Sentiments as NNPCL appoints expatriate, moves to plug out inefficiency – Newstrends
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Sentiments as NNPCL appoints expatriate, moves to plug out inefficiency

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2 years ago

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Concern about low productivity may have informed the decision of the Nigerian National Petroleum Company Limited to hand over its commercially viable departments to expatriates.

But this may not seat well with some pro-establishment people who appear ready to frustrate it.

This is coming after its official transitioning into a private entity.
The NNPCL has made the first move with the announcement of Jean-Marc Cordier as the head of the oil trading section of the company.
It announced this in a statement, saying his appointment was in furtherance of the ongoing repositioning in the company for improved growth, better performance and service delivery.
The statement read in part, “A renowned international oil trader, Cordier, a French/Swiss national, holds a Masters degree in Corporate Finance with distinction from Paris 9 University.
“He comes into the role with a rich background spanning over 30 years in physical oil, oil derivatives, and risk management, with significant experience in reorganising and creating a trading business.”
On July 19, last year, President Muhammadu Buhari unveiled the new NNPC, which enabled it to transition into a commercial entity, becoming NNPCL.
The transitioning means that the oil company would be regulated in line with the Companies and Allied Matters Act provisions.
The former state-owned company has been known for its relatively poor leadership and lack of profits for about 45 years.
Experts expect the firm to be independent of government and operate without state funding, with the new goal of delivering value to its shareholders.
The NNPC’s shares and assets, including oil blocs and refineries, are now held by the ministries of petroleum and finance.
But there are doubts how the firm could really function well as a truly private corporation with the government’s appointees still calling the shots at the industry and allowed to superintend over the so-called reorganisation.
The NNPC ought to be reliable cash cow, but over the years, analysts note that it has remained a perennially inefficient and loss-making state-owned oil corporation.
Experts say they wait to see how the transition from NNPC to NNPCL will help it become a profitable business that will benefit Africa’s largest oil producer.
Some people are beginning to cry foul over the appointment of Cordier as this is intended to usher in a new regime, according to a Punch report.
This is mostly coming from those who felt their jobs are on the line and they are looking into the statute book on conditions guiding the appointment of expatriates.
The Punch report read in part, “The announcement, however, triggered resentments among analysts and operators on Monday, though other experts found nothing wrong with the development.
“Energy expert and Chief Executive Officer, Sage Consulting, Bode Fadipe, said, ‘It is of concern to most Nigerians that at this time of our life we are still having a foreigner in such a strategic business enterprise in this country.
‘The question many people will ask is that: Don’t we have Nigerians who can manage that office? Are the expatriates now investors in the business or is it a joint venture that allows a foreigner to hold that kind of position?
‘Has NNPC Ltd sold its shares to the public? To the best of my knowledge, it is still the Nigerian government that owns the shares in NNPCL. It is still owned by the government, so when did it start appointing foreigners to such a level?”
“Fadipe said this was the first time he would see such an appointment in the national oil company, describing the development as abnormal. ‘I think it is an anomaly. I don’t know what would have informed that kind of position, but I think it is a situation that calls for further interrogation,’ the energy analyst stated.
“But on his part, a legal consultant and energy law advisor, Prof. Yemi Oke, argued that under the Petroleum Industry Act 2021, NNPCL should be a going concern, as there were requirements under the law for appointments. ‘There are other Nigerian companies that have expatriates as employees, all they need is to comply with the expatriate quota and show that there’s no local manpower skilled enough to man that particular office, due to the technical nature of the position,’ he stated.”

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We’re not involved in N40m HxAfrica mortgage scheme – FMBN

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12 hours ago

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November 17, 2024

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We’re not involved in N40m HxAfrica mortgage scheme – FMBN

By Dada Jackson

 

The Federal Mortgage Bank of Nigeria (FMBN) has distance itself from claims linking it to a N40 million mortgage pre-financing scheme promoted by Housing Exchange Africa (HXAfrica).

In an official disclaimer issued by Virginia Jang, FMBN’s Group Head of Corporate Communications, it clarified that the bank has no formal partnership or approval arrangement with HXAfrica concerning the alleged scheme.

“The management of the Federal Mortgage Bank of Nigeria wishes to disclaim reports in the media by HXAfrica (Housing Exchange Africa) on a purported N40 million mortgage pre-financing scheme, which referred to FMBN as a partner,” Jang stated

She further explained that while HXAfrica had applied for engagement with the bank, no approvals had been granted, and no formal agreements had been finalized.

Jang emphasized that FMBN remains committed to advancing housing initiatives, including the forthcoming Diaspora Mortgage Scheme, which is being developed in collaboration with the National Diaspora Commission (NIDCOM)

“While the FMBN and NIDCOM remain committed to the roll-out of the Diaspora Mortgage Scheme after obtaining the necessary regulatory approvals, we will endeavour to provide official information and updates on our respective websites and social media handles to prevent the public from being misled,” she added.

The statement also revealed that NIDCOM had issued a similar disclaimer regarding the HXAfrica scheme, urging the public to be cautious of unverified claims.

FMBN assured citizens that details of the official Diaspora Mortgage Scheme would be communicated through authorized channels once regulatory approvals are secured.

The bank reiterated its commitment to delivering credible housing solutions while encouraging the public to rely only on updates from its verified platforms.

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Soludo: Kojo assembly plant will make Anambra auto manufacturing hub

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1 day ago

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November 16, 2024

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Soludo: Kojo assembly plant will make Anambra auto manufacturing hub

 

Anambra State Governor, Professor Charles Chukwuma Soludo, has expressed optimism that the new Kojo automotive assembly plant at Umunya along the Enugu-Onitsha Expressway will not only boost the economy of the state but also reposition it as an automotive manufacturing hub.

The assembly plant nearing completion is expected to roll out its first set of vehicles under the Soludo administration soon.

The governor spoke at the just concluded Anambra State Investment Summit (ANINVEST 2.0) with Kojo Motors as one of the official partners and sponsors.

This year’s ANINVEST held under the theme “Changing Gears: Accelerating Anambra’s Economic Transformation”

was organised by the state government as a pivotal event in advancing the collective vision for rapid development of the state’s economy.

Speaking on the sidelines of the summit, Managing Director of OMAA, Chinedu Oguegbu, reiterated the plan of the company to invite Governor Soludo to commission the plant and drive the first locally assembled vehicle out of the Kojo Assembly Plant by the first quarter of 2025.

He said, “His Excellency is very passionate about the Kojo Motors auto assembly plant. He is very eager to see its completion and commencement of assembly of vehicles come to reality.

“I can assure him and the state government that we are doing everything possible to ensure we meet with the governor’s wishes and aspirations.”

The event brought together stakeholders from the various sectors of the local and global economy including industry leaders, development partners, financial institutions and other relevant participants, all united in a commitment to accelerating the economic transformation of Anambra State.

Anambra, according to the state governor, is fast becoming a renewed investors’ destination for different types of money bags rushing to the state to capitalise on the pledged ease of doing business to set up businesses.

“This time around, one of such massive investments is being undertaken by John Ikenna Oguegbu, an indigene of the state and chairman, founder and CEO, Kojo Motors Limited,” Chinedu Oguegbu said.

Last year September, Governor Soludo performed the groundbreaking ceremony of the Kojo Motors auto assembly plant for the local assembly of the OMAA range of gas-powered mini passenger and commercial buses as well as Chinese range of Yutong passenger and commercial buses.

While congratulating John Ikenna Oguegbu, chairman and chief executive of Kojo Motors Limited for bringing his wealth to his home state to invest. Governor Soludo also commended the Yutong buses manufacturers from China for the smart move of coming to Anambra State to set up the auto assembly plant in collaboration with the local franchisee.

The governor stated that the decision to allow prospective investors to come and invest in the state was not out of philanthropy or charity, but rather a business decision model that would take Anambra State to the world and bring the outside world to the state.

Governor Soludo pledged the state government’s commitment and patronage of the vehicles rolling out of the Yutong Assembly plant.

He declared that the state government under his administration was on course for massive industrial development, employment generation and prosperity for all its citizens.

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Naira slumps on NNPC, marketers importation of fuel

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1 day ago

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November 16, 2024

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Naira slumps on NNPC, marketers importation of fuel 

The naira has weakened further on the parallel market, dropping to N1,740/$ from N1,720/$.

Similarly, the NAFEM official exchange rate showed a slight depreciation on Friday, closing at N1,652/$ compared to the earlier rate of N1,650/$.

The Nigerian National Petroleum Company Limited (NNPC) and other oil marketers imported 1.5 million metric tonnes of petrol and 414,018.764 metric tonnes of diesel between October 1 and November 11, 2024.

The country’s inflation rate also spiked, with the Consumer Price Index (CPI) rising to 33.88% in October, up from 32.70% in September, according to the National Bureau of Statistics (NBS).

The oil importation statistics indicated  13,500 metric tonnes of jet fuel alongside petrol and diesel imports during the 42-day period.

The total value of these products was put at $1.9 billion or approximately N3 trillion.

The breakdown revealed that two billion litres of petrol, 500 million litres of diesel, and 17 million litres of jet fuel were imported.

But at an event in Lagos, NNPC’s Group Chief Executive Officer, Mele Kyari, highlighted the company’s commitment to reducing dependence on imported refined products.

The NNPC spokesperson Olufemi Soneye clarified that while the company prioritizes sourcing from local refineries, importation would continue based on economic factors.

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“Today, NNPC does not import any products; we are taking only from domestic refineries,” Kyari stated. Soneye, however, added, “The GCEO’s statement should not be construed to imply that NNPC is obligated to be the sole off-taker of any refinery or that we will no longer import fuel. While NNPC prioritises sourcing products from domestic refineries, this is contingent upon economic viability.”

The Dangote Refinery, which has advocated for sourcing locally refined products, faces challenges with pricing dynamics, making the transition complex.

Aliko Dangote, the refinery’s President, recently disclosed that it holds over 500 million litres of fuel in reserves.

The NNPC’s importation data showed Lagos, Warri, Port Harcourt, and Calabar as key discharge points for refined products.

Naira slumps on NNPC, marketers importation of fuel 

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