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Tag: Kachikwu

  • Fed Govt ‘ll not remove fuel subsidy, says Kachikwu

    Fed Govt ‘ll not remove fuel subsidy, says Kachikwu

    NEITI supports subsidy removal

    The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu yesterday said  the Federal Government will not scrap the Petroleum Support Fund (also known as subsidy) but will, instead, embark on price modulation.

    He denied saying  the price of petrol will go up in January.

    Addressing a press conference in Abuja, he said the Nigerian National Petroleum Corporation (NNPC) will alongside the Petroleum Product Pricing Regulatory Agency (PPPRA) sit to determine the new template to arrive at a new price which will be subject to quarterly review in line with the price of crude oil.

    He explained that government is planning to use N87 and N97 as a ceiling for the price modulation at every given time instead of fixing the fuel price without basis.

    Kachikwu said: “ I did not say that refine product will sell N97 next year. That is not what I said. I said between a bound of N87 and N97. We are going to look at the prices.

    “Today the price is close to N87 so there might be no need to change prices. By January, it may well go up slightly. By February it may well go up slightly. But March it may well go up slightly; by April, it may come down.

    “So it is all a dynamic of what the price of crude is. So I have not put a static figure; myself and PPPRA will sit down to do the calculation to be able to announce what the PMS will sell for in January.  We do not anticipate any major shift in the cost of crude today.”

    The minister who lamented that the Federal Government spent  an unbearable over N1 trillion on fuel subsidy this year said NNPC has to take measures to whittle some of the cost elements of the subsidy template.

    He said government will now look at how to reduce its allocation to the Petroleum Equalisation Fund (PEF) and foreign exchange.

    He said: “Now what we are doing is review the PPPRA template – how we can whittle down some of the cost elements – the cost for clearing, allocation for PEF? We will reduce – foreign exchange provision (what do we do with the foreign exchange so that some stability in the exchange rate (is acheived?)

    “ It is a key component that when you deregulate, you are back to square one or so. So we are looking at how do we provide allocation in the oil industry so that there is certainty in terms in the regime for FS and that saves you the exchange component in the whole analysis.”

    He said President Muhammadu Buhari has resolved that government will get a technical partner to repair and run the refineries and bring out its investment.

    However, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said removal of the subsidy will free over N700 billion  annually which can be channeled to provision of infrastructure like roads, education, health service, power, security, creation of jobs and basic benefits for the poor in the society.

    The statement said that while addressing  a Policy Roundtable on Subsidy Removal Debate organized by the Shehu Musa Yar’Adua Centre in Abuja,  the Acting Executive Secretary, Dr Orji argued; “From NEITI’s independent audit report, over N4 trillion has been paid as subsidy to marketers from 2006-2012. The breakdown of the subsidy shows that N2.197Billion was paid as subsidy in 2006. This rose to N236.64Billion in 2007 and N360.1Billion in 2008. In 2009 the country paid N198.1Billion as subsidy for petroleum products and in 2010 the subsidy payment rose to N416.45Billion. The payments skyrocketed to N1.9 trillion in 2011. Payments of oil subsidy declined to N690Billion in 2012 following the subsidy protests across the country in January of that year”.

  • Govt to ‘remodel’ fuel subsidy, says Kachikwu

    Govt to ‘remodel’ fuel subsidy, says Kachikwu

    A major shift in policy in the fuel scarcity regime and the arrangement  of the pipelines is slated for next year, the Federal Government has said.

    The payment of petrol subsidy will be ‘remodelled’, minister of state, Petroleum Resources, Dr Ibe  Kachickwu, said yesterday in Lagos.

    The ministers was in Lagos to meet with oil marketers is a bid to end petrol shortage.

    The minister also turned offer of marketers – major and independent – to solicit their support to a hitcfree supply of petrol during the yuletide.

    Yesterday the National Assembly approved over N500b for subsidy in the supplementary budget sent to it by President Buhari.

    In term of whether  subsidy would go or not , I in my capacity as the State Minister of Petroleum Resources is working  seriously with President Muhammad Buhari on the issue. Mr President is committed to the issue.. We are looking at all kinds of options to remodel the subsidy come January 2016.  We are going to look at options where we can remodel subsidy; and sell fuel at a more flexible price regime without absolutely removing the subsidy.  We would see the result of that in the new year.

    He said: ‘’ The distribution logistics problem is not the real problem in the industry. There is nothing that is happening that has never happened before.  Before the majors and independents were bringing fuel and sell it to consumers. But now, there is nothing like that. The  problem is that the some major players are no longer bringing in fuel into the country, for obvious reasons.’’

    According to him, the government will review the management of  pipelines with regards to their privatisation in January. He said when the pipelines are privatised and their managements looked into by the government, the perennial problems posed by pipeline vandalism would reduce  ditto  where will reduced the possibility of fuel scarcity.

    The minister noted that the government has introduced and implemented what it described as regional intervention mechanism with a view to stop the lingering fuel crisis.

     

    He said there was North-West; North –East;  South-West; South-South; and South-East fuel intervention programmes introduced by the Federal Government, arguing that the efforts have paid off as fuel was made available in those regions.

    Kachickwu said despite the problems posed by pipeline breakages, the government has tried its best to distribute fuel by collaborating specifically with some marketers.

    He said the Federal Government is expecting 26 cargoes, with each cargo bringing in 33,000milltion litres of  fuel.

     

  • Govt set to pay marketers N413b, says Kachikwu

    Govt set to pay marketers N413b, says Kachikwu

    •Minister seeks solution to frequent petrol scarcity

    Minister of State for Petroleum Resources Dr. Ibe Kachikwu yesterday said the Federal Government may pay oil marketers the outstanding N413 billion subsidy claims next week.

    The government, he said, would ensure that the marketers receive their claims immediately the Senate approves the request from President Muhammadu Buhari.

    Kachikwu added that the Central Bank of Nigeria (CBN) would be asked to disburse the funds to the marketers without waiting for extra budgetary allocation.

    The minister, who spoke after monitoring the sale of petrol in filling stations around the Federal Capital Territory (FCT), Abuja, said: “I have had to talk to the Senate President and he is working with his team to ensure that something is done about that. It is all parts of the process which has to be followed, but I have assured marketers that they will get their money.

    “I am sure within the next one or two weeks, this will be done and the President is looking at shorter ways to get this done. Once we get the Senate’s concurrence, even if the approval for the extra budgetary allocation has not come, the president will authorise the CBN to pay the money.

    “We have made provisions already and have got the approval out of the Executive. But it require the process of going through the Legislature. We just don’t spend money that way; we are a process-driven organisation and country. So, that is what is happening.”

    Kachikwu said the country must find a long-term solution to the frequent scarcity of petrol, stressing that the nation cannot continue on the same path.

    He noted that there were critical systemic issues posing as challenges to seamless supply and distribution of petrol that must be dealt with.

    Although he did not list these issues, Kachikwu explained that if left unattended to, the scarcity would persist in the downstream petroleum sector to the detriment of the citizens.

    On fuel price reduction, Kachikwu said: “I can be very clear that there is no price reduction coming because frankly, sustaining subsidy at the rate where we are is a major problem for the country and it is only happening through the magnanimity of the President.

    “We are looking at the price modulation and by January, we will have a price modulation dynamics that will enable us address the critical issues for the marketers, but the issue of price reduction is not in the horizon at all.

    “Patience does it. NNPC is doing everything it can, looking at its stock to try and drive off these queues. Marketers are beginning now with the assurance I have given to bring in products from outside of the shores of this country and so, I expect this to be out in a couple of days.

    “Basically, the cause of this is a whole series of items. It is the issues of our pipelines being unable to pump effectively. Our ability to pump through Mosimi is heavily restricted.”

    Kachikwu said the ministry had dealt with some of the problems and products were being pumped.

    On filling stations hoarding products, he said: “I have instructed the DPR as they proceed that any station that has products and is hoarding that they should sell all the products in there for free to customers and impose serious penalties on the stations.

    “Sealing them is not the answer, but penalising them and I hope the message goes out loud and clear. I urge Nigerians to be a bit patient and stop panic buying.”

     

     

  • Problems Fashola, Amaechi, Kachikwu have to tackle

    Problems Fashola, Amaechi, Kachikwu have to tackle

    Dilapidated infrastructure, erratic power supply and moribund refineries are some of the problems inherited by Babatunde Fashola, Rotimi Amaechi and Emmanuel Ibe Kachikwu in the ministries of Works/Power/Housing, Transportation/Aviation and Petroleum Resources.   Adeyinka Aderibigbe  and Emeka Ugwuanyi  capture what the trio must do to make the difference.

    GOING by the applause their announcements as ministers of Petroleum Resources and Power drew at the swearing of ministers at the Presidential Villa in Abuja on Wednesday, Dr. Emmanuel Kachikwu, Mr. Chibuike Rotimi Amaechi and Mr. Babatunde Fashola have their jobs cut out for them.

    Kachikwu (Minister of State), who doubles as the Group Managing Director (GMD), Nigerian National Petroleum Corporation (NNPC), Amaechi, former Rivers State governor and now (Transportation, who combines Aviation)  and Fashola, who combines Power with the ministries of Works and Housing, face some herculian tasks.

    Reason: The tasks ahead are enormous in view of the huge debts and challenges they are inheriting in the two ministries. They would constantly be on the spot.

    Save for Kachikwu, whose appointment had long been foretold, the appointments of Amaechi’s and Fashola’s appointments, ended speculations over who man the critical sectors. Their emergence as helmsmen in the three important ministries, have been applauded by operators in the energy and petroleum sectors, considering their antecedents in their previous assignments.

    As NNPC’s GMD, Kachikwu has had a taste of the challenges but Fashola and Amaechi, who are coming from the state level, must brace to crack some unimaginable and embarrassing nuts in their respective ministries, now that they have the entire country as their constituency.

    Despite being substantially controlled by the private sector, the power sector remains problematic across the value chain of generation, transmission and distribution.

    The distribution companies (DISCOS), which feed the entire value chain financially, are facing funding deficit, a challenge that has affected the generation and transmission segments. The two legs depend on revenues collected by the distribution companies.

    According to operators in the power sector, the transmission network, is very weak, the weakest link in the chain. The transmission company can at its peak, wheel 5,300 megawatts (mw). Therefore, even if the generation companies can pool 10,000Mw, customers can only get 5100mw because 200Mw may be kept as spinning reserve to balance emergencies.

    The distribution companies take at best 60 per cent of what they are supposed to get. No thanks to technical and commercial challenges. Power is lost in transit due to poor equipment and facilities as well as the unwillingness of some customers to pay their electricity bills.

    As at the last count, the DISCOS were being owed N32 billion, the bulk of which was, ironically, in the hands of Federal Government Ministries, Departments and Agencies (MDAs), and the military.

    According to the Chairman, Egbin Power Generation Plc., Mr. Kola Adesina, the company is owed N39 billion by the Federal Government, which accumulated from when they took over the asset in November 1, 2013 to October this year.

    The Director, Association of Nigerian Electricity Distributors (ANED), Mr. Sunday Olurotimi Oduntan, told The Nation that the appointments of Fashola and Kachikwu are fantastic. He believed the woes of the power sector would become a thing of the past with synergy between them.

    Oduntan said: “The appointment of Fashola and Kachikwu is a welcome development for the sector. They have integrity and have legacies that speak for them; therefore they will not fail in these new assignments. With Fashola and Kachikwu, the days of impunity are gone, I assure you. They will make gas available for power generation.

    “Fashola should focus attention on the entire power value chain, and ensure that the funding gaps in the sector are bridged. He should ensure that the sector gets cost-reflective tariff to keep it running.

    “The transmission is the vehicle of the sector because if the country generates 20,000mw and the transmission can only wheel 5,000mw, the distribution companies will not have power to give to customers. The cost-reflective tariff has become imperative because banks are not lending to distribution companies.

    “Also because the gas market and other equipment, which sustain the power sector are dollar dominated, the minister should appeal to the Central Bank of Nigeria (CBN) to give concession to operators in the sector by giving foreign exchange rate that will not hurt the sector.”

    Fashola should do everything to improve and expand the transmission network (national grid) by ensure that the government invests in it.

    “The sector is in dire need of funds, investments to prevent the sector from collapse,” Oduntan said.

    Amaechi, who now sit on an expanded Ministry that now includes aviation, would have the responsibility of giving to the country a modern transportation system and end the monolithic transportation system (road mode) nationwide.

    As Transportation minister, Amaechi will be sitting as the Chairman, National Council on Transportation – the highest policy formulating body for the transportation sector – that supervises states to implement same resolutions relating to transportation initiatives.

     What is Amaechi inheriting?

     Amaechi is coming to the ministry at a time when the transportation sector is in the limbo. At no time in history were Nigerians faced with the grim reality of the derelict transportation system.

    Not only have all the roads, especially those classified as federal roads become death traps, the over concentration of movement on the roads have left in its trail an impact that has earned Nigerian road as one of the most unsafe in the world.

    But more worrisome, according to experts, is the total absence of a road map for the nation’s transportation sector.

    Transportation and logistics experts have decried the absence of a national transportation policy in the country.

    Deputy National President of the Chartered Institute of Logistics and Transportation (CILT), Prof Olakunle Oyesiku, said the absence of a transportation policy and an enabling law regulating the operations of the sector has led to the gross under development of the sector.

    Besides, Amaechi would be inheriting a chaotic sector where at every turn, private initiative and investment, rather than government’s, has driven the sector. Though, government recognised the sensitivity of the sector and the need to assure mass transportation, yet, it has continued to pay lip service to critical interventions that could bring about a virile, safe, affordable, reliable and comfortable public transportation.

    The dearth of these has forced Nigerians to result to self help, a situation where everyone saw the necessity to own a vehicle, while others even ventured into commercial activities, all because the government has given room for a vacuum.

    The unregulated operations have led to the presence of all manners of vehicles on roads. From a two wheeler bicycle, motorcycle and tricycle to cars, midi, mini and high-capacity buses and trucks as well as articulated vehicles, Nigeria has become what Patrick Adenusi, founder, Safety Without Borders, called “a dumping ground for all sorts of vehicles from all over the world”.

    Apart from pothole and crater-riddled roads, Amaechi will also be inheriting an almost moribund National Inland Waterways whose impact have been felt more on the pages of memos than in real life.

    The present generation of Nigerians may go without having any knowledge that alternatives routes such as water ever existed as a viable option promoted by the Federal Government.

    The former Rivers governor will have to decide what to do with a train service that has in the last decade battled to justify the multi-million dollar investment sunk into it by the Federal Government.

    Despite gulping over $4 billion in the last eight years, the Nigerian Railway Corporation (NRC) operates below par. The rickety locomotives and coaches, most of which are refurbished colonial heritage, continue to run on the tracks.

    In the last eight years, the NRC has spent billions revamping a network of ancient and outdated narrow gauge tracks, an effort flayed by development transportation experts.

    Prof Oyesiku contended that what the country needs is not the rehabilitation of these “worn out lanes,” but a replacement of same with “standard gauge”.

    Oyesiku, of the Department of Transportation, Ogun State University (OOU), Ago-Iwoye, said only a total overhaul would bring Nigeria at par with global trend in rail transportation.

    Amaechi is going to inherit an auto policy which broadly aims at making Nigerians patronise made-in-Nigeria vehicles. Piloted by the National Automotive Council (NAC), the policy’s target is to encourage local production of vehicles, yet, there has not been any resolution about the kind of vehicles to come out of such assembly lines.

    Critics and pundits have said the audacious policy which came into being about three years ago has largely failed because of visionless leadership.

    From the states to the national, the transportation sector has been dominated by private union leaderships, who over the years that have become powerful “institutions”.

    Unions such as National Union of Road Transport Workers (NURTW), Road Transport Employers Association of Nigeria (RTEAN), Petroleum Tanker Drivers (PTD), among others have become islands unto themselves as they dictate the policy directions of successive governments.

     Changes Nigerians want

     Nigerians would want to see a transportation sector that would be the pride of Africa.

    Within the remaining 45 months, they would want to see all modes of transportation working even as government increases its stake in mass transportation via public transportation system.

    The government should draw up a workable transportation policy that would be implemented across all states to include forms and nature of transportation options to be deployed for commercials purposes nationwide.

    It must deepen its investment in railway services as it remains the backbone of mass transit option for the government. Efforts, experts insist, must be made to replace the out-of-fashion narrow gauge with standard gauge and modern locomotives and coaches/wagons for the easy transportation of goods and passengers.

    Adamson Williams, a train locomotive engineer said government must be more serious with rail-based system of transportation to achieve tangible result in mass transit.

    He said though the present locomotives of the NRC can make 150 km/ph, the weak tracks had forced them to be making only 80 km/ph.

    He noted that if actualised, a standard gauge from Apapa Ports and quays to all tank farms and stations would guarantee the most efficient mode of rail transportation in the country.

    The bill presently before the National Assembly seeking to repeal the draconian NRC Act is a good point on which the new minister may act to bring about the innovations he may have for the rail sector.

    Having tried to introduce a mono rail in Port Harcourt in the last dispensation, Nigerians look forward to the minister giving the necessary backing to the move to repeal the old law.

    Another urgent task before the new minister is the issue of petroleum tankers and containerised trucks that has sacked residents of Apapa and its environs.

    More attention, experts say, must be given to the rehabilitation of the Apapa-Oshodi truck-only lane, which had been abandoned by trucks and trailer drivers because it has collapsed.

    Much as the existing roads must by urgently fixed, efforts should be geared at providing another alternative as well as providing a trailer park for the trucks and trailers that now besieged the roads over the full concession of Apapa Ports.

    The greatest challenge before the new minister is to make the nation’s roads safe all-year-round, a feat that could be achieved by  Amaechi with the introduction of fresh initiatives to reduce the vehicular density on the roads.

    With over 100 million of its 170 million population relying road transportation as the only means of transportation, the roads with an unfair share of burden couldn’t have been less risky and unsafe.

    “If he can achieve a situation where 50 per cent of the present road users make use of other alternatives in the next four years, Amaechi would have gone into the history book as the most remarkable minister to have ever manned the transportation ministry”, Williams said.

    The route to doing that is to make other alternatives as safe, comfortable, affordable and available.

    Amaechi must also give the nation’s airports the needed facelift as not a few admit that the aviation sector, which has held the short end of the rod for a very long time, needs urgent rehabilitation.

    Pitfalls of predecessors

     What the minister told reporters after taking the Oath of Office should be his guiding principle. He told reporters: “People say I am not afraid of anything but I’m afraid of jail.” His predecessors, especially in the Aviation ministry – from Prof Babalola Bosishade to Femi Fani-Kayode and Stella Oduah – faced allegations of financial impropriety after completing their tours of duty.

    It is a fact that the Transportation ministry is a cash cow and money-spinning portfolio. But will the enormous resources be deployed to provide the best transportation system? This lies in the realm of conjectures.

  • Why Kachikwu made Buhari’s ministerial list

    Why Kachikwu made Buhari’s ministerial list

    The inclusion of Dr. Emmanuel Kachikwu, who was recently appointed as the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), in the ministerial list took many by surprise. Deputy Political Editor RAYMOND MORDI examines the antecedents the ministerial nominee from Delta State and perhaps why President Muhammadu Buhari opted to have him in the cabinet.

    AMONG the list of 21 initial ministerial nominees forwarded to the Senate by President Muhammadu Buhari, Dr. Emmanuel Ibe Kachikwu’s name stands out in many respects. Unlike the other nominees, he is not a politician and a card-carrying member of the ruling All Progressives Congress (APC). Contrary to public expectation, Buhari’s list is made up of former governors, former lawmakers and other party chieftains who contributed immensely to the emergence of the APC as the ruling party at the centre. Since President Buhari was not obliged to nominate him because he played a role in the success of the party at the polls, he must have been included in the list on his merit.

    Contrary to public expectation, the list does not contain surprises. But, Kachikwu, whose recent emergence as the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) received a wide acclaim, was perhaps one of the few surprises.

    Going by indications from the Presidency, it is understandable why Kachikwu is in the list. Though the list does not indicate to which ministry the nominees would be assigned, Kachikwu is probably the one that would emerge as the Minister of State, to oversee the day-to-day activities of Petroleum Ministry. After signaling that he would take up the position of Petroleum Minister, President Buhari on Monday indicated that he would leave the post vacant, according to his spokesman, Mr. Femi Adesina. “He can’t be president and oil minister at the same time,” Adesina said, adding: “He will supervise the ministry, so there will be no Petroleum Minister. Maybe he will appoint a Minister of State, which is a junior minister.”

    According to observers, this makes a lot of sense, because bringing in a fresh face as the Minister of State for Petroleum Resources and by extension the man that would oversee the NNPC where the Onicha Ugbo, Delta State-born Kachikwu is at the helm of affairs may mar the reforms already taking place within the ministry, which is widely regarded as the cash-cow of the Nigerian economy. With the emerging set up, Kachikwu is likely to remain the GMD of the corporation. In this way, he would take part in policy formulation as a member of the Federal Executive Council and drive the implementation of same at the Petroleum Ministry.

    Thus, the new kid on the block who has more than 30 years experience in policy-making positions in petroleum industry appeared to have impressed President Buhari within the short span of time he has spent as the chief Executive officer of the NNPC. Those who know Kachikwu say he is modest and humble by nature and is usually passionate and committed to what whatever goal he sets for himself. No doubt, these are traits he shares in common with President Buhari.

    An erudite scholar and businessman, Dr. Kachikwu, who worked at various times as an investment attorney in the United States; General Counsel  with Texaco Upstream and Downstream in Nigeria; Executive Vice Chairman of Mobil Producing Nigeria Unlimited; and General Counsel for ExxonMobil Nigeria affiliate Upstream and Downstream Companies in Nigeria, is the kind of technocrat expected to drive the Buhari administration. The President’s body language suggests that he is serious about sanitizing the country’s oil industry and he requires a technocrat like Kachikwu to provide the technical knowhow.

    It is on record that he set major policy planks on, government relationship, investment policy and corporate governance for ExxonMobil in Africa and member of many highly influential policy and investment teams for ExxonMobil Corporation. He served as a lead negotiator on diverse issues for ExxonMobil in Africa, including the conclusion of Lease Renewal Negotiations for Mobil Producing and facilitated solid contacts in Global Energy Sphere with contacts to most chief executive officers (CEOs) of multinational petroleum corporations and secretaries of energy for key national country players for about three decades. His accomplishments include the authorship of several law books. He authored the bestseller – Nigerian Foreign Investment Law and Policy and more than 20 publications.

    Nevertheless, Dr. Kachikwu has an ardours task before him: restructuring the NNPC, to allow it to allow it to operate as a business entity, by insulating it from the kind of political interference that has weighed it down over the years is not going to be easy. By opting to take up the position of Petroleum minister, President Buhari probably wants to make it clear to everyone that he intends to keep a close watch on the operations of NNPC. This is understandable, against the background of heart wrenching revelations of mind boggling malfeasance in the management of the corporation.

    With the recent drop in global oil prices, Nigeria desperately needs more oil sales revenue to support government budgets, protect foreign reserves and help stop the ongoing devaluation of the national currency. That is perhaps why President Buhari has made the sanitisation of the oil sector a cardinal plank of his administration.

    The report of Price Waterhouse Coopers (PWC), who audited the account of NNPC recently, does not give the country something to cheer about. According to the global auditing firm, the problem with the NNPC is poor corporate governance. This was responsible for losses of billions of dollars annually. Blocking the leakages within the corporation is an essential part of the challenges that Dr. Kachikwu will confront.

    But, with his private sector background, where best business practices and corporate good governance are sine qua non, Kachikwu comes highly recommended by his own pedigree in the industry.

    Kachikwu, who was born on December 18, 1956 to late Justice Francis Kachikwu and Maria Kachikwu, has impressive academic credentials. He attended St. Peter’s Primary School Ogwashi-Uku before gaining admission into St. Pius Grammar School Onicha-Ugbo, which he left in 1968 with top level performance. He studied for Higher School Certificate (HSC) at Edo College, Benin City, from 1973 to 1974. He read law at the University of Nigeria 1978, where he made a first class result and emerged as the best graduating student. At the 1979 set of Nigerian Law School; he equally emerged with another First Class and the best graduate student, winning seven of the available nine prizes. At his LLM programme at Harvard University, in 1980, it was another First Class performance. His Doctorate degree programme did not come with lesser performance.

    Kachikwu, who hails from Onicha Ugbo, in Aniocha North Local Government Area of Delta State, is married to two women, Elizabeth and Mariam. He holds the traditional titles of Odogwu and Omeudo of Onicha Ugbo. He was installed the 13th Odogwu on August 28, 2013.

    Interestingly, Kachikwu was in the Nigerian Army before he went back for his LLM and LLD at the Harvard Law School, United States of America. That was probably where he met Buhari; they were both in the Congo. Indeed, the Delta State ministerial nominee was raised in the north. His father, a Justice, was transferred to the Katsina Appellate Court 51 years ago, where he was said to have met Buhari’s father, a considerably well-to-do cattle owner in Daura, Katsina State.

  • The Ibe Kachikwu I know

    The Ibe Kachikwu I know

    On a recent television morning talk show, the presence of Olisa Metuh, the Peoples Democratic Party (P.D.P) National Publicity Secretary, caught my attention. Metuh was on the hot seat being interviewed on sundry national issues and as far as I was concerned, he was not really saying anything new until he mentioned the name of Dr. Ibe Kachikwu, the man who was recently appointed as the Group Managing Director of the Nigerian National Petroleum Corporation (N.N.P.C.), the man who just a few months after that appointment was considered worthy of consideration as a Minister. Metuh wanted viewers to know that Dr. Kachikwu was not a new discovery.

     In fact, Metuh claimed on national television that Kachikwu was a discovery of the Peoples Democratic Party (PDP) government led by Dr. Goodluck Ebele Jonathan. He then warned President Buhari to back off and not claim any credit for discovering Kachikwu.

    According to Metuh: “President Muhammadu Buhari should not claim Ibe Kachikwu’s appointment as a plus for the APC-led government as Kachikwu was supposed to have been appointed substantive Minister of Petroleum two and a half years ago under the PDP-led government of President Goodluck Ebele Jonathan.” Metuh then reiterated that ex- President Goodluck Jonathan wanted to name Kachikwu as replacement for Diezani Allison-Madueke as Petroleum Minister. When asked by one of the presenters why this didn’t materialise, Metuh dodged the question and laughed.

    And I was quite put off. Why? Metuh should not have dodged that question. He should not have just laughed it off. Rather, he should have told us more about the man, Kachikwu. With such glowing credentials and achievements that could easily intimidate even the most accomplished, Kachikwu should not have been swept under the carpet like Metuh did that morning. My people, the Yoruba of South West have a proverb that says, “If your daughter is a stunning beauty, do not be ashamed to proclaim it on the rooftops as you won’t be doing that just because you want to take your own daughter as a wife.”

    Metuh’s outburst, that morning, brought one good thing to the fore though, it established Kachikwu (and deservedly so too) as a beautiful bride whose hand is being sought by a lot of suitors.

    When Kachikwu was appointed as the Group Managing Director (GMD) of NNPC by President Buhari on August 4, 2015, I was one of those who commended the President for making a right choice. ‘This is like putting a round peg in a round hole,’ I had d told anyone who cared to listen, ‘It shows that the President is indeed very serious about making a change and eradicating corruption in all facets of the Nigerian society.’ For, if a list of Nigerians who have risen to the pinnacle of wealth and success through commitment and hard work, without soiling their hands with the mud of graft and corruption were to be written, Kachikwu’s name would shine like a million stars.

    I met Dr. Kachikwu for the very first time in 1988. He was, at that time, the General Counsel/Legal Adviser at Texaco Nigeria. Fresh out of university, I had applied for a job at Hints, a new romance and lifestyle magazine that was just starting. Having been invited for an interview, I strolled into the venue and beheld Dr Kachikwu at the head of the table, leading the panel of interviewers. I didn’t know who he was at that time but his personality was so electrifying that I simply couldn’t take my eyes off him. I needed the job as if my life depended on it and I was as jittery as hell.  But the butterflies in my stomach vanished immediately Kachikwu began to speak. Even now, I still can’t put a finger on how he does it, but the man had (still has) a way of instilling confidence and bringing out the best in me. As he was to tell me later, he noticed that I had raw talent which needed to be refined as soon as he began to throw questions at me on that day. And today, I must give him the credit for polishing my raw skills and making me into the writer that I am today.

     I eventually got the job at Hints and under his tutelage, I began to grow in the world of writing and journalism. He gave me support and encouragement and knocked me into line whenever I strayed. He gave me opportunities that no human being, living or dead, has ever given me. A totally detribalised Nigerian, it didn’t matter to him that I was Yoruba and he was Delta Ibo, he rewarded my contributions and pushed me up the ladder. Within one year, I got promoted four times and rose from Editorial Executive to Editor, making me the youngest Editor in the Nigeria of that time, at the tender age of twenty three! That is Kachikwu for you, an unrepentant apostle of merit and fairness. He taught me the values of honesty, hard work and complete team work. From behind the curtains, he drove the Hints team comprising myself, Amaka Obiofuma, Hetty Ajayi, Chidinma Awa Agwu, Cyprian Onwuli, Osita Aniemeka, John Onwah, John Ekeanya, Ekerete Udoh, Dr. Reuben Abati, Toni Kan, Chim Newton and so many others, to bring water out of stone. With Kachikwu, the word impossibility simply does not exist!

     Truly, it would be completely out of place to expect anything less from a man who holds a doctorate degree in Law from the prestigious Harvard University. A man who graduated with distinctions from the University of Nigeria, Nsukka and won seven out of the nine prizes available at the Nigeria Law School; a Fellow of the Society for Corporate Governance (FSCG); Fellow of the Chartered Institute of Arbitration (FCIArb) and a Fellow of the Chartered Institute for Petroleum Policy (FCIPP).

    Also a visiting professor in various universities in the world, including Harvard, his alma mater, what more can one say about a man who influenced over $10 billion investment from ExxonMobil into Nigeria and other African countries. It is also on record that he set major policy planks on government relationship, investment policy and corporate governance for ExxonMobil in Africa. Trust me, only a thief would ask for more!

    The President who is committed to making a change has brought in the game changer. With Kachikwu on the turf, it can no longer be business as usual in Nigeria’s oil sector. The dark days are over. The Diezani era is gone forever! The Kachikwu era of light is here. Welcome… Dr Emmanuel Ibe Kachikwu!

     

    • Ajala is a Lagos based journalist.

  • Imo lawmaker lauds Kachikwu’s ministerial nomination

    A member of the Imo State House of Assembly representing Oguta constituency, Hon Henry Ezediaro, has hailed the nomination of Dr. Ibe Kachikwu, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) and Professor Anthony Anwuka as ministerial nominees by President Muhammadu Buhari.

    He noted that Kachikwu and Anwuka are proven technocrats who will bring their wealth of experience to bear in whichever ministry they are assigned to.

    He pointed out that that Oguta people in particular and Imo State in general are grateful to President Buhari for the nomination of the duo, adding that “we are grateful over the nomination of our sons, because Prof. Anwuka is from Oguta, while the mother of the NNPC boss is also from Oguta. Our assurance to Mr. President is that these two will prove their mettle and will add value to his administration.”

    Ezediaro, who expressed satisfaction over the list of the ministerial nominees,   likened their nomination to “round pegs in a round holes”.

    According to him, “both men, with vast experiences, would deliver as they have shown over time their values.”

  • Why Kachikwu made Buhari’s ministerial list

    Why Kachikwu made Buhari’s ministerial list

    The inclusion of Dr. Emmanuel Ibe Kachikwu, who was recently appointed as the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), in the ministerial list took many by surprise. Deputy Political Editor RAYMOND MORDI examines the antecedents the ministerial nominee from Delta State and perhaps why President Muhammadu Buhari opted to have him in the cabinet.

    Among the list of 21 ministerial nominees so far forwarded to the Senate by President Muhammadu Buhari, Dr. Emmanuel Ibe Kachikwu’s name stands out in many respects. Unlike the other nominees, he is not a politician and a card-carrying member of the ruling All Progressives Congress (APC). Contrary to public expectation, Buhari’s list is made up of former governors, former lawmakers and other party chieftains who contributed immensely to the emergence of the APC as the ruling party at the centre. Since President Buhari was not obliged to nominate him because he played a role in the success of the party at the polls, he must have been included in the list on his merit.

    Contrary to public expectation, the list does not contain surprises. But, Kachikwu, whose recent emergence as the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) received a wide acclaim, was perhaps one of the few surprises.

    Going by indications from the Presidency, it is understandable why Kachikwu is in the list. Though the list does not indicate to which ministry the nominees would be assigned, Kachikwu is probably the one that would emerge as the Minister of State, to oversee the day-to-day activities of Petroleum Ministry. After signaling that he would take up the position of Petroleum Minister, President Buhari on Monday indicated that he would leave the post vacant, according to his spokesman, Mr. Femi Adesina. “He can’t be president and oil minister at the same time,” Adesina said, adding: “He will supervise the ministry, so there will be no Petroleum Minister. Maybe he will appoint a Minister of State, which is a junior minister.”

    According to observers, this makes a lot of sense, because bringing in a fresh face as the Minister of State for Petroleum Resources and by extension the man that would oversee the NNPC where the Onicha Ugbo, Delta State-born Kachikwu is at the helm of affairs may mar the reforms already taking place within the ministry, which is widely regarded as the cash-cow of the Nigerian economy. With the emerging set up, Kachikwu is likely to remain the GMD of the corporation. In this way, he would take part in policy formulation as a member of the Federal Executive Council and drive the implementation of same at the Petroleum Ministry.

    Thus, the new kid on the block who has more than 30 years experience in policy-making positions in petroleum industry appeared to have impressed President Buhari within the short span of time he has spent as the chief Executive officer of the NNPC. Those who know Kachikwu say he is modest and humble by nature and is usually passionate and committed to what whatever goal he sets for himself. No doubt, these are traits he shares in common with President Buhari.

    An erudite scholar and businessman, Dr. Kachikwu, who worked at various times as an investment attorney in the United States; General Counsel  with Texaco Upstream and Downstream in Nigeria; Executive Vice Chairman of Mobil Producing Nigeria Unlimited; and General Counsel for ExxonMobil Nigeria affiliate Upstream and Downstream Companies in Nigeria, is the kind of technocrat expected to drive the Buhari administration. The President’s body language suggests that he is serious about sanitizing the country’s oil industry and he requires a technocrat like Kachikwu to provide the technical knowhow.

    It is on record that he set major policy planks on, government relationship, investment policy and corporate governance for ExxonMobil in Africa and member of many highly influential policy and investment teams for ExxonMobil Corporation. He served as a lead negotiator on diverse issues for ExxonMobil in Africa, including the conclusion of Lease Renewal Negotiations for Mobil Producing and facilitated solid contacts in Global Energy Sphere with contacts to most chief executive officers (CEOs) of multinational petroleum corporations and secretaries of energy for key national country players for about three decades. His accomplishments include the authorship of several law books. He authored the bestseller – Nigerian Foreign Investment Law and Policy and more than 20 publications.

    Nevertheless, Dr. Kachikwu has an ardours task before him: restructuring the NNPC, to allow it to allow it to operate as a business entity, by insulating it from the kind of political interference that has weighed it down over the years is not going to be easy. By opting to take up the position of Petroleum minister, President Buhari probably wants to make it clear to everyone that he intends to keep a close watch on the operations of NNPC. This is understandable, against the background of heart wrenching revelations of mind boggling malfeasance in the management of the corporation.

    With the recent drop in global oil prices, Nigeria desperately needs more oil sales revenue to support government budgets, protect foreign reserves and help stop the ongoing devaluation of the national currency. That is perhaps why President Buhari has made the sanitisation of the oil sector a cardinal plank of his administration.

    The report of Price Waterhouse Coopers (PWC), who audited the account of NNPC recently, does not give the country something to cheer about. According to the global auditing firm, the problem with the NNPC is poor corporate governance. This was responsible for losses of billions of dollars annually. Blocking the leakages within the corporation is an essential part of the challenges that Dr. Kachikwu will confront.

    But, with his private sector background, where best business practices and corporate good governance are sine qua non, Kachikwu comes highly recommended by his own pedigree in the industry.

    Kachikwu, who was born on December 18, 1956 to late Justice Francis Kachikwu and Maria Kachikwu, has impressive academic credentials. He attended St. Peter’s Primary School Ogwashi-Uku before gaining admission into St. Pius Grammar School Onicha-Ugbo, which he left in 1968 with top level performance. He studied for Higher School Certificate (HSC) at Edo College, Benin City, from 1973 to 1974. He read law at the University of Nigeria 1978, where he made a first class result and emerged as the best graduating student. At the 1979 set of Nigerian Law School; he equally emerged with another First Class and the best graduate student, winning seven of the available nine prizes. At his LLM programme at Harvard University, in 1980, it was another First Class performance. His Doctorate degree programme did not come with lesser performance.

    Kachikwu, who hails from Onicha Ugbo, in Aniocha North Local Government Area of Delta State, is married to two women, Elizabeth and Mariam. He holds the traditional titles of Odogwu and Omeudo of Onicha Ugbo. He was installed the 13th Odogwu on August 28, 2013.

    Interestingly, Kachikwu was in the Nigerian Army before he went back for his LLM and LLD at the Harvard Law School, United States of America. That was probably where he met Buhari; they were both in the Congo. Indeed, the Delta State ministerial nominee was raised in the north. His father, a Justice, was transferred to the Katsina Appellate Court 51 years ago, where he was said to have met Buhari’s father, a considerably well-to-do cattle owner in Daura, Katsina State.

  • Ministerial appointment: Niger Delta group lauds Kachikwu’s choice

    Ministerial appointment: Niger Delta group lauds Kachikwu’s choice

    A non-governmental organisation, Niger Delta Frontiers (NDF) has praised President Muhammadu Buhari for picking the current Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Ibe Kachikwu, as one of his ministerial nominees, saying such appointment is a good omen for the petroleum industry.

    A statement by the group’s Chairman, Austin Egbema, in Abuja yesterday, said the President’s choice of Kachikwu will develop the industry, saying that the sector has never had it so good.

    “Before now, the petroleum industry was in a mess fraught with sharp practices. But now sanity has been restored in the sector since the inception of this administration.

    “Therefore if a thoroughbred professional like Mr. Ibe Kachikwu is appointed minister of state for petroleum resources, then better times are here for Nigerians. And we believe the President will certainly put a square peg in a square hole,” Egbama said.

    NDF added that the NNPC GMD has the requisite capacity and experience to provide the needed services under President Buhari’s watch in order to return Nigeria to the old glorious days.

    “Having Mr. Kachikwu doubling as the GMD of the NNPC and reporting to the president as Minister of State for petroleum will go a long way in eliminating the incessant crisis that characterized the NNPC during the last regime where we had about five GMDs in as many years,” he added.

    Meanwhile, oil and gas industry analysts have expressed strong support for the inclusion of the current GMD of the nation’s strategic parastatal, the NNPC, in the ministerial nominees’ list of President Buhari.

    Stakeholders in the industry, who spoke with our correspondent, say that although the President was yet to unfold his plan for the reform of the NNPC, the inclusion of Kachikwu in his choice of ministers is suggestive of the possibility that Dr. Kachikwu will most likely be posted to the ministry of petroleum resources as minister of state.

    President Buhari, fielding questions from journalists on the sidelines of the United Nations General Assembly (UNGA) meeting in New York last week, had said that he will head the petroleum ministry because of the importance he attaches to the reform and the sensitivity of the oil and gas industry to the nation’s economic revival.

    R Dr. Kachikwu assumed duty as the Chief Executive of the NNPC at a brief handover ceremony held at the NNPC Towers in Abuja about a month ago.

    Until his appointment, he was the Executive Vice Chairman and General Counsel of Exxon Mobil (Africa).

  • Our plans for NNPC, by Kachikwu

    Our plans for NNPC, by Kachikwu

    Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Emmanuel Ibe Kachikwu has his job cut out for him – rid the oil giant of corruption and opacity; make the outfit accountable and competitively profitable. At an interactive session with energy reporters in Lagos,  Kachikwu spoke of his plan to turn around the fortune of the Corporation, reports EMEKA UGWUANYI

    President Muhammadu Buhari clearly spelt out Dr. Emmanuel Ibe Kachikwu’s mandate when he was named the Group Managing Director (GMD), Nigerian National Petroleum Corporation (NNPC), on August 4.

    He should clear the rot, overhaul the system and reorganise the corporation as a profit-making business entity with all the refineries reactivated to function at nameplate capacities.

    The President spicifically asked Kachikwu to rid the system of corrupt elements; work with anti-graft agencies and security outfits to recover stolen oil cash; prosecute the culprits; reposition the corporation’s structure to compete globally and give targets to all its subsidiaries as well as set a performance benchmark.

    Two months after Kachikwu took over, the President’s vision of putting the corporation on its toes and making it live up to its rating as the government’s cash-cow, is on track, laying credence to what integrity and good governance can do. Things are gradually taking shape, some industry watchers say.

    They recount how early this year, oil marketers almost ran the economy aground, as they subjected Nigerians to untold hardship. Then, a litre of petrol sold for as high as N300 and hawking of petroleum products became fashionable for jobless youths. Service nozzles at retail outlets ran dry and many stations temporarily closed shops.  Airlines were cancelling flights for lack of aviation fuel. Due to lack of gas supply to power stations caused by pipeline vandalism, electricity distribution companies at some point got zero power supply from the national grid, thereby throwing the nation into blackout.

    But, today, fuel stations have products, with attendants beg customers for patronage. Yet, the over N300 billion debt, owed to oil marketers under the petroleum subsidy regime, which they (marketers) claimed, was responsible for fuel scarcity, has not been paid. There is little or no report at all on gas pipeline vandalism. Substantially, stability has been attained in gas supply to the power stations, resulting to increased hours of power supply.

    At the NNPC, due process and new business models have suddenly replaced the old order.  Contracts that have no value to add to the system are being cancelled, a top official at the Warri Refinery told The Nation. He added: “It has been business unusual since Kachikwu came on board”.

    Not a few Nigerians have expressed shock at the sudden change of attitude even when the government has not taken any action against unscrupulous elements and saboteurs. The government, they noted, has not started pumping money into the petroleum and power sectors for upgrade and greater output.

    Their conclusion was that the perception of the President’s anticorruption stance has forced the saboteurs to fall in line while the hawks and locusts have voluntarily walked away.

    “Although Kachikwu is a lawyer by training, he is a thoroughbred oil and gas professional, having spent about 30 years in the oilindustry. He knows the industry inside out and has an impeccable antecedent. I’m sure he will deliver on his mission, make the industry and Nigerians proud, if allowed to work”, Oyibo told The Nation on Kachikwu’s appointment.

    But, the man in the saddle said his time is limited. Yet, he says the  presidential mandate must be carried out. The President gave him the liberty to use his discretion, provided such measures will lift the economy. Kachikwu has, however, urged Nigerians to brace for relocation from their comfort zones is the desired change moust be achieved. “If we don’t leave our comfort zones, this country will not move forward and you have no right to complain from the outside,” he said.

    Promising to make a difference, he said: “As I found myself thrust in this position and national responsibility, I’m determined to make my mark. I make bold to say that my time on this job is limited.

    “I see a lot of people take government jobs and their concern is on how long they last. My focus is not on how long but on how well. I’m conscious about how well I do the job given to me. I just want to make a difference, no matter how short I stay in office. So, if you see some of the actions that are coming out of my table, you’ll discover that I’m moving with a lot of speed, almost like I have very limited time to do much.

    “But frankly, I wouldn’t forgive myself if I stay there for one or two weeks and I didn’t take the right decisions. I would never have a reason to complain after this and that is my attitude. Every day I look at every model of our business and economy, I think what needs to be done.

    “I’m grateful to be working with the President, who has done everything one would expect in terms of giving you the latitude to bring your ideas on the table and discuss with him to raech decisions that will be beneficial to the industry and sort of, keep the institution moving. He has thus, given me a fairly free hand. And he is willing to assist me in sanitising the industry.”

     

    Taming the hawks, locusts

    In line with his decision to clean up the NNPC, make it competitive and profitable, Kachikwu has cutrunning costs. He has pruned directorates, cancelled and reviewed  some of the contracts initiated by the past administration.

    The business directorates, headed by group executive directors, have been trimmed from nine to four. After the reorganistaion, the directorates of Finance & Accounts, Exploration & Production, Corporate Planning & Strategy, Engineering & Technology, Gas & Power, Commercial & Investment, Corporate Services, Refining & Petrochemicals, and Business Development were rolled into Exploration & Production, Finance & Services, Refining & Technology and Commercial & Investment.

    The GMD also reviewed and cancelled the contracts on the delivery of crude oil to the refineries in Warri, Port Harcourt and Kaduna, the Offshore Processing Agreements (OPA) and the crude for product exchange agreement (SWAP).

    He opened tender for the 2015/2016 lifting of crude and condensate, called oil term contract. The successful bidders will boost government’s equity in oil and condensate production.

    In apparent move to discourage importation of refined products, Kachikwu has directed the management to ensure that the refineries operate at a minimum of 60 per cent of their installed capacities within 90 days, failing which he threatens to shut any of the refineries that fail to meet up for complete repair.

    He described as unacceptable the yearly revenue loss of N10 billion by each of the four refineries due to inefficiency.

    Sources say the NNPC chief’s focus is on how to optimise value from the 445,000 barrels of crude per day allocation to NNPC for local refining, even as the GMD described as unfortunate that only the Port Harcourt refinery could meet the 60 per cent target by the end of the year.

    According to him, the issue of pipeline vandalism and ageing facilities as reasons behind the refineries’ dismal performance will soon  be addressed.

    He said: “As at today, the average refining performance is 30 per cent. If by December, the refineries don’t work, I will export crude allocation and import refined petroleum products until we fix the refineries. Right now, the Port Harcourt refinery is showing signs that it will meet the December deadline.

    “However, I am not saying that the Warri and Kaduna refineries will not meet the deadline, but I hope they’ll all make it, so that we can continue to utilise our crude allocation to boost domestic refining.”

     

    Oil marketers’ and their new-found patriotism

    After holding the nation and Nigerians to ransom over the years, fuel importers under the auspices of Major Oil Marketers Association of Nigeria (MOMAN), have suddenly turned over a new leave. They have  become sober and patriotic. Their thinking in the past was that their refusal to import fule would trigger scarcity and that government would would be forced to accede to their requests. But, they have been proved wrong since Kachikwu came on board in the NNPC.

    At a forum in Lagos, The Nation sought to know why all filling stations have fuel to dispense in Lagos, even when the N300 billion debts remain unsettled.

    The Managing Director, Mobil Oil Nigeria Plc, Mr. Tunji Oyebanji, said nothing has changed substantially on the government’s indebtedness to the marketers.  According to him, the stability being enjoyed in the fuel supply chain today is because President Buhari has not said that his administration will not settle the bill. Besides, Oyebanji said the banks have been more flexible and the corporation has been bringing in more fuel and the refineries have started working.

    Echoing him, the Executive Secretary, Depot and Petroleum Products Marketers Association (DAPPMA), Mr. Olufemi Adewole, said: “The marketers didn’t hold the nation to ransom. Rather, the Petroleum Tanker Drivers (PTD) made the demand for their due debts to be paid and due to marketers’ poor financial state, they couldn’t pay. President Muhammed Buhari’s government has assured importers of payment, the banks, which were hitherto denying marketers’ funds, have calmed down and have granted some credit facilities to few marketers.

    “Check in the hinterland, fuel is only available in the major cities such as Lagos, Abuja, Port Harcourt and Kaduna, among others. There is no fuel in  the hinterland because the Product and Pipeline Marketing Company, an arm of NNPC, does more of the supplies as against the previous arrangement. So, what we have now is the concentration of products’ deliveries in cities.”

    The President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Francis Johnson said the commitment and assurance from the Buhari government has restored confidence and encouraged smooth running of affairs.