Connect with us

Business News

Nigeria Spends N49.68bn on Pipeline Vandalism in Ten Months

The monthly report also showed that a total of 363 vandalised points were recorded from January to October 2020.

Published

on

In a bid to fight the lingering pipeline vandalism, the Nigerian National Petroleum Corporation has announced in its latest monthly report an expenditure of almost N50bn to repair and manage pipelines in 10 months.

The monthly report also showed that a total of 363 vandalised points were recorded from January to October 2020.

In the report, NNPC said it spent N5.48bn on pipeline repairs and management cost in January; N6.74bn in February; N7.69bn in March; N7.84bn in April; N7.99bn in May and N6.24bn in June.

It spent N1.80bn in July; N1.49bn in August; and N4.41bn in October. No repairs and management cost were incurred in September.

However, NNPC said “products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position.”

It also disclosed that 23 pipeline points were vandalised in October, representing about 10 per cent increase from the 21 points recorded in September.

Read Also:

Nigeria’s Anti-Graft Agency Asks Court to Inspect $9,772,800, £74,000 Seized from ex-NNPC GMD

Nigeria’s State Oil Firm, NNPC, Posts ₦28.38Bn Trading Surplus in September

Nigeria’s NNPC Cuts Loss By ₦801.3Bln In 12 Months

Nigeria’s NNPC Records ₦20.36Bn Trading Surplus In July

132 firms bid for NNPC oil swaps

The corporation said, “Of this figure, Mosimi Area in Ogun State, South-western Nigeria accounted for 83 per cent of the vandalised points while Port Harcourt Area in the Niger Delta region accounted for the remaining 17 per cent.

“NNPC, in a joint effort with the local communities and other stakeholders, have continuously strive to reduce and eventually eliminate this menace.”

Earlier this month, the national oil company announced that a total of 96 companies from various jurisdictions had indicated an interest in undertaking the rehabilitation of its downstream facilities, ranging from critical pipelines to depots and terminals, through the Build, Operate and Transfer financing model.

The Managing Director of the Nigerian Pipelines and Storage Company, Ada Oyetunde, said the exercise was in accordance with the mandate of the Federal Government to prioritize the rehabilitation of critical downstream infrastructure across the country.

She listed the facilities that will be rehabilitated by successful bidders to include critical pipelines for crude oil supply to the refineries and evacuation of refined products, depots, and terminals.

She said the objective is to get them ready to support the refineries when they become operational after their rehabilitation.

Poor maintenance and vandalism have left many of the depots and pipelines idle for years, with the number of fuel tankers on the roads increasing and wreaking havoc.

Join our newsletter


Continue Reading
Click to comment

Leave a Reply

West Africa Business News

Nestlé Nigeria Posts N39.35Bln Profit in 2020

Published

on

Nestlé Nigeria Plc has reported revenue of N287.08 billion for the 2020 financial year.

The company’s audited result released on the Nigerian Stock Exchange showed that the revenue was higher by 1.1 per cent in contrast with N284.04 billion recorded in 2019 comparative period.

Gross profit for the year stood at N 119.21 billion compared with N128.15 billion achieved in the corresponding period of 2019.

Also, the company posted profit after tax of N39.25 billion during the review period against N45.68 billion in 2019.

The board in addition to N25 per share interim dividend already paid in December 2020, proposed an additional dividend of N 35.50 per share making for a total dividend of N60.50 for 2020.

The proposed dividend would be submitted for approval at the company’s Annual General Meeting on June 22.

Commenting on the results, Mr Wassim Elhusseini, Managing Director and CEO of Nestlé Nigeria, said that the company strengthened market leadership across its categories.

“Amidst a very challenging business environment in 2020, we strengthened market leadership across our categories. Thanks to our high performing team, we successfully continued to provide our consumers with high-quality affordable foods and beverages to enjoy every day.

“In line with our purpose of unlocking the power of food to enhance quality of life for everyone today and for generations to come, we broadened our portfolio in 2020 to help our consumers fulfil their nutrition needs.

“Our latest innovation is the new GOLDEN MORN Multi-Cereal, fortified with iron and other vitamins and minerals,” Elhusseini said.

Speaking on future outlook, he said that the company would remain committed to supply of high-quality nutritious foods and beverages to consumers.

“Going into 2021 – which portends to be another challenging year – we will continue to focus on keeping our people safe, continued supply of high-quality nutritious foods and beverages to consumers as well as caring for our communities and the planet.

“We will also keep supporting our business partners as we strengthen our operations to adapt to the rapidly changing reality,” he said.

Join our newsletter


Continue Reading

East Africa Business News

Zambian High Court Cancels State Acquisition of CEC Company Power Lines

Published

on

Judge Elita Phiri-Mwikisa of a High Court in Zambia has quashed last year’s decision by the Minister of Energy, Matthew Nkhuwa, to declare a private company’s electricity transmission lines as a common carrier.

By declaring infrastructure owned by the Copperbelt Energy Corporation (CEC), Zambia’s leading supplier of electricity to the mines, as “common carrier”, Nkhuwa effectively placed the company under obligation to provide its facilities to any entity that wished to use the transmission lines – provided they agreed the terms and conditions set by Zambia’s Energy Regulation Board (ERB) with CEC.

However, CEC dragged the Zambian government before the courts, arguing that Nkhuwa’s decision amounted to “expropriation” of its infrastructure.

In her ruling, Judge Phiri-Mwikisa of the Lusaka High Court said the Minister’s decision to declare CEC’s transmission and distribution lines as common carrier through the passing of S.I No.57 of 2020, took away CEC’s rights to negotiate terms and conditions of use of its infrastructure in view of the fact that any enterprise can use CEC’s infractructure at the wheeling charge that ERB has set, which CEC had argued was not cost effective.

“In fact, KCM has abrogated its contractual obligations under the Power Supply Agreement (PSA) to pay the debt owed to CEC amounting to USD 144 million. I agree with CEC that S.I No. 57 of 2020 is too wide in its application, in that it affects all the applicant’s transmission and distribution lines instead of only affecting lines supplying power to KCM,” Judge Mwikisa said.

She added, “The respondent’s decisions were illegal and tainted with procedural impropriety. All in all, I find that the applicant has succeeded on all grounds…I accordingly quash the decision of the minister of 29 May 2020, to declare the applicant’s transmission and distribution lines as a common carrier.”

Analysts had argued that the move was meant to aid Konkola Copper Mines (KCM), the local unit of Indian mining giant Vedanta, which has been under control government control since May 2019.

Join our newsletter


Continue Reading

Business News

Okonjo-Iweala’s First Day at Work as WTO Director-General

Published

on

As Nigeria’s Dr. Ngozi Okonjo-Iweala resumes her role as the Director-General of the World Trade Organisation (WTO), the former Nigerian Finance Minister went straight into business, as she was at a meeting of the Congress of the WTO.

She makes double history as the first woman and first African to be in the role.

In her first day in office, the former former World Bank Vice President said she’s in one of the most important institutions in the world. She indicated her readiness for the huge task ahead of the organisation.

Okonjo-Iweala saw off competition from several strong contenders before becoming the chosen candidate for the top office of the WTO.

She’s an experienced economist and one of the most respected Africans in the world.

Join our newsletter


Continue Reading

Trending