Oil & Energy

PPMC Expands Business Portfolio With N12bn Profit

Published

4 years ago

June 6, 2022

The weekly activities of the Nigerian National Petroleum Company Limited (NNPC Ltd.) started with one of its subsidiary, the Petroleum Products Marketing Company (PPMC), brandishing an impressive financial record of N12.95 billion profit.
The profit was for the year ended Dec. 31, 2021 representing a 260 per cent increase over its net profit of N3.59 billion in 2020.
Mr Umar Ajiya, the Alternate Chairman of PPMC Board of Directors and Chief Financial Officer (CFO) of NNPC Ltd., disclosed this during the company’s 32nd Annual General Meeting (AGM) which held in Abuja.
Ajiya said that the leap in profit was due to the adoption of a commercial mindset in the company’s operation, a quality he said was required for survival in today’s business environment.
He disclosed that the company also achieved 85 per cent reduction in demurrage cost from 64.9 million dollars in 2020 to 9.46 million dollars in 2021 due to effective vessels/cargo programming and increased PMS demand.
He noted that the figure surpassed the target of 50 per cent demurrage cost reduction that had been set for the year.
Ajiya listed some of the company’s achievements for the 2021 financial year to include sustenance of products supply sufficiency, zero fuel queues throughout the year with peaceful industrial harmony, and automation of business processes.
On the outlook for the future, the CFO informed that PPMC was looking at expanding its products portfolio.
Also in the week the NNPC Ltd. got the green-light to sign an agreement with the Economic Community of West African States (ECOWAS) for the construction of the Nigeria-Morocco Gas Pipeline.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, who disclosed this said the Federal Executive Council (FEC) gave the approval at its weekly meeting presided over by Vice-President Yemi Osinbajo in Abuja.
Speaking at a press briefing after the meeting, Sylva explained that the cost of the Nigeria-Morocco Gas Pipeline was yet to be determined as it was still at the Front End Engineering Design (FEED) stage which normally precedes cost evaluation.
“The ministry of petroleum resources presented three memos to the council.
“In the first memo, the council approved for the NNPC Ltd. to execute MoU with ECOWAS for the construction of the Nigeria-Morocco gas pipeline.
“This gas pipeline is to take gas to 15 West African countries and Morocco and through Morocco to Spain and Europe.”
According to the Minister, FEC also approved the sum of N3.8 billion for the construction of a switch-gear room and installation of power distribution cables and equipment for the Nigeria Oil and Gas Park in Ogbia, Bayelsa State.
He said the park was designed to support local manufacturing of components for the oil and gas industry.
He said the third memo approved by FEC was for various contracts including the construction of an access road and bridges to the Brass Petroleum Product Terminal (BPPT) in the Niger Delta for N10.5 billion including 7.5 per cent Value Added Tax (VAT).
Still in the week under review, the Federal Government gave the assurance that works on two of the roads funded by the NNPC Ltd. under Tax Credit Scheme would be completed between January and May 2023.
The projects are Section II of the Suleja – Minna Road and the Agaei – Baro Road which are for dualisation and construction respectively.
Director Highways Construction and Rehabilitation, Federal Ministry of Works and Housing, Mr Folorunsho Esan, gave the assurance during an inspection tour of the roads.
A statement by the Director of Press and Public Relations, Ministry of Works and Housing, Blessing Lere-Adams, disclosed that the Ministry was satisfied with the pace and quality of work on the roads.
On the Suleja – Minna Road, Esan was quoted as saying: “My impression is that the contractor is on the site making progress and we can see the various aspects of work, the earthwork, the pavement work and even the asphalt laying is going on smoothly.
“The only challenge is that of security but it is being taking care of with the presence of security agents”.
Speaking on the 52-kilometre Agaei – Baro Port Road which connects the Lambata – Bida highway, Esan said: “Work is progressing, 14kilometres have been asphalted, earthwork is up to 32 kilometres and the rest which is about 18 kilometres is still outstanding but we have the assurance that the work will be delivered on target”.
The Director said the road when completed would boost the economy of the North Central region in particular and the nation in general as it led to the Baro Port through which goods and services can be brought into the country and exported to other countries.
The two roads were among the other 21 critical roads selected for funding by the NNPC because of their importance to the economy of the nation, especially in terms of the movement of petroleum products across the country.
The contractors working on both projects also expressed confidence that the projects would be completed and delivered on target as funding was readily available.
The Chief Financial Officer of the NNPC Ltd., Mr Umar Ajiya, said within the week that the NNPC-Gas and Power Investment Company (NGPIC) would leverage on the opportunities provided by the Presidential Power Initiative (PPI) roadmap for the electricity sector to boost company’s cash flow.
This is in line with the current reality of the Petroleum Industry Act (PIA),
Speaking at the 2nd Annual General Meeting (AGM) of the NGPIC, Ajiya, who is also the Chairman of the company’s Board of Directors, said NGPIC was determined to harness the potentials in both brownfield and greenfield portfolios to expedite business growth.
He disclosed that having achieved significant milestones in the Brass Fertilizer and Petrochemical Project, NGPIC would soon sign the Financial Closure agreement to commence the Engineering Procurement and Construction (EPC) of the integrated 10,000 Metric Ton Per Day (MTPD) Methanol Plant.
While commending the management and staff of the company for their commitment to the growth and development of the company, Ajiya urged all stakeholders to put in more effort towards improving on the current profit after tax, which stood at 1.81 billion naira for the year ended Dec. 31 2021.
Ajiya listed some of the achievements of NGPIC to include, completion of its 2nd Audited Financial Statements with improved profitability; completion and successful synchronisation of two Gas Turbines for the 450MW Okpai Phase 2 Independent Power Plant at Kwale, Delta State.
Others were the production of additional 320MW from the Phase 2 of the 450MW IPP ready to be wheeled into the national grid; and the take-over of management of Okpai and Afam VI JV IPPs for business profitability, among others.
Speaking on the contributions of the company to the overall objective of the NNPC, the Managing Director of NDPIC, Dr Jamari said efforts were on to position the business entity towards becoming strategic revenue stream, emphasising that NGPIC had enough potentials to increase the bottom line of the nation’s oil company.
“One thing I will assure the public is that by the time we conclude our activities in terms of acquiring some additional power plants and building some others, this and company will be the strongest company in future in the portfolio of subsidiaries of the NNPC Ltd”.
NNPC Gas Power Investment Company Ltd. (NGPIC) is a subsidiary of the NNPC Ltd.
It was incorporated on July 21, 2016 and commenced business in 2020 with main focus on power generation and other gas and power investment services.
In the meantime, CEO/GMD NNPC Ltd, Malam Mele Kyari, reiterated his commitment to sustain the strategic energy partnership between Nigeria and Spain.
Kyari disclosed this while addressing Nigerian and Spanish business leaders on investment opportunities in the Nigerian Oil and Gas Industry, in Madrid, Spain, on the sidelines of President Muhammadu Buhari’s state visit to Spain, Wednesday.
Buhari had earlier met with the Spanish President, Pedro Sanchez, King of Spain, His Majesty, King Filipe VI, and gave a speech at the headquarters of the World Tourism Organisation (WTO), in Madrid.
During the visit, Buhari said Nigeria looked forward to increasing bilateral relations with Spain, even as he signed bilateral agreements and Memorandum of Understanding (MoUs) with the Spanish leader, covering areas of prisoner transfer, sports and culture and the economy.
Describing the partnership between Nigeria and Spain as an important one for the NNPC, GMD/CEO said “26 per cent of all LNG produced in Nigeria end up in Spain, while 14 per cent of all Crude Oil produced in Nigeria end up in this country; clearly for us as a business, it is an important market for my company.”
Kyari explained that the world would need energy for today and for the future, in industries such as power, IT and automobile.
“We know that energy transition is real. We know that net-zero by 2050-2060 is real.
“But it doesn’t mean zero hydrocarbons in 2050-2060; it means that you are going to have a cleaner use of hydrocarbons,” Kyari added.
He said investors must see where their money can come out from and when they invest, they must see that they can recover their cost and make some margin from it.
While noting that in line with global acceptance of gas as a transition fuel, Nigeria had since declared 2021-2030 as the decade of gas.
“In our country today, we have a legislation that has clearly created a commercial National Oil Company which will be unveiled by our President in the coming days.
“Together with the Spanish business community, I am confident we can build this industry,” Kyari said.
Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) raised Nigeria’s oil production quota from the 1.772 million barrels per day (mbpd) target approved in June to a new target of 1.799mbpd for July.
A statement issued by OPEC said the decision was taken at its 29th OPEC and non-OPEC Ministerial Meeting.
The new target is 27,000bpd higher than the approved quota for June.
According to the statement, OPEC+ also adjusted upward the monthly overall production by 648,000bpd for the month of July with a target production of 43.206mbpd.
The statement said: “The 29th OPEC and non-OPEC Ministerial Meeting was held via videoconference on June 2.
“The meeting noted the most recent reopening from lockdowns in major global economic centres. It further noted that global refinery intake is expected to increase after seasonal maintenance.
“The meeting highlighted the importance of stable and balanced markets for both crude oil and refined products”.
It said the meeting extended the compensation period until the end of December as requested by some underperforming countries, and requested that underperforming countries submit their plans by June 17.
The statement added that the meeting directed that compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
The figure is 70,000bpd higher than the average crude oil production in April, which stood at 1.35mbpd.

Oil & Energy

Civil Society Demands Accountability over N60Billion AKS Oil Producing Communities

Published

1 week ago

August 10, 2026

The Tide

A civil society organisation, the Centre for Human Rights and Accountability Network, (CHRAN) has demanded full disclosure of how over ?60bn allocated to oil-producing communities in Akwa Ibom State has been managed since the inauguration of the Host Community Development Trust in 2024.

The group also threatened to deploy legal measures against trustees who fail to account for projects and other interventions funded from the oil host community development allocations.

In a Statement signed by the Group State Director, Otuekong Franklin Isong, and Secretary, Research and Documentation, Comrade Etimbuk Ekpenyong, the organisation’s demand was prompted by complaints from residents who questioned the level of development in their communities despite the substantial funds accruing to the trust.

According to the statement, Its demand also followed a verification exercise conducted by it’s investigation Team into the activities of the EMOIMEE Host Community Development Trust, which covers seven oil and gas-producing local government areas in the state.

The affected councils in the statement are Eket, Mbo, Onna, Ikot Abasi, Mkpat Enin, Esit Eket and Eastern Obolo.

The statement said, during the CHRAN verification exercise, only the Eastern Obolo Board of Trustees had so far provided satisfactory responses to its requests for information made under the Freedom of Information Act.

The organisation said the failure of other trustees to disclose information had heightened concerns over the transparency and accountability in the management of funds intended for communities affected by oil exploration and production.

The group said it formally wrote to trustees representing Eastern Obolo, Esit Eket, Ikot Abasi, Onna and Mbo on May 25, 2026, requesting details of projects executed, locations, contractors, scholarships and beneficiaries, as well as other interventions financed by the trust.

According to CHRAN, the Eastern Obolo trustees, Rt. Hon. Uduyork J. Aboh and Mrs Lily Evans John, responded with documents detailing 29 projects executed in the local government area and scholarships awarded to 2,000 beneficiaries.

The organisation said it independently fact-checked the information supplied by the Eastern Obolo trustees and found it accurate.

CHRAN commended the trustees for responding to its request, describing the disclosure as an example of the transparency expected from institutions managing public-interest funds.

The organisation, however, said four other trustees had yet to respond to its requests.

Those named were Hon. E. Justus Ntuk of Ikot Abasi, Hon. Bassey Dan-Abia Jnr of Esit Eket, Engr. Clinton Akpan of Onna and Dr Asuquo Edet Inuikim of Mbo.

CHRAN urged the trustees to immediately disclose details of how the funds allocated to their respective host communities had been utilised.

It said failure to provide the requested information would leave it with no option but to pursue available legal avenues to compel disclosure.

On Legal battle over Eket fund, the Human Right Group said its accountability campaign had already resulted in legal action involving the Eket representative.

According to the group, it was earlier written separately to the trustees representing Mkpat Enin and Eket.

While the Mkpat Enin representative responded, CHRAN said the Eket trustee failed to provide the requested information.

The organisation said this led it to institute Suit No. FHC/CS/10/2026, which is currently pending before the Federal High Court.

The Group stressed that its demand was not aimed at witch-hunting the trustees but at ensuring that communities receive the benefits intended under the Petroleum Industry Act.

The group said the EMOIMEE trust was established in pursuant to the Petroleum Industry Act, 2021, with Mobil Producing Nigeria limited as the settler and the Nigerian Upstream Regulatory Commission as regulator.

It said the trust was incorporated under the Companies and Allied Matters Act on July 5, 2023, and formally inaugurated on July 18, 2024.

The organisation alleged that the trust had received over ?60bn from the NNPC/MPN Joint Venture since inception, making transparency in the utilisation of the funds particularly important.

CHRAN said the funds were intended to address developmental challenges in communities hosting oil and gas operations and to improve the quality of life of residents.

It therefore urged all trustees to make their records available for public scrutiny.

“Public accountability is not optional for a statutory trust managing funds meant for the collective benefit of host communities; it is a legal and moral obligation,” the organisation said.

The Human Rights Group further warned that it would explore all lawful measures available to compel trustees who refuse to provide the requested information to disclose how the funds had been spent.

The Group called on residents of the affected communities to remain vigilant and demand accountability for projects, scholarships and other interventions funded from the host community development allocations.

The organisation said the response from Eastern Obolo demonstrated that transparency was possible and should become the standard across all the host communities.

Enoch Epelle

Oil & Energy

NCDMB, BOI Unveil $100m Nigerian Content Equity Fund …Set To Invest $5m In Oil Firms

Published

1 week ago

August 10, 2026

The Tide

The Nigerian Content Development and Monitoring Board (NCDMB), and the Bank of Industry (BOI), Friday in Lagos inaugurated the Investment Committee of the Nigerian Content Equity Fund (NCEF).

The NCEF according to the Directorate of Corporate Communications of the Board is a groundbreaking $100 million financing product designed to avail long-term financing to service companies and provide access to funds in exchange for equity rather than the traditional debt instruments.

In his remarks at the inauguration ceremony of the Committee, Executive Secretary of the NCDMB, Engr. Felix Omatsola-Ogbe tasked the investment committee to carry out rigorous due diligence on every company seeking support and ensure that the objectives for which the Fund was established are fully achieved.

He said the Equity Fund must never be mistaken for a grant, stressing that beneficiaries are expected to deploy the capital judiciously and repay in accordance with the terms of the investment.

He urged the committee to ensure that only credible people with viable businesses benefit from the scheme.

“Our top priority should be identifying people who will use the Fund properly and, most importantly, return our funds back to us so that we can continue the programme for other deserving beneficiaries,” he said.

A statement from the Board’s Corporate Communications Division said the NCEF was inaugurated as a new financing solution to the Nigerian oil and gas service sector, and is also expected to accelerate local content growth.

According to the Boards Division of Corporate Communications, the underlying goal of the NCEF is to reduce per-unit cost of oil and gas products and services locally, create an additional source of income for the Board and play a catalytic role in attracting other investors and lenders to financially viable organizations.

“By providing access to equity financing, the NCEF will enable service companies to expand and increase their market share, which will contribute to the growth of the Nigerian oil and gas industry.

“The Fund size is $100million, while the obligor limit is $5million. The Fund is provided by the NCDMB, while the Bank of Industry serves as the Fund Manager.

“The target beneficiaries are oil field service companies, manufacturers connected to the oil and gas sector, fabrication yards, and connected sectors, with the primary goal being to promote economic growth, job creation, and wealth creation in Nigeria”, the NCDMB said.

The Board added that the impact of the Fund on oil and gas projects could potentially create an estimated 12,500 direct jobs and 7,000 indirect jobs, stating that the inauguration of the investment committee marks another milestone in the evolution of the Nicetizn Content Investment (NCI) Fund which is a flagship intervention established under section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to bridge financing gaps confronting indigenous oil industry firms.

A Statement from the NCDMB’S Division of Corporate Communications further said that while the five NCI Fund products managed by the BOI and two products managed by the Nigerian Export-Import Bank (NEXIM) have provided debt financing to qualified service companies over the past decade, with loans lasting five years and interest rates of 8%, the Equity Fund has carved a new niche.

Meanwhile, Managing Director of the Bank of Industry, Dr. Olasupo Olusi has described the inauguration as a major milestone in the consummation of the NCI Equity Fund, noting that the initiative represents the next phase in the long-standing collaboration between BOI and the NCDMB.

According to him, the partnership, which has lasted for nearly a decade, began with the administration of the US$350 million Nigeria Content Intervention Fund, through which hundreds of indigenous oil and gas companies have accessed financing to expand their operations.

He noted that the introduction of an equity financing window addresses an important gap in the industry’s financing architecture.

“The next step, which I am very impressed with and very thankful to the NCDMB for thinking through with BOI, is the need to fill the finance gap with equity,” he said.

According to him, equity financing offers an entirely different class of financial instrument capable of supporting businesses that may not yet qualify for conventional debt facilities, expressing confidence that the initiative would attract additional investment into Nigeria’s oil and gas sector while strengthening indigenous participation.

Giving further insight into the fund, the Group Head, Equity Investments at the Bank of Industry, Mr. Chike Chukwuelu, explained that the Equity Fund addresses what industry experts describe as the “missing middle.”

According to him, many indigenous businesses struggle to secure senior debt because they lack the level of collateral demanded by commercial lenders, despite possessing viable businesses with strong growth prospects.

Chukwuelu said the equity structure would also enable the fund managers to maintain closer oversight of beneficiary companies, helping them strengthen governance, improve operations and evolve into sustainable businesses.

In his remarks, Senior Technical Adviser to the Executive Secretary, Engr. Austin Uzoka, observed that the Equity Fund represents an opportunity to accomplish what previous financing interventions could not fully achieve.

“The striking thing is that the fund is about doing things the other funds have not been able to accomplish.” He said

The Tide gathered that the committee’s responsibilities are to provide strategic oversight for the Equity Fund, ensure prudent investment decisions and build a portfolio of companies capable of growing into major industry players.

Ariwera Ibibo-Howells, Yenagoa

Oil & Energy

Investment ln Young Engineers Key To Ogoni’s Future -President

Published

1 week ago

August 10, 2026

The Tide

President of the Khana, Gokana, Tai and Eleme (KAGOTE) Organisation and Chief Executive Officer of Giolee Global Resources Limited, Chief Lesi Maol, has described investment in the training and development of young engineers as critical to the future and sustainable development of Ogoniland.

Maol said this during the opening of a four-week Wellhead and Christmas Tree Maintenance Training Programme for selected young engineers from Ogoniland at the corporate headquarters of Giolee Global Resources Limited in Port Harcourt, recently.

He said the initiative was conceived as a strategic intervention to bridge the gap between academic knowledge and the practical competencies required in today’s highly competitive oil and gas industry, while equipping participants with internationally recognised technical skills.

According to him, the future of Ogoniland is inseparable from the development of its human capital, stressing that the region’s greatest resource is not the wealth beneath the ground but the talent, resilience and potential of its young people.

Maol explained that the training programme was designed to produce technically competent, safety-conscious and industry-ready professionals capable of competing effectively in Nigeria’s oil and gas sector as well as the global energy market.

He emphasised that the initiative was not merely aimed at awarding certificates but at developing disciplined professionals who would uphold the highest standards of technical excellence, integrity, safety and service in the discharge of their responsibilities.

The KAGOTE President urged the participants to approach the training with dedication, professionalism and a willingness to learn, expressing optimism that the knowledge acquired would contribute to the economic advancement and sustainable development of Ogoniland.

The programme, organised in partnership with Rick International Services Limited and RickWell Tech UK, features classroom instruction, practical demonstrations using oilfield equipment, competency-based assessments, Health, Safety and Environment (HSE) training, leadership development and project management.

In his remarks, Lead Executive Trainer of Rick International Services Limited, Chief Engr. Ramos Ihekona, described the programme as a valuable opportunity for aspiring engineers to acquire practical industry experience from seasoned professionals.

Ihekona encouraged the trainees to participate actively in every aspect of the programme, collaborate with one another and maximise the opportunity to develop competencies that would enhance their confidence and employability in the energy sector.

The organizers said the training was introduced to address the persistent disconnect between theoretical engineering education and the practical skills demanded by employers, adding that the curriculum covers wellhead operations, Christmas tree systems, mechanical maintenance, pressure control, engineering documentation, equipment inspection, field troubleshooting, HSE and project management.

Some of the participants drawn from Khana, Gokana, Tai and Eleme Local Government Areas commended Chief Maol for sponsoring the programme and ensuring a transparent selection process.

He however , likened the initiative to a life-changing opportunity that would prepare them for rewarding careers in the oil and gas industry while contributing to the development of Ogoniland.

King Onunwor