Nigeria loses N2.1 trillion to Niger Delta militants, vandals in 2016

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Armed militants Photo: Buzz Nigeria

The Nigerian National Petroleum Corporation, NNPC, said from January 2016 till date, government lost $7 billion (N2.1 trillion) to the activities of militancy groups and oil pipeline vandals in the Niger Delta region.

The Group Managing Director of NNPC, Maikanti Baru, said this on Friday in Abuja at the 2016 Fiscal Liquidity Assessment Committee Retreat.

Mr. Baru made a presentation on “Global Oil Prices, Militancy and Terrorism and its Impact on Government Revenue in Nigeria’’.

He said that apart from security challenges in the region, politics, judiciary, oil prices and production cost continued to impact negatively on the oil industry.

“Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets.

“This implies that 60 per cent of oil production lost is NNPC-FGN equity.

“At an estimated price of $45 per barrel, the total 2016 revenue loss to the Federation Account translates to about $7 billion .

“This is money that the government could have used to achieve major infrastructural milestones.

“ This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of National budget; and a new 1,700 kilometre pipeline,’’ Mr. Baru said.

To resolve this, Mr. Baru said the NNPC planned to increase security of oil and gas assets, improve its community social responsibility and the Amnesty programme.

He said the NNPC planned “to renegotiate terms of Production Sharing Contract with deep offshore operating companies because with the current agreement, only 17.7 per cent of total revenue comes to government.”

The Minister of Finance, Kemi Adeosun, said that the ministry had succeeded in reducing Federal Government’s monthly wage bill from N165 billion to N142 billion by eliminating 33,000 ghost workers.

Mrs. Adeosun, represented by the Head of the Efficiency Unit at the Ministry, Patience Oniha, said that the ministry had discovered that it could also save money by reviewing government’s procurement processes.

She said that through the Efficiency Unit, the ministry had succeeded in negotiating huge discounts for government officials travelling on local and international flights for official assignments.

Mrs. Adeosun said that the ministry had also been able to save cost by banning sitting allowances, souvenirs at government’s functions and unnecessary adverts which had contributed to the high recurrent expenditure in government.

(NAN)


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  • arewethishopeless

    What baffles me is that in this century, we still need physical verification exercises to eliminate ghost workers. This is absurd. The question is how do private companies with large workforce track personnel costs to the nearest dollar without any wasteful physical verification exercise?

    The solution lies with the organisation’s hierarchy; each supervisor/manager confirms how many direct reports worked and for how many hours on a weekly basis. Each week, the central HR posts personnel lists/headcount of direct reports to each manager/supervisor. They in turn confirm the personnel’s’ attendance at work for the previous week. They sign and commit to the information provided and send this back to the central HR. The information from each manager/supervisor (N) of hours worked of their direct reports are available for review by the immediate superior (N+1). If the (N+1) does not request any reviews within 24 hours, it means the (N+1) commits to the list/headcount information submitted. That’s all that is required. Any falsification will put the N and N+1 in trouble.

    The FG can save another 40BN monthly by simply implementing this now. Physical verification may be implemented randomly on departmental basis and not entire MDAs.

  • Gary

    So how much was involved in the Amnesty Program, Maritime University and NIMASA deals for which the DSS went after the Niger Deltans to get at GEJ and his people.
    The ongoing blowback is the tragic price the whole country is now paying for the thoughtless jackboot approach to fighting corruption.

    The sad fact is that despite the national trauma they have caused, Buhari’s security operatives continue to delude themselves and their family patriarch that their strong arm tactics are working.
    When all they need do is a simple cost-benefit analysis of their bone-headed Gestapo approach.

  • Iskacountryman

    we are going to barb these boys heads…wait and see…

    • M. Mariam(Lt. Col)

      free speech.. that is all it is…. you are no barber.

  • Kay Soyemi (Esq.)

    Baba Buhari, time to think out of the box on the NDA matter.

    Either get an elitist Sapper Unit out to exterminate the economic saboteurs or get mercenaries in to do same. These ones are not fighting to protect their environment or people. They need not be treated with kid gloves.

    • Otile

      Why not put on the gloves and do battle with your tribal enemies in the Niger Delta? Why do you expect others to risk their lives to kill your enemies, loot their belongings and steal oil for you? Coward.

      • Kay Soyemi (Esq.)

        Tribal what?

        Ode

    • 9ja don baje

      It is only in Nigeria that the man who later accepted appointment as PTF Chairman under the MOST CORRUPT government ever in Nigeria’s history and then commandeered more than 200 PTF vehicles for private use in his home in Kaduna would not be in jail today.

      Remember, he later said that Abacha did not loot anything from Nigeria! This is the man who, in his supporters’ opinion, will have zero tolerance for corruption!

      **”It is only in Nigeria that the man who, as PTF Chairman, embezzled billions of Naira through over-invoicing of supplies and the supply of fake and expired drugs to hospitals is now a disciplined man. Why did Ahmed Salihijo, whose consortium was in charge of all the PTF contracts under Buhari, commit suicide when former President Obasanjo commenced the probe of PTF in 1999?

      **”It is only in Nigeria that the man who lost election and incited his supporters to violence which claimed the lives of innocent people including NYSC members and had the nerve to still open his bigoted mouth and criticise actions designed to stop continued madness is now a disciplined man. God!

      **”It is only in Nigeria that a former Head of State would ask Muslims not to vote for Christians and, when he is criticised, would later lie on Radio Nigeria, Kaduna, that what he meant was that Muslims should vote for only those who can protect their religion.

      “It is only in Nigeria that a former Head of State would refuse to condemn Boko Haram murderers in their evil activities including bombing innocent Christian worshippers in churches but is quick to support amnesty for the same murderers.

      **”It is only in Nigeria that a former Head of State will speak bitterly against a State of Emergency designed to root out monstrous criminals but turns around to advocate finishing off Ombatse cult members who have done exactly the same thing as Boko Haram.

      **”It is only in Nigeria that a former Head of State CANNOT speak or write simple and correct English and prefers to speak vernacular most of the time and then his supporters would insist that his meaning was lost in translation.

    • M. Mariam (Col)

      I suggest you look for oil in your own state. This is the only way you’ll ever experience any pollution right next to your living abode. It is misguided and idiotic comments like this that toughen those fighting for total control of their resources I think you are a despicable and useless ingrate who has yet to learn the art of diplomatic talk.

      • Kay Soyemi (Esq.)

        Who let the dog (you) out?

        Woof, woof.

  • vagabonds in power

    Federal Government rent seekers and dependants for Life. Dictator Buhari’s second Agenda, is to blanket and ISLAMIZE Nigeria, gradually and covertly at first, and then with violent Jihad. He has already started the STEALTH JIHAD ON NIGERIANS by taking up membership in 8 Islamic organization around the world, without asking the Legislature or the Nigerian People for approval to do so.

    In the effort of his covert stealth Jihad, he set out to silence every southern indigenes that had an opposing voice. Either by trumped-up corruption charges, even against persons that were not elected into public office, but opponents all the same. Individual, like Chief Olisah Metu, Fani Femi Kayode, Nnamdi Kanu, and other Top Politician from the PDP, including Deputy Senate President , Chief Ike Ekweremadu, Were either publicly humiliated, hounded into jails, or bogus charges and allegations of forgery brought against them. These were all done to intimidate and salience potential dissenters . Well, I certainly can live with a guy without an academic certificate to parade, But an Islamist Jihadi TERRORIST wrapped in NATIVE INTELLIGENCE, IS A DEADLY COMBINATION, IN A SUCIDE BOMB WAITING TO DETONATE, AS YOU CAN ALL SEE NOW. GOD SAVE NIGERIA !

  • No Ijaw owners of oil wells

    Alfred James Petroleum OPL 302 1991 Adewunmi Sijuade, Goke Sijuade, Adedeji Sijuade, Olayinka Sijude, Adeyemi Osiyemi and Femisola Awosika, with A.O Adeyinka as Chairman

    2 Soglas Nigeria Limited OPL 226 1991 Oscar P. Udoji, P.E Udoji, E.E. Nwosu, with J.O. Udoji as Chairman

    3 NorthEast Petroleum OPL 215, 840 &902 1991 Kommer Complex Limited, Nwokema Ngozi Mbu, Abubakar Jubril and Ashiru B. Aliu, A. Ayankoya with Saleh Jambo as Chairman

    4 Optimum Petroleum OPL 310 1992 R.D. Adelu, Yusuf N’jie and O.A. Aremu with Ibrahim Bunu as Chairman

    5 Sunlink Petroleum OPL 238 & OPL 311 1993 Olaniyi Olumide, Hayford Alile, Samuel Bolarinde, Richard Adelu, Martins Olisa, John Brunner and Emmanuel Ojei

    6 Express Petroleum OPL 108 & 227 1995 Ahmade Rufai, Tajudeen Dantata, Dalhatu Gwarzo, Lawan Omar with Aminu Alhassan Dantata as Chairman

    7 Dubril Oil Co. Nigeria OPL 96 1987 B.N. Itsueli, C.A. Itsueli, O.O. Itsueli, A.E. Ihuegbu with U.J. Itsueli as Chairman.

    8 Amni Int. Petroleum OPL 112 &117 1998 &1999 E.C Edozien, Tunde Afolabi with Sanni Bello as Chairman

    9 Atlas Petroleum Int. Nig Ltd OPL 109 1996 Umaru Ndanusa, Ikechukwu Joseph, Mohammadu Murtala with Arthur Eze as Chairman

    10 Consolidated Oil OPL 103, 458, 136 1993, 1998 &2006 O. Adenuga and Ebi Omatsola with Mike Adenuga as Chairman

    11 Oriental Energy Resources OPL 115 1999 Usman Danburan, Jibril Mohammed Indimi with Senior Mohammed Indimi as Chairman

    12 Cavendish Petroleum Nig. Ltd OPL 110 1996 Gambo Gubio with Mai Deribe as Chairman

    13 Allied Energy Resources Nig. Ltd OPL 120 & 121 2001 Mickey Lawal as Director with Kase Lawal as Chairman

  • Prof Sagay

    GO AND OPERATE SLAUGHTER SLABS AND COLD STORES FOR YOUR CATTLE INSTEAD OF DEPENDING ON NIGER DELTA OIL -BUHARI’S ADVISER Prof Sagay SAID IN 2014
    “They have cattle in uncountable numbers. All they need to do is to go into the chilled beef industry, have ranches, slaughter their cows in factories, have corn beef industry, package these things and import. They have vast lands. They can go into agriculture, which is a renewable type of activity. They have abandoned all that, just because of Niger Delta oil proceeds that they can get without working. What I am saying is that the process they have set in motion is self-destructive. They carried it to the National Assembly, stalled all proceedings there with regards to true federalism, derivation and resource control. But at the end of the day, they are shooting themselves in the foot.”

    – Prof Itse Sagay, “Nigeria: Why North Won’t Allow True Federalism”, Daily Independent (Lagos), 11 August 2014

    P.S

    The Learned Silk is currently the head of the President Buhari Presidential Advisory Committee against Corruption, which is supposedly set up to advise the country leader and his administration on anti-graft war and implementation of reforms in the criminal j

  • smart G

    Please this 2.1 trillion loss should be captioned ” NNPC fails to remit 2.1 trillion or Ask sanusi to caption it 2.1 trillion missing, petroleum minister to explain “

  • SECESSIONIST

    Nigeria cannot lose what it does not have. This journalistic recklessness and mischief should be abated as it is becoming endemic especially amongst PT’s reporters. It’s not possible in the physical real and even in the spiritual and psychological realm to lose what you never had, not even in the dream land. A lie repeated over and over again does not become truth. The wealth/Money is for Niger Delta – A group of well defined 6 States of Southern Nigeria
    1. Akwa Ibom
    2. Bayelsa
    3. Cross Rivers
    4. Delta
    5. Edo
    6. Rivers

    …and by the way, the men are not MILITANTS but simply FREEDOM FIGHTERS. They don’t kill civilians. They don’t burn or bomb civilians. They simply fight to control their own resources and get freedom for their people.It is Nigerian Govt and its useless Army who are actually the Militants.

    We employ AVENGERS to begin the systematic and calculated detonation of all oil wells in the Niger Delta owned illegally by aliens from the North and West of Nigeria. Just bomb every of our (Niger Delta) oil well illegally owned by these crooks. We must not allow the nonsense to continue. Imagine the clueless so called Federal Govt saying only yesterday that it would spend a paltry $20b on developing the Niger Delta – What an insult! Can you imagine that? How dare you say you will develop the Niger Delta and you are announcing it and expecting people to applaud. Its pure st0u.pidity. Niger Delta owns the money and therefore will not accept that nonsense “chicken change” as development fund. We (Niger Delta) have been giving Nigeria all our resources for development funds since 1957 and the crooked lazy politicians from the North and West have been stealing into their pockets. Enough is enough.

    Secession is the goal of the Niger Delta people. We do NOT want to be in Nigeria anymore. Never!

  • Bomb ALL oil wells

    Niger Delta Avengers should bomb and destroy all oil wells owned by foreigners (North and West of Nigeria) and ensure that ownership is reverted. If Fulanis are killing people just because they want their Cattle to graze, then what would they have done if they owned oil on their land talk less of allowing outsiders to own it? The Niger Delta MUST protect its resources with guns too…the same way Fulani herdsmen protect their Cows.

    • paul irumundomon

      Thank you

  • Prof Sagay

    GO AND OPERATE SLAUGHTER SLABS AND COLD STORES FOR YOUR CATTLE INSTEAD OF DEPENDING ON NIGER DELTA OIL -BUHARI’S ADVISER Prof Sagay SAID IN 2014

    “They have cattle in uncountable numbers. All they need to do is to go into the chilled beef industry, have ranches, slaughter their cows in factories, have corn beef industry, package these things and import. They have vast lands. They can go into agriculture, which is a renewable type of activity. They have abandoned all that, just because of Niger Delta oil proceeds that they can get without working. What I am saying is that the process they have set in motion is self-destructive. They carried it to the National Assembly, stalled all proceedings there with regards to true federalism, derivation and resource control. But at the end of the day, they are shooting themselves in the foot.”

    – Prof Itse Sagay, “Nigeria: Why North Won’t Allow True Federalism”, Daily Independent (Lagos), 11 August 2014

    P.S

    The Learned Silk is currently the head of the President Buhari Presidential Advisory Committee against Corruption, which is supposedly set up to advise the country leader and his administration on anti-graft war and implementation of reforms in the criminal j

  • paul irumundomon

    The general with out high school papers, will compensate Nigerians. It will get to ten trillion very soon.