Business and Financial Terminology

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What is the purpose of a Turnaround Maintenance?

To manage core business processes in real time.

To provide information on potential hazards and handling instructions for chemicals.

To track return of previously issued materials to warehouse.

To conduct periodic maintenance involving plant shutdowns for inspections, repairs, replacements, and overhauls. (correct)

What does a Single Goods Declaration document detail?

Unabridged information on imported or exported goods. (correct)

Ideal order quantity to minimize inventory costs.

Bank guarantee for payments under specified conditions.

Powers and authority granted to NNPC's management for functions and responsibilities.

What is the purpose of an Economic Ordering Quantity?

To initiate, document, and track disposal process for assets.

To determine the ideal order quantity to minimize inventory costs. (correct)

To manage core business processes in real time.

To solicit proposals from qualified contractors for goods, works, or services.

What does a Material Safety Data Sheet provide?

Information on potential hazards and handling instructions for chemicals. Signup and view all the answers

What is the purpose of a Pre-Arrival Assessment Report?

Submitted to Nigeria Customs Service for assessment and clearance before cargo arrival. Signup and view all the answers

What is the purpose of a Purchase Order?

Written authorization for suppliers to deliver goods or services at specified terms. Signup and view all the answers

What does a Request for Proposal solicit?

Proposals from qualified contractors for goods, works, or services. Signup and view all the answers

What is the purpose of an Authority for Expenditure document?

To lay out proposed expenses for a particular project and authorize an individual or group to spend a certain amount of money for that project Signup and view all the answers

What is the function of the Asset Disposal Committee?

To recommend the best method of disposing obsolete or surplus equipment or stock and handle the disposal process Signup and view all the answers

What is the primary purpose of Reverse Auction in NNPC Limited SCM processes?

To obtain goods or services at the lowest price from a pool of suppliers Signup and view all the answers

What does the Custody Transfer primarily involve?

Transferring non-stock items with associated policies, procedures, input & output documents, and key performance indicators Signup and view all the answers

What is the primary function of Goods Receipt in NNPC Limited SCM processes?

Receiving and verifying incoming goods or services against purchase orders or contracts Signup and view all the answers

What is the main purpose of Frameworks Agreement in NNPC Limited SCM processes?

To establish terms and conditions with prequalified suppliers for specific goods or services over a period of time Signup and view all the answers

What does Contract Management primarily involve in NNPC Limited SCM processes?

Managing contracts through their lifecycle including creation, execution, and analysis to maximize operational and financial performance Signup and view all the answers

In the NNPC Limited SCM Processes and Procedures Document, what is the section number for Category Management?

3.0 Signup and view all the answers

What is the date of approval for the NNPC Limited SCM Processes and Procedures Document?

19/01/2023 Signup and view all the answers

Which position endorsed the NNPC Limited SCM Processes and Procedures Document?

SMT Signup and view all the answers

What does ADB stand for in the context of the text?

Authorized Dealer Bank Signup and view all the answers

What is the section number for Plan Procurement Policies in the NNPC Limited SCM Processes and Procedures Document?

$2.1$ Signup and view all the answers

In the context of the text, what does CASHES refer to?

Community Affairs, Safety Health Environment and Security Signup and view all the answers

What is the full meaning of EPC as per the text?

Engineering Procurement & Construction Signup and view all the answers

Who checked the NNPC Limited SCM Processes and Procedures Document?

$SLT$ Signup and view all the answers

What is the section number for Purchase Requisition Key Performance Indicators in the NNPC Limited SCM Processes and Procedures Document?

4.4 Signup and view all the answers

What does GED stand for in the context of the text?

Group Executive Director Signup and view all the answers

Who approved the NNPC Limited SCM Processes and Procedures Document?

SMT Signup and view all the answers

In the context of the text, what does NCB refer to?

National Competitive Bidding Signup and view all the answers

What is the full meaning of NIPEX as per the text?

Nigerian Petroleum Exchange Signup and view all the answers

What does MSDS stand for in the context of the text?

Materials Safety Data Sheet Signup and view all the answers

In the context of the text, what does MRP refer to?

Materials Requirement Planning Signup and view all the answers

What does SLT stand for in the context of the NNPC Limited SCM Processes and Procedures Document?

Senior Leadership Team Signup and view all the answers

What is the purpose of a Full Meaning section in the NNPC Limited SCM Processes and Procedures Document?

To provide definitions for acronyms used in the document Signup and view all the answers

In the NNPC Limited SCM Processes and Procedures Document, what does PIA stand for?

Petroleum Industry Act Signup and view all the answers

What is the purpose of Glossary section in the NNPC Limited SCM Processes and Procedures Document?

To outline the terms and their meanings used in the document Signup and view all the answers

Who is responsible for checking the NNPC Limited SCM Processes and Procedures Document?

Chief Supply Chain Officer Signup and view all the answers

What is the function of Acronyms section in the NNPC Limited SCM Processes and Procedures Document?

To provide a list of commonly used abbreviations with their meanings Signup and view all the answers

What does MSDS stand for in the context of the NNPC Limited SCM Processes and Procedures Document?

Material Safety Data Sheet Signup and view all the answers

What is the purpose of a Material Safety Data Sheet (MSDS) in NNPC Limited SCM processes?

Provides information on potential hazards and handling instructions for chemicals. Signup and view all the answers

What does a Pre-Arrival Assessment Report primarily involve in NNPC Limited SCM processes?

Submitted to Nigeria Customs Service for assessment and clearance before cargo arrival. Signup and view all the answers

What is the primary function of Turnaround Maintenance in NNPC Limited SCM processes?

Involves plant shutdowns for inspections, repairs, replacements, and overhauls. Signup and view all the answers

What is the purpose of a Single Goods Declaration document in NNPC Limited SCM processes?

Details unabridged information on imported or exported goods. Signup and view all the answers

What does a Letter of Credit primarily involve in NNPC Limited SCM processes?

Bank guarantee for payments under specified conditions. Signup and view all the answers

What is the purpose of an Economic Ordering Quantity (EOQ) in NNPC Limited SCM processes?

Ideal order quantity to minimize inventory costs. Signup and view all the answers

What is the primary function of Enterprise Resource Planning (ERP) in NNPC Limited SCM processes?

Manages core business processes in real time. Signup and view all the answers

What is the primary function of a Bill of Engineering Measurement and Evaluation (BEME) in NNPC Limited SCM processes?

To list all work items, their estimated quantities and cost, prepared from the specification and drawings of a project Signup and view all the answers

What is the primary purpose of an Authority for Expenditure (AFE) document in NNPC Limited SCM processes?

To lay out proposed expenses for a particular project and authorize spending a certain amount of money Signup and view all the answers

What does the Asset Disposal Committee primarily recommend in NNPC Limited SCM processes?

The best method of disposing obsolete or surplus equipment or stock Signup and view all the answers

What is the primary purpose of Reverse Auction in NNPC Limited SCM processes?

To encourage suppliers to offer their lowest prices in an open competition Signup and view all the answers

What does Custody Transfer primarily involve in NNPC Limited SCM processes?

Transfer of non-stock items and related documentation Signup and view all the answers

What does the acronym 'LC' stand for in the context of the text?

Letter of Credit Signup and view all the answers

What is the full meaning of 'CAPEX' as per the text?

Capital Expenditure Signup and view all the answers

In the NNPC Limited SCM Processes and Procedures Document, what does 'NCDMB' refer to?

Nigerian Content Development & Monitoring Board Signup and view all the answers

What is the primary function of 'MRP' in NNPC Limited SCM processes?

Materials Requirement Planning Signup and view all the answers

'GRC' in the context of the text stands for:

Governance Risk & Compliance Signup and view all the answers

'DOA' in the context of the text stands for:

Delegation of Authority Signup and view all the answers

What was NNPC transformed into in July 2022?

A limited liability company Signup and view all the answers

When was NNPC established?

1 April 1977 Signup and view all the answers

Where is the headquarters of NNPC located?

Abuja Signup and view all the answers

Which companies are part of the joint venture managed by NNPC?

Shell, Agip, ExxonMobil, Chevron Signup and view all the answers

Where is NNPC's international office located?

London, United Kingdom Signup and view all the answers

What was NNPC's rank on LinkedIn's list of best companies to work in Nigeria in 2023?

Seventh position Signup and view all the answers

What did NNPC state it had signed in October 2019 with Nigeria LNG for upstream gas development projects?

$2.5 billion pre-payment agreement Signup and view all the answers

In which city is one of NNPC's zonal offices located?

Kaduna Signup and view all the answers

What is the primary purpose of the NNPC Towers in Abuja?

Corporate headquarters Signup and view all the answers

What type of resources does NNPC partner with foreign oil companies to exploit?

Fossil fuel resources Signup and view all the answers

What entity is licensed to operate in Nigeria's petroleum industry?

NNPC Limited Signup and view all the answers

What percentage of federal government revenue does NNPC account for?

40% Signup and view all the answers

Who was appointed as the new Group Chief Executive Officer (GCEO) of NNPC in December 2021?

Mallam Mele Kyari Signup and view all the answers

What percentage of the country's GDP does NNPC account for?

40% Signup and view all the answers

What is the primary responsibility of NNPC?

Upstream and downstream oil and gas developments Signup and view all the answers

What did NNPC publicly feature on its website for the first time in history?

Annual report Signup and view all the answers

What did the Nigerian Association of Petroleum Explorationists (NAPE) praise Mele Kyari for?

Stabilizing the industry through robust policies Signup and view all the answers

When was Olubunmi Tunji-Ojo appointed as the minister of Interior of Nigeria?

16 August 2023 Signup and view all the answers

In which school was Olubunmi Tunji-Ojo elected as the senior prefect in 1998?

FUTA Staff Secondary School, Akure Signup and view all the answers

Which constituency did Olubunmi Tunji-Ojo represent in the House of Representatives from 2019 to 2023?

Akoko North East/Akoko North West Federal Constituency Signup and view all the answers

Which committee did Olubunmi Tunji-Ojo chair during his first term in the House of Representatives?

House Committee on Niger Delta Development Commission (NDDC) Signup and view all the answers

In which year was Olubunmi Tunji-Ojo re-elected as the federal lawmaker representing Akoko North East and North West Federal Constituency?

2023 Signup and view all the answers

Where was Olubunmi Tunji-Ojo born?

Oyin Akoko, Ondo State, Nigeria Signup and view all the answers

In which year did Olubunmi Tunji-Ojo gain admission into Obafemi Awolowo University to study Electrical and Electronics Engineering?

1999 Signup and view all the answers

When did Olubunmi Tunji-Ojo resign his membership of the lower chamber of the National Assembly?

16 August 2023 Signup and view all the answers

What position did Olubunmi Tunji-Ojo hold during his first term in the house of representatives?

Chairman of the House Committee on Niger Delta Development Commission (NDDC) Signup and view all the answers

At which school did Olubunmi Tunji-Ojo complete his primary education in 1993?

Universal Primary School, Akure Signup and view all the answers

In which year did the National Youth Council of Nigeria award the individual as one of the 30 most Influential young Nigerians?

2019 Signup and view all the answers

For what reason did the Nigeria Union of Journalists (NUJ) Ondo State Council award the individual as the most outstanding constituents-friendly Federal Lawmaker of the year?

Transparency and accountability Signup and view all the answers

Which organization recognized the individual with a Gold award of excellence on Community Development in 2019?

Southwest Nigeria Excellence Awards Signup and view all the answers

In which year was the individual awarded the Leadership award of excellence by Not Too Young To Rule Initiative?

2019 Signup and view all the answers

For what reason did the National Assembly New Media Forum present an award to the individual in 2021?

Pragmatic disposition to transparency and anti-corruption Signup and view all the answers

Which organization recognized the individual with a Fellow’s award in 2021?

National Association of Proprietors of Private Schools Signup and view all the answers

What was the title of the award received by the individual from Joseph Ayo Babalola University, Ikeji Arakeji, Osun State in 2021?

Honorary Doctorate Degree in Public Administration Signup and view all the answers

In which year did the Southwest First Alert Magazine present an award to the individual as the best Federal incumbent Honourable Member for remarkable contributions towards the growth and development of South-West region?

2019 Signup and view all the answers

What recognition did The Federal University of Technology, Akure (FUTA), Nigeria confer upon the individual in 2021?

Award of Excellence Signup and view all the answers

What recognition did Sir Ahmadu Bello Platinum Leadership Award confer upon the individual in 2019?

Outstanding Leadership Award as one of the key actors of the new Niger Delta Signup and view all the answers

Study Notes

NNPC Limited SCM (Supply Chain Management) processes involve several steps: Procurement Method, RFP/Quotation, Emergency Procurement, Frameworks Agreement, Purchasing Cards, Reverse Auction, Negotiate with Preferred Bidder, Issue Purchase Order, Contract Management, Vendor Management, Clearing and Haulage, Goods Receipt, Warehousing, Stock Review, Stock Replenishment, Stock Write-Off & Disposal, Stock Transfer, and Custody Transfer.
Procurement Method: Determine method, key performance indicators, issue EOI (Expression of Interest), and RFP (Request for Proposal)/Quotation.
Emergency Procurement: Policies, procedures, input & output documents, and key performance indicators.
Frameworks Agreement: Policies, procedures, input & output documents, and key performance indicators.
Purchasing Cards (P-Cards): Policies, procedures, input & output documents, and key performance indicators.
Reverse Auction: Policies, procedures, input & output documents, and key performance indicators.
Negotiate with Preferred Bidder: Policies, procedures, input & output documents, and key performance indicators.
Issue Purchase Order: Policies, procedures, input & output documents, and key performance indicators.
Contract Management: Policies, procedures, input & output documents, and key performance indicators.
Vendor Management: Policies, procedures, input & output documents, and key performance indicators.
Clearing and Haulage: Policies, procedures, input & output documents, and key performance indicators.
Goods Receipt: Policies, procedures, input & output documents, and key performance indicators.
Warehousing: Policies, procedures, input & output documents, and key performance indicators.
Stock Review: Policies, procedures, input & output documents, and key performance indicators.
Stock Replenishment: Policies, procedures, input & output documents, and key performance indicators.
Stock Write-Off & Disposal: Policies, procedures, input & output documents, and key performance indicators.
Stock Transfer: Policies, procedures, input & output documents, and key performance indicators.
Custody Transfer: Policies, procedures for custody transfer (non-stock items), input & output documents, and key performance indicators.
Asset Disposal Committee: An internal committee for recommending the best method of disposing obsolete or surplus equipment or stock and handling the disposal process.
Authority for Expenditure: A budgetary document that lays out proposed expenses for a particular project and authorizes an individual or group to spend a certain amount of money for that project.
Bill of Engineering Measurement and Evaluation: A document that lists all work items, their estimated quantities and cost, prepared from the specification and drawings of a project.
NNPC Limited SCM (Supply Chain Management) processes involve several steps: Procurement Method, RFP/Quotation, Emergency Procurement, Frameworks Agreement, Purchasing Cards, Reverse Auction, Negotiate with Preferred Bidder, Issue Purchase Order, Contract Management, Vendor Management, Clearing and Haulage, Goods Receipt, Warehousing, Stock Review, Stock Replenishment, Stock Write-Off & Disposal, Stock Transfer, and Custody Transfer.
Procurement Method: Determine method, key performance indicators, issue EOI (Expression of Interest), and RFP (Request for Proposal)/Quotation.
Emergency Procurement: Policies, procedures, input & output documents, and key performance indicators.
Frameworks Agreement: Policies, procedures, input & output documents, and key performance indicators.
Purchasing Cards (P-Cards): Policies, procedures, input & output documents, and key performance indicators.
Reverse Auction: Policies, procedures, input & output documents, and key performance indicators.
Negotiate with Preferred Bidder: Policies, procedures, input & output documents, and key performance indicators.
Issue Purchase Order: Policies, procedures, input & output documents, and key performance indicators.
Contract Management: Policies, procedures, input & output documents, and key performance indicators.
Vendor Management: Policies, procedures, input & output documents, and key performance indicators.
Clearing and Haulage: Policies, procedures, input & output documents, and key performance indicators.
Goods Receipt: Policies, procedures, input & output documents, and key performance indicators.
Warehousing: Policies, procedures, input & output documents, and key performance indicators.
Stock Review: Policies, procedures, input & output documents, and key performance indicators.
Stock Replenishment: Policies, procedures, input & output documents, and key performance indicators.
Stock Write-Off & Disposal: Policies, procedures, input & output documents, and key performance indicators.
Stock Transfer: Policies, procedures, input & output documents, and key performance indicators.
Custody Transfer: Policies, procedures for custody transfer (non-stock items), input & output documents, and key performance indicators.
Asset Disposal Committee: An internal committee for recommending the best method of disposing obsolete or surplus equipment or stock and handling the disposal process.
Authority for Expenditure: A budgetary document that lays out proposed expenses for a particular project and authorizes an individual or group to spend a certain amount of money for that project.
Bill of Engineering Measurement and Evaluation: A document that lists all work items, their estimated quantities and cost, prepared from the specification and drawings of a project.
In December 2021, the Nigerian Federal Government and the Nigeria National Petroleum Corporation (NNPC) signed a N621 billion Memorandum of Understanding for road infrastructure construction.
Following the passage of the Petroleum Industry Act in August 2021, NNPC now operates as a commercial entity and is no longer reliant on government funding and direct controls.
Mele Kyari was appointed as the new Group Chief Executive Officer (GCEO) of NNPC in December 2021.
In December 2023, a new Board and Management team will be appointed for NNPC, including the Non-Executive Board Chairman, Chief Pius Akinyelure.
NNPC manages its business operations through Strategic Business and Corporporate Services Units (SBUs/CSUs).
NNPC is responsible for upstream and downstream oil and gas developments, and has several subsidiaries and associated companies.
The Nigerian constitution declares that all minerals, gas, and oil in the country belong to the federal government, and NNPC accounts for 76% of federal government revenue and 40% of the country's GDP.
The Mallam Mele Kyari-led management of NNPC has been recognized for promoting transparency through various initiatives, including making public the corporation's audited accounts and setting up a joint committee with the Nigeria Extractive Industries Transparency Initiative (NEITI).
Stakeholders have commended the commitment and success of Kyari's actions in improving the industry within the past year.
NNPC's website now publicly features its audited accounts for the first time in history.
The Nigerian Association of Petroleum Explorationists (NAPE) praised Kyari for stabilizing the industry through robust policies.
Extractive Industries Transparency International (EITI) commended NNPC for setting a new standard of reporting.
NNPC and NEITI established a joint committee to deepen collaboration and promote transparency in the oil and gas industry.
In 2002, Tunji-Ojo left Obafemi Awolowo University in his third year to pursue a degree in Electronics and Communication Engineering at the University of North London, graduating in 2005. He earned a master's degree in Digital Communication and Networking from the same institution in 2006.
Before his political career, Tunji-Ojo was a successful ICT businessman and executive. He became the CEO of Matrix IT Solutions Limited at age 24, and held certifications in Ethical Hacking and Counter Measures, CompTIA Network Plus Engineer, and Britannia Hardware A+ Management Certificate Holder.
In Nigeria, Tunji-Ojo consulted for various government agencies, including the World Bank, and organizations like the Nigerian Content Development and Monitoring Board (NCDMB) and Nigerian National Petroleum Corporation (NNPC). He also helped pioneer the first Nigerian Content Workshop in 2016.
In 2019, Tunji-Ojo was elected as a House of Representatives member for Akoko North East/Akoko North West Federal Constituency of Ondo State on the All Progressives Congress (APC) platform. He organized support for Speaker Femi Gbajabiamila and was later appointed as the Chairman of the House Committee on Niger Delta Development Commission (NDDC).
During his first term, Tunji-Ojo led a probe into alleged malfeasance of over 80 billion Naira in the NDDC, making it the first probe into the commission's financial activities. He was also a member of several committees, including National Security and Intelligence, Local Content, Gas Resources, North East Development Commission, Housing, and Solid Minerals.
In February 2021, Tunji-Ojo was re-elected as the federal lawmaker representing Akoko North East and North West Federal Constituency. He was later appointed as the Minister of Interior by President Bola Tinubu and was sworn in on August 21, 2023.
Tunji-Ojo holds various awards for leadership, including the Sir Ahmadu Bello Platinum Leadership Award of Excellence and the Kwame Nkrumah Leadership Award. He is married to Abimbola Tunji-Ojo and they have two children.

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Test your knowledge of business and financial terms with this quiz. Learn about bill of quantities, business units, and capital expenditure.