The Nation Newspaper

Tag: NNPCL

  • NNPCL’s many mutations

    NNPCL’s many mutations

    One issue that has not ceased to agitate many in the aftermath of the coming of Dangote Refinery is the role that the state national oil company – the Nigerian National Petroleum Company Limited continues to play in the fuel supply matrix. For an entity whose Port Harcourt Refinery’s scheduled turn around completion date has been shifted countless times, the difficulties in tracking its continuing metamorphosis from being the country’s sole petrol importer, then to a major product supplier and now to its self-assigned role sole off-taker of Dangote Petrol can only be understood in the context of the extraordinariness of the current season.

    For even if we agree that circumstances actually forced the company to transit from being the importer of last resort to being sole importer of premium motor spirit (PMS), clearly, its assumption of sole buyer role for Dangote petrol, an entity of which it is supposed to be in competition, would itself be deemed extraordinary at any time.

    Which is why yours truly actually considered the weekend’s brickbats between the NNPCL and Dangote Refinery over the pricing template for petrol ridiculous. But then, I am reminded that these are neither normal nor ordinary times.

    And now with the fuel price template rolled out by the NNPCL came the joke across different social media platforms about the company further mutation, not into an effective competition which Nigerians expected of it or as prescribed by the Petroleum Industry Act, but to the industry’s front-bencher in matters of price determination despite failing to get its own refineries to work.

    Today, the downstream sector’s bone of contention remains the price of petrol, or if you like, the mechanics of its derivation. Moments after it the loaded the first set of consignments of petrol from the $20 billion Dangote Refinery, NNPCL’s spokesperson Olufemi Soleye had set off the firestorm with Daily Trust quoting him as saying: “We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N760 per litre is incorrect. For this initial loading, the price from the refinery was N898 per litre”. 

    Anthony Chiejina, the spokesperson for Dangote would, hours later, dub the statement as “misleading and mischievous”. He claimed that the statement was “aimed at undermining the milestone achievement recorded today, September 15, 2024, towards addressing energy insufficiency and insecurity, which has bedevilled the economy in the past 50 years.”

    Read Also: Troops dismantle 37 illegal refineries, stop creation of new ones in Niger Delta

    Said he: “We sold the products to NNPCL in dollars with a lot of savings against what they are currently importing”, even as he urged Nigerians to disregard the statement and to “await a formal announcement on the pricing, by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars”.

    Note that he did not contest the figures supplied by Soleye’s NNPCL. For all he cared, Nigerians may well continue to savour the illusion (fleeting?) of Dangote petrol being the answer to the nation’s energy woes! In other words, the brouhaha was not so much about the truth of what was said; it is rather about the quarters from where it came from and by extension the bursting of the myth.

    Never mind the wildfire speculations about Dangote petrol being cheaper than the imported petrol; or the social media being agog with a so-called N760 per litre for the Dangote petrol.

    NNPCL’s guilt, it would appear, may have derived from its attempt to burst the illusions of those who believe that petrol prices would dramatically come down with the coming of Dangote petrol. By putting the records out, particularly in the context of the exasperating disinformation campaign against her, the NNPCL may have, understandably ruffled not a few feathers. And for a Dangote Refinery still riding on the crest of nationalist fervour, the attempt to distract the historic import of the moment could not but anything but a treasonable conduct.

    Which is why the mind game – which is really nothing outside mere symbolism – has settled nothing; that is aside deflecting attention from the main issue at stake, which is what it costs to produce a litre of petrol for which most Nigerians have long hungered.

    In the meantime, the NNPCL would on Monday publish a new price template. The product, it stated, will, henceforth, be sold at N950.22 per litre across all its retail outlets in Lagos. Residents in the northern part of the country are expected to pay more for the product with consumers in Borno expected to pay the highest pump price of N1, 019.22.

    The template, it claimed, was based on Dangote Refinery’s gantry price of N898.78 per litre, the industry regulator’s fee of N8.99, inspection fee of N0.97, distribution cost (Lagos) of N15.00 and the marketers’ margin of N26.48 – bringing the total price for the Lagos area to N950.22 per litre.

    The company would on its X platform add for emphasis:  “The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by government, but negotiated directly between parties on an arm’s length.

    “The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024. The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public”.

    For an entity that has known nothing but serial vilifications by Nigerians, one can only hope that the NNPCL is not only right but knows what it is talking about.

    This takes us to the main point of today’s piece, which is the NNPCL’s rather dubious metamorphosis. Thanks to the company’s capacity for unforced errors, it chose to announce the new template instead of allowing a relatively more credible institution like the industry regulator – the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) or even the technical subcommittee empanelled by the government, to do so. For if it seems that an entity so utterly distrusted by Nigerians would be the one to avail Nigerians of the new template, even more so is that the entity in question is a failed competitor.

    Earlier on, I spoke about the jokes in the social media circles – and the absurdity of a physician carrying innumerable ailments setting up an infirmary to treat local ailments. Thanks to NNPCL’s assumption of mandates neither covered by its articles or memorandum of association nor conferred by the Petroleum Industry Act, Nigerians are increasingly forced to return to the most fundamental question: How long shall we continue to wait for the completion of the Turn Around Maintenance programmes for the refineries in Port Harcourt, Warri and Kaduna? So long as the NNPCL continues to either dither or fail to address the question, so long will Nigerians regard its role in the market as either self-serving or plain dishonest. 

  • NNPCL and marketers conspiracy

    NNPCL and marketers conspiracy

    There is hunger and anger in the land. This is because of high cost of food items and transportation, the fall-out of removal of fuel subsidy and the floating of the nation’s currency, measures government says will free us from economic slavery we were thrown into by short-sighted leaders who embarked on massive foreign borrowing, crude oil swapping and local borrowing through ‘ways and means.

    No one can blame President Bola Ahmed Tinubu for having the courage to try to change the narrative before the nation’s descent to Venezuela’s status. But equally, no one can blame angry and hungry Nigerians who, as victims of elite conspiracy embarked on protest which was sadly hijacked by sore losers who will not mind truncating the democratization process that brave Nigerians fought and died for while they hobnobbed with the military dictators.

    I think what hungry and angry Nigerians are saying is that since government policies are made for the people and not the other way round, they must have human face if they are to meet the aspirations of the people they are designed to serve. I don’t think this is too much to ask for.

    If you therefore ask me, I will say the enemies of President Tinubu and by extension of Nigerians, are not those who believe government policies should have human face, many of who by the way, voted for President Tinubu in 2023, but are today united with Tinubu’s erstwhile political foes since hunger, high transport fair and spending hours queuing for fuel know no discrimination.

    I think those the president should fear are those in government whose needs are met by the state and therefore totally cut off from reality.  They are all victims of cultural imperialism who believe market forces is the only way forward  forgetting comparison can be odious. In the home of capitalism, few individuals owned their society while the rest serve as serfs living just to sustain the system in which they cannot afford to send their children to universities or build houses on their own without further enslavement by the state. Here we have no capitalists. As Professor Bolaji Akinyemi once pointed out, most Nigerian billionaires made their monies through the state.

    Those who are therefore hawking the comparative costs of a litre of fuel in Britain, US, China, South Africa are missing the point. President Tinubu signed a social contract with millions of self-employed Nigerians. This distinction is important for those who could not understand the policy thrust of colonial masters who as birds of passage lived in reservation areas, provided with furnished residential houses and like a conquering army lived on spoils of war. This is why our politicians whose needs are met by the state are today cut off from reality of majority of Nigerians.

    Read Also: Troops dismantle 37 illegal refineries, stop creation of new ones in Niger Delta

    Nigerian National Petroleum Company Limited (NNPCL) is perhaps the next most dangerous enemy of President Tinubu and by extension, Nigeria. It was set up for the purpose of is harnessing Nigeria’s oil and gas reserves for sustainable national development. It was also to profitably and efficiently market refined petroleum products in the domestic market and ensuring products supply efficiency either from domestic refining or from importation.

    Unfortunately NNPC not only failed, it has remained a cesspool of corruption outwitting successive Nigerian leaders over the years.

    Incidentally  Olusegun Obasanjo while serving as military head of state in 1977, had set up a tribunal to investigate the operations of the Nigerian National Oil Company (NNOC), which metamorphosed into NNPC). Perhaps, based on his experience, he, as elected president (1999-2007), decided to run NNPC as a sole administrator.

    Under his watch, millions of dollars budgeted for the refurbishment of our four refineries was frittered away. With no work done, NNPC created artificial fuel scarcity, a ploy that led to the creation of an all-purpose body through which party stalwarts and their siblings with the active connivance of some NNPC officials defrauded the nation of trillions of naira through fuel subsidy scam without importing a pint of fuel. He sold the refineries before his exit from power in 2007, a decision his successor Umaru Yar’Adua reversed.

    President Goodluck Jonathan told Nigerians he was in possession of the names of those sabotaging Nigerian economy through NNPC. While the list never saw the light of the day, NNPC became a source of massive fraud by Diezani Alison-Madueke, Jonathan’s petroleum minister (2010-2015). She has been charged with bribery offences in the UK, with the US Department of Justice recovering from her assets totalling $53.1m.

    President Muhammadu Buhari was not unfamiliar with monumental corruption in NNPC. During his tenure as Federal Commissioner of Petroleum and Natural Resources, he was falsely linked by Ibrahim Babangida who toppled his government with, US$2.8 billion which allegedly went missing from the accounts of the Nigerian National Petroleum Corporation (NNPC) in Midlands Bank in the United Kingdom. He was however found innocent by the Crude Oil Sales Tribunal of Inquiry headed by Justice Ayo Irikefe.  

    This experience might have influenced his decision to appoint himself Minister of Petroleum while serving as elected president between 2015 and 2023. This however brought little relief as NNPC remained a cesspool of corruption.

    Toeing the line of his predecessors, President Tinubu also took over the petroleum ministry. Tinubu unarguably was not into the game of popularity contest in view of the biting effect of his economic policies, what he however did not bargain for was to be portrayed as an unfeeling and uncaring leader that deliberately visited hardship on his people.

    He had directed that crude oil be sold in naira to Dangote Refinery. Dangote had thanked him for his support and faith in local manufacturers and predicted era of relief for Nigerians who spend hours on queues at filling stations. Dangote’s message of hope was coming amidst artificial fuel scarcity created by NNPC that claimed to owe $6b to international fuel suppliers a few weeks after declaring a whopping profit of about N3 trillion.

    On September 3, 48 hours after Dangote’s promise of a new dawn in oil supply to Nigerians, NNPC that had for months denied payment of subsidy by government, jacked up price petrol pump prices from N585 to N897 per litre.  And then by strange coincidence, fuel supply to the filling stations suddenly eased without telling Nigerians the source of their new supply.  

    I am sure President Tinubu, a seasoned politician by all accounts, understands that he is the target. Imagine; the NNPC, the regulator – the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NIMDPRA) that had a week earlier tried to question the quality of products from Dangote refinery which they claimed had excess sulphur, even when they did not have standard testing laboratories.

    Of course, the Peoples Democratic Party (PDP), took time off from its civil war to do its job as an opposition party for once by describing fuel price increase by the NNPC “as a brutal assault on the sensibility and wellbeing of Nigerians by the insensitive and arrogant All Progressives Congress (APC) administration. It accused the APC government of being indifferent and unresponsive to the struggles of millions of Nigerians who can no longer afford their daily necessities”. Unfortunately this is a message that resonates with most Nigerians going through this difficult period

    The picture of the president painted was very damaging because until it was confirmed last Sunday morning  that  the Nigerian National Petroleum Company Limited (NNPCL) has deployed over 100 trucks to the Dangote Refinery in preparation for the commencement of fuel loading on Sunday, with the seven major oil marketers, dealers under the aegis of the Major Oil Marketers Association of Nigeria, the Independent Petroleum Marketers Association and the Petroleum Products Retail Outlets Owners Association of Nigeria  claiming their readiness to start lifting and distribution of refined petroleum products, it was widely believed by Nigerians that government that refused to denounce NNPC as it embarked on its game along with marketers was party to their conspiracy against Dangote and Nigerians.

  • Dangote petrol price based on forex, crude oil –NNPCL

    Dangote petrol price based on forex, crude oil –NNPCL

    Premium Motor Spirit (PMS) pump price from Dangote Refinery are based on the prevailing exchange rate and price of crude oil.

    Nigerian National Petroleum Company Limited (NNPCL), Chief Corporate Communications Officer, Mr. Olufemi Soneye, disclosed this in a statement on Monday.

    He said the decision is in line with the Petroleum Industry Act (PIA).

    The statement reads: “The estimated prices are based on negotiated terms between NNPC and Dangote Refinery which recognise the current international gasoline prices and the prevailing foreign exchange rate in line with the provisions of the PIA.”

    Read Also: Price list of NNPCL for Dangote petrol across Nigeria

    NNPCL confirmed that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October , 2024.

    The National Oil Company added: “We reassure Nigerians that any discount from the Dangote Refinery will be passed on 100% to the general public.”

    According to the statement, NNPCL released  the estimated petrol pump price from the refinery based on September 2024 supply.

  • NNPCL, Chevron JV eyes 165,000b/d from assets

    NNPCL, Chevron JV eyes 165,000b/d from assets

    The Nigerian National Petroleum Company Limited (NNPCL) and its Joint Venture (JV) partner, Chevron Nigeria Ltd (CNL) are eying 165,000 barrels per day (bpd) by December 2024.

    In line with the Petroleum Industry Act (PIA) 2021 provisions of transiting assets from the Petroleum Profit Tax (PPT) into PIA terms, the partners have concluded the conversion of five of its JV assets into the PIA terms.

    This was contained in a press statement NNPCL issued yesterday.

    The national oil company said under the new PIA regime, all existing Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) would be automatically converted to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon their expiration.

    Nonetheless, an option of voluntary conversion is provided for holders of OPLs and OMLs (Operator, Licensees or Lessees) under the erstwhile Petroleum Profit Tax (PPT) regime. The PIA terms are generally perceived as more investor-friendly compared to the erstwhile PPTA terms.

    During a brief ceremony held at the NNPC Towers on Monday, the two partners signed documents on the conversion of five OMLs into four PPLs and 26 PMLs, in line with the new PIA terms, marking a significant step towards increasing domestic gas supply and expanding global market presence.

    Speaking on the occasion, Group CEO NNPC Ltd, Mr. Mele Kyari, described CNL as one of the most reliable partner of the NNPC Ltd. “Over the years, Chevron has been a partner of choice that has not contemplated completely divesting/exiting (oil production in) the shallow water and we are proud of them,” he said.

    Kyari assured CNL that NNPC Ltd would sustain its partnership with the JV partner so as to create more value for both parties and expand Nigeria’s footprints in the domestic and export gas markets.

    He commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its exemplary role in midwifing the conversion.

    Read Also: NNPCL, Chevron JV eye 165,000b/d from assets

    The Director, Deepwater and Production Sharing Contract (PSC) of CNL, Mrs. Michelle Pflueger who stressed the significance of the conversion for both companies, affirmed CNL’s long-standing commitment to the assets.

    Also speaking, NNPC Ltd’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, highlighted the advantages of the PIA terms over the previous PPT terms, noting that the conversion was a strategic move towards the successful implementation of the PIA.

    In his remarks, NNPC Ltd’s Chief Upstream Investment Officer, Mr. Bala Wunti, noted that the assets conversion is expected to significantly boost crude oil production, with the two partners focusing on attaining the 165,000 barrels of oil per day (bopd) production target by year-end 2024.

    He emphasized the continued importance of CNL’s operational philosophy in maintaining network stability and facilitating gas supply especially to the domestic market.

  • NNPCL, Chevron JV eye 165,000b/d from assets

    NNPCL, Chevron JV eye 165,000b/d from assets

    The Nigerian National Petroleum Company Limited (NNPCL) and its Joint Venture (JV) partner, Chevron Nigeria Ltd (CNL) are eying 165,000 barrels per day by December 2024.

    In line with the Petroleum Industry Act (PIA) 2021 provisions of transiting assets from the Petroleum Profit Tax (PPT) into PIA terms, the  partners have concluded the conversion of five of its JV assets into the PIA terms.

    This was contained in a statement by NNPCL on Monday.

    The national oil company said Under the new PIA regime, all existing Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) would be automatically converted to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon their expiration. 

    Nonetheless, an option of voluntary conversion is provided for holders of OPLs and OMLs (Operator, Licensees or Lessees) under the erstwhile Petroleum Profit Tax (PPT) regime. The PIA terms are generally perceived as more investor-friendly, compared to the erstwhile PPTA terms.

    During a brief ceremony at the NNPC Towers on Monday, the two partners signed documents on the conversion of five (5) OMLs into four (4) PPLs and twenty-six (26) PMLs, in line with the new PIA terms, marking a significant step towards increasing domestic gas supply and expanding global market presence.

    Speaking at the occasion, Group CEO NNPC Ltd, Mr. Mele Kyari, described CNL as one of the most reliable partners for the NNPC Ltd. “Over the years, Chevron has been a partner of choice that has not contemplated completely divesting/exiting (oil production in) the shallow water and we are proud of them,” he added.

    Kyari assured CNL that NNPC Ltd would sustain its partnership with the JV partner so as to create more value for both parties and expand Nigeria’s footprints in the domestic and export gas markets.

    He commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its exemplary role in midwifing the conversion. 

    Read Also: Acting Chief Justice of Nigeria (CJN)

    The Director, Deepwater and Production Sharing Contract (PSC) of CNL, Mrs. Michelle Pflueger who stressed the significance of the conversion for both companies, affirmed CNL’s long-standing commitment to the assets.

    Also speaking, NNPC Ltd’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, highlighted the advantages of the PIA terms over the previous PPT terms, noting that the conversion was a strategic move towards the successful implementation of the PIA.

    NNPC Ltd’s Chief Upstream Investment Officer, Mr. Bala Wunti, noted that the assets conversion is expected to significantly boost crude oil production, with the two partners focusing on attaining the 165,000 barrels of oil per day (bopd) production target by year-end 2024. 

    He emphasised the continued importance of CNL’s operational philosophy in maintaining network stability and facilitating gas supply especially to the domestic market. 

  • Why petrol pricing is not yet market-driven, by NNPCL

    Why petrol pricing is not yet market-driven, by NNPCL

    The Nigerian National Petroleum Company Limited (NNPCL) has explained that petrol pricing in Nigeria cannot be compared with other developed markets because the country still modulates pricing to support general affordability.

    Executive Vice Chairman, Downstream, Nigerian National Petroleum Company Limited (NNPCL) Engr. Dapo Segun, said Nigeria is still not operating full pricing of the Premium Motor Spirit (PMS), otherwise known as petrol, which explains why Nigeria cannot be compared with other climes.

    According to him, petrol prices are higher in other countries because they are solely market-driven.

    “So, but the opposite is our situation. We’re not at a full market-pricing of PMS yet, and that’s why the behaviour of PMS prices in Nigeria cannot be compared to those markets where the prices are fully market-based.

    “And if you’re going to do a comparison, you want to check out the equivalence of those prices you see in those climes and compare their prices here, you’ll find that they’re still way higher than the prices we are offering when you bring them to common currency,” Segun said.

    He clarified that petrol availability remained scarce in some cities despite recent pump price hike as many retail outlets have been recalibrating their meters due to the increase in retail pump price.

    According to him, it takes some days for the filling to get the meters recalibrated.

    He was optimistic that in a few days the queues will disappear.

    “When you have a situation, when you have a price change situation, it takes a few days for all the filling stations to recalibrate their meters to that basically is the situation we are in now,” he said.

    He said petrol prices are largely determined by seasons, stressing there are bound to be higher prices in winter due to increased demand for energy than in summer.

    Read Also: Nigeria, other African petro states missing out on oil boom -Expert

    “During the summer months, prices are high because it’s a driving season. In the winter months, your prices come down and things like that. So that’s what the PIA provides for and prices should move with the seasons,” Segun said in an interview on Arise News Morning Show.

    He said the NNPCL has been working hard to ensure that the product is delivered to marketers by opening early and closing late.

    He also said the state-owned is working hard to prevent diversion of the petrol to unscheduled destinations.

    His words: “We are working with all the marketers, engaging with them to ensure our fuel marketers to ensure all the fuel stations open early and close late, and make sure that there is fuel in all of the filling stations. So, we are ensuring that deliveries are made to stations

    “And we are doing our best to ensure that there is no diversions…

    “I expect that this will fizzle out within the next few days as more stations calibrate and begin to sell.

    “If you look in  section 12 (5) of the PIA and that is the act that gave birth to NNPCL,  it tells you that petroleum prices of fuel prices will base on unrestricted market conditions.”

    On debt owed to PMS suppliers, he said the company has a good relationship with the refiners because it has earned their confidence over the years.

    Segun who admitted there may be challenges, blamed it all on forex illiquidity in the market.

    Despite that, he said NNPCL is making payments to the suppliers

    “We do what we can to make sure that we are within the confidence of our suppliers.

    “I can assure you that our suppliers have confidence in our ability to pay. NNPCL has never defaulted in making its payments and that is why our suppliers continue to back us up,” Segun said.

  • We are not sole suppliers of Dangote petrol – NNPCL

    We are not sole suppliers of Dangote petrol – NNPCL

    The Nigerian National Petroleum Company Limited (NNPCL) has said it is not the only off-taker of the Dangote Petroleum Refinery Premium Motor Spirit (PMS) petrol.

    The National Oil Company said the market is also open to lower price from the refinery.

    Its Chief Corporate Communications Officer, Mr Olufemi Soneye made this known in a  rejoinder at the weekend.

    He said the attention of the NNPC Ltd has been drawn to a statement by the Muslim Rights Concern, MURIC, which claims that the Dangote Refinery Limited (DRL) is being undermined by actions of the Nigerian National Petroleum Company Limited (NNPC Ltd). 

    Read Also: Aiyedatiwa appoints 344 additional aides

    He said specifically, MURIC asserts that recent changes to the pump price of Premium Motor Spirit (PMS) will prevent the Dangote Refinery from offering lower prices and that NNPC Ltd has become the sole offtaker of all products from the refinery.

     Setting the  records straight, the rejoinder said:  “The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is determined by global market forces. The recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market.

    ” In fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market.”

     The rejoinder reads in part:  “Furthermore, we emphasize that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL. 

    “The NNPC Ltd will only fully offtake PMS from the DRL if the market prices of PMS are higher than the pump prices in Nigeria. The DRL and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products. 

    “NNPC Ltd has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole offtaker does not arise.

    “The NNPC Ltd cannot undermine a business in which it holds a billion-dollar stake.

    ” As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPC Ltd.”

  • Nigerians in diaspora seek restructuring of NNPCL’s debt

    Nigerians in diaspora seek restructuring of NNPCL’s debt

    The Nigerian Professionals in Diaspora (NPID) has called for the restructuring of the Nigerian National Petroleum Company Limited (NNPCL) debt profile in order for the oil giant to meet its obligations and ensure a steady fuel supply at reasonable prices.

    The group noted that it was imperative to restore confidence in Nigeria’s ability to honour its international commitments by paying its debts.

    President of NPID, Dr. Obiora Okereke, and Secretary, Mrs Bukola Shonekan said this in a statement on Friday.

    The NNPCL this week confirmed that it was owing $6 billion to suppliers which has resulted in fuel queues nationwide.

    “It is imperative to restore confidence in Nigeria’s ability to honour its international commitments. NNPCL’s debts must be restructured, and a clear plan put in place to ensure continuous petrol supply at reasonable prices,” the group said.

    The group stated that international suppliers are no longer willing to provide petrol on credit to NNPCL because of the outstanding debts of the oil company.

    According to the group, the debt by the NNPCL has disrupted fuel supply chains and led to the recent hike in fuel prices, adding that it has further compounded the difficulties faced by ordinary Nigerians.

    It commended President Bola Tinubu for his commitment to steering the country toward prosperity but criticised his economic managers for failing to effectively support his vision.

    The group emphasised the detrimental impact of the current economic strategy, specifically pointing to the poorly implemented floating of the Naira as a major factor in the currency’s continued depreciation.

    “Instead of stabilising the Naira and attracting foreign investment, this policy has further weakened the currency, driving up the cost of goods and services and creating unbearable inflation for the Nigerian people,” the statement said.

    Read Also: Nigerians in Diaspora seek restructuring of NNPCL’s debt

    It added: “We believe that President Tinubu’s vision for Nigeria is clear, but the implementation of his economic policies by his advisers and managers is lacking in strategic foresight and execution.

    “The economic handlers of this administration must take responsibility for the current challenges and urgently recalibrate their approach to avoid further worsening the economic landscape.

    “The President’s economic handlers must be held accountable for the negative outcomes of their policies. A more competent, transparent, and strategic economic management team is needed to guide Nigeria out of this economic quagmire.

    “NPID reaffirms its support for President Tinubu and his administration’s efforts to rebuild Nigeria. However, we urge immediate corrective measures to ensure that the President’s vision is not derailed by the ineffective actions of those entrusted with managing the economy. Nigeria has the potential to rise again, but it requires sound economic policies and a team capable of delivering results for the Nigerian people,” it added.

  • Nigerians in Diaspora seek restructuring of NNPCL’s debt

    Nigerians in Diaspora seek restructuring of NNPCL’s debt

    …says this will allow oil giant meet its obligations

    The Nigerian Professionals in Diaspora (NPID) has called for the restructuring of the Nigerian National Petroleum Company Limited (NNPCL) debt profile for the oil giant to meet its obligations and ensure a steady fuel supply at reasonable prices.

    The group noted that it was imperative to restore confidence in Nigeria’s ability to honour its international commitments by paying its debts.

    President of NPID, Dr Obiora Okereke and Secretary, Mrs Bukola Shonekan said this in a statement on Friday.

    The NNPCL this week confirmed that it was owing $6 billion to suppliers which has resulted in fuel queues nationwide.

    “It is imperative to restore confidence in Nigeria’s ability to honour its international commitments. NNPCL’s debts must be restructured, and a clear plan put in place to ensure continuous petrol supply at reasonable prices,” the group said.

    The group stated that international suppliers are no longer willing to provide petrol on credit to NNPCL because of the outstanding debts of the oil company.

    According to the group, the debt by the NNPCL has disrupted fuel supply chains and led to the recent hike in fuel prices, adding that it has further compounded the difficulties faced by ordinary Nigerians.

    Read Also: NNPCL’s full disclosure and necessity of disciplined lifestyle

    It commended President Bola Tinubu for his commitment to steering the country towards prosperity but criticised his economic managers for failing to effectively support his vision.

    The group emphasised the detrimental impact of the current economic strategy, specifically pointing to the poorly implemented floating of the Naira as a major factor in the currency’s continued depreciation.

    “Instead of stabilising the Naira and attracting foreign investment, this policy has further weakened the currency, driving up the cost of goods and services and creating unbearable inflation for the Nigerian people,” the statement said.

    It added: “We believe that President Tinubu’s vision for Nigeria is clear, but the implementation of his economic policies by his advisers and managers is lacking in strategic foresight and execution.

    “The economic handlers of this administration must take responsibility for the current challenges and urgently recalibrate their approach to avoid further worsening the economic landscape.

    “The President’s economic handlers must be held accountable for the negative outcomes of their policies. A more competent, transparent, and strategic economic management team is needed to guide Nigeria out of this economic quagmire.

    “NPID reaffirms its support for President Tinubu and his administration’s efforts to rebuild Nigeria. However, we urge immediate corrective measures to ensure that the President’s vision is not derailed by the ineffective actions of those entrusted with managing the economy. Nigeria has the potential to rise again, but it requires sound economic policies and a team capable of delivering results for the Nigerian people,” it added.

  • Time to call the NNPCL to order

    Time to call the NNPCL to order

    • By Nwachuku Charles

    Sir: In 2019, the administration of President Muhammadu Buhari, appointed Mele Kyari as the GMD of NNPCL as replacement for Maikanti Baru who was eased out of office in NNPCL. Kyari is currently the 19th group GMD of the corporation.

    More than 15 months after the ascendancy of the Bola Ahmed Tinubu presidency, Kyari has held fort and called the shots at the corporation. Over the same period that he has presided over the affairs of the NNPCL, the company undertook series of turn-around maintenance [TAM] of the nation’s various refineries at Port Harcourt, Warri and Kaduna respectively. Incidentally none of the series of turn-around maintenance was able to put any of the refineries on the path of production almost six years after his appointment, in a country that is blessed with abundant crude oil in its soil.

    Kyari and his NNPCL’s interests in importing finished petroleum products into the country while crude oil is daily pumped from the bowels of our land and shipped overseas is rather curious and questionable when considered against the backdrop that the refineries here have remained moribund or dormant and unproductive. 

    Recently reports say the NNPCL made over N3trillion as profit, the first in several years; the same amount the presidency magnanimously ploughed back into the company to support further importation of fuel to ease the pains of the removal of fuel subsidy at the inception of his administration. 

    Expectedly the gesture by the government was aimed to alleviate the hardship faced by the masses.  Unfortunately immediately thereafter, Kyari alleged that the NNPCL was owed about $6billion as unsettled costs for fuel importation into the country for several years. 

    Read Also: We must embrace multilateralism to secure sustainable peace, development, Tinubu tells African leaders

    The question then is ‘where and how’ did Kyari and his fuel importation coordinating team in NNPCL raise the whopping $6billion to import fuel into the country which the federal government is now supposedly indebted to it even as it is the nation’s national oil corporation overseeing the activities of other oil producing companies on behalf of the government?

    Interestingly the company [NNPCL] has now raised the pump price of petrol to an historic high of almost N900 per litre despite the government’s N3trillion to it.  The effect of this has rippled to other petroleum marketing bodies with one litre costing up to N1,300/litre, thereby exacerbating the hardship faced by the populace with its attendant consequences as the masses are now groaning under the heavy weight of increases in prices of both goods and transportation. Certainly this is aimed at frustrating the government’s intentions and efforts and perhaps to incite the general public against the government.

    It is therefore about time that the President Tinubu looked into the activities and roles of the NNPCL in line with his economic policies and direction to put the nation on the path of recovery. The time is now in order to forestall further damages that Kyari and his fuel pump politics will unleash on the nation and her citizens.

    I call on the President Tinubu to act very fast; now is the time to tame the nefarious activities of NNPCL as well as other enclaves in the polity.

    •Nwachuku Charles O. 

    okuchals@gmail.com>