NNPC oil earning, fuel allocation secrets

October 6, 2012 18 Comments »
NNPC oil earning, fuel allocation secrets

• Document reveals N13tr revenue in 2011
• South East gets least fuel allocation among 6 zones

From IKENNA EMEW, Abuja

Amid fuel scarcity in some parts of the country, an official document of the Nigerian National Petroleum Corporation (NNPC) has revealed that the South West, South South and North Central received large allocations of refined petroleum products in the country.

Also, the document revealed that the corporation made a total earning of N13, 879, 607, 856, 000 last year, based on the market price of US$100 per barrel of oil and at an exchange rate of US$1 to N160. This gross earning accrued to the corporation from a total of 867, 475, 616 it sold. The 73-page document, which emanated from the Corporate Planning and Strategy Division of the NNPC, indicate that 127, 426, 508 barrels of oil accrued to the Federal Government last year, as quota for the federation account.

Of the total income NNP made, the Federal Government, got N2, 038, 824, 128, 000. The document showed that Shell Petroleum Development Company (SPDC) had a lion’s share in crude production, among the seven operating companies of the NNPC/JVC deal. Next to Shell, in gross crude production in the year, was Mobil Producing Unlimited, with a total of 107, 577, 069 barrels, while Shell had 175, 995, 442 barrels.

Distribution of fuel nationwide

Analysis of the document showed that the South East region suffered, in the area of distribution of petroleum products by the NNPC. A table of the quota of product allocation to the geopolitical zones and Abuja indicates that the five states of the South East put together received the least allocation of Liquefied Petroleum Gas (LPG), Premium Motor Spirit (petrol), House Hold Kerosene (HHK), Aviation Turbine Kerosene (ATK), Auto Gas Oil (AGO) (diesel), Low Fuel Poor Oil (LFPO), lubrication oil, greases and brake fluids.

The Federal Capital Territory (FCT), Abuja got more allocation than the zone. The document showed that the South South zone, made up of Rivers, Bayelsa, Delta, Edo, Cross River and Akwa Ibom states, received 28 percent of petrol distributed locally in April, 26.43 percent in May and 33.14 percent in June this year. This is against the South East, comprising of Imo, Anambra, Enugu, Ebonyi and Abia states, which received only two percent of petrol supplies in April, 3.21 percent in May and 2.74 percent in June. During the same period, the North East zone of Adamawa, Bauchi, Borno, Gombe, Taraba and Yobe states got four percent, in April, 5.69 percent, in May and 4.23 percent, in June.

The South West zone, with Ekiti, Lagos, Ogun, Ondo, Osun and Oyo states, received 34 percent of total supplies in April, which jumped up to 35.53 percent in May. The supply however, dropped to 30.68 percent in June. The North West region of Jigawa, Kaduna, Kano, Katsina, Kebbi, Sokoto and Zamfara, received only four percent of total supplies in April, 6.31 percent in May and 5.87 percent in June. North Central, which comprises of Benue, Kogi, Kwara, Nasarawa, Niger and Plateau states, received 24 percent of total local supplies from NNPC in April, 17.49 percent in May and 20.22 percent in June. Meanwhile, Abuja, the hub of government activities, with a lower population than any of the geopolitical zones, received four percent of petroleum products distributed in April.

This rose to 5.33 percent in May but dropped to 3.13 percent in June. The document also showed that 12.97 million litres of petrol was sold daily in the country in April. This figure dropped to 10.76 million litres in May and 9.99 million litres in June. This represents a total distribution, by both NNPC and Independent marketers, of 389.06 million litres of petrol for the month of April, 333.53 million litres in May and 299.83 million litres in June this year.

Sales data

Similarly, the document showed that 2.55 million litres of diesel was sold everyday in April, averaging a total of 76.68 million litres, while 1.12 million litres of same product was sold daily in May. This grossed 34.78 million litres of diesel for the month. It also stated that 66.56 million litres of diesel was sold in June, representing 2.23 million litres average daily sales for the month. Despite high-level scarcity of kerosene, the NNPC document revealed that 57.33 million litres was sold in April, at an average of 1.91 million litres daily.

This figure however, dropped in May, as only 26.59 million liters got dispensed in the course of the month at 0.86 million litres daily. No reason was given for the shortfall in kerosene distribution. The documents indicate that a total of 867, 475, 616 barrels, representing 2.38 million barrels per day of crude oil and condensate was lifted for domestic and export purposes in 2011. According to the NNPC, the figure showed a decrease of four percent against total amount lifted in 2010. “Of the total quantity, NNPC lifted 386, 504, 028 barrels, or 45 percent of the total, averaging 1.05 million barrels per day for domestic utilization and export,” the document said. A breakdown of the sales indicate that only 127, 426, 508 barrels was paid into the federation account, while the balance were paid to other sources.

Despite stating that a total of 867, 475, 616 barrels of crude oil and condensate was lifted for domestic and export purposes, the NNPC document stated: “Total crude oil and condensate production for the year was 866, 245, 232 barrels, giving a daily average of 2.37mmb/pd.” The shortfall of 1, 230, 384 mmb/pd is unaccounted for, as the document did not state how the disparity came.


18 Comments

  1. Mayor October 5, 2012 at 9:33 pm - Reply

    Corruption is the only unifying factor in Nigeria.

  2. godwin October 6, 2012 at 1:55 am - Reply

    God is opening their nyash one by one!

  3. jahili October 6, 2012 at 4:42 am - Reply

    I say let my people go!
    Check every statistics/quota on every sector of the economy of nigeria. The Ibo is marginalized, the reason why you do not see it, is very clear, Igbos are egalitarian and republican in nature. They are hardly interested in hand out of any type, they are about what can I impact by myself (Ike kete, Orie). Please let my people go, so that we may chat our own course. Whether millitary, civilian, Obj, IBB, Jonathan….the story remains the same. Igbo hatred in this country knows no bound. You can disagree, you are entitled to your opinion, but the antecedents and the numbers do not lie.

  4. Sam Don October 6, 2012 at 6:18 am - Reply

    i think allocation is based on consumption and capacity of distributors to lift and sell. we also need to see the actual consumption figures in these zones. this will show the movement of the allocated products; whether they were consumed in those places they were allocated or moved to meet demands in other areas. in which case there could be suggestion as to how to better allocate. me think this should be purely a business issue of demand and supply rather than equity in allocation.
    Generally i am not too sure of the purpose of this write up. the writer does not bring out the real essence of the piece which i thought was probably to request NNPC to account for the difference in the crude oil figures between what was produced and what was lifted for sale; if this figure is either in stock as unsold and where it is held. otherwise a case of theft or corruption could be established for which the officials would be required to face the music.
    My fellow Nigerians, reading ethnic coloration to purely business matters does not help the growth and development of this country.

    • Mayor October 6, 2012 at 9:08 am - Reply

      Mr Sam, I like your line of debate. Even the greatest fraud in the world called the ‘federal character system’ perfected and perpetrated in Nigeria to give unmerited jobs, positions and resources to some Nigerians at the expense of highly qualified and competent Nigerians is also based on demand & supply? Answer the question. Let me tell you that many Nigerian professionals & experts alike had to leave this country for jobs in other lands because they were denied employment in their own country due to federal character fraud. Dispute this. Otherwise, believe it that the only remaining uniting factor in Nigeria today is corruption & not genuine conviction on the desirability of unity as a tool for economic growth & development.

  5. Nky October 6, 2012 at 6:23 am - Reply

    Unequitable distribution of resources . Igbos had been largely marginalized.

  6. cossy October 6, 2012 at 6:39 am - Reply

    Why are the Yorubas and Hausas crying for the truth Chinau Achebe has told them in a book he recently released….the genocide on Igbos planned by Gowon and Awolowo are still going on economically. Untill the truth is embraced in Nigeria, the God of truth will never let peace and progrss come in. Biafrans will survive.

  7. Henry October 6, 2012 at 8:20 am - Reply

    @ Sam Don, you have said it all thank you, we need more of u in a forum like this for enlightenment.

  8. Kalu J. Okafor October 6, 2012 at 9:41 am - Reply

    Sam Don, we cannot continue pretending ignorance of the reasons for this lopsidedness even with continuous stories of fuel smuggling through the south west’s porous boarders into neighbouring Benin Republic. The same applies to Adamawa state, Kano and Sokoto. The south south allocation finds its way through the creeks to neigbouring countries as well. These create artificial scarcity. Most times drivers in Aba, Abia state have to go to Port Harcourt in Rivers state or Ikot Ekpene in Akwa Ibom state for petrol and kerosine. Those in Onitsha always drive across the River Niger to Asaba for these products. That is Nigeria. My happiness is that the Igbos can survive any condition without much ado. Are our traducers better? For where!

  9. jakada October 6, 2012 at 11:02 am - Reply

    certainly this distribution is unjust and based on bais and ethnicity. let me ask, how much is the population of south-south? how many auto mobiles are being used there? i’m sure they’re not up to the population of kano&kaduna or lagos&oyo and the number of autor mobiles in use in these states are undoubtfuly higher than those in south-south. do we truely have govt. for nigerian?

  10. Segun Owolabi October 6, 2012 at 2:00 pm - Reply

    Why I cannot fathom why the allocation of the South East is as low, you cannot question the South West allocation because if you fully analyse it you will see that Lagos alone took over 60% of the allocation and Lagos is the commercial capital of Nigeria with everybody there just like Abuja and 10 time bigger than Abuja. With the commercial situation in Onitsha and Abia State I believe it should be far more unless some SE marketers are diverting allocations to other areas for immediate gain due to kidnapping and robbery prevalent in the area.
    As regards Igbos leaving Nigeria the SS and SW will be very happy and it is the Igbo that have more investments in other areas than other zones so there should be nothing for others to loose.
    Let there be a Regional Government with 6 Vice Presidents and the VPs rotating the Presidency every 2 years. One Armed Forces and Regional Police. Regional Derivation with only 15% to the center and Nigeria will be at Peace.

  11. emma October 6, 2012 at 2:58 pm - Reply

    these figures must be right. E.ven if south east was given their right share, how would it be distributed. where are the roads? south east is simply a forgotten zone. Anyone who doubts this should travel from Obigbo in Portharcourt to onitsha, . you may have to travel from 6am to about 6pm to get there.. Going through this road quickly reminds one of the civil war times. In fact, i think the roads were better then than now. The economy of the igboman is delibrately being damaged by negligence froms all tiers of government.Hmmmmmmmm

  12. Dennis October 6, 2012 at 6:11 pm - Reply

    THIS IS JUST A CHIP OF THE ICEBERG THAT HAS BEEN HAPPENING SINCE 42 YEARS AGO UP TILL NOW. O ! LORD HOW LONG WILL YOUR PEOPLE CONTINUE TO SUFFER ? THINGS FALL APART .

  13. .Chichi October 6, 2012 at 6:35 pm - Reply

    President Jonathan’s Freedom of Information bill,is allowing us know the truth. Are there no Igbo working in NNPC? How is the Igbo elites and Ohaneze representing us? President Jonathan,thank you for this revelation your regime supports.

  14. .Chichi October 6, 2012 at 6:37 pm - Reply

    President Jonathan’s Freedom of Information bill,is allowing us know the truth. Are there no Igbos working in NNPC? How are the Igbo elites and Ohaneze representing the common Igboman? A food for thought. President Jonathan,thank you for this revelation which your regime supports.

  15. collins onweli October 6, 2012 at 8:55 pm - Reply

    my dear people, hard coment will not help our course. we still can make it. let us all seat and talk. call it any name. it is better to talk than to war. let d nation talk.

  16. ik October 6, 2012 at 10:47 pm - Reply

    i am just looking, watching and waiting… the next time igbos will rise up again in arms, we will drive everyone into the ocean and desert.

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