Oil & Energy

NNPC Defaults Again On N450bn Debt Repayment

Published

16 years ago

January 18, 2010

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.

Oil & Energy

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

Published

2 weeks ago

November 10, 2025

The Tide

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.

Oil & Energy

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

Published

2 weeks ago

November 10, 2025

The Tide

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.

Oil & Energy

Senate Seeks Mandate To Track, Trace, Recover Stolen Crude Oil Proceeds

Published

2 weeks ago

November 10, 2025

The Tide

The Senate Ad-hoc Committee on Oil Theft and Sabotage, has sought for an expanded mandate to track, trace, and recover stolen crude oil proceeds both locally and internationally.

Chairman of the committee, Ned Nwoko, made the call while speaking with newsmen, on the progress made so far by the committee, in Abuja, last Thursday.

Nwoko who is also the Senator representing Delta North Senatorial District, said that forensic reviews show over S22b, S81b and S200b remained unaccounted for across different audit periods.

“This is a national call to action. Nigeria cannot afford to continue losing trillions to corruption, inefficiency, and criminal networks.

“I remain committed, alongside my colleagues, to ensuring accountability, recovery, and reform within the oil and gas sector.

Nwoko stated that the Committee had earlier presented its interim report before the senate saying “Our investigation has so far uncovered massive revenue losses amounting to over $300 billion in unaccounted crude oil proceeds over the years.

“This represents one of the most troubling cases of economic sabotage our nation has ever faced.

“We have made far-reaching recommendations to end this long-standing menace.

“There is need for strict enforcement of international crude oil measurement standards at all production and export points.

He urged the federal government to mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deploy modern, tamper-proof measuring technology or return this function to the Department of Weights and Measures under the Ministry of Industry, Trade, and Investment.

The senator called for the deployment of advanced surveillance systems, including drones, to assist security agencies in combating oil theft.

He also called for the creation of a Special Court for Crude Oil Theft to ensure swift prosecution of offenders and their collaborators, saying it would also go a long way in tackling the challenge.

“We must also ensure the full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to empower local communities and reduce sabotage.

“Ceding abandoned oil wells to the NUPRC for allocation to modular refineries to support local production and job creation is also very vital in fighting the menace of oil theft and sabotage,” Nwoko further said.