Connect with us

Headlines

Nigeria: NNPC recorded a zero remittance to the Federation Account in January.

Published

on

By Derrick Bangura.

Despite rising international oil prices, the Nigerian National Petroleum Company (NNPC) Limited failed to return its statutory funding to the Federation Account, which is shared by the federal, state, and local governments, before January 2022.

It was the second time in less than a year that the national oil company (NOC) was unable to deliver a kobo to the joint account, following the same incident in April of last year, when the business announced zero remittance for the month.
In addition, a document detailing NNPC’s activities for the month under review, presented during the Federation Account Allocation Committee (FAAC) held last Thursday, indicated that the NOC expended a whopping N210.38 billion on petrol subsidy during the month.

Advertisement

THISDAY recalls that with a deficit of approximately N2 trillion out of its projected N2.511 trillion, the NNPC was unable to remit roughly 80 percent of its projected contribution to the Federation Account in 2021.

For the entire 12 months of last year, the NNPC disbursed N542 billion as against the budgeted N2.511 trillion, despite a monthly contribution estimate of N209.3 billion. The N542 billion represented just about 21. 6 percent of the total expected contribution of the NNPC to the joint account.

The development underscored how a combination of factors, including declining oil production, rising subsidy payments, and high oil production costs, have hobbled the organization’s performance despite the increasing oil prices which overshot $105 per barrel last week.

Advertisement

Earlier in the year, President Muhammadu Buhari had backtracked on the planned full deregulation of the downstream sector, including the wholesale removal of petrol subsidy, citing the negative impact it would have on the poor in the country.

For decades, Nigeria’s attempt to fully free the downstream oil and gas industry has met with a brick wall. The latest effort has also been pushed forward by about 18 months, effectively exempting the current administration which will exit by May 2023 from any burden.

A THISDAY’s analysis in January 2022, had shown that total deductions for petrol subsidy or what the government terms under-recovery was about N1.43 trillion for 2021.

Advertisement

The journey to zero remittance in January was envisaged by close watchers of the industry as the NNPC only delivered a paltry N14.8 billion, N10.54 billion, and N20 billion in October, November, and December respectively last year.

In December, the three tiers of government shared N675.946 billion as FAAC revenue for November while in January, it shared N699.82 billion for December.

But the total funds shared in February markedly decreased to N574.66 billion, raising concerns over the capacity of sub-nationals to meet their current financial obligations.

Advertisement

The amount shared by the federal, state, and local governments dropped to a four-year low this month, a huge blow to states that are already struggling to survive.
But in the latest monthly presentation to FAAC held on February 24, obtained by TheCable, NNPC pointed out that the N210 billion shortfall included a December 2021 value of N176.48 billion plus the outstanding value shortfall recovery of N33.90 billion accruing from 2021.

Furthermore, the oil firm stated that it would deduct N242.5 billion, which was about N143.7 billion for January 2022 recovery and November spot arrears of N98.8 billion, during next month’s FAAC meeting. It, however, stated that the national oil company recorded N383 billion as gross revenue from crude oil sales in January, a dip from the projected N414.9 billion.

The fall would significantly negatively affect states that are presently experiencing fiscal stress and had been kicking against deductions of the shortfall from FAAC remittances.

Advertisement

While an ad-hoc committee of the National Economic Council (NEC) had recommended gradual deregulation of petrol prices by February 2022 to reduce the pressure on revenue accruing to states, recently Buhari asked the National Assembly to approve the N2.557 trillion budget for petrol subsidy in 2022.

Meanwhile, the Organisation of Petroleum Exporting Countries (OPEC) and its allies OPEC+ have revised down forecast for the 2022 oil market surplus by about 200,000 barrels per day (BPD) to 1.1 million bpd, according to a base scenario in a technical committee report seen by Reuters on Sunday.

The data which is part of a report the Joint Technical Committee (JTC) prepares for OPEC+ ministers – also showed stocks in the developed world standing at 62 million barrels below the 2015 to 2019 average by the end of the year.

Advertisement

In a previous forecast, it had predicted the stocks would reach 20 million barrels above the same average by that point.

Ministers from OPEC and its allies, led by Russia, will meet on March 2 to decide whether to increase output by 400,000 barrels per day in April.
According to Reuters, the group’s output agreement has shown no fractures so far following Russia’s invasion of Ukraine, and the organization is likely to continue to a planned output increase despite crude exceeding $100 per barrel.

Data from a separate JTC study also showed that the group produced 972,000 bpd less than the deal’s targets in January, compared to 824,000 fewer in December.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Headlines

Noble Ladies Champion Women’s Financial Independence at Grand Inauguration in Abuja

Published

on

Women from diverse backgrounds across Nigeria and beyond gathered at the Art and Culture Auditorium, Abuja, for the inauguration and convention of the Noble Ladies Association. The event, led by the association’s Founder and “visionary and polished Queen Mother,” Mrs. Margaret Chigozie Mkpuma, was a colourful display of feminine elegance, empowerment, and ambition.

The highly anticipated gathering, attended by over 700 members and counting, reflected the association’s mission to help women realise their potential while shifting mindsets away from dependency and over-glamorization of the ‘white collar job.’ According to the group, progress can be better achieved through innovation and creativity. “When a woman is able to earn and blossom on her own she has no reason to look at herself as a second fiddle,” the association stated.

One of the association’s standout initiatives is its women-only investment platform, which currently offers a minimum entry of ₦100,000 with a return of ₦130,000 over 30 days—an interest rate of 30 percent. Some members invest as much as ₦1 million, enjoying the same return rate. Mrs. Mkpuma explained that the scheme focuses on women because “women bear the greater brunt of poverty” and the platform seeks “to offer equity in the absence of economic equality.”

Advertisement

Education is also central to the Noble Ladies’ mission, regardless of age. Their mantra, “start again from where you stopped,” encourages women to return to school or upgrade their skills at any stage in life. The association believes that financial stability is vital in protecting women from cultural practices that dispossess widows of their late husbands’ assets, while also enabling them to raise morally and socially grounded families.

Founded on the vision of enhancing women’s skills and achieving financial stability, the association rests on a value system that discourages pity and promotes purpose. “You have a purpose and you build on that purpose to achieve great potentials and emancipation,” Mrs. Mkpuma said.

A criminologist by training and entrepreneur by practice, she cautions against idleness while waiting for formal employment. “There are billions in the informal and non-formal sectors waiting to be made,” she said, rejecting the “new normal of begging” and urging people to “be more introspective to find their purpose in life and hold on to it.”

Advertisement

Mrs. Mkpuma’s management style keeps members actively engaged, focusing on vocational skills and training to prepare them for competitive markets. She is exploring “innovative integration of uncommon technologies” and is already in talks with international franchises to invest in Nigeria, with Noble Ladies as first beneficiaries.

The association’s core values include mutual respect, innovation, forward-thinking, equal opportunity, and financial emancipation. With plans underway to establish a secretariat in the heart of Abuja, the group aims to expand its impact.

The event drew high-profile guests, including former Inspector General of Police, Mike Okiro, and a host of VIPs, marking a significant milestone in the association’s drive for women’s empowerment.

Advertisement
Continue Reading

Headlines

NEPZA, FCT agree to create world-class FTZ environment

Published

on

NEPZA, FCT agree to create world-class FTZ environment

The Nigeria Export Processing Zones Authority (NEPZA) has stepped in to resolve the dispute between the Federal Capital Territory Administration and the Abuja Technology Village (ATV), a licensed Free Trade Zone, over the potential revocation of the zone’s land title.
Dr. Olufemi Ogunyemi, the Managing Director of NEPZA, urged ATV operators and investors to withdraw the lawsuit filed against the FCT administration immediately to facilitate a roundtable negotiation.
Dr. Ogunyemi delivered the charge during a courtesy visit to the Minister of the Federal Capital Territory, Barrister Nyesom Wike, on Thursday in Abuja.
You will recall that the ATV operators responded to the revocation notice issued by the FCT administration with a lawsuit.
Dr. Ogunyemi stated that the continued support for the growth of the Free Trade Zones Scheme would benefit the nation’s economy and the FCT’s development, emphasizing that the FCT administration recognized the scheme’s potential to accelerate industrialisation.
Dr. Ogunyemi, also the Chief Executive Officer of NEPZA, expressed his delight at the steps taken by the FCT minister to expand the economic frontier of the FCT through the proposed Abuja City Walk (ACW) project.
Dr. Ogunyemi further explained that the Authority was preparing to assess all the 63 licensed Free Trade Zones across the country with the view to vetting their functionality and contributions to the nation’s Foreign Direct Investment and export drives.
“I have come to discuss with His Excellency, the Minister of the Federal Capital Territory on the importance of supporting the ATV to succeed while also promoting the development of the Abuja City Walk project. We must work together to achieve this for the good of our nation,” he said.
On his part, the FCT Minister reiterated his unflinching determination to work towards President Bola Ahmed Tinubu’s Renewed Hope Agenda by bringing FDI to the FCT.
“We must fulfil Mr. President’s promises regarding industrialization, trade, and investment. In this context, the FCT will collaborate with NEPZA to review the future of ATV, a zone that was sponsored and supported by the FCT administration,” Wike said.
Barrister Wike also said that efforts were underway to fast-track the industrialisation process of the territory with the construction of the Abuja City Walk.
The minister further said the Abuja City Walk project was planned to cover over 200 hectares in the Abuja Technology Village corridor along Airport Road.
According to him, the business ecosystem aimed to create a lively, mixed-use urban center with residential, commercial, retail, hospitality, medical, and institutional facilities.
He added that the ACW would turn out to be a high-definition and world-class project that would give this administration’s Renewed Hope Agenda true meaning in the North-Central Region of the country.
Barrister Wike also indicated his continued pursuit of land and property owners who failed to fulfil their obligations to the FCT in his determination to develop the territory.

Continue Reading

Headlines

Benue IDPs block highway, demand return to ancestral homes

Published

on

Vehicular movement along the Yelwata axis of the Benue–Nasarawa highway was brought to a standstill on Wednesday as Internally Displaced Persons, IDPs, staged a protest, demanding immediate return to their ancestral homes.

The protesters, believed to be victims of persistent attacks by suspected herdsmen, blocked both lanes of the busy highway for several hours, chanting “We want to go back home”.

The protest caused disruption, leaving hundreds of motorists and passengers stranded.

Advertisement

Eyewitnesses said the displaced persons, many of whom have spent years in overcrowded IDP camps, are expressing deep frustration over the government’s delay in restoring security to their communities.

“We have suffered enough. We want to return to our homes and farms,” one of the protesters told reporters at the scene.

Security personnel were reportedly deployed to monitor the situation and prevent any escalation, though tensions remained high as of press time.

Advertisement

Efforts to reach the Benue State Emergency Management Agency, SEMA, and other relevant authorities for comment were unsuccessful.

Continue Reading

You May Like

Copyright © 2025 Acces News Magazine - All Right Reserved.

Verified by MonsterInsights