Alison-Madueke: Why FG Seeks Increased Take in Offshore Oil Blocks

Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke

By Chika Amanze-Nwachuku

The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, late Wednesday threw more light on why the Federal Government is proposing a review of the fiscal terms covering the Production Sharing Contracts (PSCs) for deep water fields in the draft Petroleum Industry Bill (PIB) currently before the National Assembly for consideration.

Speaking at the third Nigeria Investment Summit held in New York under the auspices of the African Business Roundtable, Alison-Madueke noted that the increase in government take in the deep offshore blocks from the current 61 per cent to 73 per cent was necessitated by prevailing realities in the global oil and gas industry.

“I like to state once again that the proposed increase of government’s take to about 73 per cent is not only competitive but considerate when we look at the scale of other entities around the world like Norway, Indonesia and even Angola with even higher government take,” the minister said.
Alison-Madueke added that based on the prevailing realities in the global oil industry, it was only natural to review the terms of the PSC to reflect the current trend.
The 1993 PSCs were based on $20 per barrel as the price of crude oil but since the start of production from the PSC fields, crude prices have risen multiple-fold, thus the need to review the terms.

The minister also stated that the new PIB provides for a refreshing fiscal regime, which has strong incentives for enhanced exploration of new frontiers, especially in the inland sedimentary basins as well as providing a strong support base for the complete activation of the Gas Master Plan.

Under the new arrangement, the fiscal regime is anchored on royalties and taxes, which will now be predicated on production as opposed to terrain and investment, as had obtained in the past.

Alison-Madueke called on investors across the world to embrace the various business opportunities that the oil reform law would offer.

The high level investment round table was declared open by President Goodluck Jonathan with former British Prime Minister Tony Blair and ex-US Secretary of State, Dr. Condoleezza Rice, as special guests.

Despite the minister’s explanation, international oil companies (IOCs) operating in the country continue to express reservations about the fiscal terms in the revised PIB.

Anglo-Dutch oil giant, Shell, which spoke out against some sections of the PIB on Wednesday, was joined by ExxonMobil Thursday.

ExxonMobil’s chief executive in Nigeria, Mark Ward, who also leads a grouping of oil majors operating in Nigeria, said industry players shared the view that the current bill jeopardises Nigeria’s bid to boost new investment and output.

“Quite frankly, the extremely large investments that are needed are seriously at risk under the proposed PIB terms,” he told a forum on the bill in Lagos.

If the bill passes without significant changes, “the government’s aspirations to grow the business and the industry will not be met,” he said.

Ward argued that the new bill could push the government’s take from oil revenue to above 90 per cent of all revenue.

“Nigeria is already one of the most onerous fiscal regimes and now the government wants to make it tougher? That is something we don’t understand,” Ward said.

Any hopes of expanding lucrative offshore production would be quashed if the bill passes unchanged, Ward said.
“For deep water, we’re done. There are no investments that can be supported under the current terms of the PIB,” he said.

Meanwhile, both chambers of the National Assembly have finished a first reading of the bill, paving the way for lawmakers to debate the long awaited legislation, Speaker, House of Representatives, Hon. Aminu Tambuwal, said.

According to Reuters, the lower house read the bill yesterday, Tambuwal said, while the Senate read it last week.

A previous draft never got through parliament, although this time the bill has the explicit backing from the president, who approved the latest draft in July.

This Day

“I am a courier for 20 people”: 24-year-old man headed for Dubai with $7m cash arrested at Lagos airport

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by Stanley Azuakola

The Economic and Financial Crimes Commission on Friday confirmed that it had arrested a 24-year old suspect, Abubakar Tijani Sheriff, at Murtala Muhammed International Airport in Lagos for trying to smuggle out $7 million (N1.12 billion).
Sheriff is a bulk currency smuggler. He was arrested on Thursday for attempting to take the $7million of suspected laundered cash to Dubai on behalf of 20 Nigerians whom he has not fully named.
However some reports say that he has named at least one of those who sent him on errand after undergoing interrogation on Friday.
A statement by the head of Media and Publicity of the EFCC, Wilson Uwujaren, said the suspect was caught at the point of boarding.
The statement said: “The 24-year-old was arrested at the Murtala Mohammed International Airport in Lagos en route Dubai, United Arab Emirates. He was apprehended at the point of boarding the plane by operatives of the Commission.
“When he was arrested, he declared that he had a total sum of $4.5million on him but thorough screening and search showed that he was actually carrying $7,049,444 (Seven million, Forty Nine Thousand, Four Hundred and Forty Four United States Dollars).
“He confessed that he was a courier for 20 individuals who hired him to courier the money for them to Dubai.
“Investigations by the EFCC showed that Sheriff is a regular traveller and one of several couriers of illegal cash suspected to be proceeds of crime. His claims in respect of his accomplices are still being investigated by the Commission.
“Travellers leaving the country are statutorily required to declare cash in excess of $10,000. However, it is not sufficient to declare excess cash, under the provisions of the Money Laundering Act, the onus is on the person making the declaration to explain the source of the excess cash and the reason for the export.
“Experience has shown that bulk cash smuggling, the world over, is usually associated with proceeds of crime as legitimately earned funds are usually processed through the banking system.
“Our experience in the last few years indicates an emerging trend of bulk cash smuggling to Europe, Middle East and North America with the attendant consequence for capital flight.
“Some Nigerian citizens are routinely arrested at airports in Europe and North American for currency smuggling though no such arrests have been recorded in the Middle East. But in all cases, the money is lost as they are never repatriated back to the country.”
YNaija.com

Governor Oshiomole charges FG to make judicious use of Ecological Funds

Edo State Governor, Comrade Adams Oshiomhole has called on the Federal Government to act fast and make judicious use of the National Ecological Fund in the management of flood disasters in the country.
The governor who made the call when the Director General, National Emergency Management Agency (NEMA) Alhaji Sani Sidi paid a courtesy visit to Edo State to ascertain the level of damage done by the flooding incidents in Etsako Central, Etsako East and Esan South East Local Governments said the state government will collaborate with NEMA to provide a solution.
The Governor said the situation in the flooded communities occasioned by the overflow of the River Niger is getting worse because more communities are affected and the water level is rising.
The governor noted that there are long term implications as farm lands have been destroyed, domestic animals have been killed adding that the a federal Government ought to do more than it has done.
The NEMA DG commiserated with the government and people of Edo State on the losses, both in human and material resources incurred as a result of this ongoing catastrophe adding that the flooding incidents which occurred in 23 states of the federation are a pointer to the growing intensity of climate related disasters.
BusinessNews

NCC empower telecom subscribers to report unfair practices by operators

Dr Eugene Juwah, the Executive Vice Chairman, Nigerian Communications Commission (NCC), on Friday urged telecommunications consumers in the country to protect their rights. Speaking at the First National Telecoms Subscribers Summit in Lagos, Juwah said they could do this by reporting to the appropriate authorities any unfair practice by the telecoms operators.
The summit with the theme ”Nigerian Telecoms Revolution: Consumerism as the Last mile Challenge” was organised by the National Association of Telecommunications Subscribers (NATCOMS).
Represented by Mr Tony Ojobo, the Director of Public Affairs, NCC, Juwah urged the consumers to take advantage of the Consumer Affairs Bureau (CAB), established by the commission to protect their rights.
“In a bid to implement this mandate, the commission established the Consumer Affairs Bureau (CAB) in September, 2001,” he said.
He said that one of the commission’s mandates was to protect and promote the interest of consumers against unfair practices from their service providers.
According to him, there is a paradigm shift from mere service provision to ensuring that consumer satisfaction ranks highest in priority, in the provision of ICT goods and services.
He added that the telecommunications umpire ensured that consumers were compensated when wrongfully billed/loss of service.
“The consumer occupies the central position in our scheme of things and comes top among all our stakeholders,” he said.
Juwah said that NCC had developed a Consumer Web Portal, serving as an interactive avenue to disseminate information on its activities and initiatives toward achieving consumer protection.
He said the portal was also to empower consumers and get feedback from them on the performances of service providers as well as the commission.
The President of NATCOMS, Mr Deolu Ogunbanjo said that the aim of the Advocacy Group was to foster understanding of consumer issues among stakeholders in the industry.
He said that NATCOMS had been monitoring and working with service providers on regular basis to ensure good quality service delivery.
Ogunbanjo added that the association was charged with the responsibility of educating consumers on the protection of their rights and other telecoms issues. (N
US laws, according to him, permit foreigners to own properties in the country and make money from such.
Owomoyela said, “The property market in the US was seriously affected by the global financial crisis. The economic downturn caused a mortgage crisis that made lots of properties lose their value. Lots of homes were foreclosed by the bank because home owners lost their jobs and could not pay their mortgage.
“Others owed more on their property than the worth of the property. This made banks to repossess lots of properties, which they must sell off at huge discount to recover their money.”
 BusinessNews

One week, one trouble: Arik flight held by passengers for alleged overbooking

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by Akan Ido
Arik Air is at it again with reports coming from an online news source indicating its flight out of Lagos to Benin was allegedly overbooked by sixteen passengers.
The passengers who were affected reportedly complained bitterly about the inconvenience and insinuated a deliberate attempt on the part of the Arik management to extort them.
The flight which, according to sources was scheduled to leave Lagos at 6:30am was delayed on the tarmac till noon with no definite time of leaving Lagos.
Reports say the sixteen passengers who were affected in the booking discrepancy have refused to disembark from the aircraft causing some form of confusion among the flight crew and other passengers.
The aircraft curiously named John Paul II is purportedly involved in the delay. No passenger has agreed to disembark and the pilots have refused to fly.
It is not clear how the booking anomaly came about but observers say it is a common practice of the airline to book more passengers than necessary in other to make undue profits.
Let’s see how this one plays out.
YNaija

£30,000 a year addiction to London: How Nigerians are becoming big spenders

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by  Susannah Butter

Visitors from the West African country are the UK’s fourth biggest foreign spenders, parting with an average of £500 in each luxury shop they visit — four times what UK shoppers typically spend.

Every year, Simi Osomo makes six trips to London from Nigeria. The 25-year-old spends about two weeks here and every day she goes shopping. Today she’s at the boutique shop Matches Townhouse in Marylebone with a personal shopper. “When it comes to shopping and Nigerians, I can tell you it’s just what we have to do,” she tells me while admiring the patterned dresses.

For Nigerians, London is a shopping mecca. Visitors from the West African country are the UK’s fourth biggest foreign spenders, parting with an average of £500 in each luxury shop they visit — four times what UK shoppers typically spend. When I ask Osomo how much a two-week shopping trip in London costs she makes a bashful face. “Ooh, should I really be saying this? It depends, but most times about £5,000.”
Osomo is wearing a green top from Zara that’s “the colour of the Nigerian flag”, blue skinny jeans and new Christian Louboutin shoes. Later today she’s going to buy an iPhone 5 for her sister.
“You can get lots of things in Lagos but they are cheaper here and you get to take a holiday and relax a bit. It’s only six hours away.” The number of Nigerian visitors to the UK increased by more than 50 per cent to 142,000 a year between 1991 and 2011, according to the Office for National Statistics. Nigeria is projected to become Africa’s biggest economy by next year and the world’s fifth most populous country by 2050, and London is cashing in.
Debenhams’ Oxford Street branch has put up signs in Hausa, one of the official Nigerian languages, and said customers from this part of West Africa are its biggest overseas spenders. Yet Osomo says it’s not just rich Nigerians who come over. “Middle-class people can afford to come and spend £600 on shopping in a week here. What I like about the UK is that it doesn’t discriminate. As long as you’re able to prove you have an income, accommodation in London and a return ticket, the authorities are more than willing to give you a visa. It’s closer than America and the customer service here is phenomenal.”
Back home in Lagos, the technology market has been flooded with fake products from China, which means more people are coming to London for electronic goods and are even taking items back to sell. “No one wants to spend more than 100,000 naira (£390) and find out it is fake, so they prefer to come over for a holiday and buy something they know is real and has a guarantee in case something goes wrong.”
Marks & Spencer is one of Osomo’s favourite shops. “I love their fajitas. You can’t get them in Nigeria. I also buy soy sauce and Thai green curry paste, which is good because it lasts for a long time. Oh, and Crunchy Nut cereal, Skittles, Maltesers and tea. There’s nothing like a British cuppa. I get Lipton, PG and green tea.” She likes the variety of London. “I love Zara, H&M, Topshop. But if I want something more high end, there’s Sloane Street.”
More than £3 billion a year is spent on high-end goods in London, according to the London Luxury Quarter Report, and it predicts this will rise to £4.5 billion by 2020, with new shops including Burberry’s flagship fuelling the trend. Luxury concierge services are also popular. Osomo is a client of Quintessentially, which organises shopping trips and parties for her and has an office in Lagos.
Although summer is the height of the shopping season, Osomo likes to come back for the January sales too. Her mother, a lawyer, and father, a businessman, often join her. She has just finished a law degree and is about to start a job in fashion journalism, which she hopes will give her enough holidays for trips to London. But flights can get booked up quickly.
“You don’t want to get the Lagos to London flight in July. It’s packed with parents and their kids making noise.” Return flights at high season start at about £369.
But what about getting her haul of shopping back from London to Lagos? That, says Osomo, is costly. “All I pack when I come over is one pair of jeans and three tops. I bring two big suitcases but I always have to get another one and pay for excess baggage. I never learn.” British Airways has increased its excess baggage charge on flights from London to Lagos from £40 to £97 per suitcase in the past year. “They must have realised we always put an extra bag in and thought they’d try to make money out of it,” says Osomo.
Fashion-wise, she still picks up the odd item in Nigeria. Six months ago Zara opened an outlet store in Lagos, and Mango has been there for about a year. “Zara is affordable because it’s an outlet but what I find is that things are a bit last season. Nigeria’s hot all the time so there are always maxi dresses and swimwear but the colours are boring and we lack variety. Customer service is not great and some shops can get really crowded, which is challenging.” There is a burgeoning online shopping industry in Nigeria too. Currently, ASOS is the only shop that ships to Lagos free of charge and everyone Osomo’s age uses it.
“Nigeria is a fun place, I’d encourage people to go. Shopping is evolving. In five years I think a lot of stores will come to Nigeria because there is a gap in the market. Ten years ago I never thought Zara would come to Nigeria. I believe in the next five years we will catch up. But I still love London and won’t stop coming here.”
YNaija.com

“He owes us 4-months’ pay” – Air Nigeria staff take Jimoh Ibrahim to court

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by Stanley Azuakola

Let’s face it: Nobody expected Jimoh Ibrahim’s words communicating his sack of all Air Nigeria staff and closing down the airline as the final word on the matter. Certainly there was more to come.
As promised, workers of the grounded airline have dragged the chairman, Jimoh Ibrahim and the chief executive officer, Kinfe Kanssaye to the National Industrial Court  in Lagos. They are challenging the illegal and wrongful termination of their employments, non-payment of salaries and non remittance of their 7.5 per cent pension scheme contributions.
(Read: Top 10 craziest quotes by Jimoh Ibrahim)
The workers’ suit was filed by their solicitors; Muhmad Adesina ESQ, and Ogunsany & Ogunsany.
According to the lawyers, the grouses of the workers against Jimoh Ibrahim and Kinfe Kanssaye include the following:
1. The unilateral and compulsory retirement of workers on September 5, 2012 did not follow due process as contained in the employment handbook as the news was only communicated to them through the media. They argued that the workers did not withdraw their respective services to Air Nigeria Development Limited as they did not write any letter to the company.
2. Prior to the termination of their appointments, the airline owed workers arrears of salaries; from May to August, 2012 and that some were paid for the month of May only, while others were not.
3. Prior to the alleged wrongful termination of their appointments, workers had contributed 7.5 per cent of their salaries to the Pension Contributory Scheme, while the company contributed 7.5 per cent. However, even though the company had been deducting this amount from the salaries of the workers, the company was not remitting same to the pension scheme as agreed upon by employer and employees.
4. The workers also claimed that the money deducted from their salaries under the Pay As You Earn(PAYE) up till the moment of their wrongful dismissal, could not be accounted for, as there were no evidence of payments to the appropriates authority.
YNaija.com