FG Earmarks $1bn to Fight Oil Theft, Pipeline Vandalism

 President Goodluck Jonathan

•  Rate of decline of Nigeria's crude oil production put at 20%

By Jaiyeola Andrews and Chineme Okafor
   
President Goodluck Jonathan has announced that the federal government has set aside $1 billion for the implementation of a comprehensive programme to curb crude oil theft, vandalism of oil and gas infrastructure and the apprehension and prosecution of crude oil thieves.

This came as the Vice-President of Shell Upstream International, Mr. Markus Droll, has disclosed that the declining rate of crude oil production of Nigeria’s hydrocarbon resources may be as high as 15 to 20 per cent.

Jonathan spoke at The Hague at separate meetings with the Prime Minister of Netherlands, Mr. Mark Rutte, and the Chief Executive Officer of Shell International, Mr. Ben van Beurden.

He disclosed that a technical committee had already been set up to look into all aspects of the implementation of the programme.

According to the president, it would include further action to enhance the security of pipelines and other oil industry infrastructure, resolve community-related issues, boost youth empowerment in oil-producing areas and enhance the commitment of oil companies in the discharge of their corporate social responsibilities.

Jonathan stressed that the fresh onslaught against oil theft planned by his administration would require maximum cooperation of the international community, especially countries like the Netherlands which are major stakeholders in the global oil industry.

“Oil theft is an aspect of global terrorism, which has become a big industry on its own. It has become a major threat to the Nigerian economy and we need to work with all stakeholders to curb it. The thieves must be traced, apprehended and prosecuted,” Jonathan said.
The Dutch Prime Minister, Rutte, assured Jonathan of the commitment of the Netherlands to the concerted action against crude oil theft and global terrorism.

Rutte noted that Jonathan’s visit affirmed the strong ties between Nigeria and the Netherlands, assuring the president of the willingness of the European country to collaborate more with Nigeria on environmental and security issues, particularly in the Niger Delta.

He commended Nigeria’s leadership role in promoting regional security in West Africa, and welcomed the signing of an agreement on immigration between both countries as well as the strong trade relations between Nigeria and the Netherlands.

“The president's visit is an open testimony of the strong ties between Nigeria and Netherlands. Nigeria is Netherlands’ main trading partner in Africa and the Netherlands is the second biggest European investor in Nigeria,” the prime minister said.

In his comments on Nigeria's hydrocarbon resources, Droll said replacing such natural production decline rates in the industry require more funds than are currently available but that the peculiar high cost operational environment of Nigeria had compounded the situation.

But the Nigerian National Petroleum Corporation (NNPC) blamed the high cost of oil and gas projects and the shortfalls in funds needed to complete ongoing projects in the sector on the international oil companies (IOCs) operating in the country.

While speaking on the growth strategy for Nigeria’s oil and gas industry vis-à-vis driving exploration and boosting reserves at the just concluded Nigeria Oil and Gas conference and exhibition in Abuja, Droll explained that oil and gas companies in Nigeria would have to look for innovative ways to inject additional capital to replenish declining production.

He said: “As I have touched on the issue of funding, let me continue on that theme. Our belief is that for Nigeria to fulfill its oil and gas potential, more funding is required by the industry than we have seen in recent years.

“We are in a high cost environment and in order to collectively climb towards significantly higher production levels, we do need to find better ways to fund development. Decline rates in the industry can be as high as 15-20 per cent, and you will appreciate that to simply replace natural production decline rates require much of the funding than is currently available.”
Droll in his call for creative funding mechanisms stated: “I would therefore urge all players in the industry to keep looking for innovative ways to inject additional capital. And as important as delivering higher funding levels, is the ability to ensure predictable multi-year funding.”

NNPC however blamed the high cost of oil and gas projects packaged by the foreign firms for being responsible for the funding shortfalls that had stalled many of the projects initiated in the sector.

The corporation also said that it had set in motion measures to sanction new projects in the sector, including two major deepwater oil field developments owned by Shell and Total.

It noted that both projects might be reviewed if they incurred cost overruns.
“Apart from oil theft and pipeline vandalism, another major challenge for the Nigerian oil industry is the high cost of production. Costs are unnecessarily built up for projects and this is what is referred to as the funding gap,” the immediate past Group Executive Director, Exploration and Production of NNPC, Abiye Membere, said at the conference.

He further stated: “No single project in this country has been awarded by the IOCs and completed on scheduled and on cost.”

Membere said in the bid to rein in cost, the topside for the Shell-operated Bonga Southwest deep water project and Total's Egina deep offshore field must be done in-country or the companies risk sanctions.

Apart from the funding challenges, the multinational oil firms also blamed the mounting insecurity, bureaucratic bottlenecks and the continued uncertainty in Nigeria's oil industry, as being responsible for the high cost of projects in the country.

“The sheer hassle of moving projects through in this environment is overwhelming. The contracting process is too cumbersome and does not make for efficient project costs,” the Chairman of Shell companies in Nigeria, Mr. Mutiu Sunmonu, said, adding that “security issues are also driving up costs”.

The Managing Director of Mobil Producing Nigeria Unlimited (MPNU), Mark Ward, also said: “There is a need for reforms to solve the fundamental issues of the inefficiency in the system. We are looking up to NNPC our senior partner to help solve the issue of how to provide low cost projects.”

ThisDay

Confab, a waste of public funds – Buhari

 by John Alechenu

   

 

Maj.-Gen. Muhammadu Buhari (retd)
| credits: nairaland.com

A former Head of State, Maj.-Gen. Muhammadu Buhari, on Monday described the ongoing national conference as a waste of public funds.

He said   at the opening of the inaugural edition of the PGF Progressive Governors-Legislative-Civil Society Roundtable in Abuja, that the huge amount being spent on the entire process, should have been put to better use.

Buhari, an All Progressives Congress national leader,  argued that  what the conference was trying to  achieve was what the National Assembly was in a better position to do.

He  said, “What I say about the conference is a personal view. What the conference is doing is the duty of the National Assembly.

“The elite should  have call  themselves together and ask the National Assembly to sponsor a bill for some amendments to the constitution.

“I do not think that at this time when government  is  finding it difficult to pay salaries of workers, it can afford about N7bn to waste on a conference.”

Also at the event,  Senator Bukola Saraki    said the current administration needed to be more transparent in the management of  the nation’s funds.

He explained that the lack of transparency was partly responsible for the impunity of the Peoples Democratic Party-led Federal Government.

Saraki said, it was only in Nigeria that a President could afford to commit an impeachable offence by spending huge  public  revenue outside appropriation without consequences.

He argued that the money being spent  on the   national conference was not contained in the 2014 budget.

“I told my colleagues that it might probably be coming from the missing $20bn.” Saraki, a former Kwara State governor and APC leader added.

He also noted that the controversial subsidy regime posed  a great danger to the economy itself.

The lawmaker said,  “Let us not allow anybody to deceive us; the problem is not the subsidy but it’s management.

“The country does not use more 35 million litres of PMS (Premium Motor Spirit) while a look at cost profile shows a huge difference that indicates that we cannot  consume more 35 million litres.”

According to him, an efficient petrol subsidy management can solve most of the problems being experienced in the  country.

The  Director General of the PGF, Salisu Lukeman, said concerns over institutionalised corruption  informed the forum’s   decision to liaise with  APC  members  in  the National Assembly to do something to keep the fight against  graft  in the front burner.

Lukeman explained that the outcome of the interface  would  form the basis of new strategies to fight corruption.

Also,  the  Deputy Minority Leader of  the Senate, Senator Abu Ibrahim, said the round table was the first of its kind in the country.

He said  that APC members in the National Assembly  would  try to push through the resolutions at the round table in the National Assembly.

The Minority Leader of the House of Representatives, Femi Gbajamila, said the party had once again taken   up topics that are germane to  national development.

He explained that the party, through  roundtable, had made it very clear that good governance was its priority.

Punch

Aregbesola

by: John Ofikhenua

•APC fixes Osun primary for April 12
Osun State Governor Rauf Aregbesola said yesterday that Nigeria may not survive another period of misrule by the Peoples Democratic Party (PDP).
He urged Nigerians to work towards replacing the ruling party at the centre.
Aregbesola spoke at the All Progressives Congress (APC) National Secretariat in Abuja after submitting his nomination form for the August 9 governorship election.
He said: “Politicians, particularly in our type of society, can celebrate any political power, but not just any politician. We are politicians with passion for the people and zeal for change. It is the combination of those two things that informed commitment to give Nigeria a rebirth. Going through the years of the PDP’s bad management of our nation, it is the duty of patriots to work assiduously for their replacement. I do not think our nation can survive another period of misrule by the PDP.”
Telling the APC National Deputy Chairman, Aminu Masari; National Organising Secretary Senator Osita Ozinaso and others the achievements of his administration, Aregbesola that he wants a second term in office to complete the work he has started.
He said: “To continue the good work we started in November, 2010, we decided to seek re-election. We have obtained the nomination form and I am joyfully here to seek the nomination of the party to again run for the governorship position in Osun.”
Aregbesola said his administration has almost completed 10-kilometre roads in each local government and is “processing 1,000 kilometres of roads that are 70 per cent completed”.
He said his administration met a destroyed healthcare sector and is rehabilitating nine hospitals.
The governor said he set up a social security scheme for the elderly, which gives stipends to the aged monthly; created jobs for youths and serve nutritious free meals to about 300,000 pupils daily.
He said: “Due to good governance, we have removed fear from the state. I ask the inept PDP that was there for 90 months to tell us what it did for the people. The only thing that is left is the memory of mis-governance.”
Masari said APC is the panacea to Nigeria’s problems, adding: “With the type of governors we have, we have demonstrated good leadership.”
The former House of Representatives Speaker, who said he just rose from a meeting with the Independent National Electoral Commission (INEC), said the commission’s Chairman, Prof. Attahiru Jega, assured parties that the 2015 election would be free and fair.
He expressed optimism that the APC would win the presidential and other elections.
Ozinaso said: “Ward congresses in Osun will hold on March 29. The local government congresses will hold on April 1 and the state congress April 5. The primary will hold on April 12.”
He said the party would be fair to all aspirants at the primary.
TheNation

Financial council to quiz Sanusi, Alade, Lemo, Moghalu, Akingbola, 10 others

Sanusi Lamido

by: Collins Nweze

The Financial Reporting Council of Nigeria (FRC) will tomorrow and Thursday question the suspended Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi; CBN Acting Governor, Dr. Sarah Alade; former CBN Deputy Governor, Operations, Tunde Lemo; CBN Deputy Governor, Operations, Dr. Kingsley Moghalu; and former Managing Director/CEO of the defunct Intercontinental Bank Plc, Mr. Erastus Akingbola.
Also to be questioned are the Managing Director of the Bank of Industry (BoI), Ms Evelyn Oputu; CBN Deputy Governor, Corporate Services, Alhaji Suleiman Barau; Mr. Babatunde Dayo; Mr. Gabriel Okpeh and Mr. Ezekiel Ejedele.
Also to appear before the FRC hearing panel are the former Chief Executive Officer of the Nigerian Security, Printing and Minting Company (NSPMC), Mr. Ehi’ E Okoyomon; Alhaji Ahmed Barmali; Mr. Igho Dafinone; the immediate past Chief Executive Officer of Access Bank, Mr. Aigboje Aig-Imokhuede; and his successor, Mr. Herbert Wigwe.
While Sanusi, Aalde, Lemo and six others are expected to appear at the interrogation to be held at the FRC head office in Lagos on Thursday at 11 am, Akingbola, Aig-Imoukuede, Wigwe and three others are to appear at the same time tomorrow.
The FRC said in a newspaper advert published yesterday that it is investigating the activities of the CBN for financial years ended December 31, 2011 and 2012. The investigation, the council said, includes related matters arising from transactions and events, which impacted on the 2011 and 2012 from earlier years and have implications for later periods.
“We wish to inform the under-listed persons that the FRC is investigating the activities of the CBN for financial years ended December 31, 2011 and 2012. This investigation includes related matters arising from transactions and events, which impacted on 2011 and 2012 from earlier years and have implications for later periods,” the report said.
The FRC management said letters had been sent to the concerned persons before the current invitation to hearing.
Sanusi was suspended on February 20 by President Goodluck Jonathan for alleged financial recklessness. That was after he said the Nigerian National Petroleum Corporation (NNPC) had failed to remit $20 billion oil revenue to the Federation Account. He has denied any wrongdoing.
 TheNation

Gbemi Saraki Tears Kwara PDP Apart

What both the President, Dr. Goodluck Ebele Jonathan and the Peoples Democratic Party, PDP, thought they have gained by removing Bolaji Abdulahi, the immediate past Minister of Sport is now tearing PDP in Kwara State apart. The new ruling party in the Harmony state, All Progressive Congress, (APC), is now enjoying a temporary relief just as the replacement for Abdulahi in the federal cabinet has removed the fragile peace recorded in PDP in the state. The oneness displaced some weeks ago when the President visited Kwara State was certainly a ruse as; leadership of the party has broken into factions a situation that is making it difficult for Aso Rock to find a replacement for the former minister in the state. According to information gathered by News of The People, many of the elders and leaders in PDP do not want Senator Gbemi Saraki to be appointed as minister, but she has the support of the National leadership of the party and that of the Presidency.
It was alleged that some angry members threatened that they will decamp to APC if Senator Gbemi Saraki is approved as a minister from Kwara. One of the loyalists of other contenders who craved anonymity said, “if Gbemi emerges as a minister, she will automatically assume the leadership position of PDP against the interest of my political leader. Her appointment would amount to a perpetuation of Saraki dynasty which we in the PDP are believed to be waging war against”.
Other top PDP contenders for the plum job are Muinat Shagaya, Yinka Aluko, Sulyman Ajadi, Prof. Shuaib Abduraheem, Chairman of the Federal Character Commission, Bio Ibrahim, Yinka Alabi, John Dara, Lola Ashiru etc. If the rumour going around is anything to go by, is only a matter of days before Gbemi’s name will be sent to the Senate for confirmation, it will then mean that the structures of APC and that of PDP will effectively be under the control of the Sarakis.

NewsOfThePeople

Why Do African/Nigerian Kleptocrats Steal Money They Don’t Need, Use, See, Reach, Or Ever Access?

By Austin Aneke

Why do African/Nigerian politicians steal money they don’t use, see, need, reach, or access?  The stealing by government officials in Nigeria is systematic, planned, organised, endemic, and extreme. Nigeria’s thieving autocrats have turned every treasury in Nigeria into a crime scene. They spare no funds- no matter how consolidated. They spare no assets or public accounts because they are morally depraved and ethically bankrupt.
They steal so much that no matter how lavish their life styles within the country become, they can only use a fraction of their loot in their life time. Most times their loots are hidden in foreign bank accounts in tax heavens, especially Switzerland. Their stealing spree creates huge holes in the development process at home; hence HOME is unstable and unsafe to keep stolen funds. Home may explode at any minute.
Nevertheless, at the commencement of the inevitable trouble at home; the foreign hosts of their looted funds also commence their black mail. “Sorry you can’t reach the funds until we clarify certain issues”. The foreign host tax heavens- ensure that the funds are seized, forfeited and ring fenced. The looter gets ill and dies.
The US government recently froze about $483.00 million stolen by former Nigerian dictator – Sanni Abacha, in largest kleptocracy forfeiture action ever brought in the US. If you wish to know; the $483.00 million dollars, is in addition to the £500- $700 million dollars previously recovered from the same culprit by the Nigeria government. These were monies he never used, saw, reached, and as we now know- accessed.
So lets get it right.
Africa/Nigeria is not a tax heaven for depositing stolen foreign/local resources, because the regimes over time, have made it unsafe. However, Africans/Nigerians steal the funds and deposit them into foreign fortes because “HOME” is not safe. Africans/Nigerians lose the funds because the foreign thieves hosting the funds, blackmail their families and Nigeria- at their death, coup, or insurrection. The ultimate loser is the ordinary African/Nigerian in the street.
So when will African/Nigerian leaders stop stealing the funds they cannot use, reach, access, or touch; which are eventually lost to handlers of stolen goods, abroad. When will African/Nigerian leaders start copying Nelson Mandela and stop behaving in ways that endear them to no one? When will they start realising that the public at home and their foreign deposit countries loathe them? The foreign countries do not like them, but love what hey bring to them (stolen money), at the expense of their own people (Africans/Nigerians).
Is it not phony when you hear that Dangote is the richest man in Africa/Nigeria? He may be the richest business man, but he is clearly not the richest man in Africa or Nigeria. The richest men in Africa/Nigeria can be found in ex -ministers/Presidents, Prime Ministers, Governors. Nevertheless and unfortunately Forbes magazine cannot categorise them as richest, because first they know that their funds were stolen, and second- they are aware that they don’t even have access to their funds nor control them. Furthermore, because these funds running into billions are stolen and hidden, groups like Forbes find it difficult to categorise, classify, or measure their wealth. The recent missing $20 billion dollars in Nigeria is a case in point. This is just unaccounted funds just for about one financial year. Where do you think the money has gone? Mobutu is believed to have lost about £4 billion dollars of his country’s resources in Swiss Fortes.
“Kleptocracy is a form of political and government corruption where the government exists to increase the personal wealth and political power of its officials and the ruling class at the expense of the wider population, often with pretence of honest service. This type of government corruption is often achieved by the embezzlement of state funds”.
While the stealing continues, the primary schools are in shambles, there is no primary health care, the Universities are shot, poor roads are constructed, if at all, and there is no pipe borne water. The health systems remain so rotten that almost all the Kleptocrats pride themselves in accessing health facilities abroad.
Past and present African/Nigerian politicians compete on who builds the best marble houses, with looted funds, - for personal use, and on hill tops. They also compete on who is rated as having looted more billions of dollars, pounds and naira. And you know what; the people hail them in these unholy competitions. The people will say that “he/she is doing well”. “He just built a personal marble house after just 6 months in office”.
The culture of stealing public funds in Africa/Nigeria is alarming. African legislative houses are houses of thieves. Unintelligible gangsters rule Africa/Nigeria. African political officials are voted in- NOT to do well, but to help to dismember the treasuries.
So, when will African/Nigerian leaders start to realise the vanity of their stealing spree? When will they begin to realise that the deaths of African presidents Zenawi of Ethiopia, John of Ghana, and Bingu Mutharika of Malawi, all in one year, are enough signs to prompt them to reflect and realise the vanity of their stealing spree? When will they begin to realise that African/Nigerian people are the only losers in the stealing debacle? When will African/Nigerian people stop cheering their kleptocrats?
When will African/Nigerian politicians start returning their loots before they are lost to greedy western banks and countries? Who will introduce an African/Nigerian money return initiative to help save the stolen funds stashed in Switzerland and its ilk? When will the world commence prosecuting African/Nigerian politicians for economic terrorism against their people?
Austin Aneke is the author of Technology and Corruption and founder of www.june12post.com
Saharareporters

Family Secret Uncovered: Meet President Jonathan’s Second Wife, Mrs. Lott Jonathan

Unknown to most Nigerians, President Goodluck Ebele Jonathan has another wife, aside from the First Lady, Dame Patience Ibifaka (née Oba). The existence of his second wife, Mrs. Lott Jonathan, popularly called Mrs. Lott J, is one major aspect of GEJ’s family life, which is consciously being kept out of the awareness of most Nigerians. Lott J is not just President Jonathan’s second wife, she is also the mother of his children-two boys.
A Law graduate of Rivers State University of Science and Technology (RSUST), Lott J is the daughter of Chief F.D. Lott, renowned lawyer and former Attorney General of Bayelsa State. She is the cousin of Dezieni Allison-Madueke, the controversy-inclined Minister of Petroleum, and the two are as close as blood sisters can be. The ELITES gathered that Lott J’s father is a member of the Governing Council of Niger Delta University, Bayelsa.

Sources disclosed to The ELITES that Lott J has been married to the president even before he made his foray into politics. It was gathered that after Jonathan became the Deputy-Governor of Bayelsa State, Lott J tried to muscle her way into his heart, by using her two sons as a bargaining chips to tie his hand. However, she met a resistance in a fiery Patience, who foiled all her attempts. By the time Jonathan became the governor of Bayelsa State, he decided to relocate his second wife and two sons to the United States of America. Shortly after Jonathan became president, Lott J came back to Nigeria with her two sons, and made Abuja her place of abode. Sources disclosed to The ELITES that Lott J lives in one of the most highbrow areas in Maitama Street. Her husband is said to pay her a visit every Sunday.
Described as a very easy-going and self-effacing lady, Lott J owns and runs a private school, Aduvie Montessori International. It is situated off Blantyre Street in Maitama and it is rated as one of the best in FCT Abuja.
TheParadigm