To cushion against the volatility in the global crude market and strengthen profitability, the Nigerian National Petroleum Corporation (NNPC) has announced that it is building up business portfolios in the housing, power, and medical sectors.
This is one of several measures the corporation is taking to sustain revenue generation for Nigeria, and cope with the boom and bust cycles which are gradually becoming a feature of the global crude oil market.
NAN reports that this was contained in a statement from the Corporation Chief Operating Officer, Ventures and Business Development, Mr. Roland Ewubare, and signed by NNPC Spokesman, Kennie Obateru.
According to Ewubare, the NNPC will establish Independent Power Plants using the Ajaokuta-Kaduna-Kano (AKK) pipeline network, and consolidate its presence in the power sector.
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The statement reads in part; “NNPC is creating an energy company that would have portfolios in renewable energy; we have initiatives on solar that is ongoing.
“We have got biofuels agreements with some state governments that would soon be activated. We do have a lot of non-core businesses that are aggregated under the Ventures and Business Development Autonomous Business Unit of the NNPC.
“This would be expanded through effective collaboration and partnership with the private sectors,”
Lower costs, more profits
As part of moves to improve profitability, the NNPC also announced plans to drive crude oil production cost down to 10 dollar per barrel by Q4 2021,
This according to the statement would be done by systematically and gradually beating down logistics costs.
The Corporation’s revenue took a major hit in 2020 due to the slump in global oil prices, and this in turn affected the Nigerian budget given that oil proceeds account for a significant fraction of her income.
“When you have a low commodity price regime, as the case now, the only way we are able to squeeze out some reasonable cash and financial gain to the nation is by curtailing and constraining our costs in line with the GMD’s aspiration to push for a 10 dollar per barrel cost of production,” Ebuware said.
(READ MORE: NNPC pipeline vandalism up by 50% in January, may suspend crude oil production)
There is also an ongoing collaboration with selected partners to commercialise flared gas in order to preserve the flora and fauna of the country.
This would be done by converting it to Compressed Natural Gas (CNG) and Liquefied Natural Gas, for sale to consumers.
The NNPC is partnering with private developers to reduce the housing deficit in the country and also partnering with medical centres to provide innovative healthcare for Nigeria.
This is another NNPC SCAM.
Why are they not investing in Pertochemical Refinery.
Let Nigerian know the truth…
Nigerians are only get 30% benefit from Crude Oil production. While NNPC feed on 10% (undeclared national loss). Politicians 10%. Crude Oil producers 20% & Transport companies 10%.Overseas Oil refinery 20%.
Nigeria can save more by processing Crude Oil to petrochemical product like the Middle East countries.
FG should realocate Crude Oil to State Government for local refining. Each of the 36 State and FTC can invest in State-owned Petrochemical Refinery with Private partnerships of various capacity.
With this FG will decentrslize… NNPC manipulation on Crude Oil through local production. Futher to this FG should reduce, if not eliminate exportation of Crude Oil as forex earner. FG should review the mandate and law surrouding establishment NNPC and Crude Oil.
If not the NNPC 70 – 30 sharing will continue to be the loss of country masses, while very few benefit from this Institutionalised corruption called FG/NNPC…
WHERE FG/STATE GOVERNMENT BUDGET IS BASICALLY AT THE MERCY OF ALMIGHTY NNPC.
Nigeria FG can only succeed if we inbovate and transform to a petrochemical exporting country. Not even agriculture or industrialization can get us there faster.
Note:
1). FG Budgeted expenditures is 100% equals Crude Oil production value. This value constitutes about 70% of FG ture income revenue. Wheress the ture value FG income revenue is flawed with corruption and losses, for individual personal gains.
2). States Budget is funded by FG Crude Oil allocation 70% and Personal Income Tax 30%. Depending on population density geographical location and crude oil resource.
May nigerian tax payers deliver selves from nnpc malgovernance.
Nnpc waste crude
Nnpc waste gas
Nnpc waste d truth that oil was first discovered in Araromi seaside and Ogogoro areas in ilaje local government peninsula in ondo state South West Nigeria in 1908 in its diairies as from 1997 when Ekiti State was excised ,
Relegated Ondo state in the scheme of programmes and projects and event Retrogresses Nigeria in naming oil wells wrongly.