The Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has said he will reveal the truth about the company’s operations in the oil and gas sector at the appropriate time.
Kyari made the statement on Wednesday while testifying before a Senate ad hoc committee investigating alleged economic sabotage in the petroleum industry.
The committee, which is led by Senator Opeyemi Bamidele, is investigating the oil firm’s activities amidst calls for public scrutiny.
Kyari stated that the NNPCL is not involved in the importation of sub-standard products, as it was committed to transparency and integrity.
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He lamented unfair media reports, stating that it was targeted at tarnishing the company’s reputation and creating the impression of economic sabotage.
“We are not criminals, we are not thieves,” Kyari said. “We will protect our dignity so we can serve this country,” he said.
Recall that there has been a controversy between regulators in the oil and gas industry and the Dangote refinery.
One of the allegations is that some government officials own a blending plant in Malta.
Malta is an island country located in the central Mediterranean Sea.
An oil blending plant has no refining capability but can be used to blend re-refined oil with additives to create finished lubricant products.
“To clarify the allegations regarding blending plant, I do not own or operate any business directly or by proxy anywhere in the world with the exception of a local mini agric venture.
“Neither am I aware of any employee of the NNPC that owns or operates a blending plant in Malta or anywhere else in the world.
“A blending plant in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions.
“For further assurance, our compliance sanction grid shall apply to any NNPC employee who is established to be involved in doing so if availed and I strongly recommend that such individuals be declared publicly and be made known to relevant government security agencies for necessary actions in view of the grave implications for national energy security,” Kyari said in a post on his X handle.
Senate to probe of $1.5bn spent on PH refinery
Meanwhile, the Senate has revealed that it will probe the over the $1.5 billion dollars approved in 2021 for the turn-around maintenance of the Port Harcourt Refinery with little or no result.
Sen. Opeyemi Bamidele, Chairman, of the Senate Ad Hoc Committee to Investigate the Alleged Economic Sabotage in the Nigerian Petroleum Industry, raised the concern in his response during an interactive session with stakeholders
He recalled that the Federal Executive Council (FEC) had approved the plan by the Ministry of Petroleum Resources to rehabilitate and turn around the Port Harcourt Refinery with 1.5 billion dollars.
Bamidele expressed concern about the dysfunctional state of government-owned refineries in spite of billions of dollars spent on turn-around maintenance.
“The federation is undergoing a truly challenging period. The distribution and supply of refined petroleum products has been irregular and problematic in the recent history of our fatherland.
“The long queues at filling stations are obviously a testament to this challenge.
“A situation, whereby we now depend almost entirely on the importation of these products even when we daily supply the global oil market about two per cent of its crude oil requirements is worrisome,” he said.
He said also that of serious concern was the importation of hazardous petroleum products and dumping of substandard diesel in the country.
“For us in the Senate, we believe, it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving,” he added.
Similarly, the Chief Executive Officer of NMDPRA, Engr Farouk Ahmed said, “A lot of negative stories and narratives have been written and published against us in NMDPRA on how we are carrying out our regulatory functions, without us telling our own story.
“Gratifyingly, the planned public hearing will give us the appropriate platform of laying our facts bare to Nigerians for them to know who is sabotaging who. The investigation should be public and televised live.”
In his presentation, the Group Chief Strategy Officer of Dangote Refinery, Aliyu Sulaiman, said the NNPCL has given them 60 per cent of crude oil so far, and commended it for making “huge supply” to Dangote refinery.
In his remarks, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun expressed confidence in the leadership of the ad hoc committee to conduct an unbiased and impartial investigation.
$600m spent monthly in fuel importation
Meanwhile, Finance Minister Edun has revealed that Nigeria pays $600 million monthly on fuel imports, adding that the expenditure is partly because neighbouring countries, extending to Central Africa, are benefiting from these fuel imports.
Speaking during an interview on AIT’s ‘Moneyline with Nancy’, on Wednesday, Edun explained that the situation prompted President Bola Ahmed Tinubu to eliminate the fuel subsidy, as the country lacked precise data on its domestic fuel consumption.
He said: “The fuel subsidy was removed on May 29, 2023, by Mr President, and at that time, the poorest of 40 per cent was only getting 4 per cent of the value, and basically, they were not benefitting at all. So, it was going to be just a few.
“Another point that I think is important is that nobody knows the consumption in Nigeria of petroleum. We know we spend $600 million to import fuel every month but the issue here is that all the neighbouring countries are benefitting.
“So, we are buying not just for Nigeria, we are buying for countries to the east, almost as far as Central Africa. We are buying for countries to the north and we are buying for countries to the west. And so, we have to ask ourselves as Nigerians, how long do we want to do that and that is the key issue regarding the issue of petroleum pricing.”
The minister further clarified that the N570bn fund release to state governments was implemented in December 2023.
“This actually refers to a reimbursement that they received from December last year onwards and it was a reimbursement I think under the COVID financing protocol but the point is that the states have received more money. Mr President has been charged to ensure food production in the states,” he said.
He added that the federal government is looking at granting outright tax breaks to companies employing more staff.
He said the federal government is looking at granting more import duties suspension for certain goods in a bid to curb the rise in inflation.
Edun stated that the measures are part of the inflation reduction act to be signed by the President in a matter of weeks.
According to him, the fiscal measures are geared towards reducing the cost of production for businesses which has increased due to the weakness of the exchange rate and other policies introduced by the current administration.
“The inflation reduction act will now contain a range of import duties, exemptions, lowering of tariffs, and outright tax breaks for employment. If you employ more people, you will be given a tax break against it. So, a range of fiscal incentives will be laid out in an executive order which Mr President will in due course sign,” he stated.
FG has not approached CBN for Ways and Means advances
The minister also explained that they have not approached the central bank to request funds for paying government debts or salaries, known as Ways and Means. Instead, they have utilised market instruments to reduce what they owed, which is crucial for maintaining a strong economy.
He clarified that although the limit was raised to 10 per cent, it does not necessarily mean it will be used. This increase serves as a fail-safe, providing extra flexibility to cover payments if there is a timing gap between incoming revenue and expenses.
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