Business

Rising fuel consumption: Confronting the facts

In one year alone, Nigerians bought N1.95 trillion worth of fuel from the Nigerian National Petroleum Corporation (NNPC). ADEOLA YUSUF, in this report, takes a second look at the figure and facts behind its surge.

 

To start with, the Nigerian National Petroleum Corporation (NNPC) raked in N158.04 billion from the sale of fuel to Nigerians in the month of October.

 

The corporation, which announced this in its October 2020 edition of the NNPC Monthly Financial and Operations Reports (MFOR), added that its downstream subsidiary, the Petroleum Products Marketing Company (PPMC), recorded the sale, representing 92 per cent increase over the N80.15 billion sales in September 2020.

 

A press release by the Group General Manager, Group Public Affairs Division of the corporation, Dr. Kennie Obateru, also confirmed the figure, indicating that total revenue generated from the sale of white products for the period October 2019 to October 2020 stood at N1.95 trillion.

 

A breakdown of revenue

 

The Premium Motor Spirit (PMS) accounted for about 99.07 per cent of the total sales with a value of over N1.9 trillion. In terms of volume, the October 2020 sales figure translates to a total of 1.224.54 billion litres of white products sold and distributed by PPMC within the period compared with 603.39 million litres in the month of September 2020.

 

This comprised 1.224.20 billion litres of PMS, 0.31 million litres of Automotive Gas Oil (AGO) also known as diesel and 0.033 million litres of Dual Purpose Kerosene (DPK). Total sales of white products for the period October 2019 to October 2020 stood at 16.462.50 billion litres and PMS accounted for 16.344.36 billion litres or 99.28%.

 

Hallmark of transparency

 

A lot of industry players have hinged the possibility of this rising figures on the new culture of transparency at the Mallam Mele Kyari-led NNPC. Kyari pioneered the publication of MFOR on a monthly basis and this effort has not only rained accolades on the NNPC, it has also kept surging the profit margin for the corporation. The latest of the recognition

 

is the award conferred on NNPC by the management of New Telegraph newspaper.

 

Kyari, has, going forward, pledged the corporation’s readiness to do more to justify the trust repose in it as the corporation bagged the “Government Agency of the Year 2020 (Transparency)” by the New Telegraph Newspaper.

 

Why NNPC deserved our award – Aminu, New Telegraph MD Presenting the award Tuesday in Abuja, the Managing Director and Editor-in-Chief of the New Telegraph, Mr. Ayodele Aminu, disclosed that the emergence of NNPC as the most transparent government agency in 2020 was based on the corporation’s recent openness and accountability to the public.

 

Aminu noted that the noticeable efforts to deepen transparency in NNPC as evidenced by the publication of its 2018 and 2019 audited financial statements was a major factor in considering the corporation for the award by the Management and Board of the New Telegraph.

 

“Before now, the accounts of the NNPC had been shrouded in secrecy. But Mele Kyari was brave enough to say this is the way we are and let the public see that there is nothing hidden,” the newspaper boss stated.

 

In his statement, Kyari said the corporation had since realised that it pays to be transparent and accountable at all times. He reiterated the management’s resolve to drive the corporation along the line of Transparency, Accountability & Perfomance Excellence (TAPE) agenda, noting that the media’s interest in the activities of the corporation and the oil and gas sector was a welcome development.

 

Kyari assured that given the value of the award, he would do more to justify the trust. “This award would be a major impetus towards our unflinching efforts to change the narrative around the NNPC brand, and will surely imbue us to take the transparency drive to new and enviable heights,” Kyari said.

 

Present at the award ceremony were: the Chief Financial Officer of the Corporation, Mr. Umar Ajiya, Chief Operating Officer, Ventures and Business Development, Engr. Adeyemi Adetunji, and the Group General Manager, Governance Risk & Compliance (GRC), Mr. Chris Akamiro.

 

The down side of MFOR In the month under review, 23 pipeline points were vandalised representing about 10 per cent increase from the 21 points recorded in September 2020.

 

Of this figure, Mosimi Area accounted for 83 per cent of the vandalized points while Port Harcourt Area accounted for the remaining 17 per cent. In the gas sector, a total of 214.07 billion cubic feet (bcf) of natural gas was produced in the month October 2020, translating to an average daily production of 6,908.34 million standard cubic feet per day (mmscfd). The daily average natural gas supply to power plants increased by 8.60 per cent to 745mmscfd, equivalent to power generation of 2,801megawatts.

 

 

For the period of October 2019 to October 2020, a total of 3,018 BCF of gas was produced, representing an average daily production of 7,658.88 mmscfd during the period.

 

The October 2020 MFOR also  ingdicates  that period-to-date gas production from joint ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 68.18 per cent, 20.12 per cent and 11.70 per cent respectively to the total national gas production.

 

In terms of natural gas off take, commercialisation and utilisation, out of the 208.96 BCF of gas supplied in October 2020, a total of 118.40 BCF of gas was commercialised, consisting of 38.07 BCF and 88.90 BCF for the domestic and export market respectively.

 

This translates to a total supply of 1,269.03mmscfd of gas to the domestic market and 2,870.57mmscfd of gas supplied to the export market for the month. This 63rd edition of the MFOR highlights NNPC’s activities for the period of October 2019 to October 2020.

 

In line with the corporation’s commitment of becoming more accountable, transparent and driven by performance excellence, NNPC has continued to sustain effective communication with stakeholders through this report via publications on its website and in national dailies.

 

Last line

 

The rise in consumption of fuel by Nigerians was on the one hand caused by the business trend of pulling out of the negative effects of COVID-19 and, on the other hand, the transparency in doing business at the NNPC.

 

The corporation is encouraged not to rest on its oars by doing more on accountability and tranaparency while all Nigerians should also support the cause for the good of all.

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