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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.”

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.

Government

ICPC Declares Buhari’s Son-In-Law, Two Others Wanted For $65M Fraud

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Tarry, Gimba, Bola Fraud- Investorsking

The Independent Corrupt Practices and other related offenses Commission (ICPC) has declared Gimba Kumo, a son-in-law of President Muhammadu Buhari, and two others wanted over alleged misappropriation of $65 million National Housing Funds.

Mr. Kumo, a former managing director of the Federal Mortgage Bank of Nigeria, had in 2016 married Fatima, the president’s daughter, in Daura, Katsina State.

The ICPC in its list of wanted persons declared Mr. Kumo wanted alongside Tarry Rufus and Bola Ogunsola over the alleged fraud.

In the notice signed by its spokesperson Azuka Ogugua, the ICPC urged the public to provide information about the whereabouts of the wanted persons.

“The persons whose pictures appear above, Mr. Tarry Rufus, Mr. Gimba Yau Kumo, and Mr. Bola Ogunsola, are hereby declared WANTED by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) in connection with issues bordering on misappropriation of National Housing Funds and diversion of the sum of Sixty Five Million dollars ($65,000,000).

“Anyone who has useful information on their whereabouts should report to ICPC Headquarters Abuja, any of the ICPC State Offices, or the nearest police station” the notice read.

In April, the senate committee on public accounts had summoned Mr. Kumo to explain the alleged irregular award of N3 billion contract when he was still at the bank.

The committee issued the summons following a query raised in a 2015-2018 report by the office of the auditor-general of the federation (AuGF) against the FMBN.

According to the report, the contract was awarded in four phases and was overpaid to the tune of N3,045,391,531.97.

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Lagos State Moves to Completely Ban Okada, Keke, Introduces Minibuses

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Minibus - Investors King

The Lagos State Government on Monday announced plans to completely ban the use of motorcycles (okada) and tricycles (Keke) due to rising crime and lawlessness across the state.

The announcement was made after a stakeholders’ meeting held at the Adeyemi Bero Auditorium, Alausa Secretariat, Ikeja.

In the meeting attended by Governor Babajide Sanwo-Olu, the Speaker of the House of Assembly, Mudashiru Obasa; the Chief Judge, Kazeem Alogba; the Commissioner of Police, Hakeem Odumosu, traditional and religious leaders and members of the civil society, among others, the governor said the string of lawlessness daily witnessed from the confrontation between commercial motorcyclists and law enforcement agencies required urgent action.

Based on all that we have seen and experienced in the past couple of weeks, as well as the increasing threat posed by the activities of commercial motorcycle operators to the safety and security of lives, we will be announcing further changes to the parameters of motorcycle and tricycle operations in the state in the coming days. No society can make progress amid such a haughty display of lawlessness and criminality,” he added.

Sanwo-Olu said from next week, the state would be inaugurating the First and Last Mile buses next week, which would take the routes the motorcycles were plying.

The state Commissioner of Police, Odumosu, raised the alarm over rising security breaches from the menace of okada operations in the state.

He said between January and early this month, 320 commercial motorcycles were impounded in 218 cases of criminal incidents in which 78 suspects were detained and 480 ammunition recovered.

In the same period, the Lagos police boss said Okada accounted for 83 per cent of 385 cases of avoidable fatal vehicular accidents in Lagos.

At the end of the meeting, a 12-point resolution was reached, among which was a ban on Okada “as a means of transportation in the state.”

 

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2023 Voter’s Registration Will Be Online, Biometric To Be Captured Physically- INEC

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INEC-PVC

The Independent National Electoral Commission (INEC) yesterday unfolded plans to allow online filing during the continuous voter registration for the 2023 general election.

The National Commissioner and Chairman, Information and Voter Education Committee of INEC, Mr. Festus Okoye, however, said only the biometric would be captured physically by INEC officials.

But the commission suffered another setback yesterday as arsonists torched its office in Ohafia Local Government Area of Abia State.

Okoye, during a stakeholders’ meeting on expanding voter access to polling units in Kano yesterday, said: “On June 28, the voter registration exercise for those above 18 years and those who have not registered before will commence with two new innovations. Those versatile with computer can register online and only visit a registration centre to capture their biometrics.”

Okoye stated that the online registration would be introduced to reduce crowd at registration centres in line with COVID-19 protocols.

The commission called on citizens, especially those willing to contest elections, whose voter cards have been defaced, whose names were wrongly spelt or addresses and locations wrongly captured to present themselves for authentication or correction.

INEC also called for valid data of all those with disabilities or physical challenges to be captured during the continuous registration for proper projections ahead of the 2023 general election.

INEC also warned political parties and politicians who have started campaigning to desist from doing so.

Okoye said: “There is a ban on political campaigns which has not been lifted yet. And I find it necessary to draw your attention for you to understand the legal implication of violating this ban.

“I have listened to comments on radio stations, which are capable of heating the polity. Media organisations should avoid providing platforms for such comments. The media should try to curtail such tensions.

“Political parties, politicians and their supporters should understand there is a legal framework for campaigns and it has not commenced yet.”

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