The Nation Newspaper

Tag: NNPC Ltd

  • Government should support media with tax Incentives, relief on Import duties – Soneye

    Government should support media with tax Incentives, relief on Import duties – Soneye

    Former Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Mr. Femi Soneye, has called on the Federal Government to support the media with targeted incentives, including tax reliefs and import duty waivers on essential media tools.

    Soneye made the appeal in Abuja on Tuesday after receiving the NUJ FCT Excellence in Corporate Communications Award, conferred on him by the Nigerian Union of Journalists (NUJ), FCT Council.

    The NUJ leadership, led by Chairperson Grace Ike, alongside the Deputy Chair, Secretary-General, and other executives, described Soneye as a consummate professional who has distinguished himself with tact and excellence in the communications field.

    Soneye noted that while the Nigerian media remains one of the most vibrant in Africa, it continues to grapple with systemic challenges that weaken its effectiveness.

    “The Nigerian media remains one of the most vibrant in Africa, but it also faces systemic challenges, financial, political, legal, and technological that weaken its effectiveness. The government can play a supportive role by granting tax incentives or relief on import duties for newsprint, broadcast equipment, and digital infrastructure,” he said.

    Read Also: Former NNPCL spokesperson Soneye seeks tax incentives for media

    He also urged the Federal Government to establish an independent media development fund to support investigative journalism, community radio, and newsroom innovation, drawing parallels with models in South Africa, the United States, and Canada.

    The award underscores Soneye’s long-standing contributions to journalism and corporate communications, as well as his advocacy for a stronger, independent, and sustainable Nigerian media.

  • NNPC Ltd/First E&P JV achieve 96% reduction in routine gas flaring

    NNPC Ltd/First E&P JV achieve 96% reduction in routine gas flaring

    In a major step toward supporting Nigeria’s climate commitments under the Paris Agreement, the NNPC Ltd and First Exploration & Petroleum Development Company Limited (First E&P) Joint Venture (JV) has successfully reduced routine flaring of associated gas (AG) by 96% at the Anyala (OML 83) and Madu (OML 85) fields.

    This milestone was achieved through an AG reinjection strategy that stores excess gas in an underground reservoir at the Madu field, offshore Bayelsa State, instead of flaring it.

    Announcing the achievement in a statement on Thursday, NNPCL’s Chief Corporate Communications Officer highlighted that the initiative significantly reduces environmental impact while aligning with Nigeria’s Nationally Determined Contributions (NDCs) to cut greenhouse gas emissions by 20% unconditionally and 47% conditionally.

    The reduction in AG flaring aligns with the regulatory framework set forth by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), underscoring the 

    JV’s compliance with national environmental standards and global best practices. 

    Commenting on this achievement, the Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, stated: “This achievement underscores our commitment to leveraging resources responsibly and optimising production to meet energy needs and sustainability goals. It reflects our commitment to aligning our operations with global standards and environmental best practices.”

    Read Also:  NNPC Ltd/TotalEnergies JV begins $550m Ubeta gas project

    Similarly, Ademola Adeyemi-Bero, MD/CEO of FIRST E&P, remarked: “This milestone reflects our unwavering commitment to environmental sustainability and responsible energy production. 

    By substantially reducing our carbon footprint, we are contributing to a sustainable energy future that benefits both the environment and the communities we serve.” 

    Building on this success, the JV remains focused on commercializing the stored gas and other stranded gas resources within the Niger Delta, reinforcing its dedication to environmental stewardship and the advancement of sustainable energy solutions.

  • NNPC Ltd and challenges in the oil sector: Banire misconceives the facts, promotes biased views

    NNPC Ltd and challenges in the oil sector: Banire misconceives the facts, promotes biased views

    By Olufemi Soneye

    In the face of the challenges in the oil sector, particularly the current tightness in the supply of petrol, it has become fashionable to blame the national oil company, the Nigerian National Petroleum Company Ltd (NNPC Ltd), for everything. Last week, it was Prof. Pat Utomi who railed and fumed at the NNPC Ltd calling it one of the most opaque and unreliable companies in the world. Before then, The Punch had published an editorial in which it described the NNPC Ltd as a danger to Nigeria. The latest of these vitriolic attacks is by Dr. Muiz Banire, a Senior Advocate of Nigeria (SAN), and former Commissioner of Transport and Environment, Lagos State, who contended in his column in The Sun that NNPC Ltd is the black hole of Nigeria.

    Considering all that is going on in the petroleum sector, it would appear justifiable to call out the NNPC Ltd as some people have been doing in recent times. But most of the diatribes have been based on sentiments that are not rooted in facts. Railing at the NNPC Ltd without a thorough understanding of the issues that threw up the current challenges in the oil sector, as most of the commentators have been doing, will yield no good for the country. At this critical intersection, the task for all well-meaning Nigerians should be how to find lasting solutions to the mischiefs in the oil sector and not to look for scapegoats, as Dr. Banire has done.

    According to Banire, Nigeria has been experiencing fuel scarcity since 1973 on the back of fuel subsidy and the NNPC Ltd is responsible for it. The assertion that the NNPC is responsible for this state of affairs is moot. The policy of fuel subsidy is not the preserve of the NNPC. Various administrations over the years have thought it wise to subsidize the cost of petroleum products for citizens. They came up with different methods of doing that. The role of NNPC Ltd has been to implement the policy as decided by government. At a point when the various administrations felt that the fuel subsidy policy had become a burden that should be done away with, they made it known. NNPC Ltd, as the national oil company, implemented it. This was the case in 2012 when the nation went up in protest against the decision of government to remove fuel subsidy. The same scenario repeated itself in 2019 when the then administration came up with the policy to remove fuel subsidy. NNPC Ltd is neither responsible for the policy of fuel subsidy or its removal.

    It is very unfortunate that Dr Banire would descend to the level of castigating the NNPC Ltd for the fuel subsidy debacle that has plagued Nigeria and on the basis of that label the Company that has over the years patriotically borne the brunt of the fuel subsidy policy as a black hole. His analysis fails to take into consideration the huge challenges of products smuggling, pipeline vandalism, and crude oil theft that the company contends with daily, and in spite of which it manages to keep the nation going with crude oil production and fuel supply.

    Read Also: Malala Fund, Hamzat Lawal, Other Partners Urge Nigerian Government to Protect VAPP Act

    Barely three months after the Federal Government announced the removal of fuel subsidy, it became difficult for both major and independent petroleum products marketers to import petrol because of the foreign exchange policy. They could not source forex to continue to bring in petrol. Since then, NNPC Ltd has been importing the product and selling at almost half price in keeping with the provisions of the Petroleum Industry Act (PIA) which designates it as the fuel supplier of last resort. Yes, there have been supply hiccups here and there because of the financial constraints imposed by the transaction. Just imagine the hardship the nation would have suffered if NNPC Ltd was not there to play the role of supplier of last resort! NNPC Ltd is the reason Nigerians continue to enjoy lower pump price for petrol than they would ordinarily pay for the product. How then does such a company become a black hole?

    For Banire, NNPC Ltd is responsible for everything that is wrong in the oil sector. He even blames smuggling and the unauthorized sale of petroleum products to street urchins who in turn trade it in the black market in jerrycans on the NNPC Ltd. But does he have evidence that the unpatriotic marketers who divert petroleum products meant for local consumption to neighbouring countries are staff members or representatives of the NNPC Ltd? Does he have any shred of evidence that the boys who sell fuel in the black market in jerrycans source their products from NNPC Retail Ltd.’s stations? The least one would expect from a lawyer of Banire’s standing is a fact-based and not speculative commentary.

    The NNPC Ltd has turned a corner since 2018 when it began to prepare for the enactment of the Petroleum Industry Act, which was eventually passed into law in 2021. Apart from deepening its commitment to accountability and transparency by regularly publishing its audited annual financial statements, it has become a profitable company with undisputable growth trajectory. It recorded an unprecedented N3.29 trillion profit in its recently released 2023 audited financial report. But this fact is conveniently lost on Dr. Banire who insists that he has not seen any difference between NNPC as corporation and the commercially focused NNPC Ltd that was incorporated in 2021. Fortunately, it does not take Banire to see or believe that NNPC Ltd, as presently constituted, has broken away from its debilitating past for it to be true. He is at home with the legal maxim: “Res Ipsa Loquitur”, meaning the facts speak for themselves.

    While one cannot dissuade people like Dr. Banire from criticizing the NNPC Ltd, they must refrain from standing facts on their heads all because they want to be populist or be in the good books of the public. Besides, the Banires of this world should also not be intentionally mischievous in their assertion that the NNPC Limited is exercising an overbearing influence on the regulators.  One expects that given the level of their educational accomplishments, they should have the capacity to research very well into the subject matters of their editorial interventions so that they do not argue, assert and progress in error(s). In the corollary, it is either Banire is mischievous or ignorant about the assertion he made in his write-up that the NNPC influences the NUPRC and the NMDPRA who are the two independent regulators.  If he lacks a clear knowledge  of the workings of the sector, he should be humble enough to seek clarifications so he could be well informed.  NNPC Limited is an operator-with a number of refineries under its purview.  The Port Harcourt refinery will soon take off. As a matter of fact, the refineries under the NNPC are operators and are therefore subject to the regulatory framework and regulations set out by the NMDPRA.  The operator(s) cannot, therefore, exercise overbearing influence on the regulators. This is commonsensically impossible. Pure and simple.

    •Soneye, is the Chief Corporate Communications Officer of the NNPC Ltd

  • Record-breaking N246.8trn asset shows NNPC Ltd on path of excellence

    Record-breaking N246.8trn asset shows NNPC Ltd on path of excellence

    By Ukpe Philip

    Amid low investment arising from the onslaught in energy transition, the management of the Nigerian National Petroleum Company Ltd is sharply transforming the firm into a super-power with a record-breaking rise in assets by 322 per cent to N246.8tn.

    The NNPCL silenced critics when it released its 2023 Audited Financial Accounts and declared a record pre-tax profit of N5.98tn and a net profit of N3.29tn. The state-owned oil firm also paid a tax valued at N2.69tn and declared a dividend of N2.1tn.

    Against all odds, the NNPC Ltd grew total assets by 322 per cent from N58.48tn in 2022 to N246.8tn by 2023, a feat major state-owned oil companies could not achieve in 2023.

    Last year, Saudi Aramco declared a 15.4 per cent rise in its assets from $576bn in 2022 to $664.7bn in 2023, which is far below the percentage growth recorded by the NNPC Ltd year-on-year.

    Aramco also saw a 24.7 percent decline in profit as net income dropped from $161.07bn in 2022 to $121.25bn in 2023.

    “The decrease mainly reflects the impact of lower crude oil prices and lower volumes sold, and weakening refining and chemicals margins,” Aramco said.

    Meanwhile, another oil giant, PetroChina Co. Ltd. saw a dip in its assets from $392.6bn in 2022 to $384.6bn in 2023 due to economic headwinds.

    However, the management of the NNPC Ltd led by the Group Chief Executive Officer, Mele Kyari, scaled through the challenges experienced by oil and gas players and was able to deliver value for Nigerians in terms of profits and asset growth. 

    The NNPCL also faced domestic obstacles like oil theft and naira devaluation, which has significantly impacted the dollar valuation of most Nigerian firms.

    NNPC Ltd’s resilience to domestic and global shocks has crowned it to emerge as one of the superpowers in the global oil and gas industry. Some experts believe the NNPCL has become the ‘Jewel of the oil industry.’’

    A broader look at NNPC Ltd’s books showed that the company’s non-current assets rose by 101 per cent from N36.9tn in 2022 to N74.17tn in 2023, showing a stronger ability to undertake long-term investments that contribute to its operational capabilities and future growth.

    From N9.29tn in 2022, shareholder’s equity surged by 206.9 per cent to a surprise N28bn by the end of 2023. This underpins the commitment to change the narrative despite the pressure in the global oil and gas industry.

    The NNPC is owned by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in equal portions on behalf of the Federal Government. 

    The Chief Executive Officer of Cowry Assets Management Ltd, Jonhson Chukwu, said the performance was mind-blowing. 

    “I was quite impressed. Do you know why? Everything we’ve heard in the recent past is all negatives about the general industry, what is going on and that. And then today we’re looking at how NNPC had turned the corner,” Chukwu said.

    The Cowry Assets boss explained that the NNPCL could record the performance because the management is applying the standards applicable to private sector enterprises.

    Chukwu said, “They would have instilled some level of performance in different arms of NNPC Ltd. They have also escalated their level of reporting, and now do you have a detailed financial statement from an NNPC. For years, we did not have a detailed financial statement from an NNPC.

    “So, I think NNPC is an incorporated company, like what we have in NNPC Limited, unlike what you have in Nigerian National Petroleum Corporation, when it was a corporation, and then there was no level of accountability.

    “What has been brought to bear are the standards that are applicable to private sector enterprises, in terms of performance-based, board of oversight functions, budgeting, and then appraisals that actually measure performance against targets.

    “And I think those things have been institutionalized and which is why we are seeing consistency in terms of their profitability and we’re seeing a steady growth in their profitability over these past few years since they turned the corner. I believe those are the factors that were brought to the bear that made the company turn the corner.”

    The Chief Economist and Chief Executive Officer of Analytics’ Data Services Resources Ltd, Dr. Afolabi Emmanuel Olowookere said NNPC Ltd’s performance showed that the company has huge potential to rank among the best state-owned corporations.

    Olowookere said, “It is good news that NNPC has not only been able to increase revenue significantly but very importantly, the profits it has been able to generate in the last three years.

    “One major thing it has also shown is that there is potential for increase. That means if it is possible for NNPC to be profitable in the last three years, it can be profitable, and the country can continue to benefit from that, especially the post-Petroleum Industry Act.”

    The expert said NNPCL would have achieved better growth in revenue, profit, and assets base if “there was no oil theft.”

    Olowookere said, “In the case of NNPCL, oil theft is there, vandalism and order factors are there. When you look at this, NNPC has done far better than it used to in the last five years but could have done better. Imagine we were able to address oil theft and vandalism. We would have had better results.”

    Ukpe writes from Abuja.