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Petroleum Products’ Importation a Fraud, Must End –Kachikwu



  • Petroleum Products’ Importation a Fraud, Must End

The importation of petroleum products into the country is a fraud and must be put to an end if the nation is to make progress in the oil and gas sector, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said.

According to him, aside the fact that it is a shame that Nigeria has been importing finished petroleum products over the years despite having abundant oil resources, the system has been opaque for a long period.

In his ministerial address titled: ‘Reforming and repositioning the oil and gas industry in Nigeria’ at the ongoing Nigeria Oil and Gas Conference in Abuja on Tuesday, Kachikwu stated that the government through the Nigerian National Petroleum Corporation must meet its target of ending petroleum products’ importation between 2018 and 2019.

He said, “Importation of petroleum products will have to cease. There’s absolutely no reason why a country with the resources that we have will continue to import petroleum products. It is a shame on this country, it is a fraud on the system and we are going to end it.

“We are committed to the 2018/2019 template, because it is something we have to do. The refineries are not performing to capacity and it is not going to be easy, but we have to end importation of petroleum products.

“If we do that, the downstream will survive; but if we don’t, then by the first quarter of 2020, the Dangote refinery will come on board. And if that happens, it then means we will have scraps in our hands as refineries. Therefore, there’s the urgency of now to end importation.”

Kachikwu told delegates to the conference that in 2016, the upstream sector of the oil and gas industry was challenged by the menace of asset vandalism.

He said, “Our crude oil export pipeline system namely, Trans Forcados to the west, the Obangbiri-TemiDaba-Brass in central Niger Delta, the Nembe creek trunk line and the Trans-Niger pipeline, which evacuates crude produced onshore to export terminals, were subject to severe vandalism.

“Similarly, the Bonny-Port Harcourt crude oil pipeline and the Escravos-Warri-Kaduna crude oil supply pipelines were not spared. In spite of this, we witnessed a peak production of 2.35 million barrels per day recorded at the beginning of 2016, which declined to an almost all-time-low of 1.3 million barrels per day per day due to incessant vandalism. Our 2016 crude oil production averaged 1.85 million barrels of oil per day.”

The minister noted that despite these, Nigeria remained a leading producer in Africa with the potential to boost production to the neighbourhood of three million barrels of oil per day by 2020 once the required investments flowed in and the planned deep-water projects were fully realised.

This, he said, was aimed at achieving an incremental reserve of at least one billion barrels and half a million barrels in production capacity per day.

“For example, the opening up of the Dahomey Basin with the coming on stream of the Aje field is certainly a major milestone for the industry,” he stated.

Kachikwu also noted that the engagements with state governments and groups in the Niger Delta had started yielding positive results, as over the last 60 days, the activities of militants in the region had dropped to near zero.

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


NNPC Supplies 1.44 Billion Litres of Petrol in January 2021



Petrol Importation -

The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.

The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.

NNPC said the 1.44 billion litres translate to 46.30 million litres per day.

Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).

The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.

Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.

For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.

Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

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NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021




The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.

This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.

It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.

NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

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Nigeria’s Food Inflation Hits 22.95 Percent in March 2021



food storage

Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.

Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.

Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.

Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.

Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.

The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.

However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.

Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.

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