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NNPC spends N81.4bn on refineries in eight months, refines zero crude

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The Nigerian National Petroleum Corporation
pumped a total of N81.41bn into the nation’s refineries between January and August this year.
A report from the corporation which contains this figure however indicates that the facilities refined no drop of crude throughout this period.
With a revenue of N6.54bn and a total expense of N81.41bn, the facilities ended up with a deficit of N78.87bn, according to statistics in the just released August 2020 report of the NNPC.
It also showed that the revenue, expense and deficit of the Kaduna refinery during the period were N6.22bn, N33.61bn and N27.39bn respectively.
Similarly, Warri refinery earned a revenue of N257m, incurred an expense of N22.23bn and posted a deficit of N21.98bn during the same period.
For 13 months, the facilities were running without refining any crude oil.
Data from the consolidated refineries operations put the volume of crude processed by the facilities from August 2019 to August 2020 at zero metric tonnes.
With a cumulative plant capacity of 445,000 barrels per day, the facilities recorded a capacity utilisation of zero per cent throughout the 13-month period.
The nation has been importing the bulk of its refined petroleum products for many years.
The Federal Government last week said Nigeria would soon resume the importation of petroleum products from Niger Republic.
The national oil firm again explained in its latest monthly report that the declining operational performance of Nigeria’s refineries was attributable to ongoing revamping of the facilities.
It said the revamping of the facilities was expected to further enhance their capacity utilisation once completed.
Operators in the downstream oil sector as well as economists have repeatedly called for a fast revamp of Nigeria’s refineries in order to halt the continued importation of refined petroleum products.

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We won’t tamper with foreign currency in your dom accounts, CBN assures customers

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The Central Bank of Nigeria (CBN) says speculations that the apex bank is considering converting foreign exchange (FX) in the domiciliary accounts of customers to naira should be ignored.

 

Speaking with reporters on Monday in Abuja, Osita Nwanisobi, the apex bank’s acting director in charge of corporate communications, described those making such allegations as “criminal speculators whose intention was to create panic in the foreign exchange market”.

 

On Tuesday, CBN announced that it would discontinue sales of FX to Bureau De Change operators(BDCs).

 

Godwin Emefiele, governor of the apex bank, had accused BDCs of becoming agents for illegal financial flows and working with corrupt people to conduct money laundering in Nigeria.

 

The development has heightened fears of forex scarcity among Nigerians and led to a significant drop in the value of the naira against the dollar.

 

Addressing insinuations about CBN’s plan to check the purported unavailability of forex, Nwasinobi assured that the apex bank will not tamper with the foreign exchange deposits in the accounts of customers.

 

“At no time did the CBN ever imply that it would tinker with the foreign exchange deposits of customers,” he said.

 

Nwasinobi urged operators of domiciliary accounts and other members of the banking public to go about their legitimate foreign exchange transactions and disregard fictitious stories aimed at pitching them against the apex bank and triggering chaos in the system.

 

Nwanisobi assured the banking public that the CBN would monitor the commercial banks to ensure they meet the legitimate FX demands of customers.

 

He said the CBN had put in place monitoring mechanism to guarantee the seamless sale of foreign exchange to customers who supported their requests with relevant documentation.

 

He also said the CBN had extracted the commitment of the banks, through their chief executive officers, that customers with legitimate FX requests will not be turned back.

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FG adopts gas as strategy towards climate-change-net-zero-emission ― Sylva

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The Minister of State for Petroleum Resources, Timipre Sylva, Tuesday, disclosed that the Federal Government has adopted gas as a strategy to meeting the nation’s climate-change-net-zero-emission target.

 

Speaking at the Annual International Conference & Exhibition of the Society of Petroleum Engineers in Lagos with the theme: “The Future of Energy – A Trilogy of Determinants: Climate Change, Public Health, and the Global Oil Market”, he expressed the government’s concern about joining the rest of the world to transit from oil to cleaner fuels.

 

Specifically, he said: “Let me state categorically that our approach towards the climate-change-net-zero-emission debate is to optimize the use of our abundant gas resource domestically as a transition fuel option towards meeting our Nationally Determined Contributions to climate change.

 

“As a Government, we are determined to encourage more penetration of natural gas and its derivatives for domestic utilisation, power generation, gas-based industries, and propulsion in all aspects of the national economy. This would in a fundamental manner address the great challenge posed by volatile oil market, the environmental issues and public health concerns.”

 

The Minister of State, who reflected on current issues in the global oil market, said: “Regarding the global oil market in the foreseeable years, it is becoming obvious that a global migration from a fossil fuel-based economy to renewable would engender a corresponding decline in hydrocarbon including possible divestiture in the sector as deliberate frameworks are being championed to discourage the extraction of carbon-laden resources. The COVID-19 Pandemic has further exacerbated the investment decline.

 

“The Government of Nigeria in collaboration with global partners are exploring policies, technologies, and investments to address the current global challenge that will support migration from our reliance on carbon dependent fuels to meeting our commitment to the Paris Agreement.”

 

He, however, added: “It is our belief that the distinguished Society of Petroleum Engineers (SPE) will be at the forefront of our quest to achieve the desired balance of a clean environment, safe public health, and a renewed global oil market. This SPE Annual International Conference and Exhibition will be an appropriate platform to bring to the front-burner the critical discussions that would forge a robust and implementable clean energy solutions pathway for Nigeria.”

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Court unfreezes Dokpesi’s accounts, orders release of seized documents

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A Federal High Court in Abuja has ordered accounts of businessman and politician, Raymond Dokpesi be unfrozen.

 

The Court also ordered the release of his documents being held by the State.

 

The Economic and Financial Crimes Commission (EFCC) had obtained court order freezing the accounts and seized his documents in the course of prosecuting Dokpesi and his company, Daar Investment and Holdings Limited, before the court.

 

They were charged with engaging in procurement fraud and breach of public trust, in relation to the N2.1billion they got from the Office of the National Security Adviser (ONSA), under Colonel Mohammed Sambo Dasuki (rtd).

 

In a judgment on April 1, the Court of Appeal in Abuja set aside the November 21, 2018 ruling by Justice John Tsoho of the Federal High Court, rejecting their no-case submission and ordering Dokpesi and his company to enter a defence.

 

In her lead judgment in the unanimous decision of the appellate court’s three-man panel, Justice Elfrieda Williams-Daudu, held among others, that the prosecution failed to establish a prima facie case against Dokpesi and his company to warrant their being called upon to enter a defence.

 

The Court of Appeal then upheld their no-case submission, quashed the charge against them and discharged and acquitted them.

 

Armed with the Court of Appeal decision, Dokpesi returned to the Federal High Court, Abuja with an application for orders directing the EFCC to unfreeze his account and return documents seized from him while his trial lasted.

 

In a ruling on Tuesday, Justice Tsoho rejected the opposition by the prosecution and proceeded to grant the application by Dokpesi and his company.

 

Justice Tsoho, who is the Chief Judge of the Federal High Court, held that since the charge which precipitated the restriction on the accounts had been quashed and the applicants discharged and acquitted by the Court of Appeal, the restriction could no longer be justified.

 

The judge further held that the EFCC had no basis to sustain the post no debit order on the accounts in view of the subsisting and valid order of the Court of Appeal.

 

He noted that the EFCC did not obtain any order staying the execution of the judgment of the Court of Appeal since it was delivered on April 1.

 

On EFCC’s argument that it has lodged an appeal at the Supreme Court against the judgment of Court of Appeal, Justice Tsoho held that the notice of appeal filed at the apex court cannot, in law, stay the execution of the subsisting judgment.

 

He added that the prosecution ought to have obtained an order staying the execution of the judgment.

 

Justice Tsoho was of the view that in the absence of any order staying the execution of the judgment by the Court of Appeal, his court was bound by law to give effect to the judgment.

 

He then ordered that the vacation of the freezing order earlier obtained by the EFCC on the accounts in compliance with the judgment of the Court of Appeal.

 

The judge equally ordered that all documents seized from Dokpesi or voluntarily surrendered by him to the state be immediately returned to him.

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