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Tag: militancy

  • Niger Delta militancy: Any end to huge toll on economy, environment?

    Niger Delta militancy: Any end to huge toll on economy, environment?

    In a bid to restore normalcy in the creeks of oil-producing communities, the Federal Government held an exploratory parley with Niger Delta leaders and representatives of militants. The talks, no doubt, would defuse tension in the region. But, beyond the 16-point requests of the Niger Delta ‘wise men’, experts say the authorities must avoid quick fixes as doing so would amount to scratching the problems on the surface. Assistant Editor CHIKODI OKEREOCHA reports.

    BUOYED by the recent release of 21 of the over 200 Chibok schoolgirls abducted by the Boko Haram militants in Borno State, the stage was on Tuesday set for President Muhammadu Buhari to score a major point in his administration’s search for a reprieve for the economy. It was the exploratory parley he held with some wise men from the Southsouth as part of ways to end militancy in the oil-rich region.

    The President’s triumphant disposition and new-found momentum after the 21 schoolgirls’ freedom on October 13 were tinged with unspoken worry and fear – the crippling effects of the attacks on oil facilities by the militants.

    Advocates of the President’s parley with the militants’ representatives argue that dialoguing would go a long way in resolving the issue faster than military operations.

    Not a few Nigerians believe that the 16-point shopping list presented to the President the Niger Delta leaders at the Tuesday meeting marked the beginning of the end for militancy in the oil-bearing zone.

    Although the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu confirmed that oil production output has risen to 2.1 million barrels per day (mbpd), the achievement may be a flash in the pan unless an enduring solution is found. At a point, the festering attacks on oil and gas installations by militants cut the nation’s production output to about half a million bpd, the lowest in 30 years.

    The magnitude of the injuries inflicted on the economy and the environment by militancy pushed the Federal Government and other stakeholders into panic mode. Vice President Yemi Osinbajo captured the disturbing scenario when he lamented that Nigeria has lost 60 per cent of its revenue and 40 per cent of its gas supply to pipeline vandalism since the resurgence of militancy.

    “One of the key reasons why we are in recession is the fact that we lost about 60 per cent of our revenue to pipeline vandalism and we lost almost 40 per cent of gas”, Prof Osinbajo, who doubles as the chair the Economic Management Team, said in Abeokuta, the Ogun State, capital.

    The 60 per cent revenue loss has been taking toll on the nation’s finances. For instance, the revenue allocation to the three tiers of government for September went down, dropping by about N90.27 billion. The federal, states and local government areas shared N420 billion for the month as against the N510.2 billion shared for August.

    The Permanent Secretary, Federal Ministry of Finance, Mahmoud Isa-Dutse, blamed the drop on pipeline vandalism and the negative impact of tumbling oil prices in the international market.

    “We need to do everything possible to normalise things in the Niger Delta region,” Dutse alerted.

    The crash in global oil prices which began in June 2014 has unsettled Nigeria, the world’s sixth largest oil producer. From over $120 per barrel, the price of Brent crude, which is the world benchmark price, stood at $46.73 per barrel as at the time of filing this report yesterday.

    So, without peace in the Niger Delta, it would be double jeopardy for Nigeria, which depends on oil for 70 per cent and 95 per cent of her revenue and foreign exchange earnings respectively.

    Budget, FDI threatened

    Dutse’s call for normalisation of the situation in the Niger Delta was not only triggered by the need to shore up revenue allocation, it was also prompted by the unquantifiable, far-reaching consequences of the crisis on virtually every aspect of the economy. Already, the projected N820 billion oil revenue proposed in this year’s N6.07 trillion Budget is under serious threat, no thanks to militancy.

    In the budget, the Federal Government pegged national production at 2.2 mbpd with an oil price benchmark of $38 per barrel. It expects to raise N820 billion from the oil sector to fund the Appropriation Act. With the attacks forcing output to as low as between 1.4 mbpd and 1.6 mbpd until it ramped up to 2.1 mbpd as announced by the Petroleum Resources minister, the government cannot but be incapacitated to fund the budget as envisaged.

    “Obviously it (militancy) would upstage the budget,” the Director, Health of Mother Earth Foundation (HOMEF), Mr. Nnimmo Bassey, said.

    The environmentalist, however, told The Nation that “the shortfall may probably be plugged by the massive loots being recovered from predatory public office holders. If the recovered funds do not plug the hole, the government can go ahead and cut the cost of governance as proposed recently by Mr. Peter Obi, the former governor of Anambra State.”

    In its apparent search for a way out, the government spoke of a plan to seek credit facilities to fund the 2016 Budget. To underscore its seriousness, the government has commenced the process of appointing two lead managers and a financial adviser to organise the issuance of $1 billion of Eurobonds before the turn of the year.

    The sale, according to the Debt Management Office (DMO), is the first tranche of a $4.5 billion Nigeria Global Medium-Term Notes Issuance Programme that runs through 2018. The arrangement, according to sources close to the deal, is coming on the heels of discussion with the Chinese Import-Export Bank – China Exim Bank for a $21 billion loan to finance the budget and develop new infrastructure projects.

    Acknowledging the fact that an estimated loss of N1.1 trillion in oil revenue for a budget predicated largely on oil sales is bound to have ripple effects, the Chief Executive Officer (CEO), Holistic Security Background Checks Limited, Don Okereke, lamented that Nigeria may have lost $2.24 billion in Foreign Direct Investment (FDI), the worst in its history.

    Relying of economists’ reports, he told The Nation that between July 2015 and August 2016, Nigeria witnessed unprecedented decline in the value of direct and portfolio investments, which culminated in the economic recession.

    He said the other reasons adduced by the experts for FDI’s free-fall include scarcity of foreign currency to support revenue repatriation by investors, in addition to the spate of violence, particularly in the oil-producing region, which was attracting more than 70 per cent of the investments in the country.

    Citing the National Bureau of Statistics (NBS) Q2 Report, Okereke said all the three major components of investment such as FDI, portfolio investment and other investments recorded huge declines.

    He noted that the declaration of force majeure by oil majors underscores the fact that “business and other economic activities do not thrive in an atmosphere of unpredictability and uncertainty. Few people or organisations will want to gamble with their hard earned money.”

    Environment, electricity

    generation suffer

    To Bassey, the crippling effects of the crisis go beyond monetary losses.

    He said: “It is easy to compute monetary losses. However, I think it is not right to moan over monetary decline without looking at the true cost of oil exploitation – the pollutions, the poisonings and the deaths.

    “We cannot ignore the impacts of gas flaring and the reduction of life expectancy in the oil communities to a mere 41 years. When I recall how an Ogoni girl told me that ‘pollution has stolen our mothers’ I cannot afford to think about oil production just in terms of money.”

    Bassey noted that every stakeholder in the Nigerian project acknowledges dire consequences of the conflict in the Niger Delta to the environment. “Every act of pipeline sabotage results in severe pollution, which further places the people and the ecosystem at risk, he told The Nation.

    He described as unfortunate that some saboteurs are breaching oil facilities that at a time the government has kicked the clean-up of the Niger Delta.

    Describing the development as “double tragedy”, Bassey alleged that oil companies are already exploiting the situation to claim that oil field incidents have always been mostly due to third party actions.

    “We know this is not true, but with the increasing obvious acts of interferences the tendency is for the public to assume that oil companies are vindicated and can be left off the hook even for their own errors,” Bassey said.

    Not taken in by the barrage of force majeure by International Oil Companies (IOCs), the environmentalist accused them of exploiting loopholes in the nation’s laws to reduce their losses at crisis periods.

    “Their major concern is to stack up profits for their shareholders. They are business outfits, not philanthropic organisations. They would exploit anything to keep their bottom line. We cannot bemoan that”, he charged, asking, “Why have we not been able to produce a suitable petroleum industry law?”

    Bassey insisted that the focus on FDIs rather than local, national and regional production will continue to place Nigeria and other African nations on weak platforms when it comes to negotiating conditions on which those foreign entities operate.

    He urged the Federal Government to take advantage of the situation by developing other productive sectors to divest the oil-dependent economy.

    According to him, the oil sector operates as an enclave and is not a high volume employer of labour. Besides, up to 95 per cent of the investments in the sector do not happen here in Nigeria.

    “The high employment sectors, such as agriculture, textiles and food processing, have been neglected. That is what we should be counting and not the number of contract jobs lost in the petroleum sector,” Bassey said. Oil, he said, is a non-renewable resource that has proven harmful to the planet. “Even if it does not dry up, it will soon be what has come to be termed ‘stranded assets’”, he stated.

    The posers raised by Bassey include: “Did you pay attention to the fact that a parliament has voted against the production of cars with combustion engines? Have we noticed the solar aircraft that flew around the world? What is the future of oil? What more FDI should we expect from that sector and for how long?”

    It is unclear if the authorities appreciate these fundamental issues. What is not in doubt is that the estimated N1.1 trillion oil revenues lost to militants’ attacks on oil installations in the last five months does not exclude losses in gas revenues resulting from disruptions in gas supplies to domestic power and industrial plants as well as export markets. The 40 per cent loss in gas supply is also affecting electricity generation and supply.

    About 70 per cent of Nigeria’s power generation is from gas-fired turbines, leaving 30 per cent to the hydro. Unfortunately, nothing much is being done on the exploration of alternative power sources such as renewable energy, including coal, solar, wind, and biomass.

    Since the gas required to power the power plants is piped from the Niger Delta, renewed militancy in the area has continued to compromise the distribution of gas to the various plants. This is why Nigeria with its 170 million population and arguably Africa’s largest economy, is still struggling to achieve 4, 500 megawatts (mw) of electricity.

    A glimmer of hope

    The unilateral ceasefire declared by militants paved the way for Tuesday’s meeting of the Federal Government, led by President Muhammadu Buhari, leaders and representatives of militants in Abuja. The President was accompanied by Vice President Yemi Osinbajo, Chief of Staff to the President Abba Kyari, Secretary to the Government of the Federation (SGF) Babachir David Lawal and Kachikwu among other ministers as well as Service chiefs.

    Those who represented the militants under the auspices of Pan Niger Delta Group (PNDG),  are: Governors Ifeanyi Okowa (Delta); Seriake Dickson (Bayelsa); Udom Emmanuel (Cross River), elder statesman Chief Edwin Clark, royal fathers and ministers from the Niger Delta, former governors, including Obong Victor Attah (Akwa Ibom State and  civil rights’ activists.

     The Nation learnt that two groups – the Reformed Niger Delta Avengers (RNDA) and Niger Delta Peoples Professional Volunteers Force (NDPPVF) – kicked against the composition of the PNDF. They, prior to Tuesday’s meeting, jointly issued a statement to Chief Clark, requesting for the inclusion of one Mr. Timipa Jenkins Okonipere as a member because of his understanding of the problems in the region and his link with militants.

    But, despite their opposition, the exploratory meeting, which many believe has opened a vista of resolving the lingering unrest in the Niger Delta, held.

    A source, who pleaded for anonymity, said that the possibility of getting the militants to lay down their arms partly informed a recent declaration Kachikwu, that the force majeure on all the key grades would be lifted next month.

    On the 16-point shopping list presented by Niger Delta stakeholders to the Federal Government as way forward are:

    • Ownership of oil blocks
    • Review of Amnesty Programme
    • Relocation of IOCs’ head offices to areas of operation
    • Approval of Maritime University
    • Strengthening of Niger Delta Ministry
    • Revival of key critical infrastructure
    • Resettlement of Bakassi indigenes
    • Restructuring and funding of NDDC
    • Introduction of fiscal federalism
    • Economic development, empowerment of Niger Delta people
    • Improved power supply
    • Security surveillance
    • Protection of oil, gas infrastructure
    • Meeting IDP’s immediate needs
    • Addressing effects of increased military presence in Niger Delta region
    • Ogoni Clean-up, environmental remediation.

    Experts are clamouring for the holistic tackling of the root causes of militant actions to foreclose resurgence.

    “The question that needs to be answered is why militancy occurred in the first place. Who introduced violent actions in the Niger Delta? That is where we have to start from,” Bassey said.

    Recalling the Odi Massacre in 1999, Odioma in 2005, Ogoni from 1993-1995 and Gbaramatu in 2009, among others, he said militarisation instigates some form of responses. “In other words, the oil companies and state security forces have to look inwards and examine the origins of the flashpoints,” he said.

    According to him, amnesty can only douse tensions at the programme attends to selected individuals.

    “The real solution will be found when the root cause of the despoliation of the region, destruction of livelihoods and perceived marginalisation are resolved,” he maintained.

    He has an ally in Okereke who noted that the Amnesty Programme was tantamount to treating the symptoms of a disease as against fixing the remote and immediate causes of the disease. He warned that militancy would resume as soon as the lucrative crude oil protection contracts, largesse end.

    The late Nigerian President Umar Musa Yar’Adua granted amnesty to Niger Delta militants about seven years ago. The agitators then, said they wanted a better deal for their people who, despite being the goose that lays the golden egg, suffered environmental degradation and economic dislocation because of oil production.

    Many of the militants were encouraged to drop their arms and agitation in exchange for some cash incentives and training. The programme offered monthly stipends to the former militants, a scheme, which former President Goodluck Jonathan sustained by awarding mouth-watering contracts to a few militants and ethnic warlords.

    The largesse did not go down well with some militants who were excluded. It is believed that the bad blood generated by the un-even distribution of benefits informed the fresh waves of bombings and destruction of facilities in the creeks of the Niger Delta.

    The fact that Buhari is said to have reduced funding for the programme by 70 per cent, and even hinted of plans to phase it out by 2018 angered them more. His earlier threat to treat members of the Niger Delta Avengers (NDA) like the Boko Haram terrorists also emboldened them.

    So, Okereke insisted that solving the Niger Delta quagmire would go beyond ‘settling’ militants or the arm-wielding youths. “Local communities must be carried along,” he recommended.

    He said his concern stemmed from the long-term environmental impacts of vandalism of oil pipelines and the unprecedented proliferation of sophisticated arms in the region.

    Pointing out that the Niger Delta was threatened by serious environmental degradation and challenges prior to renewed attacks on oil facilities, he said continued attacks would naturally worsen the situation. “The situation in the Niger Delta is still dicey and volatile,” the security analyst/consultant, warned.

    Other recommendations

    Okereke’s said a holistic approach as opposed to quick fixes will go a long way to stem the tide of recurring agitation and militancy in the Niger Delta.

    He added that in the interim, mopping up illegal arms and explosive devices in the region and other parts of the country would help.

    His words: “Those arms/explosives are the oxygen that sustains militancy. If the government is sincere, all they need to do is implement recommendations of the previous committees.”

    Okereke noted that the high level of youth unemployment in the country must be addressed, as according to him, if the youths are engaged in profitable businesses or employments, there would not be time for them to engage in criminality and militancy.

    “Massive infrastructural development and citing of industries in that area are very key. This will create employment opportunities, he added.

    To Bassey, environmental remediation and restoration coupled with revival of livelihoods will get everyone working. “Dialogue and a political resolution of the many complaints are key. The people demand a role in the management of their environment and resources and by extension, what we call a sense of re-source democracy,” he said.

    Will the government heeds the wise counsels? The consensus of experts and stakeholders is that unless and until it does so, the Niger Delta crisis will linger, thus denying Nigerians the opportunity of savouring the joy that ought to come with the gains made against Boko Haram blood hounds in the Northeast.

  • FG moves against use of chemical weapon

    The Federal Government is taking steps to prevent use of chemical weapons for insurgency and militancy in the country.

    Apart from banning unneeded dangerous chemicals from coming into the country, the government is also monitoring the use of dangerous chemicals needed for other legitimate use in Nigeria.

    The Acting Director General of the National Agency for Food and Drug Administration and Control (NAFDAC), Mrs. Yetunde Oni and the Permanent Secretary of Political and Economic Affairs in the Office of the Secretary to the Government of the Federation and Chairman of the NAC/BWC Office, Ambassador Olukunle Bamgbose, disclosed the new move in Abuja on Monday.

    They spoke during an international workshop on Assistance and Protection Against Chemical Weapons” organised by the National Authority on Chemical and Biological Weapons Conventions Office of the Secretary to the Government of the Federation (OSGF), the Organization for the Prohibition of Chemical Weapons (OPCW), the African Union (AU) and Economic Community of West African States (ECOWAS).

    Oni said: “You are aware NAFDAC is not solely meant for food and drugs alone, we also control chemicals. In a bit to do what is expected of us in ensuring the chemicals are used for the purpose for which they are meant, NAFDAC restructured and we established the chemical evaluation and research directorate. The onus is on this directorate to ensure that whoever is bringing in the chemicals is given a checklist.”

    According to her, there is increasing evidences that chemical can contribute to health, environmental and security problems at various stages during their life-cycle from production, import and disposal.

    Bamgbose said that the event seek to identify and bridge the gaps in the implementation of the Chemical Weapon Control and proffer improvement.

    The workshop, he said, is also to evolve a National Action Plan to guide and regulate the use and threat to the use of chemical weapons in Nigeria among others threats.

    The ECOWAS Commissioner for Political Affairs, Peace and Security, Mrs. Halima Ahmed warned the Federal Government against ignoring the possibility of the Boko Haram and Niger-Delta militants using biological and chemical weapons for terrorism.

    She said: “ECOWAS is committed to ensuring that chemical and biological weapons threats are not allowed with the consequences of their usage in Syria and other parts of Middle Eat. On no account should Boko Haram insurgents and Niger Delta militants be allowed to have access to chemical and biological weapons in Nigeria or other terror groups in Africa.”

    The Director General, Organization for the Prohibition of Chemical Weapons (OPCW) represented by the Project Officer, Assistance and Protection of the organisation Esmel Oscar Meless urged the domestication of all legal instruments to prohibit usage of chemical and biological weapons  in West Africa and Africa.

  • Nigeria lost N2.1tr to militancy, says NNPC boss

    Nigeria lost N2.1tr to militancy, says NNPC boss

    Nigeria has lost over N2 trillion to militancy and pipeline vandalism since the beginning of the year,  Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Maikanti Baru has said.

    He said: “Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets.

    “This implies that 60 per cent of oil production lost is NNPC-FGN equity. At an estimated price of $45 per barrel, the total 2016 revenue loss to the Federation Account translates to about $7 billion.

    “This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of national budget; and a new 1,700- kilometre pipeline,’’ he was quoted as saying by online newspaper Premium Times

    To resolve this, Baru said the NNPC planned to increase security of oil and gas assets, improve its community social responsibility and the amnesty programme.

    He added that the NNPC planned “to renegotiate terms of Production Sharing Contracts with deep offshore operating companies because with the current agreement, only 17.7 per cent of total revenue comes to government”.

  • Nigeria lost N2tn to militancy, pipeline vandalism – NNPC

    Nigeria lost N2tn to militancy, pipeline vandalism – NNPC

    Renewed  militancy in the Niger Delta and oil pipe vandalism have cost Nigeria about $7bn, ( equivalent of N2.1tn) this year alone, according to the Nigerian National Petroleum Corporation (NNPC).

    NNPC Group Managing Director Maikanti Baru speaking at the 2016 Fiscal Liquidity Assessment Committee Retreat in Abuja put the total volume of crude oil thus lost to vandalism at 7000kpd.

    “Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets,” Baru said in his paper “Global Oil Prices, Militancy and Terrorism and its Impact on Government Revenue in Nigeria.”

    “This implies that 60 per cent of oil production lost is NNPC-FGN equity.

    “At an estimated price of 45 dollars per barrel, the total 2016 revenue loss to the Federation Account translates to about 7 billion dollars.

    He said that apart from security challenges in the region, politics, judiciary, oil prices and production cost continued to impact negatively on the oil industry.

    He said the money lost in this process to “could have used to achieve major infrastructural milestones.

    “This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of National budget; and a new 1,700 kilometre pipeline.”

    To resolve this, Baru said the NNPC planned to increase security of oil and gas assets, improve its community social responsibility and the Amnesty programme.

    He said the NNPC planned “to renegotiate terms of Production Sharing Contract with deep offshore operating companies because with the current agreement, only 17.7 per cent of total revenue comes to government.”

  • How we’ll tame militancy, by IGP

    How we’ll tame militancy, by IGP

    INSPECTOR-GENERAL of Police (IGP) Ibrahim Idris yesterday spoke of plans by the police to cut militants’ activities in the Niger Delta region by 80 per cent by building the capacity of marine police.

    Speaking at the IGP Conference in Abuja yesterday, Idris said: “We are going to cut the activities of militants by 80 per cent, it is important to build the capacity of our marine police.”

    The IGP said that a marine school would be established in Bayelsa to build the capacity of police personnel to enhance service delivery.

    He also said that the Special Anti-Robbery Squad (SARS) would be trained in collaboration with the Nigerian Bar Association, Civil Society Organisations and human rights organisations.

    The police chief explained that the collaboration was aimed at changing the public perception about personnel of the security unit (SARS) of the police.

    On the training of personnel of the Police Mobile Force,   Idris said other training facilities would be used pending the return to Gwoza in Borno.

    “We cannot open Gwoza now but we will do skeletal services for now but soon we will move there,” he said adding that the force would collaborate with the Italian police for the training of border patrol personnel for optimal performance

  • Militancy: Imo gives free medical service

    The Imo State Amnesty Committee has distributed materials to residents of oil producing communities in Ohaji-Egbema Local Government Area, following militant attacks.

    The residents had fled their villages in the heat of the attacks.

    The materials included cartons of noodles, tubers of yam, bags of rice and beans, bottled drinks, foams and blankets.

    The committee also kick-started free medical service to address the health challenges of the returnees.

    Militants operating in the riverine areas recently renounced militancy and other forms of criminality and surrendered their arms to the government.

    This prompted the residents, who had fled their homes for fear of being killed, to return.

    The beneficiary communities are: Awara, Ochia, Assah, Obille, Obittii, Ikwerede, among others.

    The committee’s Chairman and wife of the governor, Mrs Nneoma Nkechi Okorocha said the programme was aimed at alleviating the suffering of the hitherto displaced persons and to address their health challenges.

    She called for enduring peace in the area to engender development.

    Mts Okorocha said: “As the biggest local government area in the state, this area cannot achieve its development unless the people come together to champion the course of peace.”

    An indigene and Vice Chairman of the Amnesty Committee, Kingsely Uju, described the materials and the free medical service “as the beginning of peace in the area”.

  • Osinbajo blames recession on militancy

    Osinbajo blames recession on militancy

    Vice President Yemi Osinbajo has put the blame for the economic recession on the bombings of oil installations in the Niger Delta.

    The Niger Delta Avengers and other militant groups have been bombing oil and power installations.

    Speaking at the Presidential Quarterly Business Forum at the State House in Abuja yesterday, Prof. Osinbajo said the bombings had more adverse impact on the 2016 budget and the economy than the low prices of oil in the international market.

    According to him, the 2016 budget properly anticipated the low oil price, but did not expect the drop in oil production caused by the bombings.

    He said the budgetary expenditure predicated on a daily crude oil production of 2.2 million barrels witnessed a drastic drop to less than 1.1 million barrels per day due to the bombings.

    His words: “Perhaps it is important for us to understand the nature of this recession in which we have found ourselves. In discussing this issue of recession, there is the tendency for people to generalise; a lot depends on what sort of recession and how we got here.

    “If we did not have vandalisation in the Niger Delta as we are currently suffering, we will not have this recession today. Moreover, in looking at the solutions, we should try to focus on the type of problem we have and what instigated it, then we can begin to come up with better solutions.”

    But rather than analyzing how Nigeria came about the problems, Osinbajo noted that some were criticising the Federal Government.

    Reiterating the government’s readiness to address power sector challenges, the Vice President said it would require a ‘revolution’ to shore up power to adequate level nationwide.

    He said the government would do everything possible to attain the February 2016 power generation level prior to the pipeline bombings.

    “We are doing a whole lot by interfacing with the private sector because we realise their role in the economy. If the Dangote refinery comes on stream, it will help us overcome some of those challenges, like the sub-sea gas pipelines; it will take care of vandalisation.

    “Let me point out that there is no question at all that the private sector is crucial.’’

    “The up-coming Dangote Refinery has 650,000 barrels per day capacity.

    “If Dangote Refinery comes on stream by 2018, that would significantly affect the economy.

    “About 30 per cent of our foreign exchange outlay today is on importation of PMS (Premium Motor Spirit),” Osinbajo said, adding:

    “If we can deal with that 30 per cent, obviously there will be less pressure on our foreign exchange reserve.

    “But I think the more important thing is how to clean up the mess in the power sector, especially infrastructure. In the short term, we will try to bring up power to an appreciable level to help the manufacturing sector,”he said.

    “There is no place anywhere in the world where you can lose one million barrels per day in oil production when you are projecting 2.2 million barrels per day and you would not suffer tremendously.

    “It becomes so, especially when that same revenue is what drives your non-oil revenues,’’ Osinbajo said.

    He advised that the country should look for solutions peculiar to its circumstances.

    “We have to look at what problems that we have and try to focus on some solutions that can come from there.”

    Minister of Budget and National Planning Senator Udoma Udo Udoma, said the country was indeed in a recession owing to gross domestic product growth which showed negative output for the second quarter of 2016.

    In a power point presentation on the state of the economy, he said inflation stood at 17.1 per cent as at July, with very marginal improvement in health, transport, recreation and culture.

    While food inflation increased to 15.8 per cent in July, he said, core inflation reached 16.9 per cent.

    Giving reasons for the recession, Udoma said that the unsustainable economic structure was characterized by dependence on a single commodity, crude oil, whose pricing was out of Nigeria’s control.

    He said: “Oil sector contributes less than 9 per cent of GDP but about 80 per cent of government revenue and 95 per cent of forex.

    “Collapse of crude oil prices from over $110 per barrel in 2014 to less than $30 per barrel in the 1st quarter (Q1) of 2016, market expectations are that it will be lower for longer.

    “Foreign reserves declined from $37.3billion in Q2,2014 to $25.4billion by August 2016, with reduced confidence leading to declining equity and foreign investment capital inflows from $9.7 billion by the end of Q2, 2014 to $0.64 billion at the end of Q2, 2016”.

    He said that unemployment rate stood at 19.3 per cent in the second quarter of 2016, rising with 400,000 persons, from 15.0 million to 15.4 million.

    Minister of Finance Mrs Kemi Adeosun, said the economy had witnessed a declining Gross Domestic Product (GDP) growth over the years with increasing levels of unproductive debt.

    Noting that there was significant drop in external debt between 2005 and 2006 as a result of debt forgiveness, she said that the debt levels rose at 16 per cent between 2008 and 2015.

    Some stakeholders at the forum listed lack of access to finance, high interest rate and high energy cost, lack of access to foreign exchange, transport and infrastructure deficit as the top challenges facing business.

    Others, they said, include weak export support, inconsistent government policies and ease of doing business challenges, including approval delays,  low support for domestic manufacturing, delays from Customs officials and security issues.

    The challenges, they said, are responsible for promising and vibrant businesses crumbling within the first five years of establishment.

    President of Lagos Chamber of Commerce Micheal Cole, advised the government to show consistency in its policies to reflate the economy and place it on the path of sustainable growth.

    He lauded the Presidency for initiating the quarterly forum, adding that the government could measure its progress by getting regular feedbacks from the citizens.

    President of Manufacturers ýAssociation of Nigeria (MAN), President Frank Udemba said it was encouraging that government now realised the importance of the private sector as the engine room for growth.

    “Its a wonderful development. The fact that government now engages the organised private sector and recognising the fact that the private sector is possibly the engine of growth, the driver of the economy.

    “So we are happy about that. And this has given us opportunity to air our views concerning the policies they have and how to get this country out of the current recession. Its something that should be encouraged and we hope that it would continue.

    “Already, government has promised to sell off some assets to beef up the foreign reserve, that is key. We have a lot of challenges of doing businessý but basically they have to pump in a lot of money into infrastructure because that is a quick way to reflate the economy,” Udemba said.

     

  • We’ll end Niger Delta militancy, says Buhari

    We’ll end Niger Delta militancy, says Buhari

    The Federal Government will solve the Niger Delta militancy, President Muhammadu Buhari said yesterday.
    Besides, he assured Nigerians that the patriotic ones should not have any fears about the fight against corruption because his administration will ensure justice and fairness to all.
    He spoke in his hometown Daura in Katsina State after attending the Eid prayers to
    celebrate Eid-El-Kabir.
    The President, according to a statement by Senior Special Assistant (Media and Publicity) Garba Shehu, said: ‘‘Nigerians can see what we have done on Boko Haram and what we are doing to resolve the problem in the Niger Delta.
    ‘‘Before the elections, we identified three major problems confronting our country. The first is security; we need to sufficiently secure our country to manage it well.
    ‘‘The second is economy, especially job for the youths and fighting corruption which is continuous.
    ‘‘For the youths, graduates and non-graduates who are interested in agriculture, the Federal Ministry of Agriculture in collaboration with the CBN are doing something to provide employment for them,’’ the President said.
    Although he did not state how the Niger Delta militancy would be solved, the fedral government has confirmed having indirect talks with some of the militant groups.
    Besides, there is a full troops build up in the region following the launch of Operation Crocodile Smile by the military.
    The blowing up of oil installations and pipelines in the Niger Delta has reduced the country’s revenue by about 60 per cent, according to Vice President Yemi Osinbajo.
    Buhari also said those who abuse public trust will face justice in addition to returning their stolen assets to the nation’s coffers.
    He thanked Nigerians for supporting the Federal Government’s policies, programmes and actions aimed at improving security, revamping the economy and deepening the fight against corruption.
    He expressed joy that the harvest this year would be good. ‘‘We should thank God this year, the reports I’m getting, which is very pleasing, is that we will have a bumper harvest this year.
    The President said: ‘‘I want Nigerians to realise that what this government inherited after 16 years of the PDP government was no savings, no infrastructure, no power, no rail, no road and no security,” and assured Nigerians that better days lie ahead.

  • Militancy: Delta community alleges plan by military to invade it

    Militancy: Delta community alleges plan by military to invade it

    Just a few days after leaders of the Niger Delta advised the federal government to jettison the military option in solving the Niger Delta problem, one of the communities of the region, Gbaramatu Kingdom, Warri South-West council area of Delta State, has alerted of an alleged plan to launch a military offensive against its people by federal forces.

    Spokesman of the kingdom, Chief Godspower Gbenekama, speaking at a briefing in Warri yesterday, alleged that the nation’s security forces had concluded plans to attack Gbaramatu communities under the pretext of searching for members of the insurgent group, Niger Delta Avengers.

    Gbenekama, who said the state’s Commissioner for Information announced a plan by the military to embark on a two-week training in the creeks around the kingdom, noted that the announced plan was too much for convenience.

    “Please help us tell the whole world that the military has concluded plans to invade Gbaramatu communities under the guise of looking for members of the Niger Delta Avengers. It is the innocent people of our communities that will suffer should the military go ahead to bombard our communities. We don’t harbour members of the Niger Delta Avengers. The agitation cuts across the region so why single out only Gbaramatu kingdom?

    ” It is just not the training, we already know that they are training people to attack our people, they are bringing military men to attack our people. This has happened to us before.

    “We are aware that while the kings and Chiefs of the Niger Delta are struggling to bring peace because of the displeasures that are going on at government critical oil facilities, the government is thinking otherwise.

    “While we are begging for peace, the government is struggling, making arrangements to bombard Gbaramatu communities. We call you to cry out for us, let the world hear that we have said it in different occasions that we Kings, chiefs, chairmen and community leaders do not know who the members of the Niger Delta Avengers are.

    “We don’t know them. They don’t live in Gbaramatu; We don’t know where they live but agitations about better living is something that cuts across the whole Niger Delta region. That is why the present trend of companies facilities has been in the length and breadth of the whole Niger Delta and not limited to Gbaramatu”, he said

     

  • Militancy: Police to build stations at creeks

    Militancy: Police to build stations at creeks

    The Assistant Inspector-General of Police  (AIG) in-charge of Zone II, Abdulmajid Ali, yesterday spoke of plans by the police to build stations at the riverine communities in Lagos and Ogun states to keep militants at bay.

    Ali, who stated this at the Zonal Headquarters in Marina, added that the Marine Police in the zone will be empowered to patrol the waterways to guard against the resurgence of the militants.

    The AIG gave marching orders to the commissioners under his Command to reduced crime to the barest minimum.

    According to him, the newly established Zonal Intervention Squad (ZIS) has been empowered to deal with any criminal element, caught disrupting the peace in the the two states.

    Ali warned persons illegally manufacturing police uniforms and accoutrements to desist from the act, or face arrest. He also warned that land grabbers would henceforth be treated as armed robbers, kidnappers and murderers.

    Parading 15 suspects arrested by the zone, Ali said 11 of them were suspected armed robbers, three alleged fraudsters and a ‘cultist’.

    Some of the suspects are Keke Meme, 28, Samuel Agbonyinu, 29, Sunday Adepo alias Olota, 37, Olanrewaju Gbadamosi, 33, Lukman Akinola, 33, Dele Rotimi, 37, Taiwo Olabode, 38, Uche Anthony, 27, Taiwo Ayodele, 27, Tuned Taiwo (a.k.a Eniba), 23 and Adegoke Wasiu (a.k.a Sobo), 24, were arrested in different locations in Ogun State.

    He said six locally-made guns, 21 live ammunition and one imitation gun were recovered from the suspects.

    “On July 28, at about 12pm, the command received information that a gang of robbers terrorising Idiroko Border communities were on their way to rob a fish depot at Ijoko area, Otta, Ogun State. We dispatched a team of operatives and two of them were arrested at Ohunbe area.

    “A locally made gun was recovered from them with 10 rounds of live cartridges. In the course of investigation, the thrifty suspect was arrested at Idiroko. They confessed to have committed several other armed robberies with two of them having served prison terms. They also confessed to have snatched an AK47 rifle from a policeman.

    “On August 1, around 10am, a syndicate that specialised in hijacking trucks at gun-point along major highways were meeting at a hotel in Ore, Ondo State. A police team was detailed for the operation where six suspects were arrested at Ore, Fiditi and Ibadan (Oyo) and Ogijo (Ogun). Two locally-made short guns and a dummy gun were recovered from them.

    “The syndicate confessed to have hijacked about four trailers in Ogun since last year. They were also involved in serial kidnappings in neighbouring states including Ondo.’’

    Continuing, the AIG said two of the suspected fraudsters – Samuel Ephraim, 21 and Dosumu Gafar, 26, who allegedly tricked a lady in the United States of America (USA) into paying $40,000 into their accounts, were arrested with the help of their parents.

    He said the transfer of the money was facilitated by Bureau De Change operators.

    The third fraud case, Ali said, involved one Oluwatobi Obogo, who issued a N38 million dud cheque and obtained money under false pretences from one Kennena Nwosu.

    Admitting to being a hijacker, Gbadamosi told The Nation that he usually sold the stolen products for N2 million, adding that the buyers knew the items were stolen.

    He said he hijacked two heavy duty vehicles,  one containing groceries, which was sold to Mrs Taiwo Olabode and a truck containing Premium Motor Spirit  (PMS) sold to one Alfa Kabiru for N2 million each.

    He said: “I knew Mama (Olabode) through my father’s friend. You know she said that my father gave her money but that’s not true. I want to say that she does not pay my father but she pays us. My father is not even aware that she pays us. When we gave her the product, she was paying us installmentally.

    “The second one we did was fuel. We gave it to Alfa Kabiru. He said he would pay us N2 million but paid only N750, 000. He gave us, N500,000, N100,000 and N150,000.

    “I was in Ibadan and told one of my friends that I don’t have money so he said he would look for money for me. Later on, he came to where I was, I didn’t know the man talking to him was a police officer. That’s how I was arrested. I am not the ring leader but I had to tell them that I would cooperate with them because I am a changed person.

    “I was the one who helped them to arrest everybody here. I am even honest with them. You can ask my IPO. I believe God knows the purpose why they arrested me. Maybe I would have been killed on the next trip. I have gone for this operation just twice and I made up to N300,000.

    “They don’t always pay well. They pay small small. Normally I do plank business. I got into crime when I went to the village. That my friend who took me to the village was the one who introduced me to the business. I just want to plead that I would never do it again.”