Presidency Replies Atiku Over NNPC’s $3.3 Billion Emergency Loan
The Presidency has replied to the 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, over the Nigerian National Petroleum Company Limited’s (NNPCL) $3.3 billion emergency crude repayment loan. Recall that the repayment loan was secured on August 16, 2023, and was designed to bolster the naira and stabilize the foreign exchange market. The transaction, arranged by the African Export-Import Bank, was not only intended to support the national currency but also to aid the Federal Government’s monetary and fiscal reforms. Notably, three weeks ago, the Federal Government received $2.25 billion of the $3.3 billion foreign exchange facility from the bank. However, in a statement on Thursday, Atiku called on President Bola Tinubu to provide a detailed account of the repayment loan, adding that the only available details were emerging from sources within the NNPCL. He highlighted that the transaction is being facilitated by a Special Purpose Vehicle named Project Gazelle Funding Limited, which was incorporated in the Bahamas. Reacting to Atiku’s query on Thursday, presidential aide, Otega Ogra said the Tinubu’s administration has taken the time to educate all Nigerians further on the loan at various times. He said the loan also known as Project Gazelle, is a financing agreement secured by NNPC Limited to prepay future royalties and taxes to the federal government. Ogra stated that NNPC Limited’s project is a forward-thinking financial strategy that aligns operational needs with broader economic goals by utilising future crude oil sales for immediate funding, enhancing liquidity, and contributing to Nigeria’s foreign exchange reserves. He said the project showcases NNPC Limited’s operational autonomy and financial acumen while ensuring immediate liquidity, minimising the impact on future earnings, and potentially enhancing Nigeria’s credit rating. Ogra noted that the repayments are strategically planned and tied to future oil sales, with conservative pricing in oil sales contracts mitigating the risks associated with oil price volatility.
Why there is a drop in power supply across the country – TCN
The Transmission Company of Nigeria, TCN, has revealed the reason for the drop in power supply nationwide. According to Ndidi Mbah, TCN’s general manager of public affairs, gas constraints on thermal generating companies resulted in low power generation across the country. She said the situation had impacted the quantum of bulk power available on the transmission grid for onward transmission to the distribution load centres nationwide. The statement reads: “The Transmission Company of Nigeria TCN hereby announces that there has been a gradual decrease in available generation into the grid due to gas constraints to the thermal generating companies, which has impacted the quantum of bulk power available on the transmission grid for onward transmission to the distribution load centres nationwide. “TCN is doing everything possible in collaboration with stakeholders in the power sector to ensure that it keeps the grid intact despite the current low power generated into the system. “Consequent to the current load on the grid, load distributed to the distribution load centres have also been reduced, as TCN can only transmit what is generated. “TCN is committed to ensuring a gradual increase in electricity supply to load centres as gas improves to the power available thermal plants. “Please bear with us as we continue to work with the stakeholders in the value chain to ensure that supply through distribution companies to electricity consumers nationwide improves”, the company stated.
A Nation Poised for Greatness
The widely circulated video bemoaning the massive devaluation of the Nigerian Naira and our interpretation of what it portends for the future of our country, is a clear illustration of how our preconceived and implicit biases can dramatically influence our perception of the same reality. Yes, the author of the video, which sounded like an AI generated audio, was absolutely on target in his diagnosis of the pathology of incompetent, inept and corrupt leadership that has led to the decimation of our currency valuation. In fact, there is no daylight between you and me in our analysis of the current Hobbesian state of existence that our people are being forced to live through. No sane person can deny the reality of the current parlous existence of our people. It is all too glaring for everyone to see. Where there is a huge gulf between us is our future orientation. You, on one hand, see no hope of a bright future for Nigeria. I, on the other hand, see a nation that emerges out of this current mess into a future full of a promise of economic renaissance and rebirth. Even in the midst of the darkest cloud hovering Nigeria, I see shadows and glimmers of bright spots. I see incredible creative energy in the culture economy (Nigerian music and Nollywood) _killing_ it globally. I see a booming tech-economy and an emerging and thriving fintech. I see an economy that is rapidly becoming a cashless economy. From the local bukateria to the hawkers on the street, you can now almost transact business without cash. I also see an explosion of a construction economy. In my neighborhood here in Ibadan and across all the major cities in the country, there is an incredible redevelopment boom, old buildings being demolished, and in their place glistering massive edifice. It is also a reality that the Igbos are buying up the whole place from Lagos; to Ibadan, to Akure, and to my hometown Ilesha. Whether that is good or bad depends on one’s perspective. That is not the subject of this post. You can see some of the most amazing architectural masterpieces going up all over the place and a property valuation going through the roof. By the way, not all the construction are by politicians or corrupt civil servants. You will be surprised that the mechanic who fixes your car or the carpenter who calls your dad is a landlord. Rather than paying exorbitant rents, a lot of people, some misguided people, might look down on as low class, have actually managed to put up their shelter. It might not be Hollywood style edifice, but our resilient no-quitting people are beating the odds of home ownership. Of course, on the flip side, one cannot overlook the mind-numbing and sociologically dangerous gulf emerging between the haves and the have-nots. There is unnecessary suffering and inhumane poverty ravaging the land due to the insane greed of a kleptocratic ruling class and civil servants. That is the danger that lies ahead for our country. The Nigerian rich class may be unwittingly piling up the dynamite that might be used to blow up their wealth. We must address the wealth inequality and the emerging segregation of Nigeria into a de factor caste system based on wealth. So back to my point, while many of us, especially those of us in the diaspora, are focussed on the problems, I see dynamic people both Nigerian and especially non-Nigerians, who are capitalizing on the tremendous opportunities presented by a growing and consuming population of over 220 million people. I see a Nigerian population, though bended by the whiplash of an economic tsunami, yet a people not broken. A resilient people who are eternal optimists, fun-loving, and future prospect-oriented. When you tell a Nigerian he is marooned in an impenetrable jungle, he takes out a matchete and starts cutting a path. That is the Nigerian spirit that will get us out of the current economic quagmire if we don’t give to the debilitating noise of despondency and hopelessness. That is what gives me hope and not some blind sense of patriotism or unhinged optimism. It is our can-do spirit, which has made the Nigerian immigrant population in the U.S. and all over the world, one of the most dynamic and successful immigrant groups in the entire world. Yet, and sadly, when it comes to our country, the same diaspora Nigerians who have become pace-setters all over the world seem to be paralyzed by a pathology of pessimism and negativity. That is what’s so puzzling about the Nigerian diaspora. Let me reiterate that I am as convinced that, as it is predictable that the sun will emerge in its amber glory from the east tomorrow morning, bursting through the dark night, Nigeria too will emerge out of this darkest of nights into a glorious morn. This is not wishful thinking but evidence based prognostication. The reason, I have been sounding the alarm bell is to alert my people in the Diaspora not to be caught up in the web of pessimism and negativity and in the process lose out of the innovator’s dividend. Yes, the Nigeria economy is high risk, but it is also a high reward. The Nigerian stock market, for instance, emerged as one of the best performers globally last year. That is news you will not see posted on social media. All you will see are the stories of kidnapping, banditry, and mayhem all over the country. Those too are the reality of many Nigeria, but that is not the whole truth. That is the nature of the unregulated wild Wild West world of the new social media. Let me restate it now that it would be a catastrophic missed opportunity for those of us in the diaspora not to engage with the Nigerian economy now. Delay will be massively costly for those waiting until Nigeria becomes a mythical Eldorado. I am not talking theory. I am on the
IPMAN Gives Fresh Update On Fuel Price Increase
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has addressed speculations about an alleged increase in fuel prices during a Channels Television interview. National Vice President Hammed Fashola emphasized that IPMAN has no intention of raising fuel pump prices, debunking claims suggesting otherwise. He also asserted that the rumored price of N1,200 per litre did not originate from the association. Fashola backed the National Nigerian Petroleum Company Limited (NNPCL)’s assurance that there are no imminent plans for fuel price hikes and urged Nigerians not to engage in panic buying, assuring them of the product’s availability. He clarified that IPMAN relies on NNPCL for fuel supplies and stated that as long as they procure fuel at the existing price from NNPCL, they will not alter their pricing. Regarding the upcoming Portharcourt and Dangote refineries expected to commence operations in the first quarter of 2024, Fashola anticipated that their entry into the market would foster competition, potentially leading to lower prices in the future. However, Fashola appealed to NNPCL to enhance fuel allocations to independent marketers, highlighting issues in the current distribution system that affect their profitability and operations. In a separate statement, NNPCL reiterated that there are no plans to increase petrol prices, urging Nigerians to ignore baseless rumors and reassuring them of sufficient petrol availability nationwide. Reports confirmed petrol availability in filling stations within the Federal Capital Territory, with prices ranging between N600 and 630 per litre.
NNPCL Dismisses Rumors of Impending Fuel Price Increase
The Nigerian National Petroleum Company Limited (NNPCL) has quashed rumors circulating on social media regarding an alleged plan to increase petrol prices to N1,200 per litre. Responding to the speculations, the NNPC clarified that there are no imminent plans to hike fuel prices despite widespread discussions on various platforms. The NNPC’s Group Communications Officer, Olufemi Soneye, issued a rejoinder today, affirming that the company has not engaged in any conflicts related to this matter. The statement emphasized the inaccuracy of a headline from The Punch, terming it “unfortunate.” Additionally, NNPC addressed inquiries about subsidy reductions, clarifying that the subsidy has indeed been completely eliminated. “NNPC Ltd emphasises it has not clashed with any party. The Punch headline is deemed unfortunate. The publication sought confirmation on the alleged subsidy reduction, to which NNPC responded that the subsidy has been entirely removed.” This response comes amidst heightened concerns and mixed reactions among the public due to the challenging economic conditions prevalent in the country.
Nigeria Set to Commence Gas Supply to South Africa by 2024
Nigeria, a significant player in the global energy sector, has announced plans to initiate gas supply to South Africa in the first quarter of 2024. This development was revealed by David Ige, the Executive of Riverside LNG, a prominent Nigerian-based energy company, during a recent interview held in Abuja. Highlighting the growing collaboration between the two nations, Ige stated that substantial discussions on energy collaboration have been initiated. Earlier this year, Riverside LNG solidified a gas-export partnership with Johannes Schuetze Energy Import AG of Germany, indicating a broader expansion of its market reach. “We’d probably close out another segment of the market very early in the year, an off-take for South Africa,” Ige stated, pointing out the evolving gas market spanning approximately 3,000 nautical miles from Nigeria, covering southern Africa, western Africa, northwest Europe, the Caribbean, and South America. Nigeria, recognized for its vast energy resources, boasts 202 trillion cubic feet (tcf) of untapped proven gas reserves, as confirmed by the Nigerian National Petroleum Company Limited.
NNPC Ltd remits N4.5trillion Revenue in 10 months…Says prosperity beckons for Nigeria
The Nigerian National Petroleum Company Limited ( NNPCL), declared Wednesday that it remitted N4.5trillion generated revenue as at October this year into Federation Account . It also declared that prosperity beckons for the country as indices and parameters in that direction are already showing and being strategically leveraged on by NNPC Ltd and other key players in the oil sector . Submissions to these effects were made by the Group Chief Executive Officer of the Company , Mele Kyari , during an interactive session with the Senate Committee on Finance. Kyari in his presentation assured the Committee members that better days are ahead for the company and by extension Nigeria as reform contained in the Petroleum Industry Act for the oil sector, has made NNPC Ltd to be at par with its peers, across the globe. He said : ” The NNPC Limited that is a creation of the National Assembly, requires that we conduct business transparently and provitably in line with provisions of the law and to create value for shareholders, and not to lose money, and also to continue to add value and pay dividends to shareholders. ” I’m glad to inform you Mr Chairman and Distinguished Senators that as at October we are able to deliver N4.5 trillion Naira into the federation account as a company to this country in 2023 . “Every national oil company has a trading company. We have always had one which . never worked prior to PIA Implementation. “Currently NNPC Ltd is delivering on its mandate through the PIA reforms that has brought us to be at par with our peers, across the globe, and not to lose money anymore “. He added that as NNPC Limited is expanding in bussiness and now the most transparent National Oil Company in Africa , the sector will would be more investment driven by the time the issue of wide margins in exchange rate and import and export windows are narrowed. “There is always a parallel market in every country. There is also an import and export window in every country, even in the developed world. “But there is always a narrow gap between the two and it takes time for you to have stability in this gap so that you have a low margin between the two for a sustained period of time, then businesses will thrive . “There is a line of sight around this. I am very confident that by the end of the first quarter of next year, those margins will narrow and stability will come and you will see others coming into the market”, he said .
NNPCL Rolls Out New Official Logo
In a bid to put an end to inconsistency in the use of its brand logo, the NNPC Limited has rolled out its official logo. A statement signed byChief Corporate Communications Officer NNPC Limited, Olufemi O. Soneye,said the company’s action is part of the transition in line with the Petroleum Industry Act (PIA). “This is to inform our media partners, stakeholders, and the general public that following the transition of NNPC Ltd from a corporation to a commercially focused limited liability company under the Companies and Allied Matters Act in keeping with the provisions of the Petroleum Industry Act (PIA) 2021 and the subsequent rebranding of the company, the old logo seizes to represent the company. “We, therefore, appeal to all who may have any cause to use the NNPC Ltd.’s logo to use the new logo samples of which are attached to this press note. “We also appeal for consistency and uniformity in the use of the company’s brand name which is NNPC Ltd, and not NNPCL or any other variant,” the statement read.
Russia-Ukraine Crisis Affecting Demand For Nigeria’s Crude, Says NNPCL
The Nigerian National Petroleum Company Limited (NNPCL) has provided insight into how the lingering conflict between Russia and Ukraine has impacted Nigerian crude oil inflows in the international oil market, leading to a dip in demand from the once-dependable Asian market at the onset of hostilities in the Eastern bloc. Maryamu Idris, Executive Director, Crude & Condensate, NNPC Trading Limited, who said this in a panel presentation at the Argus European Crude Conference in London, added that that the substantial price shocks impacting commodity and energy prices globally, the conflict between Russia and Ukraine has triggered a situation where India, a primary destination for Nigerian grades, increased its appetite for discounted Russian barrels to the detriment of some Nigerian volumes. “To illustrate the extent of this shift, Nigeria’s crude exports to India dwindled from approximately 250,000 barrels per day (bpd) in the six months preceding the February 2022 invasion of Ukraine to 194,000 in the subsequent six months afterwards. And so far, this year, only around 120,000 bpd of Nigerian crude volumes have made their way to India,” she said. On the other hand, she noted that the Nigerian crude flow to Europe has increased in a bid to fill supply gaps left by the ban on Russian crude, pointing out that six months before the war, 678,000 bpd of Nigerian crude grades went to Europe, compared to 710,000 bpd six months later and 730,000 bpd so far this year. “This trend makes it evident that Nigerian grades are increasingly becoming a significant component in the post-war palette of European refiners. Several Nigerian distillate-rich grades have become a steady preference for many European refiners, given the absence of Russian Urals and diesel. Forcados Blend, Escravos Light, Bonga, and Egina appear to be the most popular, and our latest addition — Nembe Crude – fits well into this basket. This was a strong factor behind our choice of London and the Argus European Crude Conference as the most ideal launch hub for the grade,” Idris also said. On production challenges, Idris remarked that, like many other oil-producing countries, Nigeria had faced production challenges aggravated by the COVID-19 pandemic, including reduced investment in the upstream sector, supply chain disruptions impacting upstream operations, ageing oil fields, and oil theft by unscrupulous elements. These factors, she said, contributed to production declines in the second half of 2022 and early 2023. Idris, however, noted that the challenges are fast becoming a thing of the past with the introduction and implementation of a new framework for the domestic petroleum industry (the PIA of 2021), rejuvenating the business landscape, and re-positioning NNPC Limited to adopt a more commercial approach to the management of the nation’s hydrocarbon resources. According to her, NNPC Limited has secured vital partnerships with notable financial institutions to promote upstream investments to restore and sustainably grow production capacity in the coming years. “NNPC Limited is championing concerted efforts in partnership with host communities and private stakeholders to address the security and environmental challenges in the Niger Delta to further fortify production growth. Suffice to say we have already begun seeing significant progress on the rebound. In September 2023, Nigeria recorded its highest crude oil and condensate output in nearly two years, reaching 1.72 million barrels per day. This, we believe, is just the beginning of our production rebound.” She affirmed that in addition to sustainably growing upstream production volumes, NNPC Limited is also increasing its participation in the downstream sector in line with a ‘wells-to-wheels’ approach, taking the country’s unique hydrocarbon molecules as close as possible to end-users. The vehicle for this, she said, is the restructured NNPC Trading Company, focused on growing NNPC’s presence in the global market for crude, condensate, gas, and petroleum products. The Argus Crude European Crude Conference Panel Session was held with the theme, ‘The Invisible Hand: How Are Shareholders and Asset Managers Meeting the Crude Industry? What Does This Mean for the Future of Crude in Europe?’ Vice President Crude of Argus, James Gooder, moderated the event.
NNPCL Working With NEITI, Others To Reconcile NEITI’s 2021 Report
The Nigerian National Petroleum Company Limited (NNPCL) will continue to collaborate with the Nigeria Extractive Industries Transparency Initiative (NEITI) and all relevant stakeholders in the Reconciliation Committee set up by President Bola Tinubu to investigate, review and reconcile the financial records on alleged indebtedness to the Federation by both NNPC Limited and Federation Accounts Allocation Committee, FAAC. A statement signed by Chief Corporate Communications Officer NNPC Limited, Olufemi O. Soneye, on Monday night in Abuja, said, this comes on the heels of calls by a non-governmental organisation for a probe of several monies allegedly owed to the Federation by the national oil company. NNPC Ltd states that the claims by the NGO were baseless, considering the fact that NEITI itself had dismissed many of the allegations in the said 2021 report, following a series of engagements with NNPC Ltd. NNPC Ltd had severally explained that at the outset of President Bola Ahmed Tinubu’s administration, it was made to sell Premium Motor Spirit (PMS) imported into the country at one third of its value, a development that gave rise to an average of N400bn monthly subsidy bill, which subsequently put a strain on its revenues and finances. NNPC Ltd further stated “that subsidy bill accumulated to N3.736 trillion as of May 31st 2023.” The oil company said that the non-payment of NNPCL’s share of upstream joint venture gas supplied to the government-owned plants had led to the accumulation of indebtedness of N174.07 billion by the Federation. “Similarly, the receivables due from the federation to NNPC Exploration & Production Limited (NEPL) as of 31st May 2023 amount to $712million (equivalent to N309.07 billion at N434.08/US$1) for revenues not remitted to NEPL but paid into the Federation account. “While the Federation owed NNPCL the sum of N 4.207 trillion as net indebtedness, the Company was only indebted to the Federation in the sum of N2.852 trillion, made up mainly of outstanding Good and Valuable Consideration (GVC) in respect of government upstream divestments, royalties and Petroleum Profit taxes (PPT). “We would like to also use this opportunity to clarify that over the years, our relationship with NEITI has been very cordial, as seen in August 2020 when we became an EITI supporting company in 2020, joining a group of over 65 extractives companies, state-owned enterprises (SOEs), commodity traders, financial institutions and industry partners committed to observing the EITI’s supporting company expectations. “Indeed, aside being a signatory to several EITI’s global ethics and standards, NNPC Ltd had on the sidelines of the United Nation’s General Assembly (UNGA) in Washington DC, in September this year, signed up to the United Nations Global Compact on human rights, labour, environment, and anti-corruption, thereby becoming the first state-owned oil company to join the global initiative,” it said. The state oil company averred that it’s book remains open as it remain committed to delivering value to Nigerians with integrity and as espoused in our principles of Transparency, Accountability and Performance Excellence (TAPE), the bulwark of the Mele Kyari leadership of the company.