President Buhari Receives Certificate of Incorporation For NNPC

President Buhari receives the Certificate of Incorporation of the Nigeria National Petroleum Corporation on October 8.

 

President Muhammadu Buhari has received the Certificate of Incorporation of the Nigerian National Petroleum Corporation (NNPC).

He was presented with the certificate at the State House on Friday by the Minister of State for Petroleum, Timipre Sylva, Registrar Corporate Affairs Commission, Alhaji Garba Abubakar and NNPC Group Managing Director, Mele Kyari.

Others include the Permanent Secretary, Ministry of Finance, Budget & National Planning Aliyu Ahmed; Chief of Staff to President Buhari, Ibrahim Gambari; Secretary to the Government of the Federation, Boss Mustapha; Permanent Secretary, Ministry of Petroleum Resources Dr. Nasir Sani Gwarzo, and NNPC CFO, Umar Isa Ajiya.

 

President Buhari received the NNPC delegation and government officials at the State House

 

Following the signing of the Petroleum Industry Bill into law by President Muhammadu Buhari on August 17, Mr Sylva had said that the (NNPC) will become a commercial company within six months.

He said a transitional committee was already in place to incorporate NNPC Limited.

Consequently, all shares in NNPC Limited are expected to be vested in the government at incorporation and held by the Ministry of Finance.

 

READ ALSO: President Buhari Signs Petroleum Industry Bill Into Law

Mr Sylva noted that although the new Petroleum Act has deregulated the oil sector, subsidy policies will remain in place till further notice.

Meanwhile, the minister on Thursday also said he was confident that the law will significantly boost Nigeria’s potential to achieve its oil production to four million barrels per day.

In addition, he said the passage of the PIA will also boost the nation’s oil reserves from 37 billion barrels to 40 billion barrels.

“The PIA 2021 will undoubtedly assist in harnessing Nigeria’s potential to achieve its oil production to four million barrels per day and oil reserves from 37 billion barrels to 40 billion barrels while also drawing on the country’s estimated 600 cubic ft of natural gas to provide clean and efficient energy,” Mr Sylva said at the SEPLAT Energy Summit which held in Abuja.

Buhari Appoints NNPC Board Members, Approves Incorporation Of Agency 

A photo released by the State House on August 16, 2021 showing President Muhammadu Buhari signing the Petroleum Industry Bill into law. Bayo Omoboriowo/State House
A photo released by the State House on August 16, 2021 showing President Muhammadu Buhari signing the Petroleum Industry Bill into law. Bayo Omoboriowo/State House

 

President Muhammadu Buhari has approved the appointment of the Board and Management of the Nigerian National Petroleum Company Limited with Senator Ifeanyi Ararume as Chairman.

This is even as he directed that the Nigerian National Petroleum Company Limited be incorporated, the Special Adviser to the President on Media and Publicity, Femi Adesina, announced via a statement on Sunday.

Adesina said the President appointed the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, as the Chief Executive Officer, adding that his principal acted in accordance with the Petroleum Industry Act 2021.

“This is in consonance with Section 53(1) of the Petroleum Industry Act 2021, which requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of commencement of the Act in consultation with the Minister of Finance on the nominal shares of the Company,” the statement explained.

READ ALSO: Buhari Departs Abuja To Attend 76th UN General Assembly

According to the presidential spokesman, NNPC GMD has been directed to take necessary steps to ensure that the incorporation of the oil company is consistent with the provisions of the PIA 2021.

Adesina explained that Senator Ifeanyi Ararume will serve as the Chairman of the Board, with Umar I. Ajiya being the Chief Financial Officer.

Apart from Kyari, other board members are; Dr Tajudeen Umar (North East), Mrs Lami O. Ahmed (North Central), Mallam Mohammed Lawal (North West), Senator Margaret Chuba Okadigbo (South East), Barrister Constance Harry Marshal (South South), and Chief Pius Akinyelure (South West).

NNPC Declared Profit Because Buhari Didn’t Make It An ATM, Says Adesina

A file photo of President Muhammadu Buhari.

 

The Media Adviser to President Muhammadu Buhari, Femi Adesina, has explained why the Nigerian National Petroleum Corporation (NNPC) declared profit.

He believes the corporation was able to declare a net profit after tax of N287 billion in a COVID-19-hit year because the President did not turn it into a personal purse.

Adesina stated this in a piece titled ‘How Buhari Broke The Jinx At NNPC’, posted on his Facebook page on Thursday.

“Well, it happened because perhaps for the first time in the history of the country, and of the NNPC, there is a President who is not using the place like a personal Automated Teller Machine (ATM),” he said while explaining the rationale behind the feat recorded for the first time in over four decades.

“He (Buhari) is not collecting millions upon millions of dollars by fiat, nor is he giving directives for any under-the-table deal. And that President also happens to be the Minister for Petroleum Resources.”

The presidential aide listed some of the steps taken by the management of the NNPC, attributing them to previous remarks by the NNPC Group Managing Director, Mele Kyari.

According to him, the corporation has sustained the publication of its Monthly Financial and Operations Report (MFOR) in the last one and a half years.

The NNPC, Adesina revealed, also took its transparency drive further by publishing its audited financial statement for the 2018 and 2019 financial years on its website.

On the new order of transparency in NNPC, he quoted Kyari as saying President Buhari never made any demand nor asked for anything for himself or any individual, as the minister of petroleum resources.

The President’s spokesman, however, took a swipe at those saying they would sell the corporation prior to the 2019 presidential poll.

A file photo of NNPC Group Managing Director, Mr Mele Kyari.

 

“Remember they had said they would sell NNPC before the 2019 elections, which they had thought they would win. They lost. Flat,” he said.

“And the would-be sellers and the prospective buyers were naturally not happy that the oil corporation had made a profit: under Buhari.”

Read the full article by Adesina below:

HOW BUHARI BROKE THE JINX AT NNPC

The news came like a thundering typhoon last week. For the first time in its 44 years history, the Nigerian National Petroleum Corporation (NNPC) had made a profit.

Net profit after tax stood at N287 billion in Year 2020, sequel to the completion of the statutory Annual Audit exercise. What year? 2020. Year of the Coronavirus pandemic, when most of the world, including Nigeria, was under lockdown! And here was NNPC, recording profit first time in its history. How did it happen? How can it?

Well, it happened because perhaps for the first time in the history of the country, and of the NNPC, there is a President who is not using the place like a personal automated teller machine. He’s not collecting millions upon millions of dollars by fiat, nor is he giving directives for any under-the-table deal. And that President also happens to be the Minister for Petroleum Resources.

Before we discuss how Muhammadu Buhari broke the jinx, let’s consider how naysayers responded to the good news. They first pretended it didn’t happen. The announcement came, and it didn’t resonate. They didn’t share it widely on social media, some traditional media platforms didn’t even publish it. Those who reluctantly did, made it sound more like an obituary announcement. What a country!

Remember they had said they would sell NNPC before the 2019 elections, which they had thought they would win. They lost. Flat. And the would-be sellers, and the prospective buyers, were naturally not happy that the oil corporation had made profit: under Buhari.

After first trying to downplay the news, they began to pick holes in it. The profit was only on paper and didn’t exist in real terms. It was money that should have gone into the Federation Account and was withheld by NNPC. Blah, blah, blah. The same NNPC they had wanted to sell to their friends.

I like the online interventions to the development by two friends and patriots. Simbo Olorunfemi, author and publisher, said: “To habitually doubt good news, yet never hesitant about embracing bad news, is an eloquent proof of the state of mind.”

Profound. Deep. Food for thought. All the years oil prices hit the rooftops, and NNPC recorded losses, they believed. Now, to hear that the same outfit made profit in a lockdown year, they disbelieved. Thomases! Doubters. Unless I see the mark of nails on his hands, and the spear wound on his side, I wouldn’t believe. “Then said he to Thomas! Be not faithless but believing.”

The second intervention online is by Kurtis Adigba, a lawyer and ‘one-man battalion’ for Buhari, and for Nigeria. He submitted: “Hate is not a stock or equity we must own a piece of. It pays dividends but only in death and destruction.”

Yes. They hated the news of NNPC profit because it came under a most unlikely man. How dare he? Who permitted him! Anything we don’t do, can’t be done by anybody else.

Now, how did Buhari do it? What did he do differently, that made NNPC a winning corporation? Permit me to recall this piece I did in November last year, which answers most of the questions. It was under the headline; The Essential Buhari: NNPC GMD’s Testimony:

On Friday last week, Mallam Mele Kolo Kyari, Group Managing Director of Nigeria National Petroleum Corporation (NNPC), held an engagement with energy editors across diverse media platforms. Yours truly was invited.

I currently serve as media adviser to President Muhammadu Buhari, but I remain essentially a newspaper man. There’s nothing I love better. And when done in government, the media still beckons, by the grace of God. So, I felt quite at home at the NNPC event, which was designed to update the media on current developments in the petroleum industry.

When a General Officer Commanding (GOC) moves, the brigade commanders and all other brass hats move too. At that outing with the GMD were the managing directors of subsidiaries, group general managers, and Who is Who in NNPC. The information garnered was worth its weight in gold.

NNPC is transforming from an integrated oil and gas company into an energy company, Mele Kyari disclosed. And quite contrary to the opacity of the past, operations of the energy company are as transparent as possible. His words:

“Over the past one and a half years, we have tried to keep that promise by sustaining the publication of our Monthly Financial and Operations Report (MFOR). No company, to my knowledge, does this.

“We have taken our transparency drive a notch higher by publishing our Audited Financial Statement for the 2018 and 2019 financial years on our website for all interested persons to see the significant turnaround in our performance recording 99.8% year-on-year.”

Which corporation was the GMD talking about? NNPC? Didn’t we know the place as the automated teller machine of presidents, oil ministers, any political party in power, and also the object of pillage by those who run the place? But under President Muhammadu Buhari, it is a new energy company, because a new broom was in town, and was sweeping so clean. More about that later.

Kyari said there was no information anybody wanted about NNPC operations that was not already in the public domain, adding: “I can say that we have kept our word as far as transparency and accountability are concerned. We will continue to do more until the word opacity is no longer associated with the Nigerian oil and gas industry.”

Some exploratory successes by NNPC, according to the GMD, include oil find in commercial quantity in the Upper Benue Trough, very high prospect of oil find in Kolmani River III Well, while seismic data collection is ongoing in the Bida Basin, “and we are relaunching exploration work in the Chad Basin.”

The world focuses more on gas as energy of the future, rather than petroleum, and the NNPC Boss said Nigeria was not left behind:

“We are investing aggressively in gas to take advantage of the energy transition and get Nigeria ready for the future in the face of the dwindling fortunes of petroleum liquids.

“You may be aware of the NLNG Train 7 and other gas infrastructure projects…all these are aimed at ensuring that Nigeria takes its rightful place in the emerging global energy order where natural gas is envisaged to play a pivotal role.”

The Yuletide season is often characterized by severe fuel scarcity. But the GMD assured that the energy company has solid arrangements in place to sustain fuel supply across the country., “and we are sure of maintaining zero fuel queues throughout the Christmas and New Year festive season into 2021.”

Can there be a parley between the media and NNPC at this time, and deregulation of the prices of petrol not feature? It would sure be incomplete. Hear the GMD: “Even though gasoline price is as high as N464/liter in Niger and more than double our N160/litre range in most West African countries, we would continue to ensure Nigerians benefit from lowest comparative prices in West Africa and beyond.”

He gave comparative prices of gasoline in some West African countries as of November 16, 2020, thus: Senegal, N549. Mali, N438, Chad, N368, Sierra Leone, N274, Liberia, N328, Ghana, N325, Cameroon, N446, and many others.

The GMD used the opportunity of the parley to debunk allegations that NNPC failed to remit funds that should accrue to the Federation, and that it illegally withdrew money from the NLNG Dividends Account.

“Such is not possible under the TSA (Treasury Single Account) arrangement,” he posited.

Talking further on the new order of transparency in NNPC, he said President Muhammadu Buhari, who doubles as Minister of Petroleum, “has never made any demand of us, has never asked for a single thing for himself, or for any individual.”

He added: “Anytime I see him, and we need to take a decision, he only asks; ‘is this in the interest of the ordinary Nigerian? Is it in the interest of our country?’ Once we can defend that, he gives approval. Not once has he asked for anything personal.”

In this Nigeria? A President will not give orders to NNPC to cut corners, and bring out millions upon millions of dollars, to fund private projects, or simply stash such money away? This Buhari is sure a strange one, a worthy example of probity, transparency, accountability. No wonder the Hausa man calls him Mai Gaskiya (the honest one).

He was military governor. Oil Minister for over three years. Head of State for 20 months. Chairman, Petroleum Trust Fund. Now President for six years running. Yet, he owns no petrol station, not to talk of an oil bloc. Do they make them like this anymore? I doubt.

I recall a testimony also given by Mr Babatunde Raji Fashola, former two-term Governor of Lagos State, when he was Minister of Power, Works, and Housing. He said not once, not even half of a time, did President Buhari ever send anyone to him for patronage of any kind, nor did he show a preference for anybody. And I ask again: do they make them like this anymore? I doubt.

A final recall. One night, I had visited the President at home, just on a social call. It was about 8 pm, and just two of us were in his waiting room. The other man is ex-this, ex-that in the country, having held many prominent positions. He told me: “Look at this sprawling place. Only two of us waiting to see the Big Boss. It didn’t use to be like this. This place would be like a market till about 3 am daily, as people come to cut deals and take a slice of the National cake. But President Buhari does no deal with anyone. That’s why only two of us are here.”

What a man! What testimonies all round! Surely, they don’t make them like this anymore. Or do they?

Adesina is Special Adviser to President Buhari on Media and Publicity

FG To Make Provision For Subsidy In 2022, Says NNPC Boss

A file photo of an attendant filling the fuel tank of a car.

 

The Federal Government will make provision for subsidy in 2022, Nigerian National Petroleum Corporation (NNPC) has said.

NNPC Group Managing Director, Mr Mele Kyari, disclosed this on Wednesday at a public hearing organised by the Senate Committee on Finance on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).

Although no provision was made for fuel subsidy in 2021, he informed the lawmakers that the government had begun a conversation with relevant stakeholders to exit the subsidy regime.

The NNPC chief, however, stated that the process may not be concluded anytime soon, hence the need to reintroduce subsidy in the 2022 budget.

On his part, the Chairman of the Senate Committee on Finance, Adeola Olamilekan, raised a concern about revenue generation to curb borrowing to fund the budget.

The lawmakers also want government agencies to equally focus on revenue generation as they do on spending the government’s money.

The Senate is holding a three-day public hearing on the 2022-2024 MTEF/FSP, as part of processes to prepare the 2022 budget.

MTEF sets parameters with which the budget is prepared, including the borrowing plan of the government as it proposes $57 per barrel as crude price and 1.88 million barrels daily oil production.

On Wednesday last week, the NNPC boss appeared before members of the House of Representatives Committee on Finance for a similar hearing on the 2022-2024 MTEF/FSP.

At the session, he disclosed that Nigeria would stop the importation of Premium Motor Spirit (PMS), popularly known as petrol, when the Petroleum Industry Act (PIA) comes into full effect, and when the Dangote Refinery kicks off operations.

Kyari, who also responded to questions on the Dangote Refinery, justified the Federal government’s equity share in the plant.

According to him, taking equity in Dangote Refinery was well thought out as the nation now has a venture that will ensure the production of millions of litres of petrol in the country.

NNPC Considering IPO After Declaring First Profit In 44 Years

 

The Nigerian National Petroleum Corporation (NNPC) is considering an Initial Public Offering (IPO) after declaring a profit, the first in its 44-years of operation.

“A listing would draw on the experience of Saudi Aramco, the Saudi Arabian oil giant that listed in 2019,” Bloomberg quoted Managing Director Mele Kyari as saying at a briefing in Abuja on Thursday.

“There is no date on it, but there is a possibility of doing this,” Kyari added.

A bill recently signed by President Buhari holds in it a clause that enables the NNPC offer shares to the public.

READ ALSO: Buhari Announces ₦287bn NNPC Profit After Tax For 2020

The President had on Thursday announced the declaration of a Profit after Tax (PAT) of N287billion in the year 2020, according to him, the announcement is in fulfillment of an earlier pledge by the Federal Government to publicly declare the financial position of the NNPC.

This is sequel to the completion of the statutory Annual Audit exercise for Year 2020.

“The NNPC losses were reduced from N803 Billion in year 2018 to N1.7 Billion in year 2019 and the eventual declaration of Net Profit in Year 2020 for the first time in its 44-year history,” the President declared.

He further directed the NNPC to timely publish the Audited Financial statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.

While the news is a very cheerful one, and some would expect the corporation to fly into selling shares, Kyari however, noted that obviously because you have made profit today doesn’t mean you are ready for IPO.”

He added that it is a very long and highly tedious process.

Kaduna Govt, NNPC Sign MoU on Gas Utilisation

Kaduna State Governor, Nasir El-Rufai and the NNPC boss, Mele Kyari, sign a Memorandum of Understanding at the Government House on August 26, 2021.

 

The Kaduna State Government has signed a Memorandum of Understanding with the Nigerian National Petroleum Corporation (NNPC) on gas expansion and utilisation.

This is part of efforts by the government to bring nearer the availability of a significant additional source of energy to businesses and residents of the state.

The signing was done at the Executive Council Chambers of the Kaduna State Government House in the state capital.

Speaking after the signing, Governor Nasir El-Rufai said the project is a major step to boost investment, revive moribund industries, create jobs and expand power supply in the state.

“The Kaduna State Government is delighted to execute this MoU on gas utilisation and expansion with the NNPC and the Gas Aggregation Company of Nigeria,” he said.

“This brings nearer the availability of a significant additional source of energy to businesses and residents of Kaduna State.

READ ALSO: NNPC Considering IPO After Declaring First Profit In 44 Years

“We wholeheartedly welcome this project. Gas provides a cost-effective option for powering factories, homes and vehicles. To the Kaduna State Government, this project is a welcome boost to our investment and job creation strategy.”

On his part, the Group Managing Director of the NNPC, Mele Kyari said the focus of the national oil giant is to deliver gas into the domestic market.

“Our focus is to deliver gas into the domestic market. We know that this is a game-changer for our country and particularly more so for Kaduna State,” he said.

“We know that very many industries that were prominent in this country that were situated in Kaduna have gone down. We understand very clearly that many of these industries went down because of clear supply of energy.”

The NNPC boss explained that there is no better way of making cheap and cleaner energy than delivering gas into industries.

Buhari Announces ₦287bn NNPC Profit After Tax For 2020

A photo released by the State House on August 16, 2021 showing President Muhammadu Buhari signing the Petroleum Industry Bill into law. Bayo Omoboriowo/State House
President Muhammadu Buhari signing the Petroleum Industry Bill into law. (File Photo)

 

President Muhammadu Buhari has announced the declaration of a Profit after Tax (PAT) of N287billion in the year 2020 by the Nigerian National Petroleum Corporation (NNPC).

According to a communique by his special media aide, Femi Adesina, the President’s announcement is in fulfillment of an earlier pledge by the Federal Government to publicly declare the financial position of the NNPC.

Adesina’s statement notes that Buhari has disclosed a Net Profit, making it the first time in the 44-year history of the establishment.

According to the President, who doubles as Minister for Petroleum Resources, “I am pleased to announce the declaration of Profit after Tax of Two Hundred and Eighty-Seven Billion Naira (N287 Billion) in Year 2020 by the Nigerian National Petroleum Corporation.

This is sequel to the completion of the statutory Annual Audit exercise for Year 2020.

Read Also: Nigeria’s GDP Records 5% Growth For Second Quarter

“The NNPC losses were reduced from N803 Billion in year 2018 to N1.7 Billion in year 2019 and the eventual declaration of Net Profit in Year 2020 for the first time in its 44-year history.

“This development is consistent with this administration’s commitment to ensuring prudent management of resources and maximization of value for the Nigerian people from their natural resources.

“I have further directed the Nigerian National Petroleum Corporation to timely publish the Audited Financial statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.”

President Buhari congratulated the Board, Management and Staff of the Corporation, adding that he looks forward to greater value creation for the Nigerian people.

When Nigeria Will Stop Importing Petrol – NNPC Boss

A file photo of an attendant filling the fuel tank of a car.

 

Nigeria will stop the importation of Premium Motor Spirit (PMS), popularly known as petrol, when the Petroleum Industry Act (PIA) comes into full effect, and when the Dangote Refinery kicks off operations.

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, disclosed this on Wednesday in Abuja.

He made the disclosure when he appeared before members of the House of Representatives Committee on Finance during a hearing on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).

READ ALSO: Sylva Inaugurates Committee To Implement Petroleum Industry Act

Representatives of the Fiscal Responsibility Commission (FRC) present at the hearing informed the lawmakers that the NNPC has been declaring losses since 2018, but a substantial surplus in 2019.

While responding to questions on the Dangote Refinery, the NNPC chief justified the Federal government’s equity share in the plant.

He explained that taking equity in Dangote Refinery was well thought out, saying the country now has a venture that would ensure the production of millions of litres of petrol in the country.

“Our decision to take equity in the Dangote Refinery was a very calculated and conscious decision,” Kyari said. “Today, we import 100 per cent of our petroleum products into this country.

“You now have a venture that will produce close to 50 million litres of petroleum product in this country where energy is an issue in every country, including the United States of America; no country will allow any venture of this nature to exist without having a seat on the board of the company.”

 

He, however, informed the lawmakers that the President of Dangote Group, Aliko Dangote, was not keen on the part of the agreement which stated that Dangote Refinery must buy Nigeria’s crude oil.

The NNPC chief disclosed that the corporation borrowed funds from the Afreximbank to pay for the stake in Dangote Refinery.

Allaying fears that this would affect the nation’s assets, he stated that the government has not abandoned the country’s refineries and was in the process of rehabilitating them.

Kyari also briefed the lawmakers on the issue of smuggling, as well as the committee set up and the recommendations that the NNPC should set up petrol stations in neighbouring countries to address the problem.

He believes this is not the solution, as no smuggler will buy at above Nigeria’s official price.

The NNPC chief said the corporation was engaging with the government of the Niger Republic on the establishment of fuel stations, but he was mindful that this may be a bad business and ultimately not a solution to the problem of smuggling petroleum products.

Responding to a question about trucks smuggling fuel out of the country daily, he insisted that everyone on the value chain had been compromised.

PIA: We Discussed With Labour Extensively, No Job Will Be Lost – Sylva

 

The Minister of State for Petroleum Resources, Mr Timipre Sylva has assured that no job will be lost in the nation’s petroleum sector following the signing of the Petroleum Industry Bill into law.

President Muhammadu Buhari had on Monday signed the bill, thus providing a legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters.

Although there were fears in some quarters over the fate of workers in the petroleum sector, the minister says the move will instead create more jobs.

“We have already made provisions in the law to ensure that no job is lost in the oil industry as a result of the PIA,” the Minister said during an interview on Channels Television’s Politics Today on Wednesday.

“So, no job will be lost as a result of the Petroleum Industry Act. All jobs in the petroleum industry will be intact.

“That was already taken into account, we discussed with labour extensively in the process of drafting the bill.”

READ ALSO: Buhari Approves Committee To Implement Petroleum Industry Act Immediately

When asked about the benefits for the oil workers, the Minister said he believes the workers have more to gain since the government does not pay as much as the private sector.

The Minister of State for Petroleum Resources, Timipre Sylva addressed reporters in Abuja on August 17, 2021. Sodiq Adelakun/Channels Television
The Minister of State for Petroleum Resources, Timipre Sylva addressed reporters in Abuja on August 17, 2021. Sodiq Adelakun/Channels Television

 

While noting that the commercialisation of the Nigerian National Petroleum Corporation (NNPC) will be beneficial to the workers, Sylva explained that the move would not create any problem at all.

The Minister also reacted to funds accruable to the federation account by the national firm, noting that money will still be disbursed to the national account.

He, however, explained that NNPC will not be in charge of the federation crude, explaining that the Offstream Regulatory Commission will sell the crude and remit the money to the nation’s account.

Two days after the bill was signed, the President approved a committee to immediately commence the implementation of the Petroleum Industry Act (PIA).

The steering committee, which has 12 months for the assignment, is headed by the former Bayelsa State leader.

NNPC Limited To Kick Off In Six Months – Sylva

 

The Nigerian National Petroleum Corporation (NNPC) will become a commercial company within six months, the Minister of State for Petroleum Resources, Timipre Sylva said on Tuesday.

This follows the signing of the Petroleum Industry Bill into law by President Muhammadu Buhari on Monday.

Mr Sylva, who was speaking at a press conference in Abuja, said a transitional committee is already in place to incorporate NNPC Limited.

READ ALSO: President Buhari Signs Petroleum Industry Bill Into Law

All shares in NNPC Limited are expected to be vested in the government at incorporation and held by the Ministry of Finance.

Mr Sylva noted that although the new petroleum act has deregulated the oil sector, subsidy policies will remain in place till further notice.

He said an implementation framework for actual deregulation will be established to mitigate the impact on ordinary Nigerians.

NNPC Records Petroleum Product Sale Of ₦234.63bn In March

 

The Nigerian National Petroleum Corporation (NNPC) has announced that its downstream subsidiary, the Petroleum Products Marketing Company (PPMC), recorded ₦234.63 billion revenue from the sale of white products in March representing a 24.7% increase from the ₦188.15billion sales recorded in February.

This was contained in the March 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR), according to a statement by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru.

The report indicated that total revenues generated from the sales of white products for the period of March 2020 to March 2021 stood at ₦2.129trillion, where petrol contributed about 99.24% of the total sales with a value of ₦2.113trllion.

In terms of volume, the above value translates to 1.75billion litres of white products sold and distributed by PPMC in the month of March 2021 compared to 1.4billion litres in the month of February 2021.

This volume is made up of 1.782billion litres of Premium Motor Spirit (PMS) and 0.45million litres of Automotive Gas Oil (AGO).

Total sale of white products for the period of March 2020 to March 2021 stood at 17.374billion litres and PMS accounted for 17.265billion litres or 99.37%.

The NNPC continues to diligently monitor the daily stock of PMS to achieve uninterrupted supply, effective distribution and zero fuel queue across Nigeria.

In the Gas Sector, a total of 222.74 billion cubic feet (BCF) of natural gas was produced in the month March 2021 translating to an average daily production of 7,183.33million standard cubic feet per day (MMSCFD).

For the period of March 2020 to March 2021, a total of 2,911.62bcf of gas was produced representing an average daily production of 7,409.60mmscfd during the period.

Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 63.23%, 19.78% and 63.99% respectively to the total national gas production.

In terms of natural gas off-take, commercialization and utilization, out of the 210.55bcf supplied in March 2021, a total of 138.38bcf was commercialized, consisting of 45.42bcf and 92.96bcf for the domestic and export market respectively.

This translates to a total supply of 1,465.42mmscfd of gas to the domestic market and 2,998.26mmscfd of gas supplied to the export market for the month.

This implies that 63.18% of the average daily gas produced was commercialized while the balance of 36.82% was re-injected, used as upstream fuel gas or flared.

Gas flare rate was 9.50% for the month under review (i.e. 671.13mmscfd) compared to the average gas flare rate of 7.25% (i.e. 532.37mmscfd) for the period of March 2020 to March 2021.

On domestic gas supply to the power sector, a total of 844mmscfd was delivered to gas-fired power plants in the month of March 2021 to generate about 3,530mega watts (MW) compared with February 2021 where 825mmscfd was supplied to generate 3,580mw.

The report also informed that the Corporation recorded 70 vandalized points across its pipeline network in the period under review, representing 29.63% increase from the 54 points recorded in the previous month.

While the Port Harcourt area accounted for 63% of the vandalized points, the Mosimi area accounted for 21% and the Gombe area accounted for the remaining 16%.

NNPC is, however, working in collaboration with the local communities and other stakeholders to effectively monitor the pipelines with a view to reducing and eventually eliminating the menace of pipeline vandalism.

The March 2021 MFOR is the 68th edition of the report, it is published monthly to keep the Nigerian public up to date with the operations of the Corporation in line with the management’s guiding philosophy of Transparency, Accountability and Performance Excellence (TAPE).

PIB: Nigerian Governors Fault Proposed Ownership Structure For NNPC

The Nigeria Governors Forum wants the Petroleum Industry Bill amended to change the ownership structure proposed for the NNPC.

 

 

Nigerian governors have faulted the ownership structure of the Nigeria National Petroleum Corporation proposed in the Petroleum Industry Bill (PIB).

They made their position known in a communique issued at the end of the 32nd Teleconference meeting of the Nigeria Governors’ Forum, which was held on Wednesday.

“The Forum is in full support of the unbundling and commercialisation of the Nigeria National Petroleum Corporation (NNPC) but concerned with the proposed ownership structure of the NNPC which places ownership on the Federal Government,” the communique read in part.

This proposal, the governors argued ignores the fact that the NNPC is owned by the three tiers of government.

Rather than place the ownership of the NNPC on the Federal Government, the Governors’ forum recommended that the new entity (NNPC Limited) proposed in the PIB should be owned by a vehicle that holds the interest of the three tiers of government.

“For now, the institution that is positioned to carry out this mandate is the Nigeria Sovereign Investment Authority (NSIA),” the NGF said.

They plan to take up the requested amendment to the PIB as well as the proposed three percent share of oil revenue to host communities and 30 percent share of profit for the exploration of oil and gas in the basins with the relevant channels including the National Assembly and the National Economic Council (NEC) subsequently.

Apart from the PIB, the NGF also discussed several other issues including the third wave of the COVID-19 pandemic, financial autonomy for state judiciary and legislature.

Read the full communique below:

COMMUNIQUE ISSUED AT THE END OF THE 32ND TELECONFERENCE MEETING (9TH IN 2021) OF THE NIGERIA GOVERNORS’ FORUM HELD ON WEDNESDAY, 14TH JULY 2021

We, members of the Nigeria Governors’ Forum (NGF), at our meeting held today, deliberated on issues of national importance and resolved as follows:

1. Executive Order #10 and Financial Autonomy for the State Legislature and Judiciary
The Forum has approved a common template for the implementation of the Memorandum of Action signed with the Judiciary Staff Union of Nigeria (JUSUN) and the Parliamentary Staff Association of Nigeria (PASUN) on the implementation of financial autonomy for the State legislature and judiciary. The template was developed following a meeting of the State Attorneys General and Commissioners of Finance which held on the 25th of June 2021 at the directive of the Forum.

2. Nigerian Postal Service Bill, 2021 & Stamp Duties Collection
The Forum expressed concern with certain proposed amendments to the Principal Stamp Duties Act by the Nigerian Senate which seeks to remove the powers to administer and collect stamp duties from the relevant tax authorities (Federal Inland Revenue Service or State Internal Revenue Service, depending on the nature of the transaction) to the Nigeria Postal Service. The provisions of Section 163 of the 1999 Constitution requires that Stamp Duties on transactions between a company and an individual should be paid to the FIRS and returned to the State of derivation. The Forum resolved to engage with the National
Assembly on the matter.

3. The Petroleum Industry Bill (PIB)
The Forum is in full support of the unbundling and commercialization of the Nigeria National Petroleum Corporation (NNPC) but concerned with the proposed ownership structure of the NNPC which places ownership on the Federal Government. The NGF recommends that given that the corporation is owned by the three tiers of government, the new incorporated entity (NNPC Limited) should be owned by a vehicle that holds the interest of the three tiers of government – for now, the institution that is positioned to carry out this mandate is the Nigeria Sovereign Investment Authority (NSIA). This amendment as well as the proposed 3% share of oil revenue to host communities and 30% share of profit for the exploration of oil and gas in the basins will be responded to at relevant channels including the National Assembly and the National Economic Council (NEC).

4. Sale of Niger Delta Power Holding Company (NDPHC) Assets
The Forum will take a position on the planned privatisation of assets of the Niger Delta Power Holding Company (NDPHC) which were listed by the Bureau for Public Enterprise (BPE) without due consultation with State governments who are shareholders of the company. NDPHC is incorporated under the
Companies and Allied Matters Act as a private limited liability company with shareholding fully subscribed to by the Federal, State and Local Governments with a mandate to manage National Integrated Power Projects (NIPP) in the country.

5. Launch of the NGF Peace and Inclusive Security Initiative
The Forum put its weight behind the launch of its Peace and Inclusive Security Initiative (PISI) set up to tackle insecurity, conflicts and violence in the country. The launch of PISI which took place on 8th July 2021 heralded an important milestone for NGF as it seeks to build a more inclusive and collaborative platform to drive an urgent country-wide response to security challenges in the country.

UPDATES & PRESENTATIONS
6. The Chairman of the Forum, Governor Kayode Fayemi informed members of the inauguration of the National Steering Committee (NSC) of the National Poverty Reduction and Growth Strategy (NPRGS) chaired by Vice President Yemi Osinbajo with a mandate to lift 100 million Nigerians out of poverty in ten years. State Governors have been enjoined to nominate focal persons who will consolidate policy strategies put in place by State governments to end poverty in the country. The focal persons will be inducted into a technical working group chaired by the Governor of Nasarawa State, H.E Abdullahi Sule and co-chaired by the Honourable Minister of State for Finance, Budget and National Planning, Prince Clem Ikanade Agba.

7. The Forum received an update from the Governor of Lagos State H.E Babajide Sanwo-Olu on the recent rise in confirmed COVID-19 cases and call for consensual action to prevent a third wave in the country. Following the update, the Forum called on all State Governors to revive their COVID
protocols and collaborate with the Nigeria Centre for Disease Control (NCDC) to take appropriate and immediate actions to flatten the transmission curve. The Forum will interface with the Presidential Steering Committee on COVID-19 to accelerate processes required to fast track the delivery of additional vaccines for the country.

8. An update on the States Fiscal Transparency, Accountability, and Sustainability – Program-for-Results (PforR) was made by Mr. Olanrewaju Ajogbasile, the NGF SFTAS Programme Manager, who informed State Governors of the ongoing verification exercise for the SFTAS disbursement linked indicators and debt reconciliation exercise carried out with the Federal Ministry of Finance,
Budget and National Planning (FMBNP), the Central Bank of Nigeria (CBN) and the Debt Management Office (DMO). The Forum commended the SFTAS programme office and welcomed the reconciliation exercise which will be seen through by the State Commissioners of Finance.

9. Following an update on the Nigeria COVID-19 Action Recovery and Economic Stimulus – Programme for Results (Nigeria CARES), from Mrs. Firo Elhassan, NGF Programme Manager, the Forum resolved to interface with the Federal Ministry of Finance, Budget and National Planning (FMBNP) and the Federal Ministry of Justice (MoJ) to ensure speedy approval and commencement of the programme in line with the 2021 budgets of States.

10. Sequel to a presentation by Rt. Hon. Princess Miriam Onuoha, Chairman, House of Representatives, Committee on Disabilities on the adoption of the Discrimination against Person with Disabilities (Prohibition) Act (2018), the Forum committed to actively support, through the NGF Secretariat, the domestication of the disability law in States where it has not already been passed. Since 2018, at least twelve (12) States have passed disability laws, including Ekiti, Lagos, Kwara, Kogi, Plateau, Jigawa, Ondo, Bauchi, Anambra, Niger and River State.

11. The Forum received a presentation on the Roadmap for Successful Digital Transformation Execution in States from the Chief Executive Officer of Suburban Fiber Company, Mr Bruce Ayonote. The proposal which sought to build both hard and soft digital infrastructure for State governments was welcomed by State Governors. The Forum mandated its Secretariat to facilitate the planning and partnership process with interested State governments.

12. Lastly, the Forum received a report on the Diversification and Non-oil Export Opportunities for States Post-COVID-19 from the Policy Development Facility (PDF) Bridge Programme. The Forum welcomed the study and noted that findings of the report will help strengthen the diversification agenda of States.

Governor Kayode Fayemi
Chairman, Nigeria Governors’ Forum
14th July, 2021