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Tag: NNPCL

  • Reps committee plans audit of petrol subsidy regime

    Reps committee plans audit of petrol subsidy regime

    The House of Representatives Committee on Petroleum Resources (Downstream), says it plans to conduct a comprehensive audit of the subsidy regime of the Premium Motor Spirit (PMS) in the country.

    Rep. Ikeagwuonu Ugochinyere, the Chairman, said this at the committee’s inauguration in Abuja on Friday.

    He said that the committee’s legislative priorities included ensuring energy security, enhancing professionalism in the petroleum sector and driving economic transformation.

    Others, he said, included fostering accountability, institutional reforms, and focusing on revenue recovery and generation.

    ‘‘The committee’s specific objective is to assist the Federal Government in recovering the 20 billion dollars revenue lost in the sector.

    He said the committee would also prioritise early remittance of federal revenues and the recovery of unremitted funds in the coming days.

    Ugochinyere emphasised the importance of addressing the challenges faced by Nigerians due to the removal of the subsidy on petrol.

    He said the committee also plans to probe the subsidy beneficiaries, scrutinise loan transactions and pre-export financing arrangements, and to review loans related to crude oil.

    The lawmaker said the committee would examine the direct sales, direct purchase method, which he said involved using crude for importing refined petrol and other associated value chains.

    He said the committee would collaborate with other relevant committees in the upstream, mainstream, gas, and petroleum training fund sectors to achieve its objectives.

    In reviewing the PIA, he said the committee plans to assess the actions taken before and after its implementation, the status of national assets, and the achievement of energy security.

    He also said the committee would examine competition in the downstream sector, as originally intended in the PIA.

    Ugochinyere said that the committee would also address the issue of NNPCL being the primary petrol importer, contrary to the PIA’s vision of diverse downstream operators.

    He said the committee would address the challenges related to domestic crude supply for modular refineries and local refineries, which is a constitutional provision under the PIA.

    ‘’The committee will also ensure adequate supply of domestic crude to achieve energy security,’’ he said.

    Ugochinyere expressed confidence in the committee’s ability to fulfill its mandate and urged stakeholders in the petroleum sector to cooperate in the discharge of its functions and embrace positive changes.

  • Navy halts theft of petrol at NNPCL’s vandalised pipeline in Lagos

    Navy halts theft of petrol at NNPCL’s vandalised pipeline in Lagos

    The Nigerian Navy Ship (NNS) BEECROFT has discovered and halted the siphoning of petrol from one of NNPCL’s pipelines at Atlas Cove, Lagos.

    Commander, NNS BEECROFT, Commodore Kolawole Oguntuga said this in a statement issued by its spokesperson, Sub.-Lt. Happiness Collins on Thursday.

    He said the activities of the fuel thieves were halted on Wednesday.

    Oguntuga said the navy halted the theft in collaboration with troops of “Operation AWATSE’’.

    “The thieves connected hoses and suction pumps to vandalised parts of the pipeline to steal petrol.

    “After halting their activities, the NNPCL was alerted and repairs on the vandalised parts of the pipeline have gone underway.

    “Efforts are on-going to detect and rectify other potential vulnerabilities along the pipeline to ensure a comprehensive approach to deter future illegal activities,’’ he said.

    Oguntuga noted that activities of economic saboteurs posed significant threat to petroleum products availability and to the nation’s economic well-being.

  • Group says frustrated monarch, illicit oil barons behind fake Warri protests against boss of NNPCL, Kyari

    Group says frustrated monarch, illicit oil barons behind fake Warri protests against boss of NNPCL, Kyari

    The Niger Delta Peoples Assembly (NDPA), on Saturday said that a frustrated monarch and illicit oil barons were behind “fake Warri Protest” against the Group Chief Executive officer (GCEO) of NNPCL, Mele Kyari.

    Specifically, the group said that the act of organized protest has become a huge joke in the Niger Delta, wondering how anyone could take what happened in Warri, Delta state as a protest.

    The group in a press release signed by its National Coordinator, Richard Toritseju Okotie, said it was a thing of shame for few belligerent and ill informed youths, holding placards, in front of the NNPCL’s building that hosts the Nigerian Upstream Petroleum Regulatory Commission ( NUPRC) and the Nigerian Nigerian Midstream Petroleum Authority (NMPA), Warri, to be referred to as a protest of a coalition of 26 youth groups.

    The group described the recent protest in Warri for the probe and removal from office the GCEO of NNPCL Mele Kyari as a charade,imploring the sponsors of the so called protest to give peace a chancem

    NDPA noted that the supposed coalition protest was indeed a joke in its entirety, adding that it was an orchestrated fiction poorly steam rolled and it did not make an impact it was intended due largely to lack of numbers, coordination and purpose.

    “The brain behind the wishy washy outing was a first class traditional ruler, who considers himself very smart and so wants to harvest without planting”, the group said.

    According to the group; “The lacklustre reception accorded his protesting youths by the staff of the NUPRC was most deserving, he knew he had the short end of the stick. The monarch should hide his head in shame for trying to resort to cheap blackmail and crude methods to have his way in the renewal of his pipelines surveillance contract. Very well, he does not merit the re-award. The monarch failed miserably alongside his illicit oil barons, and have become more frustrated by recent nationalistic policies of Mele Kyari to retool the NNPCL”.

     

     

    The group further said that the various names paraded as the group of misguided youths that took placards to the gates of NUPRC, were, Niger Delta Youth Association, Niger Delta Women for Change, Niger Delta Youth Empowerment Network & South South United Youth Association, saying that they are all non- existent and mere fabrications and existed only in their imagination and that of their sponsors.

    “In a very poorly articulated address, they presented their grouse as financial impropriety; lack of vision, poor performance, autocratic conduct, among others against the NNPCL GMD. And this prompts the question of whether they are auditors appointed by Mr. President to study the books of the NNPCL? On the other hand, it would have helped their protest if they had an auditor’s report indicting the GCEO of NNPCL”, they said.

     

    According to the group, NNPCL is the most probed and audited agency by other government institutions, such as the National Assembly, adding that; “This is due to the oversight function exercise over it by NASS, and Mele Kyari has never been found wanting. Mele Kyari infact enjoys a clean bill of health”.

    They stated that on the issue of refineries rehabilitation, the mischief makers and their sponsors should be informed that the rehabilitation of the nation’s refineries was ongoing, with the Warri and Port Harcourt refineries to come on stream in December 2023.

    “There is an increase in crude oil production in 2023 due to the ingenuity and commitment of the GMD, who launched a relentless war against oil theft and pipelines vandalism by local operators and international barons. His sincere efforts and patriotic zeal have been recognised and appreciated by all critical stakeholders within and outside the oil industry and indeed outside the shores of Nigeria.

    To hurt the feelings of hired jobless protesters and their main principal, our indefagible President Bola Ahmed Tinubu reposed huge implicit confidence in Mr. Mele Kyari, a reservoir of knowledge”, they said.

    They said also that; “Does anyone have to remind the hollow head Street urchins, who served as ready tools of the youthful but directionless monarch, that the decision of Mr. President to retain Mele Kyari as GCEO of NNPCL was a confirmation of his resourcefulness, astuteness and commitment to the attainment of set goals. With this singular action of President Bola Ahmed Tinubu, it was very clear to discernible minds that Mr. President has an implict confidence in the man Mele Kyari as an eminently qualified member of the team to deliver the vision and mission of the Renewed Hope mantra in the oil industry”.

    The group disclosed that Mele Kyari recently awarded pipelines rehabilitation and surveillance contracts throughout the country to a consortium of oil firms in a bid to ensuring uninterrupted conveyance of crude and supply of refined products to all nooks and crannies of the country.

    “The grouse of the unhappy king stems from the refusal of the NNPCL’s GCEO to renew his non-performing pipelines surveillance contracts, which expired last September. The first class monarch is still dazed that Mele Kyari, having reviewed the said contract, refused to be used, as he declined all entreaties’, they stated.

     

    The group said that crude carrying pipelines in the areas under the monarch’s control were daily compromised and vandalised by oil thieves, while he collected millions of dollars for unexecuted jobs, saying that the era of such free money no longer exists in the current regime.

    “He was thoroughly embittered when the NNPCL management informed him that his surveillance contract would not be renewed, as it would be subsumed under a very effective and efficient global contract”, the group said.

    The offence of Mele Kyari, according to the group is that he refused to renew the monarch’s contract when it expired a month ago and hence he is calling for his head.

    They claimed that;”The embattled monarch is also reported to be angry with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) led by Mr. Gbenga Komolafe, for not circumventing the implementation of the PIA in his domain to his benefit. He devised desperate tactics to bypass the PIA law, but it ended in fiasco. He was roundly ignored by NUPRC and tamed by the NNPCL”.

    “The aggrieved monarch in cahoot with oil thieves is unimpressed with Mele Kyari’s bid to rid the NNPCL of all illegal oil operations, and had hired fake protesters to malign the committed GCEO. We implore Mr. President to ignore the media hype of the supposed protest. It was a frustrated monarch cutting his nose to spite his face, who was behind it.
    Mele Kyari should be preserved to continue his good works in the national interest. No one changes a winning team, rather, you strengthen it. Only individuals who engaged in unlawful activities and seeking unmerited favours that are afraid of Mele Kyari” the group said.

    They added that; “And the oil thieves and those seeking to circumvent the law would continue to have reasons to be unhappy , with Mele Kyari enjoying a merited endorsement and backing of Mr. President in his patriotic zeal to rid the nation’s oil industry of all sharp practices associated with crude oil and petroleum products. Our dear, Mele Kyari, ride on in the national interest”.

     

    The Full Press Release Reads “The act of organized protest has become a huge joke in the Niger Delta. How can anyone take what happened in Warri Delta State as a protest?
    Can few belligerent and ill informed youths, holding placards, in front of the NNPCL’s building that hosts the Nigerian Upstream Petroleum Regulatory Commission ( NUPRC) and the Nigerian Midstream Petroleum Authority (NMPA) Warri, be referred to as a protest of a coalition of 26 youth groups?

    “That was the charade that happened in Warri recently, which those who sponsored it called a protest asking for the probe and removal from office of the GCEO of NNPCL, Mele Kyari.

    The supposed coalition protest was indeed a joke in its entirety. It was an orchestrated fiction poorly steam rolled. It did not make an impact it was intended due largely to lack of numbers, coordination and purpose.

    The brain behind the wishy washy outing was a first class traditional ruler, who considers himself very smart and so wants to harvest without planting”.

    “The lacklustre reception accorded his protesting youths by the staff of the NUPRC was most deserving, he knew he had the short end of the stick. The monarch should hide his head in shame for trying to resort to cheap blackmail and crude methods to have his way in the renewal of his pipelines surveillance contract. Very well, he does not merit the re-award”.

    “The monarch failed miserably alongside his illicit oil barons, and have become more frustrated by recent nationalistic policies of Mele Kyari to retool the NNPCL.

    The various names paraded as the group of misguided youths that took placards to the gates of NUPRC, were, Niger Delta Youth Association, Niger Delta Women for Change, Niger Delta Youth Empowerment Network & South South United Youth Association. They are all non- existent and mere fabrications. They existed only in their imagination and that of their sponsors”.

    “In a very poorly articulated address, they presented their grouse as financial impropriety; lack of vision, poor performance, autocratic conduct, among others against the NNPCL GMD. And this prompts the question of whether they are auditors appointed by Mr. President to study the books of the NNPCL?

    On the other hand, it would have helped their protest if they had an auditor’s report indicting the GCEO of NNPCL

    NNPCL is the most probed and audited agency by other government institutions, such as the National Assembly. This is due to the oversight function exercise over it by NASS, and Mele Kyari has never been found wanting. Mele Kyari infact enjoys a clean bill of health.

    On the issue of refineries rehabilitation, the mischief makers and their sponsors need to be informed that the rehabilitation of the nation’s refineries is ongoing, with the Warri and Port Harcourt refineries to come on stream in December 2023”.

    “There is an increase in crude oil production in 2023 due to the ingenuity and commitment of the GMD, who launched a relentless war against oil theft and pipelines vandalism by local operators and international barons. His sincere efforts and patriotic zeal have been recognised and appreciated by all critical stakeholders within and outside the oil industry and indeed outside the shores of Nigeria.

    To hurt the feelings of hired jobless protesters and their main principal, our indefagible President Bola Ahmed Tinubu reposed huge implicit confidence in Mr. Mele Kyari, a reservoir of knowledge”.

    “Does anyone have to remind the hollow head Street urchins, who served as ready tools of the youthful but directionless monarch, that the decision of Mr. President to retain Mele Kyari as GCEO of NNPCL was a confirmation of his resourcefulness, astuteness and commitment to the attainment of set goals. With this singular action of President Bola Ahmed Tinubu, it was very clear to discernible minds that Mr. President has an implict confidence in the man Mele Kyari as an eminently qualified member of the team to deliver the vision and mission of the Renewed Hope mantra in the oil industry.

    Mele Kyari recently awarded pipelines rehabilitation and surveillance contracts throughout the country to a consortium of oil firms in a bid to ensuring uninterrupted conveyance of crude and supply of refined products to all nooks and crannies of the country”.

    “The grouse of the unhappy king stems from the refusal of the NNPCL’s GCEO to renew his non-performing pipelines surveillance contracts, which expired last September.

    The first class monarch is still dazed that Mele Kyari, having reviewed the said contract, refused to be used, as he declined all entreaties.

    Crude carrying pipelines in the areas under the monarch’s control were daily compromised and vandalised by oil thieves, while he collected millions of dollars for unexecuted jobs. The era of such free money no longer exists in the current regime”

    “He was thoroughly embittered when the NNPCL management informed him that his surveillance contract would not be renewed, as it would be subsumed under a very effective and efficient global contract.

    The offence of Mele Kyari is that he refused to renew the monarch’s contract when it expired a month ago. Hence, he is baying for his blood.

    The embattled monarch is also reported to be angry with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) led by Mr. Gbenga Komolafe, for not circumventing the implementation of the PIA in his domain to his benefit. He devised desperate tactics to bypass the PIA law, but it ended in fiasco. He was roundly ignored by NUPRC and tamed by the NNPCL”.

    “The aggrieved monarch in cahoot with oil thieves is unimpressed with Mele Kyari’s bid to rid the NNPCL of all illegal oil operations, and had hired fake protesters to malign the committed GCEO.

    We implore Mr. President to ignore the media hype of the supposed protest. It was a frustrated monarch cutting his nose to spite his face, who was behind it.

    Mele Kyari should be preserved to continue his good works in the national interest.

    No one changes a winning team, rather, you strengthen it”.

    “Only individuals who engaged in unlawful activities and seeking unmerited favours that are afraid of Mele Kyari.

    And the oil thieves and those seeking to circumvent the law would continue to have reasons to be unhappy , with Mele Kyari enjoying a merited endorsement and backing of Mr. President in his patriotic zeal to rid the nation’s oil industry of all sharp practices associated with crude oil and petroleum products.

    Our dear, Mele Kyari, ride on in the national interest.

    God bless Nigeria!!!

    SIGNED for and on behalf of NIGER DELTA PEOPLES ASSEMBLY (NDPA)

    RICHARD TORITSEJU OKOTIE
    NATIONAL COORDINATOR.

  • Massive organisational shake up in NNPCL as staff with less than 2yrs service fired

    Massive organisational shake up in NNPCL as staff with less than 2yrs service fired

    There’s massive organisational shake up ongoing in the Nigerian National Petroleum Corporation Limited has announced retirement of staff that have less than 2years in service to exit.

    This was contained in a statement on Tuesday signed by its management, the NNPC Limited said members of staff with less than fifteen months to statutory retirement will be exiting the Company effective 19th September 2023.

    The statement said: “In our bid to pursue effective organisational renewal to support the delivery of our strategic business objectives, it has become imperative to rejuvenate our workforce.

    Consequently, in addition to the recent exit of three (3) Executive Vice Presidents, other Management Staff with less than fifteen (15) months to statutory retirement will be exiting the Company effective 19th September 2023.

    “This is in line with our commitment to scale up NNPC Ltd’s capabilities through targeted talent management and equal opportunity for all Nigerians.”

  • NNPCL announces changes in senior management team

    NNPCL announces changes in senior management team

    The Nigerian National Petroleum Company Limited (NNPCL) on Saturday announced management changes and appointed new executive vice presidents for the upstream, downstream, and gas sectors.

    The NNPCL said in a statement signed by its Chief Corporate Communications Officer, Garba Deen Muhammad, on Saturday night that the appointments take immediate effect.

    The company said this is in line with its commitment and drive for organisational renewal, anchored on its business imperatives and capabilities through broad-based leadership exposures.

    The statement reads: “In line with NNPC Ltd.’s commitment and drive for organisational renewal, anchored on our business imperatives, standards of excellence, people development, and strengthening our competencies and capabilities through broad-based leadership exposures, the company wishes to announce the following executive appointments with immediate effect.

    “Oritsemeyiwa A. Eyesan, Executive Vice President, Upstream; Olalekan Ogunleye, Executive Vice President, Gas, Power, and New Energy; and Adedapo A. Segun, Executive Vice President, Downstream.”

     

  • Pipeline Surveillance Contract: Warri North ex-agitators demands own percentage of contract from NNPC

    Pipeline Surveillance Contract: Warri North ex-agitators demands own percentage of contract from NNPC

    The Immediate past Specail Adviser on Security to Former Governor Ifeanyi Okowa and Ex-Agitators’ Leader, General Aroni Oputu together with other top Ex-agitators drawn from the Warri North Local Government Area of Delta State Wednesday demanded outrightly from the Nigeria National Petroleum Corporation (NNPC) their own Percentage of the Pipeline Security Surveillance Contract, saying that Egbema people can no longer continue to live like slaves in their father land, while an individual collects the entire block of pipe Surveillance Contract from the Federal government.
    Addressing Journalists on behalf of the Ex-agitators, after a top Secret meeting held in Egbema kingdom, the immediate past Special Adviser to former Governor Okowa on Security and Ex-Agitators’ leader, General Aroni Oputu declared that they will no longer tolerate the injustice being meted on them in Warri North local government area.
    The Ex-agitators said; “We have written an open letter to the President of the Federal Republic of Nigeria through the Chief of Staff and copied the Senate President, National Security Adviser, Inspector general of police, Director of State Security Services and Chief of Defence Staff.
    ‘We are the phrase one Ex-agitators who embraced the Presidential Amnesty programme. We have been neglected and excluded in the award of pipeline security surveillance Contract in our area by the NNPC. We have complained severally and drawn the attention of NNPC to this serious neglect of our youths and ex-agitators from Warri North but the Mele Kyari led NNPC and his counterpart Mohammed Zarah,
    has kept derf ears despite our complaints. The leadership of of NNPC and NPDC has continuously excluded Warri North in the award of pipeline security surveillance Contract.”
    “We have been going round the state maintaining peace in the creeks and waterways but we have never been carried along in the pipeline security Contract right from the time Capt. Hosa to this percent day, no percentage has been given to Warri North to handle. And now, another pipeline security contract is about to be awarded so we demand our own percentage. We want out own percent of the contract to control”
    “We have so many oil fields in Egbema kingdom of Warri North local government, yet nothing to show for it, rather we are living like slaves. We have the Igbetu-Okun field, Opuekeba Field, Alero field,
    OML49 with over 20 Wellheads operated by Chevron, Dibi field, Opuama flowstaion, OML40 with over 20 wellheads operated by NPDC/ECLREST, Conoil OML103 Drilling work ongoing in Warri North and others”.
    “We are not slaves and the Federal  government should know that me and my group are not happy and we have been patient over the years since we embraced the Federal government Amnesty.  But this time around we will not take it likely. That is why we are crying out to the federal government especially the NNPC who is in charge of the surveillance contract renewal to look keenly into this issue and give us our percentage in our area to secure. They should recognize us and do the needful to sustain the existing peace in the Niger Delta region.”
    “We hereby call on NNPC for the umpteenth time to give us directly our pipeline security surveillance and maintenance contract as we will no longer tolerate injustice being meted on the people of Egbema in Warri North local government area. We have been patient enough. Long Live Federal Republic of Nigeria and Delta State.”
  • NNPC refutes plan to increase fuel prices amidst speculations

    NNPC refutes plan to increase fuel prices amidst speculations

    The Nigerian National Petroleum Company Limited (NNPCL) has denied any intentions of hiking the retail price of petrol in the country amid speculations and rising inflation.

    The country’s annual inflation rate surged to 24.08 per cent in July from 22.79 per cent in the month of June, according to data released by the National Bureau of Statistics (NBS) on Tuesday.

    Responding to circulating reports that petroleum pump prices could surge from the current N617 per litre to a range between N720 and N750, the NNPCL released a statement on its official platform refuting the claims.

    “Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our petrol motor spirit (PMS) pump prices as widely speculated.

    “Please buy the best quality products at the most affordable prices at our NNPC Retail stations nationwide,” the NNPCL said.

    It would be recalled that in May, the NNPCL adjusted its pump price as a direct consequence of the removal of petroleum subsidy as announced by President Bola Tinubu in his inaugural address on May 29.

    Following this announcement, the NNPCL directed its outlets across the country to vend fuel between N480 and N570 per litre, an increase of almost 200 percent from the initial rate of N185.

    The surge in petrol price immediately set off a chain reaction, triggering a rise in transportation fares and the cost of goods and services by varying degrees.

    In July, the cost of petrol at NNPC Retail outlets further rose to N617 per litre in Abuja and other major cities in the country and the company attributed the spike to the sway of ‘market forces.’

    The Group Chief Executive Officer of NNPC, Mele Kyari, had explained that the oil sector’s deregulation ushered in a new era of market-driven pricing dynamics.

    “We have the marketing wing of our company. They adjust prices depending on the market realities. This is really what is happening; this is the meaning of making sure that the market regulates itself so that prices will go up and sometimes they will come down also. This is what we have seen, and in reality, this is what the market works,” Kyari said.

    However, as the country’s refineries remain non-operational, the reliance on importing refined fuel subjects the cost of petroleum to the fluctuations of global market dynamics.

    Industry experts and consumers have expressed concerns that the state-owned oil company’s assurance might not hold true if market conditions shift.

  • BREAKING! NNPCL denies plan to increase fuel pump price

    BREAKING! NNPCL denies plan to increase fuel pump price

    The Retail arm of the Nigeria National Petroleum Company Limited, NNPC, has debunked media reports of a fresh plan to increase the price of Premium Motor Spirit popularly called fuel.

    It said this in reaction to claims making the round that there are fresh plans to raise the price of petrol from the current N617 per litre to between N720 and N750 per liter.

    But reacting on Monday in Abuja, the NNPC in a message to it’s customers urged them to disregard the speculations being made in some quarters.

    Read message below:

    Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our PMS pump prices as widely speculated. Please buy the best quality products at the most affordable prices at our NNPC Retail Stations nationwide.”

  • Araraume, NNPCL legal fireworks shift to Court of Appeal

    Araraume, NNPCL legal fireworks shift to Court of Appeal

    … Araraume insists appeal by NNPCL against his reinstatement abuse of Court process

    Senator Ifeanyi Ararume has described as an abuse of court process, the appeal filed by the Nigerian National Petroleum Company Limited (NNPCL), seeking to upturn the judgment of a Federal High Court, which ordered his reinstatement as non executive chairman of the Board of the newly-created NNPCL.

    Araraume argued that the appeal by NNPCL was not only incompetent and lacking in merit but also a waste of the precious time of the court, which must be dismissed with a huge cost.

    His position was contained in his brief of argument dated and filed July 31, 2023, by his team of lawyers, led by Chief Chris Uche, SAN.

    Justice Inyang Ekwo of the Federal High Court, Abuja, had, in a judgment on April 18, 2023, ordered the immediate reinstatement of Araraume as NNPCL’s board chairman.

    The court had, in its judgment, held that his removal after his appointment by former President Muhammadu Buhari was illegal, unlawful, unconstitutional, null, and void and had subsequently nullified the president’s action.

    Besides, the court had also ordered the defendants which included Buhari, NNPCL and the Corporate Affairs Commission (CAC), to pay Araraume the sum of N5 billion being damages he suffered following his unlawful removal as NNPCL’s board chairman.

    In addition, the court had declared as a nullity all decisions and actions taken so far by the board in the absence of Araraume.

    Dissatisfied by the judgment, NNPCL had approached the Court of Appeal, Abuja, to challenge the decisions and orders of Justice Ekwo of the Federal High Court delivered on April 18, 2023.

    The NNPCL, in its appellant’s brief of argument, dated June 30, 2023, but filed July 3, 2023, presented 18 grounds upon which it was challenging the entire decision of the trial court.

    Specifically, the appellant through its lead counsel, Mr Yusuf Ali, SAN, urged the appellate court to set aside the judgment in favour of Araraume because the trial court lacked the requisite jurisdiction to entertain the suit, having been statute barred.

    He averred that the trial court misled and mis-applied the relevant statutory provisions which led it to the wrong decisions; that Araraume failed to adduce convincing, believable, cogent and compelling evidence in support of his suit; and that the trial court ought not to have entertained the suit, which was filed via originating summons.

    The appellant argued that the trial judge erred in law in holding that the president was wrong in removing Araraume as Board Chairman, adding that the constitution, PIA, 2021 as well as the NNPCL’s Memorandum and Article of Association, “give the power to appoint and remove the the Non-Executive Chairman of the appellant to the 2nd respondent, under the long established and judicially settled principle of he who have the power to hire can fire.”

    In addition, the appellant submitted that where a person’s appointment is removed by the person who confirmed the said appointment, such person is not bound to give reason in the letter of termination/ removal as done in this case.

    The appellant noted that where the person who confirmed the appointment chose not to give reason for his action, “it is not for the court to embark on a voyage of discovery and import reasons or motive for the termination of the appointment.”

    Similarly, NNPCL argued that the trial court erred in its interpretation of the constitution, Petroleum Industry Act, 2021, Section 288 of the Company and Allied Matter Act, to the extent that because the NNPCL was not incorporated as a statutory incorporation, the president can control the NNPCL, adding that the issue of control was never before the court.

    The appellant accordingly raised six issues for determination through which it wanted the appellate court to resolve the appeal.

    On the first issue, NNPCL submitted that the trial court acted requisite vires to have entertained Araraume’s suit in view of Section 254(c)(1) of the Constitution, Section 2 of the Public Officers Protection Act and Section 307 of the Petroleum Industry Act, (PIA), 2021.

    According to the appellant, the trial court erred in law when it went ahead to hold that the case of the claimant was not statute barred, despite evidence that the suit was filed eight months outside the three months provided by the law.

    On the second issue, NNPCL argued that the trial judge was wrong to have entertained the Araraume’s suit on Originating Summons, explaining that where facts in dispute were riotous, hostile and in conflict, Originating Summons was inappropriate.

    Besides, the appellant accused Justice Ekwo of not giving them fair hearing when it refused to hear and determine their application for a stay of execution they had filed on January 20, 2023.

    NNPCL claimed that at the proceedings of January 23, 2023, the attention of the trial court was drawn to application for stay of execution but, “the trial court refused to hear (the) same despite the fact that its attention was drawn to it.”

    Faulting the judgment of the Federal High Court, further, the appellant claimed that the trial court was wrong to have ordered Araraume’s reinstatement while at the same time awarding damage on the grounds that such amounted to double compensation.

    It was also the submission of the NNPCL that the trial judge erred in law when it granted the declarative reliefs in favour of Araraume even when he did not offer cogent, reliable, believable or convincing evidence to support his claims or prove his entitlement to the claim or even disclosed any cause of action against the appellant.

    They therefore urged the court to determine the appeal in their favour and set aside the judgment of Justice Ekwo delivered on April 18, 2023.

    Responding, Araraume faulted the appeal for being incompetent on the grounds that the said brief of argument was filed by a non-party in the suit.

    According to Araraume, there is no proper appellant before the Court of Appeal because the Nigerian National Petroleum Company Ltd that he sued is different from the Nigerian National Petroleum Company that filed the brief of argument and as such it lacked the locus standi and the legal personality of any brief of argument in this appeal or to prosecute same.

    “We submit that this is not a case of misnomer, but consistent with the position and attitude of the “Appellant” as if the 2nd respondent defendant sued by the 1st respondent at the court below was still a parastatal of government.”

    Meanwhile, Araraume has urged the court to dismiss the appeal with substantial cost for being a gross abuse of court process.

    According to him, the trial court acted within its constitutional and statutory jurisdiction when it entertained, heard, and determined his suit against the NNPCL, then President Muhammadu Buhari and the CAC.

    Araraume claimed that NNPCL was wrong in challenging the court’s jurisdiction on the premise that his case was a labour or employment related matter, which should be heard by the National Industrial Court.

    “In view of the clear position of the 1st respondent as Director/Non-Executive Chairman of the appellant, it was wrong and incorrect to regard the 1st respondent as an employee of the appellant or employee of the 2nd respondent.”

    Araraume further argued that his case arose from the operation of the appellant as a corporate entity incorporated under the CAMA, 2020.

    On the issue of protection Araraume in the reply filed by his lead counsel, Chief Chris Uche, SAN, pointed out that the provisions of Section 2 of the Public Officers Protection Act and Section 307 of the PIA, 2021 were not applicable to the suit as statutes of limitation.

    According to him, an elected President of the Federal Republic of Nigeria is not a Public Officer,” adding that the Public Officers Act was intended to protect the officer from detraction and unnecessary litigation but never intended to deprive a party of legal capacity to ventilate his grievance in the face of stark injustice.

    Besides, Araraume submitted that the mode of commencement of the suit was appropriate being one of the interpretation of the provisions of the constitution, CAMA, 2020 and PIA, 2021, since there was no hostile or hotly contested facts.

    In addition, he submitted that the necessary parties were before the court; and, as such, there was no breach of the right to fair hearing of any non-party.

    “The court below was right to have granted the reliefs sought in the circumstances, (the) same having been proved in accordance with the law, and there being no defence thereto.”

  • Why we paid N123bn interim dividend to FAAC – NNPCL

    Why we paid N123bn interim dividend to FAAC – NNPCL

    The Nigerian National Petroleum Company Limited (NNPCL) has given reasons behind the payment of an interim dividend of N123 billion to the Federation Account Allocation Committee (FAAC) for the month of June.

    FAAC had on Thursday shared N907 billion among the three tiers of government.

    From the money shared, NNPCL contributed N81 billion as a monthly interim dividend and N42 billion as 40 percent oil Production Sharing Contract (PSC) profit totaling N123 billion.

    The NNPCL Chief Financial Officer, Mr. Umar Ajiya, said in a statement that the move was to consolidate its post-Petroleum Industry Act (PIA) 2021 status as an income-generating company.

    “This payment is in addition to compliance on payment of royalties and taxes,” he said.

    According to Ajiya, the latest development is a  departure from previous years of sleaze and wastage.

    “This will set the track for future profitability and global best practices designed to build NNPCL into a world-class oil company in the ranks of  Saudi Aramco, China Petroleum & Chemical Corp., Exxon Mobil Corp., and others.

    “The goal of Malam Mele Kyari, the Group Chief Executive Officer (GECO), NNPCL, is to set the nation’s oil company on the path of profitability and sustainable growth.

    “Since the transformation of the NNPC from a loss-making organisation pre-PIA to a robust profit-making company post-PIA, the company under Kyari has pursued global governance best practices aimed at repositioning the company for greater growth.

    “The payment to FAAC clearly shows that the company under the leadership of Kyari is moving in a positive trajectory as enshrined in the PIA.”

    On Thursday, Mr Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant General of the Federation (OAGF) had stated that the N907.054 billion shared by FAAC comprised distributable statutory revenue of N301.501 billion and Value Added Tax (VAT) revenue of N273.225 billion.

    Mokwa stated that the revenue shared also comprised Electronic Money Transfer Levy (EMTL) revenue of N11.436 billion and Exchange Difference revenue of N320.892 billion.

    He said that the total deductions in June for cost of collection was N73.235 billion and total deductions for savings, transfers, and refunds was N979.078 billion noting that the balance in the Excess Crude Account (ECA) was 473,754.57 million dollars.

    Also during the FAAC meeting chaired by the Accountant General of the Federation, Dr Oluwatoyin Madein, stated that from the total distributable revenue of N907.054 billion; the Federal Government received N345.564 billion.

    In the same vein, State Governments received N295.948 billion and the Local Government Councils got N218.064 billion.

    A total of N47.478 billion of the money was shared to the relevant states as 13 per cent derivation revenue.

    Gross statutory revenue of N1,152.921 billion was received for the month of June 2023, which was higher than the sum of N701.787 million received in the month of May by N451.134 million.

    From the N301.501 billion distributable statutory revenue, the Federal Government received N146.710 billion; State Governments, N74.413 billion; and Local Government Councils received N57.370 billion.

    A total of N23.008 billion was shared to relevant States as 13 per cent derivation revenue.

    For the month of June 2023, the gross revenue available from the Value Added Tax (VAT) was N293.411 billion, this was higher than theN270.197 billion available in the month of May 2023 by N23.214 billion.

    The Federal Government received N40.984 billion, the State Governments received N136.613 billion and the Local Government Councils received N95.629 billion from the N273.225 billion distributable Value Added Tax (VAT) revenue.

    The N11.436 billion Electronic Money Transfer Levy(EMTL) was shared as follows: the Federal Government received N1.715 billion, the State Governments received N5.718 billion and the Local Government Councils received N4.003 billion.

    From the N320.892 billion Exchange Difference revenue, the Federal Government received N156.155 billion while the State Governments received N79.204 billion.

    The Local Government Councils received N61.063billion and the sum of N24.470 billion was shared to the relevant States as 13 per cent mineral revenue.

    According to the communiqué, in the month of June2023, Companies Income Tax (CIT) recorded a tremendous increase.

    Import and Excise Duties, Value Added Tax (VAT), Oil and Gas Royalties increased significantly, while Petroleum Profit Tax (PPT) and Electronic Money Transfer Levy (EMTL) decreased considerably.