Business

Oil-producing states get N75.410bn as 13 per cent derivation

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From a total of N1.620 trillion which accrued to the Federation Account Allocation Committee in November 2023, the nine oil-producing states in Nigeria received a total sum of N75.410 billion as 13 percent of mineral revenue.

FAAC disclosed this in a communique, weekend, noting that outside the 13 per cent mineral revenue, the federal, state, and local governments received N1.088.783 trillion in revenue in November.

In perspective, Nigeria’s revenue-sharing formula requires that the nine oil-producing states, including Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Imo, Edo, Ondo, and Rivers, receive 13 per cent as oil revenue derivative.

“A total sum of N75.410 billion (13 per cent of mineral revenue) was shared with the benefiting States as derivation revenue”, FAAC stated.

The figure is an enormous increase compared to the amount received in August 2023, which was N12.324 billion.

FAAC said the balance in the country’s Excess Crude Account was 473.754 million dollars.

Lifestyle, Politics

Kogi receives first derivation allocation as oil producing state

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Kogi government has received the state’s first derivation allocation as an oil-producing state.

Kingsley Fanwo, the commissioner for information in the state made the announcement after the state executive council meeting on Thursday, October 20.

He also said that Governor Yahaya Bello reiterated his promise to ensure that the resources of the state are put to good use.

Fanwo said;

“It’s on record that this administration has recorded many giant strides in various sectors covering the thematic areas of our governor’s New Direction Blueprint.

“This new breakthrough in the derivation allocation will no doubt make us do more for our people.

“On breaking the news, our governor said he was so elated to announce to the good people of Kogi state that the administration has received our first derivation allocation as an oil producing state.

“This announcement is in line with the administration’s commitment to transparency and accountability, for which we have received many awards.

“We worked hard to make this history. But we wouldn’t have achieved it without the support of our people, who stood resolutely with us to make this see the light of the day.

“We also wish to express our gratitude to President Muhammadu Buhari for his leadership roles as well as the RMAFC for making this a reality.

“We will build more schools, hospitals and construct more roads. We will empower our youth and women. Under my watch, we will ensure security.”

Business

Nigeria spends N21bn searching for oil, others in January

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The National Petroleum Investment Management Services, (NAPIMS), a subsidiary of the Nigerian National Petroleum Corporation, (NNPC) has disclosed it incurred N126.17 billion expenses in January.

Out of the sum, N21.47 billion was spent on oil search in the frontier basins, rehabilitation of the nation’s refineries, and the Nigeria-Morocco gas pipeline.

NAPIMS disclosed this in its February presentation to the Federation Account Allocation Committee (FAAC).

Giving a breakdown of the expenses, NAPIMS revealed N8.33 billion was spent on rehabilitation of refineries; pre-export financing received N5 billion.

Other funded items listed include N1.96 billion funding for the frontier exploration services involves the search for hydrocarbons in inland basins, especially in the north, N3.17 billion for the National Domestic Gas Development and Gas N2.39 billion on Infrastructure Development.

Also, Crude Oil Pre-Export Inspection Agency Expenses and pre-export financing cost N402.69 million; Renewable Energy Development financing gulped N119.83 million while N83.33 million financing was provided for the Nigeria-Morocco pipeline.

Compared with the previous month, the NNPC spent a total of N20.23 billion on all the projects, with the refineries getting N8.33 billion while N4.19 billion and N3.17 billion were spent on the national domestic gas development and gas infrastructure development respectively.

Despite the expenses, the report revealed that N90.85 billion was remitted to the federation account in January.

Business

Chevron Nigeria to sack 25% of workforce

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Chevron Nigeria Limited has said it will slash its workforce by 25 per cent as it is reviewing its manpower requirements in the light of the changing business environment.

CNL disclosed this on Friday in a statement entitled ‘Chevron Nigeria Limited reviews workforce in accordance with business exigencies’.

The oil major said it would continue to evaluate opportunities to improve capital efficiency and reduce operating costs.

CNL’s General Manager Policy, Government and Public Affairs, Esimaje Brikinn, said, “The aim is to have a business that is competitive and have an appropriately sized organisation with improved processes.

This will increase efficiency and effectiveness, retain value, reduce cost, and generate more revenue for the Federal Government of Nigeria.”

According to him, the new organisational structures will, unfortunately, require approximately 25 per cent reduction in the work force across the various levels of the organisation.

“It is important to note that all our employees will retain their employment until the reorganisation process is completed,” Brikinn said.

He said there were no plans to migrate Nigerian jobs outside the country.

He said, “We have prospects for our company in Nigeria; however, we must make the necessary adjustments in light of the prevailing business climate; and we need everyone’s support to get through these tough times stronger, more efficient and more profitable, in order to sustain the business.

We are actively engaging our workforce to ensure they understand why this is being done. We will continue to consistently engage all relevant stakeholders, including the leadership of the employee unions as we continue this process of business optimisation.”

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