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NNPCL Remitted Zero Allocation To Federation Account In 2022 Due To Subsidy Payment — CFO Umar Ajiya

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The Nigerian National Petroleum Company Limited (NNPCL) remitted literally zero funds to the Federation Account in 2022 due to the payment of subsidy on Premium Motor Spirit, popularly called petrol, the Chief Financial Officer, NNPCL, Umar Ajiya, has said.

NNPCL is a significant source of income for Nigeria. It serves as the national oil corporation, managing the nation’s gas and crude oil reserves and handling various other important duties.

In a 5.24-minute video that the oil major posted on Sunday, Ajiya claimed that the gasoline subsidy prevented the revenue-generating company from filing taxes and royalties to the Federation Account and also prevented it from turning a profit.

Also, NNPCL, in the documentary, said, “The lingering constraint of fuel subsidy payment hampered its (NNPCL) growth potential, until a new administration emerged, bringing an end to the subsidy regime and saving the company from bankruptcy and setting it on a path of financial prosperity.”

It stated that this enabled the oil firm to grow its profit from N674.1bn in 2021 to N2.54tn by the third quarter of 2022.

President Bola Tinubu declared during his inaugural speech on May 29, 2023, that “subsidy is gone!” The declaration by the President was immediately enforced by NNPCL the next day. NNPCL is Nigeria’s sole importer of PMS.

Reacting to this, Ajiya said, “That action of saying subsidy has gone, literally saved this nation N400bn on average every month. And what that meant was that the totality of the entitlements of tax, royalties and profits were all going into subsidy.

“And that was why we reached a position in 2022 where we literally remitted zero to the Federation Account. It was unpalatable, but we can’t give what we don’t have.

“We were taking NNPC’s cash flows from other operations to augment for products and it could not be sustained beyond June 2023.”

Fuel subsidy gulped over N3.3tn in 2022, as the Federal Government struggled to hold the cost of the product far below its global market price. The cost of the commodity jumped by over 250 percent immediately subsidy was removed by Tinubu.

Ajiya confirmed that the removal of subsidy had made the company start making remittances into the Federation Account.

“We have now begun to pay dividends to the federation. We are also paying our due obligations in terms of taxes and royalties,” he stated.

The company further stated in the documentary that the end to subsidy enabled it to contribute N4.5tn to the Federation Account in nine months.

“For the first time in a long time, NNPC Ltd in 2023 contributed to the Federation Account, accounting for N4.5tn between January and September 2023,” the national oil company stated.

Meanwhile, the Nigerian National Petroleum Company Limited spent an estimated NN2.9tn on wages, entertainment, bank charges, running cost and others between September 2021 and December 2022.

This was contained in the NNPCL’s recently released Audited Financial Statement for 2022.

In the report, the NNPCL Group gulped a total of N1.7tn as its general and administrative charges for the 16 months period, while the company spent a sum of N1.2tn.

According to the report, both NNPCL Group and the company spent a total of N872bn on “other expenses” not clearly specified in the document.

Security expenses by the Group and the company stood at N532bn, while entertainment expenses took N8.35bn.

In the period under review, a sum of N373bn was spent on employee benefit expenses, which include salaries, wages, allowances, pensions and gratuities.

Directors’ expenses gulped N1.2bn, office running costs consumed N1.8bn, while management and facilitation fees took N295m.

It was observed that N1.65bn was expended on donations; audit fees was N2bn as fines & penalties took N45bn.

Other expenses include bank charges, N675m; depreciation of other property, plants and equipment, N67.9bn; depreciation of right of use asset, N1.3bn; advertisement and publicity, N4.9bn; legal and professional fees, N8.3bn; printing and stationery, N57.5bn; rents and rates, N35bn; repairs and maintenance N219.9bn; travelling and transport, N354.2bn; minimum tax and levy, N15.65bn, write-off of property, plant and equipment, N139.8bn; postages and telephone, N3.46bn among others.

The report showed that the NNPCL Group generated a revenue of N8.82tn in 16 months and the company made a sum of N2.9tn from September 2021 to December 2022.

For the NNPCL Group, the profit before income is N1.81tn; income tax credit is N717bn. Profit for the period is N2.52tn, while total comprehensive income for the period is N4.7tn.

As for the NNPCL Company, the profit before income is N1.53tn; income tax credit is N459.7bn. Profit for the period is N1.992tn, while total comprehensive income for the period is N3.77tn.

The NNPCL Group generated N3.53tn revenue from crude oil sales; N.4.51tn from petroleum products sales; N683bn from sales of natural gas N683bn and N100.5bn from services N100.5bn.

“Revenue from crude oil sales is from sales of utilized crude during the period and liftings of equity interest in various oil assets.

“Petroleum products sales include the sale of Premium Motor Spirit, Dual Purpose Kerosene, Automotive Gasoline Oil, Naphtha, lubricants and other related products.

“Sale of natural gas represents the invoice value (transaction price) of natural gas sold to third parties. Revenue from services consists of revenue from seismic contracts, time8 based contracts, gas transmission tariffs, shipping, marine and engineering,” the report explained.

The report disclosed that the NNPCL account was audited by PricewaterhouseCoopers Chartered Accountants, SIAO Partners Chartered Accountants and Muhtari Dangana and Co. Chartered Accountants.

BIG STORY

Rejoinder To Daily Trust Article: President Tinubu Positioned For Victory In 2027 — By Prince Adeyemi Shonibare

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President Tinubu is well-positioned to secure victory in the 2027 elections. His achievements, leadership experience, and the significant strides made across key sectors of governance solidify his place as the frontrunner.

  • Key Achievements and Factors for Victory

1. Direct Funding to Local Governments:

For the first time in Nigeria’s history, the 774 local government chairmen will receive funds directly from the federal government starting this month. This bold move decentralizes resources, empowers grassroots development, and strengthens loyalty to the man who initiated this transformative policy—President Tinubu.

2. Empowering Citizens:

President Tinubu’s administration has rolled out impactful programs, including student loans, consumer credit initiatives, and direct cash transfers. These initiatives have touched millions of lives and earned him unwavering support from beneficiaries who recognise the positive impact of these policies.

3. Political Dominance:

APC remains the most dominant political party in Nigeria, controlling more states than any opposition party. APC governors will rally behind Tinubu in 2027, leveraging the party’s expansive structure to consolidate support.

4. Regional Strength:

South West:

President Tinubu will sweep all six South West states. APC currently controls four states, and Tinubu’s win in Oyo during the 2023 elections further demonstrates his stronghold. By 2027, even Osun, which narrowly escaped APC control, will fall back in line.

South-South:

Tinubu will likely secure Cross River, Rivers, Edo, and Delta while achieving the required 25% in other states. APC’s current control of Edo and Cross River further reinforces this projection.

South East:

The establishment of the South East Development Commission has endeared Tinubu to the region. He is expected to win Enugu, Imo, and Ebonyi while securing 25% in Anambra and Abia. APC governs Imo and Ebonyi, and with strategic campaigning, Anambra might surprise everyone in 2027.

North West & North East:

These regions remain APC’s strongholds, and Tinubu’s track record ensures that they will deliver the necessary states.

North Central:

States like Abuja, Kogi, Nasarawa, and Plateau are expected to align with Tinubu, given his strong rapport and ongoing development efforts in the region.

5. Resilience and Leadership Experience:

Tinubu’s journey from private sector success to public service is unparalleled. He served as a lawmaker, a transformative governor, and now a results-driven president. His international experience in oil, gas, and finance, coupled with his fearless leadership style, makes him a standout leader. Tinubu is the only president in Nigeria’s history to take bold steps like subsidy removal and exchange rate unification, laying the foundation for long-term prosperity

6. Economic Reforms and Policies:

Tinubu’s tax reforms exempt minimum wage earners and small businesses (earning less than ₦25 million annually) from federal taxes. By 2027, Nigeria will become a major exporter of refined petroleum products, with all four refineries operational.

The federal government’s agriculture policies, in collaboration with states, will yield significant results.

Security will improve, potentially with the full implementation of state policing.

Electricity management, now involving states, will lead to a more reliable power supply.

Mass transportation systems, including local, state, and federal rail services, will transform mobility.

With growing FDI, increased earnings from oil and gas, and direct investments, Nigeria will witness unprecedented progress under Tinubu’s leadership.

7. Broad-Based Support:

Tinubu’s influence transcends party lines, garnering support from private enterprises, public institutions, and even opposition leaders. Some PDP governors from the East may align with Tinubu’s vision in 2027, recognizing his ability to unify and deliver results.

8. Legacy of Leadership:

Tinubu’s record of governance in Lagos—one of Africa’s largest economies—is unmatched. When he assumed office in 1999, Lagos generated ₦400 million monthly against expenses of over ₦600 million. By the end of his tenure, Lagos’ monthly IGR had risen to ₦8 billion. This same transformational leadership is now evident at the federal level, with Nigeria’s reserves growing and states receiving triple their previous allocations.

Under Tinubu, local governments will receive significant funds. If each of the 774 local governments spends ₦2 billion monthly, the ripple effect will transform communities and improve lives nationwide. Without constitutional reforms, Tinubu is restructuring Nigeria by empowering states and local governments while maintaining harmony with governors, legislators, and the judiciary.

9. Strategic Reallocation of Subsidy Funds:

Funds from subsidy removal on petrol and exchange rates are now being redistributed across federal, state, and local governments. The judicious use of these funds will catalyse development, creating visible progress that further cements Tinubu’s leadership legacy.

10. A Leader for the Future

By 2027, Tinubu’s achievements will speak louder than promises. Nigeria will see improved security, stable electricity, a revitalized economy, and a robust transportation system. His reforms will deliver real, measurable results, leaving opponents to merely speculate on what they could do better.

If God grants him life and strength, and he chooses to contest in 2027, President Tinubu’s re-election will not just be a possibility—it will be a certainty. His vision, achievements, and widespread support make his victory inevitable.

 

By Prince Adeyemi Shonibare .

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BIG STORY

JUST IN: Fuji Icon K1 Loses 105-Yr-Old Mother Days After Wife’s Death

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Nigerian Fuji legend, Wasiu Ayinde, popularly known as “K1 de Ultimate,” is in mourning following the death of his mother, “Halimotu Anifowoshe,” just days after the passing of his former wife, “Hafsat,” at the age of 65.

It was gathered that the mother of the music icon was declared dead by medical professionals in her hometown, “Ijebu Ode,” Ogun State, where she resided.

A family source revealed that the centenarian passed away in the early hours of Saturday, causing the entire community of “Ijebu Ode” to mourn her loss.

It was further gathered that the deceased would be buried in accordance with Islamic rites later that day in her hometown.

According to a source, the Fuji musician has been deeply affected by his mother’s death, as they shared a close bond. He often praised her during his stage performances.

The centenarian’s death followed the artist’s earlier revelation that he inherited his musical talent from his mother, who, despite her own potential, was not permitted to pursue a career in music.

He explained that his mother was the daughter of a king, and her parents did not allow her to sing because they wanted her to marry.

K1 added that his mother was highly talented, but her parents feared that her career in music would delay her marriage.

“I was blessed with the gift of music from a young age, I was born into music. My mother was a singer before she got married. She had the gift of music and she was a princess.”

“She was not allowed to sing back then because she was a princess, and her parents were worried that allowing her to be a musician would delay her from getting married sooner. Her parents said my mother won’t be allowed to sing because she is the daughter of a king.”

It should be noted that the singer’s former wife, “Hafsat,” passed away after battling an undisclosed illness and was buried following Islamic traditions at “Abari Cemetery,” Lagos State.

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BIG STORY

Nigerians Recruited As UK Prison Officers Sleep In Cars, Camp Near Jails

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The United Kingdom’s prison service has started recruiting prison officers from Nigeria and other countries to address staffing shortages.

However, many of these new recruits, including Nigerians, are facing accommodation difficulties, with some resorting to sleeping in their cars or camping near prisons to save on housing costs, according to a report by The Telegraph on Thursday.

This is the first time the UK prison service is sponsoring skilled worker visas for international recruits, following a rule change in 2023 that added prison officers to the list of eligible professions.

Many of the new recruits are Nigerians, including some who transitioned from other visa routes to the prison service.

The Prison Officers Association (POA) has reported cases of Nigerian recruits arriving at UK prisons under the assumption that accommodation would be provided.

Mark Fairhurst, the president of the POA, shared an example of a recruit who commuted 70 miles daily from Huddersfield to Nottingham, eventually deciding it was cheaper to sleep in his car outside the prison.

At another location, some officers set up a camp in a wooded area near the prison after learning they would need to arrange their own housing.

“We have got problems with people who turn up at the gates with cases in tow and with their families saying to the staff: ‘Where is the accommodation?’,” Fairhurst stated.

Sources from the Ministry of Justice in the UK indicate that approximately 250 foreign nationals have been recruited into the UK prison service after Zoom interviews and vetting.

In 2023, a significant portion of the 3,500 monthly applicants were from Africa.

Tom Wheatley, the president of the Prison Governors Association, attributed the influx to word-of-mouth promotion by Nigerians already working in the UK.

“It’s turned into an approach that has been promoted online by the expat Nigerian community,” Wheatley noted.

However, he acknowledged challenges, including language barriers and the difficulty of integrating foreign recruits into rural communities.

Despite these challenges, the UK prison service insists its recruitment and training processes are thorough.

A spokesperson for the Prison Service told The Telegraph, “all staff – regardless of nationality – undergo robust assessments and training before they work in prisons. Our strengthened vetting process roots out those who fall below our high standards.”

The reliance on virtual interviews has also raised concerns, with some questioning the suitability of officers recruited this way.

Fairhurst has called on the prison service to return to face-to-face interviews, stating that six weeks of training is insufficient for recruits to manage prisoners effectively.

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