Mismanaged Nigerian State Oil Company, NNPC, Racks Up New Debt

This is what bothers us; an online news medium has suddenly reduced itself to propaganda. You claimed that the list showed figures/amounts owed to various companies which you named. Great, Reuters did not have one; you are unable to provide a source for your list. You further claimed that Bermuda corporate registration documents also published a list, we looked it up we found no list and still can’t find one.

SR claimed that decades of mismanagement and corruption at NNPC left it heavily indebted, to our knowledge Diezani has not been in office for decades as Minister for Petroleum, neither has she been the MD or GMP for NNPC. So we wonder why SR thought it best to paste her photo with this badly written article. From all indications SR continue to show their bias against the minister and thus failed to serve the Nigerian public by publishing truth.

It is amazing how this write up by Sahara Reports evolved to this blame game of Diezani, it almost seems like they find every opportunity to accuse her of anything that relates to oil, even when the issues are legitimate and must be dealt with.

Every country in the world has debts, but that is not the issue. Our refineries cannot meet up with our demand we do import fuel to make up what we do not produce so that life for Nigerians is acceptable. Rueters was clear in providing information, NNPC paid off a debt to our foreign suppliers by borrowing loans from Nigerian and International banks. When you borrow you must have collateral, ours is 15,000 barrels of oil a day for 5 ½ years unless we choose to pay off the loan in bulk before then, which is usually not a good idea. All loans have interest rates attached to them that must be paid off as well as the principle.

I reply to Okwuchukwu Ezeanyika. I can see most people who post comments don’t know how to address somebody they think being able to comment online is an opportunity for them to make an abusive statement which does not contribute to the growth of the country rather it degrades the person to a nuisance.

I believe it is a good move that was taken by the minister of petroleum in order to pay off the old debt that was owed by Nigeria; an arrangement has been made on how the loan is to be paid back by the NNPC, which was explained by the minister of petroleum. She says and I quote “that the NNPC put up 15,000 barrels per day of its oil production as collateral”.

@Ese, that is the point, the story reported by reuters was solid. It explained that its sources said that Nigeria had proceeded to pay its debt to foreign suppliers, who were getting ready to go bankrupt. Nigeria pledged 15,000 barrels a day for 5 1/2 years paying our debt installmentally with is the right thing to do.

We buy from the outside because our refineries do not produce enough to meet the demands of Nigeria. Of course not without legisture NNPC cannot ordinarily begin to make deals.

It’s difficult for me to understand the life’s Nigerian’s of today are living, Sorry to say this amount of money has been loan to pay back the older loans to big commodity traders and keep them from losing their shirts with painful multi-million dollar write offs, oil trading sources as well have been told by Sahara reporters. I believe we Nigerians will have to sit down and see what will happen next if the money will be use for the purpose it was collected for, then we can draw conclusion.

We need to read and digest this useless story before we draw conclusions, The NNPC put up 15,000 barrels per day of its oil production as collateral, my dear Nigerians the loan is being payed in installment.

I also believe we would have been better. I supportde the 3rd term but our compatriots, for good reasons, said no. So wetin we go do. But OBJ would not have built any new refineries. On the contrary, he actually sold Kaduna refinery to Dangote's Blue Circle before he left and Yar'Adua reversed the sale to Dangote's relief since he found that he actually overpaid for the rundown refinery. What he would have done which is the right thing to do, would have been to sell off the refineries, remove the subsidy and allow unfettered growth of the downstream sector. We will still get there as we all come to the conclusion that the current system is not sustainable but it may take 10-15 years after OBJ. However, this money na for 2015 election o!

Sahara reporters can you please be professional and also be specific on how you got the Bermuda corporate registration documents if possible past the link on this forum for every one to see, with reference to the Reuters (http://www.reuters.com/article/2013/01/07/nigeria-loan-idUSL5E9C798R2013...) the loan can be paid off within a period of five and the half years which you did not mentioned.

Sahara reporters can you please be professional and specific on how you got the Bermuda corporate registration documents if possible past the link on this forum for every one to see, with reference to the Reuters (http://www.reuters.com/article/2013/01/07/nigeria-loan-idUSL5E9C798R2013...) the loan can be paid off within a period of five and the half years which you did not mentioned.

My dear anonymous without joining issues with you. Even if Obasanjo had done heavenly well as you have stated, we do have to maintain decorum regardless of our personal opinion.

Our constitution says two terms and even if the third term proposed was put into law it is not retroactive, which means that Obasanjo will still not have qualified to run for a third term.

Right now that is not the issue, what is being discussed is the state of affairs concerning Nigeria's oil and debt payments, which is completely thrown out of context by Sahara Reporters which now has become their trade mark.

I am appalled that we try to make Nigeria and those who continue to work hard to correct the miseries of it look bad.

We have been told of how some shifting figures in trillions of Naira were expended on fuel subsidy in 2011. Then the story was that govt fully funded this debacle hence there was no money for any project save for the national assembly and the political hierrarchy. I would think that the debt portfolio of a federal ministry or agency is centrally secured and managed from the presidency only with the approval of the legislathieves.
Can NNPC then pledge the oil, which they are only a care taker, as a collateral for any loan? Curious things happen in Nigeria.

WHERE IN THE WORLD WOULD AN OIL PRODUCING NATION NOT REFINE ITS CRUDE, IMPORT REFINED CRUDE, BORROW MONEY TO PAY FOR ITS CRUDE AND BROKE, WHEN OIL IS CONSISTENTLY VERY HIGHIN PAST FIVE YEARS? THIS OIL BOOM IS A TIME TO REBUILD THE NATION NOT TO RUIN IT. WHERE IS PRESIDENT JONATHAN IN ALL THESE? NGOZI IWEALA, AN OVERRATED WOMAN, WAS RECRUITED TO IMPROVE THE ECONOMY INSTEAD SHE HAS BEEN IN ONE SHADDY TRANSACTION AFTER ANOTHER OF BORROWINGS USING HER BROTHERS COMPANIES TO ACT AS MIDDLEMEN, RAKING IN BILLIONS OF NAIRA IN COMMISSIONS.WHERE IS OUR OIL MONEY? WHERE IS RIBADU'S REPORT? OIL THEFT EVERYWHERE BY WHOM? NGOZI IWEALA AND OIL MINISTER MUST GO.

Mr. Anonymous the money that was stolen by our so call obj, in the telecommunication project, which he never finished, has he been accounted for by him.

From 2010 till date our production rose from 65,000 to 130,000 barrels per day, a bulk of the increase consists of assets handed over to us upon divestment by some of our JV partners; but we realize that for us to meet the target of 250,000 barrels per day by 2015 we need to build on this by exploring further afield and drilling more wells. Okono 6 and 7 wells represent our success story in this direction, Briggs was quoted to have said. He said NPDC plans to drill more wells as from next year and would deploy two more rigs in addition to the two it currently has on site, adding that the target is to drill 40 wells in the next five years as part of its growth projection.

In keeping with its target to grow its production to 250,000 barrels per day by 2015, the Nigerian Petroleum Development Company (the Exploration and Production subsidiary of the Nigerian National Petroleum Company) has commenced aggressive drilling on some of its Oil Mining Leases leading to increased production. The latest of NPDC’s production strides is the successful drilling of Okono 6 and 7 oil wells in its OML 119 which are currently yielding 12,000 barrels per day. This was disclosed in a statement signed by Mr. Fidel Pepple, the Acting Group General Manager, Group Public Affairs Division of the NNPC.

With a maximum crude oil production capacity of 2.5 million barrels per day, Nigeria ranks has Africa's largest producer of oil and the sixth largest oil producing country in the world. Nigeria appears to have a greater potential for gas than oil. Nigeria's gas production in the year 2000 was approximately 1,681.66 billion scf, 1,3715 billion scf was associated gas and the rest 310.16 billion was nonassociated gas. Nigeria produces only high value, low sulphur content, light crude oils - Antan Blend, Bonny Light, Bonny Medium, Brass Blend, Escravos Light, Forcados Blend, IMA, Odudu Blend, Pennington Light, Qua-Iboe Light and Ukpokiti. NNPC through its subsidiary the Nigerian Petroleum Development Company (NPDC) is directly responsible for four oil and gas fields with a total production of 15,000 bpd.

The Senate is set to investigate why former President Olusegun Obasanjo obtained a $500 million (N59 billion) loan for a telephone project despite his government’s claims of rapid privatization of the sector. The rural telephony project for which the administration obtained the loan from China and caused Nigeria to pay 10% equity contribution is at the centre of the Senate enquiry under the aegis of the Senate Committee on Communications.

The Senate probe is coming against recent fear of the nation’s growing debt burden despite the debt pay off agreement between Nigeria and the Paris Club of debtor nations two years ago.

Though neither of the first two phases of the project is yet to be completed or commissioned, Obasanjo had, according to a memorandum to the Senate from the Federal Ministry of Information and Communication, given a verbal order for the commencement of the third phase of the project.

If a referandum was conducted in 2006, most Nigerians would have voted for OBJ's third term.

Under the guise of "democracy" and "Patriotism" Nnamani and Co scuttled OBJ's plan.

If the then senate president was so democratic, shouldn't he be speaking against the corruption in Nigeria today.

It is evident that Nnamani's democratic credentials started and ended with opposing OBJ's third term. Which, by the way, should have been pushed forward under the doctrine of necessity:catalyzing Nigeria's development after 20 years of military mismanagement.

OBJ 3rd term is spilt milk. PDP as to go !

When the righteous are in authority, the people rejoice: but when the wicked beareth rule, the people mourn. Proverbs 29:2

When the righteous are in authority, the people rejoice: but when the wicked beareth rule, the people mourn. Proverbs 29:2

If Nigeria's future capacity to borrow had worried Fitch, Standard and Poors and other agencies, economically, it makes sense in a world where countries are being downgraded with Nigeria recording an upgrade. Nigeria's economy has a healthy growth rate with good prognosis for the future. Encumbering that would only increase the hardship on Naijas in the future. Moreover, with only 15,000b/day as collateral, that's peanuts compared to our daily production capacity today. I trust Aunty Ngozi for not paying those thieving oil companies. They were the thugs behind the kidnapping of her aged Queen-Mother, and instigated the report/complaint to the Presidency/NASS respectively. Besides, her Ministry/influence are largely responsible for the RESPECT from the rating agencies. Sanusi is also not blinking. Kudos!

Notice the size of the diamond ring and ruby ear rings on Aunt Diezie? Chopping! Klassich u. Stilvoll. Na waooh!

She's hot...

With Mrs. Diezani Allison-Madueke (nee Agama) still in the saddle as the Minister of Petroleum Resources and assisted by Ajalli, Anambra State-born non-Accountant, Bon Otti, as the Group Executive Director (Accounts and Finance) of NNPC, expect a worse state for NNPC by 2015. Ebele has no intention of improving Nigeria's economic situation except to line his bank accounts via these unconscionable "officials".

Also, I am not surprised that we racked up debt.

may God save us.

The greatest mistake Nigeria and Nigerians made was not allowing Obj to do a third term, I bet u, we would have been better than we are now. 2011 would have been the best time for Nigerians to choose another president after obj. My brothers and sisters obj was there to lay a solid foundation for us but we didnt let him finish the foundation before we asked him out. After obj left, everything scattered, from debt free to rising borrowing, and still rising, from peace to youth restiveness left, right and centre, from minor corruptions to major
open stealing in billions of dollars. Obj would have built our refinaries. His govt put the banks in order, telecoms rose up, there was a level of growth in our nation. I pray for my beloved country. In all sincerity, we should left obj to finish the foundation that Nigerians and Nigeria deserves.

The borrow to steal syndrome is what i fail to come to terms with. These thieves stole all monies including those recovered from their previous stealing predecessors. I think they should just go ahead and sell Nigeria and go stay in the moon.

When u say mismanaged oil resources of 9ja, are u referring to the era when OBJ was the oil minister-cum presido? Or the period when Rilwan Lukman, and Jubril Aminu were in charge of the affairs of that ministry? The loans are going to be paid with d crude oil oozing out of the SS. That is why we yearn for fiscal federalism and resource control-In the USA where we borrowed our constitution from, they don't rob Peter to pay Musa, ade and obi-Never! We plant all these watery stories and play d blame games with 9jas with a view to subduing people from the oil bearing enclaves of the country! The hewers of wood and drawers of water 4 d tripod! The oil industry since 1959 has never been under d control of the SS-why not allow us sell our God given resources and pay tax to the centre-as its obtainable in the developed economies of the world-would Buhari say no to such again as he did in 2003 during a visit to Benin? Or we hold Alams, Ibori, Ibru and Sylva 4 responsible 4 our woes abi?