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NNPC’s Losses Rise by 1,556% in One Month

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  • NNPC’s Losses Rise by 1,556% in One Month

The group financial and operations losses of the Nigerian National Petroleum Corporation increased by 1,556.1 per cent from October to November 2017, the latest figures released by the oil firm revealed.

Findings showed that the corporation’s losses had dropped from N2.81bn in September 2017 to N400m in October. But this could not be sustained as the oil firm’s deficit rose to a high of N6.79bn in November last year.

The NNPC, in its November 2017 report, stated that the drop in performance was due to reduced revenue in the downstream value chain as well as the shutdown of two of its refineries.

According to the corporation, the refineries are the Kaduna Refining and Petrochemical Company and the Port Harcourt Refining Company.

The oil firm said, “The November 2017 report indicated a trading deficit of N6.79bn, which is comparatively higher than the previous month’s deficit of N0.41bn. This represents N6.39bn increase in trading deficit compared to the October 2017 performance.

“The drop in the performance is attributable to the increased cost in upstream activities as well as the reduced revenue in the downstream value chain occasioned by high crude oil inventory in refineries due to unplanned operational shutdown of the KRPC and the PHRC, which led to increased losses from the refineries in November 2017.”

A further analysis of the report showed that for November 2017, Nigeria’s three refineries produced 55,187 metric tonnes of finished petroleum products and 39,562MT of intermediate products out of 107,748MT of crude processed at a combined capacity utilisation of 5.92 per cent, compared to 17.63 per cent combined capacity utilisation achieved in October 2017.

It said the decrease in operational performance recorded in November 2017 was attributed to the decline in crude processed by the Warri Refining and Petrochemical Company while the PHRC and the KRPC remained shut during the month under review.

The report also stated that in November 2017, a total of 90 pipeline points were vandalised; 41 pipeline points failed to be welded; while six pipeline points were either ruptured or clamped.

“Thus, 136 pipeline points were destroyed in the month under review. The PHC-Aba and Aba-Enugu pipeline segment accounted for almost 67 per cent of the affected pipeline points,” it said.

On crude production, the NNPC stated that in October 2017, Nigeria’s production averaged 1.95 million barrels per day, representing a slight increase over September 2017 production, but up by 9.86 per cent over October 2016 performance.

It said the stability in production was attributed to the resumption of export activities at the Forcados Terminal after many months of non-operational activities, as well as the oil firm’s engagement with various stakeholders.

The report noted that some of the major negative impact to production included shut-in of over 200,000 bpd at Qua Iboe, Bonny and Akpo terminals.

It said the November 2017 national gas production stood at 236.97 billion standard cubic feet, translating to an average daily production of 7,899.01mmscfd, representing 0.03 per cent decrease compared to the previous month.

“The daily average natural gas supply to gas power plants amounted to 743.06mmscfd or equivalent to power generation of 3,115 megawatts, and is 7.98 per cent higher than the previous month and 32.92 per cent higher than the corresponding supply recorded in November 2016,” the NNPC said.

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

Delta State Gov Okowa Presents N378.48 Billion Budget for 2021

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Ifeanyi Okowa Presents N378.48 Billion Proposed Budget for 2021

The Executive Governor of Delta State, Senator (Dr) Ifeanyi Okowa, on Tuesday presented a N378.48 billion budget to the state’s House of Assembly for consideration for the 2021 fiscal year.

The budget christened “Budget of Recovery” appropriated N207.52 billion for Capital Expenditure while Recurrent Expenditure was allocated N171.32 billion.

According to the Governor, capital expenditure accounted for 54.76 percent of the budget while 45.24 percent represented recurrent expenditure.

He explained that the allocations were in line with his administration’s agenda of spending more on projects and programmes that would impact positively on the socio-economic well-being of the people of Delta.

The proposed budget for 2021 is N96.2 billion or 34.05 per cent more than the N282 billion approved for 2020.

The governor said that the 2021 budget proposals reinforced the state government’s commitment to road infrastructure, education, health, job and wealth creation programmes as the principal-drivers of the Stronger Delta agenda.

According to him, N113 billion, representing 89.94 per cent of the capital budget is allocated to the economic sector while N35 billion is allocated to the social sector; the administration sector got 10.93 billion and the regional sector, N42 billion.

“In 2021, we propose to spend N66.66 billion on Road Infrastructure; N6.79 billion on Health; Education will gulp N23.55 billion; Agriculture, N2.04 billion and Water Sector, N1.83 billion.

“Job and Wealth Creation Bureau will gulp N1 Billion and Youth Development, N1.25 billion. These key sectors are very essential in our 2021 budget,” Okowa said.

Okowa also explained that due to the negative impact of COVID-19 on the economy and the world at large, government spending was significantly affected by the global pandemic and that Delta was no exception.

The governor, therefore, stated that “the proposed 2021 Budget for Delta is primarily focused on protecting and supporting our people in a COVID-19 environment, accelerating infrastructural renewal, incentivizing growth, enhancing job creation, engendering social inclusion and developing sustainably.

“Overall, the proposed 2021 Budget is predicated on inclusive economic growth that is sustainable and people-centred, with strengthening fiscal sustainability through increased efficiency in spending, improved revenue mobilization and debt sustainability.

“It also entails improving processes and systems in Public Financial Management, and Monitoring and Evaluation, to bolster better public sector service delivery.”

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Economy

FG to Create 5 Million Jobs for Nigerian Youths in the Power Sector

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Federal Government Plans to Create 5 Million Jobs for Youths in the Power Sector

The Federal Government is working on creating at least 5 million jobs for Nigerian youths in the power sector, according to the Minister of Power, Engr. Sale Mamman.

The minister, who spoke at a stakeholder meeting in Jalingo, Taraba State, said the youths should foster peace and harmony as the Federal Government, in line with some of their demands, is working on creating massive job opportunities for them in the power sector.

He said the initiative is part of president Muhammadu Buhari’s plans to lift 100 million people out of poverty within 10 years.

Mamman explained that the youths will benefit from the Siemens Presidential Power Initiative as more opportunities will be available in renewable energy, installation and the maintenance of meters.

He said: “Plans are ongoing to kick start this and it is being designed to ensure that majority of the firms and the installers are Nigerian youths. This is also part of the commitment of President Muhammadu Buhari’s focus on lifting 100 million people out of poverty within 10 years.

“From the briefings I have received so far, the youths are taking up opportunities in this aspect as well as in renewable energy. This is another way the government will be empowering young Nigerians as the local assembly; installation and the maintenance of these meters are largely handled by our industrious youths.”

“The minister urged the youths to vigilant and resist and attempt by some people to use them to incite violence for their sinister motive, noting that the Federal Government was tailoring more programmes for the youths through the Siemens Presidential Power Initiative and in building capacity on renewable energy.”

“There is the assurance of Mr. President that Nigerians will be beneficiaries of the Siemens project which will turn around the power supply situation of Nigeria. When this happens, industries will be revived and SMEs driven by youths will thrive more.”

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Economy

Lagos Loses N1 Trillion to #EndSARS Protest, a Year Budget – Gov

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Lagos Needs N1 Trillion to Fix Vandalised Infrastructure, a Year Budget – Gov

The Governor of Lagos State, Babajide Sanwo-Olu, has puts the total economic cost of past week destruction and vandalism in the state at about N1 trillion.

Sanwo-olu, who spoke with the speaker of the House of Representatives, Hon. Femi Gbajabiamila, that was on a fact-finding visit to Lagos on Sunday, said the state may spend up to N1 trillion to fix damages done to infrastructure.

Speaking on the situation, Femi Gbajabiamila, said “The House of Representatives will do all it can to compensate all those who suffered brutality including policemen that lost their lives in the process.

“Also whatever the house can do in rebuilding Lagos and other states it will do. We are now in a state of reconstruction. What must be done will be done.

“I learnt from the governor of Lagos State that it will take N1.0 trillion to rebuild what had been lost and I asked him what is the budget size of the state he said about N1.0 trillion. You can see we are moving backward.

Rotimi Akeredolu, Chairman of the South West Governors, who was part of the visit, stated, “We are indeed surprised at the extent of damage to lives and properties in Lagos. We will be right to say Lagos was turned into a war zone.

“We are deeply concerned with the ease with which public buildings, utilities, police stations and investments of our people have been burnt despite the proximity of security agencies to those areas. However, while responding to the total number of government’s buildings burnt among others,” Lagos State Commissioner for Information and Strategy, Mr Gbenga Omotoso, stated.

We are still counting. The state is still taking inventories of all that happened and not until all that is concluded we can’t not ascertained for now the total number of burnt structures. But I can tell you it’s very huge.

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