NNPCL, Dangote, others shift oil industry tussle to Senate panel – Newstrends
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NNPCL, Dangote, others shift oil industry tussle to Senate panel

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8 months ago

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NNPCL, Dangote, others shift oil industry tussle to Senate panel

Major stakeholders in Nigeria’s oil and gas industry on Wednesday vowed to speak up on the dirty deals, regulatory breaches and other malpractices in the sector that had defied solutions over years as the Senate opened another round of probe.

They demanded that the investigation should be conducted on live television broadcasts so that Nigerians would hear and know the truth about the happenings in the industry.

The stakeholders spoke during an interactive session with the Senate Ad-hoc Committee investigating “Alleged Economic Sabotage in the Nigerian Petroleum Industry”, particularly the importation of adulterated and substandard products into the country.

The committee, which is chaired by the Majority Leader of the Senate, Sen. Opeyemi Bamidele (APC, Ekiti-Central), will begin its full public hearing on September 10.

At a pre-hearing interactive session, it called on Wednesday, major stakeholders sought a transparent investigation to be conducted on live broadcast so that Nigerians would be well aware of the “misinformation” about the operations of the industry.

Among others, the probe will “seek to identify and hold accountable all parties involved in the importation and distribution of the adulterated petroleum products, especially Premium Motor Spirit and Automotive Gas Oil and such other acts that are detrimental to the operations of the petroleum industry.”

Bamidele, in an opening remark, said, “This includes suppliers, importers, regulatory bodies, and any other entity that may have contributed to lapses in the petroleum industry.

“We will conduct a thorough review of current regulatory frameworks and procedures to identify deficiencies and recommend necessary reforms to prevent such occurrences in the future.”

The Minister of State Petroleum (Oil), Sen. Heineken Lokpobiri; the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL); Mr Mele Kyari; the MD of the Nigerian Midstream & Downstream Petroleum Regulatory Commission (NMDPRA), Mr Farouk Ahmed; the MD of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Kololafe; Depot and Petroleum Products Marketers Association (DAPMAN); Independent Marketers Association of Nigeria (IPMAN); Dangote Refinery; and modular refiners, addressed the panel.

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It was a session where many of the stakeholders opposed the Dangote refinery, as speakers warned against the consequences of what they considered to be an emerging monopoly in the industry.

Lokpobiri, for example, promised to cooperate with the panel by supplying all the information to help it unearth the truth.

“We will fully cooperate and supply all the relevant information to address all the misinformation.

I will suggest that this investigation should be conducted on live television”, he stated.

Lokpobiri, who denied claims that the government was frustrating local investors, added, “We are also committed to supporting the Dangote refinery and modular refineries.”

Kyari, who spoke in the same vein, complained that he had been the target of all forms of attacks, including being called a criminal, and a thief.

He said, “We are faithful, loyal, and committed to the development of this country,”  adding that “We are not criminals and we are not thieves.”

Kyari made a reference to the row between regulatory agencies and the Dangote refinery over the latter’s allegation that its $ 19 billion investment was being frustrated, saying, “We have done nothing to sabotage any domestic refinery. But, there is a law that guides what we do.

“The law says that for crude oil, there must be a willing buyer and a willing seller. Go and check the Petroleum Industry Act, it is there.

Although Kyari admitted that there could be adulterated products in the country, he insisted that NNPCL was not to blame as the company did not man the borders or control smuggling, which he said was the role of the Nigeria Customs Service and security agencies.

“There are things we know that we won’t say, but we will say them during the public hearing. Let the public hearing be done on live broadcast,” he told the session.

On adulterated products, Kyari said, “NNPCL is not and cannot be responsible for the importation of substandard products. But, we know that smuggling of all sorts takes place, which is not caused by NNPCL.”

According to Kyari, vandalism of oil installations and product theft remain the biggest threats to the industry that need urgent solutions, or else serious investors will not risk their money.

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The representatives of DAPMAN, IPMAN and other local operators called for an operating environment that would be fair to all, including existing investors and new entrants like the Dangote refinery, as against handing over the industry to a monopoly.

However, the Group Strategy Officer, Dangote Refinery, Mr Aliyu Suleiman, expressed worries that the company did not get the expected support and backing from the government and regulators.

He raised three issues, “We would like to basically have three questions that we think we should look at, ask the committee, and also ask Nigerians.

“The first question is, do local refineries deserve protection from the government? The second question is, should Nigeria protect its infant industries in order to improve investment? And then the third question is, should local refineries have preferential access to Nigeria?.”

Aliyu went on, “Those really are the questions that we want this committee to consider. On the first one, as I have said, we produced five million tons of products, but of those 5 million tonnes, about 90% of them had to be exported. While at the same time, the products we were producing had been imported into Nigeria.

“We find ourselves competing against Russian products that were produced, that have been produced with oil that is valued at $60. We all know that because of the cap that has been put on Russian oil, the value of Russian oil today in the market is $60.

“And that’s what Russia is using to produce their products, and those products are being sent in large quantities into Africa to compete with products that are produced in refineries that buy proof at $90.

“We don’t think this will be a fair competitive environment and I think on that, even on that when you have such unfair competition, it is normal to put protective measures in place.”

He informed the panel that all the company had asked for was for the regulatory environment to support it, considering its huge investment in excess of $19 billion as part of the efforts to solve the domestic product supply challenges.

Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, confirmed that the government had yet to meet the 2024 budget’s crude oil target, though he gave assurances that everything was being done to achieve it.

Addressing the panel, the minister said while the government set a daily crude production target of 1.87 million barrels for the budget, it had so far achieved 1.6mbpd.

He stated that the government planned to surpass the budget’s target and achieve 2mbpd.

On oil prices, the minister said, “Outlook for oil prices is positive and we expect prices to remain stable.”

NNPCL, Dangote, others shift oil industry tussle to Senate panel

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Investigation of wanted businesswoman Achimugu not linked with Atiku, Sanwo-Olu – EFCC

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March 29, 2025

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Investigation of wanted businesswoman Achimugu not linked with Atiku, Sanwo-Olu – EFCC

The Economic and Financial Crimes Commission has reacted to media reports linking its investigations of Ms. Aisha Achimugu with political undercurrents involving former Vice President Atiku Abubakar and Lagos State Governor,  Babajide Sanwo-Olu

This is contained in a statement by the commission on Friday night.

The statement read, “We wish to state unequivocally that the investigations of Achimugu have no correlation of any kind with the two political actors.  She is being investigated for alleged criminal conspiracy and money laundering and has since been declared Wanted by the Commission”.

The EFCC started investigating Achimugu in 2022. Although she approached the court to obtain an injunction restraining the Commission from arresting, investigating, inviting or detaining her for any alleged criminal act,  the injunction was challenged and vacated on Wednesday, February 19, 2025 by a Federal High Court sitting in Abuja.

 The court ruled that “…no court has the power to stop the investigative powers of the Police or EFCC or any agency established under our laws to investigate crimes when there is reasonable suspicion of commission of a crime or ample evidence of commission of an offence by a suspect.”

“The court further upheld the interim order of forfeiture of assets of Achimugu suspected to be proceeds of crime, dismissing her suit against it as lacking  merit .

“The foregoing clearly establishes that the EFCC’s case against her has no immediate or remote nexus with any politician or any veiled or open reference to any political engagement or transaction.

“The EFCC is non-partisan and non-sectarian.  We enjoin the public to continue to keep faith with the professionalism of the Commission without imputing any extraneous consideration to its works.”

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Why governors’ forum is silent on Rivers emergency, by DG

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1 week ago

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March 23, 2025

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Why governors’ forum is silent on Rivers emergency, by DG

The Nigeria Governors’ Forum (NGF) yesterday attributed its neutral position on the recent declaration of a state of emergency in Rivers State to the need to steer clear of taking positions that may alienate members with varying political interests.

Taking positions on contentious partisan issues, the NGF said, would not augur well for it, especially in view of its past experience in fundamental division.

Notwithstanding, the declaration of the state of emergency by President Bola Tinubu yesterday generated more kudos and knocks from across the country.

Special Adviser to the President on Senate Matters, Senator Basheer Lado, said the action of the president was meant to ensure protection of lives and restoration of law and order in the state, while the President’s Special Adviser on Media and Public Communications, Sunday Dare, said his principal  was required  to “avert needless harm and destruction .”

National Publicity Secretary of the ruling All Progressives Congress (APC), Felix Morka, said Tinubu, by his action, cleared what had manifested as a constitutional crisis in Rivers state.

But former President Goodluck Jonathan saw it from a different perspective.

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He described “abuse of office and power by the three arms of government in the country“ as a dent on Nigeria’s image.

The NGF, in a statement by its Director General Abdulateef Shittu, said it is essentially “an umbrella body for sub-national governments to promote unified policy positions and collaborate with relevant stakeholders in pursuit of sustainable socio-economic growth and the well-being of the people.”

It added: “As a technical and policy hub comprising governors elected on different platforms, the body elects to steer clear of taking positions that may alienate members with varying political interests.

“In whatever language it is written, taking positions on contentious partisan issues would mean a poor sense of history — just a few years after the forum survived a fundamental division following political differences among its members.

“Regardless, the Forum is reputed for its bold positions on governance and general policy matters of profound consequences, such as wages, taxes, education and universal healthcare, among others.”

It asked for “the understanding of the public and the media, confident that appropriate platforms and crisis management mechanisms would take care of any such issues.”

Why governors’ forum is silent on Rivers emergency, by DG

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Rivers: Tinubu acted to save state, economy, says Karimi

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1 week ago

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March 22, 2025

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Chairman of the Senate Services Sunday Karimi

Rivers: Tinubu acted to save state, economy, says Karimi

Chairman of the Senate Services Sunday Karimi has hailed President Bola Tinubu for the decision to declare a state of emergency in Rivers State.

 He told reporters on Friday in Abuja that the President acted in the best interest of the State and Nigeria, having taken his decision in compliance with the Constitution.

“No President or government worth a name, will fold its arms and watch a political situation deteriorate to what we saw unfolding in Rivers State.

“We saw that bombing of pipelines had begun, and the security situation was getting worse with the tension everywhere”, Karimi stated.

Karimi, who represents Kogi-West on the ticket of the All Progressives Congress (APC), recalled the “fatherly role” Tinubu had played in the crisis since 2023 in a bid to get the Minister of the Federal Capital Territory (FCT), Nyesom Wike, and suspended Governor Siminalayi Fubara to reach an understanding, to no avail.

He explained: “We were all here in 2023 when Mr President called that truce meeting at the Aso Rock Villa. There was the eight-point agenda for settlement reached between the factions.

“When Nigerians expected that progress should be made to achieve peace, things started deteriorating considerably to a point where the governor demolished the House of Assembly building and administered the state with only three legislators.”

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Karimi observed that with the recent judgment of the Supreme Court, which gave the upper hand to the 27 lawmakers loyal to the camp of the FCT Minister, matters merely got worse in the State as the lawmakers were set to impeach the Governor.

“What did you expect would be the implications? There would have been more destruction, killings and economic losses for the country.

“With the bombings that had already started, it was a matter of time before the whole state would be engulfed in flames. No responsible President would sit, arms folded, and allow that to happen “ he added.

The senator further argued that it took “painstaking efforts” by the administration to raise daily crude oil production to around 1,800 barrels, noting that Nigeria’s economy was already “witnessing a rebound under the renewed hope projects of the government.”

“Allowing the situation in Rivers to get worse before he would act, wouldn’t have helped the state or Nigeria as a country in any way.

“Mr. President intervened at the right time, and his actions are covered by law,” he said.

Karimi also spoke on the emergency declaration  in Borno, Yobe, Adamawa and a couple of other states by former President Goodluck Jonathan without removing the Governors from office or suspending the state assemblies.

According to him, the case with those States was not generated by political crises but rather security concerns.

“So, I will advise those comparing the two scenarios to remember that one was purely about security threats resulting from the insurgency caused by Boko Haram, while that of Rivers is clearly political.

“It was the proper thing to do to suspend the political actors in the two factions to allow for tensions to diffuse. Nigerians should appreciate the President for the action he has taken so far,” he stated.

Sen. Karimi also noted that there was no cause for alarm as the National Assembly had indicated that the emergency rule could be reviewed as soon as there were signs that things could quickly normalise in Rivers State.

 

Rivers: Tinubu acted to save state, economy, says Karimi

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