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Petroleum Imports Gulp N2.2trn In Nine Months, NBS Confirms

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The Federal Government spent N2.17trillion in the first nine months of 2020 on importation of petroleum products into the country.

The petroleum products, according to the latest data obtained from the National Bureau of Statistics (NBS), consists of mineral fuels like Natural gas, oil, Bituminous coal, amongst others.

A breakdown of the nation’s spending on the importation of these products shows that a total of N1.25trillion was spent in the first quarter of the year, Q1’20, represented by N662.2billion, N290.6billion and N299.8billion in January, February and March.

Apparently, due to the outbreak of the Covid-19 pandemic which led to a nationwide lockdown, the spending on the importation of petroleum products declined significantly in the second quarter of the year (April to June) to N221.3billion.

The nation’s petroleum import for Q2’20 shows an 821% decline when compared to the first quarter import statistics.

However, in the third quarter of the year, the country recorded another sharp increase in spending on petroleum products importation at N700.4billion, at the time the government relaxed the lockdown.

Europe topped Nigeria’s highest source of the imports, as a total of N593.3billion was spent in sourcing the products from the continent, while Asia came second with N61.4billion, followed by America N37.2billion.

Surprisingly Nigeria also imported petrol from African countries spending a total of N8.6billion.

Meanwhile, stakeholders across the nation have continued to lament on the state of the nation’s petroleum industry.

Available statistics show that Nigeria holds 37 billion barrels of proven oil reserves as of 2016, ranking 10th in the world and accounting for about 2.2 per cent of the world’s total oil reserves of 1.65 trillion barrels.

Nigeria has proven reserves equivalent to 237.3 times its annual consumption.

This means that, without Net Exports, there would be about 237 years of oil left (at current consumption levels and excluding unproven reserves).

Globally, Nigeria stood at 37th in oil consumption, accounting for about 0.4 percent of the world’s total consumption of 97 million barrels per day.

Nigeria consumes 0.10 gallons of oil per capita per day or 35 gallons per capita per year.   Refineries operations Nigeria also have four refineries situated at Kaduna, Warri and two in Port Harcourt, but they are all in a series of challenges plaguing the fate of its productivity, as they have failed to produce any petroleum product in the past three years.

Despite this abundance the nation’s four refineries processed no crude and combined yield efficiency is zero percent in the first nine months of 2020.

Though industry authorities have claimed that this flat output was, due, largely to on-going rehabilitation works in the refineries, records show that the output position has been less than 10 percent of installed capacity in the last 10 years.

However, the authorities are of the view that despite the deplorable operational state attributable to the ongoing revamping of the refineries, the efforts are expected to further enhance capacity utilization once completed. In its latest operational report, the Nigeria National Petroleum Corporation (NNPC), stated that, “The Corporation has been adopting a Merchant Plant Refineries Business Model since January 2017. The model takes cognizance of the Products Worth and Crude Costs.”

A cumulative of the combined value of output by the four refineries (at Import Parity Price), along with the operational expenses in the first eight month of 2020 amounted to an operating deficit of N74.8billion.

This shows a decline of 28 percent when compared to the corresponding period of 2019 which recorded N104billion.

It was gathered that there was no associated crude plus freight cost for the refineries since there was no production.

The Petroleum Product Marketing Company (PPMC), a subsidiary of NNPC, sold a total of 9.86 billion litres of petroleum products between January and August, 2020.

This is a decrease of 30 percent when compared to 14.108 billion litres sold in the corresponding period of 2019.

The decrease, according to the corporation, is as a result of low operational activities due to the outbreak of Covid-19 pandemic.

The Department of Petroleum Resources (DPR), has assured Nigerians of petroleum products’ availability and stable fuel supply in the country at all times on the strength of its import dependency.

The DPR also cautioned oil marketers against engaging in sharp practices that are capable of distorting products supply.

The DPR stated that there are sufficient petroleum products nationwide, while it also advised petroleum products marketers against hoarding and creating artificial scarcity of the commodity.

The apex petroleum industry regulator promised to intensify its monitoring and surveillance of petroleum products outlets to ensure compliance with quality, quantity and safety of operations in line with its regulatory mandate.

It also advised consumers to report any infraction, such as under dispensing of petroleum products at any filling station to any DPR office nationwide.

The DPR restated its commitment to safety and advised consumers to observe all necessary safety protocols in the handling of petroleum products especially at this season of harmattan.

It further assured Nigerians that it would continue to initiate appropriate initiatives to enable business and create opportunities for investors and stakeholders in the oil and gas industry in Nigeria.

In another development, the NNPC has advised against the precipitous relocation of tank farms from their current locations along Ijegun, Kirikiri areas in Lagos and other parts of the country, in order to avoid dislocation in the supply and distribution chain of petroleum products across the country.

The corporation made the submission at a hearing by the House of Representatives’ Ad-hoc Committee on Relocation of Tank Farms in Residential Areas of Ijegun, Kirikiri.

While presenting the position of NNPC at the hearing, Group Managing Director, Mallam Mele Kyari, stated that NNPC was not averse to the relocation of petroleum products tank farms and depots sited in residential areas but would rather that it be carried out in a planned manner so as not to cause disruption in the fuel supply and distribution chain.

According to Kyari, “Tank farms and depots were a major artery for receiving and distributing imported petroleum products to all parts of the country and that their abrupt relocation could trigger a crisis not only in the downstream sector but also in the nation’s economy in general”.

 

 

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HMSPR Oil, NCDMB, NIMASA, Stakeholders Praise Tamrose for Phenomenal Growth, Exemplary Local Content Capacity Building and Financial Fidelity …Pledge Increased Financial and Institutional Support for Indigenous Companies

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The Honourable Minister of State for Petroleum Resources, Oil, Senator Heineken Lokpobiri, has renewed the Federal Government’s commitment to unlocking wider financial and institutional support for indigenous oil and gas service companies, citing the success of Tamrose Limited and the Nigerian Content Intervention Fund (NCI Fund) as a strong demonstration of what structured, accessible support can achieve.

Speaking at a landmark stakeholder event held at the Nigerian Content Development and Monitoring Board (NCDMB) Headquarters in Yenagoa, the Minister commended Tamrose Limited for its financial discipline and operational growth following the full repayment of its $10 million NCI Fund facility. He noted that the company’s progress underscores the importance of expanding support mechanisms to enable more Nigerian-owned companies to scale capacity and deepen their participation in the country’s offshore and marine logistics sector.

He said, “Over 70 companies have accessed the NCI Fund, yet only 21 have fully repaid their loans — and Tamrose is one of them. Their achievement reflects the very purpose for which the Fund was created: to strengthen local capacity and empower Nigerian service companies to compete at home and across Africa. Through this support, Tamrose has not only grown its operations but expanded beyond Nigeria’s shores, increasing its fleet from four vessels to fifteen, creating jobs for Nigerians, and setting a clear benchmark for operational excellence. As Minister and Chairman of NCDMB, our commitment is to continue fostering this kind of growth by ensuring that indigenous companies receive the support they need to scale, thrive, and deepen their contribution to the nation’s oil and gas sector.’’

Also speaking on behalf of the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, the General Manager, Corporate Communications & Zonal Coordination, Esueme Dan Kikile, described Tamrose as an example of the outcomes envisioned when indigenous firms apply discipline, capability, and innovation in their operations noting, “Today is not just a celebration of one company; it is a reaffirmation of what is achievable through the Nigerian Content framework. Tamrose has shown strong leadership, financial fidelity, and accountability. Their growth—from a small operator to a major marine logistics service provider—is proof that the NCI Fund is working. This is why we will continue to support more credible Nigerian companies to access this fund and expand their capacity.”

The event themed “Celebration of Growth and Impact” hosted by Tamrose in collaboration NCDMB, brought together senior government officials, leaders of international and indigenous oil companies, financial institutions, traditional rulers, and other strategic partners. Distinguished guests included Dr. Olasupo Olusi, Managing Director of the Bank of Industry; Dr. Dayo Mobereola, Director-General of NIMASA; Rear Admiral Gboribiogha John Jonah (Rtd), former Deputy Governor of Bayelsa State; and representatives of Keystone Bank, ExxonMobil, First E&P, and Oriental Energy.

In his remarks, Mr. Ambrose Ovbiebo, Executive Chairman of Tamrose Limited, expressed appreciation to the Ministry, NCDMB, and Bank of Industry for their support and reiterated the company’s commitment to strengthening indigenous capacity in offshore marine logistics. He said, ‘’We are gathered here today using Tamrose as a point of contact, a convergence and amplification of the voices of all Nigerian entrepreneurs in the oil and gas sector and beyond. We are here to say loudly that Nigeria can work, and that indigenous Nigerian companies can scale and dominate Africa and indeed the world — with the right government and institutional support. In 2019, Tamrose accessed and secured a US $10 million facility through the NCI Fund. That singular support from NCDMB turned out to become not just pivotal, but a foundational catalyst that has propelled and continues to accelerate our growth and evolution as a company. Since then, our operations have grown from four vessels to fifteen active units, comprising ten security patrol vessels and five platform supply vessels — all purpose-built and carefully selected, to safely deliver our hallmark excellent services of reliability and efficiency. ‘’

Over the years, Tamrose Limited has consistently demonstrated its commitment to indigenous capacity development, human capital growth, and community empowerment through a range of initiatives. Since accessing the NCI Fund in 2019, the company has expanded its fleet from four to fifteen vessels — achieving about 300% fleet growth and extending operations from Nigeria to Angola while proudly flying the Nigerian flag everywhere they go. Tamrose has created nearly 250 direct jobs, supported over 600 indirect family livelihoods across the maritime ecosystem, and trained more than 100 cadets under the Tamrose Cadetship Training Scheme to international seafaring standards. The company has also enhanced healthcare accessibility for its workforce, enrolling over 1,500 employees in HMOs, and significantly accelerated NCDMB’s goal of achieving 70% local content by 2027. Beyond business growth, these initiatives underscore Tamrose’s ongoing commitment to building a strong, skilled, and sustainable Nigerian maritime sector.

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HYPREP Probes Overhead Tank Collapse …Plans To Supply Water In 65 Ogoni Communities

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The Hydrocarbon Pollution Remediation Project (HYPREP) has taken prompt steps to unravel the circumstances surrounding the collapse of the overhead tank of the Gwara Water Station recently commissioned by the Minister of Environment, Malam Balarabe Abbas Lawal in Ogoniland, Rivers State.
This is even as the Project has restated its determination and commitment to supplying quality potable water to 65 Ogoni communities before the end of the year.

HYPREP said while addressing journalists in Port Harcourt that it has commenced an investigation into the collapse of the overhead tank at the Gwara Water Station in Khana Local Government Area of Rivers State.
The high-level committee set up by the Project Coordinator, Prof Nenibarini Zabbey as an interim measure, is mandated to determine the immediate and remote causes of the incident.

The Vice Chairman of the committee, Barrister Gowon Ichibor while addressing newsmen said the committee has already swung into action, as it has visited the site of the incident to take stock and assess the situation.

Barrister Ichibor noted that the committee is firmly on top of the situation, as it is poised to carry out a painstaking investigation to unravel the immediate and remote causes of the unfortunate incident.

He further indicated that it is hasty and premature at this point, to pinpoint what might have caused the incident but promised to furnish the public with all necessary information in connection with the overhead tank collapse as soon as possible.

While assuring affected communities of HYPREP’s determination to restore the water facility as quickly as possible, he said the committee would tidy up its work in less than no time and promptly brief the press on its findings.

The committee did not, however, foreclose the possibility of recommending appropriate punitive measures and sanctions to be meted out to culprits at the end of its assignment, to prevent future occurrences.

Meanwhile, HYPREP’s Head of Communications, Dr Enuolare Mba-Nwigoh, who also lent his voice, described the incident as a temporary setback, as the Project would take appropriate and prompt actions to restore potable water supply to the affected Ogoni communities.

He also reaffirmed HYPREP’s commitment to upholding global best practices, standards and quality in the execution of projects, and sympathised with the affected communities over the unfortunate incident, saying, 16 water facilities have already been commissioned, which are effectively and satisfactorily serving over 40 Ogoni communities.

With the collapse of the overhead tank of the Gwara Water Station, he revealed that 40 Ogoni communities are currently enjoying potable water.

The head of communications further disclosed plans by HYPREP to provide potable water to 65 Ogoni communities before the end of the year.

While regretting the unfortunate incident, Dr Mba-Nwigoh urged Ogoni people and residents of Gwara community to remain calm, peaceful and law-abiding, and eschew all forms of speculations and rumour-mongering, as the Project is on top of its game to remedy the situation.

He reeled out the achievements and milestones so far recorded by HYPREP, saying, the Ogoni cleanup programme is very much on course.

It would be recalled that HYPREP had earlier in a statement said it was deeply disturbed by the collapse of the overhead tank at Gwara Water Station, stressing that the
Project Coordinator, Prof Nenibarini Zabbey, had set up a high-level committee to determine the immediate and remote
causes of the incident.

It further noted that the committee had already visited the site and begun a detailed investigation to establish whether the collapse resulted from structural failure or possible third-party interference.

HYPREP, in a statement signed by its management, expressed concern over the incident and sympathised with the Gwara community, urging residents to remain calm as efforts are being made to restore the damaged facility and resume water supply to affected areas.

The Project assured that it remains committed to delivering quality projects that meet international standards, adding that internal and external quality control measures have been introduced, including the engagement of EcoProject as Project Consultant, supervision by the Monitoring and Evaluation Unit, and oversight by water supervisors.

It noted that aside from this isolated case, 16 water stations have been commissioned across Ogoniland, providing water to over 40 communities, with some facilities operating successfully for more than two years.

The Project added that sustainability plans have been put in place to ensure continuous water supply to communities. These include the formation of Water Consumers Associations (WCA), construction of solar farms for alternative power, and training of laboratory staff.
It also stated that one of the key features of the HYPREP water projects is the establishment of laboratories to ensure that water supplied to communities meets the World Health Organisation (WHO) standard.

HYPREP reaffirmed its commitment to quality service delivery and assured that all necessary steps are being taken to address the situation and prevent future occurrences.

The Project has also set up a technical sub-committee over the collapse of the overhead tank of the Gwara Water Station, to foster and promote accountability in the implementation of projects.

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Tinubu Committed To Environmental Sustainability, Benefits To Ogoni–Minister

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As the Ogoni cleanup programme being implemented by the Hydrocarbon Pollution Remediation Project(HYPREP) continues to record significant milestones across thematic areas, the Federal Government says such gestures further demonstrate President Bola Tinubu’s commitment under the Renewed Hope Agenda to environmental sustainability and ensuring the Project brings benefits to Ogoni people.

The Minister of Environment, Malam Balarabe Abbas Lawal, who made this assertion during the commissioning of the Bane and Gwara water schemes in Khana Local Government Area of Rivers State, in line with HYPREP’s mandate to provide potable water to Ogoniland, said the provision of potable water is a critical step towards improving public health, reducing waterborne diseases and enhancing the overall quality of life.

The latest commissioning brings the water stations to 16, providing access to potable water to 45 Ogoni communities , a development the Minister explains as part of President Tinubu’s commitment to peace ,environmental justice and socio-economic empowerment in Ogoniland, a beacon of hope for communities long affected by environmental degradation.

Lawal noted that the latest commissioning is restoring hope and dignity to the communities long deprived of this essential resource .

”The provision of potable water is a critical step towards improving public health, reducing waterborne diseases and enhancing the overall quality of life. It also signifies a renewed commitment to ensuring that the people of Ogoniland reap the full benefits of environmental remediation efforts.We
will continue to ensure that communities in Ogoniland have access to clean, safe and sustainable drinking water. With this initiative, we are not just commissioning infrastructure but restoring hope and dignity to the communities long deprived of this essential resource”, he said.

While commending the Project Coordinator of HYPREP, Prof Nenibarini Zabbey, development partners, stakeholders and traditional rulers, among others for their relentless commitment towards the actualisation of these projects, he urged communities to protect and take ownership of the projects, emphasising that their longevity and effectiveness depend on their collective efforts of maintaining and protecting them for posterity.

In his speech at the event, the Project Coordinator of HYPREP, Prof Nenibarini Zabbey maintained that the Project remains resolute in its resolve to ensure that it completes and delivers all projects initiated within the time frame for the use and benefit of Ogoni people in line with the directives of the Governing Council and under the leadership of the Minister of Environment, Malam Balarabe Abbas Lawal.

To achieve this, Zabbey explained that “We
continue to work closely with community leaders, youth and women, contractors and other stakeholders to ensure solutions are identified and implementation continues smoothly.

”We remain guided by the principle of partnership, dialogue, transparency and accountability, knowing that sustainable progress is best achieved through collaboration and mutual understanding. That is the hallmark of HYPREP,” he said.

He appealed to the people to continue to reinforce peace and understanding, using dialogue as a vital tool for resolving disputes, especially around project sites and within communities, noting that the concurrent implementation of over 100 projects across Ogoniland reflects the seriousness and dedication of HYPREP, a momentum that must be sustained through mutual trust and collaboration.

For the Project Coordinator, the event was an ideal opportunity to provide a project status update to Ogoni people, as he excitedly announced the milestone achievements recorded so far to include environmental remediation-94 percent completion in Phase 1 of mangrove restoration; shoreline at 67.1percent; Phase 2 land remediation at 36.55 percent; potable water-14 completed water facilities inaugurated, supplying potable water to 40 Ogoni communities, while the commissioning of the Bane and Gwara water facilities last Saturday increased the number of communities with access to clean and safe water to 45.

Other milestones are the Centre of Excellence for Environmental Restoration (CEER) at 92 percent complete and the processes of operationalising the Centre has begun with the just concluded colloquium, while the Ogoni Power Project is progressing steadily with wayleave compensation and construction works at Bodo and Wiiyaakara substations ongoing. The Ogoni Specialist Hospital is at 76.8 percent with 98.7 percent achieved in the Buan Cottage Hospital. The Ogoni public study being conducted by the World Health Organisation’s (WHO) International Agency for Research on Cancer (IARC); over 7,000 women and youths have benefited from various employment opportunities, while over 5,000 have been trained in multiple skills and provided start-up skits, among other programmes.

Zabbey further hinted of the commencement of some demand-driven skills areas this quarter, which include cybersecurity, full-stack development, mud logging, software development, GIS and commercial diving.

In their separate goodwill messages, the member representing Khana/Gokana Federal Constituency in the House of Representatives, Rt Hon Dumnamene Deekor; Chairman,Great Green Wall, Senator Magnus Ngei Abe; Chairman, Board of Trustees, Ogoni Trust Fund Incorporated, Hon Emmanuel Deeyah; Permanent Secretary, Rivers State Ministry of Water Resources and Rural Development, Mr Nwizug Gordon; representative of the Managing Director/Chief Executive Officer, Renaissance Africa Energy Company Limited and General Manager, Relations and Sustainable Development, Mr Igo Weli; former Secretary to Rivers State Government, Chief Kenneth Kobani; and former Rivers State Commissioner for Environment, Prof Roseline Konya; all commended the Minister of Environment and HYPREP for their commitment to the Ogoni cleanup programme.

Earlier, the Minister and his entourage had paid a courtesy call on Mene Bua Kenwigbara, King D.Y Barile, at his palace, where the former was conferred a chieftaincy title of Mene Anua Le Maa 1 of Ken-Khana Kingdom; and the Project Coordinator of HYPREP as Mene doo Letam 1 of Ken-Khana Kingdom.

Also decorated were the Chairman of Ogoni Trust Fund Incorporated, Hon Emmanuel Deeyah; and the Permanent Secretary, Federal Ministry of Environment, Mahmud Kambari.

Highpoints of the event were the formal commissioning of the Bane and Gwara water facilities by the Minister and the Managing Director/ Chief Executive Officer, Renaissance Africa Energy Company Limited, Engr Tony Attach,represented by Mr Igo Weli; the symbolic issuance of education support Items;and the visit to the Ken Saro-Wiwa Memorial Park for symbolic tree planting by the Minister; the Project Coordinator; BoT Chairman; Senator Abe; Igo Weli; Director General, NEASRA, Prof Innocent Barikor; and Zina Wiwa, the daughter of the legendary environmentalist; and the visit to the CEER.

In two years, the Minister of Environment, has visited Ogoniland five times to commission 16 water stations, supplying potable water to 45 Ogoni communities and ensuring that other projects get equal attention, a clear demonstration of his unflinching commitment to the accelerated implementation of the Ogoni cleanup programme in line with Priority 3, Deliverable 3 of President Bola Ahmed Tinubu’s Renewed Hope Agenda and driven under the visionary and passionate leadership of Prof Nenibarini Zabbey as Project Coordinator.

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