Connect with us

Headlines

Total Outstanding Petrol Subsidy Debt Hits N1.04tn

Published

on

With total spending on the controversial petrol subsidy now exceeding oil revenue, the Nigerian National Petroleum Company (NNPCL) outstanding debt on what it terms under-recovery hit N1.044 trillion in July.

Data from the National Oil Company (NOC) released late Thursday indicated that in July, the firm also deducted N448.7 billion for the purpose, a record high since the re-emergence of subsidy payment early last year.
The document detailing the NNPCL’s presentation to the Federation Account Allocation Committee (FAAC) last week, also showed that there was no receipt from export crude oil. There was no explanation for the zero revenue from export crude.
Furthermore, a tie-back to June showed that the overall NNPCL crude oil lifting for the sixth month in terms of export and domestic, was 7.27 million barrels , a decrease of 18.68 per cent relative to 8.94 million barrels lifted in May.

In the whole of July, it also showed that just about N400 billion was the gross domestic crude oil and gas receipts.
This implies that the amount spent on petrol subsidy for the month exceeded the total oil sold for the month by roughly N48 billion.
In addition, Nigeria LNG feedstock gas receipt was $93.88 million, inclusive of $9.39 million arrears, with $2.04 million being miscellaneous receipts, the NNPCL document stated.
“The sum of N400,469,663,160.14 is the gross domestic crude oil and gas revenue for the month of July 2022.

Advertisement

“The value shortfall on the importation of Premium Motor Spirit or petrol recovered from July 2022 proceeds is N448,782,119,154.91, while the outstanding balance carried forward is N1.044,514,420,619.13,” the data showed.

Also, like it has done since this year, the NNPCL did not remit a kobo to the federation account. In fact, the column for that purpose has now been deleted from the document. This may not be unconnected with the company’s recent ‘commercialisation’.

For the whole of the month, no project outlined by the NOC was paid for, aside the one for subsidy, according to a THISDAY analysis of the information.
Some of the regular calendarised payments by the NNPCL include those for national domestic gas development, frontier exploration services and renewable energy development.

Advertisement

Others, according to the document signed by one Nasir Usman on behalf of the Chief Financial Officer NNPCL , include refinery rehabilitation, the Nigeria-Morroco pipeline , among others.
A few weeks ago, THISDAY reported that in the first half of 2022, petrol subsidy claims surpassed oil and gas revenue by a whopping N210 billion, with the NNPCL recording N2.39 trillion as gross revenue from oil and gas receipts, while subsidy claims amounted to N2.6 trillion.
The data further revealed that N1.59 trillion was used to cover part of the subsidy costs in the last six months, leaving an outstanding balance of N1.01 trillion.

Nigeria is currently facing an economic crisis with rising debt servicing costs and fuel subsidy payments, which from all indications could exceed the budgeted N4 trillion this year as well as a massive drawdown on its Excess Crude Account (ECA).

Coupled with that, it has for the first time in recent history been unable to take advantage of rising international oil prices because it cannot meet its Organisation of Petroleum Exporting Countries (OPEC) production quota. Crude oil has sold for above $100 for most of this year.
An analysis of the latest material released by the NNPCL last night indicated that in January, February and March 2022, petrol subsidy payments gulped N210.38 billion, N219.78 billion, and N245.77 billion, respectively while in April, Nigeria spent N271 billion and N327.07 billion in May 2022 to cater for the shortfall of the importation of petrol.

Advertisement

For the month of June, the national oil company deducted N319.18 billion from the federation account as payment for petrol subsidy, even as it hit a record N448.7 billion in the latest version of the document.

 

READ ALSO: THE FUTURE OF WEST AFRICAN AGRICULTURE

Advertisement

 

To compound the current subsidy crisis, Nigeria does not know its exact daily consumption of petrol and is believed to be subsidising neighbouring countries due to the arbitrage created by the subsidy in Nigeria.
The problem is expected to even worsen in 2023 with a current projection of as much as N6.72 trillion by the country in its 2023-2035 medium-term expenditure framework & fiscal strategy paper (MTEF&FSP).

Earlier in the year, the federal government deferred the planned petrol subsidy removal for 18 months, saying the impact would be too negative on the poor and the less privileged.
President Muhammadu Buhari also recently slammed calls by the World Bank and the International Monetary Fund (IMF) for subsidy removal, arguing that even in the West, governments were paying all kinds of subsidies on behalf of their people.

Advertisement

Nigeria imports all its petrol because it does not refine a drop of the product in the country. All the refineries have been non-functional for years. The country operates a swap oil-for-petrol regime which is largely seen as opaque.

It has blamed its inability to meet its production allocation due to massive oil theft, deteriorating upstream infrastructure, lack of upstream investment as well as outright sabotage of its assets.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

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

Headlines

NNPC Foundation Trains Over 3,000 Southwest Farmers in Climate-Smart Agriculture

Published

on

In a bid to promote food security and sustainable agricultural practices, the NNPC Foundation has successfully trained more than 3,000 farmers in the South-West geopolitical zone on climate-smart and modern farming techniques.

The training, which concluded on Friday in Ikorodu, Lagos, marked the end of the Southwest phase of the foundation’s pilot programme aimed at empowering local farmers and boosting agro-productivity.

Speaking at the closing ceremony, Managing Director of the NNPC Foundation, Mrs. Emmanuella Arukwe, described the initiative as a milestone in the lives of thousands of farmers.

Advertisement

“Today marks the formal conclusion of the first phase of a national journey that speaks to resilience, food security, and economic empowerment,” Arukwe said.
“What began as a bold decision to support small holder farmers has translated into tangible action across three geopolitical zones (South-East, South-South, and South-West) in Southern Nigeria.”

She disclosed that a total of 3,860 vulnerable farmers across 10 locations in the three regions were trained in sustainable farming practices that improve productivity and market access.

“This achievement is not just a number, but a milestone in the lives of real people and real communities. We were able to strengthen farmers’ capacity to adapt to climate change,” she added.
“Through the training, we were able to improve access to markets, promote inclusive agriculture and especially gender representation. We also trained them on enhancing food production through sustainable techniques.”

Advertisement

Arukwe noted that the programme would now move to the North-West, North-Central, and North-East zones as part of its next phase, saying the foundation is committed to supporting livelihoods nationwide.

“This is only Phase One. We will now turn our focus to the North-West, North-Central, and North-East zones. What we have achieved in the South will inform and strengthen our next steps,” she said.
“The NNPC Foundation will continue this mission, to support livelihoods, build resilience, and empower the hands that feed our families and beyond.
We have decided that most times you get a lot of requests from people asking us to give them palliatives and all kinds of things to help them.
But we think it is much better to teach people to fish than just give them fish so they can continue,” Arukwe explained.

Chairman of Ikorodu Local Government, Mr. Wasiu Adesina, while commending the initiative, urged the beneficiaries to apply the knowledge gained to boost productivity and profitability.

Advertisement

“As we all know, agriculture is the bedrock of any nation. Without agriculture, there will not be a nation, because there will be no food to eat,” Adesina stated.
“It is the farmers that produce our food, and it is important that we train our farmers with new techniques in agriculture, and that is exactly what the NNPC Foundation is doing.

“To the farmers, you have to take advantage of this training and face the farming squarely. In some great countries like the United States and the United Kingdom, farmers are the most richest people in those countries.

“This is because they make a lot of money from farming. We need to inculcate that habit in Nigeria and develop ideas in farming. Even after my tenure, I am going back to farming, so, maybe I will ask the NNPC Foundation to train me so that I also join you to be a farmer.”

Advertisement

He appealed to the foundation to provide further empowerment for the trained farmers to help them kickstart their agricultural ventures.

“If the farmers have land for farming, I believe the foundation will provide financial aid to keep their farms running,” Adesina added.

Also speaking at the event, the Lagos State Commissioner for Agriculture and Food Systems, Ms. Abisola Olusanya, represented by the Director of Fisheries, Mrs. Osunkoya Daisi, lauded the Foundation’s efforts in bolstering the state’s food security.

Advertisement

“On behalf of the Lagos State Government, we would like to express our sincere appreciation to NNPC Foundation for training our farmers and for training all the farmers all over the country,” she said.
“Definitely, the training will help improve food production. We can see the impact of climate change effects in agriculture. I am sure farmers have been equipped with climate-smart agriculture techniques to improve production.”

The NNPC Foundation Ltd/Gte is the Corporate Social Responsibility (CSR) arm of the Nigerian National Petroleum Company (NNPC) Limited. It was incorporated in February 2023 to manage the company’s CSR initiatives and enhance Nigeria’s socio-economic development.

Advertisement
Continue Reading

Education

NUC grants ESUT full accreditation for Law, 7 other programmes

Published

on

The National Universities Commission, (NUC), has given full accreditation to the Enugu State University of Science and Technology (ESUT), for her Law programme.

According to the Public Relations Officer of ESUT, Mr Ikechukwu Ani, this is contained in a letter addressed to the institution’s Vice Chancellor, Prof. Aloysius Okolie, on Wednesday in Enugu by the NUC.

Ani said that in the letter, the Executive Secretary of NUC, Prof. Abdullahi Ribadu said the report was contained in the result of the October/November 2024 accreditation of academic programmes in Nigerian universities.

Advertisement

Ani disclosed that other programmes in the institution accredited by the NUC include Master of Science in Business Management; Education Computer Science; Education Physics and Agricultural Engineering.

Other accredited programmes he said were Quantity Surveying; Urban and Regional Planning; and Applied Microbiology.

He said that the letter quoted Section 10 (1) of the Education National Minimum Standard and Establishment of Institutions, Act CAP E3, Laws of the Federation of Nigeria 2004 as empowering the NUC to lay down minimum academic standards for all academic programmes taught in Nigerian universities.

Advertisement

He said the session also empowers the NUC to accredit such programmes.

Continue Reading

Crime

Court remands 2 over alleged attempted murder

Published

on

Court discharges man accused of burning father’s house in Abuja

An Ikeja Magistrates’ Court, Lagos, on Wednesday, remanded two persons, Olaitan Fasasi and Kehinde Tobiloba in a correctional facility over alleged attempted murder.

Fasasi, 40, and Tobiloba, 26, whose addresses were not provided, are being charged with conspiracy, attempted murder and membership of a secret society.

The Magistrate, Mr L.A Owolabi, did not take the plea of the defendants for want of jurisdiction.

Advertisement

Owolabi directed the police to forward the case file to the Director of Public Prosecution for legal advice.

He thereafter adjourned the case until May 31 for mention.

The Prosecutor, Josephine Ikhayere, told the court that the defendants committed the offences at about 5.02p.m on Feb. 15, at Mushin, Lagos.

Advertisement

She said that Fasasi, Tobiloba and others now at large, attempted to commit murder by shooting at a resident, Alfred Ademola.

“They armed themselves with a locally made gun. They belong to Eiye Confraternity, a group proscribed by law,”, she said.

Ikhayere said that the offences contravened Sections 230(1) and 411 of the Criminal Law of Lagos State, 2012.

Advertisement

He said that the actions of the defendants also contravened Section 2(3)(a)(b)(c)(d) of the unlawful societies and Cultism Law of Lagos State Law.

Continue Reading

You May Like

Copyright © 2025 Acces News Magazine - All Right Reserved.

Verified by MonsterInsights