By Emmanuella Anokam

The three tiers of government – the Federal, States and Local Government Councils (LGs), shared a total of N4.37 trillion from the Federation Account as statutory revenue allocations between January and June 2023.

This is contained in the latest report by the Nigeria Extractive Industries Transparency Initiative (NEITI) on the Federation Account revenue allocations for the first half of the year.

Dr Orji Ogbonnanya Orji, Executive Secretary, NEITI, who announced the report on Thursday in Abuja, said total distributable FAAC allocations to the three tiers of government in first and second quarters (Q2) of 2023 stood at N2.32 trillion and N2.04 trillion respectively.

The NEITI quarterly review revealed that inflows into the Federation Account in Q2 of 2023 declined by 23 per cent which affected the distributable revenue which fell by 12 per cent when compared with the total revenue disbursed in the first quarter.

“Each tier of government received more than N1 trillion over the six-month period,” he said.

The report showed that a breakdown of the revenue receipts showed that the federal government received about N1.78 trillion, or 40.7 per cent, while the State governments received N1.5 trillion, or 34.5 per cent.

According to the report, the Local government councils received N1.08 trillion or 24.8 per cent of the total distributable revenue for the period.

It further disclosed that a comparative analysis of the total allocations on a year-on-year basis in the corresponding quarters of 2022 and 2023 showed that the distributable revenue of N4.366 trillion shared was higher by 16.7 per cent from about N4.05 trillion shared in 2022.

Consequently, it revealed that the allocation received by the federal government over the period under review increased by 19.8 per cent to N1.78 trillion in 2023, from the N1.48 trillion in the corresponding period in 2022.

Similarly, the report noted allocations to the State governments grew by about 11.2 per cent to N1.42 trillion in 2023 from N1.26 trillion in 2022, while allocations to the LGs rose by 16.8 per cent to N1.08 trillion in 2023, from N926 billion in 2022.

The increase in half-yearly allocations in 2023 was consistent with an upward trend from the previous period where the distributable revenue for the first half of the year rose by 16.7 per cent, from N3.47 trillion between January and June 2021 to N4.05 trillion in the corresponding period in 2022.

Also , allocations to the federal, states and LGs increased across board by 8.8 per cent 26.5 per cent and 14.2 per cent respectively.

However, compared to the same period in 2022, it said the report showed that FAAC distribution in Q2 declined in absolute value with total distributable revenue of N2.02 trillion being less by 13 per cent than about N2.16 trillion distributed in the second quarter of 2022.

It said further analysis of the disbursements to the states showed that Delta state received the highest allocation of N102.79 billion in the second quarter of 2023, followed by Akwa Ibom’s N70.01 billion, Rivers N69.73 billion, Lagos N60.64 billion and Bayelsa N56.34 billion.

It said the total disbursements to these five states (N359.5 billion), or 35.9 per cent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion).

It said the cumulative allocation to the five states was also more than the share of allocation to 19 other states put together, adding that the bottom 10 states received 17.3 per cent of the revenue shared in the second quarter of 2023.

According to the report, Nasarawa, Ebonyi, Ekiti, Gombe and Taraba states received the lowest allocations of N16.71 billion, N16.84 billion, N16.95 billion, N17.22 billion and N17.45 billion respectively.

It said four of the five states with the highest allocations, except Lagos, received a significant share of 13 per cent derivation revenue allocated to oil-producing states.

It said the total disbursements to these five states (N359.5 billion), or 35.9 per cent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion), while the cumulative allocation to the five states was also more than the share of allocation to 19 other states.

It added that the bottom 10 states received 17.3 per cent of the revenue shared in the second quarter of 2023.
It stated that the bulk of the revenues to the federation account came from remittances from the three main revenue-generating agencies.

It listed them as the Nigeria Upstream Petroleum Regulatory Commission, the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS).

These revenues, it explained that they came through earnings from the different revenue streams, including oil and gas royalties, petroleum profit tax, company income tax, value added tax and import and excise duties.

“Also, revenue remittances of about N1.84 trillion in Q2 2023 came from mineral and non-mineral sources, comprising of N809 billion, or 44 per cent from mineral revenue (mostly oil and gas) and N1.03 trillion, or 56 per cent from non-mineral sources.

The report further revealed a huge gap between revenue disbursements from the oil and gas and solid minerals sectors, pointing out that this was a reflection of the perennial underperformance of the latter over the years.

“In terms of debt service obligations and the impacts on states’ net allocations, the report showed that Lagos topped the list of 36 states with a total deduction of N9.03 billion in the second quarter of 2023, followed by Delta (N6.76 billion), Ogun (N6.10 billion), Kaduna (N5.63 billion), Osun (N5.60 billion and Imo (N5.51 billion).

“Jigawa, Anambra, Nassarawa, Kebbi and Enugu States had the lowest deductions of N1.16 billion, N1.29 billion, N1.45 billion, N1.51 billion and N1.88 billion respectively.

“The nine oil-producing states, according to the report, namely Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo and Rivers states received allocations relative to their share of the oil and gas as well as other minerals extracted from their domains,” it said.

It projected that with efficient, prudent management and utilisation of the savings of N3.6Trillion from subsidy payment in the first six months of 2023, Nigeria’s balance of payments would be boosted as demand which was served entirely by product importation would be curtailed.

It said the drop in demand would inadvertently, trigger a corresponding reduction in the dollar volume needed to pay for premium motor spirit (PMS), which constituted the largest single import product by value,” he said.

The report welcomed with high expectations, the unification and the floating of the exchange rate policy recently introduced to strengthen and stabilise the economy.

“With the average exchange rate of N713.69 to US$1, which is about 55 per cent higher than the rate of N460.52 to the dollar recorded during Q2 will significantly raise the value of export earnings remitted to the Federation Account by more than 50 per cent.

“Also earnings from the new exchange rate through exports will also increase the value of foreign capital inflows, including investments, loans and grants,” it recommended.

Also, the report urged the Central Bank of Nigeria to prioritise policies to stabilise the exchange rate to facilitate the effective implementation of the deregulation policy and stabilise foreign exchange-dependent inflows into the Federation Account. (NAN)(www.nannews.ng)

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Edited by Sadiya Hamza

By Usman Aliyu

The Petroleum Trust Development Fund (PTDF) says it has partnered with some Nigerian universities on research into alternative source of energy called renewable energy.

The PTDF’s Executive Secretary, Dr Bello Aliyu Gusau, disclosed this at a workshop on Wednesday held at University of Benin.

The News Agency of Nigeria (NAN) reports that the workshop titled: “Agro Waste to Energy: Biodiesel Bedrock of Energy Sufficiency in Nigeria” was organised by PDTF Professionals Chair.

Gusau was represented by the Deputy General Manager, Strategic Planning and Documentation, Mr Olayinka Agboola,

He said the workshop was to expand the frontier of knowledge based on findings of research work on alternative energy sources.

“We have invested funds in this research work, to see how we can make our local materials in renewable energy,” he said.

According to him, the effort became necessary due to the complexity of the energy problem in Nigeria which requires alternative sources.

The D-G pointed out that the fossil fuel used as a source of power by Nigerians is becoming expensive to procure, adding that time has come to harness solar, wind and geothermal as energy sources.

In her welcome address, Vice-Chancellor, University of Benin, Prof. Lilian Salami, commended PTDF for assisting the universities with research funds.

Salami, who was represented by her Deputy Vice Chancellor Ekhewan Campus, Prof. Buniyamin Ayinde, said that the partnership would move the society forward.

Speaking, a scholar Prof. Ikuonase Emovon of the Federal University of Petroleum Resources, Effurun, Delta, said Nigeria is endowed with renewable energy resources capable of easing the power generation problems.

Also contributing, Prof. Kessington Obahiagbon, the PTDF Chair Holder, said biomass fuel is becoming a viable alternative for fossil fuels due to rising demand for clean energy, diminishing fuel stocks and lowering reliance on crude oil. (NAN)(www.nannews.ng)

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Edited by Abdul Hassan/Julius Toba-Jegede

By Emmanuella Anokam

Sen. Heineken Lokpobiri, Minister of State for Petroleum (Oil), and his counterpart, Mr Ekperikpe Ekpo, have urged the ministry’s staff to garner their support in realising President Bola Tinubu’s Renewed Hope Agenda.

The duo, at a town hall meeting in Abuja, emphasised the need to reshape the narrative within the oil and gas sector.

Lokpobiri, in statement on Wednesday by Mrs Oluwakemi Ogunmakinwa, Deputy Director/Head, Press and Public Relations Unit, undescored the ministry’s vital role in Nigeria’s survival and the need for effective performance to address the nation’s challenges.

He explained that having two ministers in the ministry was a strategic decision to propel change and expand investments in the Oil and Gas Sector.

He described the Petroleum Industry Act (PIA 2021) as a facilitating factor, and assured the staff that collaboration between him and his counterpart would lead to the realisation of the president’s directive.

He stated that during their recent visit to the Port Harcourt Refinery, the contractors working on the refinery’s rehabilitation indicated that the initial phase would be completed by December 2023.

Lokpobiri also expressed willingness to engage stakeholders in the creeks to combat oil theft and pipeline vandalism.

Ekpo, Minister of State for Petroleum (Gas) also underscored the ministry’s significance in Nigeria’s economic growth and urged the staff to contribute their expertise to fulfill their mandates.

“We are here to work alongside you, understand you, and encourage you to bring your skills to bear,” he expressed.

He further outlined their shared objective of expanding domestic gas penetration, including Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), for the betterment of the nation.

Amb. Gabriel Aduda, the Permanent Secretary of the ministry, expressed confidence in the staff’s capability to achieve the ministers’ goals.

He listed initiatives such as providing staff buses to ease transportation and transitioning same to CNG to align with environmental concerns.

Aduda advocated leveraging the ministers’ experience to advance the industry and announced plans for frequent meetings to enhance communication and collaboration within the ministry.

The engaging town hall meeting was attended by directors and staff from the Ministry of Petroleum Resources, showcasing the ministry’s dedication to transparency, collaboration and administration’s agenda. (NAN)(www.nannews.ng)

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Edited by Idris Abdulrahman

By Diana Omueza

A former presidential candidate of the Action Democratic Congress (ADC), Dumebi Kachikwu has commended the Federal Government’s momentum towards curbing crude oil theft in the southern part of the country.

Kachikwu said this in a statement on Tuesday in Abuja.

He said this while reacting to the alleged statement by Rivers Governor, Siminalayi Fubara, who called for sharing of pipeline security contract.

The News Agency of Nigeria (NAN) reports that Fubara allegedly said that the “security of pipeline should not be given to one man or one person”.

“I am astonished that Gov. Fubara made such an ignorant statement. He is the governor of a state that is one of the leading states in crude oil theft and illegal refining activities.

“One would have expected that the gains the Federal Government and the Nigeria National Petroleum Company Limited (NNPCL) are making through the partnership with Tantita and other security agencies would be applauded by him like all well-meaning Nigerians are doing.

“But there he was talking about contract being awarded to one man. Did the government award the pipeline contract to a man or a company?

“This approach of ‘let us share contracts for the boys’ must stop.

“If the governor is so interested in contracts being awarded to former militants, he can create and award contracts to those of them in his domain,” he said.

Kachikwu said that the Tinubu-led administration was serious about fighting crude oil theft and should be supported by all.

According to him, what is now clear to all Nigerians is that the government means business in its war against crude oil theft, and they are only working with trusted partners who they know won’t compromise. (NAN) (www.nannews.ng)

Edited by Idris Abdulrahman

By Emmanuella Anokam

An oil theft situation assessment delegation deployed in the Niger Delta by President Bola Tinubu discovered an illegal oil connection on Saturday.

From the illegal connection discovered at Owaza in Abia, Nigeria loses an average of 7.2 million dollars monthly, the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) stated on Sunday.

It added that clandestine refineries, illegal bunkering operations and environmental devastation the team saw in communities visited, collectively translated into severe economic losses for the nation.

The delegation, led by the Minister of Defence, Malam Muhammed Badaru, has service chiefs, and the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri as members.

Other members are the Minister of State for Petroleum Resources (Gas), Mr Ekperipe Ekpo, the National Security Adviser, Malam Nuhu Ribadu, and the Group Chief Executive Officer, NNPC Ltd., Malam Mele Kyari.

Also in the team are Commander of “Operation Delta Safe”, Rear Adm. Olusegun Ferreira, operatives of security agencies and chief executive officers of regulatory agencies in the oil and gas sector.

The team visited the Trans-Niger Pipeline Right of Way in Owaza, Abia, where an array of dismantled illegal connections were observed.

The delegation also visited Bille, Azuzuama, Ahoada, Rumuekepe Ebocha, Abacheke, Egbema, Ohaji, and Koko communities in five states of Abia, Rivers, Bayelsa, Imo and Delta States.

“We are ready to do whatever it takes for a peaceful Niger-Delta. Cease and desist from crude oil theft and economic sabotage,” Malam Badaru advised at the site.

In his remarks, Kyari said while oil theft in vessels could be tracked, oil-bearing communities must play a vital role in curbing oil theft within their communities.

“Oil theft is one of the reasons why Nigeria cannot meet her OPEC daily production quota,’’ he said.

Also speaking at the site, Chief Security Officer of Pipeline Infrastructure Nigeria Ltd., Mr Patrick Godwin, said some arrests had been made and culprits arraigned.

In his comments, Ribadu applauded security agencies, community security contractors, and NNPC Ltd. for stepping up the fight against oil theft and economic sabotage.

“The environment and livelihoods are being destroyed while the federation is deprived of revenue capable of shoring up the economy and strengthening the Naira,” he said. (NAN)(www.nannews.ng)

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Edited by Alli Hakeem

By Emmanuella Anokam

The Nigeria Extractive Industries Transparency Initiative (NEITI) has welcomed with high expectations, the growing interest of the organised private sector, banks and financial institutions, in the implementation of beneficial ownership disclosures.

Dr Orji Ogbonnaya Orji, Executive Secretary, NEITI, told a regional Conference of Member States of the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) in Accra, Ghana, that private sector participation was important in the disclosures.

Orji said in a statement issued on Wednesday by Mrs Obiageli Onuoha, Deputy Director/Head Communications and Stakeholders Management, that banks and other financial institutions were critical in checking illicit financial flows.

He stated that the banking sector and other financial institutions were also critical in exposing money laundering and terrorism financing in the West African sub region.

“The private sector, especially banks and other financial institutions that provide safe havens for illicit financial transactions across national and international boundaries, have strategic responsibilities.

“There is a need to deploy, use and share beneficial ownership information and data, including adoption and aligning with transparency reform institutions like NEITI, in risk assessment and adoption of progressive best practices in beneficial ownership transparency.

“NEITI is delighted to be part of the regional forum of GIABA convened to discuss deeper engagements with the private sector, anti-corruption institutions, relevant security agencies and other EITI member countries, to broaden the scope of beneficial ownership implementation,” he said.

According to him, the meeting resolved to deploy accurate information and data to assist relevant authorities and the private sector, including financial institutions and designated non-financial institutions to combat money laundering and associated predicate offenses.

He said the regional meeting also resolved to take steps to ensure a balance between Beneficial Ownership transparency objectives and protection of citizens’ and individuals’ right to privacy and data protection.

He said it also resolved to seek required political support, engage in information sharing, public education and enlightenment to broaden the scope of implementation in member countries.

“Other resolutions include prioritisation of human capacity development, financial and technical resources mobilisation and management.

“It resolved to ensure compliance by reporting institutions and other private sector entities and to strengthen cooperation among GIABA member states on BO data verification.

“The forum recognised the role of EITI; Compliance Officers Forum of GIABA Member States; Compliance Institute, Nigeria; and Open Ownership in strengthening Beneficial Ownership transparency and its importance to public sector reforms,” he said.

He urged member countries within the GIABA region to take concrete steps to broaden and deepen implementation of public beneficial ownership disclosures as important tools to combat illicit financial flows, money laundering and terrorism financing.

These, he said, would guarantee the peace and security of the sub region.

Others who addressed the meeting were the Registrar-General of the Corporate Affairs Commission, Alhaji Garuba Abubakar, Director of Operation at the EFCC and ICPC as well as representatives of banks and financial institutions in Nigeria. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

By Emmanuella Anokam

Sen. Heineken Lokpobiri, Minister of State (Oil) Petroleum Resources, has assured Nigerians of increased oil production on a sustainable basis.

Lokpobiri gave the assurance in Abuja on Monday while addressing stakeholders on his assumption of duty, shortly after taking his oath of office.

The News Agency of Nigeria (NAN) reports that Lokpobiri and his counterpart, Mr Ekperipe Ekpo, Minister of State (Gas), Petroleum Resources, were among the ministers inaugurated by President Bola Tinubu at the State House on Monday.

Lokpobiri, while stating that he believed in action, and would spend more time in the field, also promised to work together with the regulatory agencies and stakeholders to boost oil production for the benefits of Nigerians.

“I have got more energy, and I have come to utilise that energy to revamp the petroleum sector.

“I am here with one agenda, which is to increase oil production and in order to increase it, we need to work together to achieve the desired results.

“I am here to provide the leadership so that we can go to the Creeks and resolve all the problems,” he assured.

His counterpart, Ekpo, who expressed gratitude to the President for finding him and others worthy to serve, said he would be committed to sustainable gas requisite framework and development of gas infrastructure for the benefit of Nigerians.

Ekpo said Nigeria’s proven natural gas reserves positioned the nations as one of the countries with the greatest reserves, and harnessing the gas reserves would stimulate domestic economy, gas utilisation and support thousands of jobs for economic growth.

He promised to work tirelessly to translate the potentials into realities, for economic advancement.

“With the removal of fuel subsidy, the enormous responsibility of providing alternative to fuel rests on the ministry,” he said.

He said in line with the presidential approval of Compressed Natural Gas (CNG) Initiative, and as an immediate strategy, the ministry would examine the utilisation of CNG for mass transit sector and associating power generating infrastructure.

“This will support the economy in many ways, including scaling down cost of transportation which will cause multiplier effects, lower food cost and reverse inflationary trend leading to measurable improvement in living conditions of Nigerians,” he added.

According to him, post-COVID era and current Russian-Ukraine war have caused imbalances in the global gas industry.

He said in the next few months, he would be receiving briefings from relevant ministries, departments and agencies (MDAs) with the view to ascertaining the actual status of Nigeria’s gas exploration and utilisation, state of infrastructure delivery, level of access and projects within the gas industry.

He therefore urged the National Assembly to grant the ministry needed legislative support to achieve the responsibilities set before the ministry.

“Only together, we can succeed,” Ekpo assured.

Earlier, Amb. Gabriel Aduda, Permanent Secretary of the ministry, while stating that its target was to ramp up oil and gas production, said its efforts extended to the rehabilitation of refineries and the expansion of domestic gas usage.

Aduda said from increasing crude oil production to streamlining petroleum product pricing and distribution, the ministry was revitalising pipelines, encouraging reservoir maintenance projects, and optimising idle fields.

He added that the implementation of automated fuel management systems, the supply of gas to industries, and the enhancement of performance management systems were all steps towards realising its shared vision.

“With all of these in mind. I extend a warm and hearty welcome to the newly-appointed Minister of State (Oil) and the Minister of State (Gas).

“Your dedication, expertise and leadership will be the driving force behind the transformation of our energy sector.

“Together, we will embark on a journey to ensure that our nation’s crucial oil and gas resources are managed with the utmost care, responsibility, and strategic vision,” he said.

Aduda said the Ministry which was established in 1975, emerged in recognition of Nigeria’s pivotal status as a prominent oil producer.

“With a mandate encompassing policies for sustainable resource exploitation, regulatory oversight, local content development, environmental protection, and fostering investment, we are entrusted with shaping the trajectory of our nation’s energy sector,” he added.

He explained that the Ministry was guided by constitutional and legal frameworks, adding that the Petroleum Industry Act (PIA) of 2021 introduced transformative changes to governance, regulation, fiscal terms, and community engagement into the oil sector.

He said its adherence to the PIA, the 1969 Petroleum Act for non-converted acreages, the National Gas Policy, and the National Petroleum Policy, was paramount in ensuring a robust, responsible, and prosperous energy sector that aligns with evolving global dynamics.

“As we step into these roles. let us acknowledge the key responsibilities and portfolio overview that we have been entrusted with,” he said.

NAN reports that the CEOs and directors of the Ministry’s agencies, including the Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian National Petroleum Company limited and the Petroleum Technology Development Fund were in attendance.

Others are representatives of the Nigerian Content Development and Monitoring Board, Nigerian Nuclear Regulatory Authority, and the Petroleum Training Institute. (NAN) (www.nannews.ng)

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Edited by Vincent Obi

By Emmanuella Anokam

An economic expert, Dr Chijioke Ekechukwu, has lauded the emergency three billion dollars crude oil repayment loan secured by the National Petroleum Company Ltd. (NNPC Ltd) from Afreximbank to stabilise exchange rate.

Ekechukwu said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

He said the loan came as a matter of expediency to save the continuous free fall of the naira in the shortest run.

The economist said there was no other measure or monetary/fiscal policy decision that would have been able to save the depreciation of the naira in such a short period of time.

“It is, therefore, a very necessary intervention while working out other medium to long-term remedial solutions to the Naira fall.

“The intervention is inevitable because that’s the only way we can wriggle out of the economic embarrassment we find ourselves now as a result of the very high exchange rate,” he said.

However, he advised the three tiers of government to desist from extravagant cost of governance.

According to him, all is not economically well, so we need to adjust our expenditure pattern and total cost of governance.

The naira float had seen the currency plunge from below N500 per dollar on the official exchange windows to a record low of about N900 naira.

Petrol now sells at N617 from the first increment of N540 per litre since May 29, when President Bola Tinubu announced that fuel subsidy was gone.

NAN reports that the NNPC Ltd. and Afreximbank had recently signed a commitment letter and term sheet for an emergency three billion dollars crude oil repayment loan.

The deal, according to NNPC Ltd., will provide immediate disbursement to enable the NNPC Ltd to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.

It will cushion the effect of fuel price jump and scarcity of forex, associated with the free float of the naira. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma