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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

Why Making Movies The Nollywood Way Is An Important Book — By Niran Adedokun

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“The 1992 release of Living in Bondage has been widely touted as the beginning of new Nollywood as we know it. This was when Nigerian filmmaking transitioned into portable can-be-watched at home VHS-recorded movies. And as viewing options transformed from clunky VHSs to lightweight CD-ROMs and subsequently to ubiquitous internet-based streaming platforms, Nollywood has also evolved to include new stories, actors, production techniques, production crews and filmmakers. While most of these transitions and players have been captured in books, documentaries and other media formats, little to nothing has been done to document the filmmaking process the Nollywood way.

What this implied was that new and aspiring filmmakers had no handbook they could turn to for guidance on what they need to know, have and be to produce a movie in Nigeria. Such newbies could only rely on snippets from interviews or if lucky, studying at a filmmaking school or getting a chance to learn practically by working on a movie set. Although studying and learning by doing have advantages, they do not give the benefit of drawing from the wealth of experience of multiple veteran filmmakers at the same time, which limits new filmmakers’ worldview and consequently the quality of work they produce.

Having identified and seen the need to close this gap, Seun Oloketuyi embarked on an audacious project, the result of which is this book. In Making Movies the Nollywood Way, Seun set to answer seven essential questions, the answers of which would set aspiring and new filmmakers on the path to success: 1. What does the filmmaking process entail? 2. What is filmmaking in Nigeria like? 3. How does timing work in Nollywood? 4. What funding options are available, and budgeting considerations should a Nigerian filmmaker factor in? 5. What challenges, in addition to location scouting, should filmmakers watch out for? 6. What are the key ingredients for success and marketing in Nollywood? And finally, how does a typical day on set look like for a Nollywood filmmaker?

To answer these questions, Seun turns to the “who’s who”, the major players, the ace directors and filmmakers across Nollywood with decades of experience and scores of movies in their portfolios. From Tope Oshin to Biodun Stephen, Ibrahim “Itele” Yekini, Robert Peters, Wale Adenuga, Tade Ogidan, Zeb Ejiro, Ayo “AY” Makun, Emem Isong, Zik Zulu Okafor, Rogers Ofime, Fidelis Duker, Lancelot Imasuen, and Ali Nuhu. Thankfully, these movie afficionados do not hold back. From having to work with tight or non-existent budgets to battling louts who frustrate film shoots to identifying knowing the right stories that captivates the Nigerian audience. The unvarnished truth is laid bare and the joys and frustrations of filmmaking the Nollywood way are exposed, with the hope of steering the course of the next generation of filmmakers

I am not surprised at what Oloketuyi has documented. Rather, I find myself asking, what took him so long? I have known and collaborated with Mr Oloketuyi for nearly three decades. I have followed with admiration the great work he has been doing in ensuring the Nigerian film industry gets the accolades and recognition due it. This was part of why he established the “Best of Nollywood” Awards in 2009, to annually recognise outstanding achievements in Nollywood. Having dabbled into filmmaking himself, Seun is able to empathise with filmmakers and with his decades of experience working in the industry he knows where the shoe pinches.

In writing this book, Oloketuyi has further shown that he is concerned not only about the present but the future of Nollywood. This book is a timely resource for everyone who is interested in filmmaking in general and especially filmmaking the Nigerian way. I urge aspiring, young and new movie makers to read, imbibe and apply the copious lessons it has to offer. As they say, experience is the best teacher, but it doesn’t necessarily have to be one’s own experience. Reading this book will ensure new filmmakers do not need to reinvent the wheel by waste time, money, and other resources in navigating the filmmaking business in Nigeria. With this book, you do not get frustrated before you even begin like is the experience of many people.

This book is also recommended to decision makers, policy makers, government agencies and other stakeholders who have the power to shape and influence the filmmaking industry. Tales of poor funding and other infrastructural deficits are rife within this book, begging for an urgent intervention to promote the survival and sustainability of Nollywood. A well-functioning Nollywood is essential if the next generation of thespians and film production experts are to embrace it as a career path. It if critical to the future of the country, and the urgent need for it to diversity its economy and make harness the endless potential in this largely privately motivated industry.

 

Niran Adedokun

Author of Ladies Calling the Shots

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BIG STORY

Ex-Commissioner Jude Dakur Announces Plateau Governorship Bid Under APC, Gets Party Stakeholders’ Backing [PHOTOS]

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The political atmosphere in Plateau State gained fresh momentum on Friday as Hon. Jude Eli Dakur formally declared his intention to contest for the governorship of Plateau State in 2027 under the platform of the All Progressives Congress (APC).

Dakur made the declaration before the leadership of the APC in Kerang Ward, his immediate ward, as well as the Mangu Local Government Executive Committee and members of the State Executive Council. His announcement was met with overwhelming support from stakeholders, party leaders, and enthusiastic supporters who commended his courage and readiness to serve.

A former Commissioner of Education and Commissioner for Mineral Development in the state, Dakur is regarded as an experienced administrator with the skills to drive growth and development.

Speaking at the event, Dakur reaffirmed his passion for the progress of Plateau State and pledged to bring vision, integrity, and competence into governance if elected governor.

Grassroots mobilisers and various organisations present pledged their commitment to the “Faith Project” movement, promising to spread the message of transformation and unity across communities in the state.

The declaration has set the stage for what supporters describe as a new wave of political momentum for the APC in Plateau State as preparations for the 2027 elections gather pace.

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BIG STORY

BREAKING: Ibrahim Shatta Loses Son Few Days After Peju Ogunmola Lost Only Son

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Popular Yoruba actor and filmmaker, Ibrahim Chatta, has announced the death of his son.

The actor broke the news on his Instagram page on Saturday, expressing grief and submitting to the will of God.

“Inna liLlahi wa inna ileyhi rajiun. Ya Allah, You are the Knower of all things. Rest on Dear Son, Champ,” he wrote.

Chatta’s loss comes only days after fellow actress Peju Ogunmola also lost her only son with veteran actor Sunday Omobolanle, popularly known as Papi Luwe.

The twin tragedies have thrown Nollywood into mourning, with condolences pouring in from colleagues and fans of both families.

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