On Saturday the 4th of February at 1930hrs, fighters of the Movement for the Emancipation of the Niger Delta (M.E.N.D) attacked and destroyed the Agip trunk line at brass in Bayelsa State in the Niger Delta region of Nigeria. This relatively insignificant attack is a reminder of our presence in the creeks of the Niger Delta and a sign of things to come.
We have constantly warned Nigerians about Goodluck Jonathan and his train of idiots running Nigeria. Events of the last few months have vindicated our position on the inability of this moron to lead Nigeria anywhere but downwards.
Rather than address serious issues facing the nation and its citizens, Goodluck Jonathan squanders public funds on tribalistic sycophants and thugs calling themselves ex-militants.
Nigerians should disregard the idle threats and ranting of imaginary militant groups and other hired “Jonathan praise singers”. Besides empty talk, they are unable to help Jonathan in any way. In fact most so called ex-militants are hiding in Abuja or Lagos, not venturing near their villages in the Niger Delta.
Our silence thus far, has been strategic and at the right time, we will reduce Nigerian oil production to zero and drive off our land, thieving oil companies. British petroleum is prepared to pay $25 billion compensation for the Gulf of Mexico oil spillage, yet for worse spillages in the Niger Delta; our people are paid with death at the hands of the Nigerian military.
In the dark days to come, MTN, SACOIL, and other South African investments will pay a heavy price for the interference of Jacob Zuma in the legitimate fight for justice in the Niger Delta, by its people. The South African President has reduced himself to the position of a hired thug for Goodluck Jonathan.
The Movement for the Emancipation of the Niger Delta (M.E.N.D) understands the negative impact our assault on the Nigerian oil industry will have on the ordinary citizen in a country which relies almost entirely on one source of revenue.
Unfortunately, the extremely irresponsible, floundering government of Nigeria is more concerned with enriching themselves and family members than attending to the problems of the Niger Delta and the continuously depreciating standard of living of the ordinary Nigerian.
A government incapable of managing roads, refineries, power stations and other basic infrastructure is again squandering valuable public funds on a committee tasked with investigating the viability of nuclear energy for electricity generation.
The government of Nigeria is incapable of safely disposing household refuse. How then do they plan to deal with the toxic by-product of nuclear energy? Nigerians must know that their ignoramus of a president is controlled by Obasanjo, Western nations, an imbecilic wife and an army of sorcerers.
In this new phase of our struggle for justice, the Movement for the Emancipation of the Niger Delta (M.E.N.D) will pay considerable attention to dealing with security forces and traitorous indigenes of the Niger Delta.
In this regard, MEND wishes to confirm that our fighters were responsible on the attack at Ogbobagbene in Burutu local government area of Delta State, on the compound of Godsday Orubebe, Minister for Niger Delta.
The general public is again advised to take very seriously, any warnings of impending bombings. Such warnings will always precede a bombing, providing sufficient time for evacuation.
Specific members of the security services and the media will in addition to email, receive notification of an impending attack, by SMS in order to minimize the possibility of civilian casualties.
(Reuters) – Defense Secretary Leon Panetta believes there is a growing possibility Israel will attack Iranas early as April to stop Tehran from building a nuclear bomb, U.S. media reported on Thursday.
The Washington Post first reported that Panetta was concerned about the increased likelihood Israel would launch an attack over the next few months. CNN said it confirmed the report, citing a senior Obama administration official, who declined to be identified.
“Panetta believes there is a strong likelihood that Israel will strike Iran in April, May or June – before Iran enters what Israelis described as a ‘zone of immunity’ to commence building a nuclear bomb,” Washington Post columnist David Ignatius wrote.
“Very soon, the Israelis fear, the Iranians will have stored enough enriched uranium in deep underground facilities to make a weapon – and only the United States could then stop them militarily,” Ignatius wrote.
Ignatius did not cite a source. He was writing from Brussels where Panetta was attending a NATO defense ministers’ meeting.
Panetta and the Pentagon both declined comment on the Post report.
Israel, widely believed to possess the Middle East’s only nuclear arsenal, views Iran’s uranium enrichment projects as a major threat and has not ruled out the use of military force to prevent Tehran from acquiring nuclear weapons.
Iran says its nuclear program is solely for peaceful purposes.
The Post article said the postponement of a joint U.S.-Israeli military exercise that had been scheduled for this spring may have signaled the prospect of an Israeli attack soon.
Washington and the European Union imposed tighter sanctions on Iran in recent weeks in a drive to force Tehran to provide more information on its nuclear program.
Iran has said repeatedly it could close the vital Strait of Hormuz shipping lane if sanctions succeed in preventing it from exporting crude, a move Washington said it would not tolerate.
Israel’s military intelligence chief said on Thursday he estimated that Iran could make four atomic bombs by further enriching uranium it had already stockpiled, and could produce its first bomb within a year of deciding to build one.
But in his rare public remarks, Major-General Aviv Kochavi held out the possibility that stronger international sanctions might dissuade Tehran from pursuing a policy he had no doubt was aimed at developing nuclear weapons.
Israeli Defense Minister Ehud Barak said separately that “if sanctions don’t achieve the desired goal of stopping (Iran’s) military nuclear program, there will be a need to consider taking action.”
The Action Congress of Nigeria (ACN) has called for fresh governorship
election in Kogi State, saying the December election conducted into
the office of Governor in Kogi is null and void, having contravened
the provision of Section 178(2) of the 1999 Constitution (as amended),
based on the recent Supreme Court ruling on tenure elongation.
In a statement issued in Lagos on Sunday by its National Publicity
Secretary, Alhaji Lai Mohammed, the party said neither the Peoples
Democratic Party (PDP) nor Capt. Idris Wada, its candidate in that
election, can therefore take any benefit or right from the election.
”The election into the office of Governor in Kogi State ought to have
been conducted in April 2011 in accordance with Section 30 of
Electoral Act 2010 (as Amended). Since this was note done, December’s
election cannot be said to have complied with the stipulations of the
Act and the Constitution,” it said.
ACN said Section 178 (2) of the 1999 Constitution (as amended) states
that ”An election into the office of Governor of a State shall be
held on a date not earlier than 60 days and not later than 30 days
before the expiration of the term of office of the last holder of that
office.”
The party said the Supreme Court has now held that the tenure of the
incumbent of governor of Kogi expired in May 2011 and that the seat of
governor had become vacant, even though no election was conducted
before the expiration of that tenure contrary to Section 178(2) of the
Constitution.
It blamed INEC partly for the confusion that has now occurred in the
state, in which two persons are claiming the governorship seat in the
wake of the Supreme Court ruling.
”Though INEC issued a notice of election within the prescribed time
sometime in January 2011, the election was conducted on December 3rd
2011, a period of six months after the expiration of the term of the
last holder of the office.
”The election, however, cannot be deemed valid and constitutional,
since an act or event will be valid and constitutional if it is done
in accordance with the laid down procedure or law. That’s why the
Supreme Court succinctly held, per Tobi J.S.C., in the case of the
removal of Senator Ladoja as Governor of Oyo state by the State House
of Assembly, thus: ‘It is good law that where the Constitution or a
statute provides for a pre-condition to the attainment of a articular
situation, the pre-condition must be fulfilled or satisfied before the
particular situation will be said to have been attained reached’,” ACN
said.
The party said if INEC had lived up to its responsibility, it would
not have proceeded to organize December’s election, especially as it
had appealed the case on tenure elongation to the Supreme Court,
following rulings by a Federal High Court and the Court of Appeal in
favour of then Gov. Abubakar Idris. INEC should have shown more
diligence in pursuing the appeal at the apex court, instead of rushing
to commit what has now turned out to be an illegality.
”Allowing people to occupy elective posts illegally – the hallmark of
PDP since 1999 – is the biggest form of corruption. INEC, in
shamelessly encouraging this trend in Kogi by organizing December’s
election, is encouraging corruption of the highest order. Worse still,
by its bizarre decision upholding the election of Capt. Idris Wada,
instead of seeking the input of its legal department to advise it on
the appropriate course of action, or in the alternative to approach a
High Court to seek interpretation of the Supreme Court ruling, INEC
has shown it is ever willing to go along with the lawless PDP in
seeking a political situation to what is purely a legal and
Constitutional issue, as if the electoral body is a member of the
dysfunctional PDP family,” ACN said.
It said the options open to the electoral body now is to go ahead and
carry out a fresh election, to be contested only by the candidates
whose names were submitted by their various political parties in
January 2011, when INEC issued the original notice of election.
”The election conducted into the office of Governor of Kogi State in
December 2011 is a patent violation and breach of section 178(2) of
the Constitution. It is an abuse of the society and the entire
citizens of the state are the victims and sufferer. The citizens of
Kogi State therefore deserve good governance premised on rule of
law,” ACN said.
President Goodluck Ebele Jonathan heartily congratulates Admiral Murtala Nyako (rtd.) of the Peoples Democratic Party (PDP) on his victory in Saturday’s governorship election in Adamawa state.
President Jonathan urges Admiral Nyako to receive the fresh mandate given to him by the people of Adamawa State for a second term in office as a call to further duty in the service of his people and an immense opportunity to carry forward the policies, projects and programmes initiated during his first term to promote progress and development in Adamawa State.
The President looks forward to continuing to work harmoniously with Admiral Nyako and the government of Adamawa State on the implementation of the federal government’s agenda for national transformation.
He commends PDP National Executive Council members, members of the state executive of the party and all stakeholders of the party in Adamawa for working very hard to ensure that Admiral Nyako won convincingly on Saturday.
President Jonathan also congratulates the Independent National Electoral Commission (INEC) and the nation’s security agencies for the peaceful and successful conduct of the elections.
He urges them to keep up the good work in other governorship elections scheduled to hold in Bayelsa State, Cross River State and Sokoto State this month.
The Jibrin Isah Campaign Organisation views with utter dismay , statements credited to the Chairman of the Independent National Electoral Commission (INEC) on the political logjam in Kogi State. Rather than seek the correct interpretation of the Supreme Court’s verdict in a competent court of law, Professor Attahiru Jega audaciously arrogated to himself the powers of the court when, with an air of finality and impunity, ‘directed’ that captain Idris Wada be “immediately sworn in as the governor of Kogi State.
By this statement, Jega confirmed to Nigerians and the international Community, perhaps unwittingly, that he was an apologist of the Peoples Democratic Party and that he was a man ever willing to do the bidding of his appointors. It is disheartening, therefore, to see an Institution that is financed by the Nigerian People to assail and flagrantly treat the constitution of Nigeria with disdain as well as arrogate to itself the powers of the apex Constitutional Court in the land.
The Pertinent question is: What is INEC attempting to hide? Whose interest(s) is INEC trying to protect? We assert, very strongly, that it is not the desire of the Nigerian People, to whom Sovereignty belongs. We are shocked that the judgement of a constitutionally recognized and well constituted authority like the Supreme Court which was written in plain English language could be misinterpreted and flagrantly violated for alleged selfish purposes.
Jega and his INEC should know that, an electoral umpire is expected to be impartial unto death. He is like a judge, required to do justice and be fair to all concerned. He is a referee, expected to apply the rules and respect the rights of all parties.. He is the co-ordinator of an orchestra expected to ensure the best performance of the ensemble. Now that it is obvious that the judiciary has performed its duty honestly and diligently, we urge the authorities responsible for the implementation of such a landmark judgment to ensure that the orders of the Apex Court are put into action and obeyed by all.
Therefore, we strongly call on the Federal Government and all lovers of democracy to initiate legitimate moves that will uphold the rule of law, sustenance of peace and fuller lives in our communities in Kogi State. As a disciplined campaign organisation, we believe that the Courts remain the bastion of hope in the defense of the rights of the oppressed; and it is traitorous when an institution, financed from our collective patrimony and purportedly in collusion with the terrestrial powers, impugns the authority of our Judiciary,particularly our very esteemed SUPREME COURT.
We remain calm that irrespective of the odious proclivities of institutionalized impunity in the land, Justice shall be done in this matter.
New information recently made available to 247ureports.com through a principal source close to the affairs of the presidency indicates that the debacle of oil subsidy removal by the federal government of Nigeria may have untold and potentially disturbing intricacies that resulted to the new year’s day abrupt increase in petrol price from N65 per liter to N141 per liter by the President of the federal republic of Nigeria, Dr. Goodluck Ebelemi Jonathan. According to the source, the intricacies points directly to the uncanny grip of the Petroleum Resources Minister, Diezani Alison Madueke, on the affairs of the executive arm of the federal government of Nigeria via her ‘sedation of the President’.
As gathered, the activities at the Presidency prior to the said removal of the fuel subsidy or the abrupt hike in petrol price, the President of the federal republic of Nigeria was reported to be in the dark regarding the details of the subsidy regime. The source notes that the President, following the coming of Diezani Alison Madueke as the Minister of Petroleum Resources, had turned over virtually the entire management of the administration and policy implementation regime to the Petroleum Resources Minister. The Petroleum Resources Minister who shares a long personal history with the President dating to the days when the President served as a Commissioner in Bayelsa State – was said to have piloted and supervised the quantum leap in fuel subsidy claims from N245billion to N1.8trillion submitted by marketers during a period which coincided with the fund raising phase of Jonathan 2011 presidential campaign. The Petroleum Resources Minister was also reported to have piloted the fuel subsidy removal project. The source adds the President “followed her lead” in all issues concerning fuel subsidy claims, payment and removal without questions.
The elbow room given to the petroleum minister in turn emboldened her into the formation of a tightly knitted cabal within the Nigerian National Petroleum Corporation [NNPC]. The cabal headed by the General Managing Director of the NNPC, Mr. Augustine O. Oniwon administered for the Petroleum Minister many “shady” deals within Nigerian oil sector. The NNPC boss has managed to execute “significant number of deals” together with the Petroleum Minister – so much so that he has become “too difficult” to replace or remove from his current position “because he knows too much”. The source explains that the NNPC boss has employed the services of several Harvard trained Nigerian administrators who have returned to Nigeria to work with Oniwon to ensure the books are “in order” against the ongoing audit/inquiry. It is understood that Oniwon holds the key to unlocking the myriad of corrupt practices at the Petroleum Ministry. And interestingly, the President is said to aware.
But the President’s arms mysteriously appear tied towards sanitizing the NNPC and the shady practices at the Petroleum Ministry. Sources within the NNPC point to the long history between the President and the Petroleum Minister as the reason for the President’s inactions while even more credible source within Aso Rock who personally meets with the president twice a week, point to “diabolic forces” as responsible for the president’s inability to act amidst glaring and embarrassing evidence of financial impropriety. The source disclosed that the President as result appears “overwhelmed” and may have begun to crack. “He sometimes talks to himself now” said the source who also added that “once he called Sambo’s name and was talking to him but Sambo was not there”. The source pointed to the President’s recent reduction in body weight as indicative of symptoms of stress induced exhaustion.
The President’s wife, Mrs. Patience Jonathan is reportedly uneasy with the unfolding development. But our source notes that the 1st lady also appears handicapped largely because of the Petroleum Minister’s overwhelming access to financial resources – which the 1st lady is reported to not have access to. The 1st lady has made many lost efforts at impressing on her husband to consider “clipping the wings” of the Petroleum Minister – instead the President appear to hand more responsibilities to the Petroleum Minister.
This is as the Petroleum Minister could not state to the House of Representative Committee investigating the oil subsidy funds management –the amount of petrol produced out of the various Nigerian refineries – nor could she state the amount of petrol ‘actually’ consumed locally in Nigeria.
With the Petroleum Minister not knowing the petrol volumes of what Nigeria pays subsidy on [for the petrol refined in Nigeria refineries and those imported for local usage] – in tandem with the fact that the Petroleum Ministry deducts her monies for oil subsidy payment before Nigeria’s oil revenue is paid into the federation accounts – begs the question why the President retains the Petroleum Minister – and perhaps why the Petroleum Minister holds the President hostage?
In light of the recent fuel subsidy crisis in Nigeria which almost
derailed our fragile Democracy and its continuous aftershocks, Eket
Development Congress USA Inc. (EDC) has decided to add its voice to those
of millions of Nigerians who believe that the solution to the subsidy
issue is within our power to ameliorate. The Federal Government and the
Akwa Ibom State Government in particular should seize this golden
opportunity to jump start talks with Amakpe Refinery, a Project with
benefits that would extend beyond the shores of Nigeria.
Like many Nigerians of different works, EDC is at a loss as to why the 8th
largest producer of Crude Oil in the world, Nigeria, is unable or
unwilling to refine adequate fuel for at least local consumption? Why do
we have to subsidize fuel imported from outside the country when we can
refine enough within the borders of Nigeria? Many have argued that it is
not profitable to refine locally as long as we are subsidizing imported
fuel, if we as Nigerians know what the problem is, why are we not willing
to fix it by creating the environment to promote the establishment of more
local refineries.
EDC notes with interest Governor Akpabio’s recent statement in which he
expressed his support for the removal of the subsidy, and maintained that
the subsidy was applicable to fuel imports, and therefore had no potential
to generate employment, or add to the country’s gross domestic product.
The Governor was also quoted as saying that rather than subsidizing
consumption, the government should subsidize production, pointing out that
under the subsidy, those who ran refineries were not eligible for subsidy
but were expected to sell at the regulated price, while those importing
fuel were benefiting from the subsidy.
Given the above comments and recent pronouncements by the government of
Akwa Ibom State, led by Governor Godswill Akpabio, to release the sum of
one billion dollars for the industrialization of the state that has
prompted EDC to assume that Governor Akpabio would fully support an
immediate commencement of talks with the Amakpe Refinery promoters with
the aim of finding a lasting solution to the impasse.
The Amakpe Refinery Project requires the sum of $30 million to fund the
pending receivables and construction costs to complete full implementation
at the Project site in Eket, Akwa Ibom State, and will start-up production
and be operational within six months of shipment of the completely
fabricated Refinery Equipment. Implementation of the Amakpe Refinery
Project will create over 1,000 direct jobs and about 5,000 indirect jobs
in the restive Niger Delta of Nigeria which would go a long way in
assisting the Federal Government Militancy Rehabilitation Program. Within
a few years of operation, the 6,000 BPD Amakpe Refinery will increase
its refining capacity through 12,000BPD to 50,000 BPD, and would create
over 3,000 direct jobs and 20,000 indirect jobs, with the ability to
reduce militancy and kidnappings in the Niger Delta Region .
Furthermore, the development will support the genuine efforts of the
Federal Government of Nigeria aimed at increasing local crude oil refining
capacity and making Nigeria Energy independent, which will help to address
the problem of Fuel subsidy.
Prayers:
EDC is requesting Your Excellency, Governor Godswill Akpabio to note the
urgent importance of the Project towards your Industrialization program in
Akwa Ibom State and by extension, Nigeria’s economic growth and
development and;
(a) Intervene in the seeming misunderstanding between the Primary
Promoters and the Akwa Ibom State Government.
(b) Facilitate the approval of a US$30 million loan request made by
Sterling Bank to the Bank of Industry (“BOI”) to support the completion of
the Project; and
(c) Encourage the Federal Government to grant Amakpe Refinery Project the
benefit from the Department of Petroleum Resources Fiscal Incentives for
development of Private Refineries.
EDC urges Akwa Ibom State government to reconsider its position in the
interest of the overall good of our citizens, as it strives to create
gainful employment for the citizens of Akwa Ibom State in particular and
Nigeria in general. EDC also urges both parties to enter into good faith
negotiations and find a way out of the quagmire. We believe that the
Government of Akwa Ibom State as a “senior member” of our society should
invite the Amakpe Promoters for talks in the interest of our State and for
the benefit of all.
We thank you and we look forward to your commissioning of the Amakpe
Refinery Project in the very near future.
Margaret Itauma Nwaessien Essien
National President National Secretary
Eket Development Congress USA Inc
—
EKET DEVELOPMENT CONGRESS (USA) INC.
PO Box 540106, Houston Texas USA 77254 Http://www.eketusa.org/
1. Fuel Subsidy The Fuel Subsidy issue rears its head into our polity as a canker-worm poised to destabilize the country if not handled with care, utmost patriotism and wisdom.
Nigeria may have been loosely constituted in origin and content but we owe it as duty to ourselves, probity and future generation to diminish our differences and enhance and harness our collective strength to forge a greater nation like the America have done. To achieve this unity of purpose, mutual trust for one another individually, ethnically and between government and the governed is a sine qua non. To do this we need a government that listens to the yearnings of the people and have the aspiration of the people at heart. This builds mutual trust. This mutual trust is a veritable catalyst that endears the public to government policies and make them acceptable to the people. I must say without equivocation that the crust of this Fuel Subsidy debacle is Mistrust of government by the people. People feel government is not being Truthful to them in many fronts. Truth they say heals all wounds.
As an individual who has spent most of his life actively in the oil industry as a worker both internationally and nationally, and now as a consultant, my civic responsibility and morality compelled me to enlighten the Nigerian public on this issue with a view to having a better understanding of the topic, know the benefits and may to provide a better understanding for government position.
The Fuel Subsidy Since petroleum and its products are international the analysis will be carried out on the following conversions so that other scholars can verify. 1 barrel of Liquid petroleum and its products = 168 liters Conversion rate of Naira to the dollar = N160/$ Government Sources put cost of imported PMS to this country as follows; Landing Cost of PMS = N138/liter = $0.863/liter = $3.45/gal Sales Price = N65/liter Subsidy = N73/liter
An investigation of PMS prices on the globe as at today reveals these present cost of PMS 1. Uruguay = $5.75 = N230/liter – without subsidies
2. USA that uses the same crude oil from Qua Iboe Crude Terminal in Nigeria in New York, USA, =$3.52/gallon = N140.8/liter – without subsidies 3. Liberia =$4.05 =N162/liter – without subsidies 4. Sierra Leone =$3.56 =N142.4/liter without subsidies 5. In Saudi Arabia =$0.38 = N15.2 with heavy subsidies 6. Venezuela it =$0.12 = N4.8 with heavy subsidies Other countries of the world fall within this range.
Now what is the cost of production of a liter of petrol 2. Products from Refining 1 barrel of Oil
2.1 First of all refined products from a Nigerian barrel of crude oil include the following LPG = 4 gallons =16 liters PMS = 19.5 gallons = 78 liters Diesel = 10 gallons =40 liters Jet fuel/Kerosene = 4 gallons =16liters Fuel Oil = 2.5 gallons =10 liters Bottoms = 5 gallons = 20 liter Total = 45 gallons =180 liters Note that the Increase in volume from 42 to45 gallons is due the expansion of the thick crude to lighter components.
2.2 Variables Cost involved in Refining this Petrol in USA Since the NNPC is yet to give us the production cost, we will use the USA refining cost of the Nigerian Qua Iboe Crude as basis in the first instance. Crude Oil 60 – 70% – 1 barrel = $107 = N17,120/168 = N101.9/liter Refining Cost and Profit = 6 – 10% = $10.7 = = N10.19/liter Refining Cost Total = N111.19/liter
The range on the percentages above are as a result changes in compositions of different crude. However for this analysis I have chosen to take the upper limit. In addition, the refining process in the USA uses the same Fluid Catalytic Cracking(FCC) process as we have here in our refineries.
2.3 DISTRIBUTION COSTS = N2.42/liter Getting it to Petrol Station by Nigeria Regulation
2.3 MARKETING COSTS = N5.87 Margin allowed for Oil marketing Fuel Retail Stations by Nigeria regulation. 2.4 Total Cost of Producing liter of Petrol(2.1+2.2+2.3) = N119.48
Note that the transportation cost per liter from USA is not incorporated as it is quite minimal. But I guess this and other incidentals are what government built into it to have its N138/liter
Now what should be the true production cost of petrol in Nigeria?
3. True Cost of Production in Nigeria However if this same production process were to be made 100% Nigerian the analysis reveals the following 3.1 Crude Oil Production cost Exploration Cost $0.025,bbl = N0.026 Development Cost $5.0/bbl = N4.76 = N3.43 Operations Cost (OPEX) $3.0/bbl = N3.15 Total of Producing oil $8.025/bbl = N7.64/liter
This is the cost a barrel of Qua Iboe crude will take to gets to the refinery gate in Port Harcourt. It is mind bugling when one compares this to N101.9/liter in getting to USA that we used in our analysis in 2 above
3.2 Production of PMS Liter in Nigeria With our refineries using our produced crude oil analysis goes as follows: Crude = N7.64 Refining + Profit = N10.19* Distribution = N2.43 Marketing = N5.87 Sub Total = N26.13 Tax(estimated at 20%) = N5.226 Total = N31.356/liter *Please note that the Refining + Profit cost is higher than the crude cost which is unusual but this is understandable when we consider the fact that crude oil production cost is about the cheapest in the world in Nigeria. Furthermore, this cost has been imported here from the USA since we cannot get it from NNPC. This cost actually is bound to be high considering labour cost in USA that is more or less three(3) times that of Nigeria.
By my honest judgment this is what makes economic sense. It is trite and an insult to our collective technical intelligence to continue compelling Nigerians to cost production of a liter of petrol starting with its imported land price from Europe as a bench mark.
Consequent upon the foregoing, PMS in Nigeria at N65 liter has a net profit of 107.297% or N33.644. Therefore it is only a misconstrued or misdirected economic principle that can give validity to any subsidy in the present price of PMS at N65 in Nigeria.
Secondly, the installed refining capacity of our refineries in Nigeria stands at 445,000 Barrels per day (BPD) operating at 91.5%. This is made up of: 1. Old Port Harcourt Refinery – 60,000 BPD 2. New Port Harcourt Refinery – 150,000 BPD 3. Warri Refinery – 125,000 BPD (Upgraded from 100) 4. Kaduna Refinery – 110,000 BPD (Two trains, 60+50)
Unfortunately these refineries have been operating at 38.2% capacity which translates to about 170,000 barrels per day which will give us 13,259,220 liters of petrol per day, 6,800,000 liters of diesel and 2,720,000 liters of kerosene/jet fuel. However, the Minister of Petroleum Resources has just given an upward figure of 60%. Even at that, this cannot meet our internal national demand. So, the government sends the remaining of our non-export crude oil volume of 275000 barrels per day to be refined abroad and import the petroleum products back into the country.
This involves payment for shipping and refining cost. The Nigerian government exchanges the 275000 barrels per day with commodity traders (90000 barrels per day to Duke Oil, 60000 barrels per day to Trafigura (Puma Energy), 60000 barrels per day to Societe Ivoirienne de Raffinage (SIR) in Abidjan, Ivory Coast and 65000 barrels per day to unknown sources) in a swap deal.
Lastly we must remind ourselves that this 275,000 barrels is the people’s, the Niger Delta’s people divine and naturally given resource which by some reverse of fortune has been taken by government in the name of national interest. It is NOT government property per se. That is another kettle of tea BUT what is wrong in using it to alleviate the suffering of the people and improving their livelihood? In other nations of the world where ownership of this resource is entrusted with government such as Venezuela and Saudi Arabia, the result is reflected on their PMS pump price as indicated above.
Nevertheless because of our selfish, corrupt and non patriotic peculiar nature as a people government agents bastardize the process of subsidy to their selfish gains. I must contend that under such circumstances no government worth its salt can fold its arms backwards and watch subsidy regime put in place for the benefits of the citizens being thwarted by some cabal at their dare expense. I agree in total with Mr. President that the subsidy should be removed so that sanity is brought to bear in our economic policy. The situation where the livelihood of some people in this country involves moving from one permanent secretary or minister to the other to collect a piece of paper and sold to make millions of dollars cannot be allowed. Government must make the people to be responsible and productive for the development of this country. The deregulation of the petroleum industry both upstream and downstream is an all purpose elixir.
What we Must Do now 1. Let our Refineries Work because. 2. Fuel Subsidy today absorbs about N1.4 trillion or US$8 billion of the government budget. I agree with government that this money can easily channeled towards education, maternity health care, employment and agriculture, etc.
3. Crude commodity exchange with other countries must stop. It puts money in the hands of foreigners. Ply this back into making our refineries work. The name of Ivory Coast on this list painfully reminds us the extent to which government all these years have employed oil resource in destroying our human development initiatives. It hurts and this must be reversed.
4. We recognize that Nigeria does not have the production capacity such as Saudi Arabia to sustain subsidies because of our lower per capita oil revenue, hence the subsidy regime is necessary.
5. Companies are reluctant to produce any goods sold at below local or global market prices as they will lose money. Removal will encourage investment.
6. Lower prices encourage greater demand as the price signals fail to influence demand.
7. Sharp smuggling practices are inherently encouraged especially to neighboring countries in view of our porous bothers. It is government responsibility to protect our bothers. It cannot pass this buck.
8. Road must be fixed and transportation system such as rail way, commuter buses be provided so that In return, transportation costs will come down to a level that could be absorbed by the ordinary Nigerian, especially in a society where 90% of the people rely on mass transit to conduct their daily business.
9. Crude Oil cannot be sold to Nigerian Refineries at $107 or international market price. It makes no economic sense and a verifiable and appropriate domestic price must be given to this. It is economic voodoo that says Toyota be sold in Nigeria the same price as in Japan or benz in Germany. Crude oil cannot be sold at the international stock price in Nigeria. Never! 10 . We are agree the Effects of Subsidy Removal will result in Higher cost energy – petrol, Higher cost of Transportation, Higher Inflation, Higher political pressure, strike and other crisis storm(even Iran is still battling with their problem). BUT it will also usher in Realistic Economic Trading of Fuel and spending to more sustainable path. Furthermore, Private petrol Production will be encouraged . As the world moves away from resources waste to a more realistic approach to harnessing their resources for development, regimes of subsidy are crumbling. Even Ghana unwound some of its subsidies in recently.
In conclusion, this bold step by President Jonathan must be applauded BUT he must do all to convince the people of his good intensions. He can do this by starting to inject new management into the NNPC. It pains one that the
1. NNPC does not even have the data of crude oil production in a centralised manner as it is stored in the computer of staff
2. No centralized location for storing electronic copies of historical production and allocation data. These information are stored on personnel (individual) workstations. To get information on Nigeria oil and gas industry, Nigerian scholars have to depend on Europe and USA. This is absurd. The DPR must wake up to its established responsibilities.
3. Even NNPC’s subsidy claims and PPPRA’s verification are based on volume of petroleum products available for sale NOT Products that get to the Filing Stations. So we do not know what actually crosses our borders in smuggling but we continue to pay for reported proposed arrival quantity.
4. NNPC is invoiced in US$ for domestic crude allocations but pays back in Naira value to the Federation Account even NOT at CBN Market Rates.
The corruption and fraud actually starts in the NNPC and it is time President Jonathan injected new life in form of tested oil and gas industry experts of international and national experience into the leadership instead of recycling the NNPC staff who have brought us to this debacle in the first place.
This requires courage, a sine qua non attribute of a good leader.
I am convinced that the Lawan Farauk House of Representative committee on the subsidy issues will be able to verify all the assertions that I have made here to help it come up with long lasting solutions for our oil and gas industry.
ABIA State lawmakers have in a resolution demanded from the University of Maiduguri and the Borno State government, the body of 25-year-old Mr Chukwuma Ogbunji said to be a student of the university who was reportedly killed in his hostel on January 6, 2012 by the Boko Haram group.
Raising the matter before the members in session as a matter of urgent public importance, Mr Martins Azubike of Isiala Ngwa South Constituency said what was happening in the North frightens everybody, adding that a lot of the victims were from the South East.
PRESIDENT of the United Nations (UN) Security Council, Amb Kodjo Menen has said that there could be a strong connection between Boko Haram and criminal actors in the West Africa region.
Addressing journalists recently in New York on the schedule of the Council for February, the Permanent Representative of Togo who is the president of the UN Security Council noted that the issue of Boko Haram in Nigeria would be included as the Council looks at the impact of transnational organized crime on peace, security and stability in West Africa during one of its open debates this month.
“The possibility that the terrorist groups Boko Haram and Al-Qaida in the Islamic Magreb (AQIM) had contact with criminal actors in the region,” the UN Council president and Ambassador was quoted in a statement by the UN.
He added that the effects of piracy and organized crime went far beyond borders and were linked to many security and economic challenges, such as the proliferation of arms and illicit drugs, disclosing that all these would be a major topic to be addressed by the Council through an open debate on 21 February.
While members of the Un Security Council held open debates, other UN member-states who are not on the Council are also allowed to contribute since it is an open debate. It is not yet known whether Nigeria, seen as a major country in the region had indicated interest to speak at such a debate, which will discuss Boko Haram.
Recently also, in a statement, the Council had linked the Boko Haram to the fallouts of the Libyan crisis.
According the Council “Arms proliferation, and large-scale influx of returnees from Libya, exacerbated long-standing and serious problems including terrorist activities by Al-Qaeda in the Islamic Maghreb and Boko Haram, transnational organized crime including illicit drug trafficking, recurrent food crises and lack of development in vulnerable remote areas.”
Apart from that, the Council would also hold another open debate on women and peace and security on 23 February.
