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Three NNPC Chiefs Fired Over Missing N11bn Petrol

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Nigeria’s Minister of State for Petroleum Emmanuel Kachikwu
  • Three NNPC Chiefs Fired Over Missing N11bn Petrol

The Nigerian National Petroleum Corporation on Thursday sacked three of its senior officials and deployed four others in vacant positions.

Although the corporation did not state why the officials were sacked, it was gathered that the affected directors and a manager were allegedly involved in the N11bn missing petrol scandal that was recently established by the corporation.

The Group General Manager, Group Public Affairs Division, NNPC, Mr. Ndu Ughamadu, said the officials were retired by the corporation but gave no reason for the action.

Ughamadu said, “In line with the ongoing reforms in the Nigerian National Petroleum Corporation, the management has announced the retirement of some staff and the deployment of others. The retired staff members are Mrs. Esther Nnamdi-Ogbue, Managing Director, NNPC Retail Limited; Mr. Alpha P. Mamza, Executive Director, Operations, NNPC Retail Limited; and Mr. Oluwakayode Erinoso, Manager, Distribution, NNPC Retail Limited.

“Those redeployed are Mr. Adeyemi Adetunji, Managing Director, NNPC Retail Limited; Mr. Lawal Bello, Executive Director, Operations, NNPC Retail Limited; Mrs. Affiong Akpasubi, Executive Director, Services, NNPC Retail Limited; and Mr. Agwandas A. Andrawus, Manager, Distribution, NNPC Retail Limited.

“The appointments take effect immediately.”

Until his new assignment as the Managing Director of NNPC Retail, Adeyemi was the General Manager, Strategy and Planning, Gas and Power, and also former General Manager, Transformation Office.

The Group Managing Director, NNPC, Dr. Maikanti Baru, charged the redeployed staff members to remain committed to their duties in line with the transformation aspirations of the management of the corporation.

Last month, the NNPC declared that it would fully recover over 130 million litres of Premium Motor Spirit, popularly known as petrol, valued at N11bn and stored in the facilities of two indigenous downstream operators, MRS Limited and Capital Oil and Gas Limited, under a throughput arrangement to ensure a robust strategic reserve.

It commenced investigation into the missing product, a development that led to the interrogation of the Capital Oil boss, Mr. Ifeanyi Ubah, by operatives of the Department of State Services for several days.

Officials at the corporation told our correspondent in Abuja on Thursday that the sacked management employees were found culpable for the missing 130 million litres of petrol and that that was the major reason for their exit.

The corporation’s Chief Operating Officer, Downstream, Mr. Henry Ikem-Obih, had explained that the missing petrol was discovered earlier in the year when the NNPC wanted to access the over 100 million litres of petrol stored at the Capital Oil depot for the NNPC Retail, as well as over 30 million litres in MRS Limited’s depot, both in the Apapa area of Lagos.

“We instructed the Nigerian Products Marketing Company, a subsidiary of the NNPC, to send additional trucks to those locations to move products for distribution aimed at meeting a supply shortfall we discovered in the market; but after days of not being able to access the terminals, we had to take a decision as the NNPC management had to invite auditors and inspectors to go and do a physical check on the inventories,” Ikem-Obih explained.

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.

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Nigeria Allotted $3.35bn From IMF’s Special Drawing Rights(SDRs)

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IMF

Nigeria has secured about $3.35 billion as part of a historic general allocation of Special Drawing Rights (SDRs) of the International Monetary Fund (IMF).

This is part of the general allocation of about SDR456 billion – an equivalent of $650 billion – by the IMF Board of Governors.

This will help to boost liquidity in Nigeria that is currently battling declining revenue.

The allocation which was approved on Monday aims to boost global liquidity at a time when the world is grappling with the coronavirus (COVID-19) pandemic.

“This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis,” said IMF Managing Director, Kristalina Georgieva.

Although it is not a currency, the SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.

It is a potential claim on the freely usable currencies of IMF members and can provide a country with liquidity. The SDR is defined by the US dollar, Euro, Chinese Yuan, Japanese Yen, and the British Pound.

The amount allocated to Nigeria is as a result of the exchange rate of reference which is 0.702283 SDR to a dollar as of July 1, 2021, and Nigeria has 2.4545 billion SDRs.

“The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy,” the IMF managing director added.

“It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.”

According to the IMF, the general allocation of SDRs will become effective on August 23 and the newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund.

It stated that about $275 billion (about SDR 193 billion) of the new allocation will go to emerging markets and developing countries, including low-income countries.

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UN Chief Welcomes Historic’ IMF Liquidity Boost for Governments in Need

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crisis

As the COVID-19 crisis continues to exacerbate restrictions on government spending throughout the world, the UN chief on Tuesday welcomed the decision by the International Monetary Fund (IMF) to approve a $650 billion allocation of Special Drawing Rights to “boost liquidity”.

Secretary-General António Guterres issued a statement on the policy change towards Special Drawing Rights or SDRs, a type of foreign reserve asset that is IMF defined and maintained, as additional funding that could help to pay down debts.

He also underscored that economies not in need of access to cash should “consider channeling these resources to vulnerable low and middle-income countries that need a liquidity injection by replenishing the IMF’s Poverty Reduction and Growth Trust Fund”.

‘Historic decision’

Yesterday’s IMF’s allocation makes new borrowing available to the fund’s 190 member countries, roughly in proportion to their share of the global economy.

“This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis”, said IMF Managing Director Kristalina Georgieva.

“The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.”

Halting debt default

The Secretary-General stressed that it is also “critical to quickly establish the proposed Resilience and Sustainability Trust at the IMF…[for] a comprehensive response and recovery, including providing more support for vaccinations and debt management and to support the efforts of developing economies in restructuring for inclusive growth”.

Last month, he urged the world’s largest economies to spearhead a global COVID-19 vaccination plan and expand debt relief to developing countries battered by the pandemic.

Bulwark against default

He also advised supporting a new $50 billion IMF investment roadmap aimed at ending the pandemic and driving a fast recovery.

As many developing countries are “teetering on the verge of debt default”, the UN chief encouraged the G20 leading industrialized nations to channel unused SDRs to the Fund’s new resilience and sustainability plan, for these nations.

“Special Drawing Rights also need to be considered as additional funding, not deducted from Official Development Assistance”, he reminded.

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Economy

IMF Approves Largest SDR Allocation In History to Boost Global Liquidity

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IMF - Investors King

The Board of Governors of the International Monetary Fund (IMF) has approved a general allocation of Special Drawing Rights (SDRs) equivalent to US$650 billion (about SDR 456 billion) on August 2, 2021, to boost global liquidity.

“This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis. The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis,” IMF Managing Director Kristalina Georgieva said.

The general allocation of SDRs will become effective on August 23, 2021. The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund.

According to the IMF, about US$275 billion (about SDR 193 billion) of the new allocation will go to emerging markets and developing countries, including low-income countries.

“We will also continue to engage actively with our membership to identify viable options for voluntary channeling of SDRs from wealthier to poorer and more vulnerable member countries to support their pandemic recovery and achieve resilient and sustainable growth”, Ms. Georgieva said.

One key option is for members that have strong external positions to voluntarily channel part of their SDRs to scale up lending for low-income countries through the IMF’s Poverty Reduction and Growth Trust (PRGT). Concessional support through the PRGT is currently interest-free.

The IMF is also exploring other options to help poorer and more vulnerable countries in their recovery efforts. A new Resilience and Sustainability Trust could be considered to facilitate more resilient and sustainable growth in the medium term.

In April last year, Nigeria collected $3.4 billion—equivalent to 100 percent of its quota— under the IMF’s Rapid Financing Instrument, RFI, to tackle the funding gaps created by COVID-19, especially when the crude oil market stagnated.

The financial support, approved by the IMF Executive Board on April 28, 2020, provided critical support to shore up Nigeria’s healthcare sector and shielded jobs and businesses from the shock of the COVID-19 crisis while helping to limit the decline in the nation’s external reserves.

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