The Nigerian National Petroleum Corporation (NNPC) and some companies in the oil and gas sector of the country have failed to remit a total revenue of $22.06 billion and N481.75 billion to the Federation Account.
 
This is contained in the latest report by the Nigerian Extractive Industries Transparency Initiative (NEITI) on Monday.
 
The report, which summarises unremitted revenue, losses and unreconciled differences from operations and transactions in the oil and gas sector, indicates that only NNPC defaulted to the tune of $19.04 billion and N424.57 billion.
 
It further shows that oil and gas producing companies were still withholding $152.69 million and N5.2 billion; companies involved in offshore processing contracts, $498.6 million; and Nigerian Petroleum Development Company (NPDC), $2.38 billion and N51.95 billion.
 
The report puts the total losses to the federation from crude oil production, processing and transportation at $3.04 billion and N60.99 billion, while unreconciled differences from the allocation, sale and remittance of proceeds from domestic crude allocated to NNPC was put at N317.48 billion.
 
In July, Ripples Nigeria reports that NNPC failed to remit a total of N198 billion to the Federation Account in 2016, an amount which brought the total under remittance of revenue from domestic crude oil sales by the corporation to over N4 trillion in the year.
 
“It was observed from the examination of NNPC report to Technical Sub- Committee of Federation Account Allocation Committee meeting held in December 2016 that accumulative total of N4,076,548,336,749.75 remained unremitted to the Federation Account by NNPC as at 31st December 2016.
 
“The total revenue unremitted as at 1st January 2016 from amounts payable into the Federation Account by NNPC was₦3,878,955,039,855.73. The sum of N1,198,138,355,860.30 was due in revenue to the Federation Account out of the total generated in 2016, however, NNPC paid the sum of N1,000,545,058,966.20 resulting in an amount withheld of N197,593,296,894.02.
 
“This brought the total amount withheld by NNPC from the Federation Account as at 31 December 2016 to N4,076,548,336,749.75,” the Auditor-General of the Federation, Anthony Ayine, stated in his 2016 annual report.
 
 
Source: The Ripples
The Central Bank of Nigeria (CBN) said it expects to maintain its tight monetary policy stance until the inflationary pressures ease towards it target band as it doesn’t see oil prices falling below $80 a barrel this year.
 
The Brent crude, against which Nigeria’s oil is priced, had hit its highest level of over $86 per barrel since November 2014 last Wednesday on the back of supply concerns in the international market ahead of United States (U.S.) sanctions on Iran’s oil sector expected to take effect next month.
 
So long as U.S. sanctions take effect on Iran in November, “I do not expect the price to close less than $80 this year,’’ CBN governor, Godwin Emefiele told reporters in London on Sunday.
 
The product, which serves as the nation’s major source of revenue, slumped from its 4-year highs during the week to close at $84.03 a barrel on Friday.
 
Rising oil prices will amount to increased revenue for the country as crude oil price in the 2018 Budget was benchmarked at $51 a barrel. This may cause an increment in capital release for the budget, resulting into excess liquidity and quickening inflation.
 
With CBN’s tight monetary policy position, interest rate among other policy rates at a relatively high levels will reduce liquidity in the Nigerian market and check demands, an intervention that would in turn moderate the macroeconomic variable.
 
The CBN continued to keep its interest rates on hold at a record high 14 percent since July 2016 to curtail inflationary pressures which had risen above its acceptable band of 6 percent to 9 percent for more than three years and accelerated in August for the first time in 19 months.
 
“The current state of tightening will continue until at least we see inflation attaining those levels that have been set” as a target, Emefiele said.
 
Emefiele said the apex bank would not relent in its intervention to support the exchange. “We will continue to intervene, we believe in a stable exchange rate regime,” he said.
 
Ripples Nigeria reports that the CBN had resisted several calls to allow the forces of demand and supply to determine the value of the Naira in the foreign exchange market. Rather, it fixed the exchange rate and continued support the local currency through its interventions.
 
These interventions, including foreign portfolio investors’ exit from emerging economies to take advantage of high yields U.S. as the US FED Reserve continued to raise its interest rate, plunged the nation’s external reserves to $43.92 billion as of October 4, 2018 from a high of $47.79 billion on July 5, 2018.
 
CBN’s spokesperson, Isaac Okoroafor, had last Wednesday affirmed that the current depletion in the nation’s foreign reserves was attributable to the two factors this media platform had pointed out.
 
While explaining that the major reason for Naira appreciation was due to the bank’s forex management strategy, which includes its support, Okoroafor had stated that, “the drop in our forex reserves is basically as a result of the capital flow reversals arising from rising interest rates in the United States.”
 
 
Source: Business Gist
The World Bank has lowered its growth forecast for Nigeria’s economy in 2018 to 1.9 percent as the growth continued to downsize in the oil and agriculture sector.
 
The latest estimate is 0.2 percent points lower than 2.1 percent growth the global financial body earlier projected for the nation’s economy in April.
 
The world bank said its decision to cut Nigeria’s 2018 growth estimate was occasioned by the reduction in the production volume of crude oil, the country’s main source of revenue, and contraction in the agricultural sector of the economy which was largely driven by the herder-farmer clashes.
 
“In Nigeria, declining oil production and contraction in the agriculture sector partially offset a rebound in the services sector and dampened non-oil growth, all of which affected economic recovery.
 
“Nigeria’s recovery faltered in the first half of the year. Oil production fell, partly due to pipeline closures.
 
“The agriculture sector contracted, as conflict over land between farmers and herders disrupted crop production, partially offsetting a rebound in the services sector and dampening non-oil growth,” the bank stated.
 
According to the National Bureau of Statistics (NBS), the oil sector of the economy contracted by -3.95 percent in the second quarter of 2018 from a year earlier, while the non-oil sector grew by 2.05 percent in real terms during the reference quarter.
 
The drop in the oil sector impeded growth in the Nigerian economy to 1.50 percent in the quarter down from 1.95 percent recorded in the preceding quarter.
 
Available statistics from NBS shows that the nation’s agricultural sector grew by 1.19 percent from a year earlier in real terms in the second quarter of 2018, representing a decrease by –1.82 percent points from the corresponding period in 2017.
 
The data further shows that Nigeria’s average daily oil production volume dropped in Q2 2018 to 1.84 million barrels per day after recording an average production volume of two (2) million barrels per day in the previous quarter.
 
The contraction in the Crude oil and Gas sectors was attributable to some production issues which, according to the Minister of Budget and National Planning, Sen. Udoma Udo Udoma, were being addressed by the Nigerian National Petroleum Corporation (NNPC).
 
But the Minister of State for Petroleum, Ibe Kachikwu, had last month noted that the decision to raise or cut production volume would be largely dependent on the prices of crude in the international market.
 
This indicates that there may soon be a rebound in the country’s crude oil production volume as the Brent crude, against which Nigeria’s oil is priced, hit its highest level of $84 per barrel since November 2014 last Monday.
 
The development was occasioned by supply concerns in the international market ahead of United States sanctions on Iran’s oil sector expected to take effect from next month.
 
 
Source: Business linking

The Nigerian National Petroleum Corporation (NNPC) has denied media reports alleging that the Nigeria Police Force (NPF) recovered $470.5 million and N8 billion of the corporation’s funds hidden in commercial banks.

It said it runs a transparent account which the Presidency, the Office of the Accountant-General of the Federation (AGF) and the Central Bank of Nigeria (CBN) were fully aware of and receive periodic status reports on balances yet to be remitted to Treasury Single Account (TSA) by commercial banks.

The Nigeria Police Force had claimed that the monies belonging to NNPC Brass Liquefied Natural Gas were hidden in some commercial banks and not remitted to the treasury single account in violation of the Federal Government’s directives.

According to the police, “The sum of Four Hundred and Seventy Million, Five Hundred and Nineteen Thousand, Eight Hundred and Eighty-Nine US Dollars and Ten Cent ($470,519,889.10) belonging to NNPC BRASS/LNG INVESTMENT hidden in some commercial banks after the directives of the Federal Government on TSA.

“The sum of Eight Billion, Eight Hundred and Seven Million, Two Hundred and Sixty Four Thousand, Eight Hundred and Thirty-Four Naira, Ninety-Six Kobo (NGN8,807,264,834.96) monies belonging to NNPC BRASS/LNG INVESTMENT, that was not remitted to TSA Account of the Federal Government was also recovered,” the Police had said in a statement.

But in a statement issued on Friday by NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the corporation said although a few commercial banks were yet to complete remittance of US dollar deposits to the TSA, it noted that it had no funds hidden in any commercial bank.

The state oil firm explained that the allegation was not only misplaced but equally misleading.

According to Ughamadu, following the implementation of TSA, the corporation had made a report to the Presidency on the failure of some commercial banks to complete transfer of US dollar deposits and a Presidential directive was issued for CBN to ensure that the funds were completely transferred to the corporation’s TSA in US dollars.

“Most of the commercial banks have since complied with the Presidential directive and completed transfer to the Corporation’s Treasury Single Account in US dollars, including the reported $470.5 million.

“On the purported recovery of N8 billion by the Nigeria Police Force, the Corporation is not aware of any change in the subsisting Presidential directive to the effect that all of the US dollar balances must be transferred to NNPC’s CBN Treasury Single Account in US dollars in addition, no such funds have been deposited into the Corporation’s CBN Treasury Single Account.

“Consequently, NNPC’s record of the US dollar funds still yet to be transferred by a few commercial banks cannot reflect the said recovery.

“While the Central Bank of Nigeria executes the Presidential directive to ensure complete transfer of US dollar funds to the Corporation’s CBN TSA, it is pertinent to reiterate our earlier position that NNPC will resist every attempt to subject these funds, which have been in the full view of Government, to five percent whistle blowing fees as this would be unreasonable and a sheer waste of public funds,” he said.

 

The Ripples

The Nigerian National Petroleum Corporation (NNPC) has said it recorded a trading surplus of ₦17.16 billion in April.
 
In a statement on Thursday in Abuja by the corporation’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the surplus indicated a ₦5.43 billion improvement, representing 46.29 percent on the trading surplus recorded in March.
 
According to him, the trading surplus was part of the highlight of the corporation’s Monthly Financial and Operations Report for April, 2018.
 
He said the report is the 33rd edition since NNPC commenced the publication of its financial and operations report on a monthly basis as part of efforts to instill a culture of transparency and keep stakeholders and the general public informed of its activities.
 
The NNPC boss added that the trading surplus was achieved through a combined higher performance by the upstream, midstream (refineries) and downstream sectors as well as a reduction in Corporate Headquarters’ operational expenditure.
 
He quoted the report to have said, “This enhanced performance is attributable to robust revenues from sales of crude oil and petroleum products by NPDC and PPMC as well as the upsurge in refineries’ performance, particularly in the Port Harcourt Refining Company (PHRC).”
 
On the gas production and supply front, the report indicated that the average daily production for April, 2018, stood at 8,054.46 billion cubic feet (bcf), out of which an average of 835.27 million metric standard cubic feet (mmscf), equivalent of 3,283 megawatts of electricity, was supplied to the power sector daily during the period under review.
 
“The result when compared with that of April, 2017, implies an increase of 496mw of power generated relative to same period last year,” Ughamadu said, quoting the report.
 
It further showed that in the period under review, a total of 1.61 billion litres of Premium Motor Spirit (petrol) was supplied by NNPC in furtherance of the zero fuel queue policy of the Federal Government.
 
The NNPC said it recorded a 48.21 percent reduction in the rate of pipeline vandalism which fell to 166 from 224 vandalized points in the previous month.
 
According to the report, the Aba-Enugu pipeline segment accounted for 78 vandalized points, representing 84.78 percent of total vandalized points on the nation’s network of products pipelines.
 
 
Source: The Ripples

Twenty four states of the federation sold Petroleum Motor Spirit (PMS), otherwise known as petrol, at an average price of over N145 per litre in August, according to a new report by the National Bureau of Statistics (NBS).

Recall that the Minister of State for Petroleum Resources, Ibe Kachikwu, had in May 2016 announced an upward review of PMS pump price by the Federal Government from N86.50 to N145.00, and directed filling stations across the country not to sell the product above the fixed price.

According to Kachikwu, the hike was the only way out of the exorbitant prices of N150 to N250 Nigerians were subjected to at many filling stations across the country during yuletide.

But in the latest PMS Price Watch report for August by NBS, only thirteen (13) states including the Federal Capital Territory (FCT), Abuja, complied with the directive, while the pump price of the product remained above the fixed price in other states in the review month.

According to the report, the average price paid by consumers for petrol increased by 1.7 percent to N146.90 per litre in August 2018 when compared with the same month in the previous year.

It said states with the highest average price of PMS in the review month were Borno, Kebbi and Kwara, which sold a litre at N157.00, N152.94 and N152.86, respectively.

It added that states with the lowest average price of the product for August 2018 were Ekiti, Katsina and Bauchi which sold at N144.23, N144.08 and N143.89, respectively.

Across geo-political zones, the North East zone recorded the highest average price of N148.81 per litre, while the South West zone sold the product at an average price of N145.01 per litre for the month under review.

 

The Ripples...

French oil major, Total and the Nigerian National Petroleum Corporation (NNPC) as well as their project partners will launch Egina crude at this year’s Asia Pacific Petroleum Conference (APPEC) in Singapore later this month.

This was contained in a copy of an invitation to the conference on Wednesday, Reuters reports.

The Singapore’s APPEC, scheduled to hold between September 24 – 26, is one of Asia’s biggest annual petroleum industry gatherings, during which producers, refiners and merchants sign and renew supply deals and exchange information.

Last month, a $3.3 billion worth Egina Floating Production, Storage and Offloading (FPSO) had sailed from LADOL Island in Lagos to its oil field located in Oil Mining Lease (OML) 130 located some 130 kilometers off the coast of Nigeria at water depths of over 1,500 meters.

The oil field was projected to raise Nigeria’s crude oil production by 200,000 barrels per day, an approximate of 10 percent of the country’s total oil production output, when it comes on stream in December.

The project, built by Samsung Heavy Industries of Korea (SHI) for the Egina oil field was primarily operated in Nigeria by the global oil giant, Total, at a cost of $16 billion.

In October last year, the Egina FPSO had sailed from the quayside at Samsung Yard in Geoje, South Korea, before arriving at the Samsung Yard (SHI-MCI FZE quayside) in Lagos in January 2018.

Thereafter, it was fabricated and integrated locally at the yard by Samsung Heavy Industries Nigeria Limited to accelerate the pace of Nigeria’s industrial fabric, transfer of technology and make the nation the hub of FPSO integration in Africa.

The FPSO, weighing close to 220,000 metric tons and measuring 330 meters long by 60 meters wide, is reputed as the largest ever built by Total.

Also, Saudi Arabia’s state-owned oil giant Aramco will team up with South Korean refiner S-Oil Corp for a joint reception at the conference, according to two industry sources.

Aramco became the single largest shareholder of S-Oil in January 2015, part of its drive to expand its footprint in the downstream petroleum sector and establish commercial offices in global oil trading hubs like Singapore.

   

Vanguard...

The Minister of State for Petroleum Resources, Ibe Kachikwu, on Tuesday said there were no plans by Federal Government to sell its stakes in the Nigerian Liquefied and Natural Gas (NLNG) Limited.
 
The Federal Government has 49 percent equity holding in the NLNG, Shell Gas B.V owns 25.6 percent, Total has 15 percent of the shares, while Eni international owns 10.4 percent share holding.
 
The minister made the disclosure while answering questions from the House of Representatives Committee on Gas Resources and Allied Matters in Abuja.
 
Kachikwu, who was represented by the Director of Gas Resources in the ministry, Esther Ifejika, noted that the ministry was not aware of any plan to sell the company.
 
According to the minister, “The ministry is not aware of any plan by the Federal Government to sell the NLNG.”
 
In May, the House had ordered an investigation into the allegation, the order followed a motion raised by Hon Randolph Oruene-Brown over plans by the Federal Government to generate money to inject into the nation’s economy.
 
“(The House is) aware that the Minister of Budget and National Planning, Udoma Udo-Udoma, stated that one of the ways to fund the plan would be through the sale of some national assets and the proceeds reinvested in the economy to raise the needed capital for infrastructural development.
 
“(The House is) also aware that the NLNG is one of the most successful ventures that Nigeria has embarked upon when it started from train one through to the sixth train and now the seventh train in the offing.
 
“The House is worried that the Revenue Mobilisation Allocation and Fiscal Commission and the Nigeria Labour Congress, among other organisations, have seriously frowned on this move and warned the Federal Government against the proposed sale of national assets, especially the NLNG,” Oruene-Brown had said.
 
 
Source: Business Insider
NNPC, Nigeria’s cash cow refused to release oil money for sharing
 
The Nigerian National Petroleum Corporation (NNPC) has unveiled plans to set up a subsidiary to provide refueling services to ships and other ocean-going vessels.
 
A statement by its spokesman, Mr. Ndu Ughamadu, in Abuja on Wednesday, said the move was to consolidate its foothold on the shipping business in Nigeria and boost profitability.
 
It said the Group General Manager, NNPC Shipping, Mrs. Aisha Katagum, disclosed this in the corporation’s in-house journal. She said: “Actually, the NNPC Group Managing Director (GMD) is also very keen on that.
 
“He has directed the Corporate Planning and Strategy (CP&S) Division to come up with a business model for us to see how it could operate.”
 
According to her, the bunkering subsidiary is most likely going to be an incorporated company like Nidas, a subsidiary under NNPC Shipping Division. She added that the proposed company would likely be domiciled in the NNPC Shipping Division too.
 
“I’m sure it’s going to be a big business because we have so many vessels that come into the West African Coast. This year alone, over 120 vessels have brought imports for us.” She said
 
Nikorma and Marine Logistics are two other downstream subsidiaries under the NNPC Shipping Division. While Nikorma engages in shipping and transportation of energy products, Marine Logistics on the other hand, provides logistics services to the crude and petroleum products and gas sub-sector.
 
The Marine Logistics have the mandate to effect demurrage reduction and ensure safe and efficient coastal distribution of petroleum products.
 
 
NAN..
Indications have emerged that the nation may soon begin to earn less from crude oil as the monthly volume of Nigerian oil imports into the United States dropped to 2.89 million barrels in May, the lowest since February 2016.
 
Crude oil accounts for over 70 percent of the Nigeria’s revenue and more than 95 percent of its foreign exchange earnings, while the United States (U.S) was the country’s fourth largest export destination, according to a recent Foreign Trade Statistics by the National Bureau of Statistics (NBS).
 
The latest data obtained by our correspondent from the US Energy Information Administration (EIA) during the weekend showed that the United States reduced its importation of Nigerian crude oil by 62.65 percent from 7.75 million barrels recorded in April.
 
Nigeria may start earning less as U.S slashes oil importation by 62%
 
The depreciation in the demand of the commodity, which was the largest monthly decline in more than three years, was occasioned by the increase in the production of the U.S crude.
 
Read Also: Nigeria earns $26bn from oil in 7 months as oil prices rise
 
An analysis of the data from the statistical arm of the U.S Energy Department revealed that, the country imported 10.03 million barrels of Nigerian crude in January.
 
It, however, reduced the importation of the commodity for the first time this year from 10.34 million barrels in February to 3.92 barrels in March, indicating 62.08 percent drop. In April, 2018, the U.S bought 7.7 million barrels of the commodity.
 
Within the first five months of 2018, the total Nigerian crude imports by the U.S stood at 34.93 million barrels, this is over 20 percent drop from 43.83 million barrels imported in the corresponding period last year.
 
The U.S crude imports from Nigeria was on a steady decline since it peaked 368.42 million barrels in 2010, it fell to 21.46 million barrels in 2014 and 19.86 million barrels in 2015 following the drop in the prices of crude oil in the international market.
 
However, the oil imports rose to 75.81 million barrels in 2016 and further increased to 112.92 million barrels in 2017.
 
But since crude oil production in the U.S began to boom in recent months, reaching 10.9 million barrels per day (mbpd) in June and 11 mbpd two weeks ago from 2.33 mbpd in April, the country has continued reduce its crude importation.
 
The EIA had reported last week that the U.S net import of the commodity fell by 1.05 mbpd to an average of 6.36 mbpd, with 10.7 mbpd and 1.7 mbpd as projections for the country’s crude oil production for 2018 and 2019, respectively.
 
 
Ripples news.
 
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