Nigeria currently has four refineries, two located in Port Harcourt, and one each in Warri and Kaduna. Together, the facilities have a combined installed capacity of 445,000 barrels per day. The Port Harcourt refineries account for 210,000 barrels per day, while the Warri and Kaduna refineries have capacities of 125,000 and 110,000 barrels per day respectively.

Speaking on the sidelines of the 9th Nigeria International Energy Summit (NIES 2026), Ojulari said the decision to stop operations was taken because the refineries were no longer commercially viable in their current state.

According to him, the fact that they were crude oil supplies did not help the cause of the refineries as they were operating between 50 and 55 percent, which was not enough.

Ojulari noted that operating costs continued to rise, while the quality of refined products remained low, resulting in significant financial losses for the country.

“The first thing that became clear is that we were running at a monumental loss to Nigeria. We were just wasting money. So the first decision that I had to make was to stop the rot and first of all calibrate quickly, rebate to see what we can do.

“We are pumping cargo every month into the refineries. Utilisation of those cargoes was maybe like 55 and 50 percent. That cargo is valued a lot.

“We are spending a lot of money in the operations, a lot of money in the contractors, but if you then look at the net, we’re just leaking away a lot of value and there was no clarity on what’s the plan to turn that loss into positive,” Ojulari said.

Ojulari further disclosed that NNPC plans to open up parts of its equity to global investors willing to make long-term commitments, stressing that the move is aimed at ensuring sustainability rather than selling off national assets.

“We are not selling Nigeria. However, we are open to divesting some equity where necessary to ensure sustainability. Our goal is to establish a structure where the refinery can fund itself and operate as a proper commercial business,” he stated.

The funding, announced at the office of the Coordinating Minister of Health and Social Welfare, will support the continuous operation of the Linear Accelerator Radiotherapy Machine, one of the most sophisticated cancer-treatment systems available in the country.

The JV had donated the machine in 2019 as part of a comprehensive Corporate Social Responsibility package, which encompassed enhancing the entire ecosystem around cancer treatment, providing and installing necessary data and ancillary systems, and upskilling healthcare professionals to operate the sophisticated machinery.

A statement by the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, on Thursday, said the contribution became necessary to prevent treatment disruptions caused by funding gaps in the machine’s maintenance.

Speaking at the event, the Chief Upstream Investment Officer of NNPC Upstream Investment Management Services, Oluwaseyi Omotowa, revealed that the LINAC machine has already transformed cancer care at the hospital.

He listed the benefits to include treatment of over 2,000 patients, an 80 per cent reduction in treatment costs, and a sharp cut in therapy time from 12 minutes to just 2 minutes.

A total of 712 indigent patients have also received subsidised care ranging from 25 to 100 per cent.

Omotowa, represented by the Head of Business Services at NNPC-NUIMS, Nkechi Anaedobe, said sustained maintenance was essential to keep the machine operating at full capacity.

“Some of the benefits of the intervention include: treatment of over 2,000 patients, reduction of treatment cost by 80 per cent, reduction of therapy session time from 12 minutes to 2 minutes, subsidised care for indigent patients, with 712 of them receiving care at discounted rates ranging from 25 per cent to 100 per cent.

“The sustainability of such advanced medical technology hinges on regular maintenance, which presents a critical challenge due to funding constraints,” he said.

He stressed that the donation would ensure timely maintenance to prevent any delays in treatment; minimise downtime with guaranteed response times, ensuring the machine’s availability when needed most; compliance with medical standards and audits, safeguarding the quality of care provided; accurate calibration for effective treatment, which is vital for the precision required in radiotherapy, amongst others.

“This donation will ensure timely maintenance, minimise downtime, guarantee compliance with medical standards, and maintain precise calibration for effective treatment,” he said.

He noted that the JV remained committed to building long-term partnerships that would strengthen Nigeria’s healthcare system.

“As we move forward, the JV promises to continue to forge partnerships that not only address immediate healthcare needs but also build a robust foundation for future medical advancements. Together, we are not just treating illnesses; we are fostering a healthier, more resilient nation”, he added.

The Coordinating Minister of Health and Social Welfare, Ali Pate, praised the donation, describing it as a model corporate intervention that aligns with President Bola Tinubu’s renewed focus on health sector investment.

“This aligns perfectly with the broader efforts to revamp critical infrastructure aimed at improving the quality of healthcare for our people. Your track record is truly commendable, and this gesture underscores the intentionality behind driving impactful change.

“Quality healthcare comes at a cost, and with President Bola Ahmed Tinubu’s renewed focus on health sector investment, partnerships like this from forward-thinking private actors significantly strengthen the cause”, Pate said.

Also speaking, the Chief Medical Director of the National Hospital, Muhammad Raji Mahmud, said the support had significantly strengthened local capacity for cancer treatment and reduced reliance on medical tourism.

“We treat thousands of patients annually, and this support has been profound. It is a lifeline of hope for those who depend on our services,” he stated.

The Managing Director of Renaissance Africa Energy Company, Tony Attah, said the company views the funding not as charity but as a long-term investment in national wellbeing.

“This is a strategic investment in the resilience of our health systems and the well-being of Nigerians. When people are healthy, they can contribute meaningfully to society,” Attah said.

Cancer remains one of Nigeria’s leading causes of death, with over 100,000 new cases recorded annually. Limited access to radiotherapy equipment, with only a handful of LINAC machines existing nationwide, has long forced many patients to seek treatment abroad.

The NNPC/Renaissance LINAC machine, one of the few functioning units in the country, has been crucial in bridging that gap.

With the fresh $300,000 injection, the National Hospital is expected to sustain uninterrupted treatment cycles, a critical factor in improving survival rates among cancer patients.

The Secretary to the Government of the Federation, Mr Boss Mustapha, announced this on Tuesday in a statement titled ‘Suspension of Inauguration of Newly Constituted Board Of NNPC LTD.’

He revealed that the inauguration of the Board, initially scheduled to hold on Wednesday, was suspended indefinitely.

“President Muhammadu Buhari has directed the immediate suspension of the inauguration of the newly constituted Board of the Nigerian National Petroleum Company Limited (NNPC) scheduled for Wednesday 24th November 2021 until further notice,” said Mustapha.

“A new date for the inauguration of the Board will be announced in due course. We deeply regret inconveniences caused to members by this suspension, please.”

The suspension of the inauguration of the board comes two months after the NNPC Limited was incorporated in line with the directive of the President.

In a statement dated September 19, the President’s Special Adviser on Media and Publicity, Femi Adesina, explained that his principal gave the directive in his capacity as Minister of Petroleum Resources.

“This is in consonance with Section 53(1) of the Petroleum Industry Act (PIA) 2021, which requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of commencement of the Act, in consultation with the Minister of Finance on the nominal shares of the company,” he had said.

NNPC Group Managing Director, Mr Mele Kyari, was directed to take necessary steps to ensure that the incorporation of the NNPC Limited was consistent with the provisions of the PIA.

In line with the provisions of Section 59(2) of the PIA 2021, President Buhari also approved the appointment of the Board and Management of the NNPC Limited, with effect from the date of incorporation of the company.

Senator Ifeanyi Ararume was appointed as Chairman of the Board, while Kyari and Umar Ajiya were Chief Executive Officer and Chief Financial Officer respectively.

Other members included Dr Tajudeen Umar (North East), Mrs Lami Ahmed (North Central), Mr Mohammed Lawal (North West), Senator Margaret Okadigbo (South East), Mr Constance Marshal (South South), and Mr Pius Akinyelure (South West).

He was presented with the certificate at the State House on Friday by the Minister of State for Petroleum, Timipre Sylva, Registrar Corporate Affairs Commission, Alhaji Garba Abubakar and NNPC Group Managing Director, Mele Kyari.

Others include the Permanent Secretary, Ministry of Finance, Budget & National Planning Aliyu Ahmed; Chief of Staff to President Buhari, Ibrahim Gambari; Secretary to the Government of the Federation, Boss Mustapha; Permanent Secretary, Ministry of Petroleum Resources Dr. Nasir Sani Gwarzo, and NNPC CFO, Umar Isa Ajiya.

Following the signing of the Petroleum Industry Bill into law by President Muhammadu Buhari on August 17, Mr Sylva had said that the (NNPC) will become a commercial company within six months.

He said a transitional committee was already in place to incorporate NNPC Limited.

Consequently, all shares in NNPC Limited are expected to be vested in the government at incorporation and held by the Ministry of Finance.

Mr Sylva noted that although the new Petroleum Act has deregulated the oil sector, subsidy policies will remain in place till further notice.

Meanwhile, the minister on Thursday also said he was confident that the law will significantly boost Nigeria’s potential to achieve its oil production to four million barrels per day.

In addition, he said the passage of the PIA will also boost the nation’s oil reserves from 37 billion barrels to 40 billion barrels.

“The PIA 2021 will undoubtedly assist in harnessing Nigeria’s potential to achieve its oil production to four million barrels per day and oil reserves from 37 billion barrels to 40 billion barrels while also drawing on the country’s estimated 600 cubic ft of natural gas to provide clean and efficient energy,” Mr Sylva said at the SEPLAT Energy Summit which held in Abuja.

Former Nigerian oil minister Diezani Alison-Madueke implemented a shakedown scheme that required NNPC contractors to pay $300,000 per month as bribes for oil deals to support then-President Goodluck Jonathan’s fated reelection bid.

The Federal Bureau of Investigation said in court documents filed in the United States that Mrs Alison-Madueke accepted bribes in millions of dollars from oil contractors and cargoes beginning in 2014 and lasting for several months preceding the March 2015 polls.

The charges were part of an affidavit filed in the ongoing money laundering case against Anthony Stimler, a British national and former West African executive at energy trading giant Glencore.

American prosecutors, relying on FBI investigations, alleged in the court filings that Mr Stimler other local and international oil brokers paid bribes to Mrs Alison-Madueke in exchange for oil contracts under favourable terms. Mrs Alison-Madueke was believed to have sunk the bribes into Mr Jonathan’s reelection campaign, the charges said.

“On or about September 25, 2014, Co-conspirator 6 sent an email to STIMLER advising that Foreign Official 1 had stated that “all the customers of NNPC are giving in advance [$300,000] each month/cargo plus a certain amount which varies at the moment” in connection with a then-upcoming political election,” the document said.

Mrs. Alison-Madueke has since been identified by multiple sources including Bloomberg as the ‘Foreign Official 1’ referenced in the document. The bribery scheme was also aimed at providing more lucrative grades of oil to Glencore and other foreign multinationals with active contracts with the state-run NNPC at the time, court filings said.

NNPC under Mrs Alison-Madueke was also accused of receiving $200,000 on oil cargoes $50,000 around April 2015 that were slated to be delivered at the end of the year.

Mrs Alison-Madueke read but did not respond to multiple WhatsApp messages seeking comments from The Gazette for this story on Monday afternoon.

Source: People’s gazette

Femi Adesina, the Special Adviser to the President released a statement on Sunday, which reads:

“This is in consonance with Section 53(1) of the Petroleum Industry Act 2021, which requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of commencement of the Act in consultation with the Minister of Finance on the nominal shares of the Company.”

Mr Mele Kolo Kyari the Group Managing Director of the NNPC, has been directed to take necessary steps to ensure that the incorporation of the NNPC Limited is consistent with the provisions of the PIA 2021.

President Buhari, by the power vested in him under Section 59(2) of the PIA 2021, has approved the appointment of the Board and Management of the NNPC Limited, with effect from the date of incorporation of the Company.

Chairman of the Board is Senator Ifeanyi Ararume, while Mele Kolo Kyari and Umar I. Ajiya are Chief Executive Officer, and Chief Financial Officer, respectively. Other Board Members are;Chief Pius Akinyelure (South West), Dr Tajudeen Umar (North East), Mallam Mohammed Lawal (North West), Senator Margaret Chuba Okadigbo (South East), Barrister Constance Harry Marshal (South South), and Mrs Lami O. Ahmed (North Central).

This represents a 60.2 per cent reduction in directors’ fees. Typically, directors’ fees entail compensation for services as a member of the board of directors of the company, excluding reimbursement of expenses or other non-regular forms of compensation.
In all, the audited statement showed that in certain areas, the corporation did remarkably well in its avowed cost-cutting efforts during the year under review, while other administrative cost centres, gulped a substantial portion of the NNPC’s finances.

Following the economic downturn occasioned by the COVID-19 pandemic last year, which led to the fall in oil prices, the NNPC said it was embarking on the internal restructuring of its operations, including shaving off unnecessary spending as well as automation of its processes.

“The corporation saved a lot of cost through contract renegotiation by up to 30 per cent on the heels of the COVID-19 pandemic, introduction of technology that drastically cut travel cost through reduction in in-person meetings and the general automation of processes that enhanced efficiency across the group’s businesses,” Group Managing Director of the NNPC, Mallam Mele Kyari, said last week.

He was speaking on how the NNPC made its first gain in 44 years, amounting to N287 billion in 2020.
Under general administrative expenses, although the NNPC paid N6.2 billion for rent and rates as opposed to N5 billion in 2019, it however reduced repairs and maintenance costs from N38 billion to N26.6 billion.
Security expenses were reduced from N12.6 billion in 2019 to N12.3 billion, in 2020, while directors’ fees were reduced from N606 million to N214 million, a slump of about 60 per cent.

The NNPC board is led by the Minister of State, Petroleum Resources, Chief Timipre Sylva, who doubles as the alternate chairman, assisted by Senator Magnus Abe, Dr. Tajudeen Umaru, Dr. Steven Dike, Mrs. Lami Ahmed, Chief Pius Akinyelure, Mallam Mohammed Lawal and Secretary of the Board, Mrs. Hadiza Coomassie, as well as the Permanent Secretary, Ministry of Finance.
For general and administrative charges, the NNPC’s bank charges increased from N370 million in 2019 to N845 million in 2020, exchange loss was N72 million, advertisement and publicity gulped N5.3 billion, up from N1.2 billion in 2019.

In addition, employee benefits expenses cost increased from N357 billion to N397 billion, donations rose from N279 million to N3.63 billion, audit fees rose from N1.040 to N1.07 billion, while entertainment expenses were slashed from N8.3 billion to N1.6 billion in the 2020 financial year.

Between 2019 and 2020, legal and professional fees paid by the corporation reduced from N30 billion to N24 billion while printing and stationery came down from N1.6 billion to N976 million.
Staff training and recruitment cost slumped from N12.8 billion to N7.5 billion in the year under review and what the corporation termed management and facilitation fees increased from N1.3 billion to N5.6 billion.

However, the document revealed that transport and travelling gulped N13.5 billion in 2019 and N14.2 billion in 2020, a year marked by travel restrictions as countries embarked on lockdown due to the pandemic, even as postages and telephone expenses which consumed N8.5 billion in 2019, dropped to N5.6 billion in 2020.

Office running cost jumped from N11 million to N83 million, while under the subheading other expenses, which included Nigerian content expenses, business development expenses, decoration and beautification expenses, the amount spent was reduced from N53.2 billion to N26.6 billion.

Similarly, NNPC paid N94 billion as pensions in 2020, up from N90 billion in 2019 and gratuity costs decreased from N51 billion to N46 billion in 2020. Cumulatively, the NNPC spent N678.171 on general and administrative expenses, a reduction from N695.949 in 2019.

The AFS stated that the share of loss of NNPC in Nikorma Transport and West Africa LPG, the corporation’s shipping and transportation company engaged in transportation of energy products, was not recognised since the accumulated share of loss was higher than the initial investment.

In terms of monies from contracts, revenue from crude oil sales was N828 billion in 2020 as opposed to N1.0 trillion in 2019; revenue from petroleum product sales was N2.2 trillion in 2020, from a high of N2.9 trillion in 2019, sales of natural gas increased from N489 billion in 2019 to N524 billion in 2020 while monies from services rendered decreased from N144 billion to N89 billion in 2019 and 2020 respectively.
In all, group revenues from the above items for the group, decreased from N4.6 trillion in 2019 to N3.7 trillion in 2020, according to the document.

On a sectorial basis, Nigerian Gas Company (NGC), one of the NNPC’s subsidiaries established in 1988, spent N31.88bn on salaries, welfare and other personnel expenses in 2020 and generated N109.1 billion in 2020, representing a 21 per cent increase from N90.2 billion in 2019.
The company’s profit before tax also increased by 19 per cent from N54.7 billion in 2019 to N65.1 billion in 2020, while profit after tax also rose by 20 per cent to N52.7 billion from N43.7 billion in the preceding year.

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, disclosed this on Wednesday in Abuja.

He made the disclosure when he appeared before members of the House of Representatives Committee on Finance during a hearing on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).

Representatives of the Fiscal Responsibility Commission (FRC) present at the hearing informed the lawmakers that the NNPC has been declaring losses since 2018, but a substantial surplus in 2019.

While responding to questions on the Dangote Refinery, the NNPC chief justified the Federal government’s equity share in the plant.

He explained that taking equity in Dangote Refinery was well thought out, saying the country now has a venture that would ensure the production of millions of litres of petrol in the country.

“Our decision to take equity in the Dangote Refinery was a very calculated and conscious decision,” Kyari said. “Today, we import 100 per cent of our petroleum products into this country.

“You now have a venture that will produce close to 50 million litres of petroleum product in this country where energy is an issue in every country, including the United States of America; no country will allow any venture of this nature to exist without having a seat on the board of the company.”

The NNPC chief disclosed that the corporation borrowed funds from the Afreximbank to pay for the stake in Dangote Refinery.

Allaying fears that this would affect the nation’s assets, he stated that the government has not abandoned the country’s refineries and was in the process of rehabilitating them.

Kyari also briefed the lawmakers on the issue of smuggling, as well as the committee set up and the recommendations that the NNPC should set up petrol stations in neighbouring countries to address the problem.

He believes this is not the solution, as no smuggler will buy at above Nigeria’s official price.

The NNPC chief said the corporation was engaging with the government of the Niger Republic on the establishment of fuel stations, but he was mindful that this may be a bad business and ultimately not a solution to the problem of smuggling petroleum products.

Responding to a question about trucks smuggling fuel out of the country daily, he insisted that everyone on the value chain had been compromised.

Source: Channels tv

The GMD said the percentage of the Corporation’s profit was a very small amount compared to the 3 per cent of its operating expenditure allocated to the host communities.

Kyari made the assertion when he appeared on the Nigerian Television Authority morning show monitored by the Tribune Online.

He said although the percentage appears huge, this does not reflect the desires realities hence the need to look deeper.

“Maybe we have not communicated enough. If we have, some of these misgivings would not have come up in the first instance. I know there were engagements but maybe they weren’t effective because when you say 30 per cent of NNPC profit, it is a very small number.

“The percentage appear very outrageous. 30 per cent of what? That Is where nobody has sat down to the lookout. When you say 30 per cent, it probably comes down to less than $400million per annum and then the other side of it is that 30 per cent is a big number but when it comes to the host community funds, you have 3 per cent of our operating expenses.

“We spent about $16billion in fiscal 2020 in our operating expenses across the sector so when you take 3percent of that it becomes above $500million far above the budget of NDDC. You can see that the percentages do not reflect the realities that we intend to achieve by this. And for-profit oil, for instance, there are uncertainties. If you do not make a profit, it is zero. But we must spend money to do operating expenses but we are very sure that the provisions made for the host communities would be implemented.”

He also dispelled misconceptions that the frontier basin falls in the North.

His words:” Frontier is a technical word. It means where you have not found oil but there is a potential for finding oil, this spreads across the country from the Chad basin, Sokoto basin, Bida basin, the Anambra platform, Calabar embankment including the Niger Delta which have not been explored so every money you have, you have to put them this.

” What is wrong with finding more oil? and, wherever you find it, it becomes the resource of the government and therefore nobody losses from this participation.”

Source: Nigerian Tribune