NNPC failures, Has Ibe Kachikwu failed Nigerians?
By Ogbuefi Ndigbo
Dr. Emmanuel Ibe Kachikwu, as the Group Managing Director, Nigerian National Petroleum Corporation, NNPC, on November 3, 2015 intimated journalists with his plans to make the Corporation more profit-oriented.
In view of skepticism over the NNPC’s financial health, many did say those plans may well become the litmus test of whether it is truly commercially viable.
Today the question is, what has become of these plans nearly four years after Kachikwu became the minister of state of state, for petroleum?
According to data provided by BudgIT Nigeria [see fuller details below the image):
- NNPCgroup sold 173.91m barrels of crude oil in Q3 2018
- Only 19.72% of the total sales receipt from $ payment was remitted into FAAC account
- No record of what was remitted to FAAC from ₦ payment.
- None of the refineries was in operation in September. What is going on with the revamping of the refineries?
1. NNPC group sold 173.91m barrels of crude oil in Q3 2018
2. Only 19.72% of the total sales receipt from $ payment was remitted into FAAC acct
3. No record of what was remitted to FAAC from ₦ payment.
4. None of the refineries was in operation in September. What is going on with the revamping of the refineries?
5. NNPC sold 173.91 million barrels of crude oil in Q3 of 2018.
6. A total of $12.88 billion was made from the sale of crude oil in Q3 of 2018.
7. NPDC produced 11 million barrels of crude oil in Q3 of 2018.
8. NNPC lifted an average of 259,191.30 barrels of crude oil for domestic use in Q3 of 2018.
9. 8.98% of the total gas produced in Q3 of 2018 was flared away.
10. “There was a 71.53% decrease in crude oil processed by the refineries in Q3of 2018 in comparison to Q3 of 2017.”
11. The refineries had a combined capacity utilization of 2.61% in Q3 of 2018.
12. The refineries generated combined revenue of N23.89 billion in Q3 of 2018.
13. The refineries contributed only 27.81% of the total volume of kerosene supplied by NNPC in Q3 of 2018.
14. A total of 4.66 billion litres of white products was sold in Q3 of 2018.
15. The total revenue generated by PPMC in Q3 of 2018 amounted to N599.29 billion
16. NNPC Group had a total financial performance of net profit of N10.82 billion in Q3 of 2018.
17. Only 19.72% of the total sales receipt from the dollar payment was remitted into the FAAC account in Q3 of 2018.
18. A total of 415 pipeline breaks were recorded in Q3 of 2018.
19. None of the refineries was in operation in September. What is going on with the revamping of the refineries?
20. There was no record of what was remitted to FAAC from the Naira payment in the September report.
21. There was a 38.31% increase in pipeline breaks in Q3 of 2018 in comparison to Q3 of 2017.
With the above result, questions are being asked: Has Ibe Kachikwu failed Nigerians?
May have argued that Kachikwu’s ability was severely sabotaged with the appointment of Baru as Group Managing Director, Nigerian National Petroleum Corporation, NNPC, and President Muhammadu’s failure to make Kachikwu the substantive minister of petroleum. (Buhari made himself the mister of petroleum, and made Kachikwu a junior minister)
Dr. Maikanti Baru is the current Group Managing Director (GMD). He was appointed Group Managing Director on July 4th, 2016 under the presidency of Muhammadu Buhari; he succeeded Dr. Emmanuel Ibe Kachikwu, the current Nigerian Minister of State, Petroleum.
Above becomes pertinent in view of the controversy stirred by Former Vice President Atiku Abubakar’s pledge to privatize NNPC if he wins tomorrow’s presidential election. Atiku is is the presidential candidate of teh oppositio, Peoples Democratic Party, PDP.
Meanwhile see Below comparison:
GOVERNMENT-VS- PRIVATE RUN ENTERPRISE (NIG)
1) Eleme Petrochemical was an NNPC subsidiary privatized in 2006. D company today; Indorama Eleme Petrochemical has transformed Eleme, not only in terms of being one of the main economic drivers of Eleme town and environs, it provides employment
2) Eleme community is a 7.5% Equity Share Partner in the company. The growth of the Petrochemical Company has been tremendous, employment has quadrupled, multiplied by 10* over the decade, the company is a large source of revenue for the FG, State & LG via taxation
3) LET US LOOK BACK AT ELEME PETROCHEMICAL B4 PRIVATIZATION; the company was not making any money, govt ran it by allocating money for maintenance every year without any productivity; money that should go to schools and social programs.
4) The company under govt control did not pay taxes or levies, there was an employment freeze, same today for many NNPC subsidiaries, no growth, no need for employment. A few low skilled workers from d community were employed by it. There was no equity for the community
5) There were no scholarships awarded, no long-term net economic benefit to the FG, State, LG, Community and the Masses under NNPC control as at 2006 b4 privatization. There was govt expenditure (loss)
6) The advantages stated above, does not mention the massive growth of Indorama Eleme Petrochemicals as a Privately-run company. Refer to website: https://t.co/ekhnMik3rV
7) Let’s Look at Another case:
Nov 2018 NNPC Report Shows that each of the four refineries ran at a deficit for 2018 up to Nov:
Kaduna Refinery: N32billion
Warri Refinery: N38billion
PH Refinery: N44billion
Total = N136b from govt subvention for 2018 as at Nov
8) Zero benefit to the masses, zero jobs created. Multiply these by 12 years, more or less since the privatization of the refineries were rescinded. How many people have been employed in the refineries since 2007?
How does Nigeria benefit from these govt enterprises?