The Nigerian National Petroleum Corporation (NNPC) said it met its financial obligations to the Federation Account in 2018 by remitting N1.26 trillion as against the N1.22 trillion projected in the 2018 budget, recording a surplus of N41billion.
Managing Director of NNPC Capital, Mr. Godwin Okonkwo, made this submission when he represented the Group Managing Director, Dr. Maikanti Baru during a presentation to the House of Representatives Ad Hoc Committee on the Investigation of the Non-Remittances of Funds to the Federation Account by the corporation between July 2017 and December 2018 at the National Assembly Complex in Abuja.
A release by the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, on Tuesday quoted the GMD as saying that though 2.3million barrels per day (mbpd) was proposed in the 2018 budget, national daily production for the period under review oscillated between 1.9mbpd to 1.89mbpd.
Dr. Baru listed the two sources of inflows into the Federation Account from the NNPC to include equity crude oil sales less cost of recovery from the Joint Venture cash call arrears and domestic crude less cost recovery, adding that the JV cash call arrears were being efficiently managed now to ensure steady inflows to the Federation Account.
“The current management of NNPC ensures that it contributes to the cost of the production of crude oil and gas in the upstream sector to avoid a repeat of the mistakes of the past. If we had made cash call payments in the past, the arrears that we are liquidating now would not have arisen. The current situation creates a win-win scenario for the country. The NNPC is strategically saving for the rainy day to make a better future for all of us by liquidating the arrears”, Mr. Okonkwo posited.
He noted that the corporation on a regular and sustained basis balanced up with the Federation Account Allocation Committee (FAAC) and the JV cash calls in order to make sure that the future generations do not suffer from the legacy debt.
The NNPC Capital MD dismissed the allegations by Commissioners of Finance of under remittances by the Corporation, adding that the NNPC was a going business concern that met financial obligations to its various stakeholders.
Dr. Baru stated that investment in the Oil and Gas Industry took time to mature, adding that if the NNPC failed in its obligation to invest in the sector, there would be nothing to share by the various tiers of government.
Responding to a question on whether the NNPC 2018 audited account was ready, Dr. Baru stated that the 2018 audited account would be ready next month, adding that NNPC had cleared its backlog of unaudited account. He attributed the delay to some Joint Venture partners that were being awaited to turn in their budget performance for the 2018 budget circle to be completed.
In his remarks, the Chairman of the Ad Hoc Committee, Hon. Chukwuka Onyema Wilfred, praised the NNPC for responding to all the issues raised, stressing that the interface would go a long way to putting to rest allegations of non-remittances of funds against the NNPC.
Eliminating Gas Flare Remains Priority – NNPC
Eliminating gas flare with a view to bequeathing a pollution-free environment to future generations of Nigerians remains a priority of the Nigerian National Petroleum Corporation (NNPC).
The corporation made this commitment at an event held today at the NNPC Towers to mark the World Environment Day.
A statement by the corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, quoted the Group Managing Director, Dr. Maikanti Baru, as urging members of staff to maintain the NNPC business culture of “working not to harm the people or the environment”.
Addressing the management and staff on the theme of this year’s World Environment Day, “Air Pollution”, the GMD who was represented by the Chief Operating Officer (COO), Ventures, Dr. Babatunde Adeniran, said NNPC had put in place a lot of measures to mitigate the impact of oil and gas exploration activities on the environment.
“As a corporate organization, NNPC is determined to reducing harmful emissions that can impact air quality and the well-being of God’s creatures in all aspects of our operations.
“We are committed to finding ways to fully commercialize our natural gas resources to eliminate gas flare in all existing future gas projects”, he said.
Dr Baru noted that air pollution was a major issue in today’s industrial world that needed all hands to be on deck to tackle.
Also speaking at the event, the Guest Speaker, Mr. Goni Ahmed, former Director General, National Agency for the Great Green Wall, commended the NNPC for championing gas-flare reduction initiatives that had helped Nigeria move from 2nd to 7th position in the global gas flare rating.
He expressed satisfaction with the measures the corporation had deployed to tackle environmental issues in the Oil and Gas Industry and lauded the GMD for ensuring availability of petroleum products across the country.
Earlier in his welcome address, the General Manager, Group Health, Safety, Environment & Quality (GHSEQ) Department, Mr. Hussaini Ali, said the programme offerred everyone the opportunity to contribute to the quality of the air we breathe, noting that the task of ensuring safer environment was a collective responsibility.
In the same vein, Manager, Operations, NNPC Health Manager Organisation (HMO), Dr. Getrude Bassey, advocated for strong individual participation in environmental management to avoid the negative effects of environmental pollution such as cancer, respiratory diseases, among others.
BREAKING: Senate Confirms Emefiele’s Reappointment For Second Term
The Senate has confirmed Mr. Godwin Emefiele as Central Bank Governor for a second term of 5 years.
more details soon
Senate Panel Endorses Emefiele For Second Term, Dismisses ‘Stolen’ N500bn Allegation
The senate committee on banking, insurance and other financial institutions has approved of a second term for Godwin Emefiele, governor of the Central Bank of Nigeria (CBN).
While screening Emefiele on Wednesday, members of the committee dismissed the allegations of stolen N500 billion at the apex bank.
Rafiu Ibrahim, its chairman, said the allegations were targeted at “bringing you (Emefiele) down because you are a good person”.
Last week, President Muhammadu Buhari nominated Emefiele for a second term.
During the screening, the committee expressed satisfaction over Emefiele’s first tenure at the CBN.
According to Ibrahim, “I do not have any question for the Governor. I am overwhelmed. I wish you well and pray for you. May God continue to guide you.
“Now, we know the reason why there are some videos on social media because in Nigeria, once you are a good person, some people will always try to bring you down. We will expeditiously take a report to the chamber for consideration. You can take a bow.”
Kurfi Umaru representing Katsina central also commended the CBN governor for “a job well done.”
“Let me start by congratulating the governor for his second term and also congratulate you for your article presentation. I commend you for a job well done,” he said.
Philip Aduda from FCT said: “Mine is to wish you well and to pray to God almighty to grant you wisdom so that you can put the economy of this county on a pedestal of hope and prosperity. Congratulations.”
In his remarks, the Emefiele said the apex bank will continue to do its best, admitting, however, that “the road ahead is still very tough.”
He said Nigeria has workable policies but “implementation has been neglected because we see sabotaged activities.”
“CBN will ensure that those who seek to undermine the policies of Nigeria will be brought to book. Pray for us because the road ahead is tough,” he said.
“On Agriculture, the credit should go to the President. It was what he said ‘eat what we produce’, that birth the anchor borrowers programme.
“We have started looking at Palm oil. The price of a barrel of palm oil is more than a barrel of crude oil. We will grow that market again. After palm oil, we will focus on cocoa in the south-west.”
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