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‘Fuel Importation: Nigeria’ll Lose $561.2m From NNPC’s 50% Rebate’

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The Managing Director, Nigerian Ports Authority (NPA), Hadiza Bala Usman, says the country would lose the sum of $561.2 million and N334.2 million revenue from the 50 per cent rebate approved by the Federal Government for the Nigerian National Petroleum Corporation (NNPC) to import Premium Motor Spirit (PMS) in 2018.
Usman disclosed this last Saturday when she appeared before the House of Representatives Committee on Ports and Harbours for the 2017 budget evaluation and 2018 budget defence of her agency.
The NPA boss noted that between 2009 to 2018, the country lost $234.4 million and N3.2 billion revenue as a result of the rebate granted to NNPC for importation of PMS, noting that there was no evidence the policy impacted positively on the populace as the pump price of fuel remained same.
Usman also called for the review of the current automotive policy in the country, pointing out that the policy, which increased the tarrif on imported fairly used vehicles into the country was making government lose revenue with reducetion in importation.
Consequently, she appealed to the House Committee chaired by Patrick Asadu to intervene so that the proposed 50 per cent rebate for the NNPC, as well as the automotive policy, are reviewed.
According to her, “The Nigerian Ports Authority has been directed to provide 50 percent rebate on all PMS vessels that are coming into Nigeria, so we are concerned about that 50 percent rebate because it was instituted and suspended in June 2015 and within that period while it was on (2011-2015) there was no reduction in the price per litre of PMS, so, who enjoy that rebate?
“While the rebate was on, the Federal Government lost 50 percent of the value of the revenue that ought to be paid for vessels coming into the ports. We questioned that and we need to have clarity on that.
“What NPA lost as a result of 50 percent reduction of charges on PMS vessels between 2009 to 2015, $234.4 million and N3.2 billion while in 2018, $561.2 million and N34.2 million would be lost.
“Now that it has been reintroduced, we need to see that recognition within the PPPRA templates, within the price for a litre of fuel. We need to see that, to enable Nigerians appreciate and recognise the value of the rebate. We cannot keep on giving a rebate without it being reflected in price of petrol, we are concerned about that.”
Usman added :”In addition, we have also been given a directive to collect payments in naira as opposed to payments in dollars, the marine industry payment is dominated in dollars, so, even if Nigeria collects the revenue in naira, Nigerians will not benefit from it because the shipping trade is done in dollars.
“Another curious leg to it is that NNPC is the sole importer of PMS, so, NNPC already from 2012 till date, NPA collect payments from NNPC in naira, if the NNPC is the sole beneficiary, so why are you agitating to collect revenue in naira, since you are the sole importer, you are already enjoying that concession rate because you are government, and you said you are the only one that imports, so why are you now asking for government to collect from others in naira.”
Earlier, Asadu charged Ministries Departments and Agencies (MDAs) to ensure that government gets value for money in the utilisation of the funds allocated to them.

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Motorists Want NNPC Mega Filling Station In Bori

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Motorists plying the Ogoni axis in Rivers State have urged the Nigeria National Petroleum Corporation, (NNPC) and the Department of Petroleum Resources, (DPR) to make real their promise of establishing at least one of the mega filling stations in Bori, headquarters of Khana Local Government Area to give the people access to the facility.
Some of the motorists and residents of Bori who spoke with The Tide said the absence of the NNPC filling station in Bori has made them to continue to suffer exploitation in the hands of private filling station owners who inflates their prices at will.
A commercial motorist,  Mr Paul Ndeemua  who spoke with our reporters said motorists plying the Bori route were excited when they heared of plans by government  to build a mega filling station in Bori, but they were surprised that there was no trace of the project in Bori long after the plan was made public through the media chat.
He said:  “ We commercial motorists operating within the Bori axis were happy when we learnt sometime ago that the government was going to build mega filling station in Bori like other parts of the state were they are located, but it’s unfortunate that almost three years after the plan was announced, nothing has happened. I want to use this opportunity to call on the NNPC and the DPR to fulfill their promise by building the filling station in Bori. The project will go a long way to help commercial motorists in the area, especially in terms of access to products.”
Another commercial motorist, Mr Akanimo Udosen who spoke with The Tide also decried the conspicuous absence of the NNPC  Mega Filling Station in Bori despite its location in other places.
Resident of Bori also called on the Government to build a mega filling station in Bori to serve the people of the area. Apart from assess to petroleum products, the student said the project will also give a face lift to Bori.
He called on the Rivers State Government and stakeholders in ogoni to address the rising challenges of insecurity in Khana LGA to attract investment in the area.

 

Taneh Beemene

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Oil & Energy

PPPRA To Audit Infrastructure In Downstream Oil Sector

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The Petroleum Products Pricing Regulatory Agency (PPPRA) says it will commence a comprehensive audit and survey of downstream oil and gas logistic facilities in the country.
Mr Abdulkadir Saidu, PPPRA executive secretary, disclosed this in a statement issued in Abuja last Saturday.
He said that the state of infrastructure in the downstream of the Nigerian oil and gas sector largely was a reflection of profitability and proficiency of the market.
He added that the aim of the audit was to assess the state, adequacy and identify the infrastructure gap in the sector.
“ The PPPRA recognises that the state of infrastructure in the downstream requires constant assessment to ensure uninterrupted supply of products in addition to providing up to date data for operation in the sector.
“Oil and gas processing, storage and distribution facilities, jetties downstream and pipelines, retail outlets for oil and Liquified Petroleum Gas (LPG)  will be the focus of the survey.
“ The audit also aimed at assessing the impact of government policy and regulation on the sector’s operating environment and viability, with a view to addressing identified loopholes,” he said
According to him, the exercise, which is expected to commence in the second half of 2019, is a long awaited exercise by operators and other stakeholders.
He noted that the outcome of the exercise would contribute to policy formulation and impact investment decision-making by investors.
Saidu said that the management of the PPPRA would champion the exercise, noting that it was in furtherance of the reform programme of Mr President in the oil sector.
“All oil and gas depot owners, marketers, retail outlets and LPG plant owners are stakeholders in this exercise.
“The ultimate objective of which is to enhance the commercial viability of the sector and improve its level of attractiveness as investment capital destination of choice for would-be investors.
“We therefore wish to solicit the cooperation and support of all stakeholders in ensuring its success,” he said.

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NNPC, NOSDRA Move To Check Oil Spills

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The Nigerian National Petroleum Corporation (NNPC) and the National Oil Spill Detection and Response Agency (NOSDRA) say they would partner to check the incidences of oil spill across the country.
Group Managing Director of the NNPC, Malam Mele Kyari made this known when he received the Director-General of NOSDRA, Mr Idris Musa at the NNPC Towers in Abuja on Wednesday.
In a statement signed by Mr Ndu Ughamadu, the spokesman for the corporation, Kyari said that as a national oil company, the NNPC pipelines, flow stations and assets across the country were jointly owned by the federation.
He maintained that the corporation produces crude oil to maintain a balance sheet for the nation.
“We have taken a number of steps to stem oil spill by deploying technology in order to make sure that whenever there is an oil spill incidence, it is contained almost immediately.
“We contain the incidences of oil theft, pipeline vandalism and acts of saboteurs and we intend to bring it to the barest minimum,” he said.
Kyari noted that the NNPC operated both crude oil and petroleum products pipelines, adding that the corporation was collaborating with its partners to curb incidences of oil spill in its areas of operations.
He said the corporation would also forge closer ties with NOSDRA to proactively forestall oil spill in areas that were prone to incessant incidences.
Earlier, Musa said the agency was prepared to partner the NNPC in mitigating oil spill in all areas of its operations.
He added that the partnership would ensure a good operating environment for the operators and the communities.
He added that breaking of petroleum products pipelines did not provide food, water and good environment for the people.

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