Business

2022 Budget: BudgIT Raises Concerns, Queries Missing N198.7bn Oil Company Payments To NDDC

Published

4 years ago

October 25, 2021

BudgIT Foundation, a civic-tech organization leading the advocacy for transparency and accountability in public finance in Nigeria, has raised concerns over critical issues on the 2022 proposed budget.

BudgIT raised concerns over the complete omission of the Niger Delta Development Commission, NDDC, capital budget from the overall budget, the continuous unrealistic revenue projections, soaring year-on-year debt burden and weak accountability structure, among others.

These concerns were raised by the organization’s Chief Executive Officer, Gabriel Okeowo, in a statement signed by the body’s Communication Associate, Iyanu Fatoba.

According to Fatoba, the omission of NDDC’s entire capital budget allocation from the proposed 2022 budget and public scrutiny is a source of concern, especially given the scale of alleged corruption and diversion of public funds that has afflicted the federal agency since its inception.

Fatoba said: “NDDC receives an average of N198.7 billion per year from the operating budgets of oil companies (between 2016 and 2018) in addition to the annual Statutory Transfers it receives from the federal government (the latter which is projected to be N98.7bn in the 2022 budget).

“The list of new and ongoing projects to be embarked upon by NDDC with this estimated N198.7bn in the year 2022 is glaringly missing from the 2,168-page 2022 FG budget details document and the 2022 Appropriations Bill sent to the National Assembly.”

The organization also called for cautious optimism, especially as the proposed 2022 spending plan comes with a N6.26tn deficit, 80% of which would be borrowed.

This is particularly problematic, seeing that FG has recorded a significant surge in its debt burden in the last six years while noting that debt servicing wiped off over 90% of FG’s total revenue in recent times.

Commenting on the situation, Mr Okeowo said, “The size of FG’s new borrowing plans in 2022 is a serious cause for concern, especially as the FG spent over 90% of all its revenue in servicing old debts between January 2020 and June 2021. Also, FG’s 2022 deficit of N6.26 trillion represents 3.39% of Nigeria’s GDP, which is above the 3% threshold set in Section 12(1) of the 2007 Fiscal Responsibility Act (FRA).”

Business

NNPCL Reduces Fuel Price After Dangote Refinery’s Adjustment

Published

2 weeks ago

August 14, 2025

Editor

The Nigerian National Petroleum Company Limited has reduced its premium motor spirit pump price on Thursday, according to DAILY POST.

It was confirmed that NNPCL retail outlets in the Federal Capital Territory, Abuja, have reduced their pump price to N890 per litre from N945.

This new fuel price has been reflected in NNPCL retail outlets such as mega station Danziyal Plaza, Central Area, Wuse Zone 4, Wuse Zone 6, and other of its filling stations in the nation’s capital.

The latest downward review of fuel price in NNPCL outlets represents an N55 reduction in fuel pump price.

“It was reduced to N890 per litre this afternoon, down from N945,” an NNPCL fuel attendant told DAILY POST anonymously on Thursday.

This comes a Nigerian filling station, MRS Empire Energy, on Thursday adjusted their fuel pump price to N885 and N946 per litre, down from N910 and N955 per litre.

The latest fuel price reduction trend is unconnected to Dangote Refinery’s ex-depot petrol price adjustment by N30 to N820 per litre from N850 and the price of crude oil in the international market.

Business

Dangote Refinery Reduces Fuel Price

Published

2 weeks ago

August 12, 2025

Editor

Dangote Petroleum Refinery has announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit, PMS, commonly known as petrol, by N30, from N850 to N820 per litre, effective from August 12, 2025.

This was disclosed in a statement by the company’s spokesman, Anthony Chijiena, on Tuesday.

The 650,000-barrel-per-day plant said the move is part of its unwavering commitment to national development, assuring the public of a consistent and uninterrupted supply of petroleum products.

Business

Indian Refiners Abandon Russia For Nigerian Crude, As Dangote Refinery Relies On US

Published

2 weeks ago

August 11, 2025

Editor

India Refineries have abandoned Russian crude for Nigerian crude, while domestic refiner Dangote Refinery relies heavily on West Texas Intermediate crude from the United States of America.

This followed a recent sanction threat by US president Donald Trump on India over continued patronage of Russian crude.

According to Reuters, industry sources said that Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September 2025 delivery in a tender awarded to global trader Trafigura.

Also included are one million barrels of Angola Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian oil, according to Reuters.

The report noted that the purchase is part of a broader sourcing spree that has seen Indian refiners secure millions of barrels from non-Russian sources post July 2025.

Meanwhile, Indian refiners secured purchases of Nigerian crude grades; the $20bn Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, is relying on around 60 percent on US and other imoorts to feed its processing units.

Data showed that the refinery imported an average of 10 million barrels in July 2025, saying it was increasingly relying on the US for its feedstock despite the naira-for-crude deal with the Federal Government, which kicked off in October last year.

According to Reuters, the Indian Oil Corp and Bharat Petroleum have bought a million barrels of non-Russian crude billed for delivery in September and October after the US pressured India to halt purchases from Russia.

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Indian state refiners had been largely absent from the Nigerian crude market spotlight since 2022; they have in the past concentrated on Russian crude amid the Russian-Ukrainian war. However, the Indian refiners paused Russian purchases in late July 2025 after pressure from US President Donald Trump.

On the part of Dangote Refinery, data from commodities analytics firm Kpler showed that in July, US barrels accounted for about 60 percent of Dangote’s 590,000 barrels per day of crude intake, with Nigerian grades making up the remaining 40 percent.

In July, the Dangote refinery’s crude imports surged to a record 590 kbd—driven largely by US barrels overtaking Nigerian supply for the first time—amid ongoing domestic sourcing challenges, Kpler reports.

“While WTI has held a significant share in Dangote’s import slate since March, this is the first time US crude has overtaken Nigerian supply—a shift driven by several factors,” Kpler stated.