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Tag: NNPC

  • How NNPC will use gas to revolutionise Nigeria’s power, industries – Kyari

    How NNPC will use gas to revolutionise Nigeria’s power, industries – Kyari

    The Group Chief Executive Officer (GCEO), Nigerian National Petroleum Company (NNPC) Ltd., Mr Mele Kyari, says the company will utilise Nigeria’s abundant gas resources to revolutionise the nation’s power and industrial sector.

    Kyari said this in Abuja at a Shareholders Agreement (SHA) signing between the NNPC Ltd., UTM Offshore (an indigenous company) and Delta State Government, on the development of the first Floating Liquefied Natural Gas (FLNG) facility in Nigeria.

    He said in a statement that gas would be used to bring revolution in Nigeria in the next two to three years as they were already progressing on the initiatives to bring gas to the domestic market.

    “Our backbone infrastructures are almost ready to ensure we achieve that. Once that happens, we will see the immediate impact on the power sector, gas-based industries and several collateral values this will create,” the GCEO said.

    Describing the FLNG project as a task that must be done, Kyari said Nigeria’s abundant gas resources have been under-utilised, adding that the new focus would monetise such gas resources for national and global benefit.

    According to him, the FLNG Project clearly fits into the Federal Government’s gas aspirations under the Decade of Gas Initiative and in line with Mr President’s agenda to create a gas hub to maximise value for prosperity.

    Reiterating NNPC Ltd.’s commitment towards the project, Kyari said the FLNG was the first of its kind that the company was taking keen interest in.

    Kyari also said NNPC Ltd. had equity in the project.

    “There are several Floating LNGs that we are promoting, including fixed LNG projects. We are happy to collaborate with the Delta State Government. We will take practical steps to deliver this project on schedule and at the best possible cost,” the GCEO added.

    Earlier in his remarks, the Group Managing Director of UTM Offshore Limited, Mr Julius Rone, described the SHA execution as another significant milestone in actualising Nigeria’s first indigenous FLNG.

    He commended President Bola Tinubu for his dedication towards developing the Nation’s gas resources, as exemplified in the recently held COP28 Conference in Dubai, UAE.

    He also lauded the GCEO of NNPC Ltd for his leadership and commitment in ensuring that Nigeria’s gas resources were developed within the provisions of the Petroleum Industry act (PIA) 2021.

    Also speaking, the Governor of Delta State, Sheriff Oborevwori, said that the Delta State Government, which had 40 per cent of Nigeria’s proven gas reserves, decided to take eight per cent equity on the project.

    This, he said, was because of the company’s conviction of the strategic importance of the project to the national economy.

    The governor said that apart from producing over 300,000 metric tonnes of LPG (cooking gas) which would be dedicated to the domestic market, the FLNG project would also help to mitigate environmental hazards in the Niger Delta.

    Oborevwori said the FLNG would reduce gas flaring, create ample employment opportunities and ensure the switch from kerosene and firewood to cleaner energy, thus improving the health and general wellbeing of the people.

    In attendance to witness the execution of the SHA was the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, who said FLNG would ensure monetisation of Nigeria’s gas resources to drive the economy and attain energy security.

    Mr Olalekan Ogunleye, the Executive Vice President, Gas, Power and New Energy, spoke briefly on the project and lauded the Federal Government for its belief in the ability of gas to drive and accelerate economic growth.

    The FLNG facility is expected to produce 1.81 to 2.72 metric tonnes of gas per annum (mtpa).

    Its project equity has NNPC Ltd., UTM Offshore and the Delta State Government holding 20 per cent, 72 per cent and eight per cent stakes respectively.

  • BREAKING: Tinubu appoints new NNPC board, retains Kyari as GCEO

    BREAKING: Tinubu appoints new NNPC board, retains Kyari as GCEO

    President Bola Tinubu has approved the appointment of a new Board and Management team for the Nigerian National Petroleum Company Limited (NNPCL).

    TheNewsGuru.com (TNG) reports President Tinubu retained Mele Kyari as the Group Chief Executive Officer (GCEO) of NNPCL with Pius Akinyelure as the Non-Executive Board Chairman.

    According to a statement by Ajuri Ngelale, Special Adviser to the President on Media and Publicity, the appointment is with effect from December 1, 2023 and in compliance with Section 59 (2) of the Petroleum Industry Act, 2021.

    While Umar Isa Ajiya was appointed Chief Financial Officer, Ledum Mitee, Musa Tumsa and Ghali Muhammad were appointed Non-Executive Directors.

    Others appointed Non-Executive Directors are Mustapha Aliyu, David Ogbodo and Eunice Thomas.

    “President Tinubu anticipates the fullest measure of compliance with the performance-driven and results-oriented mandate of his Renewed Hope administration in the implementation of energy policy that will monetize all available oil and gas resources of today while paving the way for the total exploitation of new and cleaner energy sources of tomorrow by this distinguished team”, the statement reads.

  • Court orders EFCC, CBN to transfer Andrew Yakubu’s confiscated funds to registrar’s account

    Court orders EFCC, CBN to transfer Andrew Yakubu’s confiscated funds to registrar’s account

    A Federal High Court (FHC), Abuja, on Monday, ordered the Economic and Financial Crimes Commission (EFCC) and Central Bank of Nigeria (CBN) to immediately transfer the sums of $9.8 million and £74,000 recovered from Mr Andrew Yakubu, former Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) to an account under the control of the chief registrar of the court.

    Justice Inyang Ekwo, in a judgment, held that he found that the EFCC and CBN had not been forthright concerning the whereabouts of the sums for which the suit was centered.

    He said: “Therefore, the proper order to make in this case is that which can assure all parties that the sums are in the custody that can make them retrievable by any of the parties entitled thereto eventually,” pending the determination of the appeal lodged by the Federal Government against the decision of a sister court in suit number: FHC/ABJ/CR/43/2017.

    Yakubu had sued the commission, CBN and the Guaranty Trust Bank (GTB) as 1st to 3rd defendants respectively over an alleged refusal to release his $9,773,200.00 and £74,000.00 after a court judgment acquitted him of fraud charges.

    On February 3, 2017, operatives of the EFCC raided the property of the former NNPC chief in Kaduna and recovered $9.8 million and £74,000 stashed in a fire-proof safe.

    He was alleged to have omitted the monies from the EFCC asset declaration form given to him to fill in 2015.

    Yakubu was arraigned before Justice Ahmed Mohammed of a FHC, on March 16, 2017, on a six-count charge bordering on money laundering and false declaration of assets.

    However, in March 2022, the judge, discharged and acquitted Yakubu of the charges.

    Meanwhile, in the originating summons, marked, FHC/ABJ/CS/231/2023, and filed before Justice Ekwo, another judge, Yakubu through his counsel, Ahmed Raji, asked the court to determine whether the EFCC ought to still have in its custody his seized monies after the judgment

    He prayed the court for an order directing the defendants to immediately release the monies to him pending the determination of the EFCC’s appeal.

    Alternatively, Yakubu wants an order directing the defendants to immediately transfer the said monies into an account under the control of the FHC’s chief registrar or into an account to be operated by the chief registrar, the EFCC, and him, pending the determination of the appeal.

    Delivering the judgment, Justice Ekwo held that the order that any sum of money be paid into account maintained by the chief registrar of the court was usually made following the facts and circumstance of the case.

    “Such order does not by any measure give advantage to any of the parties.

    “It is neither res novo nor new law for the court to make an order for any sum of money in contention between the parties to be kept in a neutral account pending conclusion of proceedings.

    “Parties who truly seek justice in their matter are more assured where the court makes an order that ensures the neutrality of the custody of the funds which form the res of the cause of action,” he said.

    According to him, the justice of this case demands that the 1st and 2nd defendants produce the sums in contention in this case and place same in the custody that assures everyone of its existence, safekeeping and accessibility by any person so entitled at the conclusion of the appeal.

    “It is on this ground and the other grounds which I have considered in the cause of this judgement that I find that the plaintiff has made a compelling case on the merit and ought to succeed and I so hold,” he said.

  • NNPC limited’s bright business outlook – By Nasiru Omar

    NNPC limited’s bright business outlook – By Nasiru Omar

    By Nasiru Omar

    When the Petroleum Industry Bill was signed into law in July 2021, some of its key objectives were to make NNPC Ltd operate as a commercial entity and do its business profitably, pay taxes like every other company, and make returns to its shareholders. Furthermore, a time frame was given within which the initial shareholders will relinquish part of their shares to the public through an Initial Public Offer (IP0).

    NNPC Limited has been described in various quarters as the largest company in Africa, going by the sheer size of its assets. Currently, the assets of the company are valued at about 60billion dollars.

    Speaking at the Nigerian Oil and Gas (NOG) Conference in Abuja earlier in the year, the Group Chief Executive Officer of NNPC Limited, Mr Meke Kyari, said the company will soon float the Initial Public Offer (IPO) as envisaged by the PIA.

    “We will go to the market, and this is going to happen soon. This is the new direction, and I can confirm to you that Mr. President is completely committed,” Kyari said, much to the admiration of the industry leaders and investors gathered at the event. It seems the NNPC Limited IPO is one of the most expected and anticipated in recent times with many industry captains and investors calling on the authorities to expedite action on the planned divestment. This probably stems from the understanding that the business outlook of such an investment was bright.

    Recently at the Annual Value Review (AVAR) of the NNPC Upstream Investment Management Services, the investment arm of the company, Africa’s richest man and Chairman of Dangote Group, Alhaji Aliko Dangote, said NNPC Limited had the capacity to be the African version of Saudi Arabian national oil company, Saudi Aramco. Coming from a man who is widely known for his business shrewdness, it should not be taken for granted.

    “I truly believe that NNPC should be our African Aramco. You have what it takes to take you up there and I am very happy. There is nothing that is impossible. You can make it possible and do not let anything scare you”, Alhaji Dangote said at the event in Lagos

    To make this happen Dangote listed what can be done by NNPC Limited, one of such was investing in infrastructure. “We need to look at our infrastructure and see how we can take ourselves to the next level and it has to be driven by NNPC because they are the largest conglomerate and whatever happens to NNPC Limited and their assets, it actually happens to us either directly or indirectly”, he said. The second thing, he said, was for the company to focus on delivering strong returns, growing the investment portfolio, and managing portfolio risks. Furthermore, the business mogul talked about reducing the cost of production as one of the strategies NNPC Ltd company can adopt to get to the top.

    “You need to benchmark costs with producers in similar basins and aim to be the lowest amongst your peers. Some existing government policies, as laudable as they may be, also need to be re-evaluated. For instance, we need to strike a delicate balance between encouraging local participation in the oil and gas sector and compromising efficiency and cost. Let us begin with delivering strong returns which, of course, is a function of price and cost. While price in your industry is determined by the market and so clearly outside your control, the same cannot be said about cost. More aggressive cost targets need to be adopted,” Dangote said.

    There is good news already. NNPC Ltd is doing all the things listed by the business mogul. For instance, it has invested massively in gas infrastructure which the GCEO of NNPC Limited, Mr. Mele Kyari, recently said would open up the economy. He said the business of the Company goes beyond providing value as the PIA has also given it authority to ensure energy security in the country. He said energy security was not only about providing fuels at the filling station but also creating the infrastructure to bring the energy to the people. Such understanding, he observed, underpinned the investment by NNPC Ltd in AKK Gas Pipeline project to bring gas to power plants in Abuja, Kaduna and Kano and the commitment to invest over ₦2trillion on roads across the country under the Tax Credit Scheme.

    “Energy security is beyond just providing fuel at the fuel stations. It can mean power, it can also mean the infrastructure to deliver energy to the people including roads, which is why we saw that mix and decided to participate in the Tax Credit Scheme. We know this is connected to our work. We know that this will do well in delivering energy to the people. More than anything, it can bring the collateral value to the country, creating economy of opportunities for our people.”, Kyari emphasised.

    Mr. Kyari said the AKK Pipeline Project will bring cheap source of power supply to many parts of the country to boost resuscitation of industries along its corridor and ensure utilisation of the nation’s gas resources to the tune of over 8billion standard cubic feet (scf) of gas to be injected into the network.

    Reinforcing the trend, he said, observations have shown that businesses were springing up along the stretch where NNPC Ltd has taken gas supply to.

    In all these, the GCEO noted that the company has not lost track of energy transition but was applying necessary strategies to ensure adequate responsible exploitation of fossil resources of the country to grow the economy and power development based on the country’s peculiar circumstances.

    All the strategies and processes being put in place, including investment in infrastructure, are to pave way for industrialisation of parts of the country and to boost the revenue base of NNPC Ltd to a level commensurate with the value of its assets.

    According to Mr Kyari, the projects that the Company has invested in could bring in over 10billion dollars in profits in the shortest possible time with proper management of its assets. For him, the company is already on the growth trajectory.

    He said part of the effort made so far in that direction was the reversal of the loss of about N803 billion in 2018, and N1.9 billion in 2019 to a profit of N287 billion and N674 billion in 2020 and 2021 respectively. Expectations, according to the GCEO, are that 2022 performance would be better as it is undergoing final auditing processes before declaration

    “Our business, clearly without doubt, accounts for roughly over 48 percent of revenue accruable to this country. Not necessarily NNPC Ltd, but associated businesses, the taxes that comes from our partners, royalties that we all pay and the other incidental taxes from the industry. If you pull them together, by any stretch, over 48 per cent of total revenue for this country is from the oil and gas sector. The oil and gas sector is very critical to the survival of this country, to the progress of this country and for the wellbeing of the people” Kyari said.

    NNPC Ltd, no doubt, has a very bright business outlook despite the challenges like crude oil theft, dwindling investment in exploration of fossil fuel due to demands of energy transition and the competition being created by cheap fuel from Russia among others.Collaborations between the company, security agencies and local security providers have led to arrests of people and vessels involved in crude theft. Weekly, the NNPC Limited’s Command and Control Centre tracks real time activities of vandals and illegal movement of vessels and alert security agencies. The war against vandalism of pipelines is paying off, and the barrels are returning slowly but surely.

    Are you an investor? Keep your fingers crossed, an opportunity to own a part of the largest conglomerate in Africa is coming!

  • BREAKING: Disaster averted as fire guts Warri refinery

    BREAKING: Disaster averted as fire guts Warri refinery

    A major disaster was averted on Friday at the Warri Refining and Petrochemical Company (WRPC), Ekpan, Uvwie Local Government Area of Delta State after a fire incident gutted a section of the facility.

    TheNewsGuru.com (TNG) reports the fire incident occurred as a result of ongoing welding activity at the cooling tower of the Warri refinery.

    The Nigerian National Petroleum Corporation (NNPC) Limited has confirmed the fire incident, stressing the incident will not affect the delivery schedule of the refinery rehabilitation project.

    In a statement, NNPC Limited described the fire incident as minor, adding that safety officers at the Warri refinery acted immediately to put out the fire, which started at about 3:00 pm.

    “This afternoon, at about 15:02hrs, there was a minor fire incident at the cooling tower of Warri Refinery and Petrochemical Company Limited (WRPC).

    “The fire which occurred as a result of ongoing welding activity at the top of the cooling tower will not affect the refinery rehabilitation project delivery schedule.

    “NNPC Limited safety officers at the Refinery acted immediately and put out the fire at about 15:30hrs; normalcy has since been restored.

    “NNPC Limited will continue to adhere to the best safety standards in all its business operations,” the NNPC statement reads.

  • NNPC retail: A pearl of quality products and services – By Emerson Chukwuka

    NNPC retail: A pearl of quality products and services – By Emerson Chukwuka

    By Emerson Chukwuka

    When the Nigerian National Petroleum Company (NNPC) Ltd, then a corporation, set out in the year 2002 to establish a petroleum products retail company as a Corporate Business Unit, it had clear intentions and business objectives. One of such intentions was to create access to quality white products and services for Nigerians from the national oil company.

    NNPC Retail commenced operation on the 1st of January 2002. Its first outlet was acquired from Texaco Nigeria Ltd at Ikoyi, Lagos. Its Abuja Mega Station commenced operation in December 2002.

    Today, NNPC Retail Ltd, registered as a company in 2009, has over 900 stations ranging from Affiliate Stations, Mega Stations, and Standard Stations to Leased Stations, Ultra-modern Stations, and Floating Stations. These stations are spread from Nigeria to Togo. The company plans to expand to other West African countries and in the process become the leading petroleum products outlet company in the region. It is about the only retail outlet in the country with 8 floating stations in the Niger Delta region aimed at bringing quality petroleum products to residents of the riverine communities who hitherto to travel several kilometres outside their immediate abode to buy the products.

    NNPC Ltd.’s acquisition of the OVH Downstream Assets in the last quarter of 2022 was a step deliberately taken to expand the footprint of NNPC Retail Ltd in the downstream and enhance its mission of making quality products readily accessible to customers. Speaking at the unveiling of one of the new NNPC Ltd stations in Abuja, the Group Chief Executive Officer of NNPC Limited, Mr. Mele Kyari, said, “The acquisition will bring over 380 additional filling stations under NNPC Retail brand in Nigeria and Togo, on our journey to attaining 1,500 stations. We will be the largest petroleum product retail network in Africa.”

    “NNPC has under an Accelerated Network Expansion (ANEX) Initiative completed the acquisition of OVH downstream assets including reception jetty (ASPM) with 240,000 metric tons monthly capacity, eight Liquefied Petroleum Gas (LPG) plants, three lubes blending plants, three aviation depots, and 12 warehouses,” he said.
    Speaking recently while appearing before an Ad-hoc Committee of the House of Representatives, Mr Kyari said the acquisition was already yielding dividends with NNPC Retail raking in over ₦18.4 billion in profits in the first quarter of 2023 compared to N6.93 billion made at the same period in 2022 prior to the acquisition.
    NNPC Retail Limited, has been on the trajectory of expansion and growth and has continued to be the leading petroleum retail outlet in Nigeria. In its last released report, the company raked in total revenue of N255.6bn by the third quarter of 2022.

    “NNPC Retail Limited achieved six per cent year-on-year increase in total white product sales, ₦255.6bn revenue, ₦15bn EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) and ₦14.14bn profit as at Q3 (third quarter) 2022,” the report stated.

    The report stated that NNPC Retail completed the construction of two standard stations in Kaduna and Kano states and onboarded 71 new stations within the year.

    Five of them were leased, while 66 were affiliate stations. the company also completed phase one solar power project with three stations in Borno, Bauchi and Nasarawa States and carried out rehabilitation and facelift of 15 company-owned stations within the network last year.
    With the acquisition of the OVH stations, the company has expanded its network in its desire to bring quality white products and lube services to every nook and cranny of the nation.

    Across the nation, many Nigerians have come to trust the NNPC Retail brand for its quality of products and services. People travel kilometres to buy petroleum products from the NNPC Retail outlets for various reasons. A consultant with one of the leading consulting companies in Nigeria, who would not want his name in print said he would rather purchase products from NNPC Retail outlets because he believed he would be getting value for his money.

    “I will rather buy my fuel from an NNPC Retail station because I am sure I will be buying the correct litre of petrol unlike some of these stations where they adjust their meters and you buy less for your money value”, he said.

    This is the testimony of many people who have had the experience of purchasing their products from the NNPC Retail stations.
    Over the years, many Nigerians have come to rate the delivery of NNPC Ltd objectives by the availability of petroleum products in the country. Although, going by the array of business activities NNPC Ltd carries out across the oil and gas value chain, retailing of petroleum products is probably less than 10%, Nigerians would always judge it by the availability or not of petroleum products at the pumps. Hence, NNPC Retail is strategic to NNPC Ltd in its desire to meet the energy needs of the people.

    It is on record that NNPC Retail pioneered the sale of Liquefied Petroleum Gas (LPG) cylinders and partnered with LPG dealers to sell LPG across the country leading to greater penetration of LPG use in the country. Today over 60 percent of petroleum retail stations especially in the south of the country, have LPG sale-points. Everyone can still remember the NNPC Ltd branded LPG cylinders which were distributed and sold widely through NNPC Mega Stations. This exercise created awareness on the use of LPG instead of firewood and provided guidance on the safest way to use LPG. Today, the penetration of LPG use is very high especially in parts of the south.

    It is also important to realise that NNPC Retail Ltd is key to meeting one of the roles that the Petroleum Industry Act (PIA) has placed on NNPC Ltd as the supplier of last resort. What this means is that at any point in time when there is disruption in the supply chain of petroleum products either by man-made acts or natural disaster, it falls on the NNPC to ensure availability of products until such a time when normalcy is restored. In such situations, the NNPC Retail outlets could be the fastest means to get products to the populace going by their spread, reliability, and the trust it enjoys among Nigerians.

    This trust has been built over time through quality services and products and immediate action taken to remedy customers’ complaints or service failure where and when it occurs.

    Just recently, when the news of some sharp practices by some fuel attendants at an NNPC Retail station in Port Harcourt was trending in the social media, the company stepped in immediately and resolved the situation by identifying the station and the culprit and took immediate action to remedy the situation and assured customers of their commitment to quality of products and services.

    The action elicited a lot of positive response from the populace who commended NNPC limited for the quick response and assurances given to customers.
    Going forward, NNPC Retail Ltd, understandably, is looking forward to pioneering provision of charging points for electric vehicles at its stations in the near future and providing Compressed Natural Gas (CNG) as well as conversion of vehicles to the use of CNG for interested car owners in line with the global decarbonisation demands.

    As the company is evolving in its desire to serve the Nigerian people, it has continued to pioneer emerging services to meet the needs of the people without compromising its standing integrity as the major source of quality petroleum products and services.

  • NNPC denies awarding pipeline contracts to select Northern oil cabal

    NNPC denies awarding pipeline contracts to select Northern oil cabal

    The Nigerian National Petroleum Company Limited (NNPCL) has denied awarding pipeline contracts to a select group of “Northern oil cabal.”

    The Company clarified that the contracts for pipeline rehabilitation were awarded based on evaluation criteria and in accordance with industry standards.

    The management of the NNPC Limited made this known in a statement on Sunday while reacting to reports in some section of the media alleging underhand dealings in the contract award.

    It said the contracts, which were advertised, were awarded based on rigorous evaluation criteria and in line with industry norms.

    “The attention of the NNPC Ltd has been drawn to reports in an isolated section of the media alleging underhand dealings in the award of contracts for the rehabilitation of pipelines across the country.

    “It is crucial to provide accurate information to address any misconceptions and ensure transparency in our operations.

    “We would like to state categorically that these reports are fallacious and designed to bring the good name of the Company into disrepute.

    “NNPC Limited is deeply committed to adhering to the highest standards of transparency and global best practices in all our activities, and this includes our contracting process,” it said.

    The NNPC Limited, while re-emphasising its commitment to transparency, said it subjected the selection process to a competitive tender guided by Bureau of Public Procurement standards, Infrastructure Concession Regulatory Commission expertise, and the active involvement of a Transaction Advisor.

    It said it also had representations from NEITI and the Ministry of Justice in the project development team and the evaluation exercise.

    It listed the composition of Consortium members per lot spread across Nigeria.

    “LOT 1: Oilserve Ltd, Chu Kong Steel Pipe Group Company Ltd, Saudi Crown Oilserve.

    “LOT 2: MacReady Oil and Gas Services, COBRA Instalicios S.A, Control Y Montajes Industriales and International De Pipelines, Iron Products Industries Ltd, Batelitwin Global Services Ltd, Bauen Empresa Constructora SAU, Sanderton Energy Ltd, The Spanish National Association of Manufacturers.

    “LOT 3: A A Rano, Zakhem Construction Nigeria, Bablinks Resources Ltd, VAE Controls S.R.O and LOT 4: MRS Oil and Gas, CPPE Nigeria Ltd

    “It is imperative to emphasise that these contracts are Build, Operate and Transfer agreements, and selected partners are to finance the rehabilitation and do not entail the transfer of control of these assets to any particular company,” it said.

    It said its objective was to enhance the integrity and functionality of the pipelines to facilitate the efficient transportation of crude oil to refineries and the distribution of its products across the country.

    According to the NNPC management, the ownership of these strategic national assets remains with NNPC Limited, and are fully committed to ensuring their continued operation in the interest of over 200 million Nigerians.

    It would be recalled that some sections of the media recently alleged that NNPC Ltd has awarded juicy rehabilitation contracts of the nation’s pipelines to four oil companies, including two downstream retailers.

  • Over $23bn revenue generated by oil and gas in 2021 – NEITI

    Over $23bn revenue generated by oil and gas in 2021 – NEITI

    The Nigeria Extractive Industries Transparency Initiative (NEITI) said the oil and gas industry generated over $23billion in 2021.

    The Executive Secretary of NEITI, Dr Orji Ogbonnaya-Orji said this while presenting highlights on the 2021 Oil and Gas report unveiled on Monday in Abuja.

    According to Ogbonnaya Orji, the revenue sources included sales of federation crude oil and gas, taxes, royalties, concession rental, gas flare penalty, bonus and license fees, and transportation fees.

    He said that the total revenue was also generated through dividends from NLNG, NDDC levy, NCDMB levy, Ness fee, and miscellaneous income.

    According to the NEITI boss, a total of $13.2 billion dollars was remitted from the sum to the federation account.

    He said that the Nigeria National Petroleum Corporation, before its transition failed to remit about $2 billion to the federation account and a total of $6.9 billion was deducted at FAAC.

    Ogbonnaya-Orji said that while oil production for the year under review stood at about 566,129 million barrels per day, gas production came at over 2,743,700 million standard cubic feet per day.

    He said that the sector contributed a total of 7.2 per cent to the nation’s Gross Domestic Product (GDP) in 2021 with export contribution of 76.2 per cent.

    The executive secretary said that  the Federal Government paid about $3.087 billion in cash calls as equity contributions while the outstanding cash-call liabilities payable by the federation stood at about N330.007 billion.

    On data of Beneficial Owners (BO) of Assets, Ogbonnaya-Orji said that about 69 companies were covered in the production of the report and have disclosed some BO information through NEITI or CAC portal except four companies.

    On subsidy, the NEITI boss said about $1,159 trillion was paid by the government as subsidy between March to December 2021.

    “NEITI audits revealed that between 2006 and 2021, a total of N8.149 trillion has been so far expended on petroleum subsidy, now referred to as under-recovery,’ he said.

    On recommendations, he said that based on the outstanding liabilities payable to FIRS and NUPRC, the NNPC and NPCD should be investigated while other companies should promptly pay their liabilities.

    Ogbonnaya-Orji said the report also recommended that a special investigation be instituted to establish the status of our non-operational refineries and value for money assessment on the refineries should be carried out.

    He further reiterated the need to strengthen remediation mechanisms and involve independent third parties to conduct detailed investigations when necessary among other recommendations.

    Earlier, stakeholders in the oil and gas sector commended NEITI on efforts towards ensuring transparency and accountability in the industry.

    Representing the Secretary to Government of the Federation, George Akume, his Permanent Secretary on Political and Economic Affairs, Esuabana Nko-Asanye, reiterated the importance of the report to economic development.

    Akume reaffirmed the Federal Government’s commitment to support and deepen the implementation of the EITI in Nigeria.

    He then restated the need for security issues especially in the Niger/Delta to be tackled to reduce losses in the sector.

    The Group Managing Director of NNPCL, Mele Kyari, represented by his Chief Compliant Officer, Nasir Usman, pledged the unreserved support of NNPCL to NEITI to enable it achieve its mandate.

    Representing the Minister, Budget and Economic Planning, his Permanent Secretary, Nebolisa Anako, stated the importance of data for economic planning.

    He then reiterated the commitment of the government to the mandate of NEITI as the oil and gas sector was one of the major sources of foreign exchange for the nation.

    The Chairman, House Committee on Petroleum, Hon. Ikenga Ugochinyere, called for the need to amend the NEITI Act and urged for more government allocation to the initiative to enable it better carry out its mandate.

    Ugochinyere also pledged the commitment of the House to work towards the implementation of the report that was unveiled today.

    Similarly, the Chairmen Senate Committee on Petroleum Upstream, Etang Williams and the Senate Committee on Oil and Gas Host Communities, Benson Agadaga also expressed commitment to stand by NEITI in implementing recommendations of the report.

    The unveiling of the 2021 report,was attended by various stakeholders and partners in the oil and gas sector in the country.

  • NNPC denies plans to move headquarters to Lagos

    NNPC denies plans to move headquarters to Lagos

    The Nigeria National Petroleum Company (NNPC) Ltd. has denied speculations that it  plans to move its headquarters in Abuja to Lagos.

    Mr Mele Kyari, the Group Chief Executive Officer (GCEO) NNPC made the denial at the resumed investigative hearing of the ad hoc committee on the acquisition of OVH Energy by NNPCL on Friday.

    Kyari said that contrary to the petition by petitioners, the company had no plan of moving its headquarters to Lagos, adding that this was in spite of its present status of a private company, registered with the Corporate Affairs Commission.

    He said the insinuation might not be unconnected with the fact that 70 per cent of its operations were in Lagos, adding that moving the headquarters would incur additional cost on the company.

    He said the NNPC Ltd. had merged its operations and moved the right people where they were required to function.

    According to him, the registered headquarters of NNPC Ltd. is in Abuja, the mere fact that the GCEO sit with the operations staff does not mean it had moved to Lagos.

    According to him, those making the allegation were doing so because they don’t want to move; this is the challenge of merger and acquisition all over the world. We have given them option to resign.

    “The company cannot keep them where they are not needed; this is what the petitions are all about.”

    He noted that in every merger and acquisition, the dominant culture must be allowed to take over such as service, adding that this was exactly what the NNPC Ltd was doing.

    “Merger and acquisition comes with challenges but we are minimising the impact, we have to make the business happen.

    “We are doing everything possible to ensure that it has no negative impact and we will ensure it creates value,” he said.

    Speaking on the need to retain expatriates, he said there was no national oil company of  limited liability that does not have expatriates, adding that it took him many days of engagement to make the expatriates stay.

    “We don’t have the capability and there is no way we can progress without having inclusion of people that can create values,” he said.

    Kyari said that the NNPC Ltd. needed to be the national oil company that people could deal with, adding that international partners always looked at inclusion and the NNPC must get expatriates to live and work with it.

    He, however, said that Nigerians must learn to thank him for a job well done, saying, “I must say that this country should thank me, and I say that without reservation.

    According to him, in the first quarters of 2023, we made N18.4 billion profit and before we acquired OVH, we couldn’t make it.

    He added that before now, the NNPC Ltd. struggled to control 15 per cent of OVH, disclosing that now they were now in control of 30 per cent.

    Rep.  Hassan Na’laraba, the Chairman of the committee, commended the GCEO for the clarification, adding that they were issues based to wade off corruption.

    He said the GCOE could be re-invited for further clarifications because the committee still had a week to submit its report, adding that there was need to have an interface with him in the course of oversight.

  • NNPC, MMDPRA CEOs fail to appear before Reps committee

    NNPC, MMDPRA CEOs fail to appear before Reps committee

    The Group Chief Executive Officer of the Nigeria National Petroleum Company Ltd (NNPC), Mr Mele Kyari, on Monday failed to appear before a House of Representatives ad hoc committee.

    The committee, headed by Abubakar Nalaraba is investigating the circumstances surrounding the acquisition of OVH Energy Marketing by the NNPCL.

    The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (MMDPRA), Mr Farouk Ahmed, also failed to appear.

    The two executive officers however sent representatives.

    The NNPC Ltd sent its Executive Vice President (Downstream), Mr Yemi Adetunji while the NMDPRA was represented by Mr Soji Soloye.

    They said their various Chief Executives could not attend the hearing because they were attending to other matter.

    When the chairman of the committee inquired if the officials can represent their principals at the probe, they said they could not.

    Nalaraba said it was unfortunate because the committee was far behind schedule in the discharge of its assignment.

    “This is an ad hoc committee on the need to investigate the irregularities and alleged corruption in the Nigeria energy security provider, the NNPC Ltd. and the acquisition of OVH Energy Marketing.

    “The House resolved to set up this ad hoc committee to investigate the circumstances surrounding the acquisition of OVH Energy by NNPCL and report within four weeks.

    He said the time allocated to conclude and submit it’s report was within four weeks, adding that the committee was far behind schedule in spite the extension of the House recess.

    He added that the committee still felt the need to continue and progress with the investigation.

    The hearing however dissolved into a closed-door session for the panel to decide an appropriate time for the CEOs to appear.

    The committee sent a letter dated Aug. 28, addressed to the managing director of NNPC Retail Limited.

    The letter read in part: “Aware that the House of Representatives at its sitting on Thursday 27th July 2023 considered the Motion titled: Need to Investigate the Irregularities and Alleged Corruption in the Nigerian Energy Security Provider, NNPC Retail Limited (HR. 171/07/2023).

    “The House resolved to set up an Ad-hoc Committee to investigate the allegations raised in the Motion and subsequently constituted the Ad-hoc Committee.”

    Consequent to the resolution of the meeting, the A hoc committee requested the NNPCL to furnish it with information about “registration documents/history from CAC for OVH, Nueoil, and NNPC Retail Limited (NRL).

    Others the Board Resolution of NNPCL on purchase of OVH, Audited Financial Statement and Management Accounts from 2015 to Date OVH, Nueoil, NRL and NNPCL” and the “payroll from 2015 to date for NRL and OVH, Board Resolution of NRL/CHQ for movement of head office to Lagos and evidence of Tax Payments for NRL and OVH from 2015 to date.”