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Tag: NNPC

  • Tinubu’s directive to NNPCL in line with law – Senator Enang

    Tinubu’s directive to NNPCL in line with law – Senator Enang

    Sen. Ita Enang says President Bola Tinubu’s directive to the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery in naira is in compliance with the law.

    Enang, a former senator and a lawyer, stated this in an interview on NTA programme Tuesday night in Abuja.

    Recall that the Federal Government had, on Monday, ordered NNPCL to sell crude oil to Dangote and other local refineries in naira.

    The ex-lawmaker commended President Tinubu on the step he had taken, describing it as “the beginning to the solutions of the problems of the country.”

    He said: “The implication of this directive from the Federal Executive Council (FEC) and the president is directing to comply with the laws of Nigeria.

    “The law of Nigeria under the Central Bank Act says the the currency of Nigeria shall be the Nigerian Naira.

    “So, if you are selling any commodity in Nigeria, you must sell in Nigerian Naira.”
    .
    The legal practitioner said the question of petroleum and its products are no longer a matter of economy alone but a question of national security.

    “It is not a question of how much Nigeria will earn but a question of national security.

    “It is the survival of Nigeria.

    “The Dangote Refinery is not an economic asset of Nigeria; it is not an economic asset of Dangote. It is national security asset.

    “It is as good and as important as the key, tool to our national security.

    “So we should allow the directive by Mr President and the FEC to sail through and to make sure that this is not sabotaged,” he said.

    According to him, it is good that the president has given directive fast that the crude oil must be sold to Dangote Refinery and to other refineries because in times past, the NNPCL had been very interested in selling crude oil to countries abroad.

    He said: “That is why they were not interested in getting any of the refineries working.

    “They get so much money and be doing what they called turnaround maintenance that has not worked.

    “So, the decision by the president is good, it’s the best, because we were shocked that there is a man, a living being in this country, who can say that the (Dangote) refinery will not have crude oil because they have to sell crude oil and import refined petroleum products.”

    Enang, who was one-time Senior Special Assistant to President on National Assembly Matters (Senate), urged Tinubu to probe allegations of corruption in the NNPCL operations

    He urged the president to get an emergency team to reform the organisation.

    “I want to say with respect that Mr President, this is just the beginning of your actions.

    “I have asked on public fora and even on this channel, that Nigerians should answer one question:

    “Is it the Central Bank of Nigeria or NNPCL that owns Nigeria or is it Nigeria that owns NNPCL and CBN?

    “Mr President showed courage in dealing with the matter of the CBN. He carried out complete surgery in the question of the Central Bank.

    “And I am sure that Nigerians and the world were shocked at what has come out of it, and shocked at how we got to where we are in terms of the value of our currency.

    “I want Mr President not to do exactly the same thing only to NNPCL, I want him to do more because the situation is worse in the oil sector and the NNPCL.

    “Mr President should, in addition to this directive, set up commission of inquiry to find out how did we get here; look at the Petroleum Industry Act.

    “If we say we should have Petroleum Industry Act that it will attract more investment but it has attracted more divestment, it has worsened the oil sector,” he said.

    According to him, Mr President should ensure a complete overhaul, surgery and turnaround of the NNPCL
    .
    “They should be made to sit and answer questions to every question that has risen since about 1999 why we have gotten here and why none of the refineries is working,” he said.

    He said the president’s action would positively affect the lives of the common man on the streets as less money would be spent on petroleum process which would indirectly crash the prices of the products.

    “In the next five years, the oil sector is going to be very interesting with the Tinubu initiative.

    “When the Tinubu initiative comes in, all the matters relating to security will be eliminated and the cost of producing crude oil is going to be cheaper.

    “And I want to urge that government should also give Dangote Refinery some oil blocks so that it can take responsibility for the production and they should go into drilling of more oil wells so that we can have more crude oil,” he said.

    NAN

  • Group backs Agbese on NNPC, NMDPRA probe

    Group backs Agbese on NNPC, NMDPRA probe

    The Energy Transparency Initiative (ETI) has refuted claims that Rep. Philip Agbase, the Deputy Spokesperson of the House of Representatives, has assumed the role of an advocate for the Dangote Refinery.

    The allegation was made in a statement by one Mr Ganzallo Gbenga, said to be the convener of ETI, and the programme officer, Mr Chinelo Ochiaga, on July 27.

    However, Mr Francis Nedu, the group’s president, and Mr. Ismaila Bello, the secretary, ETI, said in a joint statement in Abuja on Monday that the persons were expelled long ago.

    This, according to Bello, was due to fraudulent activities and other abuses that contravened the group’s objectives.

    “We are shocked and dismayed that these individuals would continue to impersonate ETI and make statements that do not reflect our values and mission.

    “Their actions are a clear attempt to blackmail and take advantage of innocent parties, and we condemn their behavior in the strongest terms.”

    He said that the leadership of ETI was aware that some government agencies had allegedly released as much as $500,000 to the impostors.

    This, according to him, is to blackmail Agbese and other National Assembly members who want sanity in the oil and gas sector.

    He therefore expressed support for Agbese’s claims of deliberate attempts by the Nigerian Petroleum Company Limited (NNPCL) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to discredit Dangote Refinery Company.

    The group said Agbese demonstrated exceptional leadership and courage in “exposing the truth” and applauded his efforts to protect Nigerian entrepreneurs and promote indigenous businesses.

    He added that Agbese’s dedication to serve the people and uphold the principles of fairness and transparency had been exemplary.

    He said that the Deputy Spokesperson has shown that he is a true representative of the people, and his actions have earned him the respect and admiration of many.

    The group said that NNPCL and NMDPRA have shown a clear bias towards international oil companies (IOCs) and have consistently frustrated the efforts of Nigerian entrepreneurs.

    “Their actions are a disservice to the nation and undermine the government’s efforts to promote indigenous businesses.”

    The ETI, therefore, expressed support for the House of Representatives call for the Chief Executive Officer of NMDPRA, Farouk Ahmed, to resign.

    The group said that Agbese’s reiteration of the House’s earlier call for the NMDPRA boss to be sacked is the position of many Nigerians who meant well for President Bola Tinubu.

    “We believe that the dismissal of the NNPC Group CEO, Mele Kyari, is long overdue as well.”

    The group therefore called on President Tinubu to take immediate action to address this issue and ensure that the regulatory agencies served the interests of the nation, not just a select few.

    ETI, however, said that it had taken legal action against the imposters and already involved law enforcement agencies to ensure that they were brought to justice.

    “We will not tolerate any attempts to impersonate our organization or make false statements that damage our reputation,” the statement noted.

    The group urged all stakeholders to remain vigilant and uphold the principles of fairness and transparency, adding that it would continue to monitor developments.

    The group said it would ensure that all actions and policies are aligned with the national interest, free from undue influence or partisan agendas.

    NAN reports NMDPRA had denied any wrong doing.

    In a BBC Hausa Service, interview, Farouk Ahmed the Chief Executive Officer of NMDPRA said the agency was working according to its mandates.

    “Dangote himself said that we are helping him.

    “We have more than 10 workers who are working 24/7 to make sure everything goes as planned and he personally came to say, thank you. So saying that we are undermining or sabotaging him is incorrect.

    “People don’t want to be guided by laws; maybe they want to be allowed to do as they please”, he said.

  • NNPC gives update on fresh fuel queues

    NNPC gives update on fresh fuel queues

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) says the tightness in fuel supply and distribution is caused by a hitch in the discharge operations of a couple of vessels.

    Mr Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., made this known on Saturday in a statement while reacting to the current queues and scarcity being witnessed in some parts of Lagos and the FCT.

    The News Agency of Nigeria (NAN) reports that queues started building up at fuel stations in the FCT on Friday, as motorists were seen lining up at various fuel stations, while some have remained shut.

    “The NNPC Ltd. wishes to state that the tightness in fuel supply and distribution witnessed in some parts of Lagos and the FCT is as a result of a hitch in the discharge operations of a couple of vessels,” Soneye said.

    He said the Company was working round the clock with all stakeholders to resolve the situation and restore normalcy in the operations.

  • Reps to investigate Dangote refinery, NMDPRA, NNPC rift

    Reps to investigate Dangote refinery, NMDPRA, NNPC rift

    The House of Representatives has said that it would investigate the ongoing spat between Dangote Petroleum Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

    The investigation would also include the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Ltd (NNPCL).

    Rep. Philip Agbese, the deputy spokesperson of the House, said this while speaking with newsmen in Abuja on Saturday.

    Tthe investigation is coming amid the biting fuel crisis across the country and the allegations that Dangote’s fuel is of low in quality.

    Agbese said the investigation conformed to the House commitment to protect all national assets and critical economic infrastructure like the Dangote Petroleum Refinery.

    He said: “We have been seeing a lot by way of demarketing campaigns to discredit the Dangote Petroleum Refinery and given the negative impact of this, which has caused panic in the country.

    This, according to him, has resulted to uncertainties that had led to fuel queue resurfacing, adding that is totally condemnable.

    “Unfortunately, what we have learnt is that the NNPC and NMDPRA play major role in these plots to discredit the refinery, which is unacceptable.

    “The bigger aspect of our concern is that there are concerns that false narratives are being peddled by certain interests that are bent on importing dirty fuels into the country’’, he said.

    “As a proactive institution, committed to the wellbeing of the nation and Nigerians, the position of the House is to investigate the allegations’’, he told newsmen

    Agbese said the House would bring closure to the matter so that there would be a direction towards economic stability.

    “It is on record that the House had directed the President to sack NMDPRA, so the House will also not hesitate to call for the sack of Mr Mele Kyari, the Group Chief executive officer of NNPCL if need be’’, he said.

    He added that the demand for Kyari ‘s sack would happen if there was evidence of an attempt to destroy Dangote refinery.

    He added that the leadership of NMDPRA must be sacked, adding that both agencies had confirmed they were interested in destroying the Dangote Refinery.

    According to him, many Nigerians have called off the proposed hardship protest, but they want to see Kyari’s sack if that will guarantee that the country will function smoothly.

    It would be recalled that the Speaker of the House of Representatives, Rep. Tajudeen Abbas, had earlier led a delegation of the House on a visit to the Dangote refinery and Petrochemicals Company in Lagos

    This was part of the ongoing efforts to understand and support the nation’s key industries.

    Abbas said the visit provided valuable insights that would guide the House’s legislative measures and decisions.

    He said the House was working to create a more business-friendly environment to make Nigeria an attractive destination for local and international investors.

  • NNPC vs Dangote: Where the truth lies – By Azu Ishiekwene

    NNPC vs Dangote: Where the truth lies – By Azu Ishiekwene

    Africa’s richest man, Aliko Dangote, is not a stranger to adversity or its more sinister cousin, sabotage.

    One of the bitterest battles he has fought in the last 25 years – the cement war – was against his kinsman and founder of BUA Group, Abdulsamad Rabiu. Folks close to both men have tried to patch them up, but the embers are still smouldering. 

    Dangote’s face-off with the Kogi State Government under former Governor Yahaya Bello over rights and royalties from Dangote Cement, Obajana, for the local community, was a skirmish compared to the cement war with Rabiu.

    Wealth and comfort can be strange bedfellows, often mutually exclusive in the quest to conquer one mountain after the other. Dangote knows this only too well. And nowhere has the lesson been more evident than his pursuit to own a refinery. 

    Just like that?

    I told this story before in an article in May 2023. In the twilight of the Obasanjo administration, the government sold off two of Nigeria’s moribund refineries – Port Harcourt and Kaduna – to Blue Star, a Dangote-led consortium. Blue Star paid $670 million for the plants and walked away, thinking the deal was done. It wasn’t. 

    In 2007, the government of Umaru Musa Yar’Adua capitulated. It refunded Dangote under pressure from labour unions and vested interests in the refineries on the excuse that the assets were “national patrimony” that should not be sold, “just like that!” It didn’t matter that at the time of sale, both refineries produced less than 20 percent of capacity without hope or promise of improvement.

    Dangote took his money and walked away, bruised but unbowed. Six years later, he announced plans to build a private refinery, first in Ogun State, and later, he moved it to Lagos with a capacity of 650,000 bpd – over 200,000 more than the installed capacity of Nigeria’s four refineries combined.

    Single train revenge

    Dangote’s single-train refinery, originally estimated to cost $12 billion but finished at around $20 billion, is now at the centre of another storm. It’s not about International Oil Companies (IOCs) he accused of trying to undermine him. It’s the more deadly variety of wars: the one from within.

    The regulators, particularly the head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said in a television interview in the State House with the NNPC Group CEO, Mele Kyari, present, that Dangote Refinery was making products with unsafe Sulphur levels, and also trying to monopolise the industry.

    Ahmed can raise valid safety concerns as a regulator and call out a monopoly. The Petroleum Industry Act (PIA) provides safety standards and a price reflexive framework to prevent a monopoly. Under the Act, the regulator is empowered to act in the interest of consumers and fair play.

    Sulfurous things and backstory

    Ahmed didn’t say precisely what the tolerable Sulphur level was or provide evidence that Dangote was trying to become a monopoly. Instead, he contradicted himself by mentioning at least two other refineries, Waltersmith and Aradel, operating at different capacities. If this were a chat in a beer parlour, it would be pardonable. 

    But to think that the head of a regulatory agency will levy an accusation of unsafe Sulphur levels and offer no response when he was told that neither his agency nor the NNPC had a laboratory is scary. I’m not sure why Kyari stood beside him, grinning. Or why the State House posted the video on its official handle.

    But the whole show leaves a bitter, corrosive aftertaste of sulfurous proportions. 

    Dangote has been accused of many things. He has been accused of feeding off government indulgences, from waivers to tax breaks and preferential forex allocations, even though he was not the only beneficiary. Even the 20 percent stake in the Dangote Refinery, which we are now told the government paid only 7.2 percent, left many questions about that transaction needing to be answered.

    On another front, some have accused Dangote of hedging his bet poorly in the 2023 election that brought President Bola Ahmed Tinubu to power, unlike his adversary, Rabiu, who appears to have hit the bull’s eye.

    Unkindest cut

    But none of these charges is as unkind as those of Ahmed, who, if shame still means anything, should not have uttered the first letter of the “S-word,” never mind the phrase “Sulphur levels.” I’m not sure he can find his way to a viable lab owned by NMDPRA or NNPC because there isn’t one. The regulators rely on third-party labs in Lagos, such as GMO, Sewort, SGS, and others, to vet its imported petroleum products.

    Yet, Ahmed chooses to publicly discredit, without proof, products that we are told have been repeatedly ordered by TotalEnergies and BP, among others. 

    In response to a question from a LEADERSHIP reporter on Tuesday about whether NNPC has a lab, the corporation said, “NNPC conducts rigorous testing on all its products to ensure they meet global safety and quality standards,” adding that NMDPRA can provide verified data through regular official reports. What does that mean in English? 

    A regulator’s record

    And Kyari seemed pleased with this scandalous drama even though NNPC, which he superintends, has spent about $25 billion in turnaround maintenance of moribund refineries in the last 25 years, plus the recent $1.5 billion spent on his watch for more turnaround. One of the subsidiaries, PHRC, employed 487 new staff four years ago and paid N23 billion in salaries without producing one litre of petrol. 

    All that consumers are asking for, after losing a significant part of the battle for price, is the availability of petroleum products. God knows what they are getting under the current monopolistic system, which permits NNPC to play around with import licences, are long queues, contaminated products, and a regulator mockingly claiming to be a public company. 

    Suppose Dangote Refinery is in breach of any regulations; what steps have the regulators taken to call the refinery to order or help them overcome, except if they claim there was evidence of a malicious default? Our officials spend hundreds of thousands of dollars touring the world for foreign investors only to chew local investors with a microphone in a fit of what? Rage, sabotage, indiscretion or stupidity?

    Feuding parties

    The closed-door meeting among the feuding parties, which Tinubu ordered on Monday, may keep them on a leash for a while, but it hardly addresses the underlying issues. If products from the Dangote Refinery currently exceed the Sulphur levels – as Dangote had also said on a different occasion – why can’t the regulator work with the refinery to fix it without a scandalous press conference?

    And is the talk about monopoly a fear-induced trope? How can Ahmed even speak of a monopoly when supply is hardly available, and the current distortionist-in-chief is NNPC, the sole importer of petrol and sole awarder of import licences for diesel?

    It doesn’t smell good. Dangote Refinery is only 45 percent complete – the entire plant? Yet, Kyari and Ahmed joined former President Muhammadu Buhari in commissioning the plant last year? Seriously? 

    After years of working with petrol importers in his former life as the chief executive of PPMC, Ahmed is struggling with his new role as a regulator. He deserves public sympathy and can get it without being a retailer of beer parlour gossip or a bagman for vested interests.

     

    Ishiekwene is Editor-In-Chief of LEADERSHIP and author of the new book Writing for Media and Monetising It

  • Petroleum sector probe: Lawyers demand suspension of NNPC head, Kyari, others

    Petroleum sector probe: Lawyers demand suspension of NNPC head, Kyari, others

    No fewer than 20 constitutional lawyers have called on the House of Representatives’ Joint Committee on Petroleum (Downstream and Midstream), to recommend the suspension of the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC), Mele Kyari.

    This call also includes the suspension of Lawal Sade, Managing Director of NNPC Trading Company, and Bala Wunti, Chief Upstream Investment Officer of NNPC Upstream Investment Management Services (NUIMS), pending the conclusion of a forensic investigation into the company’s operations.

    The lawyers, led by constitutional activist, Tijani Usman, issued a press statement on Thursday, insisting that suspending these executives was crucial to ensuring an uninterrupted investigation. They argued that allowing these officials to remain in their positions would enable them to access sensitive information and documents, potentially derailing the investigation.

    The legal practitioners criticised Kyari and his team for allegedly sabotaging President Tinubu’s efforts to salvage the nation’s economy. They asserted that the executives’ incompetence has hindered legislative intentions aimed at improving the petroleum sector.

    The lawyers equally urged the Hon. Ikenga Imo Ugochinyere (Downstream) and Hon. Henry Okojie (Midstream)-led probe panel not to sweep the OVH Acquisition and other related deals under the carpet as they are the larger issues the joint committee should look into beyond those raised in the motion that prompted the forensic investigation.

    “It is quite fascinating that the House of Representatives has resolved to carry out a forensic investigation into the presence of middlemen in trading, the indiscriminate issuance of licenses, the unavailability of laboratories to check adulterated products, the influx of adulterated products into the country, the allegation of non-domestication of profits realised from crude marketing sales in local banks, and other anomalies.

    “Interestingly too, the forensic investigation also cover the importation of substandard products and high-sulphur diesel into Nigeria, the sale of petroleum products below fair market value, and the impact on downstream and local refineries and as the source of funds for such interventions, amongst other things, and report back to the House within four weeks for further legislative action.

    “However, this would be efforts in futility if the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari and his cohorts, especially Lawal Sade, the Managing Director of NNPC Trading Company and Bala Wunti, the Chief Upstream Investment Officer of NNPC Upstream Investment Management Services (NUIMS) are allowed to remain in office why the investigation is being conducted.

    “Thus, we urge the House of Representatives’ Joint Committee on Petroleum (Downstream and Midstream) conducting forensic investigation into the state of the Nigerian National Petroleum Company Limited (NNPCL) and downstream sector generally to recommend their suspension to President Bola Ahmed Tinubu or else they will use their tremendous influence to sabotage this timely intervention.

    “When that is done, President Tinubu who should by now realised that the Kyari- led NNPCL was sabotaging his efforts to fix the economy due to their crass incompetent and mischief should suspend the management of the company to give the lawmakers unfettered access to do their job.

    “Beyond those rots spelt out in the motion which necessitated the probe, the Hon. Ikenga Imo Ugochinyere (Downstream) and Hon. Henry Okojie (Midstream)-led probe panel should make sure the OVH Acquisition and other sleeze are not swept under the carpet.

    “Nigerians are well aware how after N140 billion purchase, NNPCL was unable to complete the acquisition of OVH Energy Marketing Limited‘s downstream assets. So, the panel will be daring the people who are already fed up with the kleptomania in the company.”

  • What NNPC should do to reduce queues – IPMAN

    What NNPC should do to reduce queues – IPMAN

    The Independent Marketers Association of Nigeria (IPMAN) has urged the Nigerian National Petroleum Corporation (NNPC) to increase fuel allocation to its members to reduce queues in filling stations.

    IPMAN National Vice President, Alhaji Hammed Fasola, said in an interview in Ibadan on Friday that the fuel scarcity was due to low allocation.

    According to him, if members of IPMAN get the product directly from NNPC, the price per litre will be affordable for Nigerians and the queues will reduce.

    He said its members sell petrol at a higher price from other major marketers or depot owners because they get the product exorbitantly from third parties.

    According to him, the association has presented its position on PMS allocation to NNPC, calling on it to allocate as much as 50 per cent as it used to be in the past.

    “It is not that we don’t get at all, we are getting a little, and when you compare our number in this sector; our members own 80 per cent of the filling stations.

    “In the past, it was not like this.

    “We had a share of 50 per cent but recently, things have changed, and we are trying to talk to the authorities, especially the NNPC that they have to correct that abnormality.

    “We are still trying to address the issue. This is why the independent marketers are selling at a higher price, which is not good for our image,” Fasola said.

    He stated that its members were being pushed to private depot owners “And we don’t find it palatable.

    “We go there sometimes, and they will sell at N720 per litre, and in their own stations, they are selling N620 or N650 per litre; you can see the disparity and the public will not understand.

    “This is why we are trying to educate the people that we are not shrewd businesspeople who want to milk Nigerians.

    “Some filling stations have closed for business because they can’t cope – this is the situation we found ourselves in; until the government corrects it and everybody is on the same level.

    “We are appealing to NNPC to correct this, so we can get our product directly as we used to do; that will be good for everybody,” he said.

    On the purported increase in PMS pump price by some Nigerians, Fasola said its association had not received any information to that effect.

    “We should take it as fake news,” he said.

  • NNPC Ltd declares state of emergency on oil, gas production

    NNPC Ltd declares state of emergency on oil, gas production

    The Nigerian National Petroleum Company Limited (NNPC) Ltd has declared a state of emergency on production in Nigeria’s oil and gas industry.

    The NNPC Ltd has also called on all players in the industry to collaborate towards reducing the cost of oil production and boosting production to target levels.

    Malam Mele Kyari, Group Chief Executive Officer, NNPC Ltd, made this known in Abuja, on Tuesday at the ongoing 23rd edition of the Nigeria Oil & Gas (NOG) Conference and Exhibition holding from June 30 to July 4.

    “We have decided to stop the debate. We cannot afford to negotiate further, we have declared war on the challenges affecting our crude oil production.

    “Our biggest interest is to produce more oil and gas in spite of oil theft and other challenges.

    “We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners and we will work together to improve the situation,” he said.

    Kyari said a detailed analysis of assets revealed that Nigeria could conveniently produce two million barrels of crude oil daily without deploying new rigs, but decried the inability of players to act in a timely manner as major impediment.

    He said obstacles to effective and efficient production such as delays in procurement processes and old pipeline network were affecting the industry.

    He said NNPC Ltd. would replace all the old crude oil pipelines built over four decades ago and introduce a rig sharing programme with its partners to ensure that production rigs stayed in the country.

    This, he said, would be a medium to long-term measures aimed at boosting and sustaining production.

    He expressed commitment to investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation.

    On Compressed Natural Gas (CNG), Kyari said that NNPC Ltd. had keyed into the Presidential CNG Initiative drive.

    He said in conjunction with partners such as NIPCO Gas, NNPC Ltd. had built a number of CNG stations, 12 of which would be commissioned on Thursday in Lagos and Abuja.

    The Secretary-General of the Gas Exporting Countries Forum (GECF), Mr Mohamed Hamel, in an address, also advocated for natural gas infrastructure and penetration for energy stability and security.

  • NNPC Ltd denies inflating subsidy claims

    NNPC Ltd denies inflating subsidy claims

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) on Monday disowned reports in some sections of the media alleging that it inflated subsidy claims by N3.3 trillion.

    A statement issued by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., stated that the company had always conducted its businesses accountably and transparently, with international best practices.

    Soneye said NNPC Ltd. had at no time inflated its subsidy claims with the Federal Government, noting that all previous subsidy claims by the company were verifiable, as relevant records and documents had been sent to relevant authorities and agencies.

    He said that NNPC Ltd. was neither aware of any audit of its subsidy claims nor probe, noting that the ridiculous reports were the products of the imagination of the reporters and their respective media houses.

    “NNPC Ltd. will resist any attempt to drag the company into the apparent politics of fuel subsidy as it currently operates on commercial basis and on the express provisions of the Petroleum Industry Act (PIA).

    “It is on record that in line with its Transparency, Accountability & Performance Excellence (TAPE) mantra, NNPC Ltd. has, on several occasions, independently invited external auditors to review its books.

    “NNPC Ltd. calls on media practitioners and media houses to exercise restraint and verify information before publication in keeping with the ethics of the noble profession of journalism to avoid misleading the public,” Soneye added.

  • Reps move to probe NNPCL over alleged sleaze, illegal expenditure of frontier explorations fund

    Reps move to probe NNPCL over alleged sleaze, illegal expenditure of frontier explorations fund

    The House of Representatives on Wednesday resolved to probe alleged misappropriation and illegal expenditure of frontier exploration funds by the Nigerian National Petroleum Company Limited (NNPCL).

    This was sequel to a motion of urgent public importance promoted by Rep. Billy Osawaru on the “Urgent Need To Investigate The Alleged Misappropriation And Illegal Expenditure Of Frontier Exploration Fund By The Nigerian National Petroleum Company Limited (NNPCL) Without The Prior Approval Of The National Assembly As Required By The Petroleum Industry Act, 2021”, on Tuesday at plenary.

    While debating the motion Rep. Osawaru noted that section 4(2) of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) empowers the National Assembly to make laws for the order and good government of the federation or any part thereof.

    He also noted that section 88 (1) and (2) of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly.

    The lawmaker stated that Section 9(4) of the Petroleum Industry Act 2021 (PIA) establishes the Frontier Exploration Fund to be 30% of NNPC Limited’s profit oil and profit gas as in the production sharing, profit sharing and risk service contracts.

    The motion reads: “Futher aware that section 9(5) of the Act, mandates NNPCL to solely utilize the Frontier Exploration Fund for the development of frontier acreages and utilize the funds to carry out exploration and development activities in the frontier acreages to carry out exploration and development activities in the frontier acreages subject to appropriation by the National Assembly.

    “Informed that the NNPC Limited has consistently accessed and expended funds from the Frontier Exploration Fund without prior appropriation and approval by the National Assembly as required by the Act.

    Further informed that hundreds of millions of dollars have been irregularly withdrawn from this Fund and expended on white elephant projects, unauthorized and illegal projects that appear patently illegal and in contravention of extant laws and due process requirements under the Constitution and the PIA.
    “Disturbed that this alleged conduct by NNPC Limited grossly undermines the oversight powers of the National Assembly over the expenditure of public funds as enshrined in the Constitution. It also represents an affront to the principles of transparency, accountability and probity in the management of public finances.

    Emphasizes that such brazen acts of illegality, if proven, cannot be condoned under any circumstances as they breed a culture of impunity, undermine our laws, and sabotage our collective efforts at institutionalizing fiscal discipline and good governance across all sectors”.

    Rep. Osawaru further acknowledged that this is a grave financial misconduct which has far-reaching implications on our ability to effectively conduct oversight and enforce compliance with all extant laws, including the PIA which we worked so hard to enact in pursuit of transparency and accountability in Nigeria’s petroleum industry.

    “It is thus incumbent on this House as representatives of the Nigerian people to take prompt action to investigate this matter and ensure that all perpetrators are brought to book”, he added.
    The House adopted the motion and mandate the House Committees on Petroleum Resources Upstream to investigate and report back within four weeks for further legislative action.