Connect with us

Featured

PH Refinery Ends 2020 In Operating Losses Spends N19.215bn Admin Cost, N22.55bn On Salaries, Others

Published

on

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.

Print Friendly, PDF & Email

Featured

We Need President Who Believes In Unity Of Nigeria -Wike

Published

on

Rivers State Governor and presidential aspirant under the platform of the Peoples Democratic Party (PDP), Chief Nyesom Wike, has urged Nigerians to take the opportunity that the 2023 general election would offer them to elect a Nigerian who believes in the unity of the country and its people.
Speaking to leaders and delegates of Peoples Democratic Party (PDP) in Birnin Kebbi, capital of Kebbi State, yesterday, Wike emphasised that Nigeria was more divided now under the All Progressives Congress (APC)-led Federal Government than ever.
Wike pointed to the need why the country requires a president that would be in charge of things, including issues of security and the economy.
He described as sad that Nigerian farmers cannot go to farm conveniently or go about their trading activities because of insecurity.
“We need a Nigerian who believes in the unity of this country. We have never been divided the way we are divided now. If God gives us (PDP) the opportunity, we will form a government of national unity where everybody will be involved.”
Wike told the delegates that he was the best PDP aspirant that has the capacity to secure electoral victory for the party and implement policies that will truly rescue Nigeria.
According to him, PDP and indeed, Nigerians need somebody who can face the APC squarely in the 2023 general election and give the country a new direction in which safety of life is guaranteed.
“There is a war you go and you know the kind of soldiers you send and the general that will be the commander. In this kind of fight now, it is me that can fight it.
“What PDP is looking for is who can make us win the election. If we don’t win this election, PDP is gone. I’m tired of this opposition. I am the only aspirant who has what it takes to win this election for PDP.
“And when we win the presidential election in February, 2023, we will win Kebbi in March. And I am going to give you all the support that you require.”
The Rivers State governor reminded the delegates that first of all, there has to be a party before anybody can run election, and most of those seeking to fly the party’s presidential flag had in the past abandoned it to die, but people like him stayed back to build the party and make it once again formidable.
“I was one of the people who stood firm, who made sure that this party didn’t die. There are those who fought this party in 2015 to make us lose the election. If we didn’t lose the election, will we not be in opposition now?
“We have worked hard and a labourer deserves his wages as it is in the holy book. I have worked for this party. So, nobody will say that I did not work for this party.”
In his remarks, Kebbi State PDP chieftain and Chairman of Forum of former PDP Ministers, Alhaji Kabiru Tanimu Turaki, SAN, noted the enormous burden of insecurity on Nigeria that requires a courageous leader to handle.
“Today in Nigeria, we have problem of insecurity. We have problem with the economy. We have poverty. We have hunger. We have restlessness. We have joblessness. There is problem of lack of justice. There is a problem of lack of fairness.
“In short, there is leadership failure and so when we talk of 2023, we should be talking of the survival of Nigeria as one united and indissoluble nation.
“We need a leader that has capacity to take very decisive decisions. Wike has that capacity. We need a leader that is capable of building the diverse and strong bridges of friendship across the divide, Wike has that capacity.
“We need a leader that is consummate and cosmopolitan, Wike is the person. We need a leader that is educated. Wike is educated.”

Print Friendly, PDF & Email
Continue Reading

Featured

ASUU Strike: Protests Rock South West, Edo

Published

on

Students of different universities in Ondo State on Monday staged a protest to register their displeasure over the prolonged strike by the Academic Staff Union of Universities (ASUU).
The protesting students blocked the Ilesha-Akure Expressway in Akure, chanting different solidarity songs.
They wielded placards with different inscriptions such as ‘ End ASUU strike,’ ‘Save our future,’ and FG, we’ve had enough,’ among others.
The protesters included students of Adekunle Ajasin University, Akungba Akoko; Olusegun Agagu University of Technology, Okitipupa; and the Federal University of Technology, Akure.
The protest caused traffic gridlock on the highway with many travellers and motorists stranded while some motorists had to take alternative routes to their destinations.
Speaking on the protest, the Vice Chairman, National Association of University Students, Ondo Chapter, Shittu Afolarin, stated that the move became imperative after it was discovered that the Federal Government was not concerned about the plight of students.
Meanwhile, in  Osun State, protest by some students of Obafemi Awolowo University, Ile-Ife, organised by Great Ife Concerned Students in collaboration with Fund Education Coalition against strike, resumed on Monday as the protesters blocked some major roads in the state.
The protesters had initially blocked Ife-Ede Road, and later moved to Ipetumodu and blocked Ife-Ibadan, Ilesa-Akure roads in front of Oduduwa University, thereby preventing vehicular movement.
The leader of the protesters, Omowumi Abraham, popularly known as Ewatee, said a vehicle conveying two soldiers heading towards Gbongan-Ibadan end from Ipetumodu, had forced its way through their barricade.
She said two other vehicles also conveying soldiers heading towards same direction were however prevented from going through and were forced to make a detour.
Students in Ogun State also on Monday blocked the Sagamu-Benin Expressway in protest against the ongoing strike.
The joint protest had in attendance students from OOU, Ago-Iwoye; Tai Solarin University of Education, Science and Technology, Ijagun and Federal University of Agriculture, Abeokuta.
The students reportedly stormed the TASUED axis and blocked the expressway, leaving many motorists stranded and travellers trapped.
Speaking at the protest ground, the Chairman, National Association of Nigerian Students in the state, Damilola Simeon, appealed to the Federal Government to respond urgently to the yearnings of ASUU.
The President, Student Union Government of TASUED, Don Ayomide, also said the protest was necessary to let the Federal Government and ASUU be aware of the plight of Nigerian students.
Reacting to the students’ protest, ASUU Chairman, FUNAAB, , Dr Gbenga Adeleye, told newsmen that the students had a right to quality education, saying that they were not happy with the ongoing strike.

Print Friendly, PDF & Email
Continue Reading

Featured

WASSCE 2022: WAEC Advises Principals, Supervisors To Shun Exam Malpractice

Published

on

The West African Examinations Council (WAEC) have advised principals and supervisors to shun any act capable of undermining the integrity of the ongoing May/June 2022 West African Senior School Certificate Examination (WASSCE).
Specifically, the principals and supervisors, who are in charge of the conduct of WASSCE 2022, were warned to eschew any form of examination malpractice.
The advise was given by the Deputy Registrar/Zonal Coordinator of WAEC, Abuja, Mr. Ambrose Okelezo, during the briefing of principals and supervisors on the conduct of WASSCE for school candidates.
The principals of recognized secondary schools and nominated senior teachers, who would serve as supervisors were briefed in the Federal Capital Territory FCT) in two locations ahead of the school exam at Gwagwalada and Maitama.
Okelezo informed the principals of their expected roles and warned them to eschew any form of examination malpractice.
He also advised them to educate their students on the rules and regulations governing the conduct of the school exam and teachers (invigilators) not to bring in GSM phones into the exam hall and to stay within the rules guiding invigilation of the examination.
Okelezo also pleaded with the principals and supervisors to be always available in their schools and provide sanitisers, nose masks and ensure strict compliance with all COVID- 19 protocols.
The WAEC zonal coordinator urged them to use the CIVAPEMS devices for the capturing of attendance of candidates.
He briefed the supervisors on their roles, which is the conduct of examination on behalf of the council, following certain guidelines as stipulated by WAEC.
The principals and supervisors were trained on the usage of CIVAPEMS, a device used in the verification of candidates Identities, capturing of attendance.
The deputy registrar also advised the supervisors to shun any act capable of undermining the integrity of the examination.
Various speakers at the workshop such the Director, Education Resource Centre (ERC) in the FCT, Hajia Neemart Abdulraham, ANCOPSS Chairman in the FCT, Adam Bello Gupa, thanked WAEC for organising the workshop and they took turns to admonish participants on the need to follow the rules and regulations as rolled out by WAEC and conduct a malpractice-free examination in the FCT.
A total of 777 participants, made up of 377 principals and 407 supervisors participated in the workshop.
The workshop was concluded with the information on some innovations rolled out by the council such WAEC Chatbox, the platform for gaining access to WAEC services online real-time through www.request.waec.org.
WAEC verify- which provides online access to tertiary institutions and other establishments to WAEC database for the verification of prospective students/applicants results.
Others include EDUSTAT- which enables interested stakeholders to access WAEC statistics online, Computer-Based Test Series- which offers a reliable and robust CBT and Aptitude Test Services.
The participants resolved to work together to ensure a successful conduct of the school exam in FCT.

Print Friendly, PDF & Email
Continue Reading

Trending