Category: Nigeria

Nigeria’s crude oil production output for May, increased by 230,900 barrels per day (bpd), according to the monthly oil market report of the Organisation of Petroleum Exporting Countries (OPEC) released on Wednesday. Specifically, the country’s production output, based on direct communication, rose from 1.650 million barrels per day in April to 1.881 million bpd in May. The country’s crude oil production output for April had earlier increased by 19,000 bpd, while the figure based on secondary sources, put the rise in April at 1.886 bpd from 1.867 bpd recorded in March According to the report, production by member countries in May rose by 24,000 barrels per day (bpd), due to increases in Iraq and Angola and record output in top exporter Saudi Arabia. OPEC said it expected that the world’s oversupply of crude oil to ease over the coming quarters. "The projections for market fundamentals indicate that the current […]

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Abuja — The Nigerian Extractive Industries Transparency Initiative (NEITI) yesterday called on President Muhammadu Buhari to consider making it a priority of his government to recover the $18.1 billion unremitted oil and gas funds from oil and gas companies operating in Nigeria. NEITI said that over $7.5 billion, which represents underpayments, under-assessment of taxes, royalties and rents as revealed by several independent audit reports of the agency, as well as $11.6 billion which represents outstanding total dividends arising from loans and interest repayments from the federal government’s investment in the Nigerian Liquefied Natural Gas (NLNG) company were still outstanding. The Executive Secretary of NEITI, Mrs. Zainab Ahmed, stated in Abuja that while these monies were still outstanding, issues around their recoveries had not been adequately addressed in the past. A statement from the agency’s head of communications, Ogbonnaya Orji, disclosed that NEITI had made this call to Buhari at […]

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There are indications that fuel marketers, may have agreed to distribute fuel brought in by the Nigerian National Petroleum Company, NNPC, after talking with the new administration last weekend. This is as many petrol stations in Lagos still sell above the official pump price of N87, as other cities are still suffering from shortages despite the end of a fuel distribution strike. After the negotiation last weekend, fuel is expected to become available not just at NNPC retail stations but those owned by major and independent marketers to reduce the queues of double-parked cars. Nigeria now depends wholly on swapping its crude for fuel imports, Obafemi Olawore, Executive Secretary for Major Marketers Association of Nigeria (MOMAN) said, as those waiting for subsidy payments are unable to secure commercial loans to bring in fresh supplies."At the moment we are unable to import because we don’t have the support from the […]

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Abuja — The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on President Muhamadu Buhari to increase local refining capacity before embarking on any deregulation process This is contained in a statement on Tuesday by PENGASSAN National Public Relations Officer, Mr Emmanuel Ojugbana. The union called on the president to ensure that the focus of deregulation policy was based on local production rather than importation. It said that if local refining was not increased to meet local demand for petroleum products, especially the premium motor spirit (petrol), removing subsidy on petroleum products would bring more hardship on Nigeria. It stated that removing subsidy while the country depended on importation of refined products would make prices of refined products to be out of the reach of the masses and would cause inflation. It said that importation of refined petroleum products was a major drain on the […]

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Abuja — Despite the assurances by stakeholders in the petroleum sector on the resolution of the crisis in the sector, fuel scarcity has persisted in Abuja with widespread sharp practices recorded across almost all the petrol stations. Of note is the Nigerian National Petroleum Corporation, NNPC, mega stations along the Kubwa Expressway, where some officials of the outlet connived with some policemen and security agents to frustrate motorists and heighten the suffering of Nigerians. Specifically, when Vanguard visited the petrol station, some policemen stationed outside the entrance were collecting N1,000 from some motorists and allowing them to enter into the petrol station through the exit gate, thereby, leaving other motorists who had queued for hours stranded. Only 9 out of 40 pumps dispensing Also, of the over 40 pumps in the station, only about nine were dispensing to motorists. Two of the pumps were selling to the hundreds of […]

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has appealed to the Inspector-General of Police to provide adequate protection for its members, to enable them sell fuel for 24 hours. Chief Chinedu Okoronkwo, IPMAN’s President, made the appeal in an interview with the News Agency of Nigeria (NAN) on Monday in Abuja. Okoronkwo said the appeal had become necessary following the unions directive to its members to sell fuel for 24 hours to clear the queues that had persisted across the country. The president, who expressed concern over the queues, said the measure was to ease the scarcity and make the product available to motorists. "We were not part of the strike that gave birth to the scarcity but we have taken the measure because when the system is burnt all other parts of the body will be affected. "Major marketers, transporters, owners and drivers, in one way or […]

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ABUJA, Nigeria—Islamist terror group Boko Haram conducted a three-day spree of assaults that killed at least 42 people in northeast Nigeria, marking a grim beginning to the tenure of President Muhammadu Buhari. The attacks began on Friday, when a bomb killed 10 people at a wedding in the town of Hawul, two residents said. The blast took place around the time Mr. Buhari was reciting his oath of office in the capital , Abuja, about 400 miles away. “Some of us managed to escape,” said Haruna Musa, who was at the wedding. The next day, a suicide bomber struck a market in Maiduguri, the largest city in northeast Nigeria, killing 16 people, a member of an anti-Boko Haram militia said. Maiduguri has been the focus of Boko Haram’s terror campaign over the past six years, and Mr. Buhari on Friday said Nigeria’s top generals will be relocated there to […]

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Nigerians queue to buy fuel at Mobil filling station in Abuja. Photographer: Stringer/Anadolu Agency/Getty Images Crippling fuel shortages, power cuts, slowing economic growth and Islamist militants wreaking havoc. Muhammadu Buhari is taking on a tough job when he’s sworn in as Nigeria’s president on Friday. Former military ruler Buhari, 72, swept incumbent Goodluck Jonathan from office in March elections by pledging to end endemic corruption and Boko Haram’s rebellion in the north. His stewardship of Africa’s biggest oil producer, this time as elected president, may depend on the price of crude, which supplies the government with more than two-thirds of its income. “If you look at expectation and look at funding, there’s quite a gap,” Olusegun Sotola, a research fellow at the Lagos-based Initiative for Public Policy Analysis, said by phone. “Buhari is going to be running a government without the necessary funding, which is a big problem because […]

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Lagos — As the world awaits the inauguration of Muhammadu Buhari as the President of Nigeria, controversy over the contentious fuel subsidy claims has taken a centre stage following the fuel scarcity that almost brought the country to its knees. This is coming as the Federal Government is said to have spent more than N6 trillion from 2006 to 2014 on fuel subsidies. Vanguard can now reveal the amount spent on subsidy since 2006. The table below shows the amount spent on subsidy from 2006: *2006 – N151.9 billion; *2007- N188 billion; *2008 – N256.3billion (January to July); *2009 – N421.5billion; *2010 – N673 billion; *2011 – (N1.3 trillion)revised to N2.19 trillion; *2012 – N888 billion + N161.6 billion supplementary *2013 – N971 billion; and, *2014 – N971.1 billion Although figures are now being bandied about by respective groups, but former President Olusegun Obasanjo reintroduced subsidy on fuel as […]

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The Associated Press By MICHELLE FAUL, Associated Press LAGOS, Nigeria (AP) — Nigeria’s outgoing government has agreed to pay a debt of $800 million to resolve a months-long fuel crisis crippling the economy days before the inauguration of a new president in the country, oil suppliers said Wednesday. Chaos reigned Tuesday at Nigerian airports where most flights were cancelled. Foreign airlines flew to other African countries to refuel. Cars and other vehicles formed queues two and three deep blocking roads for more than 2 kilometers (a mile) outside of gas stations. Attendants turned away people carrying yellow cans to buy kerosene for cooking. There was none. Banks started closing at lunchtime on Monday and cell phone companies warned they would be forced to shut down service countrywide for lack of diesel to fuel generators. Nigeria — Africa’s biggest oil producer— generates more than 2 million barrels of petroleum a […]

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This is extraordinary. Remember all those dire things that were supposed to happen when Peak Oil hit? All the stuff in The Long Emrgency? Cars queuing up for miles to buy petrol, public transportation jacking up rates, cell phones not working, banks closing their doors, planes grounded for lack of fuel, supermarkets stripped bare, scalpers selling gas in jerry-cans, factories shutting down, stations going off the air, people losing their jobs, political disorder, human sacrifice, dogs and cats living together, mass hysteria… Turns out all of it is happening…In Nigeria: Nigeria is facing a prolonged fuel-supply crisis that is taking a severe toll on the country’s economy, living conditions, and basic services, reports say. The shortage in Africa’s leading oil producer has forced an increasing number of drivers in Lagos to stop using their personal vehicles, but prices for commuters on public transport have more than doubled. Black market […]

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Hawkers sell gasoline in Abuja, Nigeria, on Monday. The country has been experiencing a severe scarcity of fuel. (Deji Yake / European Pressphoto Agency) Nigeria’s gasoline scarcity was resolved Monday, but only after the shortages had damaged the economy, canceled or diverted commercial flights, shut down radio stations and put mobile phone networks at risk. With incoming President Muhammadu Buhari set to be sworn in Friday, the opposition All Progressives Congress accused outgoing President Goodluck Jonathan of sabotaging the new administration. Buhari faces high expectations and myriad problems, including a government financial crisis partly caused by the fall in oil prices, a battle against the militant group Boko Haram in the country’s northeast, electricity outages, widespread corruption and poor infrastructure. In the final days of Jonathan’s term, the country has also faced dire gasoline shortages and millions in unpaid wages of government workers. The gasoline shortage began before the March election that […]

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Nigerian oil worker unions at state-owned Nigerian National Petroleum Corporation and Nigerian Petroleum Development Company have called off a strike that shut about 100,000 b/d of production for a week, union and company officials said late Monday. The Pengassan and Nupeng unions started the strike May 18 to protest the transfer by the government of the operatorship of onshore oil block OML 42, sold by Shell to local firm Neconde. "Since the strike has been called off, other necessary things will follow," a NPDC spokesman said, referring to the restart of oil production at shut fields, without giving further details. Article continues below… For over 100 years Platts has been at the forefront of pricing and news in the energy markets. Today, we publish the essential information that you need to navigate the rapidly evolving commodity markets that Africa plays a key part in. Here you will find a […]

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Nigeria’s energy crisis deteriorated Monday, as the Nigerian Electricity Regulatory Commission (NERC), the government agency responsible for regulating operations in the electricity sector, reported that only five of the country’ 23 power plants are currently functional. By implication, Nigerians would now have to contend with a biting fuel supply crisis, which has almost grounded the economy for months, and lack of electricity to power. On Friday, the Permanent Secretary, Federal Ministry of Power, Godknows Igali, had during a meeting with outgoing Vice-President, Namadi Sambo, in Abuja raised the alarm over the epileptic supply of electricity across the country. Mr. Igali, in the company of the Minister of Power, Chinedu Nebo, said the country’s dwindling electricity supply took a further nosedive to unprecedented all-time low level of 1,327 megawatts (MW) from the 4,800 MW level attained recently. He attributed the damning situation to the epileptic performance of most key power […]

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By Abel Orukpe, Tunde Opeseitan, Emma Nzomiwu, Chukwujekwu Ilozue And Temidayo Akinsuyi The lingering fuel crises caused by the refusal of oil marketers to lift and supply petroleum products until their demand for payment of oil subsidy is met by the federal government, appear to have affected virtually every sector of the Nigerian economy. Judicial activities at the various courts in Lagos were halted as those who managed to sit adjourned abruptly. In Enugu State, all the roads were deserted as the exorbitant cost of petrol forced motorists who could not afford to pay N200 per litre to either abandon their vehicles and trek or use commercial means of transportation. Also in Anambra State, business and social activities were almost shut down due to the crises. The price of petrol as at yesterday is said to have risen to between N180 to N250 per litre. Unfortunately, Mega stations from […]

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By Drew Hinshaw And Patrick McGroarty LAGOS, Nigeria–The most oil-rich nation in Africa nearly ran out of gas this week. Airlines grounded flights because they couldn’t find jet fuel in recent days, and gas stations nearly all closed down. The companies licensed to restock Nigeria’s fuel depots refused to do so, saying the government here–defeated in an election in March–owed them more than $1 billion. The result was the worst fuel shortage here since a 1993 military coup, one that could echo for weeks in Africa’s top economy. Television stations, banks, and cellphone towers all went offline. Doctors worried their emergency rooms would go dark, and several soldiers in the north said they considered halting their pursuit of Boko Haram and the women the Islamist terrorist group has kidnapped. Late Monday, the shortage ended, when Nigeria’s government agreed to look into the debts it owed. On Tuesday, gas stations […]

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The senate has intervened in the ongoing fuel crisis in the country leading to a commitment from all critical stakeholders to pave way for the lifting of fuel in the next six hours. This resolution was reached at the Senate inquest into the fuel crisis organised by the Senate Joint Committee on Petroleum Upstream and Downstream. LEADERSHIP recalls that sequel to a resolution of the Senate last week mandating its committees on petroleum resources (Upstream and Downstream) to investigate the persistent fuel scarcity in the country, the committees summoned the coordinating minister for the economy and finance minister, Ngozi Okonjo-Iweala, and her petroleum ministry counterpart, Diezani Alison-Madueke, over the scarcity. Also invited by the joint committee, the group managing director of the NNPC, managing director, PPMC, director DPR, PPPRA, Major Oil Marketers Association of Nigeria (MOMAN) , Independent Petroleum Marketers Association of Nigeria (IPMAN) and National Association of Road […]

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By Obafemi Oredein Special to DOW JONES NEWSWIRES IBADAN, Nigeria–A severe shortage of petroleum products in Nigeria could shutdown the country’s cocoa industry, officials, traders and exporters said Monday. The nationwide shortage, now entering its fourth week, has affected the operations of commercial banks, telecommunication companies and the other key sectors of the economy. Commercial banks in Nigeria normally close at 4 pm local time, but a shortage of gasoline and diesel used to run generators is forcing them to shut earlier than normal. "If banks close down now, cocoa business is off," Monday Awulu, a senior official at Saro Agro Allied Ltd., a major cocoa exporting company in Nigeria, told Dow Jones Newswires. He said the severe petrol shortage didn’t have a major impact on the movement of cocoa, "but if diesel becomes difficult then cocoa movement becomes difficult as most of the vehicles we use are diesel-powered." […]

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A man carries jerrycans to search for fuel in Lagos, Nigeria, on May 21. ENLARGE Photo: Agence France-Presse/Getty Images LAGOS, Nigeria—Nigerian airlines grounded flights on Saturday and radio stations were silenced, as a monthslong fuel shortage aggravated by striking oil-tanker drivers worsened in Africa’s biggest oil producer. Vehicles also were grounded. Normally bustling roads in Lagos, a metropolis of 20 million, were half-empty and gas stations closed on Saturday. One station owner said he had fuel, but strikers were threatening to set fire to any stations selling it. He insisted on anonymity for fear of reprisals. Police were arresting black marketers selling fuel at roadsides at four times the regulated 87 naira (40 cents) a liter. Meanwhile, radio stations went dead on Saturday night, including Classic FM, The Beat and City FM, hit by frequent power outages and out of diesel fuel for generators. Confusion reigned at bus stations […]

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Nigerians are sitting in long lines to purchase fuel for their cars and generators at high prices as the energy crisis in the country worsens. By Benrard Tolani Dada, Isaiah Benjamin, Juliet Alohan, Nnamdi Mbawike, Osa Okhomina The strike embarked upon by workers in the oil sector under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG) over federal government’s transfer of the operatorship of Oil Mining Lease (OML) 42 to indigenous firms have resulted in a near collapse of business and commercial activities nationwide. The development is further compounded by the ongoing industrial action also embarked upon by the National Association of Road Transport Owners (NARTO) and the Petroleum Tanker Drivers (PTD) who have refused to lift petroleum products from the coastal depots in protest of the huge amounts owed them by […]

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APC Candidate, Muhammadu Buhari. By Levinus Nwabughiogu, Johnbosco Agbakwuru & Joseph Erunke Abuja — The president-elect, General Mohammadu Buhari, yesterday, lamented that the out-going administration of President Goodluck Jonathan has failed to provide the in-coming government with all the necessary information needed for a smooth take-off next week, particularly on how to tackle the current fuel scarcity in the country. The President-elect spoke on a day the Senate directed its committees on Petroleum Resources ( Upstream and Downstream ) to immediately commence investigation into the remote and immediate causes of the fuel crisis in the country. The Senate directive was sequel to the motion by the Deputy Senate Majority Leader, Senator Abdul Ningi, who had called on the lawmakers to pay serious attention to the fuel crisis that had created great hardship for Nigerians at the moment. Senator Ningi wondered why a country that has abundant oil resources should […]

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Fuel shortage causing long lines in Nigeria 01:56 Lagos, Nigeria (CNN)Nigeria is Africa’s largest oil producer, but fuel shortages have paralyzed the country that just a year ago was declared Africa’s largest economy. At one gas station in Lagos, crowds push at the gates waving empty jerry cans. Cars queue for a kilometre down the road creating gridlock. Similar scenes are being repeated at almost every petrol station across Nigeria. "I’ve been here since 4 a.m. It’s not good," says local resident Abdulsalam Mohammed as he finally drives his car to the petrol pump. "Now it’s almost 3 p.m. Nobody can work today." "We are an oil producing country, very rich, a giant in Africa," says Seun Olewale, another driver who is carrying empty fuel cans. "But the experience we are getting now is so hard." The shortages have been going on since March despite the fact that, according […]

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Business leaders in Africa’s leading oil producer Nigeria on Thursday warned that jobs could be at risk, as a weeks-long fuel crisis showed no signs of easing. Long queues have been seen for days outside filling stations, flights have been grounded and generators that kick in when the country’s patchy public electricity supply goes off have run silent, leaving many without power. "Many companies have shut down because they cannot get diesel to fuel their plants," Musa Yusuf, of the Lagos Chamber of Commerce and Industry, told AFP. "Unless the situation is redressed, companies may be forced to lay off (staff)." Addressing the crisis looks likely to be the first major task for incoming president Muhammadu Buhari, who takes office next Friday. – Empty tanks – Nigerian motorists have borne the brunt of the shortages, with long queues at petrol stations in major cities such as Lagos, the capital […]

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The Trans Nigeria Pipeline that carries Nigeria’s Bonny Light crude oil to an export terminal has been shut down since May 12, a Shell spokeswoman said on Thursday. While neither the reason for the shut down nor its expected duration have been disclosed as at the time of filing this report, traders affirmed that Bonny Light loadings have been delayed by up to four days over the past week. This development is taking place about a week after the Anglo-Dutch oil giant, Shell, declared force majeure on exports of Nigeria’s Forcados crude oil stream. "Force majeure" is a legal term releasing a company from contractual obligations when faced with circumstances beyond its control. It declared force majeure on the evening on May 5 following "a series of leaks" in the Trans Forcados pipeline that brings the oil to the export terminal. The pipeline itself is operated by the Nigerian […]

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A former governor of the Central Bank of Nigeria (CBN), Lamido Sanusi, has reacted to the recent audit report by PricewaterhouseCoopers on the alleged missing $20 billion oil money, saying the report has confirmed in the first instance that at least $18.5 billion was indeed missing. Mr. Sanusi faulted the petroleum minister, Diezani Alison-Madueke, who said the report had exonerated the Nigerian National Petroleum Corporation, NNPC, earlier accused of diverting the money. In an opinion article published by the Financial Times of London, Mr. Sanusi, who is now the Emir of Kano, said the argument that the outstanding amount was used by the NNPC for apparently unlawful purposes such as kerosene subsidy, does not dismiss the notion that the NNPC illegally withheld billions of oil dollars from the government. "Contrary to the claims of petroleum minister Diezani Alison-Madueke, the audit report does not exonerate the NNPC. It establishes that […]

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Crude oil prices have continued to be on an upward swing in the last few days, signalling hope of better economic fortunes for Nigeria and other Organisation of Petroleum Exporting Countries (OPEC). Brent crude futures rose towards $66 yesterday, which is far above the approved $53 per barrel benchmark for crude oil in Nigeria’s 2015 budget. The price of OPEC basket of 12 crudes stood at $62.03 a barrel on Monday, while it recorded $62.44 the previous Friday. June Brent crude was up 88 cents at $65.79 (£42.02) a barrel by 14.52 London time, easing back from an intraday high of $66.45 a barrel. June West Texas Intermediate (WTI) rose 58 cents to $59.83 a barrel, after touching $60.55 a barrel earlier in the day. Meanwhile, OPEC has warned against price speculators, accusing them of contributing to the uncertainty in crude oil prices. Speaking on the recent uncertainty in […]

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LAGOS, Nigeria — As the Nigerian military battled Boko Haram over the past year, scores of soldiers made a decision that would put their lives in grave danger — they refused to fight. It wasn’t for lack of bravery, they said. It was for lack of weapons. At least 66 of the soldiers have been found guilty of mutiny and sentenced to death by firing squad. Dozens more remain in detention, awaiting trial. The Nigerian government describes them as cowards. Their supporters say they are scapegoats. “They joined the army to fight, not to commit suicide,” said Femi Falana, an attorney for 59 of the soldiers. The cases have opened a rare window into the Nigerian military, once one of the strongest in Africa but now struggling to combat an insurgency of several thousand fighters. Rebuilding the army is a major challenge for Muhammadu Buhari, who assumes the presidency […]

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* Queues for petrol worsen across the country * Importers hold back over subsidy fears * Buhari government faces backlog of payments By Libby George and Julia Payne LONDON/ABUJA, May 8 (Reuters) – Fuel shortages are set to worsen in Nigeria as international traders and local marketers back away from imports over fears that the cash-strapped new government will halt costly subsidy payments. Already, lines at petrol stations in the major cities are blocking traffic as Africa’s largest crude oil exporter runs out of domestic fuels. The shortage in some rural areas is even more acute due to a payment battle between independent retailers and the government. "We have exhausted our stocks," said Stanley Yakubu, a worker at the Forte Filling Station in the Maitama neighborhood of Abuja. "We thought government and marketers have resolved their issues but supply is very slow in coming." Traders said new bookings for […]

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Africa’s richest economy is borrowing money to pay salaries as it struggles through a "difficult cash crunch" brought on by halved oil prices, Nigeria’s finance minister revealed. The news comes as Nigeria prepares to welcome a new government at the end of this month and the country’s naira currency remains in a slump, hovering between 180 and 220 to the US dollar. It was trading at 160 a few months ago. Minister Ngozi Okonjo-Iweala tried to be upbeat in a speech on Tuesday after lawmakers approved the 2015 budget – revised three times because of slashed oil prices that provide 80 percent of revenue for the government of Africa’s biggest petroleum producer. She said "revenue challenges" had prohibited the release of any funds for capital expenditure this year but that food prices and single-digit inflation remained quite stable. And she said the economy still was on course to grow […]

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Despite the claim by the Federal Government that N156 billion was released on Thursday to oil marketers to facilitate the quick resolution of the current fuel crisis, the National Association of Road Transport Owners (NARTO), has said normal lifting of fuel will not resume till their members’ accounts are duly credited by the banks. As at 4.35 p.m. on Thursday, the Executive Secretary, Depot & Petroleum Products Marketers Association(DAPPMA), Odufemi Adewole, told PREMIUM TIMES in a telephone interview that none of its members and their counterparts in the Major Oil Marketers Association(MOMAN), had confirmed receiving any payment. "The money government said it was paying to marketers has not yet hit our accounts. So, there is little we can do about the situation," Mr, Adewole said. "The money the Minister of Finance promised to pay us last February did not get into our hands till about four or five weeks […]

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The much anticipated report of the forensic audit of the Nigerian National Petroleum Corporation, NNPC, operations on the missing $20 billion oil money may not amount to much after all, as PricewaterhouseCoopers Limited, the audit firm that conducted the probe, has said it cannot vouch for the integrity of its findings. In a startling introductory letter addressed to Nigeria’s Auditor General, the audit firm said findings in its 199-page report were limited to available information and did not constitute a review in accordance with generally accepted standards. "The procedures we performed did not constitute an examination or a review in accordance with generally accepted auditing standards or attestation standards," the firm said. "Accordingly, we provide no opinion, attestation or other form of assurance with respect to our work or the information upon which our work was based," it added. The report and all accompanying deliverables, the company pointed out, […]

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An audit ordered by Nigeria’s outgoing president was published on Monday, seeking to explain why $19 billion in oil revenue never made it into the government’s bank accounts. The report caps a year-long political debate over how Africa’s top oil exporter manages its revenue, a debate that help lead to President Goodluck Jonathan’s ouster last month. PricewaterhouseCoopers Ltd., which conducted the audit, said Nigeria’s state-owned oil company, Nigerian National Petroleum Corp., deposited $19 billion less than expected from January 2012 to July 2013. According to the report, $10 billion went to kerosene and motor fuel subsidies. The remainder went to operations itemized by the audit, such as $2 billion spent financing the growing debt of the company. The oil company spends so much money on fuel subsidies and other operations that it may operate close to a loss this year, barring an overhaul or a rise in oil prices, […]

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Nigeria’s President-elect, Muhammadu Buhari, has stated that his administration will probe the $20 billion alleged to be missing from the coffers of the Nigeria National Petroleum Corporation, NNPC. The immediate past governor of the Central Bank of Nigeria, CBN, Sanusi Lamido, had alleged that the $20 billion made from the sale of Nigeria’s crude oil by the NNPC could not be accounted for. President Goodluck Jonathan sacked Mr. Sanusi from the CBN after he made the allegation. The former bank chief was later crowned the Emir of Kano after the death of Ado Bayero, the former emir. Speaking Sunday when he played host to a delegation from Adamawa State led by the state’s governor-elect, Bindow Jibrilla, in his campaign secretariat, Mr. Buhari said although he received information that some persons already started returning money to government coffers, he would only believe it when he "sees it". "I heard that […]

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Nigeria’s Minister of Petroleum Resources, Diezani Alison-Madueke, has denied planning to flee the country to escape alleged corruption charges under the incoming Buhari government. Mrs. Alison-Madueke struck a defiant tone Wednesday, dismissing allegations that six countries had denied her requests for asylum. The minister said she had no plan to escape as she was not indicted for any offence. Following her recent meeting with former Head of State, Abdulsalami Abubakar, the minister said speculations have been rife that she is looking for a “soft landing” from the in-coming administration. “I have not sought such assistance because I am not aware that I have been indicted of any crime that I will need a soft landing,” Mrs. Alison-Madueke told journalists at the presidential villa in Abuja Wednesday. “Over the last four years, I have been severally and unfortunately accused and labeled in so many malicious and vindictive ways. “I have […]

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opinion "Unsold Nigeria crude grows as buyer interest falls". PUNCH, Thursday, April 9, 2015, p 41. The story by Femi Asu, went on to state that "Weak buying from Asia and other regular buyers of Nigerian crude oil has left a large overhang of March, April and May cargoes, it was learnt". For those who might not fully understand the implications of that report, it is necessary to spell them out. The first casualty, and it has been in that position since last year, is the 2015 budget which is now nothing more than an academic exercise. With crude oil prices hovering between US$45 and US$60 per barrel, the budget which out-going Finance Minister first based on $78 per barrel crude oil price, had by February been dropped in the dust bin. Now, with volume supplied imperiled by weak demand from our traditional customers, it is obvious that the […]

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OPEC non-crude liquids production, which averaged 6.4 million bpd in 2014, is expected to increase by less than 0.1 million bpd in both 2015 and 2016, led by increases in Qatar and Kuwait. In February 2015, unplanned crude oil supply disruptions among OPEC producers averaged 2.7 million bpd, an increase of 0.1 million bpd compared with the previous month. According to U.S Energy Information Administration (EIA), this increase was mainly attributable to rising outages in Iraq, Nigeria, and Libya. It noted that unplanned OPEC crude supply disruptions averaged 2.4 million bpd in 2014, 0.5 million bpd higher than in the previous year. The high level of OPEC disruptions contributed to higher crude oil prices during the first half of 2014. It stated that unplanned supply disruptions could still affect crude oil prices, but the threshold that the market can bear has risen in light of robust global production and […]

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Fire incident on the pipeline network of the Nigerian National Petroleum Corporation (NNPC) in Ijegun area of Lagos State. An Urhobo militant group, Urhobo Gbagbako, on Friday claimed responsibility for Thursday night’s bombing of the NPDC Oil pipelines at Ighrenene, Afiesere and Ekiugbo communities in Delta State. The group, which made the claims in an email sent to some reporters, said it is also planning to shut down all the oil fields in Urhobo and Isoko areas. The email signed by the group’s s spokesperson, Priest Omodjuvwu, said the bombing of the Ekiugbo/Ighrenene/Afiesere was to draw attention to the neglect of ex-militants of Urhobo extraction. It said the Urhobo had been sidelined in the pipelines protection contracts offered to ex-militants from other ethnic groups and they now want to show that they too had the capacity to cause trouble if ignored. The group said it had sent warning signals […]

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THE incoming government of Major General Mohammadu Buhari (rtd) should ensure speedy passage of the Petroleum Industry Bill (PIB), revival of ailing refineries, adoption of zero tolerance on corruption, business friendly electricity tariff and deregulation of the down stream sector of the oil and gas industry. These were the demand list of stakeholders in the oil industry such as the former President of Nigerian Association of Petroleum Explorationists (NAPE) and the President/Managing Director of Danvic Petroleum International, Dr. Mayowa Afe; President, Nigeria-Vietnam Chamber of Commerce and Industry, Prince Oye Akinsemoyin, and the Executive-Secretary of the Lubricant Producers Association of Nigeria (LUPAN), Emeka Obidike. Speaking with The Guardian yesterday, Afe commended the just concluded 2015 elections, saying that the latest development has already started opening doors for investment in the oil and gas sector. According to Afe, what has happened has opened up a lot of enthusiasms among foreign partners […]

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ABUJA, Nigeria — Muhammadu Buhari won an upset victory over Nigeria president Goodluck Jonathan this week using a catchphrase that’s familiar to anyone who’s paid attention to American politics over the past eight years: “change.” Buhari leveraged the same slogan used to much success by Barack Obama’s 2008 presidential campaign to unseat Jonathan and his ruling People’s Democratic Party, which has had its candidates occupy the presidency since Nigeria returned to democracy in 1999. The change Buhari promised was an end to the Boko Haram insurgency that has killed thousands of Nigerians and forced over a million to flee. He campaigned on a reputation as an anti-corruption crusader, and made populist pledges such as stipends for poor people and health care for all. Jonathan campaigned on the motto of continuity for his “Transformation Agenda,” saying the growth Nigeria enjoyed during his first elected term — during which the country […]

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According to unnamed community sources, Shell Petroleum Development Company has closed its flow stations in Nigeria’s Delta and Bayelsa states because of threats from militants, The Nation Online reported April 3. Shell has denied operation interference, but not commented on reports of threat, saying it does not discuss security issues. Militants are suspected to have threatened to attack flow stations following Goodluck Jonathan’s loss in the 2015 presidential election . Stratfor provides global awareness and guidance to individuals, governments and businesses around the world. We use a unique, intel-based approach to analyze world affairs. Copyright © 2015 Stratfor Global Intelligence, All rights reserved. Our mailing address is: 221 West 6th Street Suite 400 – Austin, TX 78701, USA unsubscribe from this list     update subscription preferences | forward email

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Photo In Kano on Wednesday, the victory of Muhammadu Buhari made for news and commerce. It was Nigeria’s first peaceful transition at the ballot box. Credit Samuel Aranda for The New York Times KANO, Nigeria — Nigeria ’s president-elect, Muhammadu Buhari, did not smile while making his acceptance speech on Wednesday — understandably, as terrorism and corruption were his main talking points. A day after piling up substantial vote totals against the incumbent president, Mr. Buhari, a former general who once rose to power in a military coup, further consolidated something extraordinary for Nigeria: the peaceful passing of power from one political party to another through the ballot box. The country is now a democratic nation like others, Mr. Buhari suggested Wednesday, both in his words and in the fact that the democratic process had worked well enough that he could give the speech at all. But in his […]

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Revenue received by the federation from crude oil sales, Petroleum Products Taxes (PPT), and royalties (after subsidies provided by Nigerian National Petroleum Corporation (NNPC) and cash calls) has decreased from $45 billion in 2011 to $32.3 billion in 2014, according to International Monetary Fund (IMF) Country Report on Nigeria. Besides, between 2011 and 2014, oil lifting fell from 2.38 to 2.19 mbpd (71⁄2 per cent decline), largely due to stoppages associated with pipeline vandalism. The report, which was released on Monday, stated that the drop in oil revenue over 2011 to 2014, was larger than expected from the evolution of oil prices and production. The IMF said that in 2015, oil exports are projected to decline by six percentage points (ppts) of Gross Domestic Product and oil revenue by 2.4 ppts of GDP from 2014 levels, with a reduction in the current account balance and loss in international reserves. […]

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Photo Muhammadu Buhari spent 30 years out of power before winning election as president. Credit Ben Curtis/Associated Press KANO, Nigeria — The 72-year-old former general elected as Nigeria ’s new president this week is not exactly new to the democratic process: He spent much of the past decade campaigning for the office in three successive elections — and failing each time. But then, as detractors insist and many supporters acknowledge, the former general, Muhammadu Buhari, had a long way to go to prove that he had left the military barracks behind. He first came to power in a coup over 30 years ago and became one of his country’s harshest military rulers, waging a “war against indiscipline” that prescribed humiliating punishment for tardy civil servants. He publicly executed young drug dealers on the beach, jailed journalists and expelled thousands of immigrants. He arrested 475 politicians and businessmen on corruption […]

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ABUJA (Reuters) – Nigerian election winner Muhammadu Buhari congratulated outgoing president Goodluck Jonathan for peacefully relinquishing power on Wednesday, a day after becoming the first Nigerian politician to unseat a sitting leader at the ballot box. In an unprecedented step, Jonathan phoned Buhari to concede defeat and issued a statement urging his supporters to accept the result, a signal of deepening democracy in Africa’s most populous nation that few had expected. "President Jonathan was a worthy opponent and I extend the hand of fellowship to him," Buhari told journalists and supporters to loud applause, wearing a black cap and kaftan. "We have proven to the world that we are people who have embraced democracy. We have put one-party state behind us." The 72-year-old general, who first came to power three decades ago via a military coup, campaigned as a born-again democrat intent on cleaning up the corrupt politics of […]

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LONDON (Reuters) – The victory of opposition candidate Muhammadu Buhari in Nigeria’s presidential election could mark a turning point toward genuine democracy for the country, improving the image and moral standing of Africa’s troubled giant. The defeat of President Goodluck Jonathan, whose People’s Democratic Party (PDP) has run Africa’s most populous nation since it returned to civilian rule in 1999, was the first time a Nigerian head of state lost power to an opposition challenger through the ballot box. "It’s not the result that we wanted but it’s a good day for Nigeria if we show the world we can run a credible election," said a minister in Jonathan’s government, who did not wish to be named because others in the PDP were angry about the result. Jonathan telephoned Buhari on Tuesday to congratulate him on winning this weekend’s election, a spokesman for Buhari’s All Progressives Congress (APC) said. […]

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ABUJA (Reuters) – Nigerian opposition contender Muhammadu Buhari, an ex-general who first won power three decades ago in a military coup, closed in on a historic election victory on Tuesday, maintaining a hefty lead in the vote count in Africa’s most populous nation. According to a Reuters tally collated from 33 of Nigeria’s 36 states, the 72-year-old Buhari had more than 14 million votes, testament to the faith Nigerians have put in him as a born-again democrat intent on cleaning up Nigeria’s corrupt politics. Buhari’s support compared to 11 million for President Goodluck Jonathan, whose five years at the helm of the richest country in Africa have been plagued by corruption scandals and an insurgency by Islamist Boko Haram militants. One of Jonathan’s big support bases in the oil-producing Niger Delta is yet to report but the gap is so large that most analysts said it was impossible to […]

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French oil giant Total said Monday that it has sold its stake in a Nigerian oil field to a local company for $569 million (523 million euros). Total’s sale of its share in the onshore Oil Mining Lease 29 to Aiteo Eastern E&P comes after the French group made two similar divestments in Nigeria. The three transactions reached a sum of $1 billion. "These transactions … reduce our exposure to non-operated blocks onshore Nigeria, and allow us to focus on our core, operated developments," said Patrick de La Chevardiere, Total’s Chief Financial Officer. The group added that the divestment is "in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the sector". Energy groups have been slashing their investments in a bid to shore up earnings, as crude prices have collapsed by about 60 percent since June.

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KANO, Nigeria — The most sharply contested election in Nigeria ’s post-independence history wound down to a tense conclusion on Saturday amid fears that a polarized electorate would clash regardless of the outcome in a country split on religious, ethnic and sectional lines. There appeared to be little middle ground between partisans of the incumbent president, Goodluck Jonathan , a Christian from the south hated in the north for mismanaging a bloody Islamist insurgency at steep cost, and his challenger, Muhammadu Buhari, a former military ruler, a northerner and a belated democratic convert whose Muslim faith and authoritarian past are feared in the south. Voters on Saturday morning crowded around registration stations here in the north’s largest city, a packed metropolis of more than five million, as hitches in the process added to the tension. Election officials were more than two hours late in some places, and malfunctioning electronic […]

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The value of Nigeria’s external reserves, which has been on the downswing in the past few weeks, fell below the $30 billion mark to $29.865 billion as at March 25, 2015, according to latest Central Bank of Nigeria’s (CBN’s) figures. THISDAY’s findings show that the current level of the foreign reserves, which is derived mainly from the proceeds of crude oil earnings, has fallen by 13.4 per cent or $4.628 billion this year, compared with the $34.493 billion it stood at the beginning of the year. This has been attributed to the significant reduction in forex inflow into the country occasioned by the sustained low crude oil prices. Oil prices however rallied for a second straight day on Thursday after Saudi Arabia and its Gulf Arab allies began air strikes in Yemen, sparking fears of a bigger Middle East battle that could disrupt world crude supplies. Brent crude was […]

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Royal Dutch Shell unloads more assets in the Niger Delta region to national energy companies in Nigeria. File Photo UPI/Maryam Rahmanian. The Nigerian subsidiary of Royal Dutch Shell said it made further progress in its divestment strategy by selling Niger Delta assets from $1.7 billion. Shell Petroleum Development Co. of Nigeria said it completed the sale of oil mining lease 29 and the 62-mile long Nembe Creek pipeline to Aiteo Eastern E&P Co., a Nigerian company. "This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the federal government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business," the Dutch supermajor said in a Wednesday statement. Shell last week sold its stake in oil mining lease 30 to a separate rival for $737 million. Divested fields produced around 43,000 barrels of oil per day for Shell […]

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