Featured
PH Refinery Ends 2020 In Operating Losses Spends N19.215bn Admin Cost, N22.55bn On Salaries, Others
The Port Harcourt Refinery Company (PHRC) has ended the 2020 financial year with huge operating losses while amassing colossal expenses in administrative overheads and salaries and allowances of staff, without generating a dime.
The local refinery, which is managed by Ahmed Dikko, an engineer, reported no income in 2020 but incurred administrative expenses of N19.215billion while spending N22.55billion of payment of salaries, wages and other benefits to unproductive workers.
These revelations were contained in the current Nigerian National Petroleum Corporation (NNPC) Financial Report.
Worse still, the refinery, which is one of the subsidiaries of the Nigerian National Petroleum Corporation (NNPC) managed by Mele Kyari, employed average of 487 new staff members in 2020.
To show the high level of financial recklessness going on at the mismanaged refinery, the 487 new workers are being paid N3.93billion annually, indicating that each of them takes an average of N8.072million annually or N672,713 monthly.
The amount they earn monthly is about the annual salary of a normal Level 8 Federal Government worker.
Between 2019 and 2020, the refinery employed 1,162 new staff, paying N41.163billion in salary and wages, according to experts’ calculations of the company’s wage data on its financial statements.
Out of the 487 staff members employed in 2020, 430 were senior and management staff, amounting to 88.2 per cent, with huge financial implications.
Only 57 were junior staff members.
Also, out of 675 staff engaged by the refinery in 2019, 656 were management and senior staff, representing 97 per cent of the total, with huge financial implications.
“It is looking like jobs for the boys at our dear refineries. And I wonder, most of these guys are earning heavy wages,” US-based Financial Consultant, Ellam Ogochukwu said.
“Whoever is running that enterprise deserves to answer several questions,” she said.
Also, staff pension, gratuity and ‘long service award’ gulped N77.76billion in 2020 as against N63.41billion the previous year.
Surprisingly, under Dikko and Kyari, the PHRC’s unproductive staff were allowed to take car loans, compassionate loans and advances valued at N1.001billion in 2020.
The amount was N597.297million in 2019.
In 2020, this refinery, which made no revenue, incurred a comprehensive loss of N53.179billion.
In the previous year, the company made no revenue but incurred N50.530billion in comprehensive loss.
Between 2017 and 2020, the company comprehensively lost N241.609billion.
Its revenue within this period was merely N6.27billion.
“This refinery did not produce oil. What you have is that some people just iron their clothes, go to work and come back at the end of the day without adding to the productivity of the company,” Oil and Gas Analyst at Lagos-based Chapel Hill Denham, Mustapha Wahab said.
The NNPC Managing Director, Mele Kyari, is the chairman of Port Harcourt Refinery.
He is followed by Ahmed Dikko (MD); Babatunde Sofowora (Executive Director of Services); Reginald Udeh (Executive Director, Finance and Accounts); James Ifeanyichukwu Ajibo (Executive Director, Operations); and Awaisu Muazu (late, served till July, 2020).
These directors took N99.742million as emoluments in 2020, a 67 per cent increase from N59.650million they took in 2019.
In 2019, the Port Harcourt Refinery did not record any revenue.
Yet, it reported N25.19billion in expenses.
Six directors collected N59.65million in fees, meaning that each of them received an average payment of N9.94million a month in 2019.
According to the NNPC, names of the six directors in 2019 were: Group Managing Director of NNPC, Malam Mele Kyari; Managing Director Abba Bukar (who retired in March, 2020); Executive Director of Services, Babatunde S. Sofowore; Executive Director of Operations, Ganiyu Abiodun Owolabi; another Executive Director of Operations, Engr Abel N. Imonighavwe; and Executive Director of Finance and Accounts, Mrs Aramide M. Ekundayo.
Salaries, wages, allowances, redundancy and pension costs gulped N22.195billion.
What that means is that, on the average, each staff member received N32.88million in 2019 from a company that made no revenue.
This amounts, on the average, to N2.74million each month.
Total salaries and pays received by staff of Port Harcourt Refinery between 2017 and 2019 amounted at N80.57billion.
But revenues received by the company within the period were estimated at N6.27billion – implying that the NNPC sought N74.3billion from outside the refinery to pay staff salaries.
Rather than privatise the refinery, the NNPC chose to pump an equivalent of 4.5 per cent of Nigeria’s 2021 budget ($1.5billion) into the refurbishment of a refinery that comprehensively lost N206.069billion between 2017 and 2020.
Wahab said that the investment in the refinery made no sense.
“Dangote Refinery is coming on board and can process about 650,000 barrels per day of crude oil – highest in the world. NNPC has taken 20 per cent stake in Dangote.
“Why then are you resuscitating Port Harcourt Refinery? We have done the analysis at Chapel Hill Denham and found that government should be spending $3billion or more to ensure efficiency of the refinery. So, it does not make investment sense because you are not going to compete with yourself,” he said.
“Two, some countries are exiting low-carbon energy sources and migrating to clean energy. So, after rehabilitating Port Harcourt Refinery, for how long will you enjoy its benefits, given that your market is not just Nigeria but also those countries exiting what you intend to sell to them?”, he asked, urging the Federal Government to concession it for optimal benefits to the Nigerian economy.
Also, Oil and Gas Governance Consultant, Henry Ademola Adigun, said that the refinery was badly managed.
“The point is that the refineries are still badly managed. The faster the corporation becomes a limited liability company, the better,” Adigun said.
“You have a refinery not producing anything and not making revenues but salaries are being paid. How did the NNPC make the profit they said they made when the inefficiencies are there? The profit and loss do not show anything. They simply want to make it attractive to the stockman.”
He said there was no cost-cutting by the NNPC or the refineries, adding that there were also “no innovative efficiency, no restructuring or replanting and no cost-saving on salaries and wages.”
Former President of the Nigerian Society of Petroleum Engineers, Joe Nwakwue, said that the only thing that the corporation could have done was to sell off the refineries.
“If you have a factory and is not producing, you will have to pay the gate man and the even the insurance company.”
The PHRC was commissioned in 1965.
It was made up of two refineries: the old refinery commissioned in 1965 with capacity of 60,000 barrels per stream day (bpsd) and the new refinery commissioned in 1989 with an installed capacity of 150,000bpsd, according to the NNPC.
It has a capacity of 210,000bpsd with five process areas.
In 2000, the then government of Nigeria shut down the refinery for turnaround maintenance.
Other three refineries in the country were also expected to undergo a similar process, Oil & Gas Journal said.
As of that time, $364million had already been spent on endless turnaround maintenance (TAM) services.
About $25billion has been spent on turnaround maintenance in the past 25 years.
The Institute for Global Energy Research, in a 2004 article, said the barrage of corruption, poor management, sabotage and lack of the mandatory turnaround maintenance (TAM) every two years had made all the refineries inefficient, making them operate at about 40 per cent of full capacity.
The NNPC said in April, 2020, that it would hand over the four refineries in the country to a private firm to manage.
“We are going to get an O&M contract; NNPC won’t run it. We are going to get a firm that will guarantee that this plant would run for some time. We want to try a different model of getting this refinery to run. And we are going to apply this process for the running of the other two refineries.”
However, this has not happened.
Rather, the corporation has sought money to rehabilitate the failed refineries.
It has prided itself on cost-cutting efficiency, but its refineries have incurred humongous losses.
Analysts say NNPC has no cause to hold onto the running of the refineries, having shown no capacity to manage it.
Letters
Ban On Christians Fellowship In Universities
If the story making the rounds on two Nigerian universities being sued for allegation of their ban on Christian fellowship in the campus is anything to go by, then Nigeria is in for another trouble.
According to the story, the Christian Association of Nigeria (CAN), Katsina State branch, in conjunction with an American conservative Christian legal advocacy group, Alliance Defending Freedom (ADF International), has instituted an action against two universities in Katsina State for indefinitely banning Christian groups from holding fellowship meetings and worship on campuses.
The suit was said to have been filed against the two universities for violating the right to religious freedom by “indefinitely prohibiting” Christian groups from holding fellowship meetings and worship on campus.
The Christian legal advocacy group further alleged that one of the universities enforced the ban by locking all worship and fellowship centre on university grounds, preventing Christian students and groups from accessing the facilities and banning them from meeting for worship and fellowship elsewhere on campus while their Muslim counterparts at both universities have been permitted to hold worship and fellowship meetings in university-constructed worship and meeting spaces.
Recall that in 2017, there was a news report on the outlaw of any other religious or tribal association on campus besides the Muslim Students Society of Nigeria by the authorities of the Umar Musa Yar’Adua University, Katsina, Katsina State. A circular credited to the institution’s acting Dean of Student Affairs, Dr. Sulaiman Kankara, which was later disowned by the university, contained the directive.
The last time I checked, Nigeria is a democratic, circular state where every individual is free to practise any religion of her choice. Section 38 of the Nigerian constitution provides: “Every person shall be entitled to freedom of thought, conscience and religion, including freedom to change his religion or belief, and freedom (either alone or in community with others, and in public or in private) to manifest and propagate his religion or belief in worship, teaching, practice and observance.”
It is therefore wrong for a public university to indulge in this discriminatory act. A university is supposed to be an intellectual environment where people should be allowed some level of freedom. There must be robust fellowship and inter-faith relationship. People must be able to relate with each other without any discrimination or stigmatisation.
Knowing how delicate issues on religion are in Nigeria, one hopes that the authorities of the institutions concerned should swiftly look into the report and retrace their steps. The court should be objective in deciding the case and give students of other religions some leverage of freedom. It must be stated that the judgment on this case should not be delayed to avoid any retaliation in other parts of the country.
We already have a lot of issues to deal with in the country. Adding a religious crisis to it could be disastrous. Any university established and funded by either the federal, state or local government, should have freedom of religion. Let there be no more trouble in the country, please.
Waheed Abiodun,
Victoria Street,
Port Harcourt Township.
The NIMC, NCC Partnership
Reports have it that the National Identity Management Commission (NIMC) and Nigerian Communications Commission (NCC) disclosed that they have partnered to enhance seamless linkage of National Identification Number-SIM across the federation.
Both Commissions said that in recognising the significance of this initiative in enhancing security and improving service delivery, they were committed to improving processes and enhancing efficiency.
This is a welcome development. It has been worrisome why Nigerians should be made to go through the rigorous process of linking their National Identification Number (NIN) with their phone numbers every now and then. Some people who engage in online transactions have recorded some losses over the past few weeks as some internet providers barred their lines due to their inability to successfully do the linkage.
Two weeks ago, I went to a High Court for an official engagement and was shocked to see the number of people seeking to get court affidavits for the linkage of the NIN with the phone numbers so that their line will be unbarred.
It is therefore hoped that the NIMC, NCC partnership will remove all the bottlenecks surrounding the Nin, SIM linkage and make the process very seamless. It is also hoped that this will be the beginning of the process of proper identity management in the country and gradual collapse of all the various forms of identification – Drivers Licence, Voters Card, NIMC card. Bank cards etc into one identity card so that one would not have to be moving around with loads of identity cards.
Ebele Ubani,
Jabi, Abuja.
The Unwanted Strike
Just when the students of Nigeria public universities are rejoicing that there had been a no interruption in the universities’ academic calendar for sometiime, the news about the warning strike by the Non-Academic Staff Union of Educational and Associated Institutions (NASU) and the Senior Staff Association of Nigerian Universities, (SSANU), broke.
The Joint Action Committee of the two organisations had directed members to commence a seven day warning strike last week, following the federal government’s inability to pay their four months’ withheld salary.
I do not even understand why the government should allow labour unions to down tools before acting on their demands. Did President Bola Tinubu not direct that university workers that were on prolonged strike in 2022 and their salaries stopped by the Muhammadu Buhari’s administration after the invocation of “No Work, No Pay” policy, should be paid four months of the withheld salaries?
Have members of the Academic Staff Union of Universities (ASUU) not been paid in line with the president’s directive? Why were SSANU, NASU and unions concerned not paid? These bodies issued an ultimatum to the federal government. Why was there no effort to address their grievances within the window period?
It is said that what is good for the goose is also good for the gander. So, the government, having paid ASUU, should also endeavour to settle SSANU and NASU so that there shall be no interruption in our academic calendar. We did no wrong by choosing public universities. Government, ASUU, SSANU, NASU and what have you should let us learn in peace and graduate at the record time like our colleagues in private universities, please.
IB Michael,
University of Port Harcourt,
Port Harcourt.
Letters
Obi Should Do More, Discordant Tunes On Minimum Wage, Akpabio’s Unguarded Comment
Obi Should Do More
The Presidential Candidate of the Labour Party (LP) in the 2023 election, Mr Peter Obi, has continued to voice out his opinion on the happenings in the country. On the budget padding scandal currently rocking the upper chamber of the National Assembly, he has told the Senate to provide Nigerians with some explanations on the matter.
He said the claims and counter-claims over the alleged N3 Trillion which was alleged by Senator Abdul Ningi to have been padded into the 2024 budget, requires proper explanation as to what Nigerians must need to know regarding management of the nation’s, insisting that the suspension of Senator Ningi for three months does not address the issue.
The Labour party chieftain had also expressed his concern over the hunger in the country a few days ago. He raised the alarm that Nigerians were spending all their money on food.
It is commendable of Obi to have stood with the masses at this critical time in the nation’s history and be critical of negative happenings in the country and bad government policies. However, Obi should do more than just criticising. It is said that “a tree cannot make a forest”. Therefore, Obi should galvanise all the law makers both on the national and state levels to tow the same line with him, which should be seen as the position of the Labour Party.
In 2023, there was a revolution in the country. People of all walks of life, of various religions and tribes trouped out in support of the labour party because they believed in Mr Peter Obi. People saw the Labour Party as a needed alternative to the two most populous political parties, PDP and APC. Based on Obi’s personality and popularity, some people who ordinarily would not have won councillorship positions in their communities were elected into state and national assemblies. Many of them won the elections for free, spending no shi shi.
Painfully, after assuming the exalted positions, many of them, especially those in the national assembly seem to have forgotten the masses. It is now business as usual. Among the seven senators and 36 House of Representative members of the Labour Party in the National Assembly, which one of them has moved a strong motion about the hardship currently being faced by the masses and how to address it? How many of them stood by Senator Ningi on the budget padding revelation? What out the exotic cars distributed to them, how many of them advised that they should go for less expensive cars and the excess money channelled into developmental projects? It has become a case of one not talking while on the dining table, right?
Obi should be able to organise his party to form a formidable opposition and a party that does things differently, a party that stands with the people. If the labour party elected political office holders carry on the way they have done since they came into office, they will keep de-marketing their party, forgetting that 2027 is just around the corner.
Ngozi Omeje,
Umuahia, Abia State.
Discordant Tunes On Minimum Wage
I have followed the discussion on the proposed new minimum wage with keen interest and I just hope the leadership of the organised labour will be firm enough to represent the workers and refuse to fall prey to the ploy to disunite them.
It is disheartening seeing workers come up with different amounts as the proposed minimum wage. While the Nigeria Labour Congress, NLC, demanded that South-West states should pay N794,000 the Trade Union Congress, TUC, asked for N447,000. Similarly, workers in the Federal Capital Territory demanded N709,000, while their counterparts in the North-West clamoured for N485,000.
This idea of singing in discordant tunes is not good for strong unionism. I recall my days as a civil servant in Ibadan, Oyo state. That was during the time of Adams Oshiomhole as the National President of the NLC. The labour union was a force to be reckoned with and whenever the workers barked, the government caught cold. The increase in workers’ wages was fought for as body. There was nothing like federal workers going to the left and the state workers going to the right. Of course then, in 2000, the TUC did not exist as a separate body. The entire workers spoke in unison.
Yes, the states did reserve the right to say whether they can pay the national minimum wage or not but the national body of the NLC was carried along in the negotiation. Please, the NLC and TUC should come together and present a common front in the new minimum wage quest and ensure that workers in the states also get a fair deal. If not, some of the greedy governors will continue to subject the workers to hardship.
Pa Micheal Adeniran,
Rumuogba Housing Estate, Port Harcourt.
Akpabio’s Unguarded Comment
“Today, he’s responding to a remark by the Governor that has nothing to do with him. The opposition is urging the Senate president to be mindful of his utterances. How can he turn the burial of late Access Bank CEO, Herbert Wigwe, wife and first son, such a sad moment, to a political attack?. It’s disappointing. That’s political recklessness taken too far. We, the opposition parties, won’t tolerate such utterances anymore if it continues.”
Above was the response of a member of the House of Representatives and Chairman, House Committee on Petroleum (Downstream), Hon. Ikenga Ugochinyere, to the Senate President, Senator Godswill Akpabio, unguarded remark on Gov. Siminalayi Fubara’s comment during the burial of the late Access Holdings Plc GCEO, Herbert Wigwe, wife and first son last weekend.
It is hoped that Akpabio will heed to the advice and learn how to talk in public. Tracing his character as a public servant and political office holder in various capacities over the years, one would notice that the senate president lacks the act of public speaking and carriage.
Was it not recently that he announced that the clerk of the house had sent money to each of the senators’ personal account for their holiday enjoyment only to be called to other and he changed it to ”In order to allow you to enjoy your holiday, the senate president has sent prayers to your mailboxes to assist you to go on a safe journey and return.” What about the “honourable minister off your mic” shameful display.
Whoever wants to die seeking public/political office should go ahead but leave our dear governor alone.
Loveth Opusunju
Minima, Opobo, Rivers State.
Featured
Fubara Promises Rivers Support For Wigwe Varsity …Cautions Political Class On Power Tussle
Rivers State Governor, Siminalayi Fubara, has promised the state government’s commitment to supporting Wigwe University.
Fubara disclosed this on Saturday after the funeral service of the late Chief Executive Officer of Access Holdings Plc, Herbert Wigwe, in Isiokpo, Ikwerre Local Government Area of Rivers State.
Wigwe, alongside his wife, Doreen, and son, Chizzy, died in a helicopter crash in California near the Nevada border, United States of America.
Also involved in the crash was the Chairman of Nigerian Exchange Group Plc, Abimbola Ogunbanjo.
The governor said, “I want to say our brother has finished his work, though short. We, as a government, will do everything with the Wigwe Foundation to immortalise one thing.
“It is not the bank, the bank might have a new identity, a new boss to run it, other ventures will also have their names; but one thing that has his name is Wigwe University.
“We will do everything within our power to make sure the dream will continue to live just as he has planned it.”
Fubara questioned the mourners as to why they kept chasing worldly desires, stressing the significance of impacting lives rather than struggling for power.
“This one has to do with the political class, what is all these struggle all about? You want to kill, you want to bury, what is it all about?
“This is a man who was not a politician, he made his money through our investments, he had the world in his palm financially, he controlled even the political classes; but today, with all the power financially couldn’t control life. Is it not enough to ask ourselves why are we struggling? Why are we not making an impact on the lives of our people?” he queried.
Dignitaries present at the funeral service include the Senate President, Godswill Akpabio; Chairman, Dangote Group, Alhaji Aliko Dangote; former governor of the Central Bank of Nigeria , Sanusi Lamido; Governors Alex Otti (Abia) Dapo Abiodun (Ogun), and Babajide Sawwo-Olu (Lagos).
Other dignitaries are former governors Kayode Fayemi (Ekiti), Peter Obi (Anambra), Rotimi Amaechi (Rivers), Bukola Saraki (Kwarra), and James Ibori (Delta), among others.
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