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Total Outstanding Petrol Subsidy Debt Hits N1.04tn

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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.

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“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.

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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.

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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

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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.

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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.

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Akwa Ibom APC Gears Up to Receive President Tinubu as Governor Umo Eno Joins Party

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The All Progressives Congress (APC) in Akwa Ibom State has announced its readiness to host President Bola Ahmed Tinubu and other top party leaders as it officially welcomes Governor Umo Eno into its ranks.

Speaking at a press briefing in Uyo on Friday, APC chieftain and former presidential aide, Senator Ita Enang, disclosed that the party was fully prepared to receive the president, Vice President Kashim Shettima, APC National Chairman, and governors elected on the party’s platform for the historic reception.

Governor Umo Eno had on June 6 formally defected from the Peoples Democratic Party (PDP) to the APC, in a move widely described as a political game-changer in Akwa Ibom.

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Enang, a former Special Assistant to the President on National Assembly and Niger Delta Affairs, said the governor’s defection had effectively aligned the state with the central government.

He assured Governor Eno and his supporters that the APC would embrace them wholeheartedly and honour all agreements reached.

“As progressives, we shall work with the governor and his supporters to ensure that they fit into the party without hitches,” Enang stated. “We will also work with them to align programmes of the state government with the ideals and manifesto of the party.”

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He further described the governor’s move as a “merger” that promises significant benefits for Akwa Ibom and its citizens.

The planned reception is expected to mark a major political event in the state, signaling a realignment of forces ahead of future elections.

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Ekiti Launches Aggressive Anti-Flood Campaign, Dredges Ofigba River

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The Ekiti State Government has intensified efforts to prevent flooding across the state with the launch of a comprehensive dredging campaign, targeting critical waterways in both rural and urban areas.

Chairman of the Ekiti State Environmental Protection Agency (EKSEPA), Chief Bamitale Oguntoyinbo, disclosed this on Friday during an inspection visit to the ongoing dredging project at the Ofigba River in Ise-Ekiti.

Oguntoyinbo, who was accompanied by EKSEPA board members, said the visit was to assess the progress of work being carried out to mitigate flood risks in the community. He expressed satisfaction with the pace and quality of the dredging work.

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“I and other board members of EKSEPA are delighted with the level of job done by the site engineer because he is actually working with the directives of three-kilometer dredging of waterways,” he said.

According to him, the dredging commenced on June 4, and so far, 1.8 kilometers of the river have been successfully cleared.

He applauded Governor Biodun Oyebanji for prioritizing the safety and welfare of residents by initiating the state-wide anti-flooding campaign.

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“I want to commend our amiable governor, Mr. Biodun Oyebanji, for embarking on zero tolerance campaign against flooding in every community and town in Ekiti,” Oguntoyinbo stated.

He also praised the General Manager of EKSEPA, Mr. Olukayode Adunmo, for his commitment to the project’s supervision and success.

In his remarks, Adunmo emphasized the urgent need to clear waterways choked by refuse, which impede water flow and contribute to flooding during the rainy season.

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“Dredging of Ofigba River in Ise-Ekiti in Ise/Orun Local Government Area is necessary because some of the waterways have been blocked by refuse,” he explained. “There is the need for us to remove every blockage to enhance free flow of water and avert flooding during heavy rainfall.”

Adunmo also commended Governor Oyebanji for taking proactive steps to protect lives and properties across the state.

Residents of Ise-Ekiti have welcomed the government’s intervention. Chief Godwin Ojo, a community leader, expressed gratitude to the governor for his timely action.

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“We thank the governor for the move to avert flooding in our community,” Ojo said. “May God grant him more wisdom to pilot the affairs of the state to an enviable height.”

The dredging campaign forms part of the Oyebanji administration’s broader commitment to environmental safety and disaster prevention.

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Tinubu to visit Kaduna Thursday to inaugurate key projects

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Tinubu commiserates with Akwa Ibom governor over wife’s death

President Bola Tinubu is expected in Kaduna State Today Thursday for the inauguration of several key developmental projects executed by the administration of Gov. Uba Sani.

The News Agency of Nigeria (NAN) reports that the visit forms part of activities marking Sani’s two years in office.

The projects lined up for inauguration include the 300-bed Specialist Hospital in Millennium City, Kaduna, built by the state government to bolster the provision of healthcare services.

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Tinubu will also inaugurate the Institute of Vocational Training and Skills Development in Rigachikun, road projects in Soba, and Samaru Kataf LGA’S as well as the 24-kilometre Kafanchan Township Road.

Others are the Tudun Biri Road, the 22km road linking Kauru and Kubau LGAs as well as the Vocational and Skills Training Centre in Tudun Biri.

Tinubu is also expected to unveil 100 Compressed Natural Gas (CNG) buses, as part of efforts to modernise the state’s public transportation system.

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The projects are part of the administration’s focus on infrastructurde evelopment, healthcare delivery, youths empowerment, and economic growth.

The state government described the visit as a significant moment for the people of Kaduna and an opportunity to showcase ongoing efforts to transform the state through impactful governance.

Sani, who marked his second year in office this month, has prioritised human capital development, rural infrastructure, and jobs creation since taking office in 2023.

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Tinubu’s visit to Kaduna State was rescheduled from Wednesday to Thursday.

He was initially supposed to visit Kaduna on Wednesday, but due to the recent attacks in Benue, he shifted his trip.

The president visited Benue on Wednesday to commiserate with the victims of the recent attacks and assess the humanitarian crisis.

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During his visit to Benue, Tinubu met with stakeholders, including traditional rulers, political and community leaders, and youth groups, to seek lasting solutions to the hostilities.

He also condemned the ongoing violence and called on the residents to embrace peace and mutual understanding.

NAN recalls that the Benue Government had declared a work-free day for Tinubu’s visit, urging the residents to turn out in large numbers to welcome him.

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