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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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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Tinubu extremely wealthy, can’t loot Nigeria’s treasury, says minister

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September 16, 2024

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President Bola Ahmed Tinubu

Tinubu extremely wealthy, can’t loot Nigeria’s treasury, says minister

The Minister of State for Youth Development, Ayodele Olawande, has described President Bola Tinubu as an epitome of wealth with no interest to loot Nigeria’s resources.

Olawande stated this while speaking at the Joint Union Negotiating Council’s week of the Federal Ministry of Youth Development branch in Abuja.

The minister also appealed to Nigerians to be patient with the president, noting that in no distant time there will be positive changes.

He said, “I urge you to be patient with this administration. In no distant time, the country will take good shape and the lives of the citizens will be transformed.

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“President Bola Ahmed Tinubu is not a pauper; he is an acknowledged epitome of wealth and so it cannot be said of him that he desires to loot the treasury of Nigeria.”

Olawande continued, “He has seen money and as a result of this, he is not interested in looting the nation’s treasury.”

He emphasized that the administration is putting in efforts to transform the lives of Nigerians through various policies of the federal government.

Olawande thanked the staff of the ministry for being supportive of the government policies and assured them that their welfare will not be compromised.

Tinubu extremely wealthy, can’t loot Nigeria’s treasury, says minister

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BREAKING: Nigeria’s inflation rate slows for second consecutive month to 32.15% – NBS

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September 16, 2024

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BREAKING: Nigeria’s inflation rate slows for second consecutive month to 32.15% – NBS

Nigeria’s headline inflation rate eased to 32.15% in August 2024 down from the 33.40% recorded in July 2024, reflecting a decrease of 1.25 percentage points.

This represents the second consecutive monthly slowdown in inflation after easing in the previous month.

This is according to the Consumer Price Index (CPI) report published by the National Bureau of Statistics (NBS).

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However, on a year-on-year basis, the August 2024 inflation rate was 6.35 percentage points higher than the 25.80% rate recorded in August 2023, indicating a significant increase over the past year.

On a month-on-month basis, the inflation rate in August 2024 stood at 2.22%, slightly lower than July’s rate of 2.28%, signaling a slower pace in the increase of the average price level compared to the previous month.

BREAKING: Nigeria’s inflation rate slows for second consecutive month to 32.15% – NBS

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Edo poll: Six persons arrested in Benin hotel with fake PDP letterheads, forged signatures

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12 hours ago

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September 16, 2024

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Edo poll: Six persons arrested in Benin hotel with fake PDP letterheads, forged signatures

Operatives of the Nigeria Police Force have arrested six young men in a hotel located in the Government Reserved Area (GRA) of Benin City with fake letterheads, stamps, and forged signatures belonging to the Peoples Democratic Party (PDP) and its chieftains.

The young men, who were apprehended with incriminating materials such as printers, mobile phones, power banks, laptops, and a photocopy machine, are believed to have been involved in drafting and circulating fake PDP letters and statements.

Their objective was to paint the PDP as instigators of unrest ahead of the forthcoming Edo governorship election, scheduled for Saturday, September 21, 2024.

The arrest, which was made following a tip-off, uncovered an elaborate scheme allegedly designed to discredit the PDP and its leaders by sending fabricated documents to unsuspecting journalists.

These fake letters and statements, according to police sources, were intended to portray the party as warmongers and troublemakers in the run-up to the critical election.

A police officer involved in the operation, who asked to remain anonymous, revealed that the suspects had been using the hotel as their base of operations for weeks.

“We found that these individuals were using forged PDP letterheads, stamps, and signatures to create fake documents.

“Their goal was to send out these documents to journalists in an attempt to misrepresent the PDP and create an atmosphere of tension ahead of the elections,” the officer said.

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In addition to the counterfeit materials, the police discovered that the young men had several technological devices, including laptops and printers, which they used to produce and disseminate the fraudulent documents.

“Their setup was sophisticated. They had everything they needed to make the documents appear legitimate, from forged letterheads to printers.

“We also found power banks, mobile phones, and a photocopy machine, which they used to mass-produce the fake letters,” the officer added.

Further investigation has revealed that the six young men were funded by a chieftain of the All Progressives Congress (APC) in the state.

Meanwhile, another police source disclosed that the Nigeria Police Force, Edo State Command, has come under intense pressure from senior APC figures, who are reportedly pushing for the release of the arrested men.

“Since the arrest, there has been immense pressure on us from certain chieftains within the APC, urging the command to release these individuals.

“We believe that their involvement with these young men is being covered up, and they are worried about the potential fallout from this arrest,” the source noted.

A journalist with one of the prominent national newspapers, who had been unknowingly receiving fake statements from the group, expressed shock upon hearing about the arrests.

“It’s alarming to think that we’ve been receiving statements from people who were impersonating the PDP. This shows how low some people will go to try and sabotage the other party. The integrity of this election is now under serious question,” the journalist stated.

The Edo State Police Command has yet to issue an official statement on the matter, but sources within the command say investigations are ongoing, and the suspects remain in custody.

Edo poll: Six persons arrested in Benin hotel with fake PDP letterheads, forged signatures

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