NNPC

By Kabir Fagge Ali
 
Presently, it is obvious that the time is ripe for the oil producing countries to smile due to the unprecedented increase in the oil price which eventually signalled an opportunity for a windfall. However, the situation is not the same for Nigeria as the country has plunged into deep fuel crises that has remained persistent for over a month. These crises border mostly on adulteration of the Premium Motor Spirits, PMS, also known as petrol, as well as its corresponding scarcity across the nation.

It can be recalled that, in the last three weeks, Russia has authorized a special military operation by invading the neighbouring Ukraine which caused the usually volatile crude oil prices to skyrocket beyond bookmakers. As a result, many countries are counting their fortunes in the windfall but unfortunately, Nigeria is counting its losses due to mismanagement of resources by the Nigerian National Petroleum Corporation (NNPC).

From the opening crude oil price of $76.03 per barrel at the beginning of 2022, prices have jumped to about $130 per barrel which is the highest price of the commodity for the last decade.

Just as noted in the Daily Trust Editorial of March 14, 2022, the gloom for Nigeria in the era of increased commodity prices was first forecasted by the world bank country director for Nigerian, Shubham Chaudhuri who said in January that Nigeria is at a point where rising oil prices might not be a good thing because although oil production might go up and crude oil revenue may increase, which in some point is a good thing.

The fiscal cost of petrol subsidy will also rise and while other countries may rejoice from the windfall, Nigeria will on the other hand be at the receiving end by reaping what it sows, courtesy of mismanagement of the oil sector over the past years by the NNPC. 

Truth be told, the consequences of the mismanagement of Nigeria’s four refineries is that the 440,000 barrels of crude oil supplied to NNPC daily for local refining is exported and never transparently accounted for. 

Meanwhile, the Group Managing Director, GMD, NNPC Mele Kyari claimed that N100 billion was sunk into the maintenance of the four refineries in Nigeria which is quite different from the N26bn already spent on supposed Turn Around Maintenance (TAM) on the maintenance of the refineries over the years which is an amount that will be sufficiently enough to build three new refineries as argued by many experts.

In addition, it is disheartening to learn that apart from being fleeced by NNPC and its collaborators in the name of oil subsidy or the strange term ‘under-recovery,’ Nigeria has failed to meet its oil production quota allocated by the Organisation of Petroleum Exporting Countries (OPEC). From an average of 2.1 million crude oil production quota per day, when the Buhari administration was voted into power in 2015, Nigeria is at present allocated 1.7 million per day, out of which it produces between 1.3 million and 1.4 million per day. This shortfall is a result of the lack of investment, as International Oil Companies (IOCs) have continued to exit Nigeria’s oil sector.

Despite the above scenario, the Ministry of Petroleum Resources, NNPC and its subsidiaries cannot convince Nigerians that there will be no gains from the current oil windfall. Such gains must not be frittered away under any guise.

The real question that is still begging for an answer is, can the NNPC convince Nigerians on how the country’s economy is not going to gain from this kind of oil windfall or how are Nigerian leaders being able to resolve this issue and what is NNPC’s decision on the lack of accountability to the people? 

Therefore, it is in the good interest of Nigerians that the National Assembly should investigate this issue thoroughly and ensures that money meant for the country indeed comes into the nation’s treasury unfailingly. The managers of Nigeria’s oil and gas sector must account for the gains that accrue to Nigeria from the current windfall.

Moreover, the NNPC in collaboration with the federal government and other stakeholders in the oil sector must as a matter of urgency expedite their efforts in fixing the moribund refineries in order to be functional enough to refine our petroleum products so as to meet the nation’s daily average consumption capacity of 62.5million litres of petrol. The time is long overdue to save the country’s ailing oil sector!

Fagge, is a student of Mass Communication Department, Skyline University Nigeria. He writes from Abuja, Nigerian and can be reached via faggekabir29@gmail.com

By Uzair Adam Imam

The Coalition of Concerned Northern Forum (CCNF)  has threatened to occupy all NNPC zonal offices and its subsidiaries if the current persistent issue of fuel scarcity is not being solved.

The group has also called on the NNPC’s Group Managing Director, Mele Kolo Kyari and Engr. Farouk Ahmed, the Chief Executive Officer of Nigeria Midstream and Downstream Petroleum Regulatory Authority (MDPRA), to resign.

They added that these people should tender their resignation within 72 hours over the persistent fuel scarcity in the country and their inability to solve the issue.

A statement jointly signed by the group’s chairman and the spokesman, Mallam Ibrahim Bature and Comrade Abdulsalam Moh’d Kazeem, respectively, disclosed.

The group also demanded that the NNPC management should make public genuine and comprehensive names of those involved in the current scarcity of petroleum products all over the country.

The statement reads: “if our demands are not met in the next three (3) working days, we shall occupy all NNPC zonal offices and its subsidiaries across our region and the Federal Capital Territory (FCT).

“The mistake made by NNPC under the current management has caused us a lot as a nation; for instance, they claimed it will cost our nation over N200 billion to mop up and sanitize the adulterated fuel, and at the same time, we don’t have enough facilities, so they will have to evacuate the bad products first before we can have access to the new products.

“As at today, the said products have already damaged many automobiles, generators, machines and other sundry equipment of citizenry nationwide.”

By Uzair Adam Imam

The Nigerian National Petroleum Company (NNPC) assured to have over 1.7 billion litres of petrol in stock, thereby making it unnecessary for the citizens to fear fuel scarcity.

This was made public in a release signed by the NNPC spokesperson, Garba Deen Muhammad stating that it is unnecessary to entertain any fear of scarcity of petrol throughout the festive season and beyond.

“The general public is hereby advised not to engage in panic buying of Premium Motor Spirit, more commonly known as petrol.

“The NNPC has over 1.7 billion litres of petrol in stock, and more product is expected to arrive into the country daily over the coming weeks and months”, the national oil company said in a statement on Monday,” the statement added.

However, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also added that: “The NNPC is advising motorists and other consumers of petrol to maintain their regular pattern of the purchase of petrol without getting into a panic situation that may send the wrong signals around the country.

“The NNPC is also engaging all stakeholders to ensure smooth supply and distribution of products to every part of the country during the festive season and beyond.”

By Sumayyah Auwal Ishaq

The Kaduna State Government, under the leadership of Governor Nasir El-Rufa’i, has signed a memorandum of understanding (MoU) on gas utilisation and expansion with the Nigerian National Petroleum Corporation (NNPC) and the Gas Aggregation Company of Nigeria (GACN).

During the signing ceremony today in Kaduna, the governor said the MoU has brought nearer the availability of a significant additional energy source for businesses and residents in Kaduna State.

“For the Kaduna State Government, this project is a welcome boost to our investment and job creation strategy. It will create jobs and provide skills for artisans who will work on the gas pipelines and associated infrastructure. Beyond that, this project will power the industries that have responded with enthusiasm to our investment promotion campaign,” El-Rufai said.

On his part, the General Managing Director, NNPC, Mele Kyari, said the management of NNPC would make sure the partnership work. He also commended the governor for his excellent leadership skills.

By Adamu Bello Mai-Bodi

The member representing Bauchi Federal constituency, Hon. Yakubu Shehu (Wakilin Birni) pulled up his trousers and went into the gutters to ensure Bauchi State is rightly apportioned what it deserves from the Federal Government. Furthermore, the lawmaker moved a motion during the plenary on Thursday 15, July 2021, seeking to declare Bauchi State an oil-producing state given that oil exploration started in 2018 in Alkaleri LGA of the state. This is nothing short of bravery; it depicts Yakubu’s sheer love and concern for the development of his state.

Yakubu boldly puts it bare on the floor that it has become imperative to ascertain the fortunes at the disposal of the Federal Government in Alkaleri LGA so as to hasten the process of giving effect to the provisions of the new Petroleum Industry Bill, 2021, in terms of the economic benefit the host community stands to gain.

As a Bauchi citizen, I couldn’t hold back my applause when Yakubu asserted that any community from whose location oil is discovered and or produced is entitled to some extra monetary packages for the upkeep of its environment, infrastructure and health impact. He went further and bolder to make a case for the people of Bauchi to start benefiting from the 13% derivation being the constitutional right in the form of an incentive to the host community.

As expected, the motion, which Hon. Mansur Manu Soro seconded nearly divided the House for obvious reasons, one of which is that there are no reports of production from the Kolmani Well. Notwithstanding, the Ayes have it after a third submission by the Speaker of the lower chamber. It is a crying shame that most of southern Nigeria’s media houses hypocritically reported that the House overwhelmingly rejected the motion despite the fact that the Speaker ruled in favour of the Ayes.

By sponsoring such a critical motion, Wakilin Birni has won a bravery medal for himself and some degree of prestige and assurances for the Pearl of Tourism. Moreover, the motion gives Bauchi people a sense of victory, for it puts Gombe’s unfounded contest over the oil field to a permanent rest. It also serves as a groundbreaking argument for declaring Bauchi an oil-producing state in the country, which shall come to pass God willing.

However, the most crucial component of the brave Yakubu’s motion was his prayer to mandate the committee on petroleum resources (upstream) to invite the Nigeria National Petroleum Corporation (NNPC) to give a comprehensive presentation on the level of work in the oil exploration currently undertaken in Alkaleri and the successes recorded. This is because we don’t want to be taken for a ride or fall into the same ditch as the Mambila hydropower project that was nearly completed on paper. Bauchi people and Nigerians need to know what is going on in the Kolmani River.

As I applaud Hon. Yakubu, I want to assure him that all well-meaning Bauchi citizens are solidly behind him on this. He must not relent, especially on mandating the committee on petroleum resources (upstream) to invite the NNPC to give a progress report on their undertaking of oil exploration in our state.

Adamu Bello Mai-Bodi writes from Gidado Bombiyo residenceK/Kaji Azare. He can be reached via 08067481928.

By Abu Haneef

The governors of southern Nigeria held a meeting in Lagos on Monday, July 5, 2021. They, among other things, demanded the return of the presidency to the South in 2023. They also rejected two sections of the recently passed Petroleum Industry Governance Bill (PIGB). While the governors are entitled to their opinion, the return of the presidency to the South will however require much more than a demand from the governors—it will require fielding a Southerner that can win in a free contest. As for the rejection of some sections of the PIGB, their opinion on such a legislative matter is hardly any different from that of ordinary Nigerians and indeed of no legal significance to the implementation of PIGB. Perhaps they need to summon their legislators for an honest discussion. 

Between the 4th and 9th legislative assemblies in Nigeria, the PIGB was stalled for over 20 years due to unrealistic demands by many interest groups. This has led to the inefficient utilisation of our petroleum resources and the inability to open our economy to private investments. Therefore, the passage of this bill brought a huge sigh of relief to many who appreciated the impact its delay had on our development and economy. And today, PIGB is arguably the most debated bill in Nigeria’s history. 

The two sections contended by the governors are the allocation of 3% of NNPC’s profit to host communities (they need more) and 30% of the profit to exploration activities in the basins (they need less exploration elsewhere). 

Although the situation of the host communities is something every Nigerian should be sympathetic to, such sympathy should not mean giving them everything while other regions suffer deprivation. The host communities have 13% derivation, deducted from government revenues (not just oil). They also have a federal ministry dedicated to their needs and another government parastatal, the Niger Delta Development Commission (NDDC). Although these considerations will not replace what the region has lost (and is still losing) of its livelihood to oil exploration activities, particularly those illegal activities by the locals, it nonetheless does not justify the denial of the country to increase its revenue by exploring the basins. And lest they forget, the oil in Niger Delta was explored through revenues from our erstwhile groundnut pyramids. It also does not justify the disproportionate allocation of the nation’s resources to them exclusively. 

For example, in addition to sums budgeted for the Ministry of Niger Delta and the NDDC, Delta State alone received almost N190 billion in federal allocation in 2020, which roughly equates to what was received by four North-Eastern states of Bauchi, Borno, Gombe, and Adamawa during the same period. And this will be more appreciated when the difference in population and landmass is added to the analysis. 

I’m not mentioning this to suggest that the host states (which now include Bauchi and Gombe States, by the way) do not deserve this patronage. Still, I do so to disagree that the nation has neglected them as always projected when the leaders require additional resources of those communities. And looking at the resources allocated to the host communities in the last decade alone, their leaders, rather than Federal Government, are the ones guilty of this neglect. 

But all this argument and counter-argument can only be a lamentation or justification, depending on what side of the divide you find yourself, as those saddled with the constitutional responsibility of determining the matter have done so, albeit after a very long time. And any effort to undermine the National Assembly is actually a renegotiation of this country through the back door, which any reasonable person should not contemplate at this critical period of our history. 

As for the governors’ request for the presidency to be returned to the South in 2023, they, particularly those amongst them who championed the jettisoning of zoning arrangement in 2011, such as Wike, need to be reminded that if the aggressor forgets quickly, the victim does not. 

In 2011, the South, led by President Jonathan and many of those clamouring for it today, abolished zoning in defiance of all reasons and a gentleman agreement established by the North to protect the South that is unarguably the minority in Nigeria. This is true regardless of how one chooses to look at it—either by landmass or population. 

Now that zoning has been thrown into the bin of our history by the South; the presidency shall remain open to a free contest by all. And even if this zoning arrangement will be revisited in the future, not now, if you ask me; a good lesson needs to be taught and learned on the importance of the sacrosanctity of agreements, or else, we may see a repeat of the logically fallacious arguments tossed left, right and centre in the justification of abandoning zoning by the same actors calling for its return today. 

Abu Haneef can be reached via imabuhaneef@gmail.com.