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Reps Quiz NNPCL Boss, Kyari over $278.185m Unremitted OML 24 Revenue

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Malam Mele Kyari
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By Ubong Ukpong, Abuja

Group Managing Director of Nigerian National Petroleum Corporation Limited (NNPCL) Mele Kyari is now answering questions from the House of Representatives over non-remittance of outstanding sum of $278,184,937.

72 from the transfer of OML 24 to NNPCL/NEPC in 2019.

According to Nigerian Upstream Petroleum Regulatory Commission (NUPRC) records, OML 24 was transferred to NNPCL/NEPC in 2019 for a Signature Bonus of $309,094,374.

72 of which only $30,909,437 has been paid, thereby leaving an outstanding of $278,184,937.72 due to government from the NNPC/NEPL.

Chairman, House Committee on Finance, James Faleke who expressed the concern during an investigative hearing into the cost of crude oil production and its impact on government revenue, alleged that the transfer of the asset reduces the amount of oil accruable to the federation.

Faleke who frowned at the secrecy in the management of the industry observed, “From 2014 to 2024, our costs have increased by about $18 million per day or $6.6 billion per annum over 10 years; and this has not led to an increase in either reserves or production.

“This further implies that for a production of 1 million barrels per day we are incurring costs of $48 million per day or $17.5 billion per annum.”

While demanding for details of the production costs of PSCs and other partnership arrangements Faleke stressed the need for information bothering on the status of the $3.3 billion forward contract executed by NNPCL.

“Has lifting repayments started? Have the whole funds been received? Have the funds been released to the Federal Government as advance payments for taxes, royalties, etc as explained during the justification of the loan?

“We need a list and status of all forward contracts executed by the NNPC/NNPCL from 2014 till date. What assets were used to secure all these contracts?

“We have noticed that NNPCL has been transferring federation crude from the federation to NPDC/NEPL, thereby shifting FG income from a daily profit oil to an annual dividends payment.

“Tell us the revenue implications to the government. Has it benefitted us or has it benefitted only the NNPC?” Faleke stated.

He maintained, “it is important that Nigerians understand the impact of production costs on the available revenue accruable to the Federal Government to execute its programs in the national budget.

“The higher the cost of extracting a barrel of crude oil from the ground, the less funds available to the government and Nigerians.

“The committee has been given a total costs figure of $48.71 per barrel by the FIRS for calculation of Petroleum Profits Tax and Hydrocarbon Tax and this will also be used by the INCL for profit calculations. We need a detailed analysis of how this value was attained.

“Over the years Nigeria’s cost of oil production (both capital costs and overhead costs) has continued to increase reaching new unprecedented highs of over $48 per barrel.

“This implies that as crude oil now sells at about $80 per barrel, for us in Nigeria with a cost of extraction of about $48 only $32 is left to be shared with the oil companies.

“Compare that with $9 in Saudi Arabia, $21 in Norway or $24 for US shale oil and we see that Nigeria has one of the highest costs of oil production in the world.

“If we look further at these costs, we see they have risen steadily in Nigeria from about $30 in 2014 to $48 in 2024.

“To enlighten Nigerians further, if we assume our oil production is 1 million barrels per day; every additional $1 cost per barrel translates to $1 million per day.

“So, from 2014 to 2024 our costs have increased by about $18 million per day or $6.6 billion per annum over 10 years; and this has not led to an increase in either reserves or production. This further implies that for a production of 1 million barrels per day we are incurring costs of $48 million per day or $17.5 billion per annum.

“The committee has been reviewing oil sector figures closely since the beginning of this 10th Assembly and revenues accruing to the Federal Government and foreign exchange inflows to the country have not met previous expectations.

“In this regard we have seen that major revenue losses by government are caused by various factors namely amongst others: drop in available crude oil production (due to oil theft, shut ins, lack of new investments, reduction in output from older wells, etc).

“Pledged production volumes to offset loans and repayment arrangements taken by the NNPCL on their own behalf or on behalf of the federation. Higher costs of oil production.

“To show the importance of this on the well-being of the economy, the latest executive orders issued by Mr. President last week touches on the issue of contracting costs and cost efficiency in the upstream oil sector.

“It is imperative that we, as a nation, endeavor to increase our production volumes and at the same time reduce production costs to increase accruals to the government.

“In alignment with these, new Executive Orders the Committee on Finance has resolved to closely scrutinize federation expenses charged to crude oil production by the NPC and IOCs.

“It is imperative as these quasi-fiscal expenditures and commitments taken on behalf of the federation affect both revenue accruing to government as well as creating a debt profile not monitored by the Debt Management Office,” he noted.

While presenting his position on the concerns raised by Faleke, the NNPCL Group Managing Director, Mele Kyari who painted a gloomy picture of the country’s oil and gas industry, described Nigeria as a war-risk country.

He said, “We understand very clearly that our national revenue is the promise on the oil and gas industry. It’s very crucial that this industry gets all the focus that it deserves and is necessary.

“We also understand that every other sector of the economy is clearly tied to the functionality and performance of the oil and gas, including other taxes that are collected by government like value added tax and so on. Many of them are clearly related to the performance of our industry.

“It is very typical anywhere in the world, the first line of deduction from any revenue is your cost, otherwise there will not be another revenue for you to deduct from.

“And that means you have to continuously invest so that you’ll continue to make more money beyond the investment that you’re making.

“I also confirm that we have a very peculiar industry and it’s very clear that we are one of the most expensive production environment anywhere in the world.

“This is also very true and there can be lamentations on why this is so, but we also face the issue.

“First of all, today, there’s nowhere in the world where people have inserted over 5,000 illegal collections into your production line. In it doesn’t happen anywhere, it’s nobody’s experience, it doesn’t happen any part of the world.

“Today, we have destroyed over 6,000 illegal refineries that are tapping crude oil from our production.

This doesn’t happen anywhere in the world and nobody can factor it into the process. Once you create this situation of uncertainty, which by the way is not new.”

He maintained that incidents have gotten to this scale in 23 years and the end effect is that they reduce production.

He said, “In 2022 about February or April we actually came down below a million barrels per day, including condensate production as a country.

“This is clearly not tenable, not sustainable and that pushes us into the process of bringing the security intervention which is now has seen us back even at one point we have achieved up to 1.7mbpd in a particular day.

“Once you have production decline, it does two things to you. First it reduces production. And the second thing it does is nobody puts his money into your business and that is why no one is investing, no one will lend to you, anybody that will lend will lend on the basis of your current production, your assumption of what you can reasonably do bearing the security circumstances.”

He said there is nowhere in the world this amount of money is spent maintaining security on pipelines.He maintained that the country has huge security risk that is stopping NNPCL from maximizing production and also declining investment in the industry.

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Nigeria, Germany Deepen Economic Cooperation, Strengthen Partnership

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By Tony Obiechina, Abuja

The Federal Government has reaffirmed its commitment to strengthening Nigeria’s bilateral relations with Germany, with renewed focus on economic cooperation, investment promotion, energy partnerships, and the effective implementation of existing agreements.

Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, made this statement during a  visit to the Ministry in Abuja on Monday by the Ambassador of the Federal Republic of Germany to Nigeria, Stefan Rössel.

The minister welcomed the ambassador and his delegation, expressing Nigeria’s appreciation for Germany’s longstanding partnership and support for the country’s economic reform programme, particularly in the early stages of implementation.

He recalled that when German Chancellor Olaf Scholz visited Nigeria, the Federal Government was pursuing significant economic reforms that required support from international partners, including Germany, the World Bank, the International Monetary Fund and the European Union.

The minister said Germany’s support has contributed to Nigeria’s progress in its reform efforts, adding that the country remains grateful for the cooperation and assistance it has received from its development partners.

He also acknowledged Germany’s role in facilitating high-level engagements between the two countries, particularly in trade, investment and energy cooperation, noting that discussions during the Nigerian President’s visit to Germany advanced talks on key energy agreements.

Senator Bagudu further commended Germany’s commitment to multilateral cooperation and international engagement, emphasising the importance of sustained partnerships to address evolving global economic and political challenges.

He noted that Nigeria and Germany had built a strong foundation for bilateral cooperation over the years, with significant opportunities to expand their partnership in areas that support economic growth and development.

The minister disclosed that discussions had covered cooperation involving €25 million and €300 million in export credit guarantees, identifying these as important areas for continued engagement as Nigeria seeks to expand investment opportunities and strengthen its capacity to utilise available resources effectively.

According to him, Nigeria’s reform efforts have created an opportunity to place greater emphasis on attracting investment, strengthening productive capacity, and translating international partnerships into tangible economic outcomes.

He assured the German ambassador that the ministry was prepared to work closely with the German government and its relevant institutions to deepen bilateral relations and broaden areas of mutual interest.

Earlier, Ambassador Rössel expressed appreciation for the warm reception he received, describing the relationship between Nigeria and Germany as strong and longstanding.

The ambassador, who arrived in Nigeria a few weeks ago, reaffirmed Germany’s commitment to building on the partnership’s achievements and to exploring opportunities for further cooperation.

He acknowledged that both countries were operating in an increasingly complex global environment characterised by evolving strategic, political and economic challenges.

Despite these circumstances, Ambassador Rössel expressed confidence that the longstanding relationship between Nigeria and Germany would provide a solid foundation for addressing emerging issues and sustaining mutually beneficial cooperation in the years ahead.

He also welcomed the ministry’s readiness to continue working with Germany, noting the importance of maintaining established partnerships while adapting to evolving circumstances.

In her remarks, the Minister of State for Budget and Economic Planning, Dr Doris Uzoka-Anite, congratulated Ambassador Rössel on his appointment, welcomed him to Nigeria, and expressed the ministry’s readiness to collaborate with him and with relevant German agencies.

She emphasised the importance of translating bilateral agreements and shared commitments into practical outcomes, noting that effective implementation remained critical to achieving the partnership’s objectives.

Dr Uzoka-Anite assured the ambassador that the ministry would continue to facilitate collaboration and support efforts to ensure joint initiatives progressed efficiently and delivered meaningful results.

The Permanent Secretary of the Federal Ministry of Budget and Economic Planning, Dr Deborah Odoh, also welcomed the German delegation, describing Germany as a reliable partner whose technical expertise, knowledge exchange and experience had contributed to Nigeria’s development.

She said the ministry expects the ambassador’s tenure to create further opportunities to strengthen cooperation and to advance the longstanding relationship between the two countries.

The courtesy visit reaffirmed Nigeria and Germany’s shared commitment to sustaining bilateral engagement, deepening economic cooperation, and exploring opportunities for expanded investment and development collaboration.

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DAILY ASSET Appoints Torough, Editor, Names Eze, Deputy

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By Laide Akinboade, Abuja 

As part of efforts to reposition the newspaper for optimum corporate performance, the management of Asset Newspapers Limited, Publishers of DAILY ASSET, has announced the appointment of David Torough as the Editor of the Abuja-based national daily.

A statement by the management said the appointments were part of the company’s new strategy to further penetrate the various states in the country and raise its readership and patronage.

“DAILY ASSET is widely acceptable across the country and to maintain our leadership position, we need to increase management presence, hence the need to create new Bureau offices in some locations outside Abuja and Lagos,” the statement quoted the Publisher/ Editor-in-Chief, Dr Cletus Akwaya to have said.

In a statement yesterday, Publisher and Editor-in-Chief of the fast-growing daily, Dr. Cletus Akwaya said the appointment was part of the new strategy to properly situate the paper for better productivity.

“DAILY ASSET has a commitment with the Nigerian people. We are determined to weather the storm and give Nigerian readers a Newspaper that satisfies their yearnings and reading pleasure and we can only do that with the right set of professionals,” the statement said.

Akwaya, a former Commissioner of Information from Benue State said the difficult times being faced by Nigerians posed a great challenge to the media as the people deserved credible information with which to make choices.

“We have a bond with the people, to offer credible information at all times in the best tradition of the Nigerian Press and on this scale of objectivity, truth and fairness, we pledge to remain steadfast no matter the challenges,” Akwaya was quoted to have said.

He said the newspaper will maiantin its daily print run and circulation to all states of the federation and urged advertisers to take advantage of the deep penetration of the Daily Asset brand to send their messages.

Torough, the new Editor has had a steady rise in the Newspaper in the last five years.

A graduate of Mass communication of the Benue State University, Makurdi, Torough joined the company in 2022 as Benue State Correspondent. He was spotted for his brilliance and redeployed to Abuja the following year and promoted to Deputy News Editor.  He was subswuently named Deputy Editor of the paper, a position he held until the recent appointment. 

Torough  has  attended several journalistic workshops and trainings to properly equip himself for the task ahead.

The statement also said the Management named Eze Okechukwu as Deputy Editor.

Before his elevation as Deputy Editor, Eze has been Deputy Politics Editor and  DAILY ASSET Newspaper correspondent  covering the Senate, having joined the organization in 2021.

Born on March 10, 1975, Eze holds a Masters Degree in Mass Communication from the Enugu State University of Science and Technology.

Eze began his journalism career with Daily Star, Enugu and later worked with Daily Trust Newspaper, Abuja as sports reporter.

Aside from his journalistic excellence, he has a great deal of passion for sports.

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Insecurity: Northern Govs, Monarchs Seek Six-month Mining Suspension

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From Ngutor Dekera, Kaduna and Aliyu Askira, Kano

Northern governors and traditional rulers yesterday called for the suspension of mining activities across the region for six months, blaming illegal mining for worsening insecurity in many states.

The resolution was contained in a communiqué issued after a joint meeting of the Northern States Governors’ Forum and the Northern Traditional Rulers’ Council held at the Sir Kashim Ibrahim House, Kaduna.
The meeting, chaired by the Gombe State Governor and NSGF Chairman, Muhammadu Yahaya, had in attendance the 19 northern governors and chairmen of the 19 states’ traditional councils.
The Forum expressed concern over the escalating violence in parts of the North, including the killings and abductions recently recorded in Kebbi, Kwara, Kogi, Niger, Sokoto, Jigawa and Kano states, as well as renewed Boko Haram attacks in Borno and Yobe.“The Forum extends its deepest condolences and solidarity to the governments and good people of the affected states,” the communiqué said, noting that the attacks on schoolchildren and other citizens had become “unacceptable tragedies” that required urgent collective action.It commended President Bola Tinubu for what it described as the Federal Government’s “firm response” to recent abductions and insurgency threats, especially the rescue of some abducted pupils.The governors also saluted security agencies for their sacrifices on the frontlines.“We resolved to renew our support for every step taken by the President and Commander-in-Chief to take the fight to insurgents’ enclaves in order to end the criminality,” the Forum stated.A major highlight of the meeting was the North’s renewed push for the establishment of state police, with governors and traditional rulers insisting that decentralised policing had become inevitable.“The Forum reaffirms its wholehearted support and commitment to the establishment of state police,” the communiqué added, urging federal and state lawmakers from the region to “expedite action for its actualisation.”On illegal mining, the governors said criminal mining networks were fuelling violence and providing resources for armed groups.As a corrective measure, they asked Tinubu to direct the Minister of Solid Minerals to impose a six-month suspension of mining activities in order to allow for a full audit and revalidation of licences.“The Forum observed that illegal mining has become a major contributory factor to the security crises in Northern Nigeria. “We strongly recommend a suspension of mining exploration for six months to allow proper audit and to arrest the menace of artisanal illegal mining,” it said.To strengthen the fight against insecurity, the governors also announced the creation of a regional Security Trust Fund.Under the proposed arrangement, each state and its local governments will contribute ₦1bn monthly, to be deducted at source under an agreed framework.They said the fund would help provide sustainable financing for joint operations, intelligence-driven interventions and coordinated security responses across the region.At the end of the meeting, the Forum reaffirmed its commitment to unity and collective responsibility.“Only through unity, peer review and cooperation can we overcome the pressing challenges before us,” it declared.The Forum agreed to reconvene on a date to be announced.Meanwhile, Nigeria’s worsening security crisis took a grim turn on Monday as bandits launched fresh attacks in Kano State, abducting 25 villagers, even as the Federal Government raced to secure the release of more than 300 Catholic school children kidnapped in Niger State.In the early hours of Monday, armed bandits invaded Unguwar Tsamiya—popularly called Dabawa—in Shanono Local Government Area of Kano State, whisking away nine men and two women after shooting into the air and assaulting residents. The attackers also rustled two cows.A resident lamented the community’s helplessness: “We cannot do otherwise; most of us cannot leave because we have nowhere to go. This is our place, our land and everything is here.”The assault came less than 24 hours after a similar attack on Yan Kamaye in Tsanyawa LGA, a community along the volatile Katsina border.In Niger State, National Security Adviser Nuhu Ribadu has assured distraught families of St. Mary’s Co-Education School, Kontagora that the more than 300 students and staff abducted on November 21 will return home “soon.” Ribadu, who led a high-level federal delegation to the school on Monday, said the abductees are safe, though he offered no specifics on their location or the status of rescue operations.According to Daniel Atori, spokesman for the Catholic bishop overseeing the school, the NSA reassured officials: “The children are where they are and will come back safely.”The St. Mary’s attack is part of a worrying resurgence of mass kidnappings reminiscent of the 2014 Chibok schoolgirls’ abduction. Security analysts warn that banditry has evolved into a “structured, profit-seeking industry,” with hundreds of Nigerians abducted in November alone.The Kontagora school abduction occurred the same week 25 girls were kidnapped in Kebbi State—victims who authorities say have since been rescued through “non-kinetic” means. About 50 of the St. Mary’s hostages have also managed to escape.Ribadu’s delegation, which included the Minister of Humanitarian Affairs and the Director-General of the Department of State Services (DSS), reaffirmed the government’s commitment to securing the freedom of all abducted citizens.As communities from Kano to Niger continue to bear the brunt of these violent incursions, the escalating spate of kidnappings underscores the urgent national demand for a more decisive and coordinated security response.

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