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NNPC: Idle staff of moribund refineries, others earned N357 billion a year – Audit report

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The recently released financial statement of the Nigeria National Petroleum Corporation (NNPC) detailing the expenditure status has revealed that a whooping sum of N357.098 billion was expended as staff salaries, wages and other benefits in 2019.

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The statement explained that NNPC’s Emolument in 2019 was an increase of N14.74 billion or an appreciation of 4.3 per cent from N342.36 billion paid to the staff in 2018.

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The N357.098 billion, if divided among the 6,621 staff of the NNPC, translates to an average salary of N53.93 million per employee in 2019.

The NNPC Group had disclosed that its staff strength, as at April 20, 2020, stood at 6,621, both at its headquarters and across all its subsidiaries, division and offices nationwide. The NNPC has 13 divisions and Strategic Business Units, SBU, nationwide.

Though the NNPC recruited 1,050 new employees, February 2020, a number of senior management staff of the NNPC were also disengaged earlier in the year.

In addition, the salary of NNPC’s staff is higher than Delta State’s 2020 budget of N282 billion; Kano, Kaduna, Borno and Sokoto’s budgets of N206.27 billion, N259.25 billion, N108.8 billion and N153 billion respectively; while the 2020 budget of Edo, Rivers and Abia states were N128.8 billion, N300.37 billion and N102.6 billion respectively.

The salary is also higher than the N127.36 billion, N131.74 billion and N152.77 billion earmarked for capital expenditure in the proposed 2021 budget for the Federal Ministry of Education, Federal Ministry of Health and Federal Ministry of Water Resources, respectively.

It is also higher than the N256.89 billion, N198.28 billion, N89.97 billion N64.84 billion and N10.19 billion budgeted for capital expenditure in the proposed 2021 budget for the ministries of Transport, Power, Aviation, Science and Technology, and Mines and Steel Development, respectively.

Furthermore, in the 2019 financials, the NNPC said it paid N91.336 billion to the government as income tax in 2019; and N74.177 billion as interest on loans in the same year.

However, staff of the NNPC alone — not including employees of other subsidiaries — received N103.7 billion as salaries, wages and other benefits in 2019, an increase of 13.26 per cent compared with N91.56 billion recorded in 2018.

The NNPC Group had also stated that 27.2 per cent of its total workforce, comprising 1,801 staff is currently employed in the Corporate Headquarters.

To this end, from the N103.7 billion, an average staff of the NNPC’s corporate headquarters received N57.58 million as salary, wages and other benefits in 2019.

NNPC’s workforce

In addition, the NNPC had stated that 13 per cent of the group’s total workforce were employed in the Nigerian Pipelines and Storage Company (NPSC); while 758 individuals are currently employed in the moribund Kaduna Refining and Petrochemical Company, KRPC, representing 11.4 per cent of the NNPC Group’s total workforce.

The Port Harcourt Refining Company, PHRC, which is currently shut down and awaiting revamp, has 655 staff; Nigerian Petroleum Development Company, NPDC, 550 staff; the moribund Warri Refining and Petrochemical Company, WRPC, has 485 staff; NNPC’s commercial and investment subsidiary, National Petroleum Investment Management Services, NAPIMS, has 426 staff; while the corporation’s downstream subsidiary, the Petroleum Products Marketing Company, PPMC, has 255 staff.

According to Vanguard, the document noted that Nigerian Gas Company, NGC, has 254 staff; Integrated Data Services Limited, 175 staff; Crude Oil Marketing Division of the NNPC and Nigerian Gas Marketing Company, NGMC, 152 staff each; while National Engineering and Technical Company Limited (NETCO) has 64 staff in its employ.

The NNPC had in its report of compliance to the Extractive Industries Transparency Initiative’s (EITI) Open Data requirements, revealed that 81.7 per cent of its workforce, comprising 5,410 individuals, were male, while 1,211 were women, representing 18.3 per cent of its total staff strength.

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Oil and Gas

NIES 2025: NLNG says energy security should be a priority

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The Nigeria Liquefied Gas on Friday called for energy security to be made a national priority through proactive measure in a manner that the infrastructure and critical assets are protected for the sustainable growth of the oil and gas industry.

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Speaking at a panel session titled “Driving Cross-Continental Investments: Scaling Africa’s Energy Frontier” at the 8th Nigeria International Energy Summit (NIES), the Managing Director/Chief Executive Officer of NLNG, Philip Mshelbila stated that there were growing concerns over gas infrastructure security, stressing that while improvements have been recorded in securing oil assets, that gas infrastructure remains vulnerable, and without adequate protection which will lead to underperformance in the industry.

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Mshelbina stated that NLNG was focused on boosting both domestic and regional energy access, adding that the company was making smaller-scale investments to retain more gas for local consumption. He noted that a major step in this direction was NLNG’s decision to domesticate 100% of its Liquefied Petroleum Gas (LPG) supply for the Nigerian market.

Beyond the domestic market, Mshelbila remarked that the Company was also working towards enhancing regional energy security. He revealed that, as part of the Train 7 project, the company was constructing a third jetty to support small-scale vessels in supplying gas across Africa’s coastal markets.

Additionally, he said the company was supporting the Federal Government of Nigeria (FGN) in connecting Bonny Island to the mainland to facilitate LPG trucking, thereby strengthening domestic gas distribution. This initiative is expected to boost West Africa’s energy distribution network, positioning NLNG as a key player in the region’s energy landscape, he noted.

Mshelbila also emphasised the need for clear and consistent regulatory frameworks to attract long-term investments.

Through proactive methane reduction, low-carbon innovations, and impactful social initiatives, Mshelbila remarked that NLNG’s commitment to local content and sustainability aligned with global energy transition priorities, stating that NLNG was building investor confidence and demonstrating long-term value.

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$200 billion required to be injected into development of gas infrastructure – NEITI

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The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, NEITI, Dr. Orji Ogbonnaya Orji has said, the sum of $200 billion is needed to be injected into Nigeria’s gas infrastructure for its development and maximization of the natural resources as the ninth largest gas producer in the world as number one in Africa.

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He pointed this out in the 2021 – 2023 reports on Oil, Gas and Solid Minerals presented to the Public Accounts Committee chaired by Senator Aliyu Wadada Ahmed, saying the required infrastructure for maximization of gas resources in the country are not there.

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He said, there was need for the injection of $20 billion yearly into gas infrastructure for a period of ten years for construction of gas pipelines along and across West African sub-region, and beyond which is a huge expenditure”, he said.

Orji said: “In Nigeria, what we need, is to invest in gas infrastructure to evacuate gas as our study shows that we need an initial investment of $20 billion annually for 10 years to be able to generate the kind of gas infrastructure required to provide gas for the whole of Africa and beyond.

A member of Senate Committee on Public Accounts, Senator Abdul Ningi asked, “what NEITI is doing on alleged $8.5billion unremitted into the consolidated revenue fund by Nigerian National Petroleum Company Limited, Federal Inland Revenue Service and Nigerian Upstream Petroleum Regulatory Commission in 2023”, the NEITI boss said the Economic and Financial Crime Commission, EFCC , is already probing the agencies involved.

Senate panel were further irked by the submission in the NEITI’s report that less than 1% of solid minerals is remitted into Federal Government’s Consolidated Revenue Fund account.

Chairman of Senate Committee on Public Accounts, speaking on remittances of Solid Minerals into the Consolidated Revenue Fund decried the less than 1% contribution of proceeds from the sector on yearly basis.

Other members were unanimous that, NEITI’s report on solid minerals, is not reflective of what is going on in the solid mineral sector.

They wondered why only States like Ogun, Osun, Kogi, Edo, Ebonyi, Rivers, Cross Rivers and FCT, were mentioned in the report excluding Nasarawa , Zamfara , Kebbi , Plateau, Bauchi etc .

Specifically the Chairman of the Committee, Senator Wadada described the less than one 1% contribution of solid minerals to GDP as quite ridiculous and unacceptable.

“This definitely must not continue, there must be complete overhaul of the sector “, he said

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Niger Tanker Explosion: NUPENG urges government to repair roads, senditise citizens on danger of fuel scooping

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The national secretariat of the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has urged the Federal Government to repair roads to avert tanker tragedies across the country.

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NUPENG made the call in reaction to the recent tragic tanker explosion in Suleja, Niger State.

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A statement jointly signed by Williams Akporeha and Olawale Afolabi, respectively, President and General Secretary stated that the union was “deeply saddened by the loss of lives, the destruction of properties, and the injuries sustained by many in this devastating incident.”

The statement, issued to newsmen in Abuja on Sunday, also appealed to the Federal Government to urgently address the poor condition of federal roads.

The statement read in part: “The Union takes this opportunity to urgently appeal to the Federal Government to repair bad roads to prevent such incidents and to intensify efforts in sensitising the public about the dangers of scooping fuel from petroleum truck accidents.

“Our thoughts and prayers are with the victims and their loved ones during this traumatic and challenging time.”

NUPENG further sppealed to the Federal Government to take urgent steps to repair federal roads which it noted were in bad shape.

It also tasked the Federal Government to mandate its relevant agencies to seize the initiative towards sensitising Nigerians on the danger of scooping fuel from scenes of petrol tanker accidents.

The statement further reads in part:”The Union takes this opportunity to urgently appeal to the Federal government to repazir bad roads to prevent such incidents and to intensify efforts in sensitizing the public about the dangers of scooping fuel from accidental situations of petroleum trucks on highways.

“As a responsible organization, NUPENG collaborates annually with relevant agencies, including the Federal Road Safety Corps, the Police, and State Traffic Management agencies, to train our drivers on road safety. The Union is committed to continuously training and retraining our members on best driving and safety practices.

“We stand in solidarity with the affected families and the entire Dikko community in Niger State. We commend the emergency responders who bravely extinguished the fire and rescued many injured victims.

“We urge all relevant authorities to provide the necessary support and medical care to those injured and to take measures to prevent future tragedies.

“May the souls of the departed rest in peace, and may their families find the strength to bear these irreparable losses.”

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