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NNPC Defaults Again On N450bn Debt Repayment

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16 years ago

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The management of the Nigerian National Petroleum Corporation (NNPC) last week again failed to come up with a payment plan for the more than N450billion indebt the corporation owes the Federation Account.

During its monthly meeting in December, the Federation Accounts Allocation Committee (FAAC) expressed strong reservations over the NNPC’s continued refusal to respond to several requests for detailed accounts reconciliation and payment plans, and warned of dire consequences, if a positive response was not received during its next meeting this month.

But The Tide learnt that apparently daring the committee, Minister of State for Finance, Remi Babalola, told newsmen at the end of FAAC meeting in Abuja last week that the representative of the Group Managing Director of NNPC, Mohammed Barkindo, merely showed up with the framework of the repayment without detailed schedule, indicating when and how the payment would be done.

It was gathered that following the discovery of unwholesome discrepancies in the corporation’s accounts of payments to the Federation Account as well as claims for disbursement for both petroleum subsidy and joint venture cash calls, it took NNPC management several months to meet with the FAAC to reconcile the books.

A member of the committee representing one of the oil-producing states, who pleaded anonymity, told The Tide source that the management of the NNPC has been dodgy in presenting the documents required by the FAAC in an apparent attempt to buy time.

“The NNPC’s management knows that there is a lot of corruption going on in its operations and would want to come up with all sorts of manipulative tendencies to buy time. But, there is a limit to how long they can hold the nation to ransom.

“That is the reason it was resolved that we may not have to wait beyond next month’s meeting for them to respond to the request by FAAC for the repayment schedule,” the source quoted a FAAC official as saying.

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AEDC Confirms Workforce Shake-up …..Says It’ll Ensure Better Service Delivery

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6 days ago

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November 10, 2025

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The Abuja Electricity Distribution Company(AEDC) has announced a major restructuring exercise as part of efforts to reposition the utility firm for improved service delivery, operational excellence, and stronger customer focus.
In a statement issued by the AEDC management late last Thursday, the company said the move aligned with its ongoing corporate transformation strategy designed to make AEDC more agile, innovative, and customer-centric.

As part of the restructuring, the company said it had promoted high-performing employees, released retiring staff, and disengaged others whose performance fell below expected standards.

It added that it has also begun implementing a comprehensive employee development and customer management plan to strengthen its service delivery framework.

“In line with its corporate transformation strategy, Abuja Electricity Distribution Company has announced a restructuring exercise aimed at delivering improved services to its customers as well as enhanced operational efficiency and excellence.

“The restructuring is in line with our strategic direction to become a more responsive and efficient organisation, capable of delivering world-class service to our customers.

“As part of the transformation, the Company has promoted high-performing staff, released retiring employees and those performing below par, and has put in motion the implementation of a robust employee development and customer management plan aimed at driving AEDC’s customer-centric focus,” the company said.

AEDC noted that the reforms are part of its broader commitment to provide reliable, safe, and sustainable electricity to customers across its franchise areas, including the Federal Capital Territory and the states of Niger, Kogi, and Nasarawa.

The firm further pledged to continue investing in infrastructure upgrades, digital technologies, and operational innovations to improve service reliability and customer satisfaction.

“With a strong commitment to delighting its customers, AEDC continues to contribute to the growth and development of Nigeria’s energy sector through investments in infrastructure, innovative technologies, and sustainable practices.

“AEDC consistently seeks to improve the quality of life for its customers, promote efficient energy usage, and actively engage with its communities,” the statement added.

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Economic Prosperity: OPEC Sues For Increase In Local Crude Oil Refining 

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6 days ago

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November 10, 2025

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The Chairman of the Organisation of the Petroleum Exporting Countries (OPEC) Board of Governors, Ademola Adeyemi-Bero, has advised local oil refiners in Nigeria to increase in-country refining of crude, noting that value creation for crude oil will support economic growth and development.
Adeyemi- Bero who gave the urge at the Nigerian Association of Petroleum Explorationists Pre-Conference Workshop in Lagos, insisted the country must move away from decades of crude exports and focus on retaining value within the local economy.
He said, “We’ve been an oil and gas exporting country. We produced oil; once there was oil, we put it in a tank and sent it abroad. 40 or 50 years later, people blame Shell and others, but I don’t. They are businesses looking for feedstock for their industrialisation. If you give it to them, they’ll still take it.”
Adeyemi-Bero, who is also the Chief Executive Officer of First Exploration & Petroleum Development Company, said Nigeria had a responsibility to develop its energy resources locally and use them to drive industrial growth, rather than depend on foreign markets, adding that President Bola Tinubu would have returned fuel subsidies if the Dangote refinery had not been there to produce fuel locally.
”Just look at the impact the Dangote refinery has had on foreign exchange and gross domestic product growth. You can imagine what would have happened if that had occurred 50 years ago. If the president had said, ‘I’m cancelling subsidies, and I’m not going to allow multiple exchange rates.’ We didn’t have the option of having petroleum products in this country; I’m sure he would have changed his policies and gone back to subsidies. It’s as simple as that. Let’s not over-aggregate.
He continued, “If you go to Saudi Arabia today, if you go to the UAE, if you go to Qatar, if you go to Malaysia, if you go to Brazil, they are expanding the value chain and keeping it in their space. Now, one man built a refinery; we fought him, we argued with him. But the impact of that Dangote refinery on our GDP and foreign exchange is big.”
According to him, local refining and crude utilisation would also help stabilise the naira and strengthen the nation’s economy.
“If we can sell some oil in naira, let’s do it if it works for both parties. The strength of the naira is what it commands in trade. This is why nobody wants the naira outside this space, but the day you can pay for oil in naira because both parties agree, it strengthens the naira,” he said.
Adeyemi-Bero stressed that Nigeria must deliberately reduce its dependence on exports and focus on value creation to avoid future economic decline.
“We need to decline exports. All of us like to sell, but the person who will buy from us will be willing to buy at the right price. ‘I’m investing in dollars, so don’t come and buy in naira. If I invest in dollars, then pay me in dollars.’ But we could make that happen,” he stated.
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Local Content key To Africa’s Energy Future~NCDMB’S Scribe

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6 days ago

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November 10, 2025

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The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, has advised African nations to transform their abundant hydrocarbon resources into shared prosperity for their citizens and economic development.
He said to achieve this objective, the African nations have to make local content policies and their effective implementation the cornerstone of their energy future.
Ogbe made the recommendation at the 4th edition of African Petroleum Producers Organisation (APPO) conference and exhibition on local content in Africa, held in Brazzaville, Congo, recently.
The Tide gathered that the event was dedicated to advancing local content implementation and energy development in Africa, and was attended by industry stakeholder across the continent.
The Board’s Executive Scribe led the Nigerian delegation as well as represented the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri at the APPO’s statutory ministerial council meeting.
Referencing the continent’s rich endowments of over 125 billion barrels of proven crude oil reserves, contributing over 10 percent of world’s crude oil supply, and over 620 trillion cubic feet of natural gas, Ogbe posited that African countries would not derive optimal value from their hydrocarbon resources without implementing local content policies, thereby creating value from their industry’s operations and connecting other sectors of their economies.
 “Nigeria’s experiences and successes over the past 15 years provides a living example of what deliberate local content policy can achieve”, he said.
Ogbe however stressed that local content is not merely a regulatory framework, but rather it was a development strategy which must be implemented with pragmatism.
“Local content represents our resolve to build indigenous capacity, retain value within our borders, and create sustainable jobs for our young and dynamic population.
Ogbe restated the NCDMB’s commitment to sharing its expertise, learnings, frameworks, and digital tools with other African petroleum producing countries to strengthen local participation across the continent.
He confirmed that the Board’s vision extends beyond Nigeria, adding that the agency has built institutional frameworks that can serve as models for other African nations.
The templates according to him include the local content policy design, implementation structures, monitoring templates, and digital compliance systems like the NOGIC Joint Qualification System (NOGIC JQS).
Speaking further, he canvassed the establishment of an African Energy Services Network to foster collaboration among member states of the African Petroleum Producers Organisation (APPO) for better value retention in the continent’s oil and gas projects.
The NCDMB’S Executive Secretary stated that the Network would add a fresh layer to the strategic vision that birthed such continental organisations as APPO, African Energy Bank, and the African Continental Free Trade Area (AfCFTA), whose collective focus is the advancement of intra-country trade, local content and cross-border linkages to achieve energy security and rapid economic development in Africa.
“It would be a framework where fabrication, manufacturing, and engineering hubs across the continent complement each other, creating a pan-African industrial ecosystem with existing capacities of Nigeria available to drive transformative processes,” he added.
He expressed satisfaction with the establishment of the African Energy Bank, an initiative championed by APPO and Afreximbank for competitive financing in aid of oil and gas projects in Africa, promising that NCDMB stands ready to collaborate, providing technical expertise and project linkages to make the Bank’s objectives a reality.
 While urging all stakeholders to demonstrate equal commitment to the Bank to facilitate real growth and sustenance, he noted that the audience which comprised oil and gas policymakers and stakeholders from across the continent that Nigeria has built world-class infrastructure, such as the multibillion-dollar Egina FPSO Integration Yard at LADOL Free Trade Zone, Lagos.
“The Egina FSPO integration yard at LADOL is a first-of-its-kind facility in Africa. It successfully integrated a Floating Production Storage and Offloading Unit, with a storage capacity of 200,000 barrels of crude oil.
“The facility can serve as a regional hub for FPSO and modular platform integration for the Gulf of Guinea and beyond.
“The NCDMB had established oil and gas parks in Bayelsa and Cross River States to host manufacturing companies producing equipment and components for the oil and gas industry, and thus offering opportunities for small- and medium-scale enterprises (SMEs) and prospective investors to participate.
“The NCDMB’s Centre for Research and Development (R&D) programme fosters collaboration between the academia, industry, and start-ups, is also available for joint African research initiatives to develop African solutions for African problems”, he said.
Giving further insight on the Board’s programmes, the Executive Secretary, said the Board, through its Human Capacity Development (HCD) programmes, has trained over 20,000 Nigerians in specialised oil and gas skills, which could serve as a model replicable across African energy-producing countries.
He indicated that Nigerian service companies are desirous to forge joint ventures with their African counterparts to deliver engineering, marine, fabrication, and digital energy services.
 “In addition, cross-border investments in modular refineries, gas processing plants, and local manufacturing could be promoted”, Engr. Ogbe added.
The Tide gathered that other senior officials of the Board made presentations and participated in panel discussions at the event where they showcased Nigeria’s successful local content models, drawing commendations and interests from different countries eager to understudy and implement some of Nigeria’s models in their industries.
By Ariwera Ibibo-Howells, Yenagoa
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