Connect with us
Advertisment

Business

Against Emefiele’s claims, facts reveal NNPC remitted $2.7bn to its CBN accounts in six months

Published

on

CBN

Against Emefiele’s claims, facts reveal NNPC remitted $2.7bn to its CBN accounts in six months

Against Emefiele’s claims, facts reveal NNPC remitted $2.7bn to its CBN accounts in six months

Advertisment

 

 

Advertisment

Despite claims by the Central Bank of Nigeria Governor, Mr Godwin Emefiele, that the crisis being experienced by the Naira was due to non-remittances by the Nigerian National Petroleum Company Ltd, fresh facts revealed that the national oil company actually remitted a whopping sum of $2.7bn into its account with the apex bank during the first six months of this year.

The inflow into the NNPC’s account with the CBN, according to records seen by this website, was made between January and June this year.

 

Advertisement

 

 

 

 

The CBN has in a report titled: “The forex question in Nigeria: Fact sheet”, accused the NNPC Ltd of being behind the Naira crisis in Nigeria.

Specifically, the report stated that “domestically, there has been zero-dollar remittance to the country’s foreign reserve by the NNPC.”

 

 

 

 

 

 

 

 

But investigations by this newspaper showed that out of the $2.7bn remittance into the NNPC account with the CBN, the sum of $645m was for dividend paid by the Nigerian Liquefied Natural Gas Company Ltd, while $1.786bn was remitted from the operational activities of the NNPC Ltd.

Further analysis showed that the sum of $18,770,418.97 was remitted into the NNPC account with CBN in January, while February, and March had inflows of $194, 563, 276. 49 and $373, 232,875.20 respectively.

 

 

 

 

 

 

 

 

 

 

 

Investigations further revealed that in the month of April, the inflow into the NNPC’s account with the apex bank was $247,884,295.52, May $591, 565, 425. 41 and June $880, 906, 761.81

Recall, this newspaper had reported how the Naira had depreciated to its lowest level in history to about N730 a dollar on the parallel market under the leadership of Emefiele as the CBN Governor.

 

 

 

 

 

 

 

 

 

 

 

 

 

The apex bank governor had in recent times put the blame of the declining value of the currency on different stakeholders.

For instance, in 2018, the CBN Governor said that the huge appetite of Nigerians for importation was responsible for the declining value of the Naira. He thereafter placed a ban on Forex accessibility for importation of 41 items.

 

 

 

 

 

 

 

 

 

 

 

In July 2021, Emefiele also hit at Bureau De Change (BDC) operators accusing them that their illegal forex trading was having a negative impact on the Naira.

In September 2021, Emefiele blamed Aboki FX for the naira depreciation the country had suffered then and threatened to arrest the brain behind the forex intelligence firm.

 

 

 

 

 

 

 

 

 

 

 

Early this year, the CBN governor again blamed the Naira depreciation on activities of those involved in money laundering, financing of terrorism as well as politicians.

This week, he has shifted the blame to the Nigerian National Petroluem Company Ltd.

 

 

 

 

 

 

 

 

 

 

The National Youth Council of Nigeria (NYCN) had while reacting to the latest onslaught of the CBN Governor claimed that he has been working with opposition political parties and other groups to sabotage the Nigerian economy under President Muhammadu Buhari.

The Group made the accusation in a statement issued on Sunday and signed by its President, Solomon Adodo.

 

 

 

 

 

 

 

 

In the statement which was made available to THE WHISTLER, the NYCN claimed that the poor economic management policies of the apex bank under the leadership of Emefiele was responsible for the recent free-fall of the naira.

The NYCN said in the statement that the inability of CBN to promptly release Joint Venture (JV) cash-call funding from the Treasury Single Account (TSA) even when the NNPC had adequate cash cover, had led to loss of JV Partners’ confidence to restore production and reap the benefits of today’s improved oil prices.

 

 

 

 

 

 

 

 

 

 

Adodo said in the statement that as of date, over three months dollar-denominated cash call payment amounting to over $400m properly processed are yet to be paid by CBN.

The group flayed Emefiele for completely failing to concentrate on his core mandate of price stability as a CBN Governor, pointing out that with inflation hitting about 19 per cent and the exchange rate at close to N750 to a dollar, the CBN governor has pushed more Nigerians into poverty.

 

 

 

 

 

 

 

 

 

 

 

 

The action of the CBN governor, the statement said, negates President Muhammadu Buhari’s objective to take 100 million people out of poverty.

He said, “The combined impact of CBN’s inability to promptly release JV cash-call to restore production, the increasing losses due to crude oil theft and production deferments has culminated to significant crude oil output losses of over 600, 000 barrels per day.

 

 

 

 

 

 

 

 

 

 

 

 

 

“At the current year-to-date average crude oil price of $107 per barrel, Nigeria is counting opportunity loses translating to over $64m per day, and a monumental impact of about $2bn per month.

“To its credit, NNPC has recorded significant gains on production ramp up including attaining ‘first oil’ production from the Anyala – Madu Fields and most recently Ikike fields which cumulatively boost national oil production by almost 80, 000 barrels per day.

 

 

 

 

 

 

 

 

 

 

 

 

 

“Furthermore, NNPC’s efforts towards attaining additional combined production of over 100, 000 barrels from fields like Obodo , Utapate etc has never abated despite the global setback recorded as a result of the effects of COVID-19 pandemic.”

He added, “In 2021, Emefiele blamed Aboki FX for the naira depreciation the country suffered then, it thereafter blamed members of the Association Bureau De Change, which led to the stoppage of dollar sales to the group, at another time, Emefiele blamed the naira depreciation on activities of money laundering, financing of terrorism as well as politicians.

 

 

 

 

 

 

 

 

 

 

 

 

“Today, he has shifted the blame to the NNPC. This is clearly a case of a bad workman who blames every other person for his inability to deliver.”

The Group alleged that since his failed presidential bid, Emefiele has been working with various groups in the opposition to sabotage the government .

 

 

 

 

 

 

 

 

 

 

 

The statement added, “To us at the NYCN, Emefiele is tired and should be relieved of his appointment.

“From all indications since his failed presidential bid as well as his rejection by the All Progressives Congress, a partisan Emefiele has been doing all to rubbish the achievements of President Muhammadu Buhari.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“There are also allegations that Emefiele has been hobnobbing with the opposition Peoples Democratic Party since his failed presidential bid.

“We are all witness to the fact that from August 2020 to July 2022, official exchange rate has moved from N381 to N415/$, representing only nine per cent increase.

 

 

 

 

 

 

 

 

 

 

 

“However, the parallel market has moved from N470 to N710 within the same period representing 51 per cent increase and a record 71 per cent arbitrage with the official exchange rate creating a huge incentive for round tripping, price gouging, sharp market practices and inflation.

“The NYCN is therefore shocked by the comment of the Governor associating the free-fall of the parallel market rates to NNPC, even though it is purely a monetary policy issue and outside the purview of the NNPC.

 

 

 

 

 

 

 

 

 

 

 

“We advise that the CBN considers among other options, the World Bank’s recommendation of adopting a single market-responsive sustainable exchange rate, improving access to forex through well-defined periodic forex auctions and signaling a renewed commitment to price stability as a primary goal of the apex bank.”

According to Adodo, Emefiele and the CBN were aware of OPEC’s reduction of Nigeria’s oil production quota which led to reduction of the country’s production level from 2.1 million barrels per day to 1.4 million in May 2020.

 

 

 

 

 

 

 

 

 

 

 

Furthermore, Adodo pointed out that insecurity and huge oil theft in the Niger Delta have continued to challenge the oil industry, causing massive losses and declaration of force majeure across the country’s major onshore production export facilities of Bonny, Brass and Forcados.

The NYCN president also stated that Nigeria’s rising petrol subsidy cost as well as rising cost of external debt servicing are all obligations affecting the economy.

 

 

 

 

 

 

 

 

 

 

 

 

These, it added, affected the NNPC’s remittances to the Federation Account. From January to June 2022, the cost of Premium Motor Spirit subsidy rose to N2.2trn.

Subsidy is being estimated to hit N5trn and N6trn in 2023.

 

 

 

 

 

 

 

 

 

 

 

 

“Apart from government decision to defer the implementation of PMS deregulation, the subsidy profile is significantly influenced by CBN foreign exchange management,” he added.

The NYCN president also drew the attention of Nigerians to the decision by Emirates Airlines, flag carrier of the United Arab Emirates (UAE), to reduce its flight operations to Nigeria over the inability of the CBN to repatriate about $85m in revenue.

 

 

 

 

 

 

 

 

 

 

 

“Was the failure to repatriate Emirates funds also caused by the NNPC,” Adodo queried.

The International Air Transport Association (IATA) had said Nigeria was withholding revenue worth about $450m earned by foreign airlines operating in the country.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emirates said the planned reductions in its operations in Nigeria would take effect from August 15, 2022.

Adodo added, “Emirates clearly stated in that its letter to the Minister of Aviation that it made every effort to work with the CBN to find a solution to this issue and its Senior Vice-President met with the Deputy Governor of the CBN in May and followed up on the meeting by letter to the Governor himself the following month, however no positive response was received.

 

 

 

 

 

 

 

 

 

“The NYCN views this development as embarrassing to the federal government.”

However, the NYCN leader expressed optimism that the NNPC’s transitioning into a limited liability entity in line with the provisions of the Petroleum Industry Act (PIA) and its regulation now in line with the provisions of the Companies and Allied Matters Act (CAMA) would help resolve cash call payments delays as the company is now exempted from TSA, among others.

 

 

 

 

 

 

 

 

 

 

 

 

Also, the company would be able to compete favourably with its peers globally. This, it added, would translate to more foreign exchange to the country as well as improved national energy security.

Advertisment

Business

Fidelity Bank Commends Air Peace’s Performance

Published

on

Fidelity Bank Commends Air Peace’s Performance

 

Advertisment

Fidelity Bank Commends Air Peace’s Performance

. Celebrates Airline For The Commencement of the Lagos-London Route

LAGOS – Fidelity Bank Plc has commended Air Peace’s performance since it commenced flight operations about 10 years ago.

 

Advertisment

Fidelity Bank Commends Air Peace’s Performance

Dr. Nneka Onyeali-Ikpe, the Managing Director, Fidelity Bank Plc gave the commendation over the weekend in Lagos during a special event organised for the airline by the bank to celebrate Air Peace for the milestone of commencement of direct flights from Lagos to London.

According to Nneka Onyeali-Ikpe, who doubled as the host at the event, the airline has upheld the principles of financial discipline and good corporate governance since inception, while it has also been very loyal to the bank.

Advertisement

She expressed delight that the bank had the airline as one of its major clients since inception, stressing that the Bank was celebrating the airline’s milestone of launching direct flight service to London and other developments it would attain in the future.

The event, which held at the Civic Center, Victoria Island, Lagos, had in attendance several bank Managing Directors, stakeholders in the aviation sector, media personalities and well-wishers of both brands.

Speaking at the event, an elated Dr. Allen Onyema, the Chairman, Air Peace, observed that it was not rosy for the airline to attain its status and expressed gratitude to the flying public, the various aviation stakeholders, the media and the government for the continued support since it launched in 2014.

He specifically acknowledged the pivotal role played by Engr. Ben Adeyileka, the former Acting Director-General, Nigeria Civil Aviation Authority (NCAA), in helping the airline secure its Airline Operator Certificate (AOC).

He further commended Fidelity Bank for the consistent support and stressed that the bank had contributed to the success story of the airline.

“I call it our journey with Fidelity Bank. I did not envisage this day would come when an indigenous institution would be celebrating another indigenous institution. Fidelity supports real business. They keep removing people from the streets of poverty. Let other banks emulate Fidelity,” he said.

He reiterated that Air Peace was set up primarily to create employment, not for profitmaking, stressing that the motivation behind the business was to empower Nigerians economically.

“Air Peace was not borne out of the intent to profiteer, but to create jobs. Air Peace was not established because I wanted more money but because of the conviction that running an airline would create massive job opportunities. That was why we went into aviation”, he remarked.

He restated the airline’s belief in the Nigerian project, maintaining that supporting the airline meant supporting the growth of the Nigerian economy.

Onyema further craved for the support of all Nigerians on the Lagos-London route, which it opened on March 30, 2024.

He explained that the airline needed to sustain the route, stressing that this could only be done through support from Nigerians.

He said: “For every penny you pay to Air Peace, you pay to sustain the jobs of thousands of Nigerians and support economic growth.

“Air Peace flies you from any of our domestic routes to London. So, you can fly from Yola to London via Lagos. From the local airport, you are taken to the international airport free of charge with a seamless luggage transfer.”

He pledged that the airline would continue to fully adhere to the standard of safety and lauded the management and staff of Air Peace for their efforts in realising the London dream.

 

 

 

 

 

 

 

 

 

Advertisment
Continue Reading

Business

Dangote Group is the elixir of Gateway int’l Trade Fair – OGUNCCIMA

Published

on

Dangote: NANS Write President Tinubu Over mismanagement Of CTIN Funds (Video)

Dangote Group is the elixir of Gateway int’l Trade Fair – OGUNCCIMA

…Subsidiaries hit Ogun trade fair

 

Advertisment

 

Ogun State Chambers of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) has described the Dangote Group as the driving force of the Gateway International Trade Fair.

Advertisment

This is just as companies under the leading African Indigenous Conglomerate, Dangote Industries Limited, hit the trade fair with their various products as part of strategies to increase market share and deepen customers’ affection.

 

 

Advertisement

The President of the chamber, Engr. Mike Akingbade, stated this when Ogun state governor, Dapo Abiodun officially opened the 13th edition of the Trade Fair at the M.K.O Abiola Trade Fair Complex, Oke Mosan, Abeokuta

Akingbade lauded the support of Dangote Group in sustaining the Trade Fair, which he noted has led to the prosperity of the state and economic freedom for the people.

“A special commendation must be given to Dangote Industries Limited which has remained the major sponsor of the Gateway International Trade Fair for many years. The committed support of the Dangote Group is the elixir with which the trade fair is activated and OGUNCCINA is eternally grateful for the wonderful gesture of the company,” he said.

He said the 13th Gateway International Trade Fair with the theme: “Achieving Economic Prosperity through Business Connection, Trade and Investment, “is aimed among others, to allow businesses to expand their reach, access new markets, and diversify their customer base. He emphasized that forging robust business connections, participating in trade activities, and making strategic investments will unlock new markets, stimulate economic growth, and enhance overall prosperity.

The Regional Sales Director, Dangote Cement PLC, Lagos/Ogun, Mr Tunde Mabogunje in his goodwill address, assured Ogun state government and OGUNCIMMA of the continuous support of the company, noting that the Group is dedicated to enhancing the prosperity of Nigeria by creating opportunities for Nigerians and businesses in the country.

Mabogunje said visitors to the Dangote Group’s pavilion at the fair will have the opportunity of buying products of these companies at reasonably reduced prices as the Dangote businesses will be selling at discounted prices.

He also hinted that the Dangote Refinery will be part of the next edition of the Trade Fair.

“We want to appreciate Ogun state for bringing us as a partner. We want to assure you that we will be here next year bigger. By next year, our refinery will be part of the Trade Fair,” he said.

Governor Dapo Abiodun who visited the Dangote pavilion immediately after performing the ribbon-cutting ceremony, commended the company and others for supporting the Trade Fair which he noted is aimed at stimulating economic growth.

Advertisment
Continue Reading

Business

Nigeria Launches New Fiscal Incentives to Revitalise Oil & Gas Sector, Aiming to Attract $10 Billion Investment

Published

on

Nigeria Launches New Fiscal Incentives to Revitalise Oil & Gas Sector, Aiming to Attract $10 Billion Investment

Nigeria Launches New Fiscal Incentives to Revitalise Oil & Gas Sector, Aiming to Attract $10 Billion Investment

 

Advertisment

 

 

Advertisment

 

 

 

Advertisement

 

 

… as FG endorses consolidated guidelines

 

 

 

 

 

 

 

 

 

Sahara Weekly Reports That Today, in a move to further revitalise the oil and gas industry’s contribution to the Nigerian Economy, Wale Edun, OFR, Minister of Finance and Coordinating Minister of the Economy, presided over a signing ceremony at the Federal Ministry of Finance headquarters in Abuja endorsing the Consolidated Guidelines for the implementation of Fiscal Incentives for the Oil & Gas Sector – a cornerstone of the Presidential Directive aimed at enhancing the Nigerian oil & gas sector’s global competitiveness whilst stimulating economic growth.

 

 

 

 

Nigeria Launches New Fiscal Incentives to Revitalise Oil & Gas Sector, Aiming to Attract $10 Billion Investment

 

 

 

 

 

As disclosed during the signing, the Presidential Directives were developed and coordinated by the Special Adviser to the President on Energy, Mrs. Olu Verheijen to ensure a competitive framework for the Nigerian oil & gas industry. These Consolidated guidelines for the fiscal incentives are based on extensive collaboration across Finance and Petroleum Ministries and involved several key regulatory bodies including the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

 

According to Mrs. Verheijen, these new measures have been designed to deliver a competitive Internal Rate of Return (IRR) for Oil & Gas Projects and attract over $10 billion in new investments within the next 12-18 months. They also underscore Nigeria’s commitment to reaching its long term oil production target of 4 million barrels per day whilst enhancing the reliability of gas supply for to boost export earnings and fuel Nigeria’s industrialization.

 

Mrs. Verheijen disclosed that among the guidelines signed were the NUPRC Guideline on Hydrocarbon Liquids Content in a Non-Associated Gas (NAG) Field, essential for accurately categorising and quantifying the hydrocarbon liquid content in these fields. Additional guidelines focused on the applicability of tax credits and allowances for Non-Associated Gas Greenfield Development and the Midstream Capital and Gas Utilization Allowance, providing taxpayers with clarity on the computation of these benefits.

 

HM Edun, in his remarks, thanked President Bola Ahmed Tinubu for signing the directive in February 2024 to engender growth in the Nigerian oil and gas sector, which had stagnated for over the last decade. He also emphasised the potential of the guidelines, saying, “The idea is to create an atmosphere conducive to international competitiveness such that investment comes in. And in this case, we know it’s foreign direct investment”.

 

The signing ceremony was attended by various stakeholders, including NNPC Limited, Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG), further highlighting Nigeria’s unified approach toward reinvigorating its oil and gas sector.

Advertisment
Continue Reading

Cover Of The Week

Trending