Connect with us


Six multinationals to pay N249bn oil proceeds in January – NNPC



Group Managing Director of NNPC, Mele Kyari

• Company to deduct N270.83bn from FAAC same month

A total of N249.3bn for October 2021 domestic crude oil sales by six multinational oil companies operating in the upstream sector will be paid in January 2022, the Nigerian National Petroleum Company Limited has said.

The NNPC made this known in its latest report on Nigeria’s crude oil export and domestic crude oil sales in the month of October 2021. The report was obtained in Abuja on Thursday.

This came as the oil firm revealed that it would also deduct N270.83bn from what would be shared by the three tiers of government during the Federal Accounts Allocation Committee meeting in January next year.

It said the N270.83bn was its November 2021 value shortfall. The NNPC posts value shortfalls as a result of what it spends on the monthly subsidy of Premium Motor Spirit, popularly called petrol.

On oil sales, it explained in the report that while the October 2021 crude oil exports of 50,000 barrels under Production Sharing Contract, valued at $4.18m was payable in November 2021, the October 2021 domestic crude oil payment expected in January 2022 from the six firms is N249.3bn.

The company further noted that the October 2021 domestic crude oil payable in January 2022 by the NNPC was in line with the 90 days payment terms, adding that the six firms were its Joint Venture partners.

It outlined the firms from where the funds were being expected to include Chevron Nigeria Limited, Mobil Producing Nigeria, Shell Petroleum Development Company, MidWestern, Pillar and First Exploration and Production.


It said CNL would be paying for 2.268 million barrels of domestic crude valued at N73.85bn, while MPN would remit N123.22bn for 3.8 million barrels of domestic crude oil.

The SPDC and MidWestern would be paying for 828,556 and 100,000 barrels of domestic crude oil valued at N26.966bn and N3.25bn, respectively.

For Pillar and First E&P, the firms would pay for 20,000 and 649,677 barrels of domestic crude oil valued at N650.91m and N21.36bn, respectively.

The report put the total volume of domestic crude oil payable by the firms in January 2022 at 7.666 million barrels, while the value of the commodity was put at N249.3bn.

On the N270.83bn deduction from what would be shared by FAAC in January 2022, the NNPC stated that the amount was an estimate of its value shortfall in November this year.

It said, “The estimated value shortfall of N270,831,143,856.56 is to be recovered from the December, 2021 proceed due for sharing at the January 2022 FAAC meeting.

“This value shortfall consists of N220,110,853,427.56 for November and N50,720,290,429.00 deferred for recovery in December 2021 FAAC Report.”

The NNPC had been posting value shortfalls on a monthly basis due to its spendings on petrol subsidy, a development that had consistently reduced its remittances to FAAC.

State governors had kicked against the continued subsidy on petrol by the NNPC, but experts and labour unions cautioned the government to be careful as it considers a halt in the PMS subsidy regime.

The NNPC has remained the sole importer of petrol into Nigeria for about four years running and has been shouldering the cost of the PMS subsidy, being the provider of last resort.

Other oil marketers stopped the importation of petrol due to the instability in the country’s foreign exchange rate and the inability of marketers to efficiently access the United States dollar for PMS imports.



NMDPRA seals 16 gas plants, arrests five suspects in Edo



The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has sealed 16 illegal gas facilities in Edo State.

Some filling stations were also sealed over an alleged breach of rules and regulations.
The agency arrested five suspects during the exercise.
The agency’s state comptroller, Ebi Ogionwo, said the clampdown was to curb the activities of illegal and unlicensed oil and gas operators in the state.
He alleged that some misguided operators were setting up oil and gas facilities in areas not suitable for the business and without necessary approval from the agency.
Ogionwo said, “It is an offence for anyone to site such facilities without due approval from the NMDPRA. The agency is out to bring sanity to the operations of midstream and downstream petroleum business in the state.”

He further warned investors against taking laws into their hands by setting up gas and petroleum facilities in areas not approved by the agency.

Ogionwo said five suspects arrested during the exercise would be charged to court.

“There are laws, guidelines and regulations that people must follow before setting up oil and gas facilities. So, the purpose of the operations is also to check the level of compliance by those who have set up these facilities in the state and take necessary actions that are required,” he said.

Ogionwo added that the illegal operations of oil and gas facilities compromised the safety of lives, property, environment as well as deprived both the state and Federal Governments of the revenue that should accrue to them through taxes and other sources.

Continue Reading


Lagos suspends RTEAN activities, sets up caretaker committee



The Lagos State Government has suspended all activities of Road Transport Employers Association of Nigeria (RTEAN) in the state.

Special Adviser to the Governor on Transportation, Sola Giwa, who announced the suspension, said the action became imperative following some pockets of violence recorded in Ojo and Lagos Island on Wednesday.

Already, he said a 35-man caretaker committee had been constituted to take over activities of the union.

The caretaker committee is headed by Sulaiman Adeshina Raji, with Bamgbose Oluseyi as deputy chairman and members are Sunday Aransiola, Sulaiman Onabanjo, Azeez Abdulrahman, Isiaka Seriki, Victor Ifemenam, Kareem Babatunde, Amusan Abdulrahman, Teslim Adeshina, Sulaiman Surajudeen and Fatai Rauf.

Others are Sunday Banjo, Segun Omole, Thomas Akinkayode, Taiwo Lasisi, Gbenga Kashimawo, Samson Ajala, Taiwo Daodu, Sule Aliu, Ahmed Musa and Oladipupo Ibrahim. Adewale Adeniyi, Olatunji Durojaiye, Wasiu Olanrewaju, Taofeek Onileola, Yusuf Afolabi, Bode Ogungbade, Alh. A.A. Ussaini, Saliu Usman, Saheed Badru, Kolawole Yusuf, Kayode Thomas, Idowu Oyewole and Salami Babatunde Ope, are to also join them.

Giwa reiterated that suspension became necessary to prevent further acts of violence in the state, stressing that men of the Lagos State Police Command would be deployed in different parts of the state to enforce the action and ensure safety of lives and property.

He said the state government met with some representatives of the RTEAN on Wednesday, following a protest by some members of the union demanding the removal of their national president, adding the government had assured them of a thorough investigation into the allegations levelled against the union’s president with a promise to resolving all lingering issues.

Continue Reading


Ade.Ojo hails Mandilas GM @60, says Toyota family proud of you



Celebrant GM Mandilas, Kemi Koyejo; Chairman of Toyota Nigeria, Chief Michael Ade.Ojo, and his wife, Taiwo Ade.Ojo, at Kemi's 60th birthday in Lagos

The Founder of Toyota Nigeria Limited, TNL, Chief Michael Ade Ojo, has described the General Manager of Mandilas Motors, Ms. Kemi Koyejo as a performer, who takes her job very seriously.

Chief Ade Ojo, who spoke at the MUSON Centre, Lagos during the 60th birthday ceremony of Koyejo as the chairman of the occasion, showered encomiums on the GM for her contributions towards driving Toyota brand sale and development in Nigeria.

He said, “Olukemi is a performer, a wonderful lady, who takes her job very seriously. She is “Lady Toyota”. She never misbehaves and I want to pray that God should continue to bless you the more.”

Chief Ade Ojo, who recalled that Kemi’s father was his senior in high school, expressed no surprise at  Kemi’s sterling performance and behaviour, given her family background.

“The Toyota family in Nigeria is very proud of you and God will continue to be with you,” he prayed.

The 84-year-old business mogul attended the event with his wife, and senior management staff of Toyota Nigeria Limited including the Managing Director, Mr. Kunle Ade Ojo.

Reiterating Chief Ade Ojo’s commendation on the Mandilas General Manager, the Managing Director of Toyota, Mr. Kunle Adeojo, also said that the Mandilas General Manager is very hard-working and has brought many ideas that have led to the growth of the Toyota brand in Nigeria.

He also used the occasion to announce that the Nigerian Institution of Mechanical Engineers has conferred on him a Fellow of the institute.

A trained engineer, Mr. Kunle Ade Ojo, has been at the helm of affairs at TNL and has taken the company to greater heights despite the challenges in the Nigeria’s auto sector.


Continue Reading