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NNPC Recorded N197.5bn Loss in 2016 –Report

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  • 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.

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

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Economy

NLNG Boosts Cooking Gas Production to 1.5 Million Metric Tonnes Annually

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cooking gas cylinder

Nigeria Liquefied Natural Gas Limited (NLNG) has announced a significant milestone in its operations, boosting its annual production of liquefied petroleum gas (LPG), commonly known as cooking gas, to over 1.5 million metric tonnes.

This surge in production underscores NLNG’s commitment to meeting the rising demand for clean cooking energy in Nigeria.

The entirety of NLNG’s 1.5 million tonnes production is now being sold domestically within Nigeria.

Moreover, the company has initiated a landmark shift by starting to supply LPG in naira, moving away from the traditional practice of trading in United States dollars.

This move aligns with calls from stakeholders in the oil and power sectors advocating for naira transactions, especially amidst the challenges posed by currency fluctuations.

During a panel session at the 7th Nigeria International Energy Summit in Abuja, NLNG’s General Manager of Finance, Fatima Adanan, highlighted the company’s dedication to enhancing LPG penetration across the country.

Adanan emphasized NLNG’s vision to make Nigeria a better place by promoting the use of cleaner energy sources like gas.

While NLNG’s production surge is commendable, Adanan acknowledged that Nigeria’s LPG requirements surpass the current output, necessitating imports to bridge the gap.

However, NLNG remains committed to expanding its production capacity to meet the nation’s energy needs and drive increased adoption of LPG as a cleaner cooking fuel.

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Economy

CBN Raises Benchmark Interest Rate by 400 Basis Points to 22.75%

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has raised the benchmark interest rate by 400 basis points to a record 22.75%.

The decision made by the Monetary Policy Committee (MPC) comes amidst rising inflationary pressures and growing uncertainty in Africa’s largest economy.

Nigeria’s inflation rate rose to 29.90% in January 2024, the highest in over two decades while the nation’s unemployment rate quickened to 5% in the third quarter of 2023. Suggesting that the rising costs have continued to drag on both new job creation and the existing ones.

This coupled with a series of policy adjustments implemented by President Bola Ahmed Tinubu has plunged economic productivity and eroded consumer spending as citizens grapple with high fuel prices, electricity tariffs, a record-high foreign exchange rate, and insecurities.

Therefore, it is surprising that the Monetary Policy Committee (MPC) led by the CBN will further increase borrowing costs by 400 basis points at a time when job creation is paramount.

While the economy reportedly grew by 3.46% in the fourth quarter (Q4) of 2023 on the back of robust performance of the services sector, this growth is yet to crystalise as businesses and citizens have taken to the street protest against the harsh economic situation.

Economic experts have started questioning the data from the National Bureau of Statistics (NBS) given its lack of correlation between the data and economic reality.

 

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Economy

President Tinubu Unveils Geometric Power Plant in Aba After 20-Year Wait

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Geometric Power Plant

After two decades of anticipation, President Bola Tinubu, through his representative Vice President Kashim Shettima, inaugurated the long-awaited Geometric Power Plant in Aba, a significant milestone in the city’s quest for reliable electricity supply.

The event, which also saw the commissioning of three rehabilitated roads by Abia State Governor Alex Otti, symbolizes the culmination of years of perseverance and determination to transform Aba’s power landscape.

Addressing the audience, Vice President Shettima hailed the project as a testament to the power of visionary leadership and unwavering commitment to progress.

He said the Geometric Power Plant exemplifies the transformative impact of strategic infrastructure investments on local communities.

Governor Otti echoed similar sentiments, emphasizing the importance of the power project in positioning Aba as a hub for national and international business ventures.

He commended the efforts of Geometric Power Limited while urging them to uphold transparency and avoid exploiting consumers.

The inauguration of the Geometric Power Plant comes amidst growing concerns over Nigeria’s power infrastructure and the need for sustainable solutions to address electricity shortages.

The project, with a capacity of 188MW, holds promise for significant improvements in power supply across Abia State, benefitting nine out of seventeen local government areas.

The Managing Director of Geometric Power Limited, Ben Caven, underscored the scale of investment involved, totaling $800 million.

He highlighted the comprehensive nature of the project, which includes the installation of new power substations and a 27km natural gas pipeline, signaling a comprehensive approach to enhancing Aba’s energy infrastructure.

In conclusion, the inauguration of the Geometric Power Plant represents a transformative moment for Aba, offering renewed hope for economic growth and prosperity powered by reliable electricity supply.

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