The Nation Newspaper

Category: Business

  • Production from Port Harcourt refinery hits 17m litres daily

    With the maintenance work carried out by the Nigerian National Petroleum Corporation (NNPC) at Port Harcourt Refinery, it now produces 17 million litres of different products per day, it was learnt.

    The new production level was attained as a result of the rehabilitation of the nitrogen plant of the 210, 000 barrels per day refinery, which has been dysfunctional for over a year.

    However, the optimisation of the refinery is being limited by the incidence of vandalism of the pipelines that supply crude and evacuates products from the refinery.

    Spokesman of the company Mr. Ralph Ugwu, had told reporters that the refinery produces about 7.5 million litres of premium motor spirit (petrol), three million litres of dual purpose kerosene (DPK) and 6.5 million litres of automotive gas oil (diesel).

    Ugwu said production from the refinery now contributes to the nation’s petroleum products supply to guarantee availability of fuel Nigerians. The development, he added is part of NNPC’s plan to reduce the volume of imported fuel especially petrol as well as subsidy paid by the government.

    Ugwu noted that the management of Port Harcourt refinery have activated processes to bring the critical units of the plant back into operation adding that the fixing of the Nitrogen plant has also paved way for the maintenance and putting other vital sections of the refinery into operation, including the Catalytic Reforming Unit (CRU) and Naphtha Hydro-treating unit (NHU).

    He said that when the planned turnaround maintenance of the refinery is completed, production would increase by about 30 percent.

    The Group Executive Director, Refineries and Petrochemicals, NNPC, Tony Ogbuigwe, commended the management of the Port Harcourt refinery for the commitment to ensuring increased output from the refinery and assured them of NNPC’s support to sustaining operation of the plant.

    The Managing Director of the refinery, Ian Udoh, said the members of staff of the company are committed noting that the modest success achieved was due to the foundation laid by his predecessor Ogbuigwe. He urged the staff to sustain the tempo despite challenges resulting from crude supply disruptions by oil thieves and vandals.

    On attacks on the pipeline, he said that 199 incidents were recorded product line from the refinery to Okrika Jetty in 2012 alone. He also noted that challenges of pipeline vandalism including pollution of the environment and economic loss.

    He also pointed at other concerns over the pipeline breaks to include environmental pollution and degradation, huge economic loss and possible fire outbreak in contiguous local communities.

    In view of the above challenges, Ugwu said the company has embarked on massive enlightenment campaigns in its various host communities stressing the dangers and effects of pipeline vandalism and product adulteration to health, safety, environment, machinery and the economy.

    “The management of PHRC passionately appeal to opinion leaders and government agencies to come to its aid in curbing the activities of vandals through the enlightenment of the citizens to enable the company deliver on its mandate of ensuring optimal and sustainable production of refined petroleum products for the benefit of all Nigerians,” Ugwu said.

  • Customs, exporters battle over EEG

    The Customs and the Federation of Agricultural Commodity Association of Nigeria (FACAN) are bickering over the implementation of the Export Expansion Grant (EEG).

    FACAN accused Customs of rejecting Negotiable Duty Credit Certificates (NDCC) for payment.

    But Customs denied the allegation, claiming that some members of the association are misusing the grant.

    The Federal Government introduced EEG in 2005 and adopted the use of NDCC for payment of import duty for some machinery and critical raw materials, to cushion the effect of infrastructural deficiency faced by exporters.

    The Customs said it has not stopped the use of the certificates for payment, but only embarked on close monitoring, to check abuse.

    FACAN’s National President Dr Victor Iyama said the government gave the grant for the payment of import duties.

    He said some exporters were not able to redeem their EEGs for years because of the Customs’ refusal to honour their requests.

    Some exporters, he said, had not been able to enjoy the grant because of the Customs.

    He said: “It is affecting their revenue collection because whenever they take it, they also lose their own seven per cent of their revenue.

    “It’s a well-designed incentive by the Federal Government to grow non-oil export sector. There is still a clog in the wheel of progress. There has always been one problem or the other.

    “The Federal Government gives EEG in form of NDCC’s; that is, the Negotiable Duty Customs Certificate. It can only be redeemed through payment of import duties.

    “For quite some time, exporters have been having a running battle in disposing the certificates because as an exporter you can either use it to pay for duties for the goods you have imported or sell it to a third party to pay with, of course, a discount.

    “But for some time, it has been difficult because the Customs has been a clog in the wheel of progress because they are saying that it is affecting their own revenue collection because whenever they take it, they also lose their own seven per cent revenue, which is the normal seven per cent they get from the accrued revenue.’’

    Iyama said the EEG is not like subsidy. He urged the government to assist in sustaining the growing sector.

    He pleaded with the government to instruct the Customs to work with the panelists set up to disburse the EEGs to the exporters.

    “The people who make up the panel are the Central Bank of Nigeria (CBN), the Ministry of Finance, the Nigerian Export Promotion Council (NEPC) and the Customs. The CBN checks the fact that you have exported and repatriated the funds through your banks, while the Customs checks that you have shipped them,” he said.

    Customs’ Public Relations Officer (PRO) Mr Wale Adeniyi told The Nation that some of the exporters were using the NDCC for purposes not meant.

    Customs is concerned because some members of the group use it to bring exotic cars into the country and that is illegal, he said.

    “I am not aware of any restriction or stoppage of the use of the certificates, but what we are doing is close monitoring, to stop abuse of the policy.We are only monitoring the implementation to ensure that it is in line with the objectives of the scheme,” he said.

    “Discussion is on-going that it should form part of our revenue. But we are concerned that some people are using it for wrong purpose. None of our commands will reject it once it is genuine. We don’t reject them,” he added.

  • Labour blames govt for inefficient electricity metering

    •Minister explains payment for meter 

    The National Union of Electricity Employees (NUEE) has blamed the Federal Government for the inability of the successor companies from the Power Holding Company of Nigeria (PHCN) to ensure effective metering of its customers in the country.

    The National Secretary of NUEE, Comrade Joe Ajero, said the dearth of meters for electricity consumers in the country is because there is no company that manufactures meters in the country.

    Ajaero blamed the government during the inauguration of the electric power system simulator and mechanical training workshop at the Ijora Regional Training Centre as well as the newly upgraded 36-room executive hostel at Akangba Regional Training Centre, both in Lagos, by the Minister of State, Power, Hajia Zainab Ibrahim Kuchi.

    The facilities are owned by the National Power Training Institute of Nigeria (NAPTIN).

    Ajero said the inability of the Federal Government to build meter manufacturing companies in the country caused the inconstancy pronouncement by the National Electricity Regulatory Commission (NERC) on payment for meter. The NERC Chairman, Dr. Sam Amadi, had initially told Nigerians that meters would be issued free of charge but a few months later, he reversed himself and said that meters would be paid for.

    The NUEE scribe criticised Nigeria’s total reliance on imported meters for consumption in-country. “Most of the meters that are in use in the country were imported by government which contributed immensely to the scarcity of meters we experience. The country would no longer continue to import meters. As big as we are as a country, we should at least have two to three meter manufacturing companies.

    “Government should urgently find lasting solution to the issue of meter manufacturing in the country before the sector is finally handed over to the investors.”

    The Minister of State for Power, Hajia Zainab Ibrahim Kuchi, however, quickly debunked what Ajaero said. She said that the allegation that Nigeria has no meter manufacturing company is untrue, adding that Nigeria has two metering manufacturing companies in Lagos and Zaria in Kaduna.

    Speaking on the reports of reversal of free meters for electricity consumers, Kuchi said that the government could not afford to buy the meters and give them free in view of budgetary constraints.

    She said: “Instead of the government to buy and give the meters free, we said let individuals take ownership, buy these meters and install them so as your tariffs are being done, the cost of meters will be deducted in terms of supply of the electricity the customer consumed. That is what the Nigerian Electricity Regulatory Commission (NERC) is saying. It is not that NERC is reversing self. We wanted to go one way to do free metering for all Nigerians, then we realised the quantum cost in terms of budgeting, which we don’t have.

    “And we have privatisation round the corner, so how do we commit the successor companies? We cannot commit them so we are looking for a way out. The metering should continue supply of light and tariffs can be sequenced into payment and then when the successor companies come, we just flow with it instead of committing them and when they come it becomes an issue; that is all NERC is saying.”

     

  • NIMET gets weather calibration lab

    The Nigerian Meteorological Agency (NIMET) Weather Instrument Calibration Laboratory at four airports are now operational, its Director-General, Dr Anthony Anuforom has said.

    They are Murtala Muhammed Airport Ikeja, Nnamdi Azikiwe International Airport, Abuja, Aminu Kano International Airport, Kano and Port Harcourt International Airport.

    During an interview in Abuja, he said the laboratory was completed last year, adding that NIMET engineers have been trained on the use of the laboratory.

    He described the laboratory as a component of equipment profile that will stimulate safety and assist the agency in giving accurate measurement of weather conditions.

    The laboratory, he said, is designed for correcting instrument errors through calibration, for more accurate measurement of weather variables.

    He said: “If you have a wind instrument, if you don’t calibrate, you cannot guarantee that the variable is accurate.”

    Anuforom said five Upper Air Stations are functional in the country as against the single station a few years ago.

    He spoke of plans to fix two air stations that would be functional soon.

     

  • Pilots can make air returns, say experts

    Should pilots make air returns mid-flight? Yes, thay can, say experts to save passengers.

    Accrding to them, returning a plane to the airport, from where it took off, if there is any problem mid-air, is better than subjecting the passengers to the danger of a crash.

    The respondents are Dr Harold Demuren, the Director-General, Nigeria Civil Aviation Authority(NCAA); Captain Dele Ore,President, Aviation Roundtable; Mr Chris Aligbe, an aviation consultant and Mr David Babatunde, General Manager, Medview Airlines.

    They said passengers should not be disturbed over the matter, because a pilot takes charge of what happens during a flight.

    The experts spoke against the background of a recent air return by the pilot of Medview Airlines Boeing 737-400 on its Lagos-Abuja-Yola flight 15 minutes after it took off from the Murtala Muhammed Airport, Ikeja, Lagos.

    Demuren said air return is a standard industry practice that pilots embark upon, at any point in a flight, they realise that during either due to weather, mechanical for safety reasons. Such return may be informed by weather or mechanical reasons, he said.

    Pilots, he said, should be praised for such an action, because failure to take act could have adverse effects on the aircraft.

    The NCAA boss said it was wrong for people to suggest that the rising incidence of air returns by some airlines, is evidence of lack of safety.

    Aligbe said: “Air return is a normal development in the aviation sector. Travellers should not be afraid; it should not create unnecessary panic in the sector. It should not be viewed as a sign of lowering standards of air safety.

    “In the last instance, when Medview Airlines had an air return, the industry reacted appropriately. The reaction from the Federal Ministry of Aviation was spontaneous. Even the airline involved – Medview Airlines – also responded to the issue. Rather, I think the pilot should be commended for his professionalism. It was caused by power surge in one of the engines, which resulted in a bang. The pilot shut down the affected engine and initiated an air return. That is enough evidence of a knowledgeable and professional pilot.

    Ore said: “First, we commend the professionalism and airmanship exhibited by the crew of aircraft. The capable handling of the situation makes the crew members to be an asset to the industry. When an engine aircraft has lost the only engine, then there could be cause for concern, but if one engine fails on a twin-engine aircraft, there should be no alarm if the crew members have been well- trained. An air return could be as a result of any one or combination of the following as highlighted in Part 5:5:1:4 of the Nigerian Civil Aviation Regulations 2006 entitled: “Reporting of failures, malfunctions and defects which may occur after the aircraft must have been airborne.”

    Ore listed some of the conditions that could lead to air return to include fires during flight and whether the related fire-warning system properly operated; fires during flight not protected by a related fire-warning system; false fire warning during flight and an engine exhaust system that causes damage during flight to the engine, structure, equipment, or components.”

    The General Manager, Medview Airlines, Mr David Babatunde, said: “The professional decision, which is in consonance with global practice, is a demonstration of our commitment to safety of flights and passengers. We give kudos to the passengers on board the flight, who remained undaunted and waited for the airline to provide an alternative aircraft to fly them to their various destinations – Abuja and Yola.”

    The Chief Pilot of Aero Airlines, Captain Russell Leefoon, described air return as a challenge that calls to test the competence of the pilot in command of the flight.

    Leefoon said: “My word of assurance is that air return does not really matter. Passengers should not panic. It does not mean that the aircraft is bad. It is for the competency of the pilot. Is not that the engine has failed.?The engine has not failed, but we return for maintenance, to make sure that everything is put in place. Air return is not necessarily something that should cause panic, but something that should be corrected and get thing right.”

  • NAMA to begin 24-hour services at three airports

    The Nigerian Airspace Management Agency (NAMA) will start 24-hour air traffic management services at three airports next month.

    According to its Managing Director, Mr Nnamdi Udoh, the airports are Yola, Owerri and Enugu.

    He said the decision was taken after consultation with the authorities.

    The agency, he said, would take off after the installation of air field lightings.

    He said NAMA would negotiate with the airport authority and airline operators who wish to operate night flights at the airports.

    He said: “The reason we are creating 24-hour operations is to take care of late operations at such airports. Such airlines will have to pay NAMA money, but if I make it 24 hours, I think that more planes will come and pay money. So, declaring 24 hours is good; that was what informed our decision. We want to provide manpower; we want to make more airlines to fly.

    “It will help to take care of situations were airlines do not have to get worried once it is 6 pm. Pilots do not need to be running around because you want to go and land in Owerri before they close. We are going to make all these airports 24 hours from March when the manpower is available.

    “There will be notice to airmen for the airports. Critical among them is Yola, Owerri and Enugu. We want to do that so that the airlines can schedule their operations. We will talk with them and find out which airport they want and any airport any operator wants will be available 24 hours.There is no point keeping it open and we don’t use it because most of those airports run on diesel.”

  • Amnesty: 64 ex-militants get underwater, diving training

    The Federal Government’s amnesty programme yesterday yielded result with the graduation of 64 pardoned ex-militants of the Niger Delta from the diving school in Lagos.

    The ex-militants were trained through a joint venture partnership between the Nigerian Navy and Mieka Dive Limited at the Underwater Warfare School, NNS Navtra Quorra Command, Apapa, Lagos for 28 weeks.

    Speaking during the graduation ceremony, the Nigerian Navy Diving Coordinator, Captain Tajudeen Osoba, said the graduating students exhibited commitment and impressive behaviour. He said that divers are people who are specially trained to stay and work underwater for considerable period adding that no incident was recorded during the period.

    He noted that the students went through five classes of training, including the swimming pool, open water, commercial trooper, class 1 and 2 commercial training. He also noted that it was gratifying that within the 28 weeks no incident was recorded.

    The Managing Director, Mieka Dive Limited, Mr Pondi Kestin, said that the public, private sector partnership between the two organisations brought about success of the training programme adding that the training institute gave its best.

    He said: “I want to thank the Flag Officer Commanding NNS Navtra Quorra Command, Apapa and his men for the synergy, understanding and doggedness at ensuring the success of this first batch of trainees. We hope that this same gesture be extended throughout the remaining part of this partnership.

    “I thank the Federal Government, Special Adviser to the President on Niger Delta and Chairman, Amnesty Committee, Hon. Kingsley Kuku and the Minister of Education for their foresight which brought about this training programme. My desire is for them to continue this partnership as in this first phase.

    He advised the graduating trainees to be discipline, determined with positive attitude. “The experience you have garnered here must be put to good use to enhance your communal and socio-economic life. Henceforth, you must be good ambassadors of the Nigerian Navy and Mieka Dive Training Institute.

    “In the next batch of training, mistakes encountered previously would be completely avoided. An improved form of synergy will be explored to bring about better results, because success for us, is continues improvement in what we do.”

  • ‘There’s need to maintain standards in LPG sector’

    The government and stakeholders are making efforts to develop the liquefied petroleum gas (LPG) sector in the petroleum industry. But the plan by operators to reduce standards is akin to sitting on a keg of gun powder for unsuspecting and ignorant consumers and should be resisted, writes EMEKA UGWUANYI Assistant Editor (Energy).

     

    The liquefied petroleum gas (LPG) sector, undoubtedly, requires investment, incentives and encouragement, not only from the oil and gas industry, but also from the Federal Government to deepen the country’s consumption level and support for existing and new investors to grow the sector.

    The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, at the LPG strategic workshop and conference held in Abuja in December, said Nigeria is ranked among the lowest consumers of LPG in Africa, having just 110,000 metric tonnes (MT) per annum as national consumption. It is in view of this that she said growing the LPG market is a critical component of the nation’s Gas Master Plan.

    She said as a result of infrastructure challenges, the country cannot consume the 150,000 metric tonnes of LPG per annum earmarked for the domestic market. She noted that upstream gas suppliers were directed to dedicate an agreed volume of LPG product to the domestic market, which made the Nigeria Liquefied Natural Gas Limited (NLNG) to release 150000 MT of LPG per annum to the Nigerian domestic market.

    In an effort to address these challenges to open up the LPG market for increased utilisation and economic growth, the government came up with the LPG National Strategic Policy, which stressed safety, affordability and logistics but the Nigeria LNG Association plans to rubbish the efforts by reviewing the standards set by the Standards Organisation of Nigeria (SON).

    The Standards Organisation of Nigeria (SON) had also told importers of LPG cylinders to have a definite programme for maintenance of cylinders with trained personnel that will be inspecting and re-qualifying the cylinders. It said all importers of cylinders should sign an undertaking for taking full responsibility of the maintenance and requalification of such imported cylinders, adding that all importers seeking the renewal and approvals should meet the requirement.

    SON also directed that the expiry dates of cylinders shall be engraved or embossed on all cylinders. Cylinders have 15 years life span, it said.

    But the way Nigeria LPG Association is going about it showed it plans to alter the standards to the detriment of consumers of the product, which could endanger lives of users and the economy.

    The Nation gathered that members of the association plan to meet this week to discuss how to adjust the requirement set by SON in terms of mixture of components that make LPG.

    The two major elements that make up LPG are propane and butane. Propane has high pressure but it is about 45 per cent cheaper than butane, which has low pressure, but more costly. The SON’s requirement is that butane and propane should be mixed on equal measures of 50 per cent each. But investigation by The Nation showed marketers can mix the two elements at any percentage, or can use one element wholy, that is, either 100 per cent propane or butane.

    The danger in this, is that propane exerts a lot of pressure on the cylinder and considering the age of most cylinders used in Nigeria, this could spell doom because the likelihood of cylinder explosion will be very high.

    Investigation also revealed that using only propane or butane or a mixture of both at unspecified mixture is not the issue, but the danger is in the age of the cylinders. Experts in the industry said that the standard across the world is that all cylinders be built to propane specification. The safety in this measure is that if a marketer mixes the two elements on equal or different measures or 100 percent propane or butane, the end-user is guaranteed of his or her safety.

    Why the oil and gas industry regulators and SON should take the acquisition or importation of standard cylinders seriously is that there have been reports of seizure of imported sub-standard cylinders into the country by unscrupulous entrepreneurs. The regulators including SON should also refocus attention on the existing cylinders in-country and find a way of phasing out or stopping re-entry of old and expired cylinders into circulation and the market.

    It was also learnt that there was a time the SON directed that the cylinders that should be used in-country should be the propane standard so that whatever LPG a marketer imports or buys would be safe for use but most of the operators that import and use substandard and aged cylinders kicked against the directive. They insisted that the 50-50 propane and butane mixture should continue to apply, however, many of them, it was learnt, are not faithful to the specification in order to make more profit putting the lives and homes of end-users in danger.

    Now that the Federal Government wants to intervene on sustainable basis to grow the LPG sector with the promise of importing cylinders, which will be sold to Nigeria2ns at a giveaway price to deepen consumption and ensure penetration of usage into the rural areas, standardised cylinders specified to take only propane should be the best option so that whatever grade of LPG would be safe for consumers.

    Therefore, as the Nigeria LPG Association, meets this week to deliberate on the review of SON’s requirement on LPG, SON, Department of Petroleum Resources and the Ministry of Petroleum Resources should insist on importation and use of cylinders that should take 100 percent propane so that whatever grade of LPG sold to end-users should guarantee their safety. It is also good coincidence that the Nigeria LPG Association invited the SON to the meeting this week. SON should refuse to be compromised because the standards were laid down for use in Nigeria was produced by experts. The technical committee that worked on the Standard for Liquefied Petroleum Gas (LPG) done under the Nigerian Industrial Standard had representatives from companies such as Petroleum Academy Limited, Mobil Oil, Chevron Oil Plc (now MRS), Total Plc, Oando, DPR, Consumer Protection Council, Nigerian National Petroleum Corporation and Conoil Plc, among others.

    Besides, the Ministry of Petroleum Resources’ LPG National Strategic Policy had made provision to enhance growth of the LPG sector by creating programmes that will lead to phased reduction in subsidy, reduction of use of kerosene and increase in use of LPG, as well as subsidy for LPG, among others.

  • NACCIMA seeks interest-free loans

    NACCIMA seeks interest-free loans

    THE Nigeria Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA) has said if the Federal Government is sincere in assisting the Organised Private Sector (OPS) this year, it should avail interested businesses opportunities of interest-free banking facilities through appropriate lines of non-interest credit from the Islamic Development Bank and other funding windows.

    Speaking with The Nation, the President, NACCIMA, Dr Ademola Ajayi, said the factors militating against getting funds by business operators should be examined and fashioned out appropriate remedy to ease the problem by the Central Bank of Nigeria (CBN).

    He added that the government through the CBN should ensure that the planned agency banking policy becomes successful and ascertain the learning points before rolling out the policy.

    Ajayi said: “The government should intensify her support to businesses by fast-tracking a sort of special intervention policy fund to woo investors and entrepreneurs.

    “The enabling environment should also be laid for businesses to take advantage of the recent non-interest banking facility in the country.”

    To guarantee the growth of businesses as well as the economy, Ajayi advised that governments as well as the Chamber of Commerce should not stop working together, only by doing so will the transformation agenda be realised.

     

     

     

  • ‘Heritage Oil did not acquire oil block’

    ‘Heritage Oil did not acquire oil block’

    The involvement of Heritage Oil Plc in the acquisition of oil mining lease (OML 30), one of the onshore assets divested by Shell Petroleum Development Company of Nigeria Limited (SPDC), followed due process, Chairman, Shoreline Natural Resources, Mr Kola Kari, has said.

    There were alleged reports that the founder/Chief Executive Officer of Heritage Oil Plc, Tony Buckingham, did not follow due process in the acquisition of the OML 30 oil block.

    But Karim dismissed all the reports, saying they were unverified as Heritage Oil didn’t acquire the block. He also said if Buckingham is what the reports said, he couldn’t have been sitting on a company quoted on the London and Toronto Stock Exchanges, which is also a member of the FTSE 250 Index.

    He explained that Heritage Oil only holds equity shares in Shoreline Natural Resources, the preferred bidder for the divested OML 30. He advised that foreign investors be encouraged by writing verified news stories and not the ones that would discourage them, especially now that the government wants increased indigenous participation in the oil and gas industry.

    Conoil was initially announced as the preferred bidder for the asset having offered the highest bid, but it was gathered that the company backed out of the deal because it insisted on being the operator of the field, which was not part of the transaction because Shell only divested 45 per cent, which it held in oil block with Total and Agip. Fifty-five per cent remained with the Nigerian National Petroleum Corporation (NNPC).

    In an interactive session with reporters in Lagos, Karim said: “Shoreline Natural Resources Limited, a special purpose private Nigerian company formed between a subsidiary of Heritage Oil and a local Nigerian partner, Shoreline Power Company Limited, which acquired a 45 per bcent participating interest in OML 30, with a 45 per cent interest in other assets under the joint operating agreement for $850 million. The remaining 55 per cent participating interest is held by the Nigerian Petroleum Development Company (NPDC), a subsidiary of NNPC.