2023 final dividends due to the federation to pay for petrol subsidy. Nothing, absolutely nothing, will be remitted into the federation account as a result of meeting the ‘importation shortfall’. Given the report that a forecast by NNPC Limited showed that the cumulative petrol subsidy bill from August 2023 will hit N6.884 trillion by December 2024, the zero remittance to the federation account will continue well beyond December. Even the earlier approved payment of 2024 interim dividends to the federation has been cancelled by Tinubu “to help boost NNPC’s cash flow.”

    In the absence of transparency in the management of the oil and gas industry, the apparently cosmetic change in NNPC’s status will not change anything. In trying to justify the cancellation of payment of the so-called dividend to the federation account, Jiya refrained from disclosing the most fundamental figure for determining the subsidy.

    “No marketer has received any money from us by way of subsidy. What has been happening is that we have been importing PMS, which has been landing at a *certain cost price* (emphasis mine) and government tells us to sell it at half price”, Jiya stated. “Certain cost price”, quantity shipped in, insurance and the final landing cost are the factors NNPCL will never reveal.

    At the point of adding ‘L’ to NNPC, it ceased to be a government parastatal but a limited liability company registered with Corporate Affairs Commission that is supposed to operate fully without government subvention, and expected to generate profit, and plough it into the federation account. If NNPC had ceased to be a parastatal but a company that accounts to its owners, the unilateral approval given by President Tinubu to pay N3.297 trillion as subsidy without consulting the other co-owners, the 36 states, and without proper certification of how the figure was arrived at is controversial and a presidential overreach.

    “The oil and gas situation in Nigeria has been shambolic. There is a complex interplay of interests in the sector. This government has been paying subsidy.  The  refineries that are not working have made the situation convoluted. The landing cost of petrol today is over N1,000 per litre while the pump price is less than N1,000 because of subsidy. This is a loss position already to NNPCL”, Mr. Emmanuel Odiaka, a downstream operator, says.

    “The government is not helping matters with the comatose refineries that have become a cesspit of corruption, spending billions on turn-around  maintenance every year without achieving any result. The refineries have to be operational, Dangote Refinery has to fully come on stream, and there should be considerations for modular refineries  with the right market dynamics before we can heave a sigh of relief. Otherwise,  NNPCL will continue  to be in dire straight, and the fuel supply crisis will continue to bite harder”, Odiaka added, insisting that the nightmare is just beginning.

    What has been unravelled is that the much vaunted claim that Tinubu has removed petrol subsidy is a charade, the product of utter planlessness from the point the proclamation was made on inauguration day. It has become a rudderless and horrendously expensive adventure that has plunged the national economy into a cliffhanger.

    As Chiedozie Ugbechie, an engineer, pointed out, “if such decisions were taken under President Jonathan, they would have put pressure for his impeachment. Recall how the governors loyal to Tinubu and the then ACN took Jonathan’s government to court for daring saving some money under the excess crude account. Tinubu does not have power to take such a decision he just did. It’s quite an overreach and an impeachable offence. But the National Assembly has lost its independence and does not realise that it is co-equal arm of government with the quality of its leadership it has”.

    In the absence of true transparency in the management of the oil industry, it is doubtful there will be any silver lining even when the announced decision to sell crude oil to Dangote Refineries as well as the modular refineries in Naira begins in October. If NNPCL continues importing refined products and declare whatever it likes to federal government with express acquiescence of Aso Rock, it can only get worse. With perennial failed promises to rehabilitate its four refineries, NNPCL has effectively become a trading company specialising only in the importation of petrol on its own terms as a sole importer. And its regaling in it.

  • Return of fuel subsidy: FG instructs NNPC not to sell petrol beyond regulated price

    Return of fuel subsidy: FG instructs NNPC not to sell petrol beyond regulated price

    The federal government has instructed the Nigerian National Petroleum Company (NNPC) Limited not to sell Premium Motor Spirit (PMS), also known as petrol, above “a certain regulated price”.

    TheNewsGuru.com (TNG) reports this is contained in the audited financial statements of NNPC Limited released on Monday for the year ended 31 December 2023.

    Since the Nigerian government-owned oil company made the release, the audited financial statements of NNPC Limited for the year ended 31 December 2023 has become a subject of public discourse.

    NNPC in the financial statements noted that the cost of importing PMS is usually much higher than the regulated price and that the cost incurred as the energy supplier of last resort for energy security reasons, and all associated costs, shall be on the federation’s account.

    Stressing that this is in line with Section 64(M) of the Petroleum Industry Act (PIA) 2021, NNPC Limited explained in the financial statements that the difference between the actual landing cost of the product and the regulated price is known as under recovery.

    “In line with Section 64(M) of the Petroleum Industry Act (PIA) 2021, the cost incurred by NNPC Limited (Group) as the energy supplier of last resort for energy security reasons, and all associated cost, shall be on the account of the Federation.

    “The government instructed that NNPCL cannot sell its Premium Motor Spirit (PMS) above a certain regulated price. However, the cost of importing this PMS is usually much higher than this regulated price.

    “The under recovery is essentially the difference between the actual landing cost of the product and the regulated price. This balance is used to reduce the cost of sales of the Group. The corresponding entry is either used to reduce the liability due to the Federation or used as a receivable from the Federation.

    “Premium Motor Spirit (PMS) cost under recovery is recognised where there is reasonable assurance that it will be received and all attached conditions have been complied with. When it relates to an expense item, they are deducted in reporting the related expense in cost of sales,” the company stated.

    This translates to mean NNPC Limited buys petrol at a certain amount, sells it to marketers half of that amount, and on the instruction of the federal government, tells the marketers (market regulation) not to sell beyond a certain price. Meanwhile, the NNPC had said the market is fully deregulated.

    Checks carried out by TNG on the audited financial statements released by NNPC Limited reveal PMS under recovery and energy security expenses grossing N3 trillion for the year ended 31 December 2023.

    According to NNPC Limited, energy security expenses are expenses incurred by the group in fulfilling its obligations as the supplier of last resort for energy security purposes on the account of the federation in line with the provisions of Section 64(m) of the Petroleum Industry Act, 2021.

    “These amounts are receivable to the Group as they are defrayed and charged against amounts due to Federation on a monthly basis,” the company stated.

    Meanwhile, a forecast by NNPC Limited had shown that the cumulative PMS under recovery from August 2023 will hit N6.884 trillion by December 2024.

    Further checks reveal that as of the end of December 2023, the Nigerian government was yet to defray the sum of N4.8 trillion to NNPC Limited. The government has only defrayed the sum of N649.4 billion.

    “The total undefrayed cost is made up of January to May under recovery of N3.3 trillion and August to December energy security expense of N1.8 trillion,” NNPC Limited noted in the financial statements.

    However, the Chief Financial Officer of NNPC Limited, Alhaji Umar Ajiya had explained that no marketer has received any money from the company by way of subsidy, stressing that “no one has been paid kobo by the NNPC Limited in the name of subsidy”.

    Ajiya said: “No marketer has received any money from us by way of subsidy. What has been happening is that we have been importing PMS, which has been landing at a certain cost price and government tells us to sell it at half price.

    “So the difference between the landing price and that half price is what we call shortfall. And the deal is between the Federation and NNPC Limited. To reconcile, sometimes they give us money. So, there is no money exchanging hands with any marketer in the name of subsidy”.

    Nevertheless, what is obvious is that the Nigerian government is not selling petrol at the real market price determined by the landing cost. Whether it is “under recovery” as captured by the financial statements released by the NNPC Limited or “importation shortfall” as disclosed by Alhaji Ajiya, the government is yet subsidising the price of fuel.

    Although President Bola Tinubu announced the removal of fuel subsidy during his inaugural address on May 29, 2023, there is now strong indications that the government still spends billions on subsidy. However, the federal government had consistently denied this.

    From the financial statements and the subsequent comments by the CFO of NNPC Limited, the FG no longer makes fuel subsidy payments to oil marketers, but the exchange is now between the Nigerian government and the national oil company. Although the federal government still needs to come out clean with the new subsidy regime.

    TNG reports the landing cost of petrol as of the end of July 2024 was N1,100 per litre, excluding the additional costs of transporting the product to retail outlets. The official pump price of petrol is about N600/litre.

    Experts in the energy industry have argued how the increasing landing cost of petrol may lead to an upward adjustment of pump prices by marketers.

  • NNPC releases 2023 Audited Financial Statement

    NNPC releases 2023 Audited Financial Statement

    The NNPC Limited has released its 2023 Audited Financial Statement (AFS), declaring a net profit of N3.297 trillion at the close of the financial year which ended in December 2023, an increase of over N700 billion (28%) when compared to the 2022 profit of N2.548 trillion.

    In a world press conference held at the NNPC Towers in Abuja on Monday, the Chief Financial Officer of the Company, Mr. Umar Ajiya said the release of the AFS is a testament to the Company’s commitment to transparency and accountability.

    “Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya stated.

    Ajiya added that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the Company’s shareholders.

    Explaining that the NNPC Ltd. will announce its Initial Public offer (IPO) once the shareholders and Board make a decision, Ajiya also debunked claims on subsidy payment, saying the Company was only taking care of PMS importation shortfall between it and the Federation.

    Speaking earlier at the press conference, the Chairman of the NNPC Ltd. Board, Chief Pius Akinyelure said that the excellent performance came as the fruit of the PIA 2021, and the commitment of the Board, Management and staff of the company.

    Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1trn in line with PIA 2021 provisions.

    In her remarks at the briefing, the Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan said with improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism, NNPC Ltd. is targeting 2million barrels per day crude oil production by the end of the year.

    On the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Mr. Dapo Segun appealed for understanding from Nigerians, saying that the Company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges.

    It would be recalled that in 2021, NNPC declared a profit in its operations for the first time. From a loss position of N803 billion in 2018, it reduced the loss further down to N1.7 billion in 2019.

    However, in 2020, it posted its ‘first ever’ profit of N287 billion, then in 2021, it recorded a N674.1 billion profit and in 2022, the profit grew to N2.548 trillion, an unprecedented achievement in its financial performance. The N3.297 trillion profit declared for 2023 is the highest since the Company’s inception, 46 years ago.

  • It is not subsidy, it is importation shortfall – NNPCL opens up

    It is not subsidy, it is importation shortfall – NNPCL opens up

    The Nigerian National Petroleum Company Limited (NNPC Limited) has disclosed it has not paid fuel subsidy to anybody in the last nine months.

    TheNewsGuru.com (TNG) reports Chief Financial Officer of NNPC Limited, Alhaji Umar Ajiya made the disclosure on Monday in Abuja.

    TheCable had reported President Bola Tinubu gave approval for a request by NNPC Limited to utilise the 2023 final dividends due to the federation to pay for petrol subsidy. A forecast by NNPC Limited seen by the newspaper showed that the cumulative petrol subsidy bill from August 2023 will hit N6.884 trillion by December 2024, leaving the national oil company unable to remit N3.987 trillion in taxes and royalties to the federation account.

    However, Ajiya clarified NNPC Limited was only taking care of Premium Motor Spirit (PMS) importation shortfalls between the company and the federation.

    “In the last eight to nine months, the NNPC Limited has not paid anybody a dime as subsidy, no one has been paid kobo by the NNPC Limited in the name of subsidy.

    “No marketer has received any money from us by way of subsidy. What has been happening is that we have been importing PMS, which has been landing at a certain cost price and government tells us to sell it at half price.

    “So the difference between the landing price and that half price is what we call shortfall. And the deal is between the Federation and NNPC Limited. To reconcile, sometimes they give us money. So, there is no money exchanging hands with any marketer in the name of subsidy,” he said.

    According to him, credit lines are prevalent in the downstream business based on the world wide commercial system, adding that the company was in an open credit agreement with PMS suppliers in the past, with term lines agreement for payment.

    Also, Dapi Segun  the Executive Vice President, Downstream, NNPC Limited, said that establishing an open credit agreement with suppliers spoke volume of the credibility which the national oil company had built over a period of time.

    “Concerning the outstanding to the suppliers, it is not in that magnitude that has been put out, it is actually lower than the N6.8 billion.

    “What matters really is the relationship between us and our suppliers to ensure that we keep faith in making these payments to our suppliers which we have done overtime.

    “You would understand that it is not a static figure and I wouldn’t want to be quoting any figure, when we make payments it goes down, when they supply products it goes up.

    “It is a dynamic way, but the most important thing is to ensure that we continue to make PMS available across the country,” he said.

  • BREAKING: NNPC Limited declares highest profit since inception

    BREAKING: NNPC Limited declares highest profit since inception

    The Nigerian National Petroleum Company Limited (NNPC Limited) has declared N3.3 trillion profit for the 2023 financial year.

    Chief Financial Officer of NNPC Limited, Alhaji Umar Ajiya, who addressed newsmen on Monday on the development, said this was the highest profit declared by the company since inception.

    Meanwhile, NNPC Limited has declared N2.101 trillion as dividend for 2023 financial year.

    The profit declared by the national oil company for 2023 is over N1 trillion higher than the N2.548 trillion profit it recorded in the 2022 financial year.

     

    Details shortly…

  • NNPC career website breaks down after announcing recruitment

    NNPC career website breaks down after announcing recruitment

    Shortly after announcing its recruitment exercise on Friday, the career website of the Nigerian National Petroleum Company (NNPC) Limited has broken down.

    The breakdown, according to NNPC Limited, was due to unprecedented traffic to the career page from applicants applying for vacancies.

    Checks by TheNewsGuru.com (TNG) shows the recruitment website of the NNPC Limited is currently experiencing slow load time.

    At other times, the NNPC career portal displays “page not found” with the message: “Oops! We weren’t able to find your Azure Front Door Service configuration.

    “If it’s a new configuration that you recently created, it might not be ready yet. You should check again in a few minutes. If the problem persists, please contact Azure support”.

    However, NNPC Limited has assured that technicians are working diligently to rectify the problem as quickly as possible.

    “Our team is working assiduously to accommodate the surge of applications,” the company stated.

    NNPC Limited disclosed that the application process deadline remains August 20, 2024.

    “While we acknowledge the keen interest of Nigerians in having an exciting career experience with us, we reassure all Nigerians of a transparent and merit-based recruitment process.

    “We therefore encourage capable Nigerians to take maximum advantage of this unique opportunity,” a statement by NNPC Limited reads.