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While some believe that oil subsidy is needed to lessen the plight of the poor, others believe it is an open window for corrupt enrichment of a few private and public officials who run the oil business.
Oil refineries have continued to contribute to environmental degradation for close to a decade;
Earlier, Buhari’s administration revealed a ten-year plan to lift 100 million Nigerians from poverty. But NNPC’s transactions with OML 119 revenue may delay this plan by 12 years because of subsidy repayment.
Past is truly prologue as NNPC’s shady dealings 11 years ago raise questions today on the opportunity cost forgone on a $5 billion dividend payment still missing.
There are no sweet memories as the residents of this community, who are majorly from the Ijaw ethnic group, still cannot boast of any development, despite its historical significance in the country.
Nigeria has lost ₦517 billion from the operational inefficiency of Petroleum Product Marketing Company (PPMC), a downstream subsidiary of NNPC.
Nigerian lawmakers kick off work on the new Petroleum Industry Bill (PIB).
With a majority of bank credit going to the oil and gas industry, economic diversification remains an optimistic sentiment. Low credit share to critical economic sectors further challenges the prospect of meaningful growth in Nigeria.
The ensuing dialogue that followed FG’s announcement of oil and gas deregulation has brought with it many revelations. One of which is how this pseudo regulation is void as long as they do not repeal two laws. Israel Aye, Senior Partner- Energy & Commercial Contracts nudged our attention to Sections 6(1) of the Petroleum Act and 4(1) of the Price Control Act.
The price of Premium Motor Spirit has been inconsistent since the start of 2020. To be fair though, it was fairly stable for the first quarter, averaging around ₦145.37 per litre across the country. Reports also show favourable drops in its price along April and June, accounting for ₦130.84 and ₦128.88 per barrel. By July, however, the price had jumped again by over 11 per cent, reporting a national average price of ₦143.63 per barrel.
Parent companies enjoy profits in the form of dividends from their subsidiaries; think of it like royalties or tribute to a Queen. The Nigerian Petroleum Development Company Ltd (NPDC), however, denied her parent company, Nigerian National Petroleum Corporation (NNPC) any such tribute in 2018. NPDC made ₦179 billion profit-after-tax, yet declared no dividends to NNPC.
The money cost lost on Nigeria’s National Petroleum Corporation (NNPC) futile investments is no longer news, but what is perhaps more infuriating is the opportunity cost forgone in a dying economy.
A natural resource management expert has identified mismanagement, benefits maximization among issues affecting the oil and gas sector in Nigeria.
As calls persist for the privatisation of refineries, President Muhammadu Buhari continues to spend public funds to run the loss-making firm.
The Nigeria National Petroleum Corporation (NNPC) recently announced the resumption of 1,000 graduate trainees. While the new hires resumed virtually, this signals increased overheads for the state-owned enterprise. With refineries that have not made profits in the last eight years, it is argued that many NNPC staff are earning salaries without doing anything. By implication, the new hires may end up having little or nothing to do and thus keep up with the existing redundancy at the NNPC.
