Economy
NNPC’s Monthly Deductions from FAAC Hit N200bn in December

The Nigerian National Petroleum Company (NNPC) Limited will again make a deduction of roughly N200 billion from the joint federal, state, and local government account when the Federation Account Allocation Committee (FAAC) meets later this month to share the statutory monthly allocation.
The presentation of the national oil company to FAAC in November, indicated that the N200 billion will be the highest amount deducted by the NNPC since it resumed payment of petroleum subsidies in February this year.
In all, it further showed that the NNPC has netted off at least N1.027 trillion from monies accruing to the three tiers of government in the country between February and October as payment for the controversial petrol under-recovery.
To encourage the use of gas as domestic and vehicular fuels, the federal government has said it was leveraging the pricing framework and the Central Bank of Nigeria (CBN)’s gas development fund to create appropriate funding models to support the use of gas among vulnerable Nigerians to tackle the price hike.
While lamenting that the North-west zone of the country consumes only four per cent of the cooking gas consumed in the country, the federal government also stated that the recently signed Petroleum Industry Act (PIA) of 2021 would increase the per capita consumption of gas in Nigeria.
A breakdown of the various deductions indicated that payments have increased progressively, growing from N24.3 billion in February to N60.3 billion in March and N61.9 billion in April this year.
Furthermore, in May, the NNPC removed N126 billion as a subsidy, while June came next with N164.3 billion.
In July, the document stated that N103.2 billion was spent on what the government terms under-recovery.
August had the year’s lion’s share of N173.1 billion.
However, this will be overtaken by the N200 billion planned deduction later this month, while September’s deduction stood at N149.28 billion and the October figure was N163.709 billion.
However, the overall crude oil lifting by the newly rechristened company almost doubled in September, according to the national oil company during the presentation which held on the 17th of November.
In addition, the presentation signed by Bello Abdullahi, on behalf of the Chief Financial Officer, Umar Ajiya, noted that for October, the NNPC spent over N7.7 billion on its strategic holdings and fixing of its pipelines.
Besides, the NNPC stated that product losses amounted to N143.3 billion, stressing that the “value shortfall” of nearly N200 billion would be subtracted later this month when the FAAC meeting holds.
Part of the presentation obtained by reporters read: “The overall NNPC crude oil lifting of 11.49 Mbbls (export and domestic crude) in September 2021 recorded 98.5 per cent increase relative to the 5.79 Mbbls lifted in August 2021.
“Domestic gas and other receipts in the month was N6.78 billion. The domestic gas in the month was N4.07 billion. Feedstock valued at $59.43 million was sold to Nigeria LNG during the period out of which $52.57 million was received during the month.
On domestic crude and gas sales, it added: “The sum of N252,968,629,898.13 was the gross domestic crude oil and gas revenue for October 2021.
“The recoveries were: strategic holding cost and pipeline repairs amounting to N7,757,631,778.84, product losses worth N143,386,571.87, and value shortfall of N163,709,314,928.61. This comprised of the N123,709,314,928.61 for September 2021 and N40,000,000,000.00 value shortfall deferred in June 2021.”
For November operations revenues which are due for sharing in November, the NNPC indicated that almost N200 billion will be netted off or removed as it had done in the previous months.
“The October 2021 value shortfall of N199,007,758,422.75 is to be recovered from the November 2021 proceeds due for sharing at the December 2021 FAAC meeting,” it emphasised.
On its other receipts, the national oil company noted that the sum of $95.63 million being miscellaneous receipts, gas and ullage fees as well as interest income was received in October 2021.
Compared to the previous month, the overall NNPC crude oil lifting was 5.79Mbbls in August 2021, a record of 33.5 per cent decrease relative to the 8.71Mbbls lifted in July 2021.
The NNPC said that Nigeria recorded 1.417 barrels per day million production in September 2021, just like it did in August 2021, adding that while crude oil export revenue received in September 2021 amounted to $8.38 million equivalent of N3.22 billion, for October “there was no crude export revenue”.
In June, the NNPC told the nation that Nigeria was losing about 42 million litres of petrol to the activities of smugglers across the country’s borders, increasing Nigeria’s estimated daily consumption of 60 million litres to 103 million litres, thereby worsening the subsidy payment regime.
Nigeria has not been able to reap the full benefits of rising international oil prices because it doesn’t refine a drop of the fuel it consumes locally, so almost all the revenues are spent importing petrol and paying subsidies, even for neighbouring countries where the product is smuggled into.
On November 23, the Group Managing Director of NNPC, Mallam Mele Kyari, projected that petrol would sell for between N320 and N340 per litre from February, next year.
Stressing that Nigeria would be out of the subsidy regime in the first quarter of 2022, Kyari explained that subsidy would have been eliminated this year, but for certain (unnamed) factors that prevented it.
To ameliorate the impact of the petrol subsidy, the federal government said it was planning to give N5,000 each to 40 million poor Nigerians.
This proposition has been rejected by many Nigerians who believe there’s no sense in replacing a lesser subsidy with a much more burdensome one.
In addition, the labour unions have cautioned the federal government against unilateral removal or stoppage of the petrol subsidy regime, warning that removing it without meeting labour’s demands will be met with stiff resistance.
“There will be no provision for it (subsidy) legally in our system, but I am also sure you will appreciate that government has a bigger social responsibility to cater for the ordinary and therefore engage in a process that will ensure that we exit most subtly and easily,” Kyari said.
The NNPC boss spoke during the presentation of the November edition of the World Bank Nigeria Development Update, titled: “Time for Business Unusual.”
In August, Chairman of the Nigerian Governors’ Forum, and Governor of Ekiti State, Dr. Kayode Fayemi, speaking on behalf of his colleagues in reaction to the new Petroleum Industry Act (PIA) signed by President Muhammadu Buhari said he didn’t believe in the credibility of the subsidy figures churned out by the NNPC.
Meanwhile, the federal government said it was leveraging the pricing framework and the CBN’s gas development fund to create appropriate funding models to support the offtake of gas among vulnerable Nigerians to tackle inflation.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, disclosed this yesterday during the inauguration of a 100-metric tonne LPG (cooking gas) storage and bottling plant, constructed by Butane Energy Limited in Kabukawa, Katsina State.
Sylva, represented by the Permanent Secretary of the Ministry, Dr. Sani Gwarzo, explained that the pricing of LPG was a major threat to gas affordability and penetration in the country.
He said the declaration of Decade of Gas by President Muhammadu Buhari, was to reinforce Nigeria’s aspiration to leverage on its gas resources estimated at 206 TCF to develop the country’s national industrial, commercial and agricultural base.
He reiterated that the federal government had embarked on numerous gas-based initiatives such as the Nigeria Gas Flare Commercialisation Programme, the National Gas Expansion Programme (NGEP), and the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline to accelerate economic development.
“I cannot conclude this speech without touching on gas pricing which is a major threat to gas affordability and gas penetration.
“The federal government is leveraging on the gas pricing framework and the CBN gas development fund to create appropriate funding models to support offtake of gas especially among vulnerable groups”.
He added, “The deliberate focus of this administration to develop the gas sector is largely the driving force behind NCDMB commercial intervention in partnering with the private sector, to establish Butane LPG bottling plant in several northern states including Katsina, Kano, Kaduna, Bauchi, Niger, and the FCT,” he stated.
The minister averred that the passage of the Petroleum Industry Act of 2021 by President Buhari has reinforced the government’s commitment to transform the oil and gas industry by creating an enabling environment for accelerated investment in exploration and field development projects.
This, he said, would pave the way for the integration of host communities into the benefit plans of the industry and entrenchment of local content as the driving philosophy for oil and gas transactions in Nigeria.
“In effect, the PIA and the intensive investment in gas transportation, storage, and marketing infrastructure will no doubt increase per capita consumption of gas in Nigeria which currently stands at 80 cubic meters per capita consumption despite our huge gas reserves”.
Earlier, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote, said despite the utilisation of 1,000,000 metric tonnes of LPG in 2020, Nigeria has one of the lowest per capita LPG consumption in Africa.
He affirmed that available data from the office of the National Gas Expansion Programme revealed that LPG utilisation in the North-west was four per cent compared to 14 per cent in the South-west and 15 per cent in the South-east.
“That is why we chose to partner Butane Energy to increase the level of LPG utilisation in the North as they understand the market in the region, possess the technical capability and the determination to embark on such a venture,” he added.
In his remarks, the Chairman of Butane Energy Limited, Mr. Isa Inuwa, said by September, the company would have five gas plants with a total storage capacity of 820 metric tonnes.
He noted that the five gas plants would be located in Kano, Katsina, Kaduna, Bauchi, Niger, and the Federal Capital Territory (FCT) with the capacity to process 9,200 12.5kg of cylinders.THISDAY
Economy
SEC Advocates Advanced Financial Inclusion by 2030

By Tony Obiechina, Abuja
The Securities and Exchange Commission (SEC) has stressed the need for Nigeria to harness its demographic dividend to advance financial inclusion through investments by 2030 for national survival or face deepening inequality.
The Director-General of the SEC, Dr Emomotimi Agama said this at the United Capital Asset Management Investment forum on Wednesday in Lagos.
Agama, in his keynote address titled: “Advancing Financial Inclusion through Investments: Bridging
Nigeria’s Knowledge and Wealth Gap,” said Nigeria must harness its demographic dividend to boost investment.
“Our theme, Advancing Financial Inclusion through Investments, is not aspirational; it is foundational to national survival.
“We stand at a pivotal moment. By 2030, Nigeria can either harness its demographic dividend or face deepening inequality. The knowledge-wealth gap is not merely an economic challenge; it is a moral imperative,” Agama said.
He said the term inclusion should be reframed as active financial involvement, where access meets empowerment, and capital becomes a tool for transformation.
Agama said that closing the financial inclusion gender gap could lift 700,000 Nigerians from poverty.
He said, “Nigeria has a great population yet we have a tiny drop of this number of persons involved in the capital market.
“That one reason for poverty, because we are running from money. We have to do something. Our market capitalisation is an opportunity to do something,
We all have
“We need to change the narrative and move the market forward. We must reach out to make the difference. We are committed to protecting investors and developing the market. Our goal is to do the right thing no matter whose ox is gored. We will work by the principles of fairness and equity to change the market. We will provide a fair ground for everyone to aspire.
He noted that MTN Nigeria’s share offering drew 150,000 new investors – 75 per cent women, 85 per cent under 40.
Agama recommended a four-pillar strategy for bridging the gaps.
He listed the four-pillar strategy as democratisation of financial knowledge, catalyse MSME Investment Channels, blended Finance Vehicles: Partner with Bank of Industry (BOI) to de-risk loans for women-led SMEs.
“We need to educate people about finances. As we drive this market, we do so for a purpose, I enjoin everyone to be the disciple and the apostles. Getting this market to move is a deliberate action,” he added.
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Economy
NPA Assures of Over N1.27trn Revenue in 2025

By Ubong Ukpong, Abuja
The Nigerian Ports Authority (NPA) on Monday assured that it would take into the coffers massive revenue of over N1.27 trillion in 2025, representing a 40 percent increase from the N894.86 billion it realized in 2024.
This ambitious target, the Authority said, was anchored on sweeping modernization efforts, the full activation of the Dangote Refinery’s marine operations, and the deployment of cutting-edge technology to enhance port efficiency.
Managing Director of the NPA, Abubakar Dantsoho, disclosed this in a presentation during his agency’s budget defence session wih the House of Representatives Committee on Ports and Harbours, where he defended the agency’s 2025 budget estimates and provided insights into its 2024 performance.
“Our 2025 budget proposal is more than figures, it reflects our aspirations for a more efficient, globally competitive port system,” Dantsoho told lawmakers, adding that over 70% of the proposed expenditure will go into capital projects.
For 2024, the Authority surpassed its revenue target of N865.39 billion, posting an actual realization of N894.86 billion.
However, Dantsoho revealed that only N417.86 billion, less than half of the approved N850.92 billion expenditure, had been spent as of the time of reporting.
Despite this, NPA made a record contribution of N400.8 billion to the Consolidated Revenue Fund (CRF) in 2024, nearly double the N213.23 billion remitted in 2023. Of this amount, a staggering N344.7 billion was deducted at source.
“This shows our unwavering commitment to national revenue generation, even when our own operational liquidity is affected,” the NPA boss stressed.
Dantsoho said the projected revenue increase is premised on several key assumptions and developments, including: The full operation of the Dangote Refinery, which alone is expected to draw in over 600 vessels annually through its Single Point Mooring (SPM) system; the commissioning of upgraded terminals at WACT and OMT, which will enhance container traffic; the implementation of automation tools such as the National Single Window, Port Community System (PCS), and Vessel Traffic Management System (VTMS); and increased cargo volumes stemming from global disruptions, including the Russia-Ukraine conflict, which has affected global trade routes.
He said the 2025 revenue is expected to come from the following key sources: Ship Dues, N544.06 billion; Cargo Dues, N413.06 billion; Concession Fees, N249.69 billion; and Administrative Revenue, N73.07 billion
Of the proposed N1.14 trillion total expenditure for 2025, N778.46 billion is earmarked for capital projects.
This investment, he said, will target the revitalization of critical infrastructure, including the Calabar, Warri, and Burutu ports and channels, and enhance towage services, channel depth, and compliance with international security conventions.
“Investments in infrastructure and technology are non-negotiable if we are to stay competitive regionally and globally,” Dantsoho emphasized.
He cited increasing competition from neighboring ports and aging assets across Nigeria’s coastal corridors.
The NPA also intends to address technology gaps by upgrading legacy systems and bolstering cybersecurity, ensuring Nigerian ports meet global standards for digital operations.
“We can say that with timely access to internally generated revenue and capital funds NPA would deliver the kind of impact Nigeria expects,” he said.
Chairman of the Committee, Hon. Nnolim Nnaji, urged the NPA to ramp up performance, improve port infrastructure, and play a greater role in addressing Nigeria’s revenue and unemployment challenges.
Nnaji said the ports remain a critical pillar of Nigeria’s economy, and urged the agency to meet rising expectations despite operational challenges.
“No country can thrive economically without high-performing ports. They are the economic heartbeat of every nation, determining how buoyant a country is through the flow of imports and exports,” Hon Nnaji said.
The committee praised NPA for its performance.
Nnaji stressed that the NPA’s performance has implications beyond maritime activity, noting that increased port output can significantly boost job creation across several sectors.
“The Nigerian Ports Authority is not just a revenue-generating agency, it is a national asset in terms of employment and economic impact.
“We expect to see detailed strategies on how to improve revenue generation and expand employment opportunities through your 2025 budget,” he said.
The lawmaker also pointed to growing interest in the development of new ports across the country but cautioned against neglecting existing port infrastructure.
“As we welcome investment in new ports, we must not abandon the old ones. Maintaining and upgrading our existing ports, both in the Eastern Corridor and the Western axis, is essential to long-term sustainability,” he added.
The Committee called for a clear outline from the NPA on how its 2025 financial plan will address pressing national concerns and reaffirm Nigeria’s competitiveness in regional and global maritime trade.
Economy
Senate Sets N10trn Revenue Target for NCS, Urges Agency to Curb Smuggling, Illicit Drugs

By Eze Okechukwu, Abuja
The Senate, through its Committee on Customs has set a revenue target of N10 trillion for the Nigeria Customs Service for the 2025 fiscal year, instead of the initial N6.584 trillion given to her earlier on while urging the agency to clamp down on smuggling and Illicit drugs.
The Chairman of the Committee, Senator Isah Jibrin (Kogi East), who gave the agency the marching order yesterday in Abuja during the budget defence of the revenue driving agency however commended her for exceeding its 2024 revenue target of N5.
079 trillion.The NCS team led by Deputy Comptroller General, Jibo Bello who represented the Comptroller General presented the 2024 budget performance with a revenue target of N5.
079 trillion, stressing that the proposal was exceeded by over a trillion naira.The Committee, obviously impressed by the performance commended NCS before asking them to go ahead and present the 2025 budget proposal, which the agency tied at N6.584 trillion revenue target with an expenditure of N1.132 trillion.
Following their presentation, members of the Senate Committee on Customs unanimously approved the recommendation of the revenue target of N6.584 trillion and the expenditure of N1.132 trillion for the 2025 financial year.
The Committee will subsequently present the budget proposal to the Senate at plenary most likely this week as the red chamber resumes today after a long recess tied to Eid celebration.
In his final remarks, Senator Jibrin emphasised the need for the NCS to rise up in terms of its surveillance with respect to illicit drugs and smuggling “to ensure that, as much as possible, you should be on top of your game”.
He said there are so many illicit drugs flowing all over the place, which according to him “is contributing to the issue of banditry in Nigeria because most of these guys are on drugs. What I’m saying is that, in addition to your revenue drives, you should also be mindful of some of these other functions.