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  • N2.6 trillion debt: Reps invite NNPC, NDDC, others for investigation

    N2.6 trillion debt: Reps invite NNPC, NDDC, others for investigation

    By Isaac Kertyo

    In its bid to investigate over N2.6 trillion debt owed by oil companies, the House of Representatives has invited the Nigerian National Petroleum Corporation, the Niger Delta Development Commission, and many others before the House.

    The other bodies invited by the House Ad-hoc Committee on the recovery of outstanding debts owed to the Federal Government by Oil and Gas companies in Nigeria include the Federal Inland Revenue Service, Upstream Regulatory Commission, Midstream and Downstream Petroleum Regulatory Authority.

    This is based on the report of the National Extractive Industries Extractive Initiative that 77 Oil and Gas companies operating in Nigeria were owing the Federal Government over N2.6 trillion.

    The Clerk of the Committee, Mr Eric Makwe, said this in a statement on Monday in Abuja, against the backdrop of the 2020 NEITI report.

    He said that the invitation was based on the motion at plenary on November 30, 2021, which cited the NEITI report that 77 Oil and Gas companies operating in Nigeria were owing the Federal Government over N2.6 trillion.

    The clerk also noted that the House directed NEITI, the National Oil Spill Detection Agency, and the FIRS to provide necessary data that was needed in the investigation that would help to facilitate recovery of the debts.

    He also said that the head of the 18-member ad hoc committee investigating the debt, Representative Nkeiruka Onyejeocha, had assured that the committee would thoroughly investigate all issues raised in the NEITI report.
    “The probe is in respect of outstanding liabilities owed by Oil and Gas which include payments of royalties, levies, rents, concessions, rentals, and penalties,” he said.

    Others are taxes, including petroleum profit tax, company income tax, education tax, Value Added Tax, withholding tax, among others.
    Makwe also noted that the major concern of the lawmakers was on the current poor revenue structure and rising debt profile which the government was battling.

    It was gathered that the committee had already begun the investigation and was already making interesting discoveries.

  • NNPC, NUPENG, Others Reach Truce As Another Fuel Scarcity Just Averted

    NNPC, NUPENG, Others Reach Truce As Another Fuel Scarcity Just Averted

    By Becky Adi

    The Nigerian Association of Road Transport Owners (NARTO), National Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum Tanker Drivers (PTD) have suspended their planned strike after an intervention by the NNPC Ltd.

    The parties also pledged collaboration on ensuring nationwide availability of petroleum products.

    The suspension notice was made known in a communique following a critical stakeholders engagement between the NNPC Ltd., the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), PTD, NARTO, and NUPENG on Thursday, in Abuja.

    The communique was jointly signed by Malam Mele Kyari, Group Managing Director, NNPC, Otunba Salmon Oladiti, National Chairman PTD , Mr Yusuf Otthman, NARTO President Comrade Williams Akporeha, NUPENG President and Abiodun Adeniji, Executive Director, Finance and Admin, NMDPRA.

    NUPENG and PTD had planned to embark on strike following allegations that officials of the Federal Ministry of Works and Housing were diverting the fund provided by NNPC Limited for the rehabilitation of 21 critical highways.

    On Road Rehabilitation, the communique said NNPC provided updates on the current status of the road construction and rehabilitation projects under the road infrastructure tax credit scheme.

    It said the NNPC assured the stakeholders that the funding earmarked for the 21 critical roads would be applied for the intended purpose only.

    “To allay the fears of the stakeholders, NNPC and all parties commit to working together in the monitoring of the road projects,” it stated..

    On review of freight rate for transporters, the communique noted that the stakeholders requested for completion of the ongoing discussion on the review of the freight rates to cover operational costs.

    It noted that the stakeholders highlighted the precarious situation that truck owners faced in the light of current economic realities.

    It further noted that the NMDPRA informed the meeting that a committee was constituted to review the rates which included PTD, NARTO and NUPENG in addition to other stakeholders.

    It stated that all parties agreed to work expeditiously towards concluding the review of the freight rate and make recommendations to the Government.

    According to the communique, the Authority is to advise on definite close-out date during the week of Feb. 21.

    “The parties also agreed to foster collaboration on ensuring nationwide availability of petroleum products.

    “All parties agreed to work closely to ensure efficient distribution of petroleum products across the country,” it stated.

  • NNPC Apologises To Nigerians Over Toxic Petrol, Says Fuel Scarcity To End Soon

    NNPC Apologises To Nigerians Over Toxic Petrol, Says Fuel Scarcity To End Soon

    The Nigerian National Petroleum Company (NNPC) has apologised to Nigerians for the importation of toxic Premium Motor Spirit (PMS), popularly known as petrol, into the country.

    It also regretted the damage done to the vehicles of motorists by the toxic petrol, and the resulting scarcity and long queues at filling stations in various parts of the country.

    NNPC Group Managing Director (GMD), Mele Kyari, tendered the apology on Wednesday during an interaction with the House of Representatives ad-hoc committee investigating the circumstances surrounding the importation of the adulterated fuel into the country.

    He stressed that the company was not aware of the presence of methanol in the imported fuel and has taken measures to manage the situation.

    Kyari explained that the loading terminal from where the toxic petrol was brought into the country has been supplying gasoline for a very long time, as it was a major terminal supplying fuel not only to West Africa but many countries in Europe.

    He assured Nigerians that about 2.1 billion litres of the product would have been injected into the system before the end of the month.

    The NNPC chief asked them to avoid panic-buying of fuel, saying the distribution of the product would normalise in the weeks ahead.

    Kyari appeared before the lawmakers amid growing concerns over fuel scarcity which has worsened in Abuja, Lagos, and some parts of the country where hundreds of motorists were left stranded on long fuel queues.

    As part of measures to address the situation, the company directed all its depots and outlets to begin 24 hours operations across the country.

    NNPC Group Executive Director (Downstream), Mr Adetunji Adeyemi, who briefed reporters on Tuesday in Abuja, stated that the company was already accelerating petrol distribution.

    Stressing that several million litres of petrol were in stock, he revealed that the NNPC was expecting about 2.3 billion litres of petrol in the country by the end of the month.

    Adeyemi said the company has constituted a monitoring team with the support of the authority and other security agencies to ensure the smooth distribution of petrol nationwide.

  • Fuel Scarcity: NNPC distributes 1billion litres of fuel Nationwide, Orders 24-Hour Operations

    Fuel Scarcity: NNPC distributes 1billion litres of fuel Nationwide, Orders 24-Hour Operations

    The Nigerian National Petroleum Company (NNPC) has directed all its depots and outlets to begin 24 hours operations to address the fuel scarcity across the country.

    NNPC Group Executive Director (Downstream), Mr Adetunji Adeyemi, announced this on Tuesday in Abuja amid the growing concerns over the scarcity of Premium Motor Spirit (PMS) popularly known as petrol.

    “In order to accelerate PMS distribution across the country, NNPC limited has commenced 24 hours operations at its depots and retail outlets nationwide,” he said at a news conference in the nation’s capital.

    Adeyemi revealed that the company has several million litres of petrol in stock, adding that they were expecting about 2.3 billion litres of petrol in the country by the end of the month.

    He stated that the retail outlets of major oil marketers have also commenced 24 hours service to ensure that more motorists were attended to daily.

    “To address the (fuel scarcity) situation, over 2.3 billion litres will arrive the country between now and end of February 2022,” the NNPC group executive director said. “This will restore sufficiency level above the national target of 30 days.

    “As of today, NNPC has over one billion litres of petrol in stock and the petrol being dispensed at the various filling stations in the country is safe.

    “Furthermore, NNPC has constituted a monitoring team with the support of the authority and other security agencies to ensure smooth distribution of petrol nationwide.”

    Adeyemi made the announcement as a precautionary measure as the situation worsens in Abuja, Lagos, and some parts of the country where hundreds of motorists are left stranded on long fuel queues at the few filling stations dispensing petrol.

  • Reps to invite ministers, NNPC, others in refineries, fuel consumption probe

    Reps to invite ministers, NNPC, others in refineries, fuel consumption probe

    By Joyce Babayeju

    The House of Representatives Ad Hoc Committee on the State of Refineries in Nigeria is billed to invite top Federal Government officials, regulators,

    marketers, workers’ unions, oil companies, and other stakeholders in the petroleum sector in its investigation of the inability of the country to refine its crude oil.

    According to reliable sources in the committee, those who have been penciled down to appear before the committee include: the Minister of Finance, Budget and National Planning, Zainab Ahmed; Minister of Justice and Attorney-General of the Federation, Abubakar Malami (SAN); and Minister of State for Petroleum Resources, Timipre Sylva.

    Also on the list are the Accountant-General of the Federation, Ahmed Idris; Auditor-General of the Federation, Adolphus Aghughu; and the Director-General, Budget Office, Ben Akabueze.

    Officials of the Nigerian National Petroleum Company Limited, Nigerian Midstream and Downstream Petroleum Authority, Nigerian Upstream Petroleum Regulatory Commission, Warri Refining and
    Petrochemical Company Limited, Kaduna Refining and Petrochemical Company Limited, Port Harcourt Refining Company Limited, Dangote Refinery, and all licensed modular refineries, among others, will also appear before the panel.

    The committee had begun an investigation of the current state of the country’s four refineries and the amounts spent on the ‘Turn-Around Maintenance’ of the national assets.

    The Chairman of the committee, Ganiyu Johnson, after the inauguration of the panel on February 3, 2022, had disclosed that stakeholders in the petroleum sector in both the public and private sectors would soon begin to appear before the lawmakers.

    The House had on January 27, 2022, adopted two motions to institutionalise an earlier order by the Speaker, Femi Gbajabiamila, for an investigation of the current state of Nigeria’s four refineries and the actual volume of Premium Motor Spirit, popularly called petrol, being consumed by the country daily.

    Gbajabiamila had earlier ordered separate probes into the issues, setting up ad hoc committees to carry out the tasks.

    The Nigerian National Petroleum Company Limited had said it spent N100bn on refineries’ rehabilitation in 2021 and that funds were pumped into revamping the facilities on a monthly basis last year.

    It disclosed this in a report on the funding performance of the oil firm from January to December 2021, which was seen in Abuja on Sunday.

    Although no refinery was mentioned in the report, Nigeria’s refineries had been under the management of NNPC, as the rehabilitation of one of the facilities, Port Harcourt Refining Company, had been ongoing.

    The other refineries under the NNPC’s management include the Kaduna Refining and Petrochemical Company, as well as the Warri Refining and Petrochemical Company.

    In the NNPC’s latest funding performance report, the firm stated that N8.33bn was spent monthly for a period of 12 months beginning from January to December 2021 on refinery rehabilitation.

  • NYCN speaks on scarcity of petrol, commends NNPC for proactive measures

    NYCN speaks on scarcity of petrol, commends NNPC for proactive measures

    The National Youth Council of Nigeria (NYCN) has commended the Nigerian National Petroleum Company (NNPC) on its handling of the scarcity of petrol motor spirit (PMS) experienced across Nigeria in recent times.

    The NNPC had revealed that the scarcity was occasioned by the importation of adulterated fuel by suppliers.

    Addressing a press conference on Friday, February 11 in Abuja, NYCN president, Comrade Solomon Adodo, said the council had set up a task force to monitor the situation.

    Comrade Adodo who addressed journalists after an emergency session of the leadership of the council, said the task force of the NYCN wasted no time in carrying out its assignment and made so much discovery.

    According to him:

    “The Nigerian National Petroleum Company Ltd. led by Mele Kyari immediately ordered the holding back of all the affected products in transit (both truck and marine) after it discovered the presence of methanol in four petrol cargoes imported by MRS, Emadeb/ Hyde/Ay Maikifi/Brittania- U Consortium, Oando and Duke Oil.

    “Our task force also found out that the NNPC also asked oil companies to embark on emergency supply of petrol to replace cargoes that were rejected as a result of their poor quality.

    “These remedial actions aimed at arresting the use of the contaminated fuel inadvertently disrupted the country’s fuel supply chain and led to the damage of several cars.

    “We are satisfied with the prompt action taken by the federal government in ordering for a full investigation into the bad fuel that damaged engines of some vehicles.

    “In particular, we commend the transparency and full disclosure adopted by Nigerian National Petroleum Company Ltd. under the leadership of Mallam Mele Kyari in getting to the root of the problem.

    “Without doubt, the decision of NNPC to order the quarantine of all unevacuated volumes of the contaminated fuel saved the nation from a monumental scandal.

    “This is a welcome departure from the past when the activities of the oil giant was shrouded in secrecy.”

  • Oando fires back at NNPC, denies importing adulterated petrol

    Oando fires back at NNPC, denies importing adulterated petrol

    By Becky Adi

    Oando Plc. has said it did not import adulterated Premium Motor Spirit into the country, in contrast to what the Nigerian National Petroleum Company Ltd. said on Wednesday.

    The NNPC Group Managing Director, Mele Kyari, had said the national oil firm received on January 20, 2022, a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

    He said NNPC investigation revealed the presence of methanol in four PMS cargoes imported by its Direct Sale Direct Purchase suppliers namely: MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando, and Duke Oil.

    But Oando, in a statement released to the Nigerian Exchange Ltd., on Thursday, said, “Following media reports listing Oando as one of four importers that supplied methanol-blended Premium Motor Spirits into the country, we hereby state that Oando did not import and supply PMS that was adulterated or substandard.

    “The PMS supplied by Oando met Nigeria’s import specification. We are committed to working assiduously with the NNPC and industry, in order to identify the root cause(s) of the subsequent contamination of the PMS supplied.

    “We want to assure the public that Oando, as a responsible corporate citizen, would not partake in the importation, distribution, or marketing of substandard petroleum products.” fires back at NNPC, denies importing adulterated petrol

    Oando Plc. has said it did not import adulterated Premium Motor Spirit into the country, in contrast to what the Nigerian National Petroleum Company Ltd. said on Wednesday.

    The NNPC Group Managing Director, Mele Kyari, had said the national oil firm received on January 20, 2022, a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

    He said NNPC investigation revealed the presence of methanol in four PMS cargoes imported by its Direct Sale Direct Purchase suppliers namely: MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando, and Duke Oil.

    But Oando, in a statement released to the Nigerian Exchange Ltd., on Thursday, said, “Following media reports listing Oando as one of four importers that supplied methanol-blended Premium Motor Spirits into the country, we hereby state that Oando did not import and supply PMS that was adulterated or substandard.

    “The PMS supplied by Oando met Nigeria’s import specification. We are committed to working assiduously with the NNPC and industry, in order to identify the root cause(s) of the subsequent contamination of the PMS supplied.

    “We want to assure the public that Oando, as a responsible corporate citizen, would not partake in the importation, distribution, or marketing of substandard petroleum products.”

  • Exports of Crude Oil, Gas Earn NNPC N93 billion

    Exports of Crude Oil, Gas Earn NNPC N93 billion

    By Isaac Kertyo

    The Nigerian National Petroleum Corporation (NNPC) Limited reported earnings of $224.29 million (about N93.424 billion) from crude oil and gas exports in August, 2021, as compared with $191.26 million (N79.7 billion) in July, 2021.

    A breakdown of the figures captured in the August, 2021, NNPC Monthly Financial and Operations Report (MFOR) indicates that export of crude oil amounted to $7.77m, while gas and miscellaneous receipts stood at $65.26m and $151.26m respectively.

    According to highlights of the report contained in a statement by the Group General Manager, Group Public Affairs Division, Garba Deen Muhammad, on Wednesday, crude oil and gas export receipts from August 2020 to August 2021 were $1.84bn.

    The national oil firm produced 233.57 billion cubic feet (bcf) of natural gas last August translating to 7,534.67 million standard cubic feet per day (mmscfd) daily average. And in one year, 2,890.67bcf of gas was produced representing average daily production of 7,303.61mmscfd between August, 2020 and August, 2021.

    From the 208.64bcf of gas supplied in August, 2021, 131.35bcf was sold; comprising 40.22bcf local sales and 91.13bcf was exported. In one year, NNPC recorded 2,792.28bcf of gas, out of which 537.51bcf went for the local market and 1,245.93bcf for export.

    In August 2021, the firm sold 1.532 billion litres of white or refined products through its subsidiary, Petroleum Products Marketing Company (PPMC), making N203.43 billion from petrol sales, which accounted for 99 per cent of the company’s earnings.

    A total of 20.032bn litres of white product (N2.619tr) were sold in a year, out of which N2.613tr were petrol sales at 99.81%.

  • Reps blow hot, vows to probe NNPC, SON, others on bad fuel importation

    Reps blow hot, vows to probe NNPC, SON, others on bad fuel importation

    Following the havoc caused by the adulterated fuel in circulation to vehicles and other machines in Nigeria and its attendant economic challenges, the House of Representatives has vowed to investigate the matter, saying that heads will roll.

    To this end, the House through a motion by the Chief Whip, Hon. Mohammed Mongunu at Thursday plenary directed the Nigerian National Petroleum Corporation, NNPC to immediately suspend the four companies said to be involved in the purchasing and supplying of the bad fuel.

    It also asked NNPC to submit the deeds of purchase to the parliament for scrutiny.

    The House also mandated its Committee on Petroleum (Downstream) to ascertain the details of purchases of petroleum products made from January till date to ascertain whether they met with the international standards.

    The Committee will also investigate the roles played by the NNPC limited, Standard Organization of Nigeria, SON, Navy and all other regulatory agencies in the petroleum sector in the supply of the deadly product.

  • Reps Task NNPC To Suspend Companies That Imported Adulterated Fuel

    Reps Task NNPC To Suspend Companies That Imported Adulterated Fuel

    Members of the House of Representatives have called on the Nigerian National Petroleum Company (NNPC) Limited to suspend the four companies which recently imported adulterated fuel into the country.

    The lawmakers also mandated its committee on petroleum downstream to investigate the release and sale of the off-spec Premium Motor Spirit by petrol stations across the country and to bring the culprits to book.

    The issue was raised on Thursday as a motion of urgent public importance by the Chief Whip of the House, Mohammed Monguno.

    The NNPC GMD on Wednesday explained how ‘adulterated’ Premium Motor Spirit (PMS) from Belgium and listed the companies – MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando, and Duke Oil as the culprits.

    He said NNPC investigation revealed the presence of Methanol in PMS cargoes of the companies.

    Members of the House of Representatives during the plenary on Thursday also expressed concern over the effect of that adulterated petrol on vehicles and how the cost of transportation, goods, and service has increased.

    Some of the lawmakers lamented that the system is completely compromised, considering the processes which the fuel must go through before reaching the fuel stations.

    They asked that Nigerians whose vehicles and equipment were directly affected by the adulterated fuel be compensated.

    There was anxiety in Lagos, Abuja, and some parts of the country on Tuesday when long fuel queues emerged due to the scarcity of the product.

    Some fuel stations were locked while a few which were opened had long queues of motorists waiting to buy fuel.

    The Federal Government in reaction said the scarcity and panic buying of fuel was due to excess methanol in some fuel. CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Agency, Mr. Farouk Ahmed explained that methanol quantity above Nigeria’s specification was discovered in a supply chain, which was later isolated.

    The Minister of State for Petroleum, Timipre Sylva, therefore announced that there will be a major investigation to unravel the cause of the unsafe quantity of methanol in petrol imported into the country.

    Speaking concerning the crisis on Wednesday, NNPC GMD Mele Kyari explained that PMS was imported into the country by four importers from Antwerp in Belgium with quality inspectors failing to detect the high level of Methanol it contained, first at the point of import in Belgium and at the point of arrival in Nigeria.