Conference runs into crisis as North threatens walkout

Kutigi

by: Onyedi Ojiabor and Dele Anofi, Abuja 

Signs of a huge crack in the on-going National Conference emerged yesterday, with the North’s delegates threatening a walkout over the unresolved mode of voting.

The Lamido of Adamawa, Dr. Muhammadu Barkindo Mustapha, dropped the bombshell immediately the delegates settled for the day’s business.

Dr. Mustapha was nominated for the conference on the platform of the National Council of Traditional Rulers of Nigeria.

Although conference Chairman Justice Idris Kutigi called for comments on whether the conference would call for memoranda from the public on its assignment, Dr. Mustapha sidetracked the issue to deliver what some delegates described as “an attempt to frighten the South”.

Dr. Mustapha’s comment, a delegate said, “may have been rehearsed at a meeting of a group of northern delegates last night”.

The royal father warned that the North should not be pushed to the wall.

He threatened that if pushed to the wall, they would simply walkout of the conference.

To underscore the point he was making, Dr. Mustapha declared that when they walk out there would be great consequences for the country.

Some delegates attempted to shout him down, but he was not deterred.

Even when the shout of “no, no, no” persisted, Dr. Mustapha was not dissuaded.

At first, Justice Kutigi attempted to call him to order; he later urged him to continue.

The royal father made it clear that he was sounding a “note of warning” before it is too late.

He noted that it was obvious that if the country broke up many of those shouting him down would have no place to run to.

And for all he cared, the people of Adamawa and a lot more people he did not specify will be accommodated in Cameroon.

His kingdom, he said, extends to the Republic of Cameroon, especially the place called Adamawa State in Cameroon.

He said: “I just want to sound a note of warning and that is why I requested to be given time to speak before the start of business today,

“The note of warning I want to sound is that we should not take a cue from the so-called civilised people of western countries because they are always after their own interest and they can use anything – coercion, force and other means to protect their interest.

“Listening to the debates and the behaviour of some delegates here, it really beats my imagination how a gathering of people like us will behave like the way we are behaving.

“Mr. President delivered his address here and he laid down what we are supposed to discuss, but many people here, sorry to say, especially some elder statesmen who claimed to be strong loyalists of Mr. President…”

There was shout of “point of order” from those who felt belittled by what Dr. Mustapha was saying.

Justice Kutigi said: “Mr. speaker, the issue is whether you want the public to be invited to serve memoranda here.”

Dr. Mustapha responded: “Mr. Chairman,that is not my request.”

There was more shout of “no, no, no”

Justice Kutigi interjected and said “Order, order; Mr. speaker, please continue”.

Dr. Mustapha went on: “But, unfortunately, these people are in the forefront to contradict what Mr. President said. At the rate we are going, in the long run, this conference may not achieve its purpose.”

There was another bout of “no, no, Mr. Chairman, no”.

Justice Kutigi asked the delegates to allow Dr. Mustapha to conclude his speech.

“Let him land; let him land; allow the speaker to land,” the chairman said.

Dr. Mustapha continued: “In the long run, if we are not careful, this conference will flop – God forbid. And if it flops, the resultant effect can not be predicted by anyone of us here.

“If something happens and the country disintegrates – God forbid – many of those who are shouting their heads off will have nowhere to go.

“I and the people of Adamawa – and many others – have somewhere to go. I am the Lamido of Adamawa and my kingdom transcends Nigeria and Cameroon.

“A large part of my kingdom is in the Republic of Cameroon, apart from my kingdom in Adamawa.

Justice Kutigi interjected again: “Speaker, please answer the question on memoranda and stop wasting our time. Carry on.”

Dr. Mustapha continued: “Part of that kingdom in Cameroon is called Adamawa State, in Cameroon. So, you see, if I run to that place, I can easily assimilate but I want to plead with us to adhere to laid down rules by Mr. President in his address, which include issue of voting.

“Unless you want to disobey the President, then you can do whatever you want and if we are pushed to the wall, we will easily walk out of this conference.

“Jingoism is not a preclusive of anyone; everyone here is a potential jingoist.’

When Dr. Mustapha said “if we are pushed to the wall, we will easily walkout of this conference”, there was a sustained “no, no, no”, which apparently forced him to sit down.

The conference adjourned plenary to tackle the controversial mode of voting.

Deputy Chairman Prof. Bolaji Akinyemi announced a long list of delegates who had been selected to resolve the problem.

The list, Akinyemi said, was the product of painstaking selection that lasted till the early hours of yesterday.

The list contained mostly names of leaders of delegation and elder statesmen from various states, geo-political zones and groups.

On the 49-member list are Gen. Ike Nwachukwu, Chief Edwin Clark, Gen. Alani Akinrinade, Awwulu Yadudu, Olu Falae, Justice Hassan Gummi, Iyorcha Ayu, Senator Ita Giwa, Atedo Peterside, Nduka Obaigbena, Chief Raymond Dokpesi, Mallam Tanko Yakassai, Chief Mike Ahamba, Prof Jibril Aminu, Prof. Jerry Gana among others.

It was, however, apparent that some delegates were not comfortable with the list.

A delegate simply said: “We are waiting and watching how the issue will be resolved.”

Before adjournment on Tuesday, the delegates mandated the chairman to consult with leaders of delegations to reach a consensus on the thorny question of whether the conference would decide issues by three-quarters majority or two-thirds majority, if consensus on an issue fails.

For two days, the conference could not agree on the issue.

The controversy threw up a North/South divide.

Northern delegates are rooting for three-quarters majority. Southern delegates want two-thirds majority as the mode of voting.

As at the time of filing this report, the behind-the-door meeting to resolve the voting pattern was still on.

Shortly after the announcement by Akinyemi, Justice Kutigi adjourned the session and announced that delegates were to resume by 4pm.

TheNation

Abuja Park-and-Pay Policy A Fraud – Reps

Edegbe Odemwingie And Adesuwa Tsan

Federal lawmakers yesterday stated that the ‘park-and-pay’ policy in Abuja metropolis “has since metamorphosed into an avenue for exploitation, fraud and other forms of sharp practices”.
This was a fallout of a motion sponsored by Hon. Bitrus Kaze to investigate the concession of the “Park-And-Pay Policy” introduced in 2012.
To this end, the House of Representatives detailed its Committee on FCT to conduct a public hearing to investigate the processes leading to the concession, award and operation of the scheme and make recommendations to the House within three weeks.
LEADERSHIP Friday recalls that in early 2012, the Federal Capital Territory Administration (FCTA) introduced a ‘park-and-pay’ policy which requires the motoring public in Abuja metropolis to pay fees ranging from N50 too N100 to park their vehicles on designated streets for periods ranging from 30 minutes upwards between the hours of 7am and 6pm.
Kaze, in his lead debate, noted that the implementation of the policy was contracted out to privately-owned companies, such as Integrated Parking Systems Ltd and Automaten Technik Haumann Nigeria Ltd, which have no previous experience in electronic ticketing and parking system.
He informed lawmakers of allegations that although the companies do not maintain any infrastructure or provide professional services, they remit only between 10 per cent and 40 per cent of generated revenues and keep the rest (between 90 and 60 percent).
“The policy is being carried out without a clearly defined law to regulate the concession, management and operation of the electronic ticketing and parking regime, qualification of prospective bidders, the designated areas as well as specific times for ticketing, the percentage of funds to be remitted too government and penalties for defaulters,” he said.
The Plateau lawmaker decried the “harassment” and “unruly” conduct of agents of the companies.
“They (agents) prefer to indiscriminately clamp and tow cars which have to be reclaimed from their premises with huge sums of money ranging from N5,000 to N20,000, thereby subjecting many motorists to harrowing experiences often resulting in physical combat and assault contrary to the norms of decency and respect for fundamental human rights and dignity of persons.
He said the FCT minister, Sen Bala Mohammad, based on “ceaseless petitions” against agents of the companies pledged to review the policy, but the review has not been made till date.
Leadership

Billionaire Dangote, Gov. Fashola Accused Of Using Police To Snatch Disputed Land

Fashola and Dangote conspiring at a town meeting some weeks back

Africa’s richest man Aliko Dangote and Lagos State Governor Babatunde Fashola are using ruthless police officers to evacuate residents of the Idasho community in order to facilitate the billionaire’s take-over of a huge parcel of land.
Police officers from the Special Anti-Robbery Squad (SARS) today invaded the Idasho community to force the residents out of their land which Mr. Dangote, a billionaire businessman, wants to acquire. Eyewitnesses told SaharaReporters that the policemen arrived at about noon (Nigerian time) and arrested any residents who protested their invasion. Two eyewitnesses also reported that the officers began shooting in the air and lobbing teargas at Panseke, one of the villages in the community.

• NewsRescue-When Dangote Comes For Your Land by Peregrino Brimah

One resident said the policemen were irked when some members of the community accosted them and served them a notice indicating that the land is a subject of an ongoing lawsuit. The invading officers defied the notice of court process. They arrested and took away residents, including women, who informed them that they were in court over the land.
“Who born you?” one of the police officers reportedly said, waving off the residents.
A few weeks ago, Governor Fashola had told community leaders in the affected area that their land would be used as the site of a petrochemical plant proposed by Mr. Dangote. The community leaders had protested the move, demanding to be duly resettled and fully compensated.
A community spokesman who asked for anonymity accused the Lagos State government, in collaboration with the handlers of the Lekki Free Zone Project and Mr. Dangote, of being determined to force the residents out without any form of compensation or resettlement.
Mr. Fashola had earlier used policemen from nearby local police stations to terrorize the residents of the community. A resident claimed that the governor and Mr. Dangote decided to call in officers from a dreaded anti-robbery unit because the local police officers, on learning that the case was in court, had declined to continue harassing the residents.

• NewsRescue-The 10 Real Tips to Becoming a Billionaire like Dangote by Dr. Peregrino Brimah

A police officer at the Akodo Police Station near the community told SaharaReporters that they had shown reluctance to heed Governor Fashola’s deployment requests to the community, stating that they were aware the disputed land was in court.
A community member accused Mr. Dangote of using his wealth to manipulate policemen from the SARS to “clear” the area of residents in order to move forward with his refinery project.
Several residents also asserted that, two weeks ago, the Lagos State Government had used police officers to frame up residents by accusing them of stealing tools from the site. They said officials of the Free Zone management raised a false alarm that some equipment was missing from the site they proposed for Mr. Dangote’s petrochemical plant. “Police just came here and arrested people,” one of the residents disclosed.
A member of the staff of the Free Zone confirmed to our correspondent that no tools were missing or stolen. Even so, the arrested residents were arraigned in court on trumped-up theft charges.
“This is a vicious attack on us by Governor Fashola. He desperately wants to give our land to Dangote without doing the proper thing,” one community leader said.
One resident said he called his sister, arrested by the invading police, to know her whereabouts, but a police officer answered her phone. The man said the officer warned him that they were on a mission to “clear the land for Alhaji Dangote.”

NewsRescue

Court Nullifies Collection Of Toll On Lekki-Ikoyi Bridge

By SaharaReporters, New York

A Federal High Court sitting in Ikoyi, Lagos State has nullified the collection of any toll or tariff on the Lekki-Ikoyi Bridge.
Ruling on the suit, which was filed by human rights lawyer, Ebun Adegboruwa, presiding judge, Justice Saidu, J. held that the power of control over all navigable waterways in Nigeria resides in the Federal Government, and not any state government.
He held that from all the documents made available to the court, the only justification for the toll fee on the bridge by Lagos State is the private partnership law.
However, he noted that the law could not apply to the Lekki-Ikoyi Bridge since it was built with the money of the Lagos State Government, without the involvement of any private partnership.
“Thus, since there is no law supporting the toll fee, it is illegal and should be stopped forthwith”, Justice Saidu said.
Responding to the ruling, Adegboruwa commended the courage of the judge, especially against the background of the impunity that citizens are being subjected to all over country.
“Coming a day after the same court nullified the imposition of new number plates, this judgment should be an elixir to all Nigerians to challenge in the court, all illegal taxes and arbitrary charges in the name of road tax, PHCN metre maintenance charge, estimate bills without electricity, and so on”, he said.
Saharareporters

N12m National Conference Allowance Is Scandalous, Totally Unacceptable – Bishop Kukah

Bishop Hassan Kukah

The Bishop of the Sokoto Catholic Diocese, Bishop Matthew Hassan Kukah, has described the N12 million allowances for the delegates to the National Conference as scandalous and unacceptable.
He was speaking exclusively to Saharareporters at the Nigeria Summit 2014 in Lagos, where he noted that the National Conference is being held at a time of great anxiety, a time of frustration, a time of great polarity, a time of ideological disorders.
“The writing of a new constitution should not be a decision of gathering 400 or 500 people and if you must gather them there’s absolutely nowhere in the world where you can talk about gathering people that otherwise ought to be ready to make a patriotic commitment and sacrifice and you say you are giving people N12 million,” he said, expressing the hope that the report is not true.
He recalled that when he served as the Secretary of the National Political Reform Conference every member received N20,000 per month.  “I am not talking about whether it was enough or not, that is not the issue, but I know the sacrifices that people had to make because this is about our country.”
He noted that the opposition party says that the decision to take 12 million is a political decision and that people are making political statements and that there was going to be a lot of grandstanding, but at what expense.
He further observed that many people may see the success of the conference as a Jonathan thing and its failure, on the other hand, as a way of weakening the President.
On the security situation, he recalled a report the other day that 130 people have died in his part of the country, and that the numbers continues to rise by the day in other parts of the country.
On the rise of the Boko Haram insurgency, Bishop Kukay said, “The real source of this crisis if you remember it’s that after the killing of Yusuf people went to court and they say the court awarded 100 billion to both families and people who lost their lives and lost thousands.  The government didn’t react to that; what happens is that when you think about what you could amid the debris.”
In that regard, he said, “People who have lost loved ones with no government interventions all you are doing is just recruiting more members for Boko Haram for the future.”
Saharareporters

This Nigerian Government Is Inherently Wicked And Innately Evil By Ayo Oyalowo

The government is so out of control. It is so bloated and infested with fraud and deceit and corruption and abuse of power. – Ted Nugent


The Nigerian government as led by President Goodluck Jonathan is extremely wicked and inhuman. This terrible character trait is consistently manifested in several forms. From a lukewarm and an “I don’t give a damn attitude” to bloody harvests of untimely mass deaths in the North Eastern part of the country, to massive looting and hemorrhaging of the treasury by various individuals serving in this government, it has been one sad tale of woe for poor citizens of Nigeria to another. This government doesn’t care about Nigerians and it is showing it in various ways and manners.
Two days before the jamboree dubbed “Centenary Celebration”, 59 Nigerian children were slaughtered in a callous and barbaric fashion by bloodthirsty demons of Boko Haram. The president of Nigeria meanwhile led a jamboree of dancing and drinking in Abuja, in the guise of centenary celebration. No thoughts were spared as to what agony the families of those children were going through. As I write, almost a month after, the president is yet to acknowledge; let alone visit/commiserate with families who lost their children. Indeed he doesn’t give a damn, does he?
Just recently, it came to light that over $20billion had been stolen from the State run oil corporation, the NNPC, through connivance with the minister of petroleum. But up until today, not one person has been suspended; neither is there any serious effort made to unearth what went wrong. The president rather surreptitiously suspended the man who alerted the nation to such crude and naked rape of the public treasury. And to divert the attention of Nigerians, the government and her cohorts created a severe artificial fuel scarcity situation which is still on, two months after. By so doing, Nigerians were kept busy and engaged so that the noise generated by the stealing of public funds by the Jonathan appointed officials will be drowned. But is this the right way to treat the citizens?
In India, the Jamnagar Refinery was commissioned in 36 months, housing the world’s largest refining complex with an aggregate refining capacity of 1.24 million barrels (197,000 m3) of oil per day, more than any other single location in the world. The total cost was around $10billion.
The Three Gorges Dam is a hydroelectric dam that spans the Yangtze River by the town of Sandouping, located in Yiling District, Yichang, Hubei province, China. The Three Gorges Dam is the world’s largest power station in terms of installed capacity (22,500 MW). This dam was constructed at the cost of $22.5billion.
Nigeria on the other hand imports refined fuel. Nigeria is the ONLY OPEC member country that wholly imports refined PMS for domestic use. In 15 years of PDP misrule, rather than fix local refineries and if possible build more, the federal government led by the PDP handed fuel importation licenses to their friends and cronies to continue to cheat poor Nigerians and make them suffer in the midst of plenty.
Imagine if the NNPC and the minister of petroleum had not stolen $20 billion, we could have built enough refineries to refine crude for domestic use and even export some. Nigeria would have made more money that way, but why should they do that when they could steal and buy exotic homes in Vienna and other places or buy private jets?
Imagine if they hadn’t stolen that $20billion, like China, we could have fixed our power problems. But why should they fix it when their friends are the ones importing diesel and generators? The clowns running Nigeria don’t care about Nigerians in general. All that matter to them is to steal more and get richer. Any wonder they deliberately destroyed the educational system? They’d rather send their children to schools abroad while ensuring the children of other Nigerians are barely educated to distinguish between right and wrong. The plan is to keep a large number of barely educated goons at home to serve their own children in the future. And their plan is working. If you doubt me, read the comment section after this write up. Some barely literate youths will be paid a pittance to engage in mudslinging and vitriolic abuse of the writer and others who are not afflicted by their apparent Stockholm Syndrome.
Few days ago, the minister of petroleum, was bold enough to declare that subsidy MUST be removed from PMS as the government can no longer sustain it. IMPUNITY of the highest order! Meanwhile she promised Nigerians that she will ensure a Turn Around Maintenance (TAM) of all the four refineries in Nigeria within 9 months. That was in January 2012. Maybe 9 months means something else to her. Billions were spent by her ministry, yet we continue to import PMS and NOBODY is asking her any questions.
Meanwhile, the AIT writes on the report on the House of Reps investigation to Minister Diezani thus: “The petroleum minister Alison is allegedly committing the sum of N130million monthly to the minister’s Challenger 850 aircraft and in two years has expended about 3.12 billion naira towards the upkeep of the private jet used solely for her personal needs and those of her family. Till date, the lease of the aircraft is said to have gulped about 10billion naira. Huge sums have said to have been used to fly the leased jet all over the world for leisure… all allegedly from public funds.”
According to the motion mover, Samuel Adejare: “This has been going on for two years and a lot of money has been committed–N10 billion. When I read this on the pages of that paper, that was on the 9th of march, what happened about one weekend ago where youths of this country gathered to look for 4,500 jobs, came to mind. Somebody serving this government is wasting that amount of money to hire a plane”.
That is the same woman who wants poor Nigerians on N18,000 monthly wage to pay more for petroleum products. Sadly, nothing will come out of the so called investigation as we all know she’s a co-president and Jonathan cannot fire her because they are in cahoots; illegally milking Nigerians while asking the poor, about 120 million of whom earn less than $2 daily, to cooperate with government and sacrifice by paying more for fuel.
The Nigerian government as currently constituted is led by inept, unconscionable and wicked individuals who have all failed to grasp the simple notion of patriotism and nationhood. They live in obscene opulence using public funds, while impoverishing Nigerians daily with their ill thought out actions and inaction.
As I write, another N20billion has been reported missing from the police pension fund. Add that to the initial N151billion allegedly stolen by Maina, who incidentally is still roaming free, from the same police pension fund.
Yet our “humble” president still believes corruption is overrated in Nigeria? Well, Mr. Jonathan may be right. Corruption is not much of a problem as the impunity displayed by the president and those whom he surrounds himself with. Stealing in this government is free for all. Their creed seems to be: “steal as much as possible so that you can guarantee a slap on the wrist as punishment”. Indeed only a fool steals millions in Nigeria because a small thief ends up in prison while the big ones get national honours and are now the Jonathanian branded “elder statesmen”, most of whom were also nominated by our “amiable” president to represent “us” at the national conference and chart a course for our future. What a future that is turning out to be!
The same impunity was at work on Saturday 15th March, 2014. when the NIS out of wickedness and unbridled greed invited over 500,000 applicants for an interview, knowing that the slots available were a mere 4,000. But they went ahead, collected the sum of N1000 from each applicant made up of mostly unemployed or underemployed youths. In their usual ill-preparedness, there was a stampede that killed about 19 young Nigerians. It is a week today, yet not one official or the greedy minister, Abba Moro has been fired. Governor Christie of New Jersey, in Jan 2014, fired his top aides who orchestrated a mere traffic jam. But here in Nigeria, President Jonathan merely warned a minister who killed 19 Nigerians out of criminal negligence. You be the judge.
While impunity and wickedness characterize the present government, they will do well to pay heed to James Madison and I quote: “Liberty may be endangered by the abuse of liberty, but also by the abuse of power.” The danger now is that when power is abused, it leads to chaos and chaos is such that may sweep the abusers away.
In conclusion, Nigerians are no fools and if subsidy in PMS is no longer sustainable, then those in authority must not only tell us the ill of subsidy, but they also must tell us why we cannot REFINE fuel for domestic use and even export refined PMS. If Singapore, a small nation without crude oil, has 3 excellent refineries in good condition and even exports PMS to Nigeria, then we have no excuse to continue to import PMS for domestic/local consumption.
Sadly, those at the helm of affairs in Nigeria are a greedy lot without shame; neither are their various policies made with altruism. Their belly is the god they worship. But as the saying goes “one day go be one day, monkey go go market…”

Oyalowo tweets via @Ayourb
Saharareporters

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