Economy

NNPC Recorded N197.5bn Loss in 2016 –Report

Published

8 years ago

February 17, 2017

NNPC Recorded N197.5bn Loss in 2016

The group total loss of the Nigerian National Petroleum Corporation at the end of the 2016 financial year was N197.49bn.

Latest data released on Thursday by the national oil firm showed that the corporation earned a group total revenue of N1.726tn, but recorded an expense of N1.923tn last year.

The refineries incurred the largest loss during the review period, as the sub-total loss posted by the plants last year was N77.84bn.

During the year under review, the refineries in Warri, Port Harcourt and Kaduna recorded a total expense of N78.95bn.

They, however, did not earn much as their 12-month revenue was put at N1.11bn.

The corporation posted a loss of N17.01bn in December 2016, down from the N18.72bn recorded in November.

The NNPC stated that it had been operating in challenging situations, which limited its aspiration to profitability, adding that this was why it posted a trading deficit of N17.01bn in December last year.

The oil firm added, “This represents a decrease of N1.71bn in trading deficit as against November 2016. The marginal decrease is due to improved PPMC (Pipelines and Product Marketing Company) coastal sales following the completion of reconciliation with other marketers.

“Other factors that affected the overall NNPC’s performance include the force majeure declared by SPDC (Shell Petroleum Development Company) as a result of the vandalised 48-inch Forcados export line after the restoration on October 17, 2016, among others.”

It stated that in November, crude oil production inched up to 1.92 million barrels per day, which represented 7.77 per cent increase relative to October’s production, but lagged behind November 2015’s performance by 12.04 per cent.

“The month’s performance is attributed to the Federal Government’s overtures to Niger Delta militants towards providing a lasting peace to the crisis. However, some of the major drag to our performance includes the subsisting force majeure at the Forcados and Brass terminals, and shutdown of two NCTL flow stations following pipeline leakages,” it said.

The corporation noted that areas that were much affected by the militant activities were the onshore and shallow water assets, where government’s stake was high, adding that securing onshore and shallow water locations remained a priority to restore production.

It said pipeline sabotage in the country had continued to reduce due to the Federal Government and the NNPC’s sustained engagements with the stakeholders.

“Only 18 downstream pipeline vandalised points were recorded in the month as against 43 in November 2016. This also represents 69.77 per cent reduction relative to the previous month,” it added.

It further noted that the downstream sector, in spite of liberalisation of petroleum products and government intervention to ease marketers’ access to foreign exchange, the NNPC had remained the major importer of petroleum products, especially petrol.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Economy

President Tinubu Approves Concrete Redesign for Abuja-Kaduna Road Amid Contract Termination

Published

21 hours ago

November 7, 2024

Bassey Marshall

The Federal Government has announced plans to address the difficulties faced by road users on the Abuja-Kaduna-Zaria-Kano road with the redesign of the dual carriageway.

This announcement was made by the Minister of Works, David Umahi via a statement on Wednesday.

The Ministry revealed that the 127 kilometers project has been approved by President Bola Tinubu.

This development comes two days after the Ministry of Works announced the termination of its contract with Julius Berger for the Section I (Abuja-Kaduna) of the Abuja-Kaduna-Zaria-Kano Dual Carriageway project in FCT, Kaduna, and Kano States.

Investors King understands that the contract for the rehabilitation of the road was awarded to Messrs Julius Berger (Nig.) Plc on December 20, 2017.

The project, initially valued at N155.7 billion, with a 36-month completion period was further categorized into three sections.

However, only Section II (Kaduna-Zaria) has been completed and partially handed over.

Section III (Zaria-Kano) is partially finished while Section I remains in a severely deteriorated state.

A statement from the Ministry explained that the decision to terminate the contract with Berger was based on non-compliance with reviewed cost, scope, and terms, stoppage of work, and refusal to remobilise to site.

The ministry on Wednesday, November 6, confirmed that Section I has been redesigned and re-scoped.

The statement reads, “The President, His Excellency, Bola Ahmed Tinubu, GCFR has approved that the remaining 127 kilometres of the Rehabilitation of Abuja – Kaduna – Zaria – Kano Dual Carriageway, Section I (Abuja – Kaduna) be redesigned using continuously reinforced concrete pavement (CRCP) instead of the present asphaltic one.”

“The contract, divided into three (3) sections, was awarded to Messrs Julius Berger (Nig.) PLC on 20th December 2017 at an initial sum of N155, 748,178,425.50 billion (one hundred and fifty-five billion, seven hundred and forty-eight million, one hundred and seventy-eight thousand, four hundred and twenty-five naira, fifty kobo) with a completion period of thirty-six (36) months.”

Economy

Tax Expert Warns Tinubu: VAT, PAYE Hikes Will Deepen Hardship for Nigerians

Published

2 days ago

November 6, 2024

Yetunde Olugbenga

Company Income Tax (CIT) - Investors King

Due to Nigeria’s economic situation, tax expert Adebisi Oderinde has urged President Bola Ahmed Tinubu to halt plans to increase the VAT and Pay-As-You-Earn (PAYE) tax rates.

Oderinde, who is also the CEO of AOC-Adebisi Oderinde & Co, made the statement during the inauguration of the company’s Head Office in the Kara area of Ogun State.

He said the country’s economic conditions are challenging and particularly unfavorable for SMEs and warned that implementing tax reform could destabilize many small businesses as inflation has already eroded purchasing power in Nigeria.

With over 28 years of experience as a tax consultant, Oderinde noted that new tax reforms would likely worsen hardship across the country.

“My advice is to make hay while the sun shines, as the journey of a thousand miles begins with a single step, and slow and steady wins the race. The country is hard! As a tax practitioner, I continue to pray for our President, but he must heed the advice of elders, especially when it concerns tax reform,” he said.

“This is not the right time to reform any tax, nor to adjust rates. Nigerians’ purchasing power is very low. While some may think of VAT reform as beneficial, it would have a negative impact, especially on Lagos State. One part of the reform aims to cancel the consumption tax, which would hit Lagos hard, as the state earns more from consumption tax than any other state in the federation,” he added.

Oderinde further advised northern Nigeria not to support the proposed policy, warning it could disproportionately affect the region.

“They also want to increase PAYE, and recent data from the NBS in 2023 shows that the total IGR from the 36 states plus the FCT is about N2.4tn, with PAYE accounting for about 63%. If PAYE is raised, it will impact many states significantly. Instead of focusing on VAT, the northern states should consider that an increase in PAYE would affect them even more than VAT,” he explained.

Economy

Power Restored Hours After Lastest Grid Collapse

Published

2 days ago

November 6, 2024

Ugwoke Ogbodo

Electricity has been restored in some parts of the states that were hitherto affected by the nation’s power grid collapse.

Investors King gathered that some states including Lagos, Osun, Federal Capital Territory among others now have light.

Recall that the Transmission Company of Nigeria (TCN) had on Tuesday announced the latest National Grid collapse.

Checks by Investors King, however, revealed that the last disruption was the tenth time Nigeria would be experiencing total blackout due to grid collapse in about nine months in 2024 alone.

The situation has been raising concerns from Nigerians and other stakeholders even as others alleged that the collapse has led to inferno in people’s homes among other property destruction.

The General Manager of TCN Public Affairs, Ndidi Mbah, had assured members of the public that the grid collapse which occurred at 1:52 pm on November 5 would be speedily fixed.

The GM revealed that the grid collapse was caused by line and generator trippings, adding that efforts were on to rectify it.

Mbah had disclosed how the national grid experienced a partial disturbance due to a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Each time the disruption through citizens into darkness, businesses are affected as many Nigerians task the Federal Government to tackle the menace.