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NNPC Loses N255bn in One Year

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NNPC

The Nigerian National Petroleum Corporation recorded a total loss of N255.3bn at the close of last year, statistics from the January 2016 edition of its Energy in Brief bulletin have shown.

An analysis of the data indicated that the highest monthly loss by the corporation was recorded in September 2015 when it lost N46.5bn.

Further findings showed that the loss in September was reduced the following month (October 2015) with the firm losing N12.2bn.

A monthly loss of N14.3bn was recorded in November 2015, up by N2.1bn when compared to what it lost in October the same year.

The corporation attributed the losses to local operational challenges and persistent pipelines vandalism.

The corporation’s group financial report showed that between January and October 2015, the oil firm recorded a group total loss of N241bn.

The figure, however, increased when the firm’s losses from January to November 2015 were computed, losing N255.28bn during this period.

The NNPC specifically said it lost N58.68bn between January and November 2015 to the rupturing of its crude oil installations.

It said, “Local operational challenges such as refinery capacity below commercial threshold due to prolonged turnaround maintenance issues and pipeline vandalism and products losses have also continued to cost the NNPC a huge amount of money.

“A total of 2,447 vandalised points were recorded between January and November 2015, resulting in a total loss of 637,550 cubic metres of crude and products valued at N56.68bn. These developments have put the corporation in a disadvantaged market position.”

The NNPC, in the bulletin, also stated that it remitted a total of N1.003tn to the Federation Accounts Allocations Committee last year.

It said that the country’s three refining companies’ operations came to life in the mid December, thereby meeting the target set by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, for the plants to come on stream.

The oil firm said the refineries were producing about six million litres of petrol daily in December. This, however, was before the Kaduna and Warri refineries were shut down last week by the corporation due to breaches in their product supply pipelines.

On key business operations across the group value chain, the NNPC said its oil and gas exploration subsidiary, the Nigerian Petroleum Development Company Limited, posted a production increase of 23 per cent as against the previous month performance.

It said the Nigerian Gas Company, another subsidiary of the NNPC, also recorded an improvement in its year-to-date performance as reflected with revenue posting of N31.34bn.

The firm also explained the recent petrol price modulation embarked upon by the Petroleum Products Pricing Regulatory Agency.

Price modulation, according to the corporation, is a regulatory adjustment approach that allows changes to a pricing template that protects the interest of consumers and investors alike.

It said, “In Nigeria’s context, it is a quarterly price adjustment of the PPPRA’s current price template to reflect the import cost variables.

“The benefit of adopting a pricing modulation approach is that it addresses corruption and blocks leakages in current subsidy management methods, ensures appropriate planning to guarantee security of energy supply, logistics and distribution of petroleum products.

“In the long run, it will curb inflation growth and stimulate efficiency due to forward planning approach; it will support improvement in fiscal sustainability through the deployment of public funds to key infrastructural development, such as roads, health education, agriculture and other safety nets. It will also boost economic growth with impact on Gross Domestic Product, foreign direct investment and employment.”

But the NNPC stated that securing its product pipelines from vandals across the country had remained a major challenge to the effort at ensuring effective fuel distribution nationwide.

The firm had on Wednesday stated that the continued rupturing of pipelines had led to the shutdown of the Kaduna and Port Harcourt refineries.

It said the burst pipelines led to crude supply challenges, adding that the plants were shut simultaneously last Sunday after the Bonny-Okrika crude supply line to the Port Harcourt refinery and the Escravos-Warri crude supply line to the Kaduna refinery suffered breaches.

Quantifying the cost of the attack on the Nigerian economy, the Federal Ministry of Power, Works and Housing stated that the country was losing N470m daily as a result of the incident.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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COVID-19 Vaccine: African Export-Import Bank (Afrexim) to Purchase 270 Million Doses for Nigeria, Other African Nations

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African Export-Import Bank (Afrexim) Approves $2 Billion for the Purchase of 270 million Doses for African Nations

African Export-Import Bank (Afrexim) said it has approved $2 billion for the purchase of 270 million doses of COVID-19 vaccines for African nations, including Nigeria.

Prof. Benedict Oramah, the President of the Bank, disclosed this at a virtual Africa Soft Power Series held on Tuesday.

He, however, stated that the lender is looking to raise more funds for the COVID-19 vaccines’ acquisition.

He said: “The African Union knows that unless you put the virus away, your economy can’t come back. If Africa didn’t do anything, it would become a COVID-19 continent when other parts of the world have already moved on.
“Recall that it took seven years during the heat of HIV for them to come to Africa after 12 million people had died.

“With the assistance of the AU, we were able to get 270 million vaccines and financing need of about $2 billion. Afreximbank then went ahead to secure the $2 billion. But that money for the 270 million doses could only add 15 per cent to the 20 per cent that Covax was bringing.

He added that this is not the time to wait for handouts or free vaccines as other countries will naturally sort themselves out before African nations.

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China Calls for Better China-U.S. Relations

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China Calls for China-U.S. Relations

Senior Chinese diplomat Wang Yi said on Monday the United States and China could work together on issues like climate change and the coronavirus pandemic if they repaired their damaged bilateral relationship.

Wang, a Chinese state councillor and foreign minister, said Beijing stood ready to reopen constructive dialogue with Washington after relations between the two countries sank to their lowest in decades under former president Donald Trump.

Wang called on Washington to remove tariffs on Chinese goods and abandon what he said was an irrational suppression of the Chinese tech sector, steps he said would create the “necessary conditions” for cooperation.

Before Wang spoke at a forum sponsored by the foreign ministry, officials played footage of the “ping-pong diplomacy” of 1972 when an exchange of table tennis players cleared the way for then U.S. President Richard Nixon to visit China.

Wang, a Chinese state councillor and foreign minister, said Beijing stood ready to reopen constructive dialogue with Washington after relations between the two countries sank to their lowest in decades under former president Donald Trump.

Wang called on Washington to remove tariffs on Chinese goods and abandon what he said was an irrational suppression of the Chinese tech sector, steps he said would create the “necessary conditions” for cooperation.

Before Wang spoke at a forum sponsored by the foreign ministry, officials played footage of the “ping-pong diplomacy” of 1972 when an exchange of table tennis players cleared the way for then U.S. President Richard Nixon to visit China.

Wang urged Washington to respect China’s core interests, stop “smearing” the ruling Communist Party, stop interfering in Beijing’s internal affairs and stop “conniving” with separatist forces for Taiwan’s independence.

“Over the past few years, the United States basically cut off bilateral dialogue at all levels,” Wang said in prepared remarks translated into English.

“We stand ready to have candid communication with the U.S. side, and engage in dialogues aimed at solving problems.”

Wang pointed to a recent call between Chinese President Xi Jinping and U.S. President Joe Biden as a positive step.

Washington and Beijing have clashed on multiple fronts including trade, accusations of human rights crimes against the Uighur Muslim minorities in the Xinjiang region and Beijing’s territorial claims in the resources-rich South China Sea.

The Biden administration has, however, signalled it will maintain pressure on Beijing. Biden has voiced concern about Beijing’s “coercive and unfair” trade practices and endorsed of a Trump administration determination that China has committed genocide in Xinjiang.

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U.S. Supreme Court Allows Release of Trump Tax Returns

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President Trump Signs Executive Order In Oval Office Of The White House

U.S. Supreme Court Allows Release of Trump Tax Returns

The U.S. Supreme Court on Monday paved the way for a New York City prosecutor to obtain former President Donald Trump’s tax returns and other financial records as part of a criminal investigation, a blow to his quest to conceal details of his finances.

The justices without comment rebuffed Trump’s request to put on hold an Oct. 7 lower court ruling directing the former Republican president’s longtime accounting firm, Mazars USA, to comply with a subpoena to turn over the materials to a grand jury convened by Manhattan District Attorney Cyrus Vance, a Democrat.

“The work continues,” Vance said in a statement issued after the court’s action.

Vance had previously said in a letter to Trump’s lawyers that his office would be free to immediately enforce the subpoena if the justices rejected Trump’s request.

A lawyer for Trump did not immediately respond to a request for comment.

The Supreme Court, which has a 6-3 conservative majority included three Trump appointees, had already ruled once in the dispute, last July rejecting Trump’s broad argument that he was immune from criminal probes as a sitting president.

Unlike all other recent U.S. presidents, Trump refused during his four years in office to make his tax returns public. The data could provide details on his wealth and the activities of his family real-estate company, the Trump Organization.

Trump, who left office on Jan. 20 after being defeated in his Nov. 3 re-election bid by Democrat Joe Biden, continues to face an array of legal issues concerning his personal and business conduct.

Vance issued a subpoena to Mazars in August 2019 seeking Trump’s corporate and personal tax returns from 2011 to 2018. Trump’s lawyers sued to block the subpoena, arguing that as a sitting president, Trump had absolute immunity from state criminal investigations.

The Supreme Court in its July ruling rejected those arguments but said Trump could raise other objections to the subpoena. Trump’s lawyers then argued before lower courts that the subpoena was overly broad and amounted to political harassment, but U.S. District Judge Victor Marrero in August and the New York-based 2nd U.S. Circuit Court of Appeals in October rejected those claims.

Vance’s investigation, which began more than two years ago, had focused on hush money payments that the president’s former lawyer and fixer Michael Cohen made before the 2016 election to two women – adult-film actress Stormy Daniels and former Playboy model Karen McDougal – who said they had sexual encounters with Trump.

In recent court filings, Vance has suggested that the probe is now broader and could focus on potential bank, tax and insurance fraud, as well as falsification of business records.

In separate litigation, the Democratic-led U.S. House of Representatives was seeking to subpoena similar records. The Supreme Court in July sent that matter back to lower courts for further review.

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