Economy
NNPC spends N1.1trn on subsidy, FAAC remittance, oil Exploration in 7 Months

The Nigerian National Petroleum Corporation (NNPC)has spent N1.165 trillion on petroleum subsidy, oil exploration and remittance to the Federation Account Allocation Committee (FAAC) in seven months of this year.
According to NNPC monthly FAAC report for September, the three expenditure items gulped 57 per cent of the total revenue distribution of N2.043 trillion done by the national oil company in the first eight months of 2021. The balance of N878bn was distributed for other expenditures, including crude oil lifting inspection expenses.
On subsidy which NNPC describes as under-recovery of Premium Motor Spirit (PMS) value shortfall, the corporation spent N714.791bn within seven months, from February to August.
While there was no subsidy spent in January, NNPC spent N25.37bn in February and that figure rose by nearly three times in March to N60.396bn. The corporation then spent N61.966bn in April which more than doubled to N126.298bn in May, following a reported a higher rise in the landing cost of imported petrol.
The national oil company further incurred a higher cost in petrol subsidy of N164.337bn in June but declined to N103.286bn by July; however, by August, the gain was reversed when subsidy cost rose to N173.132bn, the highest figure published so far.
The Minister of State, Petroleum Resources, Timipre Sylva, has continually reiterated that the government was committed to total removal of subsidy from next year, especially with the implementation of the Petroleum Industry Act (PIA) as Nigerians await the impact of the decision.
FAAC Gets N429bn In 7 Months
The corporation also remitted N429.284bn oil proceeds to the FAAC for seven months during the period as it skipped remittance in April.
The breakdown of the remittance shows that NNPC remitted N90.860bn in January, but that dropped to N64.161bn in February, and further depleted to N41.184bn in March 2021.
There was no remittance in April which was said to have gone for subsidizing petrol pump price per litre to keep it at the 162 to N165 price band.
By May, the remittance to FAAC dropped to N38.608bn but rose significantly to N47.162bn in June and higher to N67.280bn in July before climaxing at N80.030bn in August.
Frontier Exploration Gulps N20bn
NNPC also spent N20.681bn on frontier oil exploration in seven months with the highest expenditure done in August. While it spent N1.964bn on exploration activities in January, the bill slightly dropped to N1.920 in February but rose to N2.250bn in March. There was no expenditure on oil exploration in April but the figure rose to N3.216bn in May, and dropped to N2.715bn in June. While oil exploration expenses dropped to N2.443bn in July, they rose by three times in August to N6.167bn.
This expenditure on oil exploration is being made at a time when global leaders are shifting from the use of fossil fuel to renewable and clean energy. However, Sylva recently said Nigeria will gradually lead its energy transition by focusing on gas exploration towards reaching a cleaner energy goal.
More so, in the recently signed PIA, 30 per cent of oil proceeds has been pegged for oil exploration activities at the frontier basins with concerns that these activities are concentrated in the north.
However, the Governor of Nasarawa State, Engr. Abdullahi Sule, at an oil and gas union gathering last week in Abuja, clarified this misconception, saying what refers to as frontier encompasses all new exploration areas including the Niger Delta, with the Benue Trough exploration reaching Calabar, the Cross River State capital. He also said it includes the Benin Basin and some undeveloped offshore areas in the South-South.
Economy
Ojulari, new NNPCL MD, hits the ground running, assembles new management team as he takes over from Kyari

Funso OLOJO
The new Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Bayo Ojulari, has assembled new management team that will drive the vision of President Bola Ahmed Tinubu in the petroleum sector shortly after he took over the mantle of leadership from his predecessor, Mr Mele Kyari.
It could be recalled that the appointment of the erswhile NNPCL boss, Kyari was terminated and Ojulari was appointed in his stead with immediate effect.
However, in a brief handover ceremony held at the NNPC Towers, Ojulari commended Kyari for his contributions to the growth of NNPC Ltd and his sterling service to the nation.
He disclosed that the objective of his management was to consolidate on the successes of his predecessor and take the company to the next level.
He said though the targets set for his management were quite enormous, he would be relying on the co-operation of the Management and staff of the company, as well as the counsel of his predecessor to achieve set targets.
“I will be counting on your support. I will need it. I will be coming around to seek your counsel,” Ojulari told Kyari.
Earlier in his remarks, Kyari congratulated Ojulari and thanked the Management and staff of the company for their support while in office.
He pledged to do everything within his power to support the new Management to succeed, stressing that he was only a call away.
Soon after the official handing over ceremony, the new new NNPCL, Mr Ojulari announced the appointment of a new 8-man Senior Management Team .
The team which will be headed by the GCEO, Mr Bashir Bayo Ojulari, has Roland Ewubare as Group Chief Operating Officer; Adedapo Segun as Group Chief Financial Officer; and Olalekan Ogunleye as Executive Vice President Gas, Power & New Energy.
Other members of the team are: Udy Ntia as Executive Vice President Upstream; Mumuni Dagazau as Executive Vice President Downstream; Sophia Mbakwe as Executive Vice President Business Services; and Adesua Dozie, as Company Secretary & Chief Legal Officer.
All appointments are with immediate effect.
Economy
Tinubu sacks Kyari, NNPCL GMD, appoints Ojulari as new CEO, reconstitutes board

Funso OLOJO
Bayo Bashir Ojulari new NNPC GCEO,
Mrs Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance, will represent the ministry on the new board, while Aminu Said Ahmed will represent the Ministry of Petroleum Resources.
During his career, he was chairman and member of the board of trustees of the Society of Petroleum Engineers (SPE Nigerian Council) and a fellow of the Nigerian Society of Engineers.
Economy
Dangote group remits N402.3 billion tax to government coffers in 2024

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