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Tag: NNPC

  • Senate threatens to halt budgets of 444 defaulting agencies

    Senate threatens to halt budgets of 444 defaulting agencies

    The Senate has threatened to halt work on the 2018 budgets of no fewer than 444 federal commissions, agencies, corporations and parastatals for failure to submit their account records to the Auditor General for the Federation over the years.

    The action of the agencies contravened Section 85 of the 1999 Constitution (as amended), which mandated such federal agencies to submit their audited reports to the Auditor General, for onward transmission to the National Assembly.

    Worried by the development, the Senate on Wednesday gave the affected agencies till the end of May 2018 to comply or have their 2018 budget proposals withdrawn.

    Chairman Senate Public Accounts Committee, Senator Matthew Urhoghide (PDP, Edo State), while presenting a report at plenary on Wednesday, pointed out that of the 491 federal agencies, only 47 have fully complied by submitting their audited reports for 2017.

    The agencies that have complied included: Assets Management Company to Nigeria (AMCON); Central Bank of Nigeria (CBN); Abuja Property Development Company; Citizenship and Leadership Training Centre; National Law Reform Commission; National Agricultural Seeds Council; National Open University; University of Abuja among others.

    In all, Urhoghide revealed that 444 agencies are yet to comply.

    Among the defaulting agencies, 85 had never submitted audit report since they were created. While others are in arrears for five to 17 years.

    The report listed some of the agencies yet to submit their reports since inception to include: Bank of Industry (BoI); Bank of Agriculture (BoA); Economic and Financial Crimes Commission (EFCC); FCT Internal Revenue Service; FCT Universal Basic Education Board; Agricultural Research Council of Nigeria; Abuja Infrastructural Investment Centre; National Automotive Council among others.

    The report also named parastatals that are yet to submit their audited accounts between six and 10 years to include the Debt Management Office (DMO); Nigeria National Petroleum Corporation (NNPC); National Insurance Commission; Financial Reporting Council; Bureau for Public Enterprises (BPE); and Federal Mortgage Bank of Nigeria.

    Others are Bureau for Public Procurement (BPP); National Health Insurance Scheme (NHIS); Nigerian Maritime Administration and Safety Agency (NIMASA); Independent National Electoral Commission (INEC) among others.

    The committee chairman said that many of the parastatals were not willing to submit their audited accounts without being compelled, adding that many of the parastatals do not take issues of accountability in public expenditure seriously.

    He accused the Auditor-General of placing less premium on high profile federal agencies with huge accounts like the NNPC, NPA, NIMASA, CBN, TETFUND, etc.

    “An agency like the EFCC misinterprets the reporting requirement in their enabling Acts to violate the Constitution,” he stated.

    Other recommendations by the committee urged the Office of the Auditor-General for the Federation to constantly update and reconcile with parastatals on their status of compliance.

    It also urged the Auditor General to liaise with the Bureau for Public Enterprises (BPE) and the Office of the Secretary to the Government of the Federation to clarify status of privatised and merged/scrapped Parastatals.

    It also recommended adequate budgetary allocations to the office of the Auditor-General to enhance performance.

    Read Also: Senate, Reps bicker over NFIU bill

  • Kebbi, FG partners to revive Argungun fishing festival

    Kebbi, FG partners to revive Argungun fishing festival

    Kebbi State Governor, Alhaji Abubakar Bagudu, yesterday said plans have reached advanced stage with the Federal Government to revive the popular Argungun fishing festival.

    The governor said, the fishing festival was earlier suspended in the state due to Boko Haram insurgency.

    Bagudu, who spoke during media briefing in Kebbi, revealed on going moves to seek supports from both private and public sector to boost the tourism sector and make the festival an international affair.

    “We always avoid the raining season and there are lots of infrastructure decay and  accommodation problem because of the suspension, so we want to upgrade them all. That’s what we are doing with the federal ministry of Information,” he said.

    The governor called for greater funding for the sector, especially through the Anchor Borrowers Programme ( ABP ) to increase rice production in the 36 states.

    According to him, the N54 billion disbursed for the ABP across the federation was insufficient, thus need for the federal government to consider upward review of the loan.

    Bagudu insisted that the N54 billion was very little compared to what’s alloted to develop other sectors such as banking as well as oil and gas sectors.

    “Let me use this medium to call for more greater lending to agriculture and better public support. For instance, NNPC indicated that fuel subsidy alone is about N180 billion. Yet, lending to agriculture to farmers across 36 states is just N54 billion,” he added.

    While calling for massive investments in Agriculture, he said, “countries that achieved food sufficiency spent decades supporting agriculture, subsidizing among other producer supports.”

    The Governor, who acknowledged water as major challenge, said rice farmers cultivated on 400, 000 hectares of land.

    He said cost of purchasing fuel increased to as high as N300 per litre, which according to him led the state government to partner with major fuel stations and the Kebbi State Assembly to subsidise the product.

  • N650bn debt: DAPPMAN calls off 14-day ultimatum

    N650bn debt: DAPPMAN calls off 14-day ultimatum

    The Depot and Petroleum Products Marketers Association of Nigeria ( DAPPMAN ) has called off its 14-day ultimatum earlier given to the Federal Government over N650 billion debt owed its members.

    The Executive Secretary of the Association, Mr Olufemi Adewole, called the 14-day ultimatum off in a statement in Lagos on Monday.

    On Feb. 20 DAPPMAN gave the Federal Government a 14-day ultimatum to settle a N650 billion debt owed its members or disengaged its workers.

    According to Adewole, following the 14-day ultimatum to commence staff disengagement given to government by DAPPMAN in the light of over N650 billion owed to petroleum marketers.

    “A series of constructive engagements and meetings were held with NNPC, Ministry of Labour, the Presidency and DAPPMAN/MOMAN.

    “Marketers have been reassured about the FGN’s commitment to make payment as evidenced by the request for approval for appropriation of same to the National Assembly.

    “It is our hope that this approval will be given promptly and these long overdue payments made subsequently,’’ he said.

    Adewole said that consequently, DAPPMAN/MOMAN hereby suspend the issued 14 days ultimatum and use this medium to plead with all our staff under the various umbrella unions.

    He urged NARTO, PENGASSAN, NUPENG/PTD to please bear with them whilst the approval for appropriation by the NASS is being deliberated on and processed.

    The statement expressed the belief that it would not exceed two weeks in view of the adverse implications of any delays.
    It, however, said that all marketers were to ensure there was no disruption in the supply and distribution of petrol nationwide.

    “We thank all Nigerians for their understanding and support in many forms as always,’’ the statement said.

    NAN

  • Oil workers suspend strike as FG promises payment N650b 

    Oil workers suspend strike as FG promises payment N650b 

    Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Major Oil Marketers Association of Nigeria (MOMAN) Monday suspended their 14 days strike notice to the Federal Government owing to the government’s assurance to pay the outstanding N650billion debts to the marketers.

    DAPPMAN Chairman​​​​​​​​ and Executive Secretary ​​​​​, Prince Dapo Abiodun, and Olufemi Adewole respectively made this disclosure in a statement.

    The statement reads in parts: “Consequently, DAPPMAN/MOMAN hereby suspend the issued 14 days ultimatum and use this medium to plead with all our staff under the various umbrella Unions: NARTO, PENGASSAN, NUPENG/PTD to please bear with us whilst this approval for appropriation by the NASS is being deliberated on and processed, which we believe will not exceed two (2) weeks in view of the adverse implications of any delays.

    All marketers are to ensure there is no disruption in the supply and distribution of PMS nationwide.

    “Following the 14 day ultimatum to commence staff disengagement given to the Federal Government (FGN) by Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) in the light of over N650Billion (Six Hundred and Fifty Billion Naira) owed by FGN to petroleum marketers, a series of constructive engagements and meetings were held with NNPC, Ministry of Labour, the Presidency and DAPPMAN/MOMAN.

    “Marketers have been reassured about the FGN’s commitment to make payment as evidenced by the request for approval for appropriation of same to the National Assembly.

    “It is our hope that this approval will be given promptly and these long overdue payments made subsequently.”

    Read Also: Oil workers injured as fire engulfs Consolidated Oil in Bayelsa

  • NNPC losing N774m daily on petrol sales, says GMD

    NNPC losing N774m daily on petrol sales, says GMD

    •PENGASSAN to Fed Govt: reimburse fuel subsidy to NNPC

    The Nigerian National Petroleum Corporation (NNPC) said yesterday it was losing N774 million daily on petrol sales.

    It raised the alarm over proliferation of fuel stations in border and coastal communities across the country.

    It insisted that the development has energised cross-border smuggling of petrol to neighbouring countries, making it difficult to sanitise fuel supply and distribution.

    The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a statement issued in Abuja yesterday, said the NNPC Managing Director, Dr. Maikanti Baru, spoke when he led a team on a visit to Nigerian Customs Service Comptroller-General Col. Hameed Ali (retd).

    Baru presented a pictorial chart portraying Nigeria in the middle selling pump price of petrol at N145, its neighbours: Ghana at N311, Togo (N308), Benin Republic (N292.8), Niger (367), Chad (326.35) and Cameroon at N400 per litre.

    “There has been a heightened consumption growth from less than 30 million litres per day in August 2017, to an average of over 500 million litres per day with a peak of 84.2 million litres on December 8, 2017,” he said.

    The NNPC GMD said a detailed study conducted by the corporation indicated strong correlation between the presence of the frontier stations and the activities of fuel smuggling syndicates.

    He said the activities of the smugglers had led to observed abnormal surge in the evacuation of petrol from less than 35 million litres per day to more than 60 million litres per day, a development he described as in sharp contrast with established national consumption pattern.

    Providing a detailed presentation of the findings, the NNPC GMD said 16 states, having among them 61 local government areas (LGAs) with border communities, account for 2,201 registered fuel stations.

    The fuel tank, he noted, had a combined capacity of 144,998,700 litres of petrol.

    Baru said eight states with coastal border communities spreading across 24 LGAs among the states account for 866 registered fuel outlets with combined petrol tank capacity of 73,443, 086 litres.

    A further breakdown of the finding, he added, shows that among the states with land border, three LGAs in Ogun State account for 633 fuel stations with combined petrol tankage of 40,485,000) litres. Nine LGAs in Borno State, he said, have 337 fuel outlets with combined petrol storage capacity of 21,114,480 litres. Lagos with one council as border community has 235 registered fuel stations with total petrol storage facility of 19,916,600 litres, Baru said.

    On the coastal front, the NNPC boss claimed that Lagos with six LGAs leads with 487 registered fuel stations with combined in-built storage capacity of 50, 239,560 litres.

    Baru added that Akwa Ibom with five LGAs has 134 registered retail outlets with capacity to store 8,322,986 litres and Ondo State with two LGAs has 110 fuel stations with capacity to store 3,871,320 litres.

    Welcoming the NNPC GMD and his team to the Customs Headquarters, Col. Ali said the service would work with the corporation to stem the tide of cross-border smuggling of petroleum products, noting that all hands must be on deck to ensure the country’s economic survival.

    The Customs boss thanked NNPC GMD for the elaborate data he provided on the fuel supply situation, noting that this would enable the service fashion out the appropriate architecture to combat the menace.

    He called on the authorities to tackle the issue of price differentials, which is the underlying motivation for smuggling activities.

    But the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to reimburse the NNPC for expenses the corporation incurred from payment of subsidy to the marketers.

    According to PENGASSAN National Public Relations Officer, Comrade Fortune Obi, at the end of its National Executive Council (NEC) meeting in Warri, Delta State, the association said NNPC has continued to shoulder the responsibility of providing products to close gaps created by the withdrawal of other marketers owing to non-payment of subsidy claims from 2015 to 2017.

    A communique signed by the PENGASSAN President, Comrade Francis Olabode Johnson and the General Secretary, Comrade Lumumba Okugbawa, stated that the extra burden absorbed by NNPC was depleting the corporation’s finances.

  • NNPC raises alarm over smuggling of fuel to boarder towns

    NNPC raises alarm over smuggling of fuel to boarder towns

    The Nigerian National Petroleum Corporation ( NNPC ) has raised the alarm over the proliferation of fuel stations in communities with international land and coastal borders across the country.

    It insisted that the development has energized unprecedented cross-border smuggling of petrol to neighboring countries, making it difficult to sanitize the fuel supply and distribution matrix in the country.

    The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu disclosed this in a statement issued in Abuja on Sunday.

    Leading a top Management team of the corporation on a visit to the Comptroller General of the Nigerian Customs Service, Col. Hameed Ali (Retd), the Group Managing Director of NNPC, Dr. Maikanti Baru, revealed that detailed study conducted by NNPC indicated strong correlation between the presence of the frontier stations and the activities of fuel smuggling syndicates.

    He said that the activities of the smugglers had led to recent observed abnormal surge in the evacuation of petrol from less than 35 million litres per day to more than 60 milion litres per day which is in sharp contrast with established national consumption pattern.

    Providing a detailed presentation of the findings, the NNPC GMD informed that 16 states, having amongst them 61 Local Government Areas with border communities, account for 2,201 registered fuel stations.

    The fuel tank, he noted, had a combined capacity of 144, 998, 700 (one hundred and forty four million, nine hundred and ninety eight thousand and seven hundred) litres of petrol.

    In the same vein, eight states with coastal border communities spread across 24 LGAs amongst the states account for 866 registered fuel outlets with combined petrol tank capacity of 73, 443, 086 (seventy three million, four hundred and forty three thousand and eighty six) litres.

    A further breakdown of the finding shows that among the states with land border, three LGA’s in Ogun State account for 633 fuel stations with combined petrol tankage of 40, 485,000 (Forty Million and Four Hundred and Eight Five thousand) litres while nine LGA’s in Borno State have 337 fuel outlets with combined petrol storage capacity of 21, 114, 480 (twenty one million, one hundred and fourteen thousand four hundred and eighty) litres. Lagos with one LG as border community has 235 registered fuel stations with total petrol storage facility of 19,916, 600 (Nineteen Million, Nine Hundred and Sixteen Thousand, Six Hundred) litres.

    On the coastal front, Lagos with six LGA’s leads with 487 registered fuel stations with combined in-built storage capacity of 50, 239,560 (Fifty Million, Two Hundred and Thirty Nine Thousand, Five Hundred and Sixty) litres. Akwa Ibom with five LGA’s has 134 registered retail outlets with capacity to store 8, 322, 986 (eight million, three hundred and twenty two thousand and nine hundred and eighty six) litres, while Ondo State with two LGA’s has 110 fuel stations with capacity to store 3,871,320 (three million eight hundred and seventy one thousand, three hundred & twenty) litres.

    Dr. Baru explained that because of the obvious differential in petrol price between Nigeria and other neighboring countries, it had become lucrative for the smugglers to use the frontier stations as a veritable conduit for the smuggling of products across the border, saying this had resulted in a thriving market for Nigerian petrol in all the neighouring countries of Niger Republic, Benin Republic, Cameroun, Chad and Togo and even Ghana which has no direct borders with Nigeria.

    “’NNPC is concerned that continued cross-border smuggling of petrol will deny Nigerians the benefit of the Federal Government’s benevolence of keeping a fix retail price of N145 per litre despite the increase in PMS open market price above N171 per litre,’’ he said.

    He noted that based on the heightened petrol consumption rate of 50 million litre per day, the corporation was incurring an under-recovery of N774 million every day.

    Welcoming the NNPC GMD and his team to the Customs Headquarters, Col. Ali said the Service would work with the corporation to stem the tide of cross-border smuggling of petroleum products, noting that all hands must be on deck to ensure the economic survival of the country. 

    The Customs boss thanked NNPC GMD for the elaborate data he provided on the fuel supply situation, noting that this would enable the service fashion out the appropriate architecture to combat the menace.

    He called on the authorities to tackle the issue of price differentials which is the underlying motivation for smuggling activities.

  • NNPC holds talks with firms on refineries’ overhaul

    NNPC holds talks with firms on refineries’ overhaul

    The Nigerian National Petroleum Corporation ( NNPC ) is in the final stages of talks with two consortiums that include top traders, energy majors and oil services companies to revamp the country’s dilapidated refineries, sources familiar with the matter said.

    The move is aimed at helping Nigeria, Africa’s biggest crude producer, save billions of dollars on fuel imports.

    Four banking and trading sources told Reuters the groups would be paid via the offtake of refined products rather than cash, putting the onus on them to revive the refineries and keep them running smoothly to ensure their investments earn a return.

    President Muhammadu Buhari pledged to fix the refineries when elected in 2015 but little progress has been made so far on the matter.

    Nigeria’s refineries operate far below their combined capacity of 445,000 barrels per day (bpd) due to years of neglect, as well as theft from pipelines and sabotage.

    This forces the country to import nearly all the fuel it consumes, a hefty burden because of price caps on gasoline.

    The government said it spent $5.8 billion on imports since late 2017.

    Private firms largely stopped importing gasoline after the government scrapped subsidy payments to help them sell at the capped price, leaving NNPC to import 90 percent or more of Nigeria’s needs.

    The sources said the first group comprised the world’s largest oil trader, Vitol, with Italy’s Saipem, United States’ firm General Electric and Nigerian traders Sahara Group and MRS Oil Nigeria Plc and would refurbish Warri refinery in Delta State and the refinery Kaduna.

    A second consortium included global commodities trader Trafigura, Italian oil major Eni, Spanish refiner Cepsa and Nigeria’s Oando.

     

  • How to end fuel scarcity – IPMAN

    How to end fuel scarcity – IPMAN

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has recommended massive importation and deregulation of the downstream sector of the oil and gas industry to end the current fuel scarcity in the country.

    The association also advised the Nigerian National Petroleum Corporation (NNPC) to disengage itself from the business of retailing.

    The Western Zonal Chairman of IPMAN, Debo Ahmed, told journalists in Ilorin, Kwara State, that “NNPC should leave retailing to marketers and engage in proper regulation.

    Ahmed said the current fuel scarcity had led to job losses and closing of shops by many IPMAN members.

    He listed some of the reasons why the scarcity would persist, noting that NNPC has no capacity to meet the demand of the country’s petroleum requirements as sole importer, distributor, and retailer.

    He said: “That is a very dangerous monopoly destroying the economy of the country. The little quantity it imports is not distributed justifiably. NNPC mega stations with 3.5 percent market share are allocated 50 percent of available products in all the functioning depots in the country.

    “IPMAN with 80 percent of the market share is allocated 30 percent of the share of total available products.

    “Major marketers with 1.6 percent market share receive 20 percent of available products as allocation. With this distribution pattern NNPC is strangulating IPMAN members because a lot of marketers have had the gates of their stations closed up.

    “Volumes of most of the imported PMS are given to the depot owners under the PFI system to sell to the independent marketers at a controlled price of N133.28 per liter but the private depot owners will sell at N162 above the regulated price.

    “The government is not doing enough about those depot owners (DAPPMA) who are flagrantly abusing the system only for Department of Petroleum Resources (DPR) to descend on independent marketers by closing their stations.

    “Fuel scarcity can only be abated if NNPC can import massively and distribute justifiably with IPMAN, major marketers and NNPC having their usual allocations of 40 percent, 30 percent and 30 percent respectively.”

     

  • Reps stop NNPC from spending $1.8b on refineries

    Reps stop NNPC from spending $1.8b on refineries

    A House of Representatives ad hoc committee has asked the Nigerian National Petroleum Corporation (NNPC) to withhold its bid to spend $1.8 billion on the nation’s refineries.

    Last year, the NNPC proposed a fresh bid to spend the money on the turn-around maintenance (TAM) of the three functional refineries in the country.

    The House had subsequently set up the adhoc committee to carry out a comprehensive investigation of the state of the refineries and their maintenance.

    Addressing reporters yesterday,  the committee chairman, Garba Muhammad, said the lawmakers have asked the NNPC to withhold the planned spending for the time being.

    He said: “The committee has communicated to Ibe Kachikwu, minister of state for petroleum resources, and Maikanti Baru, group managing director of NNPC, requesting them to stay action pending the outcome of the committee’s investigation.

    “We also want to seek full cooperation of the stakeholders and the general public in the course of the full exercise.”

  • Charly Boy leads protest to NNPC

    Charly Boy leads protest to NNPC

    Notable entertainer, Charles Oputa, a.k.a Charly Boy, on Wednesday led the ‘Ourmumudondo’ group, on a peaceful protest to the headquarters of the Nigerian National Petroleum Corporation (NNPC) over lingering fuel scarcity across the country.

    The News Agency of Nigeria (NAN) reports that the group said the protest was necessary for the NNPC and other stakeholders in the petroleum sector to know that Nigerians were tired of the fuel predicament.

    He said:  ”For over three months, Nigerians have endured agonizing fuel scarcity crisis, which has caused a hike in the prices of commodities, cost of transportation and wastage of man-hours spent on queues daily at petrol stations.

    “The lingering fuel scarcity has now brought untold hardship on the ordinary Nigerian people who may not be able to hold those in charge responsible.

    “We at the OurMumuDonDo Movement have decided to ensure that the President, the NNPC and other stakeholders in the oil sector are compelled to find a lasting solution to this current crisis.

    “Let them do something urgently to abate the sufferings of Nigerians, not just in Abuja alone, but across the country,” he said.

    NAN reports that leaders of some other Civil Society Groups also joined the Ourmumudondo peaceful protest to the NNPC headquarters.

    Mr. Ariyo Dare-Atoye of the Coalition in Defence of Nigerian Democracy, said Nigerians across different states were buying fuel at exorbitant prices, far above the official pump price of N145 per litre.

    “It is unacceptable that government and its agents would to `normalise’ the scarcity, while Nigerians are buying fuel at cut-throat prices in different states.

    “It is the duty of leaders to take responsibility and serve the interest of the people, no matter what it takes, and that is what we are demanding from the NNPC and leaders at all levels,” he said.

    Also, Mr Deji Adeyanju of the Concerned Nigerians urged the NNPC to apply inclusive approach in addressing the fuel challenge.

    “The Federal Republic of Nigeria is not limited to Abuja, as millions of citizens are still struggling to get fuel at exorbitant prices in different parts of the country.

    “If the situation appeared insurmountable, then the NNPC should convene stakeholders meeting for ideas on how to collectively stop this lingering challenge facing Nigerians, “he said.

    The group therefore handed a letter containing t its grievances and demands, addressed to the Group Managing Director of the NNPC, Mr. Maikanti Baru.

    Mr Ndu Ughamadu, Head of Group Public Affairs Division of the Corporation, who received the letter on behalf of the GMD, commended the group for its genuine concern towards the welfare of Nigerians.

    He therefore assured the group that their demands would be looked into accordingly, and added that the Corporation was doing everything possible within its reach to ensure that fuel was always available for Nigerians.