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Economy

NNPC Admits N77.92bn Under-Remittance, Reminds FG of N797bn Debt

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  • NNPC Admits N77.92bn Under-Remittance, Reminds FG of N797bn Debt

The National Petroleum Corporation (NNPC) has acknowledged that it under-remitted N77.92 billion (approximately N78 billion) to the Federation Account from Domestic Crude Allocation in 2017. It also disclosed that a reconciliation process to deduct the under remitted fund from a N797 billion naira owed the Corporation by the Federal Government is ongoing.

This was disclosed in a statement released on Wednesday by the Nigeria Extractive Initiative (NEITI) through its Director Communications and Advocacy, Dr Orji Ogbonnaya Orji, who said NNPC made this claim after it was confronted with the N77.92 billion arrears by the Federal Government.

The statement also contained a report on the sale of Nigeria’s share of crude oil and gas produced in 2017; which NEITI said was a pilot study.

NEITI said, “The sum of N77.92 billion was under remitted by NNPC to the Federation Account from Domestic Crude Allocation in 2017.”

“NNPC acknowledges the under-remittance and states that there is an ongoing reconciliation to net off the N77.92 billion from the ‘the established Federation indebtedness to the Corporation of N797 billion, arising from KPMG forensic audit of the corporation at the instance of the Federation’ ‘’.

The report disclosed that the aggregate earning of the Federation from the sale of oil and gas in 2017 was $14.5 billion; which is the sum of $13.8 billion or 90.8 percent from crude oil and $1.31 billion or 9.1 percent from gas.

The report further revealed that NNPC deducted a total of N297 billion from the aggregate earning from the sale of Domestic crude oil; claiming that the deduction was for costs and losses; with N141.6 billion for under-recovery of petroleum products, N130.4 billion for pipeline repairs and N25 billion for crude oil and petroleum losses.

The report also showed that the country produced a total of 692 million barrels of crude oil in 2017 and that a share of 240.9 million barrels which signifies 35 percent of the total crude oil was received by the Federation.

Analysis of the report, however, revealed a 4 percent improvement from the 231.6 million barrels produced in 2016 but a 19 percent reduction from the 297.8 barrel produced in 2015.

“A trend analysis for the year under review shows that the 2017 federation share was four percent higher than the 231.6 million barrels in the same category for 2016 but was 19 percent lower than the 297.8 million barrels for 2015. This shows that while there was a slight improvement on the figure for 2016 (a year characterized by vandalism and sabotage of oil facilities) crude production for 2017 was about a fifth less than the 2015 level” it revealed.

 

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.

Economy

FG Launches New N25bn Youth Fund to Address Some of the Concerns Raised by #EndSARS Protesters

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Zainab Ahmed

FG Introduces N25 Billion Youth Fund

The Federal Government has introduced a new N25 billion youth fund to address some of the issues raised by the Nigerian youths who took to the street to demand good governance, among others.

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, disclosed this at a stakeholder meeting held with the Deputy Governor of Kaduna State, Dr. Hadiza Balarabe, in Kaduna.

Ahmed said the fund would be increased from N25 billion to N75 billion within three years to ensure new job creation for the youths.

The meeting was constituted as part of the directive of President Muhammadu Buhari to ministers and governors to dialogue with stakeholders on some of the concerns raised by #EndSARS protesters.

The finance minister said the aim was to support the Nigerian youths to actualise their innovative and entrepreneurial minds in business and general development of the nation.

On her part, Balarabe said the essence of the meeting was to brainstorm on how to tackle security challenges faced during the #EndSARS protests.

Dr Mohammad Abubakar, the Minister of Environment, who was also at the meeting, reiterated Federal Government’s commitment to people-friendly policies and reforms.

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Economy

Kwara to Support Looted Businesses With N500 Million

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Kwara State to Fund Looted Businesses With N500 Million

Kwara State has joined the list of states supporting businesses that were looted and vandalised by hoodlums masquerading as #EndSARS protesters.

Mr. AbdulRahman AbdulRazaq, the Governor of Kwara State, during a visit to the Kwara Mall and Agro Mall on Saturday said the state will support affected businesses with N500 million, adding that the funding is to reduce the negative impact of the looting on the state economy.

On Sunday, in a statement issued by the governor’s Chief Press Secretary, Rafiu Ajakaye, the Governor said the vandalism and looting may bring several businesses to their knees and lead to massive job loss with an increase in poverty rate.

He said, in order to avoid this, “We are setting up a N500 million fund for those that were affected to access.”

“The application form is live and active on the state government’s website and can now be filled by interested parties. We are going to get them back as soon as possible,” he assured.

The governor, who described the situation as a mindless looting of people’s businesses, said there can be no justification for such criminal behavour in our society and commiserated with affected owners.

Speaking on accusation of hoarding of palliatives, the Governor said the palliatives were donated by Private sector led CACOVID to specific vulnerable households and were being distributed gradually across the state.

What happened was bareface stealing and some people are playing politics with it. This is not the time to play politics. It is a time for all hands to be on deck. It is not just Kwara they wanted to burn down. They wanted to burn the whole country down. I urge all of us to stand up and resist that,” he said.

“We engaged the #EndSARS youth in Kwara and it worked out for us. They were not violent. They had a five-point agenda which the federal government has agreed to and has started implementing. In Kwara State, we have also set up a judicial panel of inquiry to look into the allegation of Police abuse. I also visited Police barracks to see how we can improve the welfare of the Police in the state.

“While the hoodlums were looting (on Friday), I was holding a meeting with executives and members of the National Association of Kwara State Students and National Association of Nigeria Students, Kwara axis. It shows students and youths were not part of the looting. Those involved were just hoodlums and thieves,” he said.

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Economy

IMF to Review Nigeria’s Growth Forecast Amid Destruction of Businesses, Properties

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IMF Says it May Review Nigeria’s Growth  Amid Recent Development in the Country

Following the destruction of businesses and properties that trailed the #EndSARS protest, the International Monetary Fund (IMF) has said it may review the nation’s growth forecast in view of the new development in the country.

Abebe Selassie, the Director, African Department, International Monetary Fund, made the statement while responding to questions during a virtual IMF press conference on the economic outlook of Sub-Saharan Africa on Thursday.

According to him, the protest is difficult given that Lagos is a very important economic hub and contributes to the overall Nigeria activities.

Selassie said, “On the growth projections in Nigeria, I mean, these protests happened of course, after we had closed, after the period where the data we looked at in making the growth projections for this economic outlook.

“And much will depend really on how these protests evolve.

“Lagos of course, is a very important economic hub and contributes quite a bit of economic activity to overall Nigeria activities.

“So, if these persist and are showing significant effects on economic data, we will internalise them in due course.”

He further explained that the nation’s economy had been a difficult one in the last four years ever since oil prices plunged in 2015-16.

He said, “I think this is exactly why we have been on the record in Nigeria about how really critical it is to get all of the policy induced barriers out of the way to facilitate stronger economic growth.

“For the government to do more to raise revenues through the area of non-oil resources to be able to invest in health education which would, you know, allow people to be more successful at getting jobs but also improve the economy’s potential.

“So, I think that development agenda that Nigeria has, I think, has to be tackled with gusto and vigor so that the millions of jobs that the country needs can be created.”

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