Oil & Energy
FRC Decries NNPC’s Non-Submission Of Audited Accounts
The Commissioner, Policy and Standard at the Fiscal Responsibility Commission (FRC), Dr Sylvester Mordi has expressed displeasure with the Nigeria National Petroleum Corporation (NNPC) over its non-submission of audited accounts.
Mordi who spoke in an interview said it was unimaginable that the NNPC which operated in a lucrative sector could claims to be making losses and as such was not returning operating surpluses.
According to him, “NNPC is still on the hook with the commission and the National Assembly. You see NNPCc makes losses from year to year, that’s what they claim.
“Oil and gas, they are gold, so why should they be making losses? Sale of oil is a different thing from this concept of operating surplus. NNPC has a budget for paying for its own operation and we are saying that after praying for their operation, they should save money and from that money they should pay 80 per cent as operating surplus. We asked NNPC, give us your audited account, till date we have no sighted one; we say give us your audited account and domestic report”.
He explained that domestic report was a report given by an external auditor telling you to tidy up your house to avoid public show.
Mordi added that the FRC Act, makes it mandatory for all MDAs to pay 80 per cent of their net profit as operating surplus and retain 20 per cent.
“It is not arbitrary, then when you look at them, they say they are not making profit and so on but you look at the accounts, you see over, invoicing, over-pricing.
They can say this year they paid N100 million for newspapers and next year N20 million, the following year will be N30 million but they are reading the same newspaper.
All done to cheat but we say no. Then they resort to all sorts of creative accounting to reduce what should go to government. It is not only NNPC”, Mordi said.
It will be recalled that the Group Managing Director of the NNPC, Mr. Andrew Yakubu recently claimed that operational losses and harsh operating environment hindered the declaration of any surplus over the years.
He said pipeline vandalism, oil theft and the fact that the NNPC bought crude at international rate and sold products at regulated prices were some of the challenges contributing to the operational losses incurred by the corporation.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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