BUSINESS
2021: NNPC in Retrospect
In retrospect, the Nigerian National Petroleum Company (NNPC) Limited recorded some remarkable achievements in 2021 including the signing into law of the Petroleum Industry Act (PIA) by President Muhammadu Buhari.
There are other major achievements in the industry which had placed the country on the part of success since the first discovery of crude oil in 1956 at Oloibiri, in present day Bayelsa.
The oil and gas industry had since grown to become the bane bedrock of Nigerian economic and a major source of national development.
The industry contributes about 30 per cent of the nation’s gross domestic product, GDP, over 70 per cent of government revenue and 90 per cent of foreign exchange earnings.
With this steady beat over the past six decades and the attendant contribution to the national coffers, the Nigerian oil and gas industry has evolved; with Nigeria becoming the largest oil and gas producer in Africa.
According to the defunct Department of Petroleum Resources (DPR), Nigeria has a total of 159 oil fields and 1,481 operating wells.
Nigeria currently has the largest gas reserve in the African continent and the world’s fifth-largest exporter of liquefied natural (LNG).
According to the defunct DPR, Nigeria has a proven gas deposit of 206.53 trillion cubic feet; the gas reserve is projected to increase to 230 trillion cubic feet by 2030.
The new figure represented a major increase of 3.37TCF in proven natural gas reserves; a 1.66 per cent rise from the 203.16TCF recorded on Jan. 1, 2020.
Sarki Auwalu, who was Director of DPR, in a breakdown, said of the 206.53TCF, Associated Gas was 100.73TCF and Non Associated Gas 105.80TCF.
The impact of the unexpected emergence of the COVID-19 pandemic on the global oil and gas industry in 2020 brought huge losses to the industry; consequently, in the last two years, the global oil and gas industry suffered a two-pronged setbacks caused by the imbalance in oil supply/demand and price deflation.
This global issue of course did not happen without a reverberating effect on the Nigerian oil and gas industry and that has not put the nation’s economy in a good stead.
In January, Chief Timipre Sylva, Minister of State for Petroleum Resources, declared 2021 to 2030 as the Decade of Gas Development.
Sylva said the initiative was to transform Nigeria to a gas-powered economy by 2030.
“Our efforts will continue to focus on gas to transmute Nigeria from the conventional dependence on white products to a cleaner, more available, accessible, acceptable, and affordable energy use in gas.
“This will not only cushion the effects of current deregulation but also create enormous job opportunities for Nigerians”.
The NUPRC is in charge of upstream petroleum regulatory activities while the NMDPRA is responsible for oil and gas activities in the midstream and downstream sectors.
NNPC Ltd. was incorporated as a Companies and Allied Matters Act (CAMA) company on September 22 in line with provisions of the PIA.
The NNPC Limited and its subsidiaries would operate under CAMA 2020 without recourse to Government funds, declare dividends to its shareholders and retain 20 per cent of profits to grow its business.
The new company is to be the supplier of last resort for security reasons and all associated costs shall be for the account of the federation.
In October, the NNPC was given approval for the reconstruction of 21 federal roads across the six geopolitical zones of the country.
The approval was given at the FEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
Briefing State House correspondents at the end of the council meeting, the Minister of Works and Housing, Mr Babatunde Fashola said that the construction works on the 1804.6 Kilometers roads is a strategic intervention under the Federal Government Road Infrastructure and Refreshment Tax Credit Scheme.
He explained that the Executive Order 7 allows the private sector to deploy in advance the taxes they would pay for infrastructure development.
OTHER ACTIVITIES
The year 2021 witnessed intensified calls for global transition to cleaner sources of energy and reduction in investment in fossil fuels exploration activities which saw the major International oil companies divesting from crude oil to gas and other renewable resources of energy.
Many of the companies have changed their names from oil companies to energy companies to reflect their current positions as they move to become carbon neutral by 2045.
It is to this end that the world leaders gathered at the United Nations Climate Change Conference (COP 26) in Glasgow, Scotland in November with discussions on energy transition dominating the conference.
President Buhari who addressed the conference demanded for energy justice for Nigeria and other developing countries with hydrocarbon resources.
He said there was need to exploit the available resources as a pathway to attain the net-zero carbon objectives by 2050.
The president noted that even though Africa accounted for only about three per cent of the global carbon emission, the continent still had the responsibility to join the world in combating climate change.
According to him, Nigeria has identified its abundant gas resources as its fuel for energy transition which informed the declaration of the 2021 to 2030 as the “Decade of Gas” by the government.
He also said that the enactment of the PIA would attract investment for the enhancement of gas utilisation. This is in alignment with the various incentives granted to investors.
In November, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, announced that government would remove subsidy on Premium Motor Spirit from 2022.
The minister said that government plans to replace it with a monthly N5,000 transport grant to about 40 million poor Nigerians.
Analysts believe that removal of subsidy would make the price of petroleum products in Nigeria, be at par with its African neighbours which would discourage smuggling.
He said that the 2022 deadline is realistic as the impact of the subsidy removal might be mitigated with the coming on stream of the 650,000bpd Dangote Refinery, Bua Group Refinery, Waltersmith Refinery and other modular refineries.
Nigerians also witnessed an unprecedented hike in the price of Liquefied Petroleum Gas (LPG), also known as cooking gas, in 2021.
The increment forced some low-income families to go back to the use of firewood and stove, which was a setback to the government’s aspirations to deepen gas utilisation in the country.
As at January, the price of cooking gas ranged from N4,500 to N5,000 depending on the location, but in a few days to the end of the year in December, the marketer sold the LPG for between N8,500 and 10,000.
Marketers attribute the hike to global supply challenges, high international prices, limited availability of foreign exchange and high exchange rates.
The GMD/CEO of NNPC, Kyari gave reasons for the increase and assured the nation of NNPC’s commitment to bring down the prices.
On Nov. 5, Well head 1 in Nembe, Bayelsa operated by AITEO Exploration and Production spilled its contents, causing serious damage to the environment.
The company, working with local and international experts, was able to stop the leakage on Dec. 8, while clean up and investigation into the incident was carried out.
Also, NNPC presented a symbolic tax credit cheque to the Minister of Works and Housing Mr Babatunde Fashola, in his office in Abuja.
At the event, the minister dispelled insinuations that the NNPC was taking over road construction from the ministry. (NAN)
Agriculture
FG Calls for Stronger Agricultural Value Chains to Boost Food Security
The Federal Government has called for a stronger agricultural value chains, increased agro-industrialisation and improved market access to boost food security in Nigeria.
The Permanent Secretary, Federal Ministry of Agriculture and Food Security, Dr.
Marcus Ogunbiyi, made the call on Monday in Enugu during the Technical Session of the National Council on Agriculture and Food Security.The theme of the event is “Enhancing Agricultural Value Chains, Agro-Industrialization and Market Access for Economic Growth.”
Ogunbiyi, who doubled as the Chairman of the Technical Session, said that the country must move beyond subsistence farming and embrace a commercially driven agricultural system capable of supporting industries, improving farmers’ incomes and expanding export opportunities.
“Our task goes beyond increasing the volume of food produced.
“We must build an agricultural economy that creates wealth, supports industries, generates decent employment, expands exports, improves rural livelihoods and contributes meaningfully to national economic growth,” he said.
The Permanent Secretary identified inadequate storage and processing facilities, limited access to finance, poor logistics and weak links between farmers and processors as major challenges affecting the competitiveness of agricultural products.
He called for increased investment in agro-processing facilities, rural roads, irrigation, electricity, cold-chain infrastructure and modern technologies to reduce post-harvest losses and promote local value addition.
“Agro-industrialisation is central to the transformation we seek to achieve. It provides the bridge between agriculture and industry.
“It also enables agricultural production to serve as a reliable source of raw materials for manufacturing and other productive sectors of the economy.
“The value of this Council will ultimately be determined by the quality of its resolutions and the extent to which those resolutions are implemented,” Ogunbiyi stated.
He also urged state governments to identify priority commodities, establish clear production and processing targets, attract private-sector investment and strengthen partnerships with research institutions and development partners.
In his remarks, the Enugu State Commissioner for Agriculture and Agro-industrialisation, Patrick Uburu, said that the state government was committed to agro-industrialisation to boost farmers’ income, create jobs and generate wealth.
Uburu, who described the technical sessions as a platform for translating policies into practical solutions, urged delegates to prioritise farmers and agribusiness operators in their deliberations.
He emphasised the need for stronger collaboration among state governments, federal agencies and development partners to address food security challenges, noting that recommendations from the meeting should be measurable and implementable.
The commissioner called for practical policies and investments that would improve farmers’ productivity and expand market access for agricultural produce.
Technical Lead Policy Advisory, GIZ ECOWAS & Nigeria, Dr Abiodun Ihebuzor, advocated for stronger partnerships and increased investment in agricultural value chains to reduce post-harvest losses and improve food security in Nigeria.
Ihebuzor noted that previous engagements at the 46th Council in Calabar and the 47th Council in Kaduna had provided opportunities to advance agricultural development.
He expressed optimism that the current meeting would strengthen collaboration among government institutions, development partners and private-sector operators.
According to him, healthy soils, efficient markets and improved storage systems were essential to sustainable food security.
On her part, Geraldine Onu, Deputy Director, Administration and Supply, Enugu State Ministry of Agriculture and Agro-Industrialisation, disclosed that the State Government had intensified efforts to transform agriculture from subsistence farming to commercial and mechanical farming as part of its economic development agenda.
She noted that investments in irrigation, storage, processing and agricultural infrastructure were aimed at increasing production, attracting private investment, reducing post-harvest losses and improving farmers’ livelihoods.
“In Enugu State, under the visionary leadership of Gov. Peter Mbah, agriculture occupies a strategic position in the state’s economic transformation agenda.
“The initiatives include the 300,000-hectare agricultural land bank, the development of Smart Farm Estates across the 17 Local Government Areas, the 260 Farm Estate Programme and the establishment of a tractor assembly plant,” Onu added.(NAN)
Business News
NELFUND Loan Improves Graduate’s GPA to 3.50
A graduate of the University of Maiduguri, Shianya Ebwaseh, said the Nigerian Education Loan Fund (NELFUND) helped improve her Grade Point Average (GPA) to 3.50 through financial support that enabled her to concentrate on her studies.
Ebwaseh, who graduated from the Department of Zoology, Faculty of Life Sciences, said this in an interview on Monday in Maiduguri.
She said financial difficulties had previously affected her academic performance, as she struggled to meet her daily needs while pursuing her degree.
The graduate said she resorted to selling fried chips and groundnuts on campus to support herself, sometimes missing lectures because of the time and energy required to run the business.
According to her, the introduction of NELFUND’s student loan scheme relieved her financial burden through tuition support and a monthly N20,000 upkeep allowance.
“Before NELFUND, I struggled with my GPA because of financial challenges. I sometimes missed lectures after spending hours frying and packaging chips for sale.
“But when NELFUND came, I stopped the business and concentrated on my studies. My GPA improved to 3.50, which is Second Class Upper,” she said.
Ebwaseh said the financial support also enabled her to attend lectures regularly, purchase learning materials and prepare adequately for tests and examinations without constant worries about money.
She added that her examination scores improved significantly after she began receiving the support, attributing the change to increased concentration and financial stability.
The graduate, who said she accessed the scheme in her third year, described the application process as simple and encouraged other eligible students to apply.
She also said the programme had helped financially disadvantaged students remain in school, particularly those whose parents could not afford tuition fees and upkeep.
Ebwaseh appealed to the Federal Government to sustain the initiative, emphasising that withdrawing the support could expose many students to financial difficulties and possible dropout.
She said the scheme had given beneficiaries an opportunity to pursue their academic ambitions with fewer financial distractions.(NAN)
Business News
FG Seeks Synergy Among Housing Agencies to Boost Housing Delivery
The Minister of Housing and Urban Development, Dr Muttaqha Darma, has called for synergy among government agencies in the housing sector to improve coordination and accelerate housing delivery.
Darma made the call in Abuja on Monday at the stakeholders’ conference on the proposed National Real Estate Regulatory Authority (NRERA).
The conference, themed “One vision, One Ecosystem, One National Housing and Real Estate Plan”, was organised by the Office of the Speaker, House of Representatives, and the House Committee on Housing and Habitat.
The minister said the lack of coordination among government agencies had affected the effective delivery of houses to Nigerians, noting that institutions in the sector operated independently.
“The players within the industry, all of us, operate in silos.
“Federal Housing Authority (FHA) does not even know what the Federal Mortgage Bank of Nigeria (FMBN) is doing. FMBN does not know what the Ministry of Finance Incorporated (MOFI) is doing,” he said.
According to him, the various institutions must work together towards a common goal rather than operate independently.
“Our target is to build houses for Nigerians. We are wasting our time because if we fail, it is us who fail, not the President,” he said.
The minister expressed support for the establishment of NRERA, saying the proposed authority would address the regulatory gaps in the real estate sector.
He said the ministry had reviewed the proposed legislation and recognised its potential to improve the sector.
Darma also disclosed that abandoned housing projects funded by the Federal Mortgage Bank of Nigeria (FMBN) across the country were worth about N38 billion.
He said a survey conducted by the ministry revealed abandoned FMBN-funded housing developments in every state of the federation, including the Federal Capital Territory.
“We realised about N38 billion of contributors’ money, your own money, all the Nigerian workers’ money. N38 billion is wasted,” he said.
He said that the poor management of workers’ contributions could discourage Nigerians from contributing to the National Housing Fund.
The minister urged the committee handling the proposed legislation to ensure that state governments were included in the regulatory framework.
He also called for safeguards to protect homebuyers, tenants, developers and mortgage lenders, including mandatory escrow accounts for buyers and standardised tenancy agreements.
The Managing Director and Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang, said effective regulation was necessary to restore investor confidence in Nigeria’s real estate sector.
Takang said the sector contributed 12.71 per cent to Nigeria’s Gross Domestic Product (GDP) as of June 2026, but remained largely unregulated.
He said the absence of a national licensing system had allowed unqualified individuals to operate as estate agents and developers without adequate accountability.
“Anyone can sell land, anyone can collect off-plan payments, run into tens of billions and get away with it. There are very few countries in the world where these are allowed,” he said.
He called for mandatory licensing of real estate operators and the protection of buyers’ funds through designated project accounts.
“An operator must be licensed with the authorities. No one should be operating in the real estate sector without a licence, no matter which part of the value chain they are involved in,” he said.
He added that buyers’ funds should be kept in protected project accounts and released to developers based on evidence of progress on construction.
Takang said effective regulation would attract domestic and foreign investment, protect citizens and support the Federal Government’s one-trillion-dollar economy target.
He urged the National Assembly to ensure the passage of the proposed legislation, describing it as critical to bringing order and transparency to the real estate sector.


