Report indicates NNPC paid N128bn into federation account in August

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…As FEC approves N11bn for fire vehicles, building complex for NIS***

The Nigerians National Petroleum Corporation (NNPC) transferred the sum of N128.40billion into the federation account in August.

The Corporation which disclosed this in its monthly Financial and Operational report released in Abuja on Wednesday, also stated that between August 2017 and August 2018, the federation and joint ventures (JV) received the sum of N879.02billion and N651.4billion respectively.

Highlighting that the Federation Crude Oil and Gas Revenue, Federation Crude Oil and Gas lifting, were classified into Equity Export and Domestic crude, the NNPC further explained that this crude were lifted and marketed by corporation and the proceeds remitted into the Federation Account.

It noted that Equity Export receipts, after adjusting for Joint Venture Cash Calls, were paid directly into the Federation Account domiciled in Central Bank of Nigeria (CBN).

The corporation explained that domestic crude oil of 445,000 bpd was allocated for refining to meet domestic products supply, and payments were effected to the Federation Account by NNPC.

This, it said was done after adjusting crude and product losses and pipeline repairs and management costs incurred during the period.

On the crude oil and gas export sales, the report noted that sales for the month of August stood at $470 million.

According to the report, the sales indicate an upsurge of about $78 million in relation to July oil and gas export figures of $391.91m.

It further indicated that crude oil export sales contributed 337.62million dollars which represented 71.83 per cent of the dollar transactions compared with 283.43million dollars contribution in the previous month.

“Export gas sales during the period amounted to 132.38million dollars.

“The August 2017 to August 2018 crude oil and gas transactions involved crude oil and gas export worth 5.26billion dollars,” it said.

The report explained that based on the above sales figures, a total export receipt of 450.24million dollars was recorded in August 2018 as receipt against 382.65million dollars in July 2018.

“Contribution from crude oil during the period, amounted to 336.43 million dollars, while gas and miscellaneous receipt stood at 101.33million dollars and 12.48million dollars respectively,” the report noted.

A further breakdown of the figures showed that out of the export receipts, 142.31million dollars was remitted to the Federation Account.

The sum of 307.93million dollars was remitted to fund the JV cost recovery for the month of August, 2018 to guarantee current and future production.

“Total export crude oil and gas receipt for the period August 2017 to August 2018 stood at 5.23billion dollars out of which 3.74 billion dollars was transferred to JV Cash Call as first line charge and the balance of 1.49 billion dollars paid into the Federation Account,” it added.

Meanwhile, the Federal Executive Council (FEC) on Wednesday in Abuja approved N11 billion for the purchase of 22 fire fighting vehicles for the Federal Fire Service and construction of technology building for the Nigeria Immigration Service (NIS).

The Minister of Interior, Lt. Gen. Abdulrahman Dambazau, disclosed this when he briefed State House Correspondents on the outcome of the meeting of the FEC.

The meeting was presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.

He said that N3.9 billion of the amount was approved for the procurement of the 22 fire fighting vehicles while the remaining N7.1 billion was for the construction of the NIS technology building.

“In 2016, we procured 21 fire fighting vehicles, in 2017 the procurement was for 22 fire fighting trucks and in 2018, it is a repeat procurement of what we did last year.

“The vehicles will cost N3, 952, 076, 338.35 for those fire trucks, water tankers and other related vehicles.

“The government is doing everything possible to ensure that fire incidents are contained and also controlled,’’ he said.

The minister said the vehicles would be distributed according to flash points, where there were frequent fire incidents.

He said: “We are just starting these, we have identified areas that have high fire hazards and we will continue to do this.’’

Dambazau also announced that the council approved N7.1 billion for the building of the communication centre for the Nigeria Immigration Service.

According to him, the centre will help harness the data of the service, which presently is domiciled with various service providers.

“The Centre, when operational, will help bring together all the data used by the Nigeria Immigration Service under one roof.

“For now we have these data domiciled with the service providers and they are in piecemeal.

“So, at the proposed centre to be sighted within the headquarters of the Service, the data will be brought together so that the Immigration can be able to interface with other institutions that have to do with internal security, border management and so on, like the Customs Service,” he said.

The minister also disclosed that another N1.5 billion was approved for the purchase of 116 special vehicles, known as Green (Black) Maria for the Nigeria Prisons Service.

“An approval was given for the procurement of 116 operational Green Maria vehicles, which will cost N1,584,064,560.

“This will be used to take inmates and suspects to the courts because we presently don’t have enough of such vehicles.

“There are over 5,000 courts and about 240 prisons where on daily basis, we have to convey the inmates to the courts and for speedy dispensation of justice, we need to get more vehicles, So this development is going to improve the situation tremendously,’’ he said.

Also on the outcome of the Council’s meeting, the Minister of Transportation, Mr Rotimi Amaechi, revealed that the council approved a variation of N628 million for the new runway of the Nnamdi Azikiwe International Airport, Abuja.

“The Ministry of Transportation had two memoranda approved at the meeting. One of them had to do with the variation of cost for the Abuja runway which came earlier in April but was stepped down for the ministry to liaise in terms of pricing with the Ministry of Works.

“That was done and brought back to cabinet. The work was reviewed and the cabinet approved the increase of N628,123,590 as variation on the job.

“Actually what we refer to as variation is an additional work that we ran into in the cause of the construction or repair of the runway,” he said.