GOVERNOR Martin Elechi is yet to make
any official statement with regards to
the sack of non-indigenes by Abia State
Government.
Speculation has it that the Governor still
sees the expulsion of non-indigenes
from Abia State as a rumour and has so
far refused to take any official stand on
the matter, pending when Abia State
Governor would communicate him
officially and or the state executive
council decides unanimously on the
matter.
Although, some sacked Ebonyi State
indigenes from Abia State Civil Service
have staged a protest in Abakaliki, the
state government appears to be waiting
for an appropriate time to react on the
matter.
However, major stakeholders in the state
are not happy with the development,
stressing that such actions were capable
of disintegrating the unity, collective
responsibility and cultural affinity of the
Ndigbo both in the country and in the
Diaspora. While others are of the view
that the Ndigbo Presidency, 2015, would
remain a mirage if the issue of sacked
non-indigenes was not carefully
addressed.
It is also feared in some quarters, that
some South-East governors may sack
non-indigenes in their states, a
development that may completely erode
Ndigbo unity.
In an exclusive chat with Vanguard, the
Commissioner for Information, Hon.
Chike Onwe noted that the state
government was yet to be
communicated officially on such
proposition, adding that it would at this
stage be considered as a mere rumour
except proven otherwise in due course.
He however noted that if implemented
that it would threaten the corporate
existence of Ndigbo and also the well
being of Nigerians.
“Disengaging people from service on
account of place of origin is backward
thinking. But as I said, it is still on the
plane of rumour and we don’t react to
rumours but to substance. For now it is
not true, when it is true the issue will be
addressed. I think the Ndigbo is a united
people and we shall not allow anything
to disintegrate this unity. I think it will
be unfortunate if such a thing happens.”
He stressed that the state government
would not be part of any process that
would cause disaffection among citizens
because of indigenization. He added that
non-indigenes in the state were
gainfully occupying sensitive positions,
even in the state executive council.
His words:“Since we talking about true
federalism, we cannot achieve much by
being sectional or calling some
‘indigenes’ and some others ‘non
indigenes.’ So, for us to achieve true
federalism, we must get people to feel at
home wherever they are. We looking at
a situation where an individual from
Kaduna comes to Ebonyi State and
stands for any election and the man
from Ebonyi goes to Lagos, stands for
an election and gets elected and serves
his term.
“The position of Abia State government
is yet to be made available to the Ebonyi
State Government but as I said it is still a
rumour. But if that turns out to be true,
the matter will be looked at collectively
by the state executive council and a
position will be taken. In the interim, it is
still a rumour and we shall treat it as
such. But I want to inform that there are
Abians and people who are from other
states that work in Ebonyi unhindered
and unmarginalized, not witch hunted
and we see ourselves as brothers and
sisters.”
Tuesday, 1 November 2011
Despite Gaddafi’s fate, Africa’s despotstrudge on
Sulaimon
Olanrewaju
reports
that
despite
the
dethronement
and
death
of
Muammar
Gaddafi,
former
Libyan
ruler,
which has further decimated the rank of
Africa's despots, the continent's remaining
dictators show no sign of relinquishing
power even after being in the saddle for
decades.
AT the initial stage of his 42-year reign in
Libya, Colonel Muammar Gaddafi was the
common man's hero as he pandered to the
whims of the people. He brought visible
changes to the country and made life
meaningful to the average citizens. He was
said to have provided electricity, housing,
education, infrastructure, health care,
employment, executed world's largest
irrigation project, shared part of the oil
receipts with the people and more. But he
ran into problem with his people because
he denied them their fundamental right; the
right to choose their own leaders.
Throughout his 42-year reign, he
successfully reined in opposition. He
brooked no contrary opinion; everyone
who voiced a converse concern was treated
as an enemy because dissent was
pronounced illegal in 1973 and those found
guilty of the law either ended up six feet
below the ground level or hundreds of
miles away in foreign lands. In 1974, the
former Libyan ruler also declared that
anyone found guilty of forming a political
party would be executed. Thus, Gaddafi
steadily depleted opposition groups until he
came to see himself as Lord over Libya. By
then, he had reached the peak as Libya's
maximum ruler, but that also was the
beginning of his decline.
As more people who Gaddafi perceived as
enemies escaped from Libya, the exiles
began to gather outside their homeland to
form a force against Gaddafi. The exiles,
working in concert with dissatisfied Libyans
within the country, formed an interim
government known as the National
Transition Council (NTC), which capitalised
on the delay in the delivery of housing
units promised by the government to cause
unrest by staging series of protests in
January this year. The government
promptly reacted to this by floating a
20billion euro investment fund to provide
housing and development.
Though the government's gesture scaled
down the level of protest, it did not last as
there were fresh outbreaks of violence in
February. Aided by the North Atlantic Treaty
Organisation (NATO) forces, the Libyan crisis
escalated daily until it became a civil war.
Initially, Gaddafi discountenanced the
protesters, but with the fall of Benghazi in
February, followed by Tobruk, Misrata,
Bayda and other cities, the heat became
very fierce on the maximum ruler. But there
was no respite until he eventually lost
Tripoli to the rebels and was later captured
in his home town of Sirte before being
killed.
Gaddafi was the hero of many African
despots because he was seen to be firmly in
control of his country and had enough
resources to ward off unwanted foreign
meddling even as he helped many
dissidents to power in other countries.
Therefore, his conquer should have sent a
signal to other dictators that they cannot
have their way perpetually. However, this
has not been the case as many of them
believe they are invincible and stubbornly
hold on to power despite rebellion in their
homesteads.
Teodore Obiang Mbasogo
The Equatorial Guinea strongman became
the country's president in 1979 after
staging a coup that ousted Francisco Macia
Nguema. With the coming of a new
constitution in 1982, he was elected in an
election where he was the sole candidate as
president for a term of seven years and
was re-elected in 1989 also as a sole
candidate. Even after other political parties
were allowed to participate in the election,
he was re-elected in 1996, 2002 and 2009.
One of the rationales for the coup that
brought Mbasogo to power was that his
predecessor was brutal and had embarked
on genocide. Though, initially Mbasogo was
seen to be moderate, in order to have
absolute control on the state, he is also said
to have embarked on “unlawful killings
using security forces, government-
sanctioned kidnappings, systematic torture
of prisoners and detainees by security
forces, life threatening conditions in prisons
and detention facilities, impunity, arbitrary
arrest, detention, and incommunicado
detention.”
Olanrewaju
reports
that
despite
the
dethronement
and
death
of
Muammar
Gaddafi,
former
Libyan
ruler,
which has further decimated the rank of
Africa's despots, the continent's remaining
dictators show no sign of relinquishing
power even after being in the saddle for
decades.
AT the initial stage of his 42-year reign in
Libya, Colonel Muammar Gaddafi was the
common man's hero as he pandered to the
whims of the people. He brought visible
changes to the country and made life
meaningful to the average citizens. He was
said to have provided electricity, housing,
education, infrastructure, health care,
employment, executed world's largest
irrigation project, shared part of the oil
receipts with the people and more. But he
ran into problem with his people because
he denied them their fundamental right; the
right to choose their own leaders.
Throughout his 42-year reign, he
successfully reined in opposition. He
brooked no contrary opinion; everyone
who voiced a converse concern was treated
as an enemy because dissent was
pronounced illegal in 1973 and those found
guilty of the law either ended up six feet
below the ground level or hundreds of
miles away in foreign lands. In 1974, the
former Libyan ruler also declared that
anyone found guilty of forming a political
party would be executed. Thus, Gaddafi
steadily depleted opposition groups until he
came to see himself as Lord over Libya. By
then, he had reached the peak as Libya's
maximum ruler, but that also was the
beginning of his decline.
As more people who Gaddafi perceived as
enemies escaped from Libya, the exiles
began to gather outside their homeland to
form a force against Gaddafi. The exiles,
working in concert with dissatisfied Libyans
within the country, formed an interim
government known as the National
Transition Council (NTC), which capitalised
on the delay in the delivery of housing
units promised by the government to cause
unrest by staging series of protests in
January this year. The government
promptly reacted to this by floating a
20billion euro investment fund to provide
housing and development.
Though the government's gesture scaled
down the level of protest, it did not last as
there were fresh outbreaks of violence in
February. Aided by the North Atlantic Treaty
Organisation (NATO) forces, the Libyan crisis
escalated daily until it became a civil war.
Initially, Gaddafi discountenanced the
protesters, but with the fall of Benghazi in
February, followed by Tobruk, Misrata,
Bayda and other cities, the heat became
very fierce on the maximum ruler. But there
was no respite until he eventually lost
Tripoli to the rebels and was later captured
in his home town of Sirte before being
killed.
Gaddafi was the hero of many African
despots because he was seen to be firmly in
control of his country and had enough
resources to ward off unwanted foreign
meddling even as he helped many
dissidents to power in other countries.
Therefore, his conquer should have sent a
signal to other dictators that they cannot
have their way perpetually. However, this
has not been the case as many of them
believe they are invincible and stubbornly
hold on to power despite rebellion in their
homesteads.
Teodore Obiang Mbasogo
The Equatorial Guinea strongman became
the country's president in 1979 after
staging a coup that ousted Francisco Macia
Nguema. With the coming of a new
constitution in 1982, he was elected in an
election where he was the sole candidate as
president for a term of seven years and
was re-elected in 1989 also as a sole
candidate. Even after other political parties
were allowed to participate in the election,
he was re-elected in 1996, 2002 and 2009.
One of the rationales for the coup that
brought Mbasogo to power was that his
predecessor was brutal and had embarked
on genocide. Though, initially Mbasogo was
seen to be moderate, in order to have
absolute control on the state, he is also said
to have embarked on “unlawful killings
using security forces, government-
sanctioned kidnappings, systematic torture
of prisoners and detainees by security
forces, life threatening conditions in prisons
and detention facilities, impunity, arbitrary
arrest, detention, and incommunicado
detention.”
Monday, 31 October 2011
Nationalised banks AMCON namesAjekigbe, Onwuka, Bello as heads •CBNmay peg naira at N155 per dollar
Tuesday, 01 November 2011
Share
IN exercise of part of its responsibilities, the
Asset Management Corporation of Nigeria
(AMCON) has appointed non-executive
directors for the three banks that were
nationalised recently.
However, these appointments are subject to
final regulatory approval from the Central
Bank of Nigeria (CBN).
According to a statement from the
corporation on Monday, these nominees
emerged from an exhaustive process,
which involved wide consultation and
review, stressing that it is confident that the
prospective directors are well qualified to
add significant value to their institutions.
For Keystone Bank, the chairman is Moyo
Ajekigbe. The non-executive directors are
Prince Niyi Akenzua; Adolphus Ekpe; Charles
Chidebe Umolu; Yakubu Shehu; Mustapha
Ibrahim; Brigadier-General Aminu-Kano;
Maria Olateju Phillips; Yusufu Pam and
Jacob Olusegun Olusanya.
The Mainstreet Bank is headed by Falalu
Bello. The non-executive directors are
Yabawa Wabi; Mohammed Gulani Shuaibu;
Professor Osita Ogbu; Joshua Ogunlowo;
Abdullahi Sarki Mahmoud; Shuaib Idris;
Shehu Saad; Chris Osiomha Itede and Mr Ayo
Ajayi
On the other hand, the Enterprise Bank has
Emeka Onwuka as the chairman. The non-
executive directors are Sanusi Monguno;
Ebenezer Foby; Asmau Sani Maikudi; Lamis
Dikko; John Aderibigbe; Garba Imam; Ogala
Osaka; Ismaila Shuaibu and Ezekiel Gomos.
The statement noted that with these
appointments, the boards of these banks
were now fully constituted, urging them to
set a standard for good governance and
efficiency.
Meanwhile, the Nigeria Deposit Insurance
Corporation (NDIC) disclosed in Abuja on
Monday that it had so far recovered over
N22.158 billion debt from liquidated banks.
Senate heard from NDIC that as of August
this year, the cumulated debt recovery from
liquidated banks stood at N22.158 billion.
The Managing Director of NDIC, Umaru
Ibrahim, who appeared before the Senate
Committee on Banking, Insurance and other
Financial Institutions, added that the
depositors’ fund in the 24 operating banks
in Nigeria was N12.15 trillion.
He briefed the committee chaired by
Senator Ayoade Adeseun that the sum of
N8.33 million had been recovered to date, in
respect of closed micro finance banks
whose number is now 882.
According to him, “the total assets of the 24
deposit money banks in operation as at
September 2011 stood at about N18.40
trillion, while total deposits amounted to
N12.15 trillion.
“For the 24 operating banks, as at
September 2011, the total insured deposits
stood at N1.65 trillion, while the deposit
insurance fund was N347 billion.”
On the micro finance banks he said “their
assets as at June 2011 stood at N154.34
billion, while their total deposits amounted
to N68.60 billion. The insured deposits for
the reporting MFBS as at June 2011 stood at
N51.45 billion, indicating that about 75 per
cent of funds in the MFBs are fully covered.”
Ibrahim revealed that the cumulative
liquidation divi-dend paid to the depositors
and other claimants of the affected banks
was N6.161 billion out of N16.85 billion,
representing about 37 per cent, saying that
“so far, the corporation has paid a total sum
of N1.28 million as liquidation dividends to
shareholders of three banks in-liquidation.”
He informed that NDIC had established the
exi-stence of 560,882 claims by members
of the public against 440 illegal banks
known as wonder banks and which
amounted to N106.94 billion, saying that
“the situation had implica-tion for financial
stability.”
From the figures pre-sented before the
committee, total assets of existing banks
were put at N18.40 trillion; total depositors,
44.218 million and total number of insured
depositors fully covered was put at
42,884,446.
NDIC put the figure of non-performing loans
at N688 trillion; total insider credits,
N559.58 billion; non-performing, N21.19
billion and gave the figure of female
borrowers and amount owed at 130,885
and N22.62 billion.
The total number of male borrowers and
the amount owed was put at 118,373 and
N25.53 billion respectively, shareholders’
funds put at N38.05 billion, while the total
loans figure was put at N48.15 billion.
In another development, as part of
measures to check volatility in the foreign
exchange market, the Central Bank of
Nigeria (CBN) Governor has concluded plans
to review its target band for the naira in the
next few days.
In an interview with a foreign news media
organisation in Abuja, on Monday, CBN
Governor, Lamido Sanusi, said the review
would depend on where the exchange rate
settled, as it might be moved to midpoint of
N155/N156 to the dollar, compared to its
current N150.
According to Sanusi, the apex bank’s policy
is currently to maintain the naira within
around three per cent either side of the
N150 level.
Share
IN exercise of part of its responsibilities, the
Asset Management Corporation of Nigeria
(AMCON) has appointed non-executive
directors for the three banks that were
nationalised recently.
However, these appointments are subject to
final regulatory approval from the Central
Bank of Nigeria (CBN).
According to a statement from the
corporation on Monday, these nominees
emerged from an exhaustive process,
which involved wide consultation and
review, stressing that it is confident that the
prospective directors are well qualified to
add significant value to their institutions.
For Keystone Bank, the chairman is Moyo
Ajekigbe. The non-executive directors are
Prince Niyi Akenzua; Adolphus Ekpe; Charles
Chidebe Umolu; Yakubu Shehu; Mustapha
Ibrahim; Brigadier-General Aminu-Kano;
Maria Olateju Phillips; Yusufu Pam and
Jacob Olusegun Olusanya.
The Mainstreet Bank is headed by Falalu
Bello. The non-executive directors are
Yabawa Wabi; Mohammed Gulani Shuaibu;
Professor Osita Ogbu; Joshua Ogunlowo;
Abdullahi Sarki Mahmoud; Shuaib Idris;
Shehu Saad; Chris Osiomha Itede and Mr Ayo
Ajayi
On the other hand, the Enterprise Bank has
Emeka Onwuka as the chairman. The non-
executive directors are Sanusi Monguno;
Ebenezer Foby; Asmau Sani Maikudi; Lamis
Dikko; John Aderibigbe; Garba Imam; Ogala
Osaka; Ismaila Shuaibu and Ezekiel Gomos.
The statement noted that with these
appointments, the boards of these banks
were now fully constituted, urging them to
set a standard for good governance and
efficiency.
Meanwhile, the Nigeria Deposit Insurance
Corporation (NDIC) disclosed in Abuja on
Monday that it had so far recovered over
N22.158 billion debt from liquidated banks.
Senate heard from NDIC that as of August
this year, the cumulated debt recovery from
liquidated banks stood at N22.158 billion.
The Managing Director of NDIC, Umaru
Ibrahim, who appeared before the Senate
Committee on Banking, Insurance and other
Financial Institutions, added that the
depositors’ fund in the 24 operating banks
in Nigeria was N12.15 trillion.
He briefed the committee chaired by
Senator Ayoade Adeseun that the sum of
N8.33 million had been recovered to date, in
respect of closed micro finance banks
whose number is now 882.
According to him, “the total assets of the 24
deposit money banks in operation as at
September 2011 stood at about N18.40
trillion, while total deposits amounted to
N12.15 trillion.
“For the 24 operating banks, as at
September 2011, the total insured deposits
stood at N1.65 trillion, while the deposit
insurance fund was N347 billion.”
On the micro finance banks he said “their
assets as at June 2011 stood at N154.34
billion, while their total deposits amounted
to N68.60 billion. The insured deposits for
the reporting MFBS as at June 2011 stood at
N51.45 billion, indicating that about 75 per
cent of funds in the MFBs are fully covered.”
Ibrahim revealed that the cumulative
liquidation divi-dend paid to the depositors
and other claimants of the affected banks
was N6.161 billion out of N16.85 billion,
representing about 37 per cent, saying that
“so far, the corporation has paid a total sum
of N1.28 million as liquidation dividends to
shareholders of three banks in-liquidation.”
He informed that NDIC had established the
exi-stence of 560,882 claims by members
of the public against 440 illegal banks
known as wonder banks and which
amounted to N106.94 billion, saying that
“the situation had implica-tion for financial
stability.”
From the figures pre-sented before the
committee, total assets of existing banks
were put at N18.40 trillion; total depositors,
44.218 million and total number of insured
depositors fully covered was put at
42,884,446.
NDIC put the figure of non-performing loans
at N688 trillion; total insider credits,
N559.58 billion; non-performing, N21.19
billion and gave the figure of female
borrowers and amount owed at 130,885
and N22.62 billion.
The total number of male borrowers and
the amount owed was put at 118,373 and
N25.53 billion respectively, shareholders’
funds put at N38.05 billion, while the total
loans figure was put at N48.15 billion.
In another development, as part of
measures to check volatility in the foreign
exchange market, the Central Bank of
Nigeria (CBN) Governor has concluded plans
to review its target band for the naira in the
next few days.
In an interview with a foreign news media
organisation in Abuja, on Monday, CBN
Governor, Lamido Sanusi, said the review
would depend on where the exchange rate
settled, as it might be moved to midpoint of
N155/N156 to the dollar, compared to its
current N150.
According to Sanusi, the apex bank’s policy
is currently to maintain the naira within
around three per cent either side of the
N150 level.
Tension in Jonathan’s, Buhari’s camps•As Appeal Court declares winnertoday •Supreme Court dismissesJonathan’s case
Tuesday, 01 November 2011
Share
THE presidential election tribunal sitting at
the Court of Appeal, Abuja, will today deliver
judgment in the petition brought by the
Congress for Progressive Change (CPC)
challenging the declaration of President
Goodluck Jonathan as the winner of the
April 16 presidential election in the country.
In a notice to counsel in the matter obtained
by Nigerian Tribune, the tribunal has
scheduled judgment in the matter for 9.00
a.m.
The tribunal had, on October 20, ended its
sitting on the CPC petition after taking all the
witnesses and all parties adopted their
addresses.
At the last hearing of the matter, counsel for
the CPC, Oladipo Okpeseyi (SAN), had, while
adopting his final address, told the court
that he filed a preliminary objection against
the defendants’ written addresses to the
effect that INEC abandoned its pleading
having not called witnesses to substantiate
them.
He said that the INEC had called only three
witnesses out of the 36 states of the
federation and the Federal Capital Territory
and, as such, had abandoned its defence.
He pointed out that INEC had not provided
any evidence before the tribunal to defend
the victory of President Jonathan, who it
returned on April 18, 2011 as the winner of
the presidential election.
Okpeseyi said: "We submit that the
confusion epitomises what we are saying
about INEC and that is why we have asked
them to bring those documents which it
used in conducting the presidential election
to court,” even as he urged the court to
nullify the election.”
Counsel for President Jonathan and Vice-
President Namadi Sambo, Wole Olanipekun
(SAN), in his final address, said "we have
referred to earlier ruling of this court on
July 14, 2011, where the court struck out
relief number six.”
Olanipekun said the tribunal had refused to
grant relief six, which sought for a conduct
of a fresh presidential election between the
CPC candidate, Muhammadu Buhari and
President Jonathan on the grounds that
Buhari was not a party to the petition.
Olanipekun added that, notwithstanding,
that evidence had been taken on the
petition, the hearing amounted to a mere
academic exercise.
He consequently urged the court to dismiss
this petition, which he said had been
abandoned against President Jonathan and
his deputy.
In his own submission while adopting his
address, counsel for INEC, Adegboyega
Awomolo (SAN) said, "a party is supposed to
rely on evidence presented before court
and also authorities cited. But in this case,
the petitioners tendered as evidence
documents that belong to INEC.
“These are documents that are meant to
support INEC and its chairman, Professor
Attahiru Jega’s position that the election
was conducted in full compliance with the
Electoral Act 2010."
He, therefore, asked the court to dismiss the
petition.
In adopting his address, counsel for the PDP,
Amaechi Nwaiwu (SAN), said outside the
criminal allegation made, what was left
could not sustain the petition and that the
criminal allegation was on the basis of non-
compliance with the Electoral Act.
He added that what CPC filed as a
preliminary objection did not merit to be
called a preliminary objection, hence he
asked the court to dismiss both the petition
and the preliminary objection.
Buhari, who had stormed the tribunal
alongside his running mate, Tunde Bakare,
CPC chairman, Tony Momoh and the party’s
National Secretary, Buba Galadima, among
other party faithful, told journalists after the
court session that he was in court as a
member of the CPC.
It will be recalled that before the CPC filed
the petition, Buhari was reported as saying
that he would not go to court to challenge
the victory of the PDP but when he was
spotted in court among his party loyalists,
journalists confronted him on the issue and
he replied that he was in court like any
other member of the CPC.
According to the former head of state, who
has contested the presidential poll three
consecutive times but lost: “I have never
distanced myself from the CPC petition. I am
part of the party and subscribed to the
petition. I have confidence in the judiciary. I
have never said I don’t have confidence in
the judiciary."
Also speaking to journalists, the National
Publicity Secretary of the PDP, Rufai Ahmed
Alkali, said he had been so happy with the
proceedings at the tribunal as, according to
him, “except that the opponent
overdramatised the situation. Quite a
number of times, our opponent has
overdramatised the situation in an attempt
to achieve a predetermined political
objective.
“The presiding justice reminded everybody
in court that we do not have any other
country except Nigeria. Each and every
citizen of this country has a responsibility
to pursue goals and actions and other
strategies to protect our institutions. If you
destroy our institutions, you are invariably
destroying our country.
“We are confident that with the
submissions of our counsel, who asked the
court to dismiss the petition of CPC, that we
would win the case."
He pointed out that what has happened to
the CPC national publicity secretary “is what
we have earlier expected him to do, that is
to apologise to the court about the
publication he authored.”
The PDP spokesman slammed the CPC for
allegedly failing to allow morality to take
centre stage in the way and manner it had
been playing politics since the party came
into existence.
Alkali accused the CPC of desecrating the
judiciary and ridiculing judges with
impunity and cautioned that the party
leadership should learn how to play politics
with morals.
The PDP national publicity secretary insisted
that it was a big shame for the CPC to cast
aspersions on the judiciary in the public
only to come before open court to swallow
his pride with apology.
The PDP chieftain maintained that the
judiciary today, irrespective of any person’s
opinion, remained the vibrant hope of the
common man and a strong pillar for
democracy in the country.
He thanked the appeal court justices sitting
in the panel for accepting the apology of
Fasakin, but appealed that the CPC
leadership should learn to be cautious and
learn how to respect institutions.
Alkali said those aspiring to lead the nation
must protect and preserve the integrity of
the judiciary, for the sake of the nation.
The party also expressed confidence that it
would emerge victorious in the judgment
billed to be delivered in the CPC petition.
Alkali said the entire proceedings had been
evaluated by the PDP and its team of
lawyers and was confident that there was
no cause for Nigerians who voted
massively for the president to panic.
Meanwhile, the Supreme Court had, on
Monday, struck out the appeal filed by
President Jonathan, INEC and the PDP, over a
ruling delivered by the presidential election
petitions tribunal on July 14, which held that
the petition filed on a Sunday by the CPC,
seeking to upturn Jonathan's election is
competent and proper in law.
The five-man panel of the apex court,
headed by Justice Walter Onnoghen, while
dismissing the appeal, held that it was no
longer alive, because it had stayed more
than 60 days, contrary to Section 285 (7) of
the 1999 Constitution (as amended).
He further held that since the appeal was
dead, it had become an academic exercise.
The justice said Section 285 (7) mandated
the appeal to be determined within 60 days,
but it was coming after the specified
number of days, hence it could not be
regarded as being alive.
The court, therefore, struck out the appeal
for lacking in merit.
President Jonathan and PDP had, last week,
expressed divergent views on whether the
appeal filed against the hearing of the
petition of the CPC should be heard or not.
While the PDP, which filed the appeal, stood
its ground that the case was still alive, the
president said it was dead and should not
be heard, having been filed outside the
mandatory 60 days provided by the
constitution.
The appeal arose from the July 14 ruling by
the suspended president of the Court of
Appeal, Justice Isa Ayo Salami, to the effect
that CPC petition was in order, though it was
filed on a Sunday, a non-working day for
government institutions.
Share
THE presidential election tribunal sitting at
the Court of Appeal, Abuja, will today deliver
judgment in the petition brought by the
Congress for Progressive Change (CPC)
challenging the declaration of President
Goodluck Jonathan as the winner of the
April 16 presidential election in the country.
In a notice to counsel in the matter obtained
by Nigerian Tribune, the tribunal has
scheduled judgment in the matter for 9.00
a.m.
The tribunal had, on October 20, ended its
sitting on the CPC petition after taking all the
witnesses and all parties adopted their
addresses.
At the last hearing of the matter, counsel for
the CPC, Oladipo Okpeseyi (SAN), had, while
adopting his final address, told the court
that he filed a preliminary objection against
the defendants’ written addresses to the
effect that INEC abandoned its pleading
having not called witnesses to substantiate
them.
He said that the INEC had called only three
witnesses out of the 36 states of the
federation and the Federal Capital Territory
and, as such, had abandoned its defence.
He pointed out that INEC had not provided
any evidence before the tribunal to defend
the victory of President Jonathan, who it
returned on April 18, 2011 as the winner of
the presidential election.
Okpeseyi said: "We submit that the
confusion epitomises what we are saying
about INEC and that is why we have asked
them to bring those documents which it
used in conducting the presidential election
to court,” even as he urged the court to
nullify the election.”
Counsel for President Jonathan and Vice-
President Namadi Sambo, Wole Olanipekun
(SAN), in his final address, said "we have
referred to earlier ruling of this court on
July 14, 2011, where the court struck out
relief number six.”
Olanipekun said the tribunal had refused to
grant relief six, which sought for a conduct
of a fresh presidential election between the
CPC candidate, Muhammadu Buhari and
President Jonathan on the grounds that
Buhari was not a party to the petition.
Olanipekun added that, notwithstanding,
that evidence had been taken on the
petition, the hearing amounted to a mere
academic exercise.
He consequently urged the court to dismiss
this petition, which he said had been
abandoned against President Jonathan and
his deputy.
In his own submission while adopting his
address, counsel for INEC, Adegboyega
Awomolo (SAN) said, "a party is supposed to
rely on evidence presented before court
and also authorities cited. But in this case,
the petitioners tendered as evidence
documents that belong to INEC.
“These are documents that are meant to
support INEC and its chairman, Professor
Attahiru Jega’s position that the election
was conducted in full compliance with the
Electoral Act 2010."
He, therefore, asked the court to dismiss the
petition.
In adopting his address, counsel for the PDP,
Amaechi Nwaiwu (SAN), said outside the
criminal allegation made, what was left
could not sustain the petition and that the
criminal allegation was on the basis of non-
compliance with the Electoral Act.
He added that what CPC filed as a
preliminary objection did not merit to be
called a preliminary objection, hence he
asked the court to dismiss both the petition
and the preliminary objection.
Buhari, who had stormed the tribunal
alongside his running mate, Tunde Bakare,
CPC chairman, Tony Momoh and the party’s
National Secretary, Buba Galadima, among
other party faithful, told journalists after the
court session that he was in court as a
member of the CPC.
It will be recalled that before the CPC filed
the petition, Buhari was reported as saying
that he would not go to court to challenge
the victory of the PDP but when he was
spotted in court among his party loyalists,
journalists confronted him on the issue and
he replied that he was in court like any
other member of the CPC.
According to the former head of state, who
has contested the presidential poll three
consecutive times but lost: “I have never
distanced myself from the CPC petition. I am
part of the party and subscribed to the
petition. I have confidence in the judiciary. I
have never said I don’t have confidence in
the judiciary."
Also speaking to journalists, the National
Publicity Secretary of the PDP, Rufai Ahmed
Alkali, said he had been so happy with the
proceedings at the tribunal as, according to
him, “except that the opponent
overdramatised the situation. Quite a
number of times, our opponent has
overdramatised the situation in an attempt
to achieve a predetermined political
objective.
“The presiding justice reminded everybody
in court that we do not have any other
country except Nigeria. Each and every
citizen of this country has a responsibility
to pursue goals and actions and other
strategies to protect our institutions. If you
destroy our institutions, you are invariably
destroying our country.
“We are confident that with the
submissions of our counsel, who asked the
court to dismiss the petition of CPC, that we
would win the case."
He pointed out that what has happened to
the CPC national publicity secretary “is what
we have earlier expected him to do, that is
to apologise to the court about the
publication he authored.”
The PDP spokesman slammed the CPC for
allegedly failing to allow morality to take
centre stage in the way and manner it had
been playing politics since the party came
into existence.
Alkali accused the CPC of desecrating the
judiciary and ridiculing judges with
impunity and cautioned that the party
leadership should learn how to play politics
with morals.
The PDP national publicity secretary insisted
that it was a big shame for the CPC to cast
aspersions on the judiciary in the public
only to come before open court to swallow
his pride with apology.
The PDP chieftain maintained that the
judiciary today, irrespective of any person’s
opinion, remained the vibrant hope of the
common man and a strong pillar for
democracy in the country.
He thanked the appeal court justices sitting
in the panel for accepting the apology of
Fasakin, but appealed that the CPC
leadership should learn to be cautious and
learn how to respect institutions.
Alkali said those aspiring to lead the nation
must protect and preserve the integrity of
the judiciary, for the sake of the nation.
The party also expressed confidence that it
would emerge victorious in the judgment
billed to be delivered in the CPC petition.
Alkali said the entire proceedings had been
evaluated by the PDP and its team of
lawyers and was confident that there was
no cause for Nigerians who voted
massively for the president to panic.
Meanwhile, the Supreme Court had, on
Monday, struck out the appeal filed by
President Jonathan, INEC and the PDP, over a
ruling delivered by the presidential election
petitions tribunal on July 14, which held that
the petition filed on a Sunday by the CPC,
seeking to upturn Jonathan's election is
competent and proper in law.
The five-man panel of the apex court,
headed by Justice Walter Onnoghen, while
dismissing the appeal, held that it was no
longer alive, because it had stayed more
than 60 days, contrary to Section 285 (7) of
the 1999 Constitution (as amended).
He further held that since the appeal was
dead, it had become an academic exercise.
The justice said Section 285 (7) mandated
the appeal to be determined within 60 days,
but it was coming after the specified
number of days, hence it could not be
regarded as being alive.
The court, therefore, struck out the appeal
for lacking in merit.
President Jonathan and PDP had, last week,
expressed divergent views on whether the
appeal filed against the hearing of the
petition of the CPC should be heard or not.
While the PDP, which filed the appeal, stood
its ground that the case was still alive, the
president said it was dead and should not
be heard, having been filed outside the
mandatory 60 days provided by the
constitution.
The appeal arose from the July 14 ruling by
the suspended president of the Court of
Appeal, Justice Isa Ayo Salami, to the effect
that CPC petition was in order, though it was
filed on a Sunday, a non-working day for
government institutions.
Olubadan blasts Ajimobi over Obas’council
IBADAN – OLUBADAN of Ibadan, Oba
Samuel Odulana Odugade, has expressed
displeasure with Oyo state government
over alleged indefinite suspension of
the meetings of the Oyo state Council of
Obas and Chiefs. Ajimobi, a native of
Ibadan, is one of the Oba’s subjects.
But Governor Abiola Ajimobi, said he had
great regards for the traditional stool of
the Olubadan of Ibadan, all traditional
institutions in the state and would not
look down on the ancient stool, saying
“the case under consideration is in
court.”
To the monarch, the action of the
governor is tantamount to illegality
since the law of the state recognizes
holding of the meeting being presided
over by him.
It will be recalled that the immediate past
governor of the state, Adebayo Alao-
Akala signed into law a bill forwarded to
him by the then state House of Assembly
amending the laws of the council which
recognized the Alaafin of Oyo, Oba
Lamidi Adeyemi as the permanent
chairman of the council.
The amended law recognizes rotation of
the chairmanship among the Alaafin,
Olubadan and the Soun of Ogbomoso,
Oba Jimoh Oyewumi. Upon the
amended law, the Olubadan of Ibadan
summoned a maiden meeting about
three months ago but the development
triggered fresh controversy between
those that prefer rotation of the seat
and Alaafin who prefers the permanent
chairmanship to be his exclusive
preserve.
Olubadan who spoke through Osi
Olubadan, High Chief Lekan Balogun at
the 10th anniversary of the Premier FM
held in Ibadan, said “The governor has
suspended the Council of Obas. I don’t
think he has the power to do so, but he
has done it. I don’t know what he is
doing about it. Olubadan is the
Chairman, and that is the law. As at
today, that is the law. The governor
must have thought otherwise and that
must have informed the suspension of
the Council. We wish him luck and we
are not rocking the boat. But he is
wrong and his action is illegal.”
Reacting to the Olubadan, Ajimobi, said,
“the governor of Oyo State, Senator
Abiola Ajimobi, has great regards for the
traditional stool of the Olubadan of
Ibadan, all traditional institutions in the
state and would not look down on the
ancient stool.
However, the case under consideration
is in court. Indeed, the Alaafin of Oyo
went to court before the Council of Oba
meeting was convened. It would thus be
an affront on the authority of the court
to allow the meeting to hold while the
state government was aware of the
court process.
“Indeed, it is common jurisprudential
knowledge that no party to a case shall
take any action during the pendency of
a case as this may prejudice judgment.
As a government that swore to uphold
the integrity of the judiciary, Governor
Ajimobi had no option than to abide by
the law. We are not a lawless
government,” the governor said.
Also speaking at the event, Senator
Olufemi Lanlehin representing Oyo
South in the National Assembly, faulted
the way federalism is being practised in
the country.
Senator Lanlehin, who was the chairman
of the occasion commented on the topic
of the lecture entitled: “Peace as Panacea
for National Development” said:
“Federal Government has no business
handling matters relating to agriculture,
transportation, labour and so on. This
should be the major concern of State
and local governments because they
have direct link with major players in
those sectors.”
Samuel Odulana Odugade, has expressed
displeasure with Oyo state government
over alleged indefinite suspension of
the meetings of the Oyo state Council of
Obas and Chiefs. Ajimobi, a native of
Ibadan, is one of the Oba’s subjects.
But Governor Abiola Ajimobi, said he had
great regards for the traditional stool of
the Olubadan of Ibadan, all traditional
institutions in the state and would not
look down on the ancient stool, saying
“the case under consideration is in
court.”
To the monarch, the action of the
governor is tantamount to illegality
since the law of the state recognizes
holding of the meeting being presided
over by him.
It will be recalled that the immediate past
governor of the state, Adebayo Alao-
Akala signed into law a bill forwarded to
him by the then state House of Assembly
amending the laws of the council which
recognized the Alaafin of Oyo, Oba
Lamidi Adeyemi as the permanent
chairman of the council.
The amended law recognizes rotation of
the chairmanship among the Alaafin,
Olubadan and the Soun of Ogbomoso,
Oba Jimoh Oyewumi. Upon the
amended law, the Olubadan of Ibadan
summoned a maiden meeting about
three months ago but the development
triggered fresh controversy between
those that prefer rotation of the seat
and Alaafin who prefers the permanent
chairmanship to be his exclusive
preserve.
Olubadan who spoke through Osi
Olubadan, High Chief Lekan Balogun at
the 10th anniversary of the Premier FM
held in Ibadan, said “The governor has
suspended the Council of Obas. I don’t
think he has the power to do so, but he
has done it. I don’t know what he is
doing about it. Olubadan is the
Chairman, and that is the law. As at
today, that is the law. The governor
must have thought otherwise and that
must have informed the suspension of
the Council. We wish him luck and we
are not rocking the boat. But he is
wrong and his action is illegal.”
Reacting to the Olubadan, Ajimobi, said,
“the governor of Oyo State, Senator
Abiola Ajimobi, has great regards for the
traditional stool of the Olubadan of
Ibadan, all traditional institutions in the
state and would not look down on the
ancient stool.
However, the case under consideration
is in court. Indeed, the Alaafin of Oyo
went to court before the Council of Oba
meeting was convened. It would thus be
an affront on the authority of the court
to allow the meeting to hold while the
state government was aware of the
court process.
“Indeed, it is common jurisprudential
knowledge that no party to a case shall
take any action during the pendency of
a case as this may prejudice judgment.
As a government that swore to uphold
the integrity of the judiciary, Governor
Ajimobi had no option than to abide by
the law. We are not a lawless
government,” the governor said.
Also speaking at the event, Senator
Olufemi Lanlehin representing Oyo
South in the National Assembly, faulted
the way federalism is being practised in
the country.
Senator Lanlehin, who was the chairman
of the occasion commented on the topic
of the lecture entitled: “Peace as Panacea
for National Development” said:
“Federal Government has no business
handling matters relating to agriculture,
transportation, labour and so on. This
should be the major concern of State
and local governments because they
have direct link with major players in
those sectors.”
Making Nigeria ’s stable outlookmeaningful to citizens
Last week, Nigeria ’s sovereign ratings
outlook was revised to stable, from
negative, by Fitch Ratings, citing fiscal
consolidation and reforms in the various
sectors of the economy as responsible for
the new disposition.
“The revision of the Outlook on Nigeria ‘s
ratings to Stable, from Negative, reflects an
improved outlook for reforms, following
elections in April and the appointment of a
strong economic team. In addition, tighter
monetary policy and slightly better fiscal
discipline have arrested the rapid pace of
reserves decline seen in the first three
quarters of 2010, which had prompted the
Negative Outlook in October last year,” says
Veronica Kalema, a Director in Fitch’s
Sovereign group.
The Stable Outlook anticipates continued
reforms progress, a tighter budget for
2012, including progress towards scrapping
the petroleum subsidy and making Nigeria
Sovereign Investment Authority, the
sovereign wealth fund, operational.”
Nigeria ‘s key credit indicators - strong
growth, low public debt and a strong
external balance sheet - continue to provide
strong support to the rating. Fitch expects
Nigeria to sustain its high growth rates of
7%-8%, which are far higher than the ‘BB’
five-year median of 4.4%, as a result of the
planned reforms, continued recovery of oil
production and strong domestic demand.
Since then government and analysts have
been celebrating, saying it is a sign of
confidence in the ongoing reforms and also
that it is capable of increasing foreign fund
managers’ interests in her financial
instruments.
Rated entities in a number of sectors,
including financial and non-financial
corporations, sovereigns and insurance
companies, are generally assigned Issuer
Default Ratings (IDRs) on the entity’s relative
vulnerability to default on financial
obligations. The “threshold” default risk
addressed by the IDR is generally that of the
financial obligations whose non-payment
would best reflect the uncured failure of
that entity.
Fitch Ratings had lowered Nigeria ’s
sovereign credit outlook to Negative last
October from Stable, citing the depletion of
its windfall oil savings and heightened
political uncertainty, ahead of elections at
the time.
But, even as government and some analysts
are celebrating, others are asking of the
relevance of the upgrade to the citizens, in
terms of disposable income, cost of doing
business, exchange rate and interest rate
among others.
“The upgrsde is okay, but how has this
translated into improved living standard,
how has government’s large spending
positively affected my life of how have the
banking sector reforms improved access to
credit by the private sector or citizens, apart
from big corporations and high networth
individuals?”, querries Mustapha Sulaiman, a
chartered stock broker. Wale Abe, Executive
Secretary, Financial Market Dealers
Association of Nigeria commended the
upgrade but worried whether those
indicators used by Fitch would finally
translate into a better Nigerian economy.
Abe was optimistic that the finance minister,
based on her past records, would likely pull
through the implementation of those
economic reforms, but noted government’s
plans to cut down recurrent expenditure by
just 4 percent within four years, as not “just
exciting.” Ngozi Okonj-Iweala, the
Coordinating Minister for the Economy/
Minister of Finance, attributed the upgrade
to government’s determination to embark
on some strategic structural reforms,
particularly fiscal consolidation.
Okonjo-Iweala, described the upgrading
as“Great news for the country and a strong
foundation for the country to keep building
the ongoing economic reforms”.
“Fitch did this because of the medium term
budget of fiscal consolidation proposed by
the Ministry of Finance, in line with the
transformation agenda,” the economic
coordinating minister commented.
“We have to keep working hard to realise
the key priorities of the transformation
agenda – job creation and building key
infrastructure. But this positive
development gives us a strong foundation
to build on,” she added. But, some
stakeholders are of the opinion that a lot
needs to be done to make Nigerians benefit
from the positive outlook. They posited that
Nigeria should leverage on her natural
endowments to improve productivity in
other sectors and competitiveness,adding
that the current cost of doing business in
the country is still prohibitive and therefore
does not in any way make the positive
outlook to Nigerians.
Apart from the positive outlook, the agency
also affirmed Nigeria ’s long-term foreign
currency Issuer Default Rating (IDR) at ‘BB-’
and Long-term local currency IDR at ‘BB’. The
agency also affirmed the Short-term rating
at ‘B’ and Country Ceiling at ‘BB’. Fitch
Ratings had lowered Nigeria ’s sovereign
credit outlook to Negative last October from
Stable, citing the depletion of its windfall oil
savings and heightened political uncertainty
ahead of elections at the time.
The ratings agency had also indicated that it
would further lower its assessment of
Nigeria ’s economic prospects if the country
did not follow through with post-election
reforms to put the economy on a
sustainable path.
Johnson Chukwu, managing director/chief
executive officer, Cowry Asset management
limited said the rating is a good
development saying that by the time fuel
subsidy is removed and power sector
reforms take shape, Nigeria’s rating will
improve and that there are signs to agree
with the report that the outlook is stable.
Oby Ezekwesili, vice president, World Bank,
said although it progress of some sort, it
does not call for celebration when other
countries are getting triple As.
Ezekwesili, a former minister of education
and solid minerals, was of the opinion that a
lot needs to be done to make Nigrians feel
part of the upgrade.
She said, for instance, that private sector
cannot come into an economy where there
is negative rating; it cannot come into a
country where there is infrastructure
deficiency and where the cost of
transaction is too high. They will not come
into a country that has a key bottleneck and
in an environment with many hurdles in
doing business.
And so government has to focus on things
that will improve the business climate. Some
of those things include the bulk
bureaucratic reforms that have been going
on, but the most important is having a
macro economic stability that will ensure
that your fiscal activities are well ordered,
prudential and your monetary policy is such
that checks inflation, guaranty stability and
prohibits exchange rate volatility, so that
such stability will make investors take you
serious when making investment decision.
So, in order to address the infrastructure
deficit, the role of government and private
sector will become complementary.
“In terms of additional financing in an
annual basis that is needed, at least more
than $25 billion is needed to address
infrastructure; you can find private sector
and government sharing the risk that is
involved in it.”
Commenting on the fiscal problem facing
the country, Ezekwesili, said: “Well, it has to
do with fiscal consolidation of the budget.
By fiscal consolidation, we mean taking
hard fiscal responsibility in our budget. The
entire budget has to be looked at, not just
the size alone but the quality and structure
of the budget.
“There is urgent need to reduce the portion
of the recurrent expenditure of the
government, it is really urgent for
government to do so because no economy
can develop its infrastructure with the kind
of budget we have. It does not create the
basis of economic growth. The bride of
economic growth is the investment in
infrastructure and human capital for an
overall economic growth.
The part of fiscal consolidation really must
be considered. The government must live
within its means and it should not crowd
out the private sector by borrowing from
the domestic market where resources are
available for the development of the real
sector that has potentials for employment.
Commenting on the banking sector reforms
which the agency said was one of the
reasons for the upgrade, she said, “these
are early days we have to focus on both
monetary and fiscal policies. The monetary
authority has to keep focus on improving
the performance of the banking sector. The
most important thing is to ensure that credit
is revitalized in the system to reactivate the
real sector, because that is where the job
creation has to come from.
Some of the measures that are being taken
are on course but the high cost of doing
business by the Small Medium Scale
Enterprises (SMEs) is not just from the
lending aspect but from other transaction
costs, such as transport, energy, etc. So by
the time you reduce all the transaction costs
then there will be a balance when you
consider the cost of borrowing.”
MONDAY, 31 OCTOBER 2011 00:00
outlook was revised to stable, from
negative, by Fitch Ratings, citing fiscal
consolidation and reforms in the various
sectors of the economy as responsible for
the new disposition.
“The revision of the Outlook on Nigeria ‘s
ratings to Stable, from Negative, reflects an
improved outlook for reforms, following
elections in April and the appointment of a
strong economic team. In addition, tighter
monetary policy and slightly better fiscal
discipline have arrested the rapid pace of
reserves decline seen in the first three
quarters of 2010, which had prompted the
Negative Outlook in October last year,” says
Veronica Kalema, a Director in Fitch’s
Sovereign group.
The Stable Outlook anticipates continued
reforms progress, a tighter budget for
2012, including progress towards scrapping
the petroleum subsidy and making Nigeria
Sovereign Investment Authority, the
sovereign wealth fund, operational.”
Nigeria ‘s key credit indicators - strong
growth, low public debt and a strong
external balance sheet - continue to provide
strong support to the rating. Fitch expects
Nigeria to sustain its high growth rates of
7%-8%, which are far higher than the ‘BB’
five-year median of 4.4%, as a result of the
planned reforms, continued recovery of oil
production and strong domestic demand.
Since then government and analysts have
been celebrating, saying it is a sign of
confidence in the ongoing reforms and also
that it is capable of increasing foreign fund
managers’ interests in her financial
instruments.
Rated entities in a number of sectors,
including financial and non-financial
corporations, sovereigns and insurance
companies, are generally assigned Issuer
Default Ratings (IDRs) on the entity’s relative
vulnerability to default on financial
obligations. The “threshold” default risk
addressed by the IDR is generally that of the
financial obligations whose non-payment
would best reflect the uncured failure of
that entity.
Fitch Ratings had lowered Nigeria ’s
sovereign credit outlook to Negative last
October from Stable, citing the depletion of
its windfall oil savings and heightened
political uncertainty, ahead of elections at
the time.
But, even as government and some analysts
are celebrating, others are asking of the
relevance of the upgrade to the citizens, in
terms of disposable income, cost of doing
business, exchange rate and interest rate
among others.
“The upgrsde is okay, but how has this
translated into improved living standard,
how has government’s large spending
positively affected my life of how have the
banking sector reforms improved access to
credit by the private sector or citizens, apart
from big corporations and high networth
individuals?”, querries Mustapha Sulaiman, a
chartered stock broker. Wale Abe, Executive
Secretary, Financial Market Dealers
Association of Nigeria commended the
upgrade but worried whether those
indicators used by Fitch would finally
translate into a better Nigerian economy.
Abe was optimistic that the finance minister,
based on her past records, would likely pull
through the implementation of those
economic reforms, but noted government’s
plans to cut down recurrent expenditure by
just 4 percent within four years, as not “just
exciting.” Ngozi Okonj-Iweala, the
Coordinating Minister for the Economy/
Minister of Finance, attributed the upgrade
to government’s determination to embark
on some strategic structural reforms,
particularly fiscal consolidation.
Okonjo-Iweala, described the upgrading
as“Great news for the country and a strong
foundation for the country to keep building
the ongoing economic reforms”.
“Fitch did this because of the medium term
budget of fiscal consolidation proposed by
the Ministry of Finance, in line with the
transformation agenda,” the economic
coordinating minister commented.
“We have to keep working hard to realise
the key priorities of the transformation
agenda – job creation and building key
infrastructure. But this positive
development gives us a strong foundation
to build on,” she added. But, some
stakeholders are of the opinion that a lot
needs to be done to make Nigerians benefit
from the positive outlook. They posited that
Nigeria should leverage on her natural
endowments to improve productivity in
other sectors and competitiveness,adding
that the current cost of doing business in
the country is still prohibitive and therefore
does not in any way make the positive
outlook to Nigerians.
Apart from the positive outlook, the agency
also affirmed Nigeria ’s long-term foreign
currency Issuer Default Rating (IDR) at ‘BB-’
and Long-term local currency IDR at ‘BB’. The
agency also affirmed the Short-term rating
at ‘B’ and Country Ceiling at ‘BB’. Fitch
Ratings had lowered Nigeria ’s sovereign
credit outlook to Negative last October from
Stable, citing the depletion of its windfall oil
savings and heightened political uncertainty
ahead of elections at the time.
The ratings agency had also indicated that it
would further lower its assessment of
Nigeria ’s economic prospects if the country
did not follow through with post-election
reforms to put the economy on a
sustainable path.
Johnson Chukwu, managing director/chief
executive officer, Cowry Asset management
limited said the rating is a good
development saying that by the time fuel
subsidy is removed and power sector
reforms take shape, Nigeria’s rating will
improve and that there are signs to agree
with the report that the outlook is stable.
Oby Ezekwesili, vice president, World Bank,
said although it progress of some sort, it
does not call for celebration when other
countries are getting triple As.
Ezekwesili, a former minister of education
and solid minerals, was of the opinion that a
lot needs to be done to make Nigrians feel
part of the upgrade.
She said, for instance, that private sector
cannot come into an economy where there
is negative rating; it cannot come into a
country where there is infrastructure
deficiency and where the cost of
transaction is too high. They will not come
into a country that has a key bottleneck and
in an environment with many hurdles in
doing business.
And so government has to focus on things
that will improve the business climate. Some
of those things include the bulk
bureaucratic reforms that have been going
on, but the most important is having a
macro economic stability that will ensure
that your fiscal activities are well ordered,
prudential and your monetary policy is such
that checks inflation, guaranty stability and
prohibits exchange rate volatility, so that
such stability will make investors take you
serious when making investment decision.
So, in order to address the infrastructure
deficit, the role of government and private
sector will become complementary.
“In terms of additional financing in an
annual basis that is needed, at least more
than $25 billion is needed to address
infrastructure; you can find private sector
and government sharing the risk that is
involved in it.”
Commenting on the fiscal problem facing
the country, Ezekwesili, said: “Well, it has to
do with fiscal consolidation of the budget.
By fiscal consolidation, we mean taking
hard fiscal responsibility in our budget. The
entire budget has to be looked at, not just
the size alone but the quality and structure
of the budget.
“There is urgent need to reduce the portion
of the recurrent expenditure of the
government, it is really urgent for
government to do so because no economy
can develop its infrastructure with the kind
of budget we have. It does not create the
basis of economic growth. The bride of
economic growth is the investment in
infrastructure and human capital for an
overall economic growth.
The part of fiscal consolidation really must
be considered. The government must live
within its means and it should not crowd
out the private sector by borrowing from
the domestic market where resources are
available for the development of the real
sector that has potentials for employment.
Commenting on the banking sector reforms
which the agency said was one of the
reasons for the upgrade, she said, “these
are early days we have to focus on both
monetary and fiscal policies. The monetary
authority has to keep focus on improving
the performance of the banking sector. The
most important thing is to ensure that credit
is revitalized in the system to reactivate the
real sector, because that is where the job
creation has to come from.
Some of the measures that are being taken
are on course but the high cost of doing
business by the Small Medium Scale
Enterprises (SMEs) is not just from the
lending aspect but from other transaction
costs, such as transport, energy, etc. So by
the time you reduce all the transaction costs
then there will be a balance when you
consider the cost of borrowing.”
MONDAY, 31 OCTOBER 2011 00:00
LAPO to issue N4bn loan in Q12012
Lift Above Poverty Organisation (LAPO)
Microfinance bank limited has disclosed that
by March next year, it would disburse about
N4 billion to its customers.
The bank in September 2011 disbursed a
total of N3.2 billion. Godwin Ehigiamusoe,
managing director of the bank who
disclosed this in an interview with
BusinessDay also said by the end of October
this year, the bank would disburse about
N3.3 billion to low income people it is
serving.
He said there are lots of poverty alleviation
initiatives in the pipeline which the bank
wishes to implement in no distant time.
Ehigiamusoe who is an acknowledged
microfinance practitioner and founder of
LAPO has concluded plans to officially lunch
a book titled, “Issues in Microfinance:
Enhancing Financial Inclusion” in Lagos.
The book which contains 15 chapters would
be presented to the public on Thursday at
the Nigerian Institute of Management at 10
am.
The event will feature Hayford Alile …… as
the chairman of the occasion, Fola Adiola,
founder of …..as the presenter and Segun
Ogidan, microfinance consultant as the
reviewer.
In the book, Godwin provides an insight
into the essential elements of microfinance.
The book examines microfinance schemes
and initiatives in Nigeria, such as the
indigenous savings and credit group, non-
profit credit scheme, so-operative financing,
government and private sector
interventions. It also explores the key
provisions of microfinance policy and
regulatory framework.
He relied on his several years of
engagement in the sector to address central
operational issues such as product
development, risk and delinquency
management, client relationship and
performance indicators management.
The author was careful to address key
issues of interest to a range of stakeholders
in the sector. These issues include the
nature and emerging features identifiable
with microfinance practice across the world,
history of microfinance initiatives in Nigeria
and common operational issues.
TUESDAY, 01 NOVEMBER 2011 00:00 HOPE
MOSES-ASHIKE
Microfinance bank limited has disclosed that
by March next year, it would disburse about
N4 billion to its customers.
The bank in September 2011 disbursed a
total of N3.2 billion. Godwin Ehigiamusoe,
managing director of the bank who
disclosed this in an interview with
BusinessDay also said by the end of October
this year, the bank would disburse about
N3.3 billion to low income people it is
serving.
He said there are lots of poverty alleviation
initiatives in the pipeline which the bank
wishes to implement in no distant time.
Ehigiamusoe who is an acknowledged
microfinance practitioner and founder of
LAPO has concluded plans to officially lunch
a book titled, “Issues in Microfinance:
Enhancing Financial Inclusion” in Lagos.
The book which contains 15 chapters would
be presented to the public on Thursday at
the Nigerian Institute of Management at 10
am.
The event will feature Hayford Alile …… as
the chairman of the occasion, Fola Adiola,
founder of …..as the presenter and Segun
Ogidan, microfinance consultant as the
reviewer.
In the book, Godwin provides an insight
into the essential elements of microfinance.
The book examines microfinance schemes
and initiatives in Nigeria, such as the
indigenous savings and credit group, non-
profit credit scheme, so-operative financing,
government and private sector
interventions. It also explores the key
provisions of microfinance policy and
regulatory framework.
He relied on his several years of
engagement in the sector to address central
operational issues such as product
development, risk and delinquency
management, client relationship and
performance indicators management.
The author was careful to address key
issues of interest to a range of stakeholders
in the sector. These issues include the
nature and emerging features identifiable
with microfinance practice across the world,
history of microfinance initiatives in Nigeria
and common operational issues.
TUESDAY, 01 NOVEMBER 2011 00:00 HOPE
MOSES-ASHIKE
Senate summons, Okonjo-Iweala,Madueke, Sanusi, others
ABUJA— THE Senate has summoned the
Ministers of Finance and Petroleum, Dr.
Ngozi Okonjo-Iweala and Mrs. Diezani
Alison-Madueke respectively, to appear
before it and explain the alleged
overshooting of oil subsidy funds from
N240 billion appropriated in the 2011
budget by National Assembly to N1.5
trillion.
Governor of Central Bank, Mallam Lamido
Sanusi Lamido and the Comptroller
General of Nigerian Customs Service, NSC,
Alhaji Dikko Abdullahi were also
summoned by the Senate Joint
Committee probing the utilisation of
subsidy funds.
Chairman of the Joint Committee
comprised of Senate Committees on
Finance, Appropriation and Petroleum
Downstream, Senator Magnus Abe, who
briefed journalists in Abuja said the
government officials will appear on
Thursday to explain the alleged
mismanagement of the subsidy funds.
He said: “We will meet with the
government agencies involved in the oil
subsidy to get a clear brief from them as
to the origin, nature, history and
everything official about the operation
of the oil subsidy in this country.
“The invitation by the joint committee to
the government officials involved in the
management of the fuel subsidy scheme
states clearly that the committee has
resolved to request their reactions in a
written brief.
“We also said that the written brief
should explain the entire procedure for
administering the subsidy, sources of
the fund and why they have been
unprecedented rise in the quantum of
subsidy in the later part of this year
than we had at the beginning.
“Those invited include Minister of
Finance, Mrs Okonjo-Iweala; Minister of
Petroleum, Diezani Madueke, the GMD of
NNPC, Governor of Central Bank of
Nigeria, Executive Secretary of the
PPPRA, CG of Nigerian Custom Service,
the Managing Director of Nigerian Ports
Authority as well as Chief of Naval Staff.”
Abe assured that the probe would be
transparent and open for all Nigerians to
make their contributions, adding that it
was not a witch-hunting exercise
targeted at an institution or an
individual.
He said: “The meeting with these heads
of institutions and government agencies
would be opened to Nigerians. We
would meet them in an open fora and
whatever they have to say to us, people
would be privileged to hear whatever
they say.
“We want to assure Nigerians that this
process will be open, transparent and
whatever is the collective wisdom of the
members of committee, at the end of the
exercise, would be made available to the
Senate for them to take a decision and
also for Nigerians to see what we have
done.”
Ministers of Finance and Petroleum, Dr.
Ngozi Okonjo-Iweala and Mrs. Diezani
Alison-Madueke respectively, to appear
before it and explain the alleged
overshooting of oil subsidy funds from
N240 billion appropriated in the 2011
budget by National Assembly to N1.5
trillion.
Governor of Central Bank, Mallam Lamido
Sanusi Lamido and the Comptroller
General of Nigerian Customs Service, NSC,
Alhaji Dikko Abdullahi were also
summoned by the Senate Joint
Committee probing the utilisation of
subsidy funds.
Chairman of the Joint Committee
comprised of Senate Committees on
Finance, Appropriation and Petroleum
Downstream, Senator Magnus Abe, who
briefed journalists in Abuja said the
government officials will appear on
Thursday to explain the alleged
mismanagement of the subsidy funds.
He said: “We will meet with the
government agencies involved in the oil
subsidy to get a clear brief from them as
to the origin, nature, history and
everything official about the operation
of the oil subsidy in this country.
“The invitation by the joint committee to
the government officials involved in the
management of the fuel subsidy scheme
states clearly that the committee has
resolved to request their reactions in a
written brief.
“We also said that the written brief
should explain the entire procedure for
administering the subsidy, sources of
the fund and why they have been
unprecedented rise in the quantum of
subsidy in the later part of this year
than we had at the beginning.
“Those invited include Minister of
Finance, Mrs Okonjo-Iweala; Minister of
Petroleum, Diezani Madueke, the GMD of
NNPC, Governor of Central Bank of
Nigeria, Executive Secretary of the
PPPRA, CG of Nigerian Custom Service,
the Managing Director of Nigerian Ports
Authority as well as Chief of Naval Staff.”
Abe assured that the probe would be
transparent and open for all Nigerians to
make their contributions, adding that it
was not a witch-hunting exercise
targeted at an institution or an
individual.
He said: “The meeting with these heads
of institutions and government agencies
would be opened to Nigerians. We
would meet them in an open fora and
whatever they have to say to us, people
would be privileged to hear whatever
they say.
“We want to assure Nigerians that this
process will be open, transparent and
whatever is the collective wisdom of the
members of committee, at the end of the
exercise, would be made available to the
Senate for them to take a decision and
also for Nigerians to see what we have
done.”
Analysts differ over marketoutlook as buy opportunitiesexist in most stocks
Amid intensified regulatory efforts to
restore investor confidence at the stock
market, as investor apathy continues to mar
equities’ performance, stock market
analysts vary in their views over the
direction of equities trading this week at
the Nigerian Stock Exchange (NSE).
At the nation’s bourse, companies earnings
and investors optimism continue to move in
different directions. Companies increased
revenues with sustainable strategic options
have not impacted positively on share price
performance. This development continues
to trigger questions at various quarters,
even as most analysts believe that there is
little justification for a fall in market cap or
anemic performance of share prices as
indicated in the All Share Index.
While some analysts say the market outlook
remains bearish, with a ray respite likely
from attractive third-quarter (Q3) earnings
release by blue-chip companies, some
others appear bullish, saying that
impressive Q3 results posted by quoted
companies may sustain investors’ optimism
and further boost market activities.
This varied views come amid the optimism
that buy opportunities still exist in most
stocks with strong fundamentals.
According to Cowry Asset Management
analysts, as interest rates mount up to the
20 percent mark on the back of recent hike
in the monetary policy rate (MPR) by 275
basis points, coupled with the lingering
investors apathy, “the Nigerian equities
market remains disadvantaged as investors
switch to higher yield instruments.
“This week, we expect to see more bearish
siege on the back of likely increases in
money market rates, providing a more
attractive alternative.” In line with most
analysts’ prediction, the equities market was
upbeat last week, having witnessed bargain
hunting activities amid a number of
positive company releases. As a result,
trading at the NSE has closed on a positive
note after about two weeks of bearish
mood.
The NSE All-Share Index appreciated by
387.62 points or 1.9 percent to close at
20,257.47 points, while the market
capitalisation of the 188 First -Tier equities
increased to N6.412 trillion. The NSE-30
Index appreciated by 19.69 points or 2.2
percent to close at 900.36.
All four sectorial indices appreciated a
reversal of the preceding week when all the
indices depreciated. The NSE Food/Beverage
Index appreciated by 0.88 points or 0.1
percent to close at 632.65. The NSE Banking
Index appreciated by 6.87 points or 2.5
percent to close at 287.92. The NSE
Insurance Index appreciated by 5.69 points
or 3.9 percent to close at 149.57. The NSE
Oil/Gas Index appreciated by 10.94 points
or 4.6 percent to close at 245.47.
Stock market report last week showed that
a turnover of 1.4 billion shares worth N9.9
billion in 16,934 deals was recorded in
contrast to 1.3 billion shares valued at
N11.48 billion, exchanged the preceding
week in 18,940 deals. Sterling Capital
analysts said this week they expect
increased liquidity to moderate short-term
interest rates in view of the anticipated
release of Statutory Allocations for the
month of September by the Federal
Government.
“This would most likely impact positively on
the stock market, while the impressive Q3
earnings should continue to give impetus to
investors to take position in view of current
low prices of stocks. Buy opportunities
continued to exist in stocks with good
fundamentals for long term,” they added in
their recent market outlook.
Analysts at Access Bank said the fact that
companies, especially banks exceeding their
profit expectations during the quarter, gave
support to equities last week.
They said: “Stocks also became the primary
beneficiary of the uncertainty in the bond
market. This was due to the significant dip
in bond prices after the Monetary Policy
Committee (MPC) decision to increase MPR to
12 percent from 9.25 percent. The bond
market is in a post-MPC price discovery
phase and trading has been muted in recent
days.
“We are dialling back our outlook, stated last
week, for the market (stock market) from
‘possible sustained decline’ to ‘temporary
rebound in buying momentum.’ Our view is
premised on the impressive Q3 results
posted by quoted companies. We believe
these numbers may sustain investors’
optimism and further boost market
activities.”
restore investor confidence at the stock
market, as investor apathy continues to mar
equities’ performance, stock market
analysts vary in their views over the
direction of equities trading this week at
the Nigerian Stock Exchange (NSE).
At the nation’s bourse, companies earnings
and investors optimism continue to move in
different directions. Companies increased
revenues with sustainable strategic options
have not impacted positively on share price
performance. This development continues
to trigger questions at various quarters,
even as most analysts believe that there is
little justification for a fall in market cap or
anemic performance of share prices as
indicated in the All Share Index.
While some analysts say the market outlook
remains bearish, with a ray respite likely
from attractive third-quarter (Q3) earnings
release by blue-chip companies, some
others appear bullish, saying that
impressive Q3 results posted by quoted
companies may sustain investors’ optimism
and further boost market activities.
This varied views come amid the optimism
that buy opportunities still exist in most
stocks with strong fundamentals.
According to Cowry Asset Management
analysts, as interest rates mount up to the
20 percent mark on the back of recent hike
in the monetary policy rate (MPR) by 275
basis points, coupled with the lingering
investors apathy, “the Nigerian equities
market remains disadvantaged as investors
switch to higher yield instruments.
“This week, we expect to see more bearish
siege on the back of likely increases in
money market rates, providing a more
attractive alternative.” In line with most
analysts’ prediction, the equities market was
upbeat last week, having witnessed bargain
hunting activities amid a number of
positive company releases. As a result,
trading at the NSE has closed on a positive
note after about two weeks of bearish
mood.
The NSE All-Share Index appreciated by
387.62 points or 1.9 percent to close at
20,257.47 points, while the market
capitalisation of the 188 First -Tier equities
increased to N6.412 trillion. The NSE-30
Index appreciated by 19.69 points or 2.2
percent to close at 900.36.
All four sectorial indices appreciated a
reversal of the preceding week when all the
indices depreciated. The NSE Food/Beverage
Index appreciated by 0.88 points or 0.1
percent to close at 632.65. The NSE Banking
Index appreciated by 6.87 points or 2.5
percent to close at 287.92. The NSE
Insurance Index appreciated by 5.69 points
or 3.9 percent to close at 149.57. The NSE
Oil/Gas Index appreciated by 10.94 points
or 4.6 percent to close at 245.47.
Stock market report last week showed that
a turnover of 1.4 billion shares worth N9.9
billion in 16,934 deals was recorded in
contrast to 1.3 billion shares valued at
N11.48 billion, exchanged the preceding
week in 18,940 deals. Sterling Capital
analysts said this week they expect
increased liquidity to moderate short-term
interest rates in view of the anticipated
release of Statutory Allocations for the
month of September by the Federal
Government.
“This would most likely impact positively on
the stock market, while the impressive Q3
earnings should continue to give impetus to
investors to take position in view of current
low prices of stocks. Buy opportunities
continued to exist in stocks with good
fundamentals for long term,” they added in
their recent market outlook.
Analysts at Access Bank said the fact that
companies, especially banks exceeding their
profit expectations during the quarter, gave
support to equities last week.
They said: “Stocks also became the primary
beneficiary of the uncertainty in the bond
market. This was due to the significant dip
in bond prices after the Monetary Policy
Committee (MPC) decision to increase MPR to
12 percent from 9.25 percent. The bond
market is in a post-MPC price discovery
phase and trading has been muted in recent
days.
“We are dialling back our outlook, stated last
week, for the market (stock market) from
‘possible sustained decline’ to ‘temporary
rebound in buying momentum.’ Our view is
premised on the impressive Q3 results
posted by quoted companies. We believe
these numbers may sustain investors’
optimism and further boost market
activities.”
Labour crisis: Threat to shut downEnugu laughable- Govt
ENUGU—Enugu State Government,
Monday, dismissed as laughable and
mischievous, claims by the coalition of
human rights and pro-democracy
groups in the South-East zone that it was
behind the current travails of Comrade
Osmond Ugwu who was remanded in
prison custody by the state Magistrates
Court last week for attempted murder.
The government also dismissed as
uninformed and ill-thought, the threat
reportedly made by the group to “make
Enugu State ungovernable” if Ugwu was
not released from prison custody within
one week.
A release signed by Chukwudi Achife,
Chief Press Secretary to Governor
Sullivan Chime, said the tone of the
claims and threats made by the group as
published in a national daily, confirmed
its suspicions that the labour issues in
the state were being sponsored and
orchestrated by some disgruntled
elements trying to create a false
impression of crisis in Enugu State.
He said even the most uninformed
person would know that a criminal trial
was a matter totally within the domain
of the judiciary and that an order to
remand or release an accused person in
or from prison custody could only be
made by a court of competent
jurisdiction.
The human rights and pro-democracy
groups, including Save Nigeria Group
and Lawyers of Conscience, had on
Saturday given the state government a
week ultimatum to release the
incarcerated labour activists, Comrade
Osmond Ugwu and Raphael Elobuike, or
the state would be shut down by the
group and organized labour.
Coordinator of the group, Mr. Benedict
Ezeagu, at a press briefing in Enugu said:
“While the legal process is going on, we
have decided to give the Enugu State
Government one week ultimatum to
release Comrade Osmond Ugwu and
Raphael Elobuike unconditionally.”
Monday, dismissed as laughable and
mischievous, claims by the coalition of
human rights and pro-democracy
groups in the South-East zone that it was
behind the current travails of Comrade
Osmond Ugwu who was remanded in
prison custody by the state Magistrates
Court last week for attempted murder.
The government also dismissed as
uninformed and ill-thought, the threat
reportedly made by the group to “make
Enugu State ungovernable” if Ugwu was
not released from prison custody within
one week.
A release signed by Chukwudi Achife,
Chief Press Secretary to Governor
Sullivan Chime, said the tone of the
claims and threats made by the group as
published in a national daily, confirmed
its suspicions that the labour issues in
the state were being sponsored and
orchestrated by some disgruntled
elements trying to create a false
impression of crisis in Enugu State.
He said even the most uninformed
person would know that a criminal trial
was a matter totally within the domain
of the judiciary and that an order to
remand or release an accused person in
or from prison custody could only be
made by a court of competent
jurisdiction.
The human rights and pro-democracy
groups, including Save Nigeria Group
and Lawyers of Conscience, had on
Saturday given the state government a
week ultimatum to release the
incarcerated labour activists, Comrade
Osmond Ugwu and Raphael Elobuike, or
the state would be shut down by the
group and organized labour.
Coordinator of the group, Mr. Benedict
Ezeagu, at a press briefing in Enugu said:
“While the legal process is going on, we
have decided to give the Enugu State
Government one week ultimatum to
release Comrade Osmond Ugwu and
Raphael Elobuike unconditionally.”
LP’s appeal: Tinubu knows fate today
LAGOS—Senator Oluremi Tinubu of
Action Congress of Nigeria, ACN, will
today know her fate in the appeal by
Labour Party, LP, and its candidate, Mr.
Oladapo Durosinmi-Etti, against the
judgment of the election Tribunal, Lagos,
which upheld her declaration by
Independent National Electoral
Commission, INEC, as winner of the April
9 Lagos Central senatorial election.
The Appeal Court, had last, fixed today
for judgment, after listening to
submissions by appellants and the
respondents.
LP and Durosinmi-Etti, seeking the
nullification of Mrs. Remi Tinubu’s
election to the Senate, are sking the
Court of Appeal to order a fresh election.
According to LP and Durosinmi-Etti, Mrs.
Tinubu’s victory at election should to be
upturned on the grounds of non-
appearance of their party logo on the
ballot papers used for the election.
Counsel to Labour Party, Chief
Chukwuma Ekomaru, SAN, at the hearing
of the appeal, told the court that his
client’s petition was dismissed solely
because his pre-hearing notice was
issued through a letter to the Tribunal’s
Secretary, and argued that the pre-
hearing notice need not come in the
form of a motion.
Ekomaru argued that such dismissal
contravened recent decisions of the
Court of Appeal, citing the case of Aliyu
Ibrahim Gebi v Alhaji Garba Dahiru and
others, where recently (August 22,
2011) an Appeal Court decisions in Jos,
admitted that the issuance of pre-
hearing notice could be done by either a
letter, by motion on notice or a motion
ex-parte.
Senator Tinubu’s counsel, Prof. Yemi
Osinbajo, SAN, in his submission
countered appellant counsel’s position
on the pre-hearing notice with the
Sokoto Appeal Court, which held that
pre-hearing notice should be by a
motion to the tribunal and not through a
letter.
He urged the court to dismiss the appeal,
saying “there is no relief before the
court seeking nullification of the
election.”
Action Congress of Nigeria, ACN, will
today know her fate in the appeal by
Labour Party, LP, and its candidate, Mr.
Oladapo Durosinmi-Etti, against the
judgment of the election Tribunal, Lagos,
which upheld her declaration by
Independent National Electoral
Commission, INEC, as winner of the April
9 Lagos Central senatorial election.
The Appeal Court, had last, fixed today
for judgment, after listening to
submissions by appellants and the
respondents.
LP and Durosinmi-Etti, seeking the
nullification of Mrs. Remi Tinubu’s
election to the Senate, are sking the
Court of Appeal to order a fresh election.
According to LP and Durosinmi-Etti, Mrs.
Tinubu’s victory at election should to be
upturned on the grounds of non-
appearance of their party logo on the
ballot papers used for the election.
Counsel to Labour Party, Chief
Chukwuma Ekomaru, SAN, at the hearing
of the appeal, told the court that his
client’s petition was dismissed solely
because his pre-hearing notice was
issued through a letter to the Tribunal’s
Secretary, and argued that the pre-
hearing notice need not come in the
form of a motion.
Ekomaru argued that such dismissal
contravened recent decisions of the
Court of Appeal, citing the case of Aliyu
Ibrahim Gebi v Alhaji Garba Dahiru and
others, where recently (August 22,
2011) an Appeal Court decisions in Jos,
admitted that the issuance of pre-
hearing notice could be done by either a
letter, by motion on notice or a motion
ex-parte.
Senator Tinubu’s counsel, Prof. Yemi
Osinbajo, SAN, in his submission
countered appellant counsel’s position
on the pre-hearing notice with the
Sokoto Appeal Court, which held that
pre-hearing notice should be by a
motion to the tribunal and not through a
letter.
He urged the court to dismiss the appeal,
saying “there is no relief before the
court seeking nullification of the
election.”
President, Buhari know fatetoday
The Presidential Election
Petition Tribunal chaired
by Justice Kummai
Bayang Akaahs will
today deliver judgment in the petition
filed by the Congress for Progressive
Change (CPC) against President Goodluck
Jonathan’s victory in the April 16
election.
Notice of judgment was served
yesterday on counsel after the Supreme
Court struck out the appeal filed by the
Peoples Democratic Party (PDP) against
the petition.
The apex court held that the 60 days
allowed for hearing and determination
of an interlocutory appeal had elapsed.
The appeal arose from the July 14 ruling
of the Presidential Election Petitions
Tribunal, then chaired by the suspended
Appeal Court President, Justice Isa Ayo
Salami, that held that the CPC’s petition,
which was filed on a Sunday, is
competent and proper in law.
Jonathan contested on the platform of
the PDP. Gen. Muhammadu Buhari was
the CPC’s candidate.
Jonathan and PDP had urged the
Tribunal to dismiss the petition for being
filed on Sunday, a public holiday.
But the Tribunal said that the petition
was filed on a Sunday conferred no
advantage on the petitioner, adding that
it will be determined on merit and not
‘technicality’.
Dissatisfied, the PDP approached the
apex court. But the interlocutory appeal
could not be heard within the 60 days
allowed.
The apex court directed all parties to go
back to the Tribunal, which will deliver
judgment in the substantive matter
today.
At the last sitting, Jonathan and the
ruling PDP disagreed openly on the
status of the appeal.
The Justice Kummai Bayang Akaahs-led
five-man panel will today deliver
judgment in the substantive suit.
Petition Tribunal chaired
by Justice Kummai
Bayang Akaahs will
today deliver judgment in the petition
filed by the Congress for Progressive
Change (CPC) against President Goodluck
Jonathan’s victory in the April 16
election.
Notice of judgment was served
yesterday on counsel after the Supreme
Court struck out the appeal filed by the
Peoples Democratic Party (PDP) against
the petition.
The apex court held that the 60 days
allowed for hearing and determination
of an interlocutory appeal had elapsed.
The appeal arose from the July 14 ruling
of the Presidential Election Petitions
Tribunal, then chaired by the suspended
Appeal Court President, Justice Isa Ayo
Salami, that held that the CPC’s petition,
which was filed on a Sunday, is
competent and proper in law.
Jonathan contested on the platform of
the PDP. Gen. Muhammadu Buhari was
the CPC’s candidate.
Jonathan and PDP had urged the
Tribunal to dismiss the petition for being
filed on Sunday, a public holiday.
But the Tribunal said that the petition
was filed on a Sunday conferred no
advantage on the petitioner, adding that
it will be determined on merit and not
‘technicality’.
Dissatisfied, the PDP approached the
apex court. But the interlocutory appeal
could not be heard within the 60 days
allowed.
The apex court directed all parties to go
back to the Tribunal, which will deliver
judgment in the substantive matter
today.
At the last sitting, Jonathan and the
ruling PDP disagreed openly on the
status of the appeal.
The Justice Kummai Bayang Akaahs-led
five-man panel will today deliver
judgment in the substantive suit.
States shun Abuja cash sharing meeting, Abuja ...Jonathan to meet governors today
Another attempt by the
Federal Government to persuade the states
to allow the sharing of the Federation
Accounts cash for September failed
yesterday.
States insist that they will accept their
September allocation only when the N250
billion deducted by Federal Government
agencies to fund “oil subsidy” is returned to
the accounts.
A meeting of the Federation Accounts
Allocation Committee (FAAC) – the body that
statutorily outlines the sharing formula of
the cash in the Federation Account among
the tiers of government every month –
slated for Abuja was yesterday shunned by
Finance commissioners.
This is the second time in two weeks that
they have boycotted the meeting.
On October 18, the commissioners staged a
walkout over the N250 billion deducted by
the Nigeria National Petroleum Corporation
(NNPC) and the Petroleum Products Pricing
and Regulatory Agency (PPPRA).
The action stalled the sharing of the
September allocation, which is estimated at
N1 trillion before the deductions. Anambra
State Finance Commissioner Mr. Eze Echesi,
who is the co-ordinator of Finance
Commissioners, described the deduction as
“illegal withdrawal”.
At the Sheraton Hotel venue yesterday,
some officials of the Federal Ministry of
Finance were waiting for the
commissioners, to no avail.
But it was not clear whether FAAC chair said
Minister of State for Finance Alhaji Lawal
Yerima Ngama was at the venue.
It was gathered that some of the
Commissioners met with Ngama, but
declined to show up for the FAAC meeting.
“The refusal of the commissioners to attend
the meeting is not unconnected with the
scheduled meeting between President
Goodluck Jonathan and governors,” a
source said.
The meeting between the President and
Governors will now hold today at the
Presidential Villa, it was gathered.
The President is believed to have, while in
Australia, called for the meeting to break the
ice in the frosty relationship between the
Federal Government and the states.
“We operate under the instruction of our
governors. If our governors ask us to
attend the FAAC meeting, we will do so. But
for now, we do not have such instruction,”
a Commissioner said.
A meeting of the Nigerian Governors Forum
(NGF) will precede today’s meeting with the
President.
The governors are also battling the Federal
Government over the Sovereign Wealth
Fund (SWF) and the review of the revenue
allocation formula.
They are at the Supreme Court seeking the
declaration of the SWF as illegal
Federal Government to persuade the states
to allow the sharing of the Federation
Accounts cash for September failed
yesterday.
States insist that they will accept their
September allocation only when the N250
billion deducted by Federal Government
agencies to fund “oil subsidy” is returned to
the accounts.
A meeting of the Federation Accounts
Allocation Committee (FAAC) – the body that
statutorily outlines the sharing formula of
the cash in the Federation Account among
the tiers of government every month –
slated for Abuja was yesterday shunned by
Finance commissioners.
This is the second time in two weeks that
they have boycotted the meeting.
On October 18, the commissioners staged a
walkout over the N250 billion deducted by
the Nigeria National Petroleum Corporation
(NNPC) and the Petroleum Products Pricing
and Regulatory Agency (PPPRA).
The action stalled the sharing of the
September allocation, which is estimated at
N1 trillion before the deductions. Anambra
State Finance Commissioner Mr. Eze Echesi,
who is the co-ordinator of Finance
Commissioners, described the deduction as
“illegal withdrawal”.
At the Sheraton Hotel venue yesterday,
some officials of the Federal Ministry of
Finance were waiting for the
commissioners, to no avail.
But it was not clear whether FAAC chair said
Minister of State for Finance Alhaji Lawal
Yerima Ngama was at the venue.
It was gathered that some of the
Commissioners met with Ngama, but
declined to show up for the FAAC meeting.
“The refusal of the commissioners to attend
the meeting is not unconnected with the
scheduled meeting between President
Goodluck Jonathan and governors,” a
source said.
The meeting between the President and
Governors will now hold today at the
Presidential Villa, it was gathered.
The President is believed to have, while in
Australia, called for the meeting to break the
ice in the frosty relationship between the
Federal Government and the states.
“We operate under the instruction of our
governors. If our governors ask us to
attend the FAAC meeting, we will do so. But
for now, we do not have such instruction,”
a Commissioner said.
A meeting of the Nigerian Governors Forum
(NGF) will precede today’s meeting with the
President.
The governors are also battling the Federal
Government over the Sovereign Wealth
Fund (SWF) and the review of the revenue
allocation formula.
They are at the Supreme Court seeking the
declaration of the SWF as illegal
Nigeria: Another explosion hitsMaiduguri
A loud explosion rocked the troubled North
Eastern Nigerian city of Maiduguri on
Sunday. Residents of the area in which it
occurred, Bulabulin Ngarnam, say it was an
attack on a military patrol vehicle.
It has not been ascertained if there were
deaths or injuries linked to the explosion
which some residents described as "the
loudest heard so far in the city".
"Nobody knows the extent of the damage
because the area has been cordoned off by
soldiers," said Hammadi Yakubu, a resident.
Another resident, Bunu Zarabe, said he saw
an ambulance speeding out of the area with
a military van behind it.
Residents in the neighbourhood have
begun fleeing the area, out of fears of a
military raid in response to the blasts.
Soldiers have, in the past, been accused of
rampaging though neighbourhoods after
such explosions, killing residents, burning
homes and claiming locals cooperated with
the Boko Haram sect.
Maiduguri, the Borno State capital, has been
hit by series of attacks blamed on Boko
Haram, an Islamist sect which claimed
responsibility for the bombing of the United
Nations headquarters in Abuja that killed at
least 24 people.
Earlier this month, the military in Borno
State said criminals were hiding "under the
pretence of Boko Haram to commit crimes"
in the state, and set a deadline of October
31 for residents to turn in all illegal
weapons and explosives in their
possession.
"Those who refuse to surrender their arms
would face consequences after the
expiration of the deadline," the Military's
statement read.
Police and Military officials could not be
reached for comments on the new
explosion.
Eastern Nigerian city of Maiduguri on
Sunday. Residents of the area in which it
occurred, Bulabulin Ngarnam, say it was an
attack on a military patrol vehicle.
It has not been ascertained if there were
deaths or injuries linked to the explosion
which some residents described as "the
loudest heard so far in the city".
"Nobody knows the extent of the damage
because the area has been cordoned off by
soldiers," said Hammadi Yakubu, a resident.
Another resident, Bunu Zarabe, said he saw
an ambulance speeding out of the area with
a military van behind it.
Residents in the neighbourhood have
begun fleeing the area, out of fears of a
military raid in response to the blasts.
Soldiers have, in the past, been accused of
rampaging though neighbourhoods after
such explosions, killing residents, burning
homes and claiming locals cooperated with
the Boko Haram sect.
Maiduguri, the Borno State capital, has been
hit by series of attacks blamed on Boko
Haram, an Islamist sect which claimed
responsibility for the bombing of the United
Nations headquarters in Abuja that killed at
least 24 people.
Earlier this month, the military in Borno
State said criminals were hiding "under the
pretence of Boko Haram to commit crimes"
in the state, and set a deadline of October
31 for residents to turn in all illegal
weapons and explosives in their
possession.
"Those who refuse to surrender their arms
would face consequences after the
expiration of the deadline," the Military's
statement read.
Police and Military officials could not be
reached for comments on the new
explosion.
Keshi cold to interim coach offer
The Technical Committee of the Nigeria
Football Federation may,. today,
announce Stephen Keshi as Samson
Siasia’s successor.
This is coming after officials of the
federation held discussions with Keshi.
But there are issues that they may
resolve before he would accept the job
wholeheartedly.
The federation plans to appoint him as a
caretaker coach. The appointment
would, therefore, be on interim basis.
Keshi, we gathered, is cold to the offer
although he has, in principle, accepted to
train the Eagles.
However, the offer coming at a time
Togo and Rwanda were also after him,
Keshi is said not to be comfortable with
an interim job.
“It will not make for his absolute
concentration on his job,” his agent said,
adding “it is not about Keshi as a person,
it is about the job.
He needs to settle down immediately to
map out a four year programme or
thereabout and plan how to implement
them in stages. Appointing him interim
coach will not be good for him and will
also not be good for Nigeria. He needs
confidence to build a strong team.”
But a member of the Technical
Committee and one other Executive
Committee member all explained that the
interim appointment had to be made to
avoid the bureaucratic way of
appointing coaches. They assured that
on acceptance of the job, Keshi would
not stay long before he will be
confirmed the substantive coach.
Football Federation may,. today,
announce Stephen Keshi as Samson
Siasia’s successor.
This is coming after officials of the
federation held discussions with Keshi.
But there are issues that they may
resolve before he would accept the job
wholeheartedly.
The federation plans to appoint him as a
caretaker coach. The appointment
would, therefore, be on interim basis.
Keshi, we gathered, is cold to the offer
although he has, in principle, accepted to
train the Eagles.
However, the offer coming at a time
Togo and Rwanda were also after him,
Keshi is said not to be comfortable with
an interim job.
“It will not make for his absolute
concentration on his job,” his agent said,
adding “it is not about Keshi as a person,
it is about the job.
He needs to settle down immediately to
map out a four year programme or
thereabout and plan how to implement
them in stages. Appointing him interim
coach will not be good for him and will
also not be good for Nigeria. He needs
confidence to build a strong team.”
But a member of the Technical
Committee and one other Executive
Committee member all explained that the
interim appointment had to be made to
avoid the bureaucratic way of
appointing coaches. They assured that
on acceptance of the job, Keshi would
not stay long before he will be
confirmed the substantive coach.
Bayelsa: PDP NWC decides Sylva’s fate this week ...As Appeal panel submits report to PDP leadership
ABUJA – THE national leadership of the
Peoples Democratic Party, PDP yesterday
received the report of the Appeal
Screening Committee which arbitrated
alleged petitions raised against the
embattled Governor of Bayelsa State, Mr.
Timipire Sylva.
Following the receipt of the panel report,
members of the National Working
Committee, NWC went into a marathon
meeting where the report was
reportedly compared with that earlier
submitted by the Screening Committee. A
definitive statement on the fate of the
Governor and his leading challenger, Mr.
Timi Alaibe, the erstwhile Managing
Director of the Niger Delta Development
Commission, NDDC is coming out this
week Nigeria Naira News learnt.
At the NWC meeting presided over by
the Acting National Chairman of the PDP,
Alhaji Abubakar Kawu Baraje at the
party’s campaign office, Legacy house,
Abuja the party officials were said to
have deliberated on the Appeal Panel
report that reportedly raised issues with
the appropriateness of Governor Sylva
representing the party in the
forthcoming polls.
Nigeria Naira News gathered yesterday that the
Appeal panel questioned the manner the
screening committee overlooked certain
issues that were raised against
Governor Sylva bothering on security,
financial impropriety, among others.
According to a source present at the
meeting, the NWC is now faced with the
challenge of either ratifying or rejecting
the report of the Appeal panel led by
Mrs. Abiodun Olujimi, the former
Governor of Ekiti State.
It will be recalled that the screening
panel had in Port Harcourt screened
Governor Sylva, Alaibe, Ex-Director-
General, Nigeria Television Authority,
NTA, Mr. Ben Murray-Bruce, Henry
Dickson, Boloubo Orufa and Francis
Doukpola.
At the end of the exercise, Governor
Sylva, Ben Murray-Bruce, Dickson,
Boloubo Orufa were cleared; while
Alaibe and the Permanent Secretary,
Ministry of Water Resouces, Ambassador
Godknows Igali failed to scale the
screening.
Following the clearance, Governor Sylva,
Alaibe, Bruce were, however, summoned
to face the Appeal Panel following issues
that were raised before the panel that
were reportedly overlooked by the
Brigadier-General Idi Adamu led
screening panel.
Efforts made to get the PDP National
Publicity Secretary, Professor Rufai
Ahmed Alkali to comment on the
outcome of the meeting proved
abortive as his phone was put off.
Governor Sylva yesterday, nevertheless
debunked reports that he has been
screened out of the Bayelsa PDP
governorship primaries by the Olujimi
committee.
In a statement made available to
journalists yesterday by his Chief Press
Secretary, Doife Ola, Sylva who noted
that his camp read with horror a report
that he has been screened out by PDP
for the 2012 Bayelsa State gubernatorial
election, said, “the report claims the
Gubernatorial Screening Appeal
Committee of the PDP headed by former
Ekiti State Deputy Governor, Mrs.
Abiodun Olujimi, considered Sylva
ineligible to fly the party’s flag “for
operating foreign accounts.
“Whatever the quality of the sources,
this report is completely false. It is low
quality fiction. It is a cheap lie sponsored
by those who are afraid to meet
Governor Sylva in the political field of
contest, and their paid and unpaid
agents, working collectively or severally.
“But then, we are not surprised as it
follows a familiar pattern of a structured
campaign of serial untruths about
Governor Sylva, a fact we alerted the
world about last weekend.
“For the avoidance of doubt, there is no
basis whatsoever for the PDP to exclude
Governor Sylva from the 2012 Bayelsa
governorship race. He is the man to
beat. Ownership and operation of a
foreign account by a serving public
officer is a criminal offence. No
competent court of law has indicted
Governor Sylva for operating a foreign
account. He has no such charge pending
anywhere in the world. God forbid!
“The PDP Gubernatorial Screening
Committee for Bayelsa last Friday issued
Governor Sylva a clearance certificate to
participate in the party primaries slated
for 19 November. That clearance
certificate remains valid.
“It is true that the governor was at the
national headquarters of the PDP Sunday
afternoon at the instance of the
Gubernatorial Screening Appeal
Committee. But as Sylva himself
confidently told reporters after meeting
with the committee, ‘the deliberations
were fruitful”.
The governor however appealed to his
supporters to continue to remain calm,
peaceful and law-abiding, just as he
expressed optimism that in the
prevailing circumstance the will of the
Bayelsa people shall ultimately prevail.
Peoples Democratic Party, PDP yesterday
received the report of the Appeal
Screening Committee which arbitrated
alleged petitions raised against the
embattled Governor of Bayelsa State, Mr.
Timipire Sylva.
Following the receipt of the panel report,
members of the National Working
Committee, NWC went into a marathon
meeting where the report was
reportedly compared with that earlier
submitted by the Screening Committee. A
definitive statement on the fate of the
Governor and his leading challenger, Mr.
Timi Alaibe, the erstwhile Managing
Director of the Niger Delta Development
Commission, NDDC is coming out this
week Nigeria Naira News learnt.
At the NWC meeting presided over by
the Acting National Chairman of the PDP,
Alhaji Abubakar Kawu Baraje at the
party’s campaign office, Legacy house,
Abuja the party officials were said to
have deliberated on the Appeal Panel
report that reportedly raised issues with
the appropriateness of Governor Sylva
representing the party in the
forthcoming polls.
Nigeria Naira News gathered yesterday that the
Appeal panel questioned the manner the
screening committee overlooked certain
issues that were raised against
Governor Sylva bothering on security,
financial impropriety, among others.
According to a source present at the
meeting, the NWC is now faced with the
challenge of either ratifying or rejecting
the report of the Appeal panel led by
Mrs. Abiodun Olujimi, the former
Governor of Ekiti State.
It will be recalled that the screening
panel had in Port Harcourt screened
Governor Sylva, Alaibe, Ex-Director-
General, Nigeria Television Authority,
NTA, Mr. Ben Murray-Bruce, Henry
Dickson, Boloubo Orufa and Francis
Doukpola.
At the end of the exercise, Governor
Sylva, Ben Murray-Bruce, Dickson,
Boloubo Orufa were cleared; while
Alaibe and the Permanent Secretary,
Ministry of Water Resouces, Ambassador
Godknows Igali failed to scale the
screening.
Following the clearance, Governor Sylva,
Alaibe, Bruce were, however, summoned
to face the Appeal Panel following issues
that were raised before the panel that
were reportedly overlooked by the
Brigadier-General Idi Adamu led
screening panel.
Efforts made to get the PDP National
Publicity Secretary, Professor Rufai
Ahmed Alkali to comment on the
outcome of the meeting proved
abortive as his phone was put off.
Governor Sylva yesterday, nevertheless
debunked reports that he has been
screened out of the Bayelsa PDP
governorship primaries by the Olujimi
committee.
In a statement made available to
journalists yesterday by his Chief Press
Secretary, Doife Ola, Sylva who noted
that his camp read with horror a report
that he has been screened out by PDP
for the 2012 Bayelsa State gubernatorial
election, said, “the report claims the
Gubernatorial Screening Appeal
Committee of the PDP headed by former
Ekiti State Deputy Governor, Mrs.
Abiodun Olujimi, considered Sylva
ineligible to fly the party’s flag “for
operating foreign accounts.
“Whatever the quality of the sources,
this report is completely false. It is low
quality fiction. It is a cheap lie sponsored
by those who are afraid to meet
Governor Sylva in the political field of
contest, and their paid and unpaid
agents, working collectively or severally.
“But then, we are not surprised as it
follows a familiar pattern of a structured
campaign of serial untruths about
Governor Sylva, a fact we alerted the
world about last weekend.
“For the avoidance of doubt, there is no
basis whatsoever for the PDP to exclude
Governor Sylva from the 2012 Bayelsa
governorship race. He is the man to
beat. Ownership and operation of a
foreign account by a serving public
officer is a criminal offence. No
competent court of law has indicted
Governor Sylva for operating a foreign
account. He has no such charge pending
anywhere in the world. God forbid!
“The PDP Gubernatorial Screening
Committee for Bayelsa last Friday issued
Governor Sylva a clearance certificate to
participate in the party primaries slated
for 19 November. That clearance
certificate remains valid.
“It is true that the governor was at the
national headquarters of the PDP Sunday
afternoon at the instance of the
Gubernatorial Screening Appeal
Committee. But as Sylva himself
confidently told reporters after meeting
with the committee, ‘the deliberations
were fruitful”.
The governor however appealed to his
supporters to continue to remain calm,
peaceful and law-abiding, just as he
expressed optimism that in the
prevailing circumstance the will of the
Bayelsa people shall ultimately prevail.
Realities facing headlong deregulation
It is no longer news that the Federal
Government has developed cold feet
over going ahead with the planned
removal of petroleum subsidy, which
will herald the full commencement of
deregulation of the downstream
petroleum sector.
Government’s indecision follows
mounting criticisms against the plan,
which many believe would increase the
hardship of the common man. This is
because if allowed to run, the price of
petrol would be as high as N140/ per
litre, while kerosene, the fuel for the
common man will be as high as N155/L,
according to the latest market data on
the Petroleum Products Pricing
Regulatory Agency, PPPRA’s website.
Both petrol and kerosene are currently
enjoying subsidy, which put their retail
prices at N65/L and N50/L respectively.
By removing subsidy, government said
it would be saving about N1.3 trillion per
annum, which it plans to use to shore up
other sectors of the economy, such as
infrastructure provisions particularly for
effective downstream operations.As
shown in the table above, between
2006 and 2011, the Federal Government
of Nigeria has spent in excess of N3.56
trillion, a huge burden that has weighed
heavily on its finances in view of
numerous needs.
Apart from being a huge resource drain,
the subsidy regime is open to
corruption, with the Minister of
Petroleum Resources, Mrs Diezani Alison-
Madueke, admitting that checking
marketers’ sharp practices had become
intractable.
According to her, rather than the masses
benefiting from the system as originally
intended, “the majority of the subsidies
were actually going to the middle line
operators.”
Against this backdrop she added, “It has
become pertinent that we find other
ways to utilize vast resources that are
being channelled into subsidy, which are
not reaching the masses.”
Going forward, she said government
would set up an advisory body or a
think tank, “who would monitor and
advise,” as government would not
handle the implementation of these
benefits.
How prepared are stakeholders for
deregulation?
As the arguments go back and forth on
the wisdom of the subsidy removal,
many believe that the downstream
sector is not fully prepared,
infrastructure-wise for deregulation.
For instance, what are the states of the
refineries, can the Nigerian National
Petroleum Corporation, NNPC, the
operators of the four refineries cope
with the fuel needs of Nigerians?
If not, can the Federal Government cope
with continuous products importation
and the attendant capital flight and
attendant offshore jobs creation
associated with it?
In terms of infrastructures are
petroleum marketers – majors or
independents or depot operators fully
prepared for the challenges of
deregulation in terms of depot and
storage facilities, jetties and a host of
others?
Are the regulatory authorities – the
Department of Petroleum Resources, DPR
and the PPPRA fully equipped to enforce
market discipline, and check sharp
practices, so that consumers do not
suffer unduly on account of operators’
recklessness?
These unanswered questions make
market analysts believe that
government is putting the cart before
the horse, as these issues should have
been dispensed with before announcing
the intent to deregulate.
Current demand/supply reality
Local Refining – the existing four
refineries have combined capacity of
445,000 barrels per day, bpd. Over the
past five years the refineries only
contributed between 4% and 20% to
the national PMS/petrol consumption,
according to PPPR calculations.
Products Importation – the tempo of
importation activities have increased
due to lack of local refining capacity and
the guaranteed cost recovery for
importers through the Subsidy Scheme,
PSF.
National Consumption – there has been a
noticeable increase in the national
consumption of petroleum products.
PMS national daily consumption for
example currently stands at 35 million
litres from the initially observed 30
million litres, and Kerosene 8million litres
up from 6 million litres in previous years
respectively.
NNPC embarks on refineries
rehabilitation
The NNPC enjoys monopoly on refining
in Nigeria, as it is the operator of the
nation’s existing refineries. However, in
view of current realities, the corporation
is not deriving maximum benefits from
its monopoly status, as it should because
of the very poor state of the refineries.
NNPC’s Group Executive Director,
Refining and Petrochemicals, Mr. Phil
Chukwu, in a no-holds-barred interview
with Sweetcrude, is the first to admit
that NNPC cannot cope and compete
effectively under the current state of the
refineries.
He said, “The question has been asked
that can we survive deregulation. And
the answer is that the way we are
today, no! For us to survive we must
look at how can we make the refineries
efficient.”
Chukwu disclosed that the search for
efficiency plunged the NNPC into a
rehabilitation programme that will
revamp, maintain and prepare the
refineries for possible future capacity
expansion.
The rehabilitation programme is
expected to last for a couple of years,
because according him, it goes beyond
mere turn round maintenance, TAM, a
routine structure that the refineries
have not enjoyed for decades.
He explained, “Although we have
invested, we’ve done some turn around
maintenance, but you find that these are
usually very far in between.
Instead of doing them in three year
cycles, we wait till sometimes 10 years
and more. So, many things have
happened and what we are trying to do
today is to look at the problems from
different angles. We look at the plant
itself, the different ones I have
mentioned, we also look at the supply
chain because crude comes from the
fields and tank farms into the refineries.
They go through pipelines and all that
and when the petroleum products are
produced, they also go through
pipelines into depots, tank farms or
hauled by road to where they are
needed. These are all areas we must look
at.
“Then the third bit of the problem is the
people. How have we been operating
these refineries, do we have the
necessary skills to achieve the objectives
of these refineries. So we look at the
plants, we look at the supply chain and
then we look at the people. So, in our
rehabilitation efforts, we are going to
address these three key elements.
“For us to survive, we must move away
from our current production levels of
60% and the fact that some of the units
downstream are not functioning very
effectively, so we must fix them. In
fixing them, it is not a one-day thing, it
is something that must be planned
properly – gathering data, doing
feasibility studies, scoping, doing the
design and all and at the end of the day
you are guaranteed the time when you
finish and you are also guaranteed your
costs. But if you don’t do it very well,
you are bound to mid-way start to go
here and there, trying to solve problems
that should have been solved before
you started.”
Regulators perspectives
Downstream regulators in the DPR were
weary to comment on the planned
deregulation when contacted severally
by Sweetcrude, but its PPPRA
counterpart had a whole lot of
arguments in favour of deregulation.
According to the PPPRA, “Deregulation
and price liberalisation of the
downstream oil sector constitutes the
basis for medium to long term reforms
within the downstream petroleum
sector.”
This, it noted, will to introduce
competition, enhance efficiency, and
improve products supply, just as
appropriate and liberalised pricing
framework will help reduce
inefficiencies in sourcing, refining,
marketing, supply and distribution of
petroleum products.
It further argued that “the elimination or
reduction of unsustainable subsidy
burden on government and allow
deployment of resources to fund critical
infrastructure and vital social sector
spending is critical to revamping the
sector.”
It also said that a deregulated sector will
facilitate the operation and management
of pipelines and storage facilities under
the Open Access, Common Carrier
regime.
Notwithstanding its numerous
advantages, the PPPRA was quick to
note that “Deregulation/liberalisation
must be accompanied by infrastructural
development, institutional and
regulatory reforms,” to encourage
prospective investors.
Some of the areas begging for
infrastructure upgrade in the
downstream the PPPRA enumerated
include, adequate import reception
facility, which it said will reduce the
demurrage exposure experienced in
products handling.
• Investment in storage facility and
network of pipelines as we move
through the creation of a National
Strategic Fuel Reserves, NSFR
• The existing pipelines need to be
refurbished and adequately maintained.
• There is no pipeline network in the
North West region. Could be an
opportunity for investment
• Also, developing surveillance system
of the pipeline network in view of the
incessant pipeline vandalism.
Marketers also keep mum
None of the representatives of the
various marketing groups were willing
to speak on their level of preparedness
for deregulation and challenges ahead.
The Major Marketers Association of
Nigeria, MOMAN; Independent Petroleum
Marketers Association of Nigeria, IPMAN;
Depot and Petroleum Products Marketers
Association, DPPMA; and the Jetty and
Petroleum Tanker Farm Operators of
Nigeria, JEPTFON, all had nothing to say.
But under the condition of anonymity, a
DAPPMA member insisted that
deregulation is the only way forward,
adding that the only issue at stake is,
“the sincerity of government to pull it
through because we have been on the
process for over 10 years now.”
He noted that the only reason why
deregulation has suddenly become a big
issue is because “government is cash-
strapped, and because of increasing
pressure from state governments for
increase in allocation in the light of the
new minimum wage, government is
trying to save from every possible
way.”
He argued that his members have
invested heavily in storage facilities and
were waiting to get on with the process
and begin to reap the dividends from
their investments.
But most marketers of the petroleum
products marketers had borrowed from
the banks at very high interest rates to
finance their projects and may not start
making profits anytime soon. With the
clamp down on administrative
recklessness by the Central Bank of
Nigeria, CBN, banks are under pressure
to recover their loans.
Moreover, with the acquisition and
takeover of some of the distressed
banks by new management and some
with international affiliations, the fear of
these downstream facilities being placed
under receivership has heightened.
In the face of these challenges,
government may well continue the
burden of subsidy longer than expected,
except it takes the drastic step of full
blown deregulation after certain
structures have been put in place.
Government has developed cold feet
over going ahead with the planned
removal of petroleum subsidy, which
will herald the full commencement of
deregulation of the downstream
petroleum sector.
Government’s indecision follows
mounting criticisms against the plan,
which many believe would increase the
hardship of the common man. This is
because if allowed to run, the price of
petrol would be as high as N140/ per
litre, while kerosene, the fuel for the
common man will be as high as N155/L,
according to the latest market data on
the Petroleum Products Pricing
Regulatory Agency, PPPRA’s website.
Both petrol and kerosene are currently
enjoying subsidy, which put their retail
prices at N65/L and N50/L respectively.
By removing subsidy, government said
it would be saving about N1.3 trillion per
annum, which it plans to use to shore up
other sectors of the economy, such as
infrastructure provisions particularly for
effective downstream operations.As
shown in the table above, between
2006 and 2011, the Federal Government
of Nigeria has spent in excess of N3.56
trillion, a huge burden that has weighed
heavily on its finances in view of
numerous needs.
Apart from being a huge resource drain,
the subsidy regime is open to
corruption, with the Minister of
Petroleum Resources, Mrs Diezani Alison-
Madueke, admitting that checking
marketers’ sharp practices had become
intractable.
According to her, rather than the masses
benefiting from the system as originally
intended, “the majority of the subsidies
were actually going to the middle line
operators.”
Against this backdrop she added, “It has
become pertinent that we find other
ways to utilize vast resources that are
being channelled into subsidy, which are
not reaching the masses.”
Going forward, she said government
would set up an advisory body or a
think tank, “who would monitor and
advise,” as government would not
handle the implementation of these
benefits.
How prepared are stakeholders for
deregulation?
As the arguments go back and forth on
the wisdom of the subsidy removal,
many believe that the downstream
sector is not fully prepared,
infrastructure-wise for deregulation.
For instance, what are the states of the
refineries, can the Nigerian National
Petroleum Corporation, NNPC, the
operators of the four refineries cope
with the fuel needs of Nigerians?
If not, can the Federal Government cope
with continuous products importation
and the attendant capital flight and
attendant offshore jobs creation
associated with it?
In terms of infrastructures are
petroleum marketers – majors or
independents or depot operators fully
prepared for the challenges of
deregulation in terms of depot and
storage facilities, jetties and a host of
others?
Are the regulatory authorities – the
Department of Petroleum Resources, DPR
and the PPPRA fully equipped to enforce
market discipline, and check sharp
practices, so that consumers do not
suffer unduly on account of operators’
recklessness?
These unanswered questions make
market analysts believe that
government is putting the cart before
the horse, as these issues should have
been dispensed with before announcing
the intent to deregulate.
Current demand/supply reality
Local Refining – the existing four
refineries have combined capacity of
445,000 barrels per day, bpd. Over the
past five years the refineries only
contributed between 4% and 20% to
the national PMS/petrol consumption,
according to PPPR calculations.
Products Importation – the tempo of
importation activities have increased
due to lack of local refining capacity and
the guaranteed cost recovery for
importers through the Subsidy Scheme,
PSF.
National Consumption – there has been a
noticeable increase in the national
consumption of petroleum products.
PMS national daily consumption for
example currently stands at 35 million
litres from the initially observed 30
million litres, and Kerosene 8million litres
up from 6 million litres in previous years
respectively.
NNPC embarks on refineries
rehabilitation
The NNPC enjoys monopoly on refining
in Nigeria, as it is the operator of the
nation’s existing refineries. However, in
view of current realities, the corporation
is not deriving maximum benefits from
its monopoly status, as it should because
of the very poor state of the refineries.
NNPC’s Group Executive Director,
Refining and Petrochemicals, Mr. Phil
Chukwu, in a no-holds-barred interview
with Sweetcrude, is the first to admit
that NNPC cannot cope and compete
effectively under the current state of the
refineries.
He said, “The question has been asked
that can we survive deregulation. And
the answer is that the way we are
today, no! For us to survive we must
look at how can we make the refineries
efficient.”
Chukwu disclosed that the search for
efficiency plunged the NNPC into a
rehabilitation programme that will
revamp, maintain and prepare the
refineries for possible future capacity
expansion.
The rehabilitation programme is
expected to last for a couple of years,
because according him, it goes beyond
mere turn round maintenance, TAM, a
routine structure that the refineries
have not enjoyed for decades.
He explained, “Although we have
invested, we’ve done some turn around
maintenance, but you find that these are
usually very far in between.
Instead of doing them in three year
cycles, we wait till sometimes 10 years
and more. So, many things have
happened and what we are trying to do
today is to look at the problems from
different angles. We look at the plant
itself, the different ones I have
mentioned, we also look at the supply
chain because crude comes from the
fields and tank farms into the refineries.
They go through pipelines and all that
and when the petroleum products are
produced, they also go through
pipelines into depots, tank farms or
hauled by road to where they are
needed. These are all areas we must look
at.
“Then the third bit of the problem is the
people. How have we been operating
these refineries, do we have the
necessary skills to achieve the objectives
of these refineries. So we look at the
plants, we look at the supply chain and
then we look at the people. So, in our
rehabilitation efforts, we are going to
address these three key elements.
“For us to survive, we must move away
from our current production levels of
60% and the fact that some of the units
downstream are not functioning very
effectively, so we must fix them. In
fixing them, it is not a one-day thing, it
is something that must be planned
properly – gathering data, doing
feasibility studies, scoping, doing the
design and all and at the end of the day
you are guaranteed the time when you
finish and you are also guaranteed your
costs. But if you don’t do it very well,
you are bound to mid-way start to go
here and there, trying to solve problems
that should have been solved before
you started.”
Regulators perspectives
Downstream regulators in the DPR were
weary to comment on the planned
deregulation when contacted severally
by Sweetcrude, but its PPPRA
counterpart had a whole lot of
arguments in favour of deregulation.
According to the PPPRA, “Deregulation
and price liberalisation of the
downstream oil sector constitutes the
basis for medium to long term reforms
within the downstream petroleum
sector.”
This, it noted, will to introduce
competition, enhance efficiency, and
improve products supply, just as
appropriate and liberalised pricing
framework will help reduce
inefficiencies in sourcing, refining,
marketing, supply and distribution of
petroleum products.
It further argued that “the elimination or
reduction of unsustainable subsidy
burden on government and allow
deployment of resources to fund critical
infrastructure and vital social sector
spending is critical to revamping the
sector.”
It also said that a deregulated sector will
facilitate the operation and management
of pipelines and storage facilities under
the Open Access, Common Carrier
regime.
Notwithstanding its numerous
advantages, the PPPRA was quick to
note that “Deregulation/liberalisation
must be accompanied by infrastructural
development, institutional and
regulatory reforms,” to encourage
prospective investors.
Some of the areas begging for
infrastructure upgrade in the
downstream the PPPRA enumerated
include, adequate import reception
facility, which it said will reduce the
demurrage exposure experienced in
products handling.
• Investment in storage facility and
network of pipelines as we move
through the creation of a National
Strategic Fuel Reserves, NSFR
• The existing pipelines need to be
refurbished and adequately maintained.
• There is no pipeline network in the
North West region. Could be an
opportunity for investment
• Also, developing surveillance system
of the pipeline network in view of the
incessant pipeline vandalism.
Marketers also keep mum
None of the representatives of the
various marketing groups were willing
to speak on their level of preparedness
for deregulation and challenges ahead.
The Major Marketers Association of
Nigeria, MOMAN; Independent Petroleum
Marketers Association of Nigeria, IPMAN;
Depot and Petroleum Products Marketers
Association, DPPMA; and the Jetty and
Petroleum Tanker Farm Operators of
Nigeria, JEPTFON, all had nothing to say.
But under the condition of anonymity, a
DAPPMA member insisted that
deregulation is the only way forward,
adding that the only issue at stake is,
“the sincerity of government to pull it
through because we have been on the
process for over 10 years now.”
He noted that the only reason why
deregulation has suddenly become a big
issue is because “government is cash-
strapped, and because of increasing
pressure from state governments for
increase in allocation in the light of the
new minimum wage, government is
trying to save from every possible
way.”
He argued that his members have
invested heavily in storage facilities and
were waiting to get on with the process
and begin to reap the dividends from
their investments.
But most marketers of the petroleum
products marketers had borrowed from
the banks at very high interest rates to
finance their projects and may not start
making profits anytime soon. With the
clamp down on administrative
recklessness by the Central Bank of
Nigeria, CBN, banks are under pressure
to recover their loans.
Moreover, with the acquisition and
takeover of some of the distressed
banks by new management and some
with international affiliations, the fear of
these downstream facilities being placed
under receivership has heightened.
In the face of these challenges,
government may well continue the
burden of subsidy longer than expected,
except it takes the drastic step of full
blown deregulation after certain
structures have been put in place.
We’ve been selling products below costwith subsidies – Phil Chukwu
Mr. Phil Chukwu, the group executive
director in charge of refining and
petrochemicals at the Nigerian National
Petroleum Corporation, NNPC, is a
focused and driven man. Before his
current posting at the corporation, he
had occupied other portfolios including
that of group general manager, NAPIMS,
group executive director, exploration
and production, among others.
In this interview with Hector
Igbikiowubo and Clara Nwachukwu of
Sweetcrude, he speaks passionately
about how the refineries fell into
disrepair, plans to rehabilitate them and
restore production to 90 per cent
installed capacity. He talks about the
need to position the refineries to
operate in a deregulated environment,
among other issues.
Excerpts:
Can you give us an update on the state
of the four refineries – the two in Port
Harcourt, and the ones in Warri and
Kaduna?
Let me first of all say that we see the
refineries as three refineries because
Port Harcourt has two refineries in one –
so we talk about the 210,000 barrel
refineries in Port Harcourt.
In Kaduna, we have a refinery and a
petrochemical plant attached to it.
Actually, in Kaduna there are two plants
– the fuels plant which uses Escravos
Crude, and there is the Lubes plant,
which uses imported heavier crude.
Also, there is the LAB, which uses some
of the products from these refineries to
produce linear alkaline benzene, which is
a raw material for detergents. From this
also, we produce base oil from the Lubes
plant for lubes, wax for candles etc. So in
Kaduna, you may be talking about three
separate plants – the fuels, the lubes and
the LAB. Then the tin and drum is for
packaging.
In Warri, you have the refinery, and
then the petrochemicals – the PP or clean
plant as it is called and the carbon black
plant as well, so you also have about
three of them.
Phil Chukwu
You can now see how complex these
refineries are and for us to have the full
benefits of these investments, we must
have all of these units work.
Unfortunately, over time, the refineries
have not been operating optimally, they
are not doing well, and we are doing
very poorly.
I believe, if I may say that even though
we can do about 60 percent, that is the
inlets or DCUs- Crude Dispensing Units, if
they can take about 60 percent of the
name plate capacity, even though we
can do that, the other units also have
issues because they are not producing
optimally. Therefore, you find that the
yield slate we have is not being
achieved in the refineries. This is
because of many years of not investing
in these refineries.
Although we have invested, we’ve done
some turn around maintenance, but you
find that these are usually very far in
between. Instead of doing them in three
year cycles, we wait till sometimes 10
years and more. So, many things have
happened and what we are trying to do
today is to look at the problems from
different angles. We look at the plant
itself, the different ones I have
mentioned, we also look at the supply
chain because crude comes from the
fields and tank farms into the refineries.
They go through pipelines and all that
and when the petroleum products are
produced, they also go through
pipelines into depots, tank farms or
hauled by road to where they are
needed. These are all areas we must look
at.
Then the third bit of the problem is the
people. How have we been operating
these refineries, do we have the
necessary skills to achieve the objectives
of these refineries. So we look at the
plants, we look at the supply chain and
then we look at the people. So, in our
rehabilitation efforts, we are going to
address these three key elements.
And how far have you gone with
tackling any of these problems?
The programmes have started, we call it
refineries rehabilitation programme. For
instance, the Port Harcourt initially
started with a turn-around programme,
and they’ve gone as far as placing
orders for long lead items, and we have
also visited some of the contractors
because what we are doing is that those
who built the refineries will be the ones
to do the jobs for us. We have
understanding with Technimont that
was proposed by JGC.
JGC is unable to come for several
reasons – there is a Japanese
Government’s advisory that Japanese
companies should not come to the Niger
Delta. So that is an issue, and we’ve
visited them in Japan trying to make
them understand, and the Ministry of
External affairs is assisting us in this
respect. So we are trying to convince
them so that the Japanese Government
can change their advisory from a high
alert level, to maybe a moderate one so
that these people can come. But the
situation today is that they are unable to
come. But they said they will work with
Technimont, who has been partnering
with them all around the world. So
Technimont will be there to work, with
JGC in the background.
For Kaduna, Kaduna was built by
Chyoda, and Chyoda is going to come
and they have agreed to come, even
though they are Japanese as well, but
they are not going to the Niger Delta,
which is where they have an advisory.
Chyoda have agreed to come, we were
in Japan and we met with them and we
are working at how we can come to an
agreement for them to come.
For Warri, we have Saipem, which is the
successor of Snamprogetti, who built the
refinery. Snamprogetti has been
acquired by Saipem, so it’s a unit of
Saipem; they are ready because they are
on ground in Nigeria so we don’t have a
problem with them.
So all three
contractors
have been
identified, we
are also
engaging
NETCO, working
with Technip,
an
internationally
renowned
company with
a lot of experience in refinery work and
they will act as consultants to NNPC.
NETCO and Technip have formed a
consortium, but NETCO is leading and
they will now act as consultants to us.
We have started going round the
refineries to gather data, do the
inspection and auditing, gather all the
data, scope the work, schedule it and do
the cost estimates, prepare all the
documentations for negotiations with
the afore mentioned contractors.
So we’ve gone along this route and we
are currently engaging with NETCO and
their partners to ensure that we wrap
up agreements with them. But before
then, they have already started work
and their proposal is with us and we are
in the process of negotiating with them.
Going back to Port Harcourt and JGC, in
the event the advisory is not vacated,
what happens, or do you have an
alternative arrangement in place?
Let me assure you that Technimont is a
very competent company, they’ve
worked for us in that refinery and they
partner with JGC all across the world, so
they don’t have an issue. Actually, it was
JGC that suggested we work with them
and we believe that they have all the
competences required. They even
worked on the Eleme Petrochemical
Company.
We also know that the Port Harcourt
Refinery over the years has been
bedeviled by electricity supply issues, is
there any plan to tackle that problem
head on?
Yes, we have two initiatives – one is to
refurbish the existing electricity supply
system, which is the steam turbine. The
problem we have there is because of the
water quality producing steam to drive
the turbines. So we are fixing that. But
the main plant, which removes all the
minerals from the water, we have a
contract in the process and once that is
concluded, they will award contract for
the placement of a mini plant, which
produces the water, which goes to the
boiler and from the boiler, you have
steam that drives the turbine. So, this
system is being worked on.
The second system is where you have a
reliable power generation system just
like you have in Warri, to have a gas
fired generator. In that case what we
are doing is, we are talking to two
companies and as soon as we conclude,
in fact, the papers are going to be
considered in GEC, if the GEC meeting
holds today, we will look at what has
been proposed, select the best one and
begin to work with them to install a
turbo generator inside the compound in
Port Harcourt. That will be an alternative
to the existing system.
This doesn’t sound too salutary an
alternative considering the issues we
have with gas, so how will it play out?
We don’t have that many issues with
gas because there is already a gas
pipeline that comes into the Port
Harcourt refinery. The volume of gas
required is something like for 30
Megawatts power generation, so it
won’t require that large volume of gas.
Already there is a pipeline taking gas
across that area and all we need is to
key into the refinery.
The interventions or programmes you
have mentioned so far appear to be
moving at snail speed, which is usually
the case with executing policies in
Nigeria?
The snail speed you’re talking about, let
me tell you that in engineering projects
you don’t just jump into it, you must
plan properly else, you’ll have problems
in implementation and that is what you
must avoid. If you want it to happen
today, it’s not going to happen. When
our consultants finish their work, then
you’ll know the proper time schedule.
We are looking at three elements in the
implementation. The first one is to
revamp the refineries the way they are
today in the immediate short term. We
look at the refineries, there are things
that need to be replaced, some cleaning
up and all that and we’ll do that. The
next stage is the upgrade; you’ll agree
with me that in the time we are talking
about 25-30 years that these refineries
have been there, technology has
changed, and if technology has moved
on, you need to also adapt to new
technologies. So we the upgrade
segment, after the initial revamping, you
have the upgrade and if subsequently
you want to expand these refineries,
you can go ahead and refine them.
These are some of the things that we
hope to do.
The first bit is to revamp the refineries,
clean them up, change the parts that are
rusty to make it more efficient, but it
remains the way it is. Then you go to
the upgrade side, this will increase the
efficiency because we are introducing
the latest technology in refining, then
the final stage is if we want to expand
the refineries. But we are not talking
about that now. These are the things we
plan to do and our schedule will address
the first part – revamping, and then
address the second one, and we take
them in stages like that.
In order to address this concern, can we
look at the time line, how soon do you
expect a feedback from your
consultants?
Let’s not look at my consultants because
what we have or the directive we have
from thee management – the minister
and government is that we will do the
Port Harcourt 1 for one year, the other
one we will do for two years. The Port
Harcourt 1 like I told you, we’ve already
ordered for the long lead items. I
personally went to Japan to speak to
some of those who manufacture these
components, so went to their offices
one by one. We spoke with them and
got agreement with them on when they
can bring them in. the actual bit of
during the time when they will actually
do the work on ground will be say
during a two month or three month
period. What you have is from now to
probably August-September will be for
the manufacture of spares and
equipment that we need and once they
arrive, the actual work of installation
and integration will commence
immediately.
We have been given one year and we
are trying to work within one year, but
the revamping bit, if we now need to
move ahead, then that is another
segment of the work. Our objective at
the end of the day is to achieve about
90 percent of the name plate capacity
for Port Harcourt and all other ones.
Today, Warri is the best that we have.
But you see, one of the problems we
have in Port Harcourt is that it is the new
Port Harcourt that we will address
during this phase. The old Port Harcourt
is really in totally bad shape and that
one will be included in a longer term
work and this will come in with the
upgrade because you have to really go
into it and do detail work in order to
upgrade it to a standard where it can
produce on the basis of the name plate
capacity.
For the purposes of clarity, the 90%
you’re looking at is for Port Harcourt 2,
the 150,000 barrels?
Yes, the 150,000 of the new Port
Harcourt. The old one has not been
functioning for a very long time,
therefore a lot more work needs to be
done there. Port Harcourt is doing 66%
as at yesterday. But you have to
understand also that the FCC – Fluid
Catalytic Cracking unit has not been
working because of power issue. So
once the power issue is solved, in fact,
they are trying to bring back the FCC
today.
A little more clarity, if you say the
refinery is doing about 66%, yet the FCC
is not working, how is that?
The explanation is that the CDU that is
the unit that brings in crude and when
refineries report their performance that
is what they report. The other units will
take input from the CDUs and other units
to function; the FCC gets it raw materials
from the VDU and then processes it. So
what the FCC does is to increase the
volume of PMS that you are producing.
But in reporting the 90% I am talking
about, is from the CDU, what the refinery
can take in at any particular time. So
now it is now our responsibility to
ensure that these other units function
optimally so that whatever is passed
into them is also processed.
In real terms, the refineries supposedly
get 450 000, barrels per day, what
volume of this are you able to process?
I’ve given you an average for all the
refineries, if you talk about an average
of 60%, it will be 60% of 450,000. But
this fluctuates because it is not that at
any particular point in time you have
just that same volume, it could be
higher, it depends on how the refineries
are functioning. But the issue with the
refineries in terms of the restrictions of
the crude you pass into it, is not because
the refineries are not functioning all the
time. There are other issues. There are
the issues of bringing in the crude,
sometimes, you are processing and the
crude line is broken. You process what
you have and if you finish processing
that, you have to wait.
In sum, when you are looking at the
average, you are doing lower than what
you expected to do, and that is what the
issue is. A lot of problems associated
with the refineries come with the
availability of crude.
Let us look at another level of the
problem, the limited authority in terms
of approval limits the managements of
the refineries enjoy are rather small, has
this been addressed?
That has been addressed. The federal
Government has changed the level of
financial authority for most of the
ministries, departments and agencies
and we have adopted that. Today, the
approval limit at the refinery is
substantially more than what it used to
be in the past. So I don’t see that as a
problem.
Given your explanations, it appears the
turn-around maintenance will take
longer than anticipated?
What we are doing is rehabilitation not
turn around. Rehabilitation is more of
TAM + because you have to do a lot
more. TAM is a routine thing, but this
time around, we are not talking about
the routine because when we should
have done Port Harcourt, we are talking
about several years back. Now we are
trying to do it and in addition to that, we
are talking about all the others like
power system, the de-bottlenecking of
the FCC.
When the Port Harcourt refinery was
built, it was originally designed at
100,000 p/d, then I think there was a
plan to build another refinery in Calabar,
but that one failed, so government
decided they should increase the Port
Harcourt to 150,000 barrels. But in
increasing it to 150, 000, the FCC unit
was not increased. Recall also that the
old Port Harcourt refinery was just a
topping refinery but it didn’t have FCC, it
had to also use the existing one. So you
have to de-bottleneck it this time
around. You have to increase its
capacity or you add another unit that
will handle it to increase the volume that
it has to take. So the work on ground is
beyond turn around maintenance.
Given these scenarios, from a layman’s
point of view is it not just better to build
new modular refineries?
No, I don’t agree. Having a modular
refinery will be very small and I don’t
see a company like NNPC going to have
smaller refineries. But if we refurbish
this one, we will do that at a cost that
what you will spend here cannot even
build one refinery. Do you know how
much it will cost you today to build a
refinery of this capacity? You’re talking
about a combined 445,000 bpd refinery;
it’s going to be a huge cost if you decide
to build new ones. Why don’t you spend
a fraction of the money you would have
used to build this one up, do the
technology upgrade. We have experts
who have looked at them and can do it.
We are also looking at the market, the
market in Nigeria today is different from
the market in Nigeria when some of
these refineries were built. Therefore,
the question is, when experts look at it,
am not saying that is what will be done,
but we can reconfigure the refineries to
produce more of the products desired in
this market than products that probably
we can’t handle.
Let’s take Kaduna for example, when it
was designed, it was designed to
produce asphalt, but how do we
evacuate it, have we been able to
successfully evacuate it. Yes, asphalt is
needed in the country but since we
have not been producing, have we not
been using asphalt in the country?
These are some of the things we have to
look at, we have to look at the market,
what does the market want? And we
must be able to address the issue. These
are some of the issues we are carrying
out studies on and we hope at the right
time we should be able to say we can do
this to the refineries or leave them the
way they are. But some of the will need
twitching here and there, and I gave the
example of the Port Harcourt Refinery.
I also want note the situation in Warri,
where there is a PC- Petrochemical plant,
it has not worked for over 12 years and
we hope that during this exercise we
will be able to bring it back to life
because it is also going to be a money
earner for us.
This brings us to a grave concern out
there, which is part of what has brought
the refineries to where they are today
with regard to the frequent policy shifts
in government and management. Won’t
you say the NNPC will be better off
partnering with the private sector for
greater efficiency and less interference
from government?
Let me first of all say that the policies
regarding refineries in Nigeria have
been very consistent in the sense that
there is hardly any government in
Nigeria that does not desire optimum
utilization of the capacity of the
refineries, it has always been the same.
They want the refineries to run well,
they want them produce at optimum
levels.
Once this is done you may say that in
implementation, there is scarcity of
funds because there are competing
needs in this country so if the funds are
not there and the money is not invested
at that time, we have this kind of
problems occurring. So talking about
policies, the policies have been very
consistent.
Secondly, am here today, am pursuing a
policy of rehabilitating the refineries to
make sure that the refineries are
working at least 90% of their capacities,
it is not just me but something being
driven by the management of the NNPC
and the government – the minister up to
the president. They desire it and want
this to happen. Why? From a selfish
point of view, if we don’t do it, then we
will b out of business tomorrow. If there
is deregulation tomorrow and we are
not able to do it we will be out of
business, if we continue to produce at a
higher cost, as an efficient organization,
we should be able to sell below my
costs; if I do that there will be no market
for me. In the long run, I won’t even be
able to refurbish my refineries, so these
are some of the things that happened
because the business structure was
really such that we’ve been selling below
costs with subsidies and all that, it
distorts the market and we are unable to
run a refinery in a business manner. And
that is what deregulation will probably
introduce and if we don’t do well, we’ll
just phase out. So it is very important
that we fix these refineries, from the
NNPC’s point of view and bring it to the
level where we are very competitive.
Then when you are talking about joint
ventures, I believe it is beyond me, it is
government’s decision on what they
want to do because they own the assets.
If they decide tomorrow that they want
to do it then they will.
Would you then say the NNPC and the
refineries are prepared for
deregulation?
That is what this programme is all about,
it is geared towards making the
refineries efficient and if the refineries
are efficient they will be able to compete
effectively in a deregulated
environment. For us to be competitive
and bring our refining costs to a level
comparable to refineries across the
world, then we should be able fix tem,
once this is done, the products prices
will be competitive as well.
You raised a critical point about costs of
your output; it’s contentious out there,
because there are arguments that since
the crude oil is here, the refineries here,
the cost of producing a litre of petrol is
relatively cheaper?
Let me explain that the way it is today,
PPMC buys the crude from government
at the international market price. It is
PPMC that sends this crude to the
refineries, the refineries process it for
the PPMC, which takes its products and
sends it to the market. For the refineries,
what they earn is the processing fees
from PPMC. That is the structure on
ground today.
But we are looking at a structure where
the refineries can buy their own crude,
process and sell. This is happening in
other places. I went to France to see
how they are organized. They have
what they call refining and marketing.
They process their crude and sell the
products. We are not running that today
and we are looking at it. This is what
was proposed in the PIB, where the
refineries will buy their own crude,
process it and sell to off-takers and that
is an option we are looking at.
So you find that PPMC also has a lot of
issues, lines are vandalized, they lose a
lot of the crude before it gets to the
refineries and same thing when the
products are produced before it gets to
the end users. They carry the burden of
these losses. If they eliminate these
vandalism and all, the costs will be lower.
I don’t know if this is still part of the PIB,
it was proposed that the refineries will
have a structure where they will become
refining and marketing companies and
take over most of the functions of the
PPMC and a new company will be
established to manage the pipelines
such that when you use the pipeline,
you pay a fee for it and it will be open
for all users.
So why were all these not done before
full deregulation?
The question has been asked that can
we survive deregulation. And the
answer is that the way we are today, no.
For us to survive we must look at how
can we make the refineries efficient. If
you look at manufacturing in Nigeria, it
is done at a very high cost, no matter
which sector you are looking at –m with
having to provide their own power and
other facilities and the refineries are not
an exception.
Earlier on we were talking about how to
give power the Port Harcourt refinery,
you can’t rely on PHCN for power you
have to build your own power plant and
when you do this and buy gas and
other inputs your costs will be higher
than the ordinary power supplied by
PHCN.
So for us to survive, we must move
away from our current production levels
of 60% and the fact that some of the
units downstream are not functioning
very effectively, so we must fix them. In
fixing them, it is not a one-day thing, it
is something that must be planned
properly – gathering data, doing
feasibility studies, scoping, doing the
design and all and at the end of the day
you are guaranteed the time when you
finish and you are also guaranteed your
costs.
But if you don’t do it very well, you are
bound to mid-way start to go here and
there, trying to solve problems that
should have been solved before you
started. This is what we are doing today,
engaging those who must work with us
and ensure that this thing works, those
who have done it before. By the initial
studies carried out, by March next year,
we must begin to see changes for Port
Harcourt. For the other refineries for the
ones the items that we need to order,
we have placed the orders so that by
the time the ground work begins we
have prepared everybody. We need also
to address the skills of the workers, such
that in upgrading the plants we are also
upgrading the skills of the people.
To this end we are planning to establish
a refining school where people both old
and new will be trained and gradually
over the years they will be going back
for retraining. It’s going to be hands on,
to sharpen their skills, and improve
health safety and environment
knowledge so that they won’t burn
down the refineries accidentally. Those
already there today, we need to give
them top up training, because when
people have been in a place for too long
there are certain behaviors they acquire
which are not right. You need to correct
that and you can only do that through
training and retraining. These are what
we are doing.
I also mentioned the supply chain as the
third element, if we don’t get the crude,
say you pass in 445.000 bpd to the
refineries and you lose 20% of this then
you are not efficient. So there are
integrity and security issues. Integrity in
the sense that are these facilities solid
and in good shape or because of old age
have lost their strength and therefore
can be burst anywhere and lose the
products passed through them.
The other is security, are we able to
secure the pipelines and whose
responsibilities are they? These ought to
be addressed and once this is done you
can be sure that when you pass in crude
and get 99.9% into the refineries, your
costs will be much, much lower. Same
thing if you’re sure that you don’t lose
your products, so the costs we are
talking about today will be reduced. All
these are parts of the costs that we
incur in product losses along the
pipelines.
What about local content input in all of
these?
While talking about the refineries I
mentioned all the contractors for the
various refineries, I believe Nigerian
content is also important. What we are
doing is that because these companies
built the refineries we decided that we
invite them back for the big project.
They know what it takes, they have the
designs. In fact, when I went to Japan I
met people who had fabricated some of
the components for Port Harcourt and
immediately they remembered and
brought out drawing for Port Harcourt
and gave to me. So that is the advantage
of taking these people.
So for the Nigerian content, we are
producing a list of local contractors who
are competent and who have been
working in these refineries and we are
going to ask them to sub-contract to
these international companies where
they have competence. This is one thing
we are consciously doing to promote
local content.
director in charge of refining and
petrochemicals at the Nigerian National
Petroleum Corporation, NNPC, is a
focused and driven man. Before his
current posting at the corporation, he
had occupied other portfolios including
that of group general manager, NAPIMS,
group executive director, exploration
and production, among others.
In this interview with Hector
Igbikiowubo and Clara Nwachukwu of
Sweetcrude, he speaks passionately
about how the refineries fell into
disrepair, plans to rehabilitate them and
restore production to 90 per cent
installed capacity. He talks about the
need to position the refineries to
operate in a deregulated environment,
among other issues.
Excerpts:
Can you give us an update on the state
of the four refineries – the two in Port
Harcourt, and the ones in Warri and
Kaduna?
Let me first of all say that we see the
refineries as three refineries because
Port Harcourt has two refineries in one –
so we talk about the 210,000 barrel
refineries in Port Harcourt.
In Kaduna, we have a refinery and a
petrochemical plant attached to it.
Actually, in Kaduna there are two plants
– the fuels plant which uses Escravos
Crude, and there is the Lubes plant,
which uses imported heavier crude.
Also, there is the LAB, which uses some
of the products from these refineries to
produce linear alkaline benzene, which is
a raw material for detergents. From this
also, we produce base oil from the Lubes
plant for lubes, wax for candles etc. So in
Kaduna, you may be talking about three
separate plants – the fuels, the lubes and
the LAB. Then the tin and drum is for
packaging.
In Warri, you have the refinery, and
then the petrochemicals – the PP or clean
plant as it is called and the carbon black
plant as well, so you also have about
three of them.
Phil Chukwu
You can now see how complex these
refineries are and for us to have the full
benefits of these investments, we must
have all of these units work.
Unfortunately, over time, the refineries
have not been operating optimally, they
are not doing well, and we are doing
very poorly.
I believe, if I may say that even though
we can do about 60 percent, that is the
inlets or DCUs- Crude Dispensing Units, if
they can take about 60 percent of the
name plate capacity, even though we
can do that, the other units also have
issues because they are not producing
optimally. Therefore, you find that the
yield slate we have is not being
achieved in the refineries. This is
because of many years of not investing
in these refineries.
Although we have invested, we’ve done
some turn around maintenance, but you
find that these are usually very far in
between. Instead of doing them in three
year cycles, we wait till sometimes 10
years and more. So, many things have
happened and what we are trying to do
today is to look at the problems from
different angles. We look at the plant
itself, the different ones I have
mentioned, we also look at the supply
chain because crude comes from the
fields and tank farms into the refineries.
They go through pipelines and all that
and when the petroleum products are
produced, they also go through
pipelines into depots, tank farms or
hauled by road to where they are
needed. These are all areas we must look
at.
Then the third bit of the problem is the
people. How have we been operating
these refineries, do we have the
necessary skills to achieve the objectives
of these refineries. So we look at the
plants, we look at the supply chain and
then we look at the people. So, in our
rehabilitation efforts, we are going to
address these three key elements.
And how far have you gone with
tackling any of these problems?
The programmes have started, we call it
refineries rehabilitation programme. For
instance, the Port Harcourt initially
started with a turn-around programme,
and they’ve gone as far as placing
orders for long lead items, and we have
also visited some of the contractors
because what we are doing is that those
who built the refineries will be the ones
to do the jobs for us. We have
understanding with Technimont that
was proposed by JGC.
JGC is unable to come for several
reasons – there is a Japanese
Government’s advisory that Japanese
companies should not come to the Niger
Delta. So that is an issue, and we’ve
visited them in Japan trying to make
them understand, and the Ministry of
External affairs is assisting us in this
respect. So we are trying to convince
them so that the Japanese Government
can change their advisory from a high
alert level, to maybe a moderate one so
that these people can come. But the
situation today is that they are unable to
come. But they said they will work with
Technimont, who has been partnering
with them all around the world. So
Technimont will be there to work, with
JGC in the background.
For Kaduna, Kaduna was built by
Chyoda, and Chyoda is going to come
and they have agreed to come, even
though they are Japanese as well, but
they are not going to the Niger Delta,
which is where they have an advisory.
Chyoda have agreed to come, we were
in Japan and we met with them and we
are working at how we can come to an
agreement for them to come.
For Warri, we have Saipem, which is the
successor of Snamprogetti, who built the
refinery. Snamprogetti has been
acquired by Saipem, so it’s a unit of
Saipem; they are ready because they are
on ground in Nigeria so we don’t have a
problem with them.
So all three
contractors
have been
identified, we
are also
engaging
NETCO, working
with Technip,
an
internationally
renowned
company with
a lot of experience in refinery work and
they will act as consultants to NNPC.
NETCO and Technip have formed a
consortium, but NETCO is leading and
they will now act as consultants to us.
We have started going round the
refineries to gather data, do the
inspection and auditing, gather all the
data, scope the work, schedule it and do
the cost estimates, prepare all the
documentations for negotiations with
the afore mentioned contractors.
So we’ve gone along this route and we
are currently engaging with NETCO and
their partners to ensure that we wrap
up agreements with them. But before
then, they have already started work
and their proposal is with us and we are
in the process of negotiating with them.
Going back to Port Harcourt and JGC, in
the event the advisory is not vacated,
what happens, or do you have an
alternative arrangement in place?
Let me assure you that Technimont is a
very competent company, they’ve
worked for us in that refinery and they
partner with JGC all across the world, so
they don’t have an issue. Actually, it was
JGC that suggested we work with them
and we believe that they have all the
competences required. They even
worked on the Eleme Petrochemical
Company.
We also know that the Port Harcourt
Refinery over the years has been
bedeviled by electricity supply issues, is
there any plan to tackle that problem
head on?
Yes, we have two initiatives – one is to
refurbish the existing electricity supply
system, which is the steam turbine. The
problem we have there is because of the
water quality producing steam to drive
the turbines. So we are fixing that. But
the main plant, which removes all the
minerals from the water, we have a
contract in the process and once that is
concluded, they will award contract for
the placement of a mini plant, which
produces the water, which goes to the
boiler and from the boiler, you have
steam that drives the turbine. So, this
system is being worked on.
The second system is where you have a
reliable power generation system just
like you have in Warri, to have a gas
fired generator. In that case what we
are doing is, we are talking to two
companies and as soon as we conclude,
in fact, the papers are going to be
considered in GEC, if the GEC meeting
holds today, we will look at what has
been proposed, select the best one and
begin to work with them to install a
turbo generator inside the compound in
Port Harcourt. That will be an alternative
to the existing system.
This doesn’t sound too salutary an
alternative considering the issues we
have with gas, so how will it play out?
We don’t have that many issues with
gas because there is already a gas
pipeline that comes into the Port
Harcourt refinery. The volume of gas
required is something like for 30
Megawatts power generation, so it
won’t require that large volume of gas.
Already there is a pipeline taking gas
across that area and all we need is to
key into the refinery.
The interventions or programmes you
have mentioned so far appear to be
moving at snail speed, which is usually
the case with executing policies in
Nigeria?
The snail speed you’re talking about, let
me tell you that in engineering projects
you don’t just jump into it, you must
plan properly else, you’ll have problems
in implementation and that is what you
must avoid. If you want it to happen
today, it’s not going to happen. When
our consultants finish their work, then
you’ll know the proper time schedule.
We are looking at three elements in the
implementation. The first one is to
revamp the refineries the way they are
today in the immediate short term. We
look at the refineries, there are things
that need to be replaced, some cleaning
up and all that and we’ll do that. The
next stage is the upgrade; you’ll agree
with me that in the time we are talking
about 25-30 years that these refineries
have been there, technology has
changed, and if technology has moved
on, you need to also adapt to new
technologies. So we the upgrade
segment, after the initial revamping, you
have the upgrade and if subsequently
you want to expand these refineries,
you can go ahead and refine them.
These are some of the things that we
hope to do.
The first bit is to revamp the refineries,
clean them up, change the parts that are
rusty to make it more efficient, but it
remains the way it is. Then you go to
the upgrade side, this will increase the
efficiency because we are introducing
the latest technology in refining, then
the final stage is if we want to expand
the refineries. But we are not talking
about that now. These are the things we
plan to do and our schedule will address
the first part – revamping, and then
address the second one, and we take
them in stages like that.
In order to address this concern, can we
look at the time line, how soon do you
expect a feedback from your
consultants?
Let’s not look at my consultants because
what we have or the directive we have
from thee management – the minister
and government is that we will do the
Port Harcourt 1 for one year, the other
one we will do for two years. The Port
Harcourt 1 like I told you, we’ve already
ordered for the long lead items. I
personally went to Japan to speak to
some of those who manufacture these
components, so went to their offices
one by one. We spoke with them and
got agreement with them on when they
can bring them in. the actual bit of
during the time when they will actually
do the work on ground will be say
during a two month or three month
period. What you have is from now to
probably August-September will be for
the manufacture of spares and
equipment that we need and once they
arrive, the actual work of installation
and integration will commence
immediately.
We have been given one year and we
are trying to work within one year, but
the revamping bit, if we now need to
move ahead, then that is another
segment of the work. Our objective at
the end of the day is to achieve about
90 percent of the name plate capacity
for Port Harcourt and all other ones.
Today, Warri is the best that we have.
But you see, one of the problems we
have in Port Harcourt is that it is the new
Port Harcourt that we will address
during this phase. The old Port Harcourt
is really in totally bad shape and that
one will be included in a longer term
work and this will come in with the
upgrade because you have to really go
into it and do detail work in order to
upgrade it to a standard where it can
produce on the basis of the name plate
capacity.
For the purposes of clarity, the 90%
you’re looking at is for Port Harcourt 2,
the 150,000 barrels?
Yes, the 150,000 of the new Port
Harcourt. The old one has not been
functioning for a very long time,
therefore a lot more work needs to be
done there. Port Harcourt is doing 66%
as at yesterday. But you have to
understand also that the FCC – Fluid
Catalytic Cracking unit has not been
working because of power issue. So
once the power issue is solved, in fact,
they are trying to bring back the FCC
today.
A little more clarity, if you say the
refinery is doing about 66%, yet the FCC
is not working, how is that?
The explanation is that the CDU that is
the unit that brings in crude and when
refineries report their performance that
is what they report. The other units will
take input from the CDUs and other units
to function; the FCC gets it raw materials
from the VDU and then processes it. So
what the FCC does is to increase the
volume of PMS that you are producing.
But in reporting the 90% I am talking
about, is from the CDU, what the refinery
can take in at any particular time. So
now it is now our responsibility to
ensure that these other units function
optimally so that whatever is passed
into them is also processed.
In real terms, the refineries supposedly
get 450 000, barrels per day, what
volume of this are you able to process?
I’ve given you an average for all the
refineries, if you talk about an average
of 60%, it will be 60% of 450,000. But
this fluctuates because it is not that at
any particular point in time you have
just that same volume, it could be
higher, it depends on how the refineries
are functioning. But the issue with the
refineries in terms of the restrictions of
the crude you pass into it, is not because
the refineries are not functioning all the
time. There are other issues. There are
the issues of bringing in the crude,
sometimes, you are processing and the
crude line is broken. You process what
you have and if you finish processing
that, you have to wait.
In sum, when you are looking at the
average, you are doing lower than what
you expected to do, and that is what the
issue is. A lot of problems associated
with the refineries come with the
availability of crude.
Let us look at another level of the
problem, the limited authority in terms
of approval limits the managements of
the refineries enjoy are rather small, has
this been addressed?
That has been addressed. The federal
Government has changed the level of
financial authority for most of the
ministries, departments and agencies
and we have adopted that. Today, the
approval limit at the refinery is
substantially more than what it used to
be in the past. So I don’t see that as a
problem.
Given your explanations, it appears the
turn-around maintenance will take
longer than anticipated?
What we are doing is rehabilitation not
turn around. Rehabilitation is more of
TAM + because you have to do a lot
more. TAM is a routine thing, but this
time around, we are not talking about
the routine because when we should
have done Port Harcourt, we are talking
about several years back. Now we are
trying to do it and in addition to that, we
are talking about all the others like
power system, the de-bottlenecking of
the FCC.
When the Port Harcourt refinery was
built, it was originally designed at
100,000 p/d, then I think there was a
plan to build another refinery in Calabar,
but that one failed, so government
decided they should increase the Port
Harcourt to 150,000 barrels. But in
increasing it to 150, 000, the FCC unit
was not increased. Recall also that the
old Port Harcourt refinery was just a
topping refinery but it didn’t have FCC, it
had to also use the existing one. So you
have to de-bottleneck it this time
around. You have to increase its
capacity or you add another unit that
will handle it to increase the volume that
it has to take. So the work on ground is
beyond turn around maintenance.
Given these scenarios, from a layman’s
point of view is it not just better to build
new modular refineries?
No, I don’t agree. Having a modular
refinery will be very small and I don’t
see a company like NNPC going to have
smaller refineries. But if we refurbish
this one, we will do that at a cost that
what you will spend here cannot even
build one refinery. Do you know how
much it will cost you today to build a
refinery of this capacity? You’re talking
about a combined 445,000 bpd refinery;
it’s going to be a huge cost if you decide
to build new ones. Why don’t you spend
a fraction of the money you would have
used to build this one up, do the
technology upgrade. We have experts
who have looked at them and can do it.
We are also looking at the market, the
market in Nigeria today is different from
the market in Nigeria when some of
these refineries were built. Therefore,
the question is, when experts look at it,
am not saying that is what will be done,
but we can reconfigure the refineries to
produce more of the products desired in
this market than products that probably
we can’t handle.
Let’s take Kaduna for example, when it
was designed, it was designed to
produce asphalt, but how do we
evacuate it, have we been able to
successfully evacuate it. Yes, asphalt is
needed in the country but since we
have not been producing, have we not
been using asphalt in the country?
These are some of the things we have to
look at, we have to look at the market,
what does the market want? And we
must be able to address the issue. These
are some of the issues we are carrying
out studies on and we hope at the right
time we should be able to say we can do
this to the refineries or leave them the
way they are. But some of the will need
twitching here and there, and I gave the
example of the Port Harcourt Refinery.
I also want note the situation in Warri,
where there is a PC- Petrochemical plant,
it has not worked for over 12 years and
we hope that during this exercise we
will be able to bring it back to life
because it is also going to be a money
earner for us.
This brings us to a grave concern out
there, which is part of what has brought
the refineries to where they are today
with regard to the frequent policy shifts
in government and management. Won’t
you say the NNPC will be better off
partnering with the private sector for
greater efficiency and less interference
from government?
Let me first of all say that the policies
regarding refineries in Nigeria have
been very consistent in the sense that
there is hardly any government in
Nigeria that does not desire optimum
utilization of the capacity of the
refineries, it has always been the same.
They want the refineries to run well,
they want them produce at optimum
levels.
Once this is done you may say that in
implementation, there is scarcity of
funds because there are competing
needs in this country so if the funds are
not there and the money is not invested
at that time, we have this kind of
problems occurring. So talking about
policies, the policies have been very
consistent.
Secondly, am here today, am pursuing a
policy of rehabilitating the refineries to
make sure that the refineries are
working at least 90% of their capacities,
it is not just me but something being
driven by the management of the NNPC
and the government – the minister up to
the president. They desire it and want
this to happen. Why? From a selfish
point of view, if we don’t do it, then we
will b out of business tomorrow. If there
is deregulation tomorrow and we are
not able to do it we will be out of
business, if we continue to produce at a
higher cost, as an efficient organization,
we should be able to sell below my
costs; if I do that there will be no market
for me. In the long run, I won’t even be
able to refurbish my refineries, so these
are some of the things that happened
because the business structure was
really such that we’ve been selling below
costs with subsidies and all that, it
distorts the market and we are unable to
run a refinery in a business manner. And
that is what deregulation will probably
introduce and if we don’t do well, we’ll
just phase out. So it is very important
that we fix these refineries, from the
NNPC’s point of view and bring it to the
level where we are very competitive.
Then when you are talking about joint
ventures, I believe it is beyond me, it is
government’s decision on what they
want to do because they own the assets.
If they decide tomorrow that they want
to do it then they will.
Would you then say the NNPC and the
refineries are prepared for
deregulation?
That is what this programme is all about,
it is geared towards making the
refineries efficient and if the refineries
are efficient they will be able to compete
effectively in a deregulated
environment. For us to be competitive
and bring our refining costs to a level
comparable to refineries across the
world, then we should be able fix tem,
once this is done, the products prices
will be competitive as well.
You raised a critical point about costs of
your output; it’s contentious out there,
because there are arguments that since
the crude oil is here, the refineries here,
the cost of producing a litre of petrol is
relatively cheaper?
Let me explain that the way it is today,
PPMC buys the crude from government
at the international market price. It is
PPMC that sends this crude to the
refineries, the refineries process it for
the PPMC, which takes its products and
sends it to the market. For the refineries,
what they earn is the processing fees
from PPMC. That is the structure on
ground today.
But we are looking at a structure where
the refineries can buy their own crude,
process and sell. This is happening in
other places. I went to France to see
how they are organized. They have
what they call refining and marketing.
They process their crude and sell the
products. We are not running that today
and we are looking at it. This is what
was proposed in the PIB, where the
refineries will buy their own crude,
process it and sell to off-takers and that
is an option we are looking at.
So you find that PPMC also has a lot of
issues, lines are vandalized, they lose a
lot of the crude before it gets to the
refineries and same thing when the
products are produced before it gets to
the end users. They carry the burden of
these losses. If they eliminate these
vandalism and all, the costs will be lower.
I don’t know if this is still part of the PIB,
it was proposed that the refineries will
have a structure where they will become
refining and marketing companies and
take over most of the functions of the
PPMC and a new company will be
established to manage the pipelines
such that when you use the pipeline,
you pay a fee for it and it will be open
for all users.
So why were all these not done before
full deregulation?
The question has been asked that can
we survive deregulation. And the
answer is that the way we are today, no.
For us to survive we must look at how
can we make the refineries efficient. If
you look at manufacturing in Nigeria, it
is done at a very high cost, no matter
which sector you are looking at –m with
having to provide their own power and
other facilities and the refineries are not
an exception.
Earlier on we were talking about how to
give power the Port Harcourt refinery,
you can’t rely on PHCN for power you
have to build your own power plant and
when you do this and buy gas and
other inputs your costs will be higher
than the ordinary power supplied by
PHCN.
So for us to survive, we must move
away from our current production levels
of 60% and the fact that some of the
units downstream are not functioning
very effectively, so we must fix them. In
fixing them, it is not a one-day thing, it
is something that must be planned
properly – gathering data, doing
feasibility studies, scoping, doing the
design and all and at the end of the day
you are guaranteed the time when you
finish and you are also guaranteed your
costs.
But if you don’t do it very well, you are
bound to mid-way start to go here and
there, trying to solve problems that
should have been solved before you
started. This is what we are doing today,
engaging those who must work with us
and ensure that this thing works, those
who have done it before. By the initial
studies carried out, by March next year,
we must begin to see changes for Port
Harcourt. For the other refineries for the
ones the items that we need to order,
we have placed the orders so that by
the time the ground work begins we
have prepared everybody. We need also
to address the skills of the workers, such
that in upgrading the plants we are also
upgrading the skills of the people.
To this end we are planning to establish
a refining school where people both old
and new will be trained and gradually
over the years they will be going back
for retraining. It’s going to be hands on,
to sharpen their skills, and improve
health safety and environment
knowledge so that they won’t burn
down the refineries accidentally. Those
already there today, we need to give
them top up training, because when
people have been in a place for too long
there are certain behaviors they acquire
which are not right. You need to correct
that and you can only do that through
training and retraining. These are what
we are doing.
I also mentioned the supply chain as the
third element, if we don’t get the crude,
say you pass in 445.000 bpd to the
refineries and you lose 20% of this then
you are not efficient. So there are
integrity and security issues. Integrity in
the sense that are these facilities solid
and in good shape or because of old age
have lost their strength and therefore
can be burst anywhere and lose the
products passed through them.
The other is security, are we able to
secure the pipelines and whose
responsibilities are they? These ought to
be addressed and once this is done you
can be sure that when you pass in crude
and get 99.9% into the refineries, your
costs will be much, much lower. Same
thing if you’re sure that you don’t lose
your products, so the costs we are
talking about today will be reduced. All
these are parts of the costs that we
incur in product losses along the
pipelines.
What about local content input in all of
these?
While talking about the refineries I
mentioned all the contractors for the
various refineries, I believe Nigerian
content is also important. What we are
doing is that because these companies
built the refineries we decided that we
invite them back for the big project.
They know what it takes, they have the
designs. In fact, when I went to Japan I
met people who had fabricated some of
the components for Port Harcourt and
immediately they remembered and
brought out drawing for Port Harcourt
and gave to me. So that is the advantage
of taking these people.
So for the Nigerian content, we are
producing a list of local contractors who
are competent and who have been
working in these refineries and we are
going to ask them to sub-contract to
these international companies where
they have competence. This is one thing
we are consciously doing to promote
local content.
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