Nation
Petroleum Imports Gulp N2.2trn In Nine Months, NBS Confirms
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”.
An Information and Communication Technology (ICT) Centre is set to be established in Omoku, Ogba/Egbema /Ndoni Local Government Area of Rivers State.
The initiative is being championed by the Omoku People’s Forum, a global association of Omoku elites, under the leadership of its President-General, Dr. George Ada Ubah.
As part of efforts to ensure the successful execution of the project, a prominent son of Omoku, Chief (Barr.) Dennis Masi, has been appointed by the Forum as the Chairman of the ICT Centre Project Committee, entrusted with the responsibility of coordinating and driving the initiative to fruition. Upon completion, the ICT Centre is expected to serve as a major hub for the training and empowerment of youths in digital and technological skills, equipping them to actively participate in the increasingly technology-driven global environment.
The project is also widely regarded as a significant step towards positioning Omoku as an emerging ICT hub within Rivers State, fostering innovation, digital literacy, and economic development in the region.
Concerned Rivers Chiefs For Peace And Development has said it formation was not politically motivated or has any links to political parties or candidates.
The group which said this at a media briefing at Abuloma in Port Harcourt City Local Government Area said it’s formation has nothing to do with politics.
According to the text for the briefing jointly signed by Chief Boma Kele Oyika it’s chairman and Chief Inemo T Ikama Deputy Secretary General said the organization is expected to focus on conflict Resolution, community engagement, collaboration with government and private sector actors
‘it mandate also includes promoting peace building initiative, supporting local economic empowerment programms and strengthening traditional institutions in our state and beyond as partners in governance ”
It said the body is led by a team of respected traditional leaders serving as trustees
“Their collective leadership reflects a blend of experience cultural authority and grassroots connection
“Key elements considered vital for addressing long standing,socio economic and security challenges in the region”
The release further says ” the formation of this organization comes at a time when communities in Rivers state continue to navigate between issues ranging from youth unemployment, environmental concerns and intermittent conflicts amongst the traditional rulers and beyond
“By bringing together influential traditional figures under a unified platform, the group aims at serving as stabilizing force while advocating for inclusive development policies ” it said
It also described its emergence as a new chapter in grass roots leadership and regional development
Earlier, chairman of the body, Chief Boma Kele Oyika said the organization will work with relevant authorities to promote peaceful coexistence in the state, reduce crime and promote economic development.
He said it is open to all Chiefs from the 23 local government areas.
The Chairman of The Nigeria Delta Chamber of Commerce, Trade, Mines and Agriculture NDCCTMA,Ambassador Idaere Gogo Ogan and the Managing Director of the Niger Delta Development Commission ( NDDC ) Dr Samuel Ogbuku have challenged Niger Delta entrepreneurs to close the gap in Gross Demostic Products (GDP) differences between the region and that of the South Western part of the country by coming home to invest.
The two leaders spoke at a business round table organized by NDDCTMA in Port Harcourt
Chairman of NDDCTMA Ambassador Idaere Gogo Ogan, said to close the gap between the south west region which he said has a GDP seize of about #59 trillion and that of the Niger Delta which is about #34 trillion was to massively invest in the region.
He said no other persons can do this except sons and daughters from the region.
“For me I believe in statistics,I believe in data and everyday I looked at the data concerning development in Nigeria and from the GDP point of view, the South West has #59 trillion, that is the seize of the south west region economy, the second region following them is the Niger Delta region with GDP seize of #34 trillion,so there is a yearning gap of #25 trillion that separates the south west and the Niger Delta region, that is why we are here”
Ogan said the region has the capacity to close the gap and even surpassed it but regretted that indigenes of the region have chosen to ignore it in terms of investment.
“We need to close that gap .If we close that gap and even surpassed it,all the negative problems of militancy and unemployment will automatically erase “he said
Ogan said the event was organized to remind the people that past efforts of militancy and agitations have not led the region to any where
“That is why we are gathered here in this room “he said.
Also speaking Managing Director/Chief Executive officer of the Niger Delta Development Commission( NDDC) Dr Samuel Ogbuku urged indigenes of the region not to use the problem of insecurity as an excuse to continue to deny the region of investment as every part of the country have in one time or the other experienced crisis.
Ogbuku said most indigenes have displayed high level of unpatriotism towards the region by taking investments that would have benefited the people to either Lagos or Abuja.
“With little threat we have left the city,we have gone to Lagos,we have moved our families to Abuja and Lagos
“If you go round GRA all the property, you will see,”to let to let”most of them are now empty “he said.
The NDDC MD said despite the fact that people from the region are doing well in the oil and gas, banking and other sectors, its impact are not being felt at home because they are stationed outside the region.
He said time has come for potential investors from the region to have a change of heart by coming home to invest.
John Bibor