Posts Tagged ‘nnpc’

Fuel scarcity update: Petrol landing cost now N180 per litre – Fed Govt

Image result for Dr Ibe KachikwuFresh news has emerged on the update of fuel crisis and subsidy.

It has been gathered that the landing cost of Premium Motor Spirit (PMS), also known as petrol, is N35 higher than the pump price of N145 per litre, the federal government said on Tuesday.
The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said the rise in global crude oil prices after the 2016 hike in petrol price brought back subsidy.
He described fuel subsidy as an emotive issue, recalling the experience of 2016, when the government increased petrol price from N86.5 to N145 after months of severe scarcity.

“You have very positive argument that says, ‘Why is this happening; let’s get it out.’ Once you do it, the streets get flooded by protesters. You have five or six or 10 days of no activity in the country. So, any attempt to remove the subsidy must be very well-managed,” the minister said on the NTA Good Morning Nigeria programme
He noted that in 2016, the government wrote to the Nigeria Labour Congress (NLC) and all the trade unions, adding that meetings were held with the security apparatus.

Kachikwu said, “Even when there was a consensus on how we were going to do it, we still had an issue at the very tail end of the moment; NUPENG and PENGASSAN supported but, of course, the other members of the trade unions pulled out.
“Eventually, thankfully, Nigerians saw through what we were trying to do and let it happen. And thank God that happened at the time because when you look at the gap today, the landing cost is about N180 per litre and sale price is N145. Imagine if it (pump price) was N90-something; we will literally be a bankrupt country.”

The minister added, “The point I am making is that anything you are going to do on subsidy requires a very efficient management of information – getting everybody who are stakeholders to tie into it.

“Should we deal with the removal of subsidy? I was gung-ho when I assumed this position that there was no way I was going to tolerate a subsidy regime at the time in 2015 of about N1.2tn-N1.3tn. There was just no way; we didn’t have the capacity to continue to pay.”

“So, I convinced the President that this needed to happen; thankfully, he listened, he agreed and we did. Now, we then had over-recovery period for quite a while and then we went into this upswing in prices that has now taken us again into under-recovery.”

The minister noted that the government had not paid marketers all the outstanding subsidy arrears.

He said, “I think, first and foremost, we need to find a way of fixing refineries quickly, whether it is government-funded or whatever – my preference is always private sector funding.

“I think the labour union has never really said they would not be supportive of an attempt to take away this subsidy element; the union has always said, ‘If you are doing it, show me what you [will] do with those new receipts of income. Two, what do you do with the refineries?’ Therefore, we need to address those to even get their buy-in.

“Secondly, we need to segregate between those who need subsidy and those who don’t; you will find that 80 per cent or more of those who get subsidy today do not need it. There is nothing necessarily bad with some element of subsidy if it is well-managed and is very little, and if the private sector can take it away completely; that is fantastic. That is the most ideal situation.”

The Nigerian National Petroleum Corporation, which has been the sole importer of petrol into the country for about two years after private oil marketers withdrew from the importation of the product, bears the burden of subsidising the product.

As of March 20, 2018, when the international benchmark price for oil (Brent) was around $66 per barrel, the expected open market price of petrol, according to data obtained from the Petroleum Products Pricing Regulatory Agency, was around N189 per litre. The agency has not released any data since then.

The Group Managing Director, NNPC, on December 23, 2017, said the Federal Government had been resisting intense pressure to increase the pump price of petrol, noting that the landing cost of the commodity was N171.4 per litre as of December 22, 2017 when oil price was around $64 per barrel, Punch added.

 

NNPC Appointment: Ohanaeze set for showdown with Buhari

The apex socio political Organization of Ndigbo, the Ohanaeze has taken a swipe at President Muhammadu Buhari following the announcement last week by the Nigerian National Petroleum Corporation, NNPC of major restructuring in its operations with the appointment and redeployment of 55 key executives in its refineries and services subsidiaries.   Against the marginalization of people from the South East in the major shakeup, the the Ohanaeze has urged President Buhari to as a matter of urgency, revisit the reorganization process in the interest of peace, unity and good governance According to Ohanaeze, this is exactly why youths in the region are no longer comfortable being called Nigerians. The Ohaneze’s position was part of a statement signed by its President General, Chief John Nwodo in Abuja on Sunday. Nwodo said, “Ohaneze is appalled at the consistent and unrepentant disposition of disdain for the South-East by Buhari administration as copiously displayed in the recent reorganisation at the NNPC. “Ohaneze had thought that after the President’s declaration in a broadcast recently that Nigeria unity had been settled and not negotiable, that he would take all necessary actions in his governance to achieve it, but the recent NNPC shake-up has not shown that the administration is walking its talk. “Buhari administration, has shown in the new managers just announced tilting clearly in favour of the North, with the South-East totally ignored, as has always been the case since Buhari administration came to office. “This brazen disregard, marginalization and non-compliance with the Federal character provisions in our constitution are the causes of lack of confidence which our youths have in our present governance structure. “As long as President Buhari continues to live out his speech abroad that his government will favour those who voted 97 per cent for him against those who voted 5 % for him so long will the dissatisfaction and unrest in our polity subsist.”

How Jonathan’s kinsman in trouble over $289m special votes for NIA

It has been reported that a former boss of the National Petroleum Investment Management Services (NAPIMS) may have  some questions to answer from the Presidential Investigative Panel on   the $289 million allegedly withdrawn from the company’s accounts ostensibly for national security.

NAPIMS is a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

The investigative panel, headed by Vice President Yemi Osinbajo, is currently probing  the $43.4million haul made recently from the Orborne Towers,  Ikoyi, Lagos, and the  N200m curious contract awarded by the Presidential Initiative on the North-East.

The erstwhile NAPIMS boss, said to be a kinsman of ex-President Goodluck Jonathan, was in charge of the company when the huge withdrawal was made during the last political dispensation.

The Ikoyi cash is believed to be part of the leftover of the NAPIMS funds.

But he won’t be the only to face the panel.

The committee said yesterday that it will invite “all relevant officials and private individuals who may be connected to both cases.”

For now, it is unlikely that Dr. Jonathan will be summoned by the committee, contrary to widespread speculations.

Media reports had suggested that Jonathan gave the go ahead for the release of the $289 million to the NIA and other security agencies from the account of NAPIMS.

It was also gathered yesterday that there will be no soft handling of anyone implicated in the $43.4million haul and the  N200m contract award.

Two top government officials – Secretary to the Government of the Federation, Babachir Lawal and the Director-General of the National Intelligence Agency (NIA), Ambassador Ayo Oke – were sent home last Wednesday over their suspected involvement in the matters.

President Muhammadu Buhari is understood to have told the investigative panel not to spare the rod or give soft landing to anyone found wanting.

Buhari demanded a thorough job no matter whose ox is gored, sources told The Nation.

The panel announced yesterday that its assignment will take place behind closed doors to avoid speculations and distractions.

Sources told The Nation that Buhari’s instruction to the Osinbajo Committee is straight forward.

“The President directed that there should be no cover up for anybody no matter how highly placed. He said there will be no soft landing for the suspended officials or any official or anyone closer to him who is involved,” a highly placed source said.

“And Buhari demonstrated this on Wednesday when the affected officials were suspended. Before the announcement was made, SGF Babachir Lawal earlier wanted to see him but he sent a message to him to go and see the Vice President.

“As a matter of fact, he had expected that one of the two suspended officials would have resigned given overwhelming public opprobrium on the allegations against him but he refused. “The President then decided that he cannot be bearing the burden of anyone.

“So, this committee is not the Kangaroo type or a soft landing panel to save anybody.”

The committee yesterday shed light on its mode of operation.

It said its sessions will be closed to the public to avoid speculations and distractions.

The committee made the clarifications through a statement by the Senior Special Assistant on Media & Publicity to the President (Office of the Vice President), Mr. Laolu Akande.

It said: “The Presidential Committee ordered earlier this week by President Muhammadu Buhari to probe certain allegations against the Secretary to the Government of the Federation, Engineer Babachir Lawal, and the Director-General of the National Intelligence Agency, NIA, Mr. Ayo Oke has commenced its work in earnest.

“President Buhari on Wednesday established the three-man panel headed by Vice President Yemi Osinbajo, SAN, with Attorney-General & Justice Minister, Abubakar Malami and National Security Adviser, Rtd Major General Babagana Monguno as members, to investigate allegations of legal and due process violations made against the Secretary to the Government of the Federation, SGF and the discovery of large amounts of foreign and local currencies by the Economic and Financial Crimes Commission(EFCC) in a residential apartment in Ikoyi, Lagos.

“In the discharge of its work, the panel is expected to invite all relevant officials and private individuals who may be connected to both cases.

“It will also obtain and scrutinize documents that may throw some light on the issues raised in both cases. All its proceedings will however be in closed sessions to avoid speculations, allow for full disclosure and enhance the pace of proceedings.

“The panel which is expected to submit its report to the President at the expiration of the 14-day deadline, will conduct its work with utmost diligence and without fear or favour.”

Investigation confirmed last night that ex-President Jonathan might not be summoned by the Osinbajo Panel.

On the alleged huge withdrawal of funds from the account of NAPIMS  termed Special Intervention Funds for the NIA,the source said: “”Since Jonathan’s kinsman was in charge of NAPIMS, it was convenient for the former administration to withdraw some funds from the account of the agency.

“Apart from NIA, some security agencies and offices benefitted from the Special Intervention Funds.

“The Presidential Investigative Committee may interact with a former Group General Manager and some select officials of NAPIMS who disbursed the Special Intervention Funds.”

A separate source said:”There are so many documents, EFCC investigative report, Senate Committee report and public officers involved in some of the projects or activities and funds being probed.

“The committee is unlikely to summon ex-President Jonathan. He is actually not on our radar. Let each public official carry his or her own cross.”

The three-man committee is expected to:

  • enquire into the circumstances in which the NIA came into possession of the funds,
  • how and by whose or which authority the funds were made available to the NIA,
  • and to establish whether or not there has been a breach of the law or security procedure in obtaining custody and use of the funds.”

Trending: Ifeanyi Ubah remains at DSS office over N11bn allegation

Related imageAccording to Punch, Department of State Services, on Thursday, in Abuja, interrogated the Group Managing Director of Capital Oil and Gas Limited, Mr. Ifeanyi Ubah, over the claim by the Nigerian National Petroleum Corporation that it had N11bn worth of Premium Motor Spirit stored in Ubah’s firm’s facility.

The NNPC had written both the DSS and the Economic and Financial Crimes Commission, asking them to help it to recover the said amount.

It said it stored the PMS with the amount in the facilities of Capital Oil and Gas Limited.

The NNPC alleged that the product was stored in the facility under a special arrangement, which it claimed was breached by the former governorship candidate of the Labour Party in Anambra State.

The corporation claimed that Ubah sold the product without its permission.

Our correspondent gathered that some officials of the corporation were also at the meeting where Ubah was questioned at the headquarters of the DSS in Asokoro, Abuja.

Security sources said Ubah was earlier invited to the DSS office on Monday where he was also asked to provide answers to the issues raised by the NNPC.

The source added, “We invited him based on the petition by the NNPC on the issue of selling of fuel and all that.

“He was with us on Monday and was also here today (Thursday) and we have been able to get to some level on the issue, but we are continuing with our investigations.

“When he came on Monday, we discussed what happened and he said there were documents to back up his own claim, because he told us that the corporation is also owing him.

“We therefore asked him to return on Thursday with the documents to back up his claim, which he did.

“We are continuing with our investigations, but we have asked all parties to go home because it was not only Ubah that was questioned or was here.”

The NNPC had stated in a statement by its Group General Manager, Public Affairs Division, Mr. Ndu Ughamadu, in Abuja some days ago that the politician’s company failed to remit the money as agreed.

Ughamadu, in the said statement, explained that the corporation’s Chief Operating Officer, Downstream, Mr. Henry Ikem-Obih, gave details of how the alleged infraction was uncovered by the NNPC earlier in the year.

Ikem-Obih had said, “We instructed the Nigerian Products Marketing Company  a subsidiary of the NNPC, to send additional trucks to those locations to move products for distribution aimed at meeting a supply shortfall we discovered in the market, but after days of not being able to access the terminals, we had to take a decision as NNPC management to invite auditors and inspectors to go and do a physical check on the inventories.”

Meanwhile, Ubah confirmed being invited by the DSS with respect to debts owed the NNPC and a legal issue with the Asset Management Corporation of Nigeria.

He said he had written to the Senate and the Economic and Financial Crimes Commission on the matter prior to the invitation by the DSS.

Ubah, in a chat, said the DSS was helping to resolve the issue, which had added had been blown out of proportion in some quarters.

He wants to salvage the situation and save the jobs of over 2,000 people. I am currently reconciling my account with all the parties concerned. I’m owing the NNPC and the NNPC is also owing me. My over three years old case with AMCON is also being looked into.”

But it would be recalled that he had denied this report that he was arrested by DSS when the news broke.

Ubah’s Chief of Staff, Mr. Chiedozie Udogu, said his principal had been going to the DSS since Monday.

“Yes, it was true that he was at the DSS office, but he was not detained. He went there for the reconciliation of account with the NNPC.

“The DSS is mediating in the trade dispute with the two parties. Therefore, it is nothing to be worried about,” he stated.

Coruption:Court orders forfeiture of Yakubu’s $9.8m, £74,000

A Federal High Court sitting in Kano presided over by Justice Zainab B. Abubakar, Tuesday, has ordered the forfeiture of the sum of $9,772,000 (Nine Million, Seven Hundred and Seventy Two Thousand United States Dollars) and £74,000 (Seventy Four Thousand Pound Sterling) recovered from a former Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Mr. Andrew Yakubu to the Federal Government. Yakubu, ex-NNPC GMD hides $9.8m loot in Kaduna slum According to a press release signed by Wilson Uwujaren EFCC Head Media & Publicity the order was sequel to an ex parte application by the EFCC seeking an interim forfeiture of the recovered money to the Federal Government. The ex parte application was moved by Salihu Sani, counsel for the applicant. In her ruling, Justice Zainab held “That the sum of $9,772,000 (Nine Million, Seven Hundred and Seventy Two Thousand United States Dollars) and £74,000 (Seventy Four Thousand Pound Sterling) which are now in the custody of the applicant (EFCC) are in the interim forfeited to the Federal Government of Nigeria.” It would be recalled that, on the 3rd day of February, 2017, operatives of the Commission had stormed a building belonging to the former NNPC boss and recovered a staggering sum of $9,772,000 (Nine Million, Seven Hundred and Seventy Two Thousand United States Dollars) and £74,000 (Seventy Four Thousand Pound Sterling) stashed in a huge fire proof safe. On February 8, 2017, Yakubu reported to the Commission’s Kano Zonal Office where he admitted being the owner of both the house and the money recovered. Yakubu is still in custody assisting the investigation. 14th February, 2017

NNPC, NPDC & Chevron are in trouble over Niger Delta Avengers blowing up major crude oil trunk lines and Oil wells belonging to these companies

In a series of strikes starting from Friday 1st July to today, 3rd of July, Militant group – Niger Delta Avengers revealed via their Twitter handle that their strike team have blown up major crude oil trunk lines and Oil wells belonging to Nigerian National Petroleum Corporation, Nigerian Petroleum Development Company and Chevron.
At 9:15pm on Friday, the Avengers blew up Nigerian National Petroleum Corporation (NNPC) crude oil trunk line to Warri Refinery. At 11:26pm on Saturday, they blew up two NPDC major crude trunk lines close to Batan flowstation in Delta state, while at about 1:15am today, the Avengers also destroyed two major Chevron Oil wells (Well 7 and Well 8) close to Abiteye flow station in Delta state.

Fuel Scarcity: Don’t Expect It To End Soon, I’m Not A Magician – Kachikwu

Minister of State for Petroleum, Mr. Ibe Kachikwu, has dashed the hopes Nigerians expecting Immediate solution to the on going fuel scarcity facing the country at the moment. Kachikwu stated that the current queues at gas stations would persist till late May. The minister, who doubles as Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, added that he was not a magician to make the queues disappear overnight. According to him, it is even a “magic” that the stations are still getting volume of products they dispense to the public, judging from the prevailing circumstances at NNPC. The minister also revealed that NNPC’s import rates had moved form 50 per cent to all-time rate of 100 percent, saying the 445,000 barrels allocated to crude swap now service 50 to 55 per cent importation of refined product. But giving a glimmer of hope on how to achieve lasting solution to the product scarcity, Kachikwu said government was working to beef up the reserves. He stated that when the refineries come on full stream, locally refined products would be left unsold in the reservoir to boost supply and availability of the products. The minister was fielded questions from State House correspondents after leading officials of Nigeria Union of Petroleum and Natural Gas, NUPENG, and Petroleum and Natural Gas  Senior Staff Association of Nigeria, PENGASSAN, to a meeting with President Muhammadu Buhari at the Presidential Villa, Abuja,yesterday. I’m not magician —Kachikwu He said:  “One of the trainings I did not receive is that of a magician but I am working very hard to ensure some of these issues go away. And let’s be honest, for the five, six months, we have been here, NNPC has moved from a 50 percent importer of products to basically a 100 percent importer. And the 445,000 barrels that were allocated was to cover between 50 and 55 percent importation. “So, it is quite frankly sheer magic that we even have some amount of products at the stations. We are looking to see how to get foreign exchange input. The President and I discussed extensively on how to get more crude directed at importation. “His excellency will rather have less crude but have individuals in the society suffer less with inconveniences than have more crude and have them continue to suffer. “So, we are going to put a new model to enable us increase the pace and actually get majors as part of the crew of those to bring in more products, so that the NNPC will sort of go back on the capacity of what it used to do and the majors will take over the balance of importation. “I think if we do that, although I don’t want to put a time frame, but I will expect that over the next two months. Of course, you are aware the SAP programme begins in April. So, over the next two months, we should see quite frankly a complete elimination of this. “Our strategy is that whatever is produced in the refineries will not go for sale. We are going to keep them in strategic reserve because the key problem here is that there is no reserve. Any time there is gap in supply, it goes off. “So we are going to dedicate the next couple of months to moving all the products that we produce to strategic reserve so that we can pile up reserves in the nation and that will push up the reserves in the nation. ‘’Believe me, this is giving me and my team sleepless nights and we are working on it and we are committed to making this go away. Nigerians should please bear with us.” Mission to villa Speaking on his mission to the villa, the minister said a lot of concerns were raised with the President to which he showed both sympathy and commitment to resolve. He said: “The meeting with the President was basically to review in the oil industry some of the concerned areas that he himself is trying to find joint solutions and shared thoughts. Like you know, His Excellency has too many constituencies. First will be politics, second army and the third will be the oil industry. “So, matter of this nature touches his heart very much. And this is the first opportunity that the unions have had to spend a bit of time with him as a father. So, we shared thoughts, areas of concerns and some solution potentialities and agreed to collaborate and work together.” Oil workers’ concerns “I will probably highlight a few areas of concerns. The PIB. The union wants us to obviously work harder than we do and try to get the PIB passed as soon as possible. They are worried about the fuel scarcity issue  and want long term solutions to finally resolve this issue. ‘’ They are worried about the refineries and are thankful we didn’t sell the refineries without looking to work collaboratively with them to see how to make the refineries work. “They are worried about the utilization of depots and how best to do that. They are worried about all kinds of logistic issues that plague the oil industry. ‘’They are worried about job loss in the sector, arising from the position of majors who feel that the economy is giving rough end of the sticks and then try to whittle down staff.  And so, we are going to be working with the oil majors to ensure that we do not experience the kind of job loss that we are hearing has the potentiality to occur in the sector. Assurances from the govt “The assurances His Excellency gave was willingness to work together with them (oil workers) to bring good jobs, tasking them as agents of change within the respective areas where they work  to ensure that they continue to look out, contribute, take change on its head and make it happen also and for recognising the difficulties this government has inherited. “A lot of these problems that are on the table was quite frankly there when we came and we are doing the best we can to try and work on it. But we are looking to work collaboratively, those were the assurances.”.   NUPENG, PENGASSAN speak Also speaking, National President, NUPENG, Igwe Achese, said one of the issues that featured at the meeting was how the age-long Petroleum Industry Bill, PIB, could secure a quick passage in the National Assembly. He said: “We had a successful meeting, quite interesting in terms of the emotional attachment of Mr. President on the issue of oil and gas sector and the challenges we are facing as a nation. “We tabled the issue of fuel scarcity, the quick passage of the PIB and to see how the sector bounces back economically and to make Nigerians smile again.” Similarly, the President, PENGASSAN, Comrade Olabode Francis Johnson,  said the President sought collaboration with the associations to bring an end to oil theft and pipeline vandalism.

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