Subsidies: Company Only Taking Care Of PMS Shortfalls-NNPCL
*Working With Relevant Stakeholders To Address Fuel Scarcity-EVP, Downstream
*There’s No Supply Anywhere- IPMAN
The Nigerian National Petroleum Company Limited (NNPCL) has addressed controversies surrounding reports alleging the re-introduction of petrol subsidies.
A statement released on Tuesday by its Chief Corporate Communications Officer, Olufemi Soneye in Abuja, debunked claims on subsidy payment, adding that the company was “only taking care of PMS importation shortfall” between it and the Federation.
According to the statement, the company also released its 2023 Audited Financial Statement (AFS), declaring a net profit of ₦3.297tn at the close of the financial year which ended in December 2023, an increase of over ₦700bn (28 per cent) when compared to the 2022 profit of ₦2.548tn.
The Chief Financial Officer of the Company, Umar Ajiya said the release of the AFS is a testament to the Company’s commitment to transparency and accountability.
“Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya stated.
Ajiya added that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the Company’s shareholders.
He also said that NNPC Ltd. will announce its Initial Public offer (IPO) once the shareholders and board make a decision.
Speaking earlier at a press conference on Monday, the Chairman of the NNPC Ltd. Board, Chief Pius Akinyelure said that the excellent performance came as the fruit of the PIA 2021, and the commitment of the Board, Management and staff of the company.
Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1trn in line with PIA 2021 provisions.
In her remarks at the briefing, the Executive Vice President, Upstream, Oritsemeyiwa Eyesan said with improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism, NNPC Ltd. is targeting two million barrels per day crude oil production by the end of the year.
On the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Dapo Segun appealed for understanding from Nigerians, saying that the company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges.
Fuel Scarcity: There’s No Supply Anywhere- IPMAN
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said its members currently suffer a supply shortage of Premium Motor Spirit otherwise known as petrol in the wake of scarcity of products sweeping across the country.
The association currently has more than 3000 members controlling the largest share of filling stations across the country.
Chairman Independent Petroleum Marketers Association of Nigeria (IPMAN), Ore Depot, Engr Shina Amoo who was a guest on Channels Television’s Morning Brief on Tuesday, said the Nigerian National Petroleum Company Limited (NNPCL) currently the sole importer of petroleum products, has failed to supply its members with adequate products capable of catering for the activities of its members in the last three years.
He said, “There is no supply anywhere. For now, the only supply available is not well distributed. We have been making noise about the distribution pattern long ago. We had a type of arrangement before now, where we used to enjoy 70/30 supply based on our strength. If you go to areas like villages, and urban areas, you will see lots of independent marketers where you would not find any major or semi-major marketers.
“But now we can’t even talk of IPMAN when it comes to supply. We are not even being considered when it comes to supply. Go around, if you see 50 petrol stations, and you take a random sample, you will discover that only between three to eight would be selling products. And these products we are selling, we are getting them at premium prices. Virtually all the depots we buy from sell to us at prices they want to sell from the neighbourhood of between ₦750 to ₦850.
“All the private depots have been selling to us at the prices they want for years now instead of getting products at ₦560 from NNPC. None of us have been able to get products from NNPC for over 2-3 years. Instead of getting from NNPC directly, when you pay your draft today, you will end up picking your product between three to five months later. So time would have eroded the profit by the time you get your product.
“So we now prefer to line up at any private depots. I don’t want to mention their names. They sell products to independent marketers at premium of like ₦850, ₦800, ₦870 per litre.
“Before now, when you make payment to the NNPC- like in the Ore depot, we make payment to NNPC, and we have to wait for a week before loading. But today, when you make payments, there will be long procedures, and bureaucracy. Before you now access the products takes about four months. But now, we go to depots close to us in Delta State to source for products.
“After making payment for the product maybe at ₦800 per litre, you will pay for transportation of about ₦22 per litre to land at Akure. That is what we are facing right now.
“NNPC supplies the depots. I mentioned something earlier about the distribution pattern. The year NNPC abandoned the distribution pattern was when they stopped being sincere. They stopped supplying IPMAN, and would rather supply DAPPMAN, MEMAN. And the volume they give us cannot handle IPMAN’s activities.”
He said the major problem is fuel subsidies, and NNPCL as the sole importer.
Amoo spoke to the rise in prices of products at the depots after the removal of subsidies, saying if corruption was removed from the downstream system, prices of products would be forced to drop.
