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NNPC’s PPMC Revenue Jumps 4,862% to N1.38trn in 2021

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PPMC

By Adedapo Adesanya

Pipeline and Products Marketing Company (PPMC), one of the downstream subsidiaries of the Nigerian National Petroleum Company (NNPC) Limited, recorded total revenue of N1.380 trillion in 2021, rising by 4,862.6 per cent compared with N27.808 billion in 2020.

The PPMC, in its latest audited financial statement for 2021, stated that Premium Motor Spirit (PMS), also known as petrol, and other white petroleum products in 2021 stood at N1.355 trillion.

This accounted for 99.85 per cent of total revenue from the sale of white products, also accounting for 98.19 per cent of its total revenue.

In addition to the sale of PMS, the PPMC said it earned N1.641 billion from the sale of Automotive Gas Oil (AGO) and N323.536 million from the sale of Liquefied Petroleum Gas (LPG), also known as cooking gas.

The PPMC further stated that it earned N996.595 billion from trading with coastal marketers in the 2021 fiscal year, while trading with major oil marketers and independent oil marketers fetched the PPMC revenue of N224.559 billion and N135.382 billion, respectively.

The PPMC also earned N21.108 billion as a commission on the sale of petroleum products, while the commission from the collection of the Petroleum Equalization Fund bridging allowance stood at N2.768 billion.

It added that: “On 30 June 2021, the Company ceased to supply and market petroleum products to marketers/retailers on behalf of its parent company, NNPC. On 1 July 2021, the company began to supply and market these products directly to marketers.

“The company ceased to sell Liquified Petroleum Gas during the year as the Ex-LPG Sales Agreement with Nigeria Liquefied Natural Gas (NLNG) Limited was novated to the related party, NNPC Retail Limited.”

However, the PPMC cost of sale stood at N1.332 trillion in 2021, compared with N5.639 billion recorded in 2020.

Giving a breakdown of the cost of sale component in 2021, the PPMC stated that security services gulped N3.298 billion, compared with N1.865 billion in 2020; Personnel expenses grew to N4.988 billion, from N2.577 billion in 2020; while payment for finished refined white products stood at N1.299 trillion.

In addition, the PPMC said it spent N11.393 billion on water transport hire; N270.831 million on the purchase of LPG; N1.118 billion on transportation of petroleum products; N7.481 billion on throughput charges, and N4.13 billion on tariff charges.

Also, the downstream firm said decanting transport expenses stood at N12.417 million; write-off of inventory stood at N91.749 million, while other selling expenses dropped to N28.963 million from N53.801 million recorded in 2020.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Economy

Nigeria Makes Maiden AfCFTA Shipment to Kenya

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By Adedapo Adesanya

Nigeria’s maiden shipment under the African Continental Free Trade Area (AfCFTA) has successfully arrived at the Mombasa Port in Kenya.

According to the Nigeria AfCFTA Coordination Office in a statement, the development marks a historic moment for Africa’s trade landscape.

The Senior Trade Expert at the Nigeria AfCFTA Coordination Office, Mr Olusegun Olutayo, said in line with its mandate under the leadership of the National Coordinator, Mr Olusegun Awolowo, the office had coordinated the landmark event.

He said the achievement marked a significant milestone for Nigeria in realising the vision of increased intra-African trade and economic integration championed by the agreement in line with the decision of the AU Assembly at the 31st Ordinary Session of the Assembly.

“In times of escalating geopolitical tension and looming geo-economic fragmentation, AfCFTA presents a perfect opportunity for Africa to leverage trade as a strategic instrument for enhanced market access among state parties.

“This is a historic moment, a realisation of the vision of our continent’s founding fathers and mothers.”

He also said the first consignment which was a synthetic filaments product of Nigeria’s Lucky Fibres Limited (Lush), a subsidiary of the Tolaram Group, was exported under AfCFTA preferential terms.

Mr Olutayo lauded the bold economic reforms of President Bola Tinubu, emphasising their catalytic role in enabling the country’s active participation in AfCFTA, fostering continental economic integration and industrialisation goals.

He also commended the seamless cooperation and commitment from Kenyan authorities, which exemplifies the true spirit of AfCFTA.

He acknowledged the pivotal leadership role of the AfCFTA Secretariat in fostering the success and emphasised the collaborative efforts of the Kenya AfCFTA Implementation Committee and the Kenya Revenue Authority (Customs).

According to him, the shipment, exported under AfCFTA preferential trade terms, underscores partnership, shared vision, the agreement’s potential to transform Africa’s economic landscape and pave the way for a new era of trade-driven prosperity.

The AfCFTA seeks to create a single market across Africa by reducing barriers to trade, investment, and labour.

The agreement’s goal is to increase socioeconomic development, reduce poverty, and make Africa more competitive globally.

On March 21, 2018, the AfCFTA agreement was adopted and opened for signature in Kigali, Rwanda. The agreement entered into force on May 30, 2019 and officially commenced on January 2021

Former President Muhammadu Buhari established the National Action Committee on AfCFTA (NAC) in December 2019.

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Economy

Capital Market Operators Get January 31 Deadline for Licence Renewal

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By Adedapo Adesanya

The Nigerian Securities and Exchange Commission (SEC) has fixed January 31 as deadline for all Capital Market Operators (CMOs) to renew their operating licence.

In a circular to the operators on Sunday, the apex regulatory agency in the country’s capital market said the annual registration renewal would last between January 1 and 31, 2025.

SEC said the annual registration renewal enforcement for CMOs was aimed at ensuring that only “fit and proper” persons operate in the capital market, warning that CMOs without valid registration will be penalised and may be excluded from capital market activities.

”This is to inform all CMOs and the general public that the annual renewal of registration of CMOs for the year 2025 will commence from January 01.

“All CMOs applying for renewal are required to include their 2025 annual subscription receipt from their respective trade groups as part of their application.

“In line with the commission’s Rules & Regulations, all CMOs are to complete the process of renewal of registration for 2025 on or before January 31 via registration renewal portal at www.eportal.sec.gov.ng,” it said.

The commission added that CMOs desiring to make enquiries or get support to complete the process should contact [email protected].

The regulator said it had in 2021 re-introduced periodic registration renewal by CMOs to create a reliable active operators’ data bank in the country’s capital market.

It said the renewal arrangement aimed at updating operators information on capital market for official use by local and foreign investors, other regulatory agencies and the public.

The agency added that the renewals would drastically reduce incidences of unethical practices by CMOs which may affect investors’ confidence and impact the capital market negatively, noting that the exercise will strengthen supervision and monitoring of CMOs by the commission.

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Economy

Seven Equities Boost NASD OTC Securities Exchange by 1.24%

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NASD securities exchange

By Adedapo Adesanya

The third trading week of 2025 ended on a positive note at the NASD Over-the-Counter (OTC) Securities Exchange, with seven equities on the platform inspiring a 1.24 per cent growth.

Consequently, the market capitalisation of the bourse increased by N21.56 billion during the five-day trading week to N1.075 trillion from the N1.053 trillion quoted in the preceding week (Week 2) as the NASD Unlisted Security Index (NSI) expanded by 37.98 points to 3,111.91 points from the 3,073.93 points it ended in the preceding week.

In the period under review, the volume of transactions went down by 42.1 per cent to 9.45 million units from the 16.30 million units in the previous week, as the value of trades declined by 53.1 per cent to N48.4 million from the N104.11 million, with these transactions completed in 122 deals involving 15 different stocks.

Industrial and General Insurance (IGI) Plc gained 50 per cent in the week to close at 36 Kobo per share versus 34 Kobo per share, Mixta Real Estate Plc increased by 20 per cent to end at N2.58 per unit compared with the previous week’s N2.15 per unit, and Okitipupa Plc rose by 10 per cent to N39.59 per share from N35.99 per share.

Further, UBN Property Plc grew by 10 per cent to N2.20 per unit from N2.02 per unit, Newrest Asl Plc jumped by 9.9 per cent to N31.38 per share from N28.53 per share, FrieslandCampina Wamco Plc surged by 3.7 per cent to N39.65 per unit from N38.22 per unit, and 11 Plc advanced by 0.3 per cent to N256.00 per share from N255.31 per share.

FrieslandCampina Wamco Plc topped the activity chart last week by value with with N0.030 billion, 11 Plc recorded N0.009 billion, Central Security Clearing System (CSCS) Plc raked in N0.004 billion, IGI Plc followed with N0.002 billion, and Geo-Fluids Plc recorded N0.002 billion.

However, IGI Plc was the most traded instrument by volume with 7.5 million units, FrieslandCampina Wamco Plc transacted 0.77 million units, UBN Property Plc recorded 0.38 million, Geo-Fluids Plc traded 0.37 million units, and CSCS Plc posted 0.16 million units.

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