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NNPC Posts N27bn Deficit One Month after Reporting Surplus

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NNPC Nigeria

The Nigerian National Petroleum Corporation (NNPC) has reported a deficit of N26.51 billion from its operations in June, just one month after posting a record trading surplus of N274 million in May.

The June 2016 monthly operations and financial report of the corporation which it released last Sunday indicated that it had failed to continue on the positive operational trend it reported in May because of a 13.30 per cent decline in the sales of its subsidiary downstream company – the Pipeline and Products Marketing Company (PPMC) among other issues.

Other operational issues which NNPC said influenced its deficit record in the month of Juneincluded reported huge incidents of vandalism at up to 261 points of its pipeline. It said in the report which THISDAY obtained in Abuja that this compounded its operational deficits.

It also stated that a substantial portion of crude oil sales of its exploration and production subsidiary – the Nigerian Petroleum Development Company (NPDC), for the month estimated to be in excess of the reported deficit could also not be realised due to ‘force majeure’ declared by Shell Petroleum Development Company (SPDC) following the break on 48-inch Forcados export line.

According to it, local refining capacity remained below commercial threshold within the month due to prolonged Turn Around Maintenance (TAM) issues, pipeline vandalism, and resultant losses, adding that the three refineries in Port Harcourt; Kaduna; and Warri had a combined operational deficit of N4.69 billion.

“This 11th publication of NNPC monthly financial and operations report indicate a deficit of N26.51 billion as against trading surplus of N274 million reported in May, 2016.

“This trading surplus does not represent net profit as there are other expenses that should ordinarily have been captured. The deficit in the month of June 2016 was majorly due to decrease in revenue generation as a result of decline in PPMC petroleum products sales by 13.30 per cent or N14.9 billion and increase in products distribution costs.

“Also June 2016 operations witnessed the major impact of incessant vandalism, during the month more than 261 vandalised, points were recorded. In NPDC a substantial portion of crude oil sales for the month estimated to be in excess of the deficit could not be realised due to force majeure declared by SPDC as a result of vandalised 48-inch Forcados export line,” said the report.

According to it: “The combined value of output by the three refineries (at import parity price) for the month of June 2016 amounted to N24.68 billion while the associated crude plus freight cost was N22.25 billion, giving a deficit of N4.69 billion after considering overhead of N7.12billion. This deficit for the month was primarily due to irregular crude oil supply and impact of pipeline vandalism.”

It further explained: “In May 2016, crude oil production in Nigeria plummeted to 1.69mb/d following uptick in pipeline vandalism in the volatile Niger-Delta region. Subsisting force majeure at Forcados Terminal means that about 380,000bpd remains shut-in.

“Cargoes were deferred until repairs are completed. Also, the nation has lost over 1,500 megawatts to the damage at Forcados which accounted for 40 to 50 per cent of gas production. Furthermore, force majeure was declared on May 10, 2016, for repair works on Nembe Creek Trunk Line (NCTL) and the resultant shut-in of about 275,000bpd. Other far-reaching incidents include production shut-in at Usan, Que Iboe and Brass Terminals.”

It noted that: “In the downstream sector, introduction of new price regime, especially for Petrol has continued to incentivise the market players to import petrol and relieve NNPC the responsibility of supplying more than 90 per cent of the petroleum products.

“Local refining capacity has remained below commercial threshold due to prolonged Turn Around Maintenance (TAM) issues, pipeline vandalism and resultant losses. However, the ongoing refineries revamp is improving the situation.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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92.6 Million Nigerians Enrolled For the National Identification Number – NIMC

The Federal Government through the Corporate Affairs Commission (CAC) has stated that NIN will be a compulsory requirement for business registration. 

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National-eID-card

The National Identity Management Commission (NIMC) has announced that 92.63 million Nigerians have enrolled for the National Identification Number as of November 2022.

This represents an increase of 1.9 million when compared to the 90.68 million recorded in October.

According to the recent data released by NIMC, more men have been captured than women. The data also revealed that men accounted for about 52.1 million people or 56 percent of the total people captured so far in the NIN database.

On the other hand, women represent 40.5 million or 44 percent of the total enrollment, Investors King learnt.

On a state-to-state basis,  Lagos State recorded the highest enrollment with about 10.3 million. This was followed by Kano State with more than 8 million people.

Other states with substantial enrollments include Kaduna with 5.4 million, Ogun with 3.8 million, Oyo with 3.6 million, FCT with 3.2 million, Katsina with 3.1 million, Rivers with 2.7 million, Delta with 2.4 million, and Bauchi with 2.4 million.

Meanwhile, Bayelsa is presently the state with the lowest enrollments.  A total of 583,323 have so far enrolled in the state. Ebonyi trailed Bayelsa with 744,869 and Ekiti’s record shows 971,712 enrollments. While Cross River, Taraba, Yobe, Enugu, Imo, Akwa Ibom and Zamfara followed with 1 million, 1.3 million, 1.3 million, 1.5 million, Imo 1.5 million, 1.5 million and 1.6 million, respectively.

In another development, the Federal Government through the Corporate Affairs Commission (CAC) has stated that NIN is now a compulsory requirement for business registration like it is with banks.

According to the Registrar of the Corporate Affairs Commission, Garba Abubakar, NIN was adopted because its security can’t be compromised, unlike the National Identity card, passport, and driver’s license, which could easily be cloned.

“If you don’t have a NIN, it means you can’t register your company. The essence is to verify the integrity of the data we are collecting,” Garba noted.

National Identification Number is the unique number created by the Nigerian government to identify Nigerians, curb crimes, deepen infrastructure in cities and generally access all citizens.

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Governors Forum Replies FG, Blames Poverty on Rising Insecurity

The NGF accused the federal government of being unable to tame rising insecurity which has led to the high costs of food.

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Child Poverty - Investors King

The Nigerian Governors Forum (NGF)  has stated that governors could not be blamed for poverty in their respective states. The NGF accused the federal government of being unable to tame rising insecurity which has led to the high costs of food.

Investors King could recall that President Muhammadu Buhari earlier alleged that governors are pocketing funds meant for the development of the local governments. 

Similarly, the Minister of State for Budget and National Planning, Clement Agba, also stated that the 36 governors were responsible for the rising poverty index in the country,

According to the Governors Forum, the rising level of poverty among Nigerians was a consequence of the biting effect of insecurity on commercial and agricultural activities.

A statement released by NGF’s  Director of Media and Public Affairs, AbdulRazaque Bello-Barkindo said “It is important to put on record the progress made by state governors in the administration of their states, which have witnessed tremendous progress in recent times. Governors have undertaken projects where they, in conjunction with their people, deem them fit for purpose.

“This dereliction of duty from the centre is the main reason why people have been unable to engage in regular agrarian activity and commerce. Today, rural areas are insecure, markets are unsafe, travel surety is improbable and life for the common people generally is harsh and brutish.”

Barkindo further accused the minister of deviating from the major issues and passing blames when he and his colleague, the Minister of Finance, Budget and National Planning, Zainab Ahmed, should be implementing policies that can ameliorate the hardship Nigerians were facing. 

Barkindo in the statement added that the primary duty of any government is to ensure the security of lives and property, an area he claimed the Federal Government has failed. 

“But the Federal Government, which is responsible for the security of lives and property, has been unable to fulfil this covenant with the people, thus allowing bandits, insurgents, and kidnappers to turn the country into a killing field, maiming and abducting people, in schools market squares and even on their farmlands,” he said. 

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President Buhari Accuses Governors of Stealing LG Funds

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Muhammadu Buhari

Nigerian President, Muhammadu Buhari has once again accused state governors of stealing monthly allocation due to local government under them.

The president spoke at a parley with members of the Senior Executive Course of the National Institute for Policy and Strategic Studies, Kuru, held at the State House Banquet Hall, Abuja.

Speaking at the event, the president stated that it beats anyone’s imagination how some governors collected money on behalf of council areas in their states, only to remit just half of such allocation to the council chairmen, who would further deplete the remittance by filching it. Investors King learnt. 

 ‘‘I found it necessary to digress after reading my speech and this digression is a result of my personal experience. What they did, this is my personal experience, if the money from the Federation Account to the state is about N100m, N50m will be sent to the chairman, but he will sign that he received N100m. The governor will pocket the balance and share it with whoever he wants to share it with,” the president narrated. 

‘‘This is what’s happening. This is Nigeria. It’s a terrible thing; you cannot say the person who was doing this is not educated. He was a qualified lawyer, he was experienced, yet he participated in this type of corruption.” he queried. 

Furthermore, the president clarified that state governors and local government chairmen should be held responsible for the underdevelopment in the rural areas noting that most of the local governments lack basic amenities. 

Similarly, the National Union of Local Government Employees on Thursday backed the position of the president on the embezzlement and mismanagement of local government funds.

Responding to Buhari’s position, the  President of the Nigeria Union of Local Government Employees (NULGE), Hakeem Ambali, said Buhari was merely stating the obvious.

The NULGE President nevertheless admonished the president to go beyond the statement and ensure governors, especially those in APC to sign the local government autonomy bill into law.  

“He should go beyond that statement. He is the leader of the party, he should ask them to sign the autonomy into law; he is the leader of the governors,’’ he said.

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