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  • NNPC made N217m profit under my watch, says Kachikwu

    NNPC made N217m profit under my watch, says Kachikwu

    Former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Ibe-Kachikwu, said in his handover remarks yesterday that the corporation, which he said had never made profit before, made N217 million profit under his watch.

    “I am happy to announce that in our May results, for the first time in the history of this company, the NNPC made a profit of N217 million,” he told the gathering at the NNPC Towers while handing over to the new GMD, Dr. Maikanti Kacalla Baru, in Abuja.  .

    On the production volume that has reduced owing to the vandalisation of oil pipelines by the Niger Delta Avengers, Kachikwu, who remains the chairman of NNPC’s board of directors and Minister of State for Petroleum, said, “We are doing 1.9 million barrels.”

    According to him, the Federal Government had been working on bringing an end to the crisis in the Niger Delta.

    He added that he was still studying what created the gap in order to further engage the people and bridge the gaps.

    He said: “We are working on it and I need to meet with Mr. President for I have just returned and obviously there is a lot more engagement that is required.

    “There are gaps that seem to have developed and I need to understand what issues warranted that.

    “But we will work towards closing those gaps.”

    Asked when Forcados would come back on stream, the minister said by the end of this month.

    “By the end of July,” he said.

    Kachikwu expressed joy for holding four positions at the same time, stressing that surprisingly, for 11 months, he managed the sector as the GMD of NNPC, Minister of State for Petroleum, President of OPEC and President of APPA before his recent appointment as board chairman.

    The minister said: “It is surprising that in the 11 months I’ve managed to serve as GMD of NNPC, as Minister of State for Petroleum Resources, as OPEC President, as the President of APPA and I’ve just been appointed the Chairman of NNPC board; all in 11 months.

    “There are not many people in the world who would have those opportunities within that time frame or be given that opportunity by a leader. So we all have the President to be very thankful to.”

    Kachikwu however promised to give full support to the new GMD in order to ensure that he succeeds.

    He said that there had been very massive restructuring at the NNPC, which had been able to set out various parameters of the business to be profit-focused entities on their own.

    On reducing cost, the minister said: “Working with (the Ministry of) Finance, we have been able to cut operational cost close to about 30 per cent, which was one of the first things that we did and it saved a lot of money for the group.

    “We undertook deregulation at the time nobody thought it was possible. And if there’s anything we leave for this industry, it must be the legacy of that deregulation.

    “Today our consumption of fuel has gone down by 30 per cent. Wwe have no queues in the filling stations.

    “We have one and a half months of self sufficiency. We have strategic reserves that we are putting together and we have a funding scheme to enable the downstream to be able to adequately fund itself.

    “We have succeeded in removing subsidy and saving over N1.4tn for this country on a yearly basis.

    “We have reduced upstream contracting period from the average of between two and a half years to between six and nine months, and we have started a massive commercialisation of every aspect of our business.

    “Refineries have challenges but we have been able to take them to a point where the three refineries are working for the first time in about 10 years, but still not at the capacity that we want.

    “We need to find a structure, and we have started, in which private funds will go into the refineries and we will be able to rebuild our refineries to 90 or 100 per cent capacity.

    “I’ve already made a commitment that by 2018, 60 per cent of refined products importation will stop, and by 2019, we must become a net exporter of refined petroleum products.”

  • Kachikwu, NNPC and need for continuity

    Proponents of restructuring in the Nigerian National Petroleum Corporation, NNPC, to divest Ibe Kachikwu of his double-barreled position of Minister of State for Petroleum and Group Managing Director (GMD) of the corporation have, at last, had their way. Last Monday, Special Adviser to the President on Media and Publicity, Femi Adesina announced that Maikanti Kacalla Baru had been appointed the new GMD of the corporation with a board headed by Kachikwu who retained his position as Minister of State for Petroleum. May be, that is just as well so that peace will reign within the establishment.

    For far too long, speculation about Kachikwu’s departure from the GMD’s job had ruled the media space with irritating frequency triggering, at times, frantic rebuttals from the agency. But as it goes in the popular Nigerian parlance, there is never a smoke without a fire. Kachikwu’s exit was a secret on everyone’s lips except the man who had the power to make it happen. But many had thought that Buhari would not want to tamper with an arrangement that is working optimally, that the timing of such an action, when it became imperative would allow for the deepening of the winning strategy that is being implemented.

    Many reasons had been advanced to justify it: that one man should not hold the two most powerful positions in the oil industry, conveniently ignoring the fact that the ultimate position was held by President Buhari who, had he not appropriated the position, still would have overriding powers, including that of removal, over Kachikwu. Or any other minister for that matter. The overwhelming feeling is that the President has capitulated to geopolitical pressures. Worse still, allusions have been made to the exclusion of the south-east zone in the NNPC board as further evidence that the Igbo of the South-east have no place in a Nigeria ruled by Buhari.

    This has become a recurring feature of PMB’s appointments since he came to power and this has also become increasingly worrying. May be we should remind our President that Ibe Kachikwu comes from the South-south geopolitical zone. While we ruminate over the political implications of the President’s action, good conscience will demand that we first consider how it affects the dramatis personae in this unfolding saga, Kachikwu himself. Does the President’s action amount to a vote of no confidence on the minister? Or has he discharged the initial mandate that warranted his occupying the two strategic positions at the same time? If Kachikwu were to leave the cabinet today, how will he be remembered? What will be his legacy?

    To answer these questions will require looking at his mandate even against the background of his self-professed benchmarks that revolved around the following fundamental issues: professional restructuring of the NNPC anchored on best practices spearheaded by knowledge based leadership, reversing the loses in the NNPC, enthroning transparency and accountability, steadying fuel supply, restoring confidence in industry stakeholders who were suspicious of the motives of Buhari and restoring stability to the Niger Delta through a win-win proposition.

    Nearly three quarters of a year later, can we attempt an objective scorecard? What will be the highpoints of his performance? Was the NNPC under the minister able to deliver on the key benchmarks? Is it not possible that the President, satisfied that the expectations had been met, therefore decided on a further restructuring to achieve his best intentions? If so, what are those best intentions? Are they best for the country or just for narrow interests, going by the composition of the board which suggests pacification of known political godfathers and gladiators in the party in power?

    However one evaluates the situation, judged by the ministry’s accomplishments within so short a time, it can be argued, without any fear of contradiction, that Kachikwu has been one shinning ministerial performance in a rather opaque canvass of questionable administration deliverables. Under him, accountability and transparency have been restored to the operations of the NNPC. The publication of monthly accounts may not mean much to the ordinary Nigerian who is more concerned with food on his table, electricity and water at home, employment for his or her three graduate children and a sound sleep at night and a trip from Abuja to Lokoja without the fear of being kidnapped on the way. However, to oil industry stakeholders, investors and entrepreneurs, it provides a solid mirror for understanding what goes on behind those tightly guarded dollar-incubating towers, analyzing the Nigerian economy and taking investment decisions.

    Of course, not even Kachikwu’s detractors will deny that by his handling of the fuel crisis, he established himself as a solid professional, a consummate bargainer and a principled patriot not deterred by the prospect of losing his job in so far as the greater national good was achieved. Talking about patriotism, his willingness to negotiate with the militants implied that not only was his job on the line, even his life could be sacrificed in the process. In spite of the predictable dangers including intra-party and inter-governmental distractions, he has forged ahead with the zeal of a patriot and the consuming passion of a martyr. Is this new arrangement a reward for such brilliance and exceptional dedication and performance? Some doubt it.

    Coming immediately after the very successful NNPC road show in Beijing China,where investment MOUs totally over US$50 billion were signed to fast-track the administration’s plans for transforming the oil industry, it will amount to a contradiction to interpret the President’s action as a vote of no confidence on Kachikwu. On the other hand, it may well be that in the President’s calculation,Kachikwu has delivered on the target set for him. I am more inclined to go with the latter view because I sincerely believe that the President cannot reward such performance with a seeming demotion. That being the case, I think there are, at least, three fundamental issues that should be addressed by the President. The first is the timing of the changes especially against the background of the need to have some consistency in driving already initiated platforms to their logical conclusion. Related to the first, we would be naïve to ignore the inevitable power relations that would disrupt the existing order. How this is managed would determine the sustainability of present achievements including relations with external stakeholders. Thirdly, it appears that the President is not bothered by the perception challenges that go with each of his every action as this latest step has oiled the arsenal of those who insist that his government has been grossly unfair to the South-east zone. This point has been made by several unbiased commentators that ignoring the South-east in most of the President’s appointment, except for the ministerial positions mandated by the constitution leaves sour taste in the mouth.

    Let me conclude on the following notes. One: the change has been made; Baru is an industry insider and a member of Kachikwu’s team. Therefore, he can be expected to deliver on the settled goals of the administration. Second, while Kachikwu’s position as chairman of the NNPC Board guarantees that he retains substantial oversight over the activities of the company, the fact that he is a junior minister can circumscribe his authority and render him vulnerable to humiliation. The way out: unless President Buhari no longer has confidence in him which is doubtful, the most strategic thing to do would be to confirm him as substantive oil minister without delay. That not only confers him with the moral authority to prosecute the existing reform template but the confidence of the Niger Delta militants who, at the moment, could see this thinly veiled demotion as a repudiation of Kachikwu’s promotion of dialogue with the Niger Delta militants.

     

    • OhuabunwaOFR, an industrialist writes from Lagos.
  • NNPC after Kachikwu: Will Baru sustain the tempo?

    NNPC after Kachikwu: Will Baru sustain the tempo?

    The dissolution of the Board of Directors of the Nigerian National Petroleum Corporation (NNPC) and the appointment of a new group managing director for the Corporation is the statutory right of the Presidency? But what will the future of the national oil firm be with the exit of Dr. Ibe Kachikwu, who has initiated far-reaching reforms to transform the state oil firm? EMEKA UGWUANYI examines the situation.

    New board, old challenges

    Stakeholders’ concerns are whether members of the newly constituted board are tested and proven Nigerians who will show love, care and commit to the growth of the Corporation to enable it add the expected value to the economy?
    Although Kachikwu is still the Chairman of the Board, he may not have powers to execute policies and decisions. The law establishing the NNPC stipulates that the Minister of Petroleum Resources shall be chairman of the board and the constituents of board shall reflect the geographical diversity of the country. As the Minister of State for Petroleum Resources and Board Chairman, he would only make suggestions at the meeting. Decisions reached at the NNPC’s board meetings are subject to ratifications by President Muhammadu Buhari, who doubles as the substantive Minister of Petroleum Resources.
    The Group Managing Director, Baru is a thoroughbred professional who grew through the ranks in the petroleum industry and the NNPC. However, considering the numerous unresolved issues in the industry such as full deregulation of the downstream sector, access to foreign exchange by oil marketers for fuel importation, huge cash call debts, attacks on NNPC Joint Venture facilities, among others, will he have the will power to tackle them?
    Will he continue with the monthly public presentation of the Corporation’s operations, income, expenditures, among others as started by Kachikwu, which industry players praised? Also Kachikwu’s administration promised to ensure that from the end of this year, NNPC will be producing its full year annual financial reports, operate as an independent company, have the ability to borrow from banks to finance its businesses, will Baru continue with all these?
    To resolve the huge cash calls owed by NNPC to JV operations, Kachikwu mulled zero cash call payment by NNPC from end of this year, which is planned to be achieved through making each of the Joint venture partnership an Incorporated Joint Venture (IJV), the engagement of international oil companies in the country to support their downstream arms with forex to be able to import fuel, these are some of the challenges Baru will face.
    The board acts as a bridge between the NNPC and the presidency. By the Act establishing the corporation, the board should be made up of nine members, consisting of a representative from each of the six geopolitical zones, the group managing director of the NNPC and the permanent secretary of the Ministry of Finance. The ninth member and chairman of board must be the Petroleum Resources minister.
    Where the President is the substantive minister as it was the case under the administration of former President Olusegun Obasanjo and President Buhari, the president either nominates an alternate chairman, or relates directly with the NNPC’s group managing director for regular updates.
    At the end of every meeting between, the board chair meets with the president to brief him and for the ratification of any decision taken. But, not every Nigerians knows that most decisions and actions taken by NNPC are ratified by the President. The presidential approval also extends to employment.
    For instance, employment of senior-cadre officers from the rank of a general manager and above must be approved by the President. But, where a management staff, apart from the GMD, is a nominee from a geo-political zone, the person stands for the two positions.
    For Dr. Austin Nweze, a lecturer at the Pan Atlantic University, the board members are not the ones doing the job.
    “I don’t think the constitution of the board will change much except the incoming board members have the will power. NNPC’s problem goes beyond board. The corporation needs re-engineering in the sense that it should get things done right, block the loopholes through which funds are siphoned. Constituting the board is one thing, bringing in credible people is another thing because many people are on the wings waiting to grab their own ‘national cake.’
    “The calibre of members of the incoming board will be critical to whatever the NNPC will become in future. To me, the appointment of new board members shouldn’t be based on political patronage. But, if political patronage is inevitable, the membership should be a mix of technocrats who understand the oil industry and politicians.
    “The management team should work hard to entrench good governance in the Corporation. Let the board strengthen and reinforce the management, even it entails bringing on board those who will create the change. The NNPC needs to be repositioned to be able to take risks as other national oil companies. It should invest in the country and outside the shores of the land. It shouldn’t remain as a government tool, or be compelled to operate under the stranglehold of government.
    “It’s the government that is holding the NNPC down from taking such risks. The corporation should be encouraged to invest in Africa and other countries of the world and go beyond lifting and selling crude.”
    An analyst and Lead Director, Centre for Social Justice (CSJ), Eze Onyepkere said: “We expect transparency in the NNPC because there is so much money there but with little supervision. The NNPC structure doesn’t allow for some level of transparency.

    GRAPPLING with dwindling oil prices at the international market and festering attacks on pipeline facilities in the Niger Delta by militants, President Muhammadu Buhari on Monday made wide-ranging changes to the leadership of the Nigerian National Petroleum Corporation (NNPC).

    He relieved Dr. Emmanuel Ibe Kachikwu as the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) after 11 months in office. Kachikwu, who was named as NNPC chief executive on August 5, last year, yielded the position to Dr Maikanti Kacalla Baru on Monday. His removal by the President was in line with the provision in Section 1(2) of the Nigerian National Petroleum Corporation Act of 1997, as amended.

    No doubt, Kackikwu’s nearly one year as the helmsman was eventful. To some workers on the NNPC payroll, t was a period of uncertainty and an era of one-man show. Not a few saw him as a man on a strange mission and who did not care about due process and team work. But to the oil and gas operators, he was a God-sent messiah to redeem the petroleum industry.

    A NNPC worker told The Nation on the condition of anonymity that members of staff were happy over Kachikwu’s removal.

    Said the official: “He was on a strange mission; his reorganisation agenda was not coordinated. He does one thing today and changes it tomorrow. He didn’t apply the rules. He disregarded the management of the Corporation in decision making, brought in new people to head high positions leaving top NNPC staff that grew through the career path.

    “His removal will cut some excesses, especially running the NNPC as a one-man management show. He doesn’t carry along the management.

    “With the coming on board of Baru and the new board members, all sides of an issue would be looked at, due process properly taken before decisions are taken.

    “With Baru, we think normalcy has returned to the Corporation, he will calm the situation to ensure a level certainty in the company and assurance for the staff.

    “You ought to know that some of the reforms he carried out and some he intended to carry are not workable and many of the staff didn’t believe in them.”

    Expectations were high among those who spoke to The Nation that the new helmsman would reverse some of the restructuring programmes carried out by Kachikwu. Will this happen? Only time will tell.

    Under Kachikwu as the NNPC GMD, the board was largely unheard of and inactive. It is however believed that Baru will continue the NNPC reform and transformation as initiated by Kachikwu.

    “Government is a continuum. The era of business as usual is gone for good. It may not be hook, line and sinker but the reform process would not be jettisoned”, a Kachikwu loyalist told The Nation.

    Corporation’s spokesman Mallam Garba-Deen Mohammed told The Nation that it too early to ask what the new group managing director will do.

    He said: “Let’s wait for the handover. The new Group Managing Director will unfold his agenda for the Corporation and the oil and gas industry after the public holidays, and that will be made public.”

    To the Managing Partner of Lonadek Oil and Gas Consultants, Dr. Lola Amao, the new board constituted for NNPC is disappointing, saying the constitution lacks balance.

    She said: “The new board as constituted is very disappointing. A well constituted board should have diversity from professional to gender. For professionals (engineers, lawyers, economists and finance experts, among others) they have done well. However, the board does not have enough geographical/regional representation and gender diversity. The board is also skewed upward in age.

    “The talent composition of the previously dissolved board comprising of former group executive directors (GEDs) of NNPC has been lost. They could have added more value as the transition from Strategic Business Units to incorporated joint ventures (IJV’s) requires historical knowledge base and an understanding of the intent behind the letter.

    “Those that have the ‘out of the box thinking capacity’ that will follow up strategically on the unbundling of NNPC into IJVs to actualise the repositioning of the Corporation to a competitive national oil company like its contemporaries – Statoil, Qatar Petroleum, Kuwait Oil, among others, are required.

    “I do not see a good representation of the interests of marginal field owners. In terms of real-time online e-savvy and out-of-the-box creative strategists, the newly constituted board needs help.

    “Therefore, the newly constituted board falls short of global standards for Board constitution. The mix requires at least three more members, of which two should be women, to have a better balance.”

    Kachikwu’s right and wrong doings

    What made Kachikwu to receive total acceptance on assumption of office as the NNPC chief was the allegations of huge corruption and mismanagement of public funds by the Corporation.

    As the national oil company, NNPC represents government’s interests in the operation and regulation of the petroleum industry. By law, the NNPC manages the joint venture between the Federal Government and some foreign multinational corporations including Shell, Agip, ExxonMobil, Chevron, and Total and recently some indigenous firms.

    But due to the aforementioned allegations, NNPC lost grip of its supervisory role and degenerated into a rent-collector for the government with less attention to transparency and accountability.

    Some of the corruption allegations showed that between 2007 and 2009, auditors found that the corporation over-deducted funds in subsidy claims to the tune of N28.5 billion.

    In 2008, Willbros Group Inc of United States (U.S.) admitted making ‘suspicious’ payments of over $6.3 million to officials of the corporation and its subsidiary – the National Petroleum Investment Management Services (NAPIMS) for assistance in obtaining and retaining contracts at the Eastern Gas Gathering System (EGGS).

    Also in 2004, ABB Vetco Gray, a U.S. company and its UK subsidiary – ABB Vetco Gray UK Limited – admitted paying over $1 million in bribes to NAPIMS’ officials,  in exchange for obtaining confidential bid information and favourable recommendations from government agencies.

    After the publication of a report in November 2013 by Swiss, a non-governmental advocacy organisation – Erklärung von Bern – allegations of fraud surfaced, placing the NNPC under suspicion of siphoning $6.8 billion crude oil revenues.

    The NNPC has been battling with the allegation of non-remittance of $20 billion into the Federation Account since 2013. These allegations, among others, have been responsible for calls for the sanitisation and repositioning of the corporation.

    So, when Kachikwu came on board, following the dissolution of the former board comprising Dr. Joseph T. Dawha (GMD),  Group Executive Directors (GEDs) Mr. Bernard O.N. Otti (Finance & Accounts), Dr. Dan Efebo (Corporate Services), Ikechukwu Oguine (Coordinator, Legal Services/Secretary to the Corporation), Alhaji Abdullahi Bukar (member), Mr. Danladi Wadzani (member), Prof. Olusegun Okunnu (member), Mr. Danladi Kifasi (member) and Mr. Steven Oronsaye (member), it was considered timely having built very successful career in ExxonMobil, a world-renowned multinational firm.

    Kachikwu unbundled the NNPC into five strategic business units from nine. The new units are: Upstream, Downstream, Gas & Power, Finance & Services and Corporate Services. The former GMD noted that it was in line with the Federal Government’s aspiration to transform the Corporation into a lean, efficient, business-focused, transparent and accountable national oil company in keeping with international best practices.

    He appointed as GEDs Dr. Maikanti Baru (Exploration & Production); Mr. Isiaka Abdulrazaq (Finance & Services); Dennis Nnamdi Ajulu (Refining & Technology) and Dr. Babatunde Victor Adeniran (Commercial & Investment.

    He also appointed a new Company Secretary/Legal Adviser and Managing Directors including Chidi Momah, Group General Manager, Company Secretary & Legal Adviser; Mrs. Esther Nnamdi Ogbue, Managing Director, Pipelines and Products Marketing Company (PPMC); Chinedu Ezeribe, Managing Director, Warri Refining & Petrochemicals Company (WRPC); Mr. Babatunde Bakare, Managing Director, Nigerian Gas Company (NGC); Mr. Inuwa Ibrahim Waya, Managing Director, Hyson; Mr. Abubakar Mai-Bornu, Managing Director, Nigerian Petroleum Development Company (NPDC); and Mr. Ladipo Fagbola, Managing Director, NNPC Retail, Mr. Rowland Ewubare, Managing Director, Integrated Data Services Limited (IDSL); Mr. Modupe Bammeke, Managing Director, NNPC Properties; Mr. Abdulkadir Saidu, Managing Director, Duke Oil; and Mr. Dafe Sejebor, Group General Manager, NAPIMS.

    He retired 38 top management staff and reduced the number from 122 to 83. He also recruited 12 personnel from the private sector into the top management cadre to jump-start a new business outlook geared towards enhancing the operational environment as a profit-driven business.

    Many of the measures did not go down well with the management of the NNPC.

     

     

     

  • Baru is NNPC boss as Akinyelure, others join board

    Baru is NNPC boss as Akinyelure, others join board

    President Muhammadu Buhari has approved the composition of the board of the Nigerian National Petroleum Corporation (NNPC), as provided for under Section 1(2) of the NNPC Act of 1997, as amended.

    The new board, according to a statement by the Special Adviser on Media and Publicity, Femi Adesina, is chaired by the Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu.

    Other members include Group Managing Director, Dr Maikanti Kacalla Baru; the Permanent Secretary of the Federal Ministry of Finance.

    Also in the board are Mallam Abba Kyari, Dr Thomas M.A John, Dr Pius O. Akinyelure, Dr Tajuddeen Umar, Mallam Mohammed Lawal, and Mallam Yusuf Lawal.

    President Buhari urged the new board to ensure the successful delivery of the mandate of the NNPC.

    The board, he said, should also: “Serve the nation by upholding the public trust placed on them in managing this critical national asset.”

  • NNPC withholds another $12.9b in eight years – NEITI

    NNPC withholds another $12.9b in eight years – NEITI

    The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Mr. Waziri Adio, on Friday said the Nigerian National Petroleum Corporation(NNPC) has withheld another $12.9billion revenue.

    He said the revenue came from the Nigeria Liquefied Natural Gas between 2005 and 2013.

    He said some infractions have been committed which require the prosecution of the masterminds by anti-graft agencies.

    But the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Magu, said the agency will bite if NEITI wants it to do so.

    According to a statement issued by the Head of Media and Publicity of EFCC, Mr. Wilson Uwujaren, the NEITI Executive Secretary spoke on the stench in the oil sector when he visited the EFCC chairman.

    He said NEITI might report serious infractions to the EFCC.

    He said: “The 2013 Oil and Gas Audit Report revealed that some government agencies like NNPC and its subsidiaries withheld $3.8billion and N358billion.

    “Another revelation is that $12.9 billion was withheld by NNPC from NLNG between 2005 and 2013.”

    He expressed the readiness of his agency to collaborate with the EFCC in tackling corruption by reporting serious infractions that violate the country’s constitution.

    “We have an Act that criminalise certain behaviours. If people do not cooperate with us, if people do not give us information on time, they are liable to be prosecuted, fined and jailed.

    “But, we have existed for 12 to 13 years and nobody has ever been tried under our Act and that is not to say some infractions would not have occurred.”

    He said a major challenge confronting NEITI is the lack of power to prosecute.

    He said NEITI only carries out audit.

    “There are a lot of findings that have come up over time about monies missing, about collusion between operators and government agencies, about possibility of money laundering, about all kinds of economic crimes that we are not in a position to push forward,” Adio said.

    He said deepening relationship with EFCC would help send signals to all the agencies and companies that relate with NEITI to cooperate with it.

    Responding, Magu, assured the delegation that the commission was prepared to give a quick response in areas of need and to improve on the existing relationship between the two agencies.

    “Where you want us to use our teeth to bite, we would readily do so,” Magu added.

  • NNPC, PPMC, NAPIMS owe NIMASA $3.78b

    The Nigerian National Petroleum Corporation (NNPC),  the Pipeline Products Marketing Company (PPMC) and the National Petroleum Investment Management Services (NAPIMS), a subsidiary of the NNPC are jointly owing the Nigerian Maritime Administration and Safety Agency (NIMASA)  $3.78 billion, the House of Representatives has said.

    House Committee on Maritime Safety, Education and Administration disclosed this yesterday during a one-day investigative public hearing on  revenue leakages and operational deficiencies in NIMASA.

    Meanwhile, the Reps committee has vowed to unveil owners of over 5300 defaulting companies, who it accused of depriving the country of the much needed revenue.

    The Chairman of the Committee, Hon. Mohammed Umaru Bago said while the NNPC and PPMC are jointly owing NIMASA  $3 billion, NAPIMS is owing the agency $780 million out of the alleged $10 billion owed the agency.

    The debts are defaults on sundry charges and levies meant to be paid to NIMASA over a 10- year period.

    NIMASA’s Director-General,Dakuku Peterside, while speaking before the committee gave reasons for the huge debt owed the agency.

    According to him, the defaults on the three per cent levy on gross freight earning on in and outbound cargo “ is due to double billing, disclaimed and disputed bills and actual debt.”

    He said no debts was supposed to have incurred on the two perc ent surcharge payment on contract sum on cabotage operating vessel. “ The debt under the ship- to- ship ( STS) is a deliberate attempt by companies not to pay non-remittance by international oil companies to the agency.”

    On the actual total figure owed the agency, Peterside declined to mention a figure saying he would not want to give an offhand answer, but one based on realistic calculations, which he would send to the committee.

    The Minister of Transport, Rotimi Amaechi was represented by the Permanent Secretary of the Ministry, S. Zakari.

    Zakari said the negative and reckless image of NIMASA under the last administration disturbed the Federal Government .

    He said: “Mr. chairman, the negative image of the agency consequent upon its actions, the present administration was disturbed that necessary measures were put in place to amongst others, verify the petitions and allegations of unwholesome reckless management of financial and human resources in the agency.

    “In this regard, the first step by the Federal Government was the removal of the Director-General of the agency and to cary out full investigation into all operations of NIMASA.

    “The president has since appointed a new Director-General for the agency, with a clear mandate to reposition, restructure and reform the agency.

    “Furthermore, and arising from investigations which are ongoing, a number of the agency’s top management and senior staff are either facing trial or are being investigated by relevant agencies..

    “It is also noteworthy that Mr, President has since approved performance audit of the whole maritime agencies. This will holistically address most of these issues and help to block most of the leakages.”

     

  • Senate sets up panel on NNPC’s unremitted N1tr

    Senate sets up panel on NNPC’s unremitted N1tr

    • NEITI: oil production figure unknown

    The Senate yesterday resolved to set up a nine-man ad-hoc committee to consider the statutory report of the Nigerian Extractive Industry Transparency Initiative (NEITI).

    The upper chamber took the decision after a session with the Executive Secretary of NEITI, Mr. Waziri Adio in Abuja.

    The Senate had invited Adio to throw more light on the 2013 audit report of NEITI he submitted to it.

    Before constituting the committee, Senate President, Abubaka Bukola Saraki said based on the fact that the report cut across many standing committees and in view of the enormity issues involved, the consensus is that the Senate should set up ad hoc committee with the responsibility of addressing all the issues.

    Saraki said the terms of reference of the committee included re-examining the financial processes and the fiscal audit report of the NEITI and the financial loss and leakages to government in all its ramifications.

    He added that the panel should also look at remedial measures and sanctions where necessary, “and of course, more importantly any relevant legislative action that would be required to block all forms of leakages.”

    Saraki, named Chairman, Senate Committee on Petroleum (Downstream) Senator Jibrin Barau as chairman of the ad-hoc committee.

    Other members of the committee included Chairman, Senate Committee on Public Account Senator Andy Ubah, Chairman Senate Committee on Petroleum (Upstream) Tayo Alasoadura, Chairman Senate Committee on Gas, Senator Bassey Akpan, Chairman Anti-Corruption, Senator Chukwuka Utazi, Chairman, Senate Committee on Finance, Senator John Owan Enoh, Senators Kabiru Marafa, Bukka Mustapha, and Solomon Adeola.

    The Committee was given four weeks to conclude its assignment and report back to the Senate in plenary.

    Adio in his presentation said the audit report is published every year because NEITI has a mandate to promote accountability and transparency in the management of resources from oil, gas and mining.

    The NEITI boss noted that though the country is aware of its oil and gas export, “we cannot say scientifically what we produce.

    He blamed this on lack of metering in the oil and gas sector.

    He noted that in 2013 the country produced 800.3 million barrels and out of which the country made $58.07 billion which represented eigh per cent reduction on the $62.9 billion the country made in 2012.

    He noted that there are some monies that were withheld, lost or underpaid for different reasons.

    He said: “These monies are in three tranches. The first is in the category of the unremitted, and the unremitted amounted to $3.8 billion and N358 million.

  • NNPC to compensate victims of tanker crash

    NNPC to compensate victims of tanker crash

    The Nigeria National Petroleum Corporation (NNPC) will compensate those whose properties were destroyed when its tanker rammed into a house in Idimu, Lagos last May 30.

    According to the building’s owner, Apostle Williams Akomolafe, NNPC officials met with him last Tuesday and agreed to compensate the victims.

    “At about 2pm on Tuesday, NNPC officials came with their lawyer to clear the accident scene. We held a meeting afterwards, with the Divisional Police Officer (DPO) of Idimu Police Station (Area F) in attendance.

    “NNPC agreed to rebuild the shops and compensate those occupying it. I am happy with this because I am not interested in crisis and I thank them for the gesture.

    “Work began on the shops on Monday and as you can see, it has gotten to the lintel level, and the bricklayers said they are not to rest until the reconstruction work is completed. I am happy with that.

    “I am happy with NNPC’s action. They promised and they fulfilled. I only hope they see it to the end,” Akomolafe said.

    Mrs. Amaka Iloka, who owns the destroyed merchandise shop (Stages Link Int’l Ltd) said: “I am very happy because NNPC promised to pay full compensation for the loss and that reconstruction work will begin soon.

    “It has not been easy since the accident because that is my family’s only source of income but I still thank God that I am alive. I only hope NNPC will be true to its promise to compensate us.

    “Their officials went away with the debris of the goods that were salvaged in the shop and as you can see, the shop is already being rebuilt. I am happy with that,” she said.