Oil Theft: Nigeria Lost $3.27bn In 14 Months – Federal Govt | Nigeria Updates- Breaking News, Nigerian News, Politics, Sports, Entertainment and Business - Nigeriaupdates.com Nigeria Updates
Connect with us

Business

Oil Theft: Nigeria Lost $3.27bn In 14 Months – Federal Govt

Published

on

As Nigeria continues to come under massive crude oil theft and pipeline vandalism in the  Niger Delta, the federal government has disclosed that Nigeria lost about $3.27 billion worth of oil to menace in the past 14 months.

The government said high-level cases of oil theft have become a threat to the country’s corporate and economic existence, with the industry now thinking of transporting crude oil from fields to export terminals by trucks.

This is as the Independent Petroleum Producers Group (IPPG) said about 82 per cent of its members’ oil production was stolen in the month of February 2022.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in a presentation at a stakeholders’ engagement on oil theft in Abuja yesterday said the government was extremely worried about the tragic situation.

The Commission disclosed that most of the crude oil losses came from Bonny Terminal Network, Forcados Terminal Network and Brass Terminal Network.

It listed factors that were aiding the criminal activities as: economic challenges, inadequate security, poor surveillance, poor community engagements, exposed facilities and stakeholder compromises.

The commission stated that due to the high level of theft, the country has been unable to meet its OPEC production quota.

Speaking on the issue, the chief executive of NUPRC, Engr. Gbenga Komolafe said the government was determined to end the menace so that the country can benefit from the rising price of oil and also to protect the environment from oil spills.

According to him, “the issue of oil theft has become a very worrisome issue to the government of Nigeria and I believe to you as investors too”.

Engr. Komolafe stressed that it was important that the government and the oil companies’ work together resolve the issue especially on the agreed volume of oil lost to vandals as the issues strike at the heart of Federation revenu

“You will recall that in the last one week we have set up a crack team for us to determine the accurate figure because as a government we cannot continue to act on the basis of an abstract or inaccurate figure in dealing with an important issue as crude oil theft because the issue goes to the heart of federation revenue”.

He noted that “the concern of the government is to increase our national oil production. Basically, we are an oil economy and when the upstream is sick it affects the wellbeing and the health of the country.

“The situation that is happening in the upstream is getting to the level of threat to the existence and wellbeing of Nigeria. As a responsible regulator we are very concerned about it. We have been doing a lot and we are not relenting. We will do everything possible to increase oil production in a manner that will make the nation benefit from the upward swing in the international price of crude oil”.
Meanwhile, represented by the managing director of Waltersmith Petroman, Chikeze Nwosu, the group said the independent producers were facing existential threat.

Nwosu explained that the oil theft challenge has grown from what it used to be in the past of about four percent to a high of 91 per cent in December, 2021.

According to him, “The TNP (Trans Niger Pipeline) is the major issue. We have seen crude theft grow from single-digit percentages to reports of 91 per cent in December for some of the operators who produce into the TNP, 75 per cent in January and the February report we got has an average of 82 per cent”.

He pointed out that the situation seems to be getting worse despite all efforts to curb it. He, therefore, called for urgent action from the government and stakeholders.
In his remarks, the chairman/managing director of ExxonMobil, Richard Laing who represented the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce, pointed out that though the issue was not new, it has grown from just oil theft to organized criminality with sophisticated operation.

He said: “As an industry, I know how hard my colleagues work to produce products that we need and to suffer the level of theft that we have is disheartening. But more importantly, it is a threat to investments, a threat to the health of the industry and wealth of the nation.

“It is important that the stakeholders integrate their activities and their thoughts. As OPTS we have met with a number of stakeholders over the last several months and we want to make sure that whatever we do is joined up and effective.

“The language is very important and I think we use theft rather quickly. I don’t think this is theft, this is organised criminal activity.

“The level of sophistication in terms of tapping into the pipelines, the distributions, efforts required to move hundreds of thousands of barrels a day isn’t some guy coming along and taping into a pipeline and taking container crude oil. It is organized criminality”, Laing stressed.

Continue Reading

Business

Uganda-GTB Transition Into Tier 2 Credit Institution 

Published

on

By

 

 

 

 

 

The Guaranty Trust Bank (Uganda) Ltd has shed more light on why it transited from a Tier 1 Commercial Bank to a Tier 2 Credit Institution.

 

The Management team stated that this became necessary in view of the Bank’s current paid-up share capital position of UGX 41 billion (approx. USD 11.02 million) and the recent increase in the minimum paid-up share capital requirement for Tier 1 Commercial Banks operating in Uganda from UGX 120 billion (approx. USD 32.26 million) effective 31st December 2022, to UGX 150 Billion (approx. USD 40.32Million) by 30th June 2024.

 

 

Disclosing this in a statement made available to the media  on Thursday, GTBank Uganda revealed that continuing operations as a Tier 2 Credit Institution is within the Bank’s current capital base and will allow the bank to play to it’s core strengths in Retail and SME Banking.

 

The GTBank statement reads: “Guaranty Trust Bank (Uganda) Ltd (“GTBank Uganda”) today announced its intention to transition from a Tier 1 Commercial Bank to a Tier 2 Credit Institution. This position has become necessary in view of the Bank’s current paid-up share capital position of UGX 41 billion (approx. USD 11.02 million) and the recent increase in the minimum paid-up share capital requirement for Tier 1 Commercial Banks operating in Uganda to UGX 120 billion (approx. USD 32.26 million) effective 31st December 2022, and subsequently to UGX 150 Billion (approx. USD 40.32Million) by 30th June 2024.

 

“In November 2022, the Ministry of Finance, Planning and Economic Development in conjunction with the Central Bank of Uganda prescribed new thresholds for minimum paid-up share capital unimpaired by losses for Supervised Financial Institutions (SFIs) in Uganda.

 

“Following extensive engagements with all stakeholders including the regulator and our shareholders, we believe that this is the right decision considering global economic realities and it is fully aligned with the objectives of our Holding Company -– “to direct resources to opportunities in alignment with our current strategy of evolving the Guaranty Trust Brand to a full-fledged Financial Services Group.” Commenting on this development, Mr. Jubril Adeniji, Managing Director of Guaranty Trust Bank Kenya and Head of the East African region stated, “Continuing operations as a Tier 2 Credit Institution is within the Bank’s current capital base and will allow us play to our core strengths in Retail and SME Banking. As we make this transition, we will continue to review our positioning within the Ugandan banking sector in line with our objective of maximizing shareholder value.”

 

He further added; “As a Group, we are confident of Uganda’s trajectory as a country and remain committed to championing growth and expanding innovative financial services across Africa and will continue to explore viable opportunities in both existing and new business verticals that guarantee the best use of available capital.

 

“Given the foregoing, we have carried out a thorough review of our existing customer base and put adequate measures in place to continue to meet their banking needs pending final regulatory approvals and further directives by the relevant parties.

 

“We expect the transition to be seamless and commit to continuing compliance with all guidelines and best practice throughout the change process.”

Continue Reading

Business

Eko DisCos Reportedly Sacks CEO

Published

on

By

 

 

 

 

The board of Eko Electricity Distribution Company has reportedly relieved its Managing Director/Chief Eexcutive Officer, Dr. Tinuade Sanda, of her duties as MD/CEO of the company.

 

In a letter seen by Nairametrics and signed by the company’s Chairman, Dere Otubu, the company explained that the decision was due to a directive from the industry regulator, NERC.

 

“We have received a directive from NERC stating that all staff working for the utility must be employed directly by the utility, bound by applicable service conditions that are applicable to the employees of the utility, and paid through the utility’s payroll.

 

The Disco is obligated to comply with these directives due to the powers of NERC as stipulated in the Electricity Act 2023. In compliance with the aforementioned directive, all seconded staff from WPG Ltd are being released by Eko Electricity Distribution Plc and returned to WPG Ltd.

 

Accordingly, you are hereby relieved of your role, office, and position at Eko Electricity Distribution Plc effectively immediately, and returned to your employer, WPG Ltd.”

 

Nairametrics also obtained a copy of the letter from NERC titled ‘Alleged Ghost Workers In Eko Electricity Distribution Company – Call For Investigation,’ wherein it instructed the distribution company to “ensure all existing WPG secondees involved in the loss of revenue to EKEDC in this matter are withdrawn back to WPG,” indicating that all WPG staff seconded to Eko DisCo should be removed. WPG is the core investor in Eko DisCo.

 

According to the report other executives in the company who were seconded from WPG were also affected by the directive.

Continue Reading

Business

CBN raises interest rate to 24.75% in bid to curb inflation

Published

on

By

 

 

 

 

In a move aimed at tackling the rising inflation in Nigeria, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has announced a significant increase in the benchmark interest rate.

 

The  Monetary Policy Rate (MPR) which was previously 22.75 now stands at 24.75%.

 

Speaking to journalists after the MPC meeting, CBN Governor Yemi Cardoso, emphasized the committee’s commitment to curbing inflation and restoring the purchasing power of Nigerians.

 

He outlined the various policy adjustments implemented:

 

The most significant change is the substantial increase in the MPR to 24.75%. This makes borrowing more expensive, aiming to reduce spending and slow economic growth, ultimately bringing down inflation.

 

The CBN has also adjusted the Cash Reserve Ratio (CRR) for commercial banks, maintaining it at 45%. However, the CRR for merchant banks has been increased from 10% to 14%.

 

Additionally, the liquidity ratio remains unchanged at 13%. These measures aim to tighten control over the money supply in circulation, further dampening inflationary pressures.

 

Cardoso highlighted the importance of food security in the fight against inflation. He urged the federal government to fully implement its agricultural programmes, aiming to increase domestic food production and reduce reliance on imported food items, which can be susceptible to price fluctuations.

 

The increased interest rate will have a ripple effect throughout the Nigerian economy. Borrowers, including businesses and individuals, can expect to pay more for loans, potentially impacting investment and consumer spending.

 

However, the CBN’s actions are intended to bring down inflation in the long run, which would ultimately benefit Nigerians by stabilizing prices and protecting their purchasing power.

 

The MPC’s decision to aggressively raise interest rates reflects the seriousness of Nigeria’s inflation challenge.

 

Whether these measures will achieve the desired outcome remains to be seen. The effectiveness will depend on various factors, including the government’s success in boosting food production and the overall response of the Nigerian economy to tighter monetary policy.

Continue Reading

Trending

Copyright © 2014 NigeriaUpdates.