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NNPC Ltd Using Fuel Subsidy Savings To Stabilize Pump Prices – Bagudu

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Abubakar Bagudu, the Minister of Budget and National Planning, has clarified that the Nigerian National Petroleum CoCorporation Limited (NNPC Ltd) is utilizing savings from the fuel subsidy to keep the current pump price steady.

In an interview with Channels Television on Saturday, Bagudu noted that the 2024 budget does not include provisions for fuel subsidy.

He explained that since the removal of the fuel subsidy in June 2024, the savings have been insufficient to cover the cost of fuel imports, which has affected NNPCL’s ability to maintain energy security.

Read Also: JUST IN: President Tinubu To Address The Nation On August 4

This situation arises amid continued uncertainties regarding the government’s fuel subsidy payments, despite the subsidy’s removal in June 2023, which caused the pump price to surge from N238 to more than N600 per liter.

He said, “That is the issue. If NNPCL is supposed to contribute the most it cannot contribute because I have to use the money to import fuel. NNPCL is obligated to provide energy security. Consequently what they are to provide is affected,”

Bagudu also addressed the ongoing #EndBadGovernance protests, which call for the reinstatement of the fuel subsidy, and assured that the government is attentive to public concerns and implementing necessary reforms.

He also mentioned that he is unaware of any funds being remitted by NNPCL to the Federal Government, noting that this information would typically be known by the Accountant-General.

“I am not aware. Not necessarily, the Accountant-General should know. I will be surprised if they have done so. Let’s face it, you told somebody to import fuel and he says the cost of import is higher than the cost of the product being sold.

“We have the NNPCL, the Petroleum Industry Act makes its private liability company and at the same time mandated it with energy security. So only NNPCL can say this is the price fuel is arriving in Nigeria.

“And if it is selling below that price, then obviously it is an NNPCL issue. It means it is NNPCL that is taking the loss. We don’t have the provision for fuel subsidy. That is not to say that NNPCL is not suffering a loss as a result of the difference between the landing cost and what it is being sold, he added.

He maintained that “President Tinubu is listening to Nigerians so that we do things differently.

Energy

UNDC Assures on Readiness to Protect Oil, Gas Pipelines

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Pipeline contract

The Niger Delta Youths are primed to assume national responsibilities in critical areas of the economy by protecting vital oil and gas assets in the region.

The United Niger Delta Congress (UNDC) gave the assurance at a media briefing in Abuja, over the weekend, adding that the youths of Niger Delta were ready to work with the federal government in this regard.

The group maintained that youths in the region have shown that such responsibilities, including the security of pipelines, can be entrusted to them.

Speaking at the news conference, Niger Delta Youth activist, Mallam Julius Obi, said the Niger Delta is safer while the nation’s crude is flowing based on the fact that youths in the region are doing the job.

He said that being a youth should not be a disqualification from strategic national assignments but when matched with preparation and character, a national asset.

“We are calling on the federal government to note that Nigeria is full of young men and women who are prepared, disciplined and ready to carry out national responsibilities.

“We urge the federal government to keep opening the doors of strategic national service to young Nigerians who have earned trust the only way it can be earned, by delivery,” Obi said.

READ ALSO: JUST IN: Ex-Delta Governor Emmanuel Uduaghan Is Dead

The group commended President Bola Tinubu for sustaining the security reforms in the oil and gas industry and the the National Security Adviser (NSA), Mallam Nuhu Ribadu, for coordinating the protection of the nation’s pipelines, and the management of NNPCL for providing the enabling environment.

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Ambakederimo Questions NNPC Over Crude Oil Sales, Upfront Payments

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Joseph Ambakederimo, convener of the South-South Reawakening Group, has questioned the accountability of Nigeria’s crude oil forward sales, demanding clarification on the volume of crude lifted, outstanding balances and the use of upfront payments.

Speaking during an interview on Arise TV on Sunday, Ambakederimo expressed concern over the monitoring of crude oil transactions, questioning who was responsible for tracking deliveries and providing feedback on the arrangements.

“We don’t even know who is monitoring and giving us the feedback of the barrels of crude that have been lifted on forward sales basis,” he said.

SEE MORE: South-South Group Opposes Coastal Road Alignment With East-West Road

He challenged the Nigerian National Petroleum Company Limited (NNPC) to provide details of the transactions, including the quantity of crude already lifted, the outstanding balance and whether the agreed deliveries had been completed.

“Today, can we get this from NNPC? How much have they lifted? What is the balance remaining? Have they been completed?” he asked.

Ambakederimo also questioned how the money collected upfront under the arrangements had been spent, demanding an explanation of its use.

“That money that was collected upfront, what was the use of the money? Can you justify it?” he asked.

He argued that Nigeria should make better use of its natural resources to accelerate infrastructure development and improve living conditions.

Citing land reclamation projects in the United Arab Emirates, Ambakederimo said Nigeria could explore similar opportunities to create additional land for residential and other developments.

He recalled seeing a signpost while travelling from Dubai to Abu Dhabi describing a project to reclaim land from the sea, using the example to highlight the development possibilities he believes Nigeria could explore.

The South-South Reawakening Group convener also argued that Nigeria could reclaim land in suitable areas, provided environmental concerns were properly managed.

He called for the country to translate its natural resource wealth into infrastructure and improved living conditions, stressing the need for greater accountability in crude oil transactions.

 

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IEA Puts UAE’s Oil Output at 5.3mbpd for September

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Oil output from the United Arab Emirates (UAE) rose to record levels in September, underscoring its resilience even amidst the Middle East crises and liberation from OPEC+ limits.

The International Energy Agency (IEA) issued the data in its monthly report, adding that Abu Dhabi raised total oil production, including condensates, by 400,000 bpd to 5.3 MMbpd.

According to the IEA, the UAE bolstered crude output to more than 4.4 MMbpd, nearing its maximum capacity, which surpasses the previous highs for total oil in August, and crude oil in June.

READ ALSO: Africa’s Energy Security Conversations Pull Industry Executives Together

The UAE has been one of the most successful among regional producers in restoring flows through the Strait of Hormuz, by drawing on a fleet of tankers to discreetly shuttle cargoes through the chokepoint and then transfer them onto other vessels. In addition, the country’s decision to leave the Organization of the Petroleum Exporting Countries (OPEC) as of May has freed it from the group’s output caps, a source of frustration for years.

Its gains contributed to a wider recovery in flows from Gulf producers, which reached more than 75% of pre-war levels in September, led by Saudi Arabia, according to the Paris-based IEA.

Still, it’s unclear how far the regional rebound has withstood a new wave of Iranian attacks on tankers transiting Hormuz, and escalating hostilities carried out by the Houthi rebel faction in Yemen.

The UAE depleted its observable above-ground inventories at a record pace of more than 270,000 bpd in September, drawing them to an all-time low, according to the IEA.

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