The Nation Newspaper

Tag: GOVT

  • PENGASSAN criticises govt over NNPC’s JVs non-funding

    Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Federal Government to pay up its counterpart fund (cash call) in the Nigerian National Petroleum Corporation (NNPC) Joint Venture (JV) operations with the oil firms, claiming non-payment is negatively affecting their operations.

    Speaking in Lagos on the government’s inability to fund JV operations and unpaid arrears of cash calls, its Public Relations Officer, Emmanuel Ojugbana, said the JV between the NNPC and international oil companies (IOCs) accounted for more than 60 per cent of Nigeria’s crude oil production.

    Ojugbana said: “The JV structure is an average of 55 per cent for the NNPC and 45 per cent for private oil companies. Unfortunately, despite the fact that NNPC has a larger chunk of the proceeds from the JVs, it has always been defaulting in payment of its own counterpart funding of projects. Exploration has been greatly recessed by the challenge of funding the operating budget and cash call obligations. Over 50 per cent cut in JV funding and irregular release of cash call has made the operators to scale down on the whole spectrum of the E&P operations.

    “Oil companies are owed billions of dollars in cash call arrears putting the jobs of our members and other workers in the industry in jeopardy as companies easily rationalise disengagement of staff and reduction in welfare packages as being due to lack of funds based on outstanding funding arrears.’’

    “As workers in the industry and Nigerians, we are concerned about this perennial problem and demand that the government should make funds available to clear cash call arrears owed to oil companies so as to restart stall projects as well as bring in new investments into the sector, which will translate to creation of more jobs in the industry. Once JV work programmes and budgets are approved, the government should adhere to it for the duration of the year, adding that there should be no cuts in the JV budget during the year when work programmes are already implemented as it has adverse effect on such JV operations.”

    Ojugbana suggested that once JV work programme and budgets are approved, the government should adhere to it for the duration of the year, adding that there should be no cuts in the JV budget during the year when work programmes are already implemented as it has adverse effect on such JV operations.

  • Steel firm asks govt to impose protection tariff

    Africa’s biggest steel maker ArcelorMittal South Africa said unless the government imposes tariff duties to counter cheap Chinese steel imports, it may be forced to downscale or close one of its operations.

    Shares in the world’s largest producers of steel are trading at around their lowest levels in more than a decade and the company has said South Africa’s high labour costs, poor rail infrastructure and slowing economy have forced it to consider cutting back operations and jobs.

    “This company has made losses for five or six years, I don’t have an open cheque book,” Paul O’Flaherty, ArcelorMittal South Africa chief executive said.

    O’Flaherty confirmed that steel baron Lakshmi Mittal was in South Africa in June, where he briefed President Jacob Zuma’s government on the challenges facing the industry and asked for intervention to counter cheap Chinese imports.

    He said ArcelorMittal had applied for tariff protection of between 10 and 15 percent and that the government appeared “sympathetic” to the request.

    “By making the announcement of a potential closure of Vereeniging, is not putting a gun to anybody’s head, it is not a statement, it’s a reality of business,” O’Flaherty said.

    “When you have got bleeding, you must stop the bleed.”

  • Govt urged to increase oil output above 2.2m bpd

    Govt urged to increase oil output above 2.2m bpd

    The Federal Government has been urged to increase crude oil production from the current level of between 2.2millon and 2.3 million barrels per day (bpd).

    The low output has made it difficult for the government to generate enough revenue for socio-economic development, data from the Nigerian National Petroleum Corporation (NNPC) has shown.

    The data showed that the country’s crude production has been less than 2.5mpd, while the global oil downturn persists. It is in view of this development that the Society of Petroleum Engineers (SPE), Nigerian chapter, advised the government to ramp up oil production by engaging in more  drilling and exploration activities.

    Speaking in Lagos during a briefing to herald the 2015 Nigeria Annual International Conference and Exhibition (NAICE), its Country’ Chairman, Emeka Ene said the need to buoy oil production became necessary in order to reduce the impact of global oil recession on Nigeria.

    He said: “There is urgent need by the government to improve daily oil production via drilling more wells. The oil in the Gulf of Guinea holds more prospects for Nigeria. However, the need to optimise the potentials in the nation’s oil and gas industry by drilling more wells would go a long way in boosting production. It is better for Nigeria to drill more oil wells during a down cycle period than a booming period. This is the only way we (Nigeria) can have more to sell and make more money during recession.’’

    According to him, the industry operates in a cycle, stressing that there are upside and downside period in the sector.

    “There was a period when oil was $11 per barrel before the price moved to $40, $50 and over $100 per barrel. Later, the price fell to below $50 per barrel. So, if we increase the volume of oil production, the country would benefit in the long- term no matter the happenings in the international market.

    Ene said activities in Kuwait and other oil producing nations in the United Arab Emirates (UAE) are all time hard, adding that the development made  the country to try   investing billions of dollars in the industry.

    He said while UAE is putting in place measures in place to cushion the effects of the global oil downturn and further improve production.

    He said Nigeria should do something over a long-term period to address problems in the industry.

    Ene said the resuscitation of the industry is necessary in the light of decreasing oil production and revenue, adding that the government has taken steps in this direction.

    On the conference, Ene said NAICE 2015 conference, being the 39th edition, will hold from between August 4 and 6, at the Expo Centre, Eko Hotel and Suites, Victoria Island Lagos. The theme for this year’s conference is “Natural Gas Development and Exploitation in an Emerging Economy – Strategies, Infrastructure and Policy Framework,” he said.

    The main focus of the conference is “Sustainability, Infrastructure and Framework in an emerging economy” with a focus on natural gas development and exploitation, he said, adding that there will be workshops on marginal field, among others.

    Expected to speak at the event are the Vice President,  Prof. Yemi  Osibanjo, SAN,  Lagos State governor, Mr. Akinwunmi Ambode,  Group Managing Director NNPC, Dr. Joseph Thlama Dawha, Mr. Helge Hove Haldorsen, Vice President, Strategy & Portfolio Development & Production, North America, Statoil, Mrs. Elisabeth Proust, Chief Executive Officer, Total Exploration & Production, Nigeria, and Mr. Clay Neff Jr, Chairman & Managing Director, Chevron Nigeria Limited.

  • Assist poultry farmers, govt urged

    The Federal Government has been urged to provide financial  protection for   poultry producers   against  possible  losses as a highly pathogenic strain of avian influenza forced producers to kill millions of chickens.

    Deputy Director, the Department of General Management, Agricultural and Rural Management Training Institute (ARMTI), Dr  Ademola Adeyemo,  said   avian flu is causing significant supply chain problems  and  that  it could  affect   farms   delivering   strong financial performance.

    He said producers need to be empowered to step up efforts to keep their chickens from getting infected and prevent spreading the disease.

    He  said  the government  should  establish a special fund  for poultry farmers to mitigate the effects of disaster, and also provide buffer for animal health programmes and  farm  services.

    According to him, though the  government  has   compensated  poultry producers for losses  following   Avian Influenza (AI) outbreak earlier in the  year, he  said  the industry needs  more  to  take the brunt of the impact with several losing chickens.

    He  said  the government   fund would   help farmers recover from flocks hit by bird flu, adding that poultry farmers hit hard by the disease will struggle to get back to business He  said disaster loans will help them, in part, to rebuild their operations and revitalize their industry.

    He urged  the  government  to fund  the fight against AI on immediate and long-range needs.

    He urged   poultry owners have been urged to be vigilant for signs of AI following the outbreak in England.

    He said poultry owners need to keep a look out for any signs of the disease. These include respiratory distress, diarrhoea, fewer eggs being laid, loss of appetite and blue discolouration of neck and throat.

    He urged   poultry keepers should continue their efforts to monitor their birds for any signs of disease. Avian influenza is a notifiable disease, and so any suspicion should be reported immediately.

     

  • Expert advises govt on housing

    The Nigerian-British Chamber of Commerce (NBCC) has called on the government to come up with viable legal framework for real estate sector to provide affordable houses for Nigerians.

    The Managing Director, UACN Property Development Company Plc (UPDC), Mr. Hakeem Ogunniran, spoke at the NBCC Breakfast Meeting in Lagos.

    Speaking on a topic, Real Estate: an agenda for the new government,  Ogunniran identified unavailability of titled land, multiplicity of regulatory authorities with oversight functions, unfriendly approval, lack of infrastructure, poor funding and labour shortage  as some of the challenges confronting  housing development.

    He said most of the problems were as a result of lack of clear legal framework for the industry. He however advised the government to enact quality laws that would pave way for affordable housing.

    Ogunniran explained that affordable housing is possible with a new approach in which the government would be responsible for the provision of land, infrastructure and enabling environment for investors.

    “At that platform, we would have financials, developers and other regulatory agencies who will make it easy and cheaper to deliver those houses at a price point that is affordable by the people in that category.Under the present dispensation it is difficult to deliver houses in that category because you have to buy your land in the open market, apply for permission and approval in the same way, pay all the fees, go through custom  without any concession,”  Ogunniran explained.

    He said Nigeria is ranked 86 out of 102 in the Global Real Estate Transparency Index, adding that this was not good enough. He cited success recorded by Kenya in the sector, urging Nigeria to emulate.

    President, NBCC Prince Dapo Adelegan, said with the population of over 170 million, Nigeria will need about 16 million housing units to shelter its citizens since over 50 per cent of people are either homeless or live in inadequate houses.

    He said it had become obvious that the government could not  meet this crucial need of the people, hence the need for public-private partnership.

    He said: “It is important to have some public-private partnership arrangements to come up with an ingenious ways to build cheaper homes and provide affordable mortgages to the citizens. NBCC will collaborate with UPDC to pursue passage of viable legal framework at the National Assembly to enhance provision of affordable houses for Nigerians.”

  • N291b subsidy debt: Govt, marketers in waiting game

    After a stakeholders’ meeting convened by the government early last month when the oil marketers were promised reimbursement of their outstanding fuel subsidy, the marketers are yet to hear from the government. The marketers have also decided to continue to quietly wait despite the government’s “worrisome” silence.

    The Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN), Mr. Obafemi Olawore in a telephone chat with The Nation, said since the meeting with the government, they (marketers) have not heard from them (government). He said: “We have met with the government and they promised to pay but we have not heard from them since then.” He refused to make further comment on the issue.

    The implication of non-payment of the debt is that the interest has continued to soar. As at the time the Federal Government made the last payment in April, the outstanding was a little above N200 billion but by end of May the Executive Secretary, Depot and Petroleum Products Marketers Association (DAPPMA), Mr. Olufemi  Adewole said the debt has gone up to N291 billion. The major marketers and DAPPMA members are jointly owed the subsidy debt. Therefore, with the increasing interest on the loan, the debt will by now be well over N300 billion.

    The marketers have since May refused to make further imports of fuel. They have insisted that until the government clears the arrears, they will not import. Currently, it’s only the Nigerian National Petroleum Corporation (NNPC) that imports and the Corporation only has the capacity to meet 50 per cent of national demand of about 40 million litres per day of premium motor spirit (petrol). The situation accounts for the recurrence of scarcity and selling of the product above regulated price of N87 per litres by some filling stations especially those owned by independent marketers.

    To ease distribution and make the product accessible to consumers, NNPC gives the marketers part of its imports to sell in their retail outlets. NNPC doesn’t have adequate retail outlets that will enable fuel consumers access the product.

    The Permanent Secretary, Ministry of Petroleum Resources, Mr.Taiye Hassan Haruna at the beginning of last month, had a closed door meeting with the ministry’s agencies and stakeholders in the oil and gas industry including members of MOMAN, DAPPMA, Pipelines and Products Marketing Company Limited (PPMC), Petroleum Tanker Drivers (PTD), members of the National Association of Road Transport Owners (NARTO) and the Department of Petroleum Resources (DPR).

    The stakeholders reached an agreement to ensure steady flow of fuel but with a promise from the government that outstanding subsidy debt would be paid but a month after, the promise has remained unfulfilled.

  • PFN: Govt must give conditions for talks with Boko Haram

    PFN: Govt must give conditions for talks with Boko Haram

    Pentecostal Fellowship of Nigeria (PFN) has said the Federal Government should only negotiate with Boko Haram  if its members were willing to surrender and embrace peace.

    Its National President, Rev Felix Omobude, spoke with reporters yesterday after a programme organised by PFN at  the Victory International Church, Ibadan, the Oyo State capital.

    According to him, Boko Haram had burnt down  850 churches in the North.

    Rev. Omobude said: ”I think it is right for the Federal Government to dialogue with Boko Haram only if they are truly ready to embrace peace. We condemn continued spate of bombings in places of worship by Boko Haram. Nobody can be justified for killing innocent people in the church or mosques. We condemn it in all ramifications.  Boko Haram are enemies of Nigeria and we must all come together to treat them as such.”

    The cleric urged the government to provide necessary facilities for the security agencies to perform efficiently.

    “I appeal to Nigerians to exercise patience with President Muhammadu Buhari over the issue of Boko Haram. I know they want a quick intervention to resolve insurgency. I believe they are working and with the cooperation of all sundry, we will see a change,” he said

     

  • Govt urged to regulate oil and gas

    THE Federal Government has been urged to put in place appropriate legal framework that will regulate the oil and gas industry.

    Participants made the call in a communiqué after a workshop with the theme, Gas development:  On-shore and off-shore, a level playing field of the future in the industry, at the Petroleum Training Institute (PTI), Effurun near Warri in Delta State.

    In the communiqué, participants urged the government to enact laws to regulate the oil and gas industry to enable the optimal exploitation of the opportunities in the oil and gas sector, stressing that PTI has the capacity to train the appropriate manpower for gas development in Nigeria.

    It challenged players in the sector to team up with PTI for technical skills development by way of staff exchange programme and other forms of infrastructure support to enable the Institute proffer requisite programmes in line with industry requirement to harness the business opportunities in gas sector of the economy.

    It noted the need for more awareness through consistent and frequent advertisement to showcase the potential of gas business in Nigeria. It underscored the imperative for the government to develop gas infrastructure (Gas pipelines) to harness benefits derivable from the exploitation of Gas investment in the country.

    It added that the government should provide financial incentives, such as tax holidays and insurance to attract investors to the sector.

  • ASSBIFI to govt: protect workers’ right

    ASSBIFI to govt: protect workers’ right

    The Association of Senior Staff of Bank and Financial Institutions (ASSBIFI) has called on the Federal Government to protect the rights of workers.

    The association lamented that despite the existence of international labour standards relating to recruitment, national laws in the country, their enforcement often fall short of protecting workers’ rights.

    Its Deputy President, Comrade Olasanoye Oyinkan, who spoke  with reporters, lamented that public and private employment agencies in the country have been involved in one or more deception about the nature and conditions of work for workers

    She said: “We call on government at all levels, the federal, states and local governments to protect the rights of workers as they are the creation of wealth for the nation. Our call is necessary because when the public and private employment agencies are appropriately regulated, they would play an important role in the efficient and equitable functioning of labour markets by matching available jobs with suitably qualified workers.”

    According to Oyekan, in today’s globalised economy, workers are increasingly looking for job opportunities beyond their home country.

    On the recent picketing of Alpha Beta Limited over the sack of 300 workers, the labour leader deplored the action of the company in the face of economic hardship in the country.

    She, however, explained that before the company sacked the workers, they reported to the Ministry of Labour and Productivity, but before the meeting, Alpha-Beta had gone ahead to sack 300 workers.

  • ‘Govt not commercialising education’

    The Ekiti State government has denied the claim by the All Progressives Congress (APC) that Governor Ayodele Fayose was planning to commercialise basic education.

    It said: “The APC government of Dr Kayode Fayemi killed education in the state and the Fayose-led Peoples Democratic Party (PDP) government is trying all that it could to restore the lost glory of the state in the education sector.”

    Special Assistant to the Governor on Public Communications and New Media, Lere Olayinka, in a statement yesterday, said it was insulting for the APC to have made reference to the late sage, Chief Obafemi Awolowo.

    “The APC does not stand for one single ideal of Awolowo. The 1999 Constitution  guarantees Free Universal Basic Education from primary school to JSS 3. That is a law that no government can contravene.

    “However, does the APC as a party have the moral right to speak on education? Here is a party, whose government scrapped universities under the excuse that the state could not fund more than one university, but the same government could use borrowed funds to build N3.3billion Governor’s Lodge, civic centre, state pavilion and other irrelevant projects.

    “Shouldn’t these characters in the APC show remorse and stop this persistent advertisement?”