The Nation Newspaper

Tag: Minister of State for Petroleum Resources

  • Another storm against Buhari’s men

    Another storm last week gathered again against some key officials in the President Muhammadu Buhari’s administration.

    The two officials now in the eye of the storm are the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, and the Inspector General of Police, Ibrahim Idris.

    Despite one of the cardinal goal of the government being fighting corruption to a standstill, it is sad that the main issues against these two officials border on corruption.

    The lid was blown off the alleged irregularities and on-going mess in NNPC when a protest letter by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu addressed to the President, was leaked.

    The country is yet to fully recover from the massive looting that took place in the oil sector under the past administrations.

    While the prices of oil in the international market hovered over $100 per barrel under those administrations, observers noted that there was little to show in the country for the huge revenue.

    Rather than use the income to develop the country, Nigeria remained lacking in basic infrastructures while substantial parts of the income fraudulently found their ways into the private pockets of those in charge.

    The former Minister of Petroleum Resources under the last administration, Mrs. Diezani Allison-Madueke, is still facing one corrupt charge or the other in Nigeria and the United Kingdom.

    Besides other allegations against the current GMD of NNPC, Kachikwu had last week specifically alleged in the letter that $25 billion contracts awarded by Baru didn’t follow due process.

    The letter, titled ‘Re: Matters of insubordination and lack of adherence to due process by the GMD NNPC – Dr. Baru,’ with reference number HMS/MPR/001/VOL.1/100 and dated August 30, 2017, reads in parts “Mr. President, yesterday (August 29, 2017) like many other Nigerians, l resumed work and confronted with many publications of massive changes within the NNPC.

    “Like the previous reorganisations and ‘repostings’ done since Dr. Baru resumed as GMD, I was never given the opportunity before the announcements to discuss these appointments.

    “This is so despite being the Minister of State, Petroleum, and Chairman, NNPC Board.

    “The board of NNPC, which you appointed and which has met every month since its inauguration, and which, by the NNPC, is meant to review these planned appointments and postings, was never briefed.

    “Members of the board learnt of these appointments from the pages of social media and the press release of NNPC.”

    Stressing that Baru ignored his earlier warnings to him, he said “Not only did he not give my letter the courtesy of a reply, he proceeded to announce the appointments without consultation on board concurrence.

    “Mr. President, please note that there is a board service committee, whose function is to review potential appointments and termination of senior staff prior to implementation. This committee was also not consulted.

    “The effect of the attitude of the GMD and the sidelining of the board is that there is a fear culture in the NNPC,” Kachikwu said.

    In his prayers to the President, Kachikwu said “We save NNPC and the oil industry from collapse arising from the above non-transparent practices and empower the board you inaugurated to do the needful.

    “That you save the office of the Minister of State from further humiliation and disrespect by compelling all parastatals to submit to oversight regulatory mandate and proper supervision which I am supposed to manage on your behalf,” he stated

    The major opposition Peoples Democratic Party (PDP) wasted no time to demand Baru’s immediate suspension.

    The National Publicity Secretary of PDP, Prince Dayo Adeyeye, had said “As a political party, we expect that the President, who prides himself as an indefatigable corruption fighter, would for once try to live above board, by genuinely allowing one of his own, accused of corruption, get properly investigated and prosecuted as a show of his impartiality in the war against corruption.

    “He should do this to correct the open impression Nigerians have about his so called anti-corruption war; that it’s just a tool of persecution of perceived enemies.

    “We view the allegations levelled against Baru by Kachikwu as too grave to be swept under the carpet and we insist that the NNPC GMD must be treated like an accused who should not have the opportunity to influence investigation into his alleged misdeeds.

    “In this light, we demand an immediate suspension of the NNPC GMD so that proper investigation can be carried out by the relevant anti-corruption agencies.” he said

    Also worried by the allegations in the oil sector, the Senate last week set up a committee chaired by Senator Aliyu Wammako, to investigate the issue.

    Unlike the Baru case where the allegations were raised within the executive arm of government, the allegations against the Inspector General of Police was spearhead by a sitting Senator of the Federal Republic of Nigeria, Senator Isa Hamma Misau (Bauchi Central).

    Apart from corruption allegations, Misau also raised allegation of infidelity against the Inspector General of Police.

    The Senate constituted a Special panel, headed by the Senate Deputy Chief Whip Francis Alimikhena (Edo North) to investigate the Inspector General of Police for alleged misappropriation of funds, illegal promotion and posting of senior officers and bribery and to also investigate claims that the IG put an officer in the family way and secretly wedded her in Kaduna.

    It also mandated its Committee on Ethics, Privileges and Public Petitions to investigate claims of professional misconduct against the IGP.

    All these allegations came to the public domain few months after some top officials of the government including  the suspended Secretary to the Government of the Federation (SGF), Babachir David Lawal, was investigated on alleged corruption charges.

    His case is yet to be resolved as the President might still be studying the investigative report submitted by the Vice President Yemi Osinbajo led three man committee.

    Also the resolution by the Senate not to confirm the appointment of the acting Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, is still subsisting.

    It will be a plus for the government to do everything possible to get to the bottom of these fresh cases.

    The administration should  also remain fair and just to all those involved in the alleged corruption issues, by giving all, fair hearing in a bit to get to the root of the issues.

    This is important, at least, to counter the frequent claims of selectiveness of its anti-corruption battle been leveled by the opposition party against the government.

    It should guide against being seen and viewed as playing the ostrich when corruption case is leveled against one of its officials.

     

  • Kachikwu keeps mum after meeting with Buhari  in Aso Rock

    Kachikwu keeps mum after meeting with Buhari  in Aso Rock

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu on Friday kept mum over the outcome of his meeting with President Muhammadu Buhari.

    He had met behind closed doors with the President at the Presidential Villa, Abuja.

    Kachikwu, who arrived Aso Rock around 11.30a. m. left around 12:50 p.m

    He simply said “No comment” when approached by journalists as he walked out of the President’s office with the Special Adviser to the President on Media and publicity, Femi Adesina.

    The minister has alleged that $25 billion contracts have been wrongly awarded by the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC),  Dr. Maikanti Baru.

    His protest was contained in a letter to the President, which somehow got leaked to the public on Tuesday.

    Apart from the Senate mandating its committee to probe the matter, the Peoples Democratic Party (PDP) had demanded for Baru’s sack.

  • Buhari, Kachikwu meet in Aso Rock

    Buhari, Kachikwu meet in Aso Rock

    President Muhammadu Buhari on Friday met behind closed doors with the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, at the Presidential Villa, Abuja.

    Kachikwu arrived Aso Rock around 11.30a. m.

    The minister has alleged that $25 billion contracts have been wrongly awarded by the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC),  Dr. Maikanti Baru.

    His protest was contained in a letter to the President, which somehow got leaked to the public on Tuesday.

    Apart from the Senate mandating its committee to probe the matter, the People’s Democratic Party (PDP) had demanded for Baru’s sack.

    The meeting was still in progress at the time of filling this report.

    Details later…

     

     

  • NNPC, Total sign agreement to deliver without pipelines

    NNPC, Total sign agreement to deliver without pipelines

    The Nigerian National Petroleum Corporation (NNPC) Tuesday signed a Joint Venture agreement with the Greenville Oil and Gas Co. Limited and Total for the production and distribution of Liquified Natural Gas (LNG) from Rumuji, Rivers state without pipelines to other parts of Nigeria, especially in the north.

    It is the pioneer Nigerian LNG that will distribute gas using special trucks for domestic consumption, by creating a virtual gas pipeline to supply natural gas to those regions not served or under served by physical pipelines.

    The project which stretch for about 1,000Km is said to have the capacity of creating numerous jobs for truck drivers, attendants and others.

    Speaking at the ceremony in Abuja, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, noted that the negotiation of the agreement had been on in the past three years.
    He said the agreement which would in the first instance produce 250 Standard Cubic Feet per can increase to 500SCUF per day in the long run.

    According to him, the “agreement will help us unlock undeliverable opportunities in terms of supply to power and supply entities. It will help some of the oil companies to meet up with their Direct Supply Obligations that they had earlier signed that they have been unable to execute.”

    He added that “we need to find our ways that in the absence of sufficient trucking to put pipelines in place very rapidly we needed to look for new technology. And we had been having this conversation over the last two three years. We started first by looking at the structure in which the gas and power of NNPC was working and we set up two companies -the NGLC which is the marketing company itself and of course the NGPTC, which is supposed to deal with the infrastructural provision.”

    The minister predicated the success that led to the signing of the agreement on the calmness in the Niger Delta which will enable the company access the gas.

    He said that the pioneer gas trucked project is coming as a challenge and opportunity to other investors that have been looking for a way to access and distribute gas in the absence of pipelines.

    Continuing, he said that “this doesn’t take away the need for pipelines. We are going to continue providing pipelines. But what is there is that we no longer can wait. We can actually move in a very robust manner and to get gas up in the north.”

    Kachikwu noted that what is still needed to be done is ensure that the payments issues are dealt with and the financing is being smooth for both the producer of the gas and the individuals who take responsibility to distribute it are both adequately paid.

    The minister stressed that “I think we will be working with you as federal government agencies once we begin to deploy to places like NNPC, the Central Bank, the Senate to ensure that payment under the new system are made on time. So that there is a good financing and funding for you to do the future expansion project.

    Kachikwu said: “The first one is 220 per day but it has the capacity to go up to 5,000 per day. So it is quite massive. So what you find is that over the next three to four years if the right finances are put in place and adequate patronage and market is created this could actual metamorphose into the avenue for deploying gas in the country.”

    He urged other investors to emulate the model especially at the centre where people can afford to pay the right kind of pricing for the supply of power.

     

     

  • FG not eager to sell refineries – Kachikwu

    FG not eager to sell refineries – Kachikwu

    The Federal Government, Thursday, said that it’s not ready to sell or concession any of its four refineries in whole or in part, as the refineries are yet to return to optimal level, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu has said.

    He said the refineries are currently operating below their capacity level, despite several years of turnaround maintenance check carried out on them, by the government.

    Speaking at the 2017 edition of the National Association of Energy Correspondents (NAEC) Conference in Lagos, Kachikwu said the government looks for external funds to rehabiliate the exisitng refineires, adding that the government met and discussed with one of the investors to invest $1billion in the rehabilation of the refineries, without having any shares in it. The theme is: ” PICB: Prospects and Challenges to Nigerian Oil and Gas Industry.”

    Represented by the Deputy Director, Department of Petroleum Resources(DPR), Kachikwu said the intention of the Federal Government to carry out the turnaround maintenance check on Warri, Port Harcourt 1 &2  and Kaduna refineries years ago, was not sell them, but to prepare them for improved processing of crude oil into petroleum products.

    He said: ” We sought externally for resources to finance the rehabiltation of the  existing refineries, which was a very tall order, telling someone to invest $1billion in the refineries rehabilitation, with no equity, and wait for incremental volumes of refined products to recoup their investment.

    According to him, the actual rehabilitation work would be carried out by the original refinery builders (ORBs), with financers funding the repair work, and a joint management team comprising ORBs, Financiers and NNPC, to steer the operation of the refineries over a period of 5-6 years to bleed incremental liquids for recouping investments.

    Kachikwu said the government has not done the valuation of the refineries, talk less of thinking of selling them to the investors, adding that the government needs to be sure of the worth of the refineries, before placing a price on them.

    On modular refineries, he said only two out of between agency 40 and 50 companies, which got the licences to operate the refineries have shown considerable interest in the project, adding that majority of them are yet realise the task involved in setting up refineries in the country.

    He said DPR is yet to ascertain what holders existing licences has done since they were issued licences, adding that the high percentage of  non-performance of the refineries made DOR to engage the owners or the licensees to ascertain their problems.

    On collocation, he said the government has moved from its initial model of collocating the refineries with the existing refineries to the co-location of brand new greenfield refineries.

    He said for Nigeria to become net exporter of petroleum products, the government needs to encourage companies to participate in the process of refining crude oil.

    He added that when Dangote Petrochemical Refineries is completed in 2019 with its over 600,000 capacity, coupled with modular refineries in operation, Nigeria would be self-sufficiency in the area of crude processing

    Also, the Chairman, Integrated Oil Limited, Captain Emmanuel Ihenacho (rtd), said funding is the major problem hindering the operation of modular refineries in the country.

    He said operating a refinery costs N$2billion, adding that local banks are not interested in providing the loan to present and prospective investors in refineries.

     

  • Kachikwu denies campaign posters

    Kachikwu denies campaign posters

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu Monday dissociated himself from his 2019 governorship election campaign posters in the Federal Capital Territory (FCT).

    He denied halving any knowledge of the poster, stressing that he has not indicated interest in running for any elective position in Delta State.

    The Director Press, Mr. Idang Alibi, in a rejoinder noted that “our attention has been drawn to fake campaign posters of the Honourable Minister of State for Petroleum Resources Dr. Emmanuel Ibe Kachikwu for the 2019 governorship elections in Delta State pasted by unknown persons across the Federal Capital Territory.”

    Kachikwu, according to the rejoinder, is focused on delivering on the reforms currently being implemented in the petroleum sector under the leadership of President Buhari and Ag President Osinbajo in line with his duties as Minister of State for Petroleum Resources and Chair of the Board of the Nigerian National Petroleum Corporation (NNPC).

    It added that the minister is committed to effectively representing his state of origin, Delta State in the federal cabinet to institutionalise transparency, accountability and productivity in the Nigerian oil and gas sector.

    It is gratifying that, despite challenges, measurable progress has been made in achieving important milestones under Kachikwu‘s watch and today, the petroleum sector is more transparent and contributes more to the national coffers. Consolidating on this progress remains the priority of Dr.Kachikwu and he refuses to be distracted from this focus.

    Kachikwu urged stakeholders in both the Oil and Gas sector and indeed the general public to discountenance these unfounded speculations.

    The Minister of State for Petroleum Resources assured all Nigerians of his and Government’s continued commitment to the welfare and well-being of the citizenry, while thanking them for usual cooperation and collaboration towards achieving the lofty dreams of a thriving Oil and Gas sector for Nigeria.

  • Lake Chad exploration: We’ll not go back without security clearance – Kachiku

    Lake Chad exploration: We’ll not go back without security clearance – Kachiku

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu Thursday said that only security clearance will determine whether the Nigerian National Petroleum Corporation (NNPC) will resume exploration for crude oil in the Lake Basin in Borno State.

    He called a press briefing in Abuja to specifically commiserate with the families of members of staff and military personnel that were the victims of the attack in the area. Asked whether the corporation would resume exploration activities in the basin again, the minister noted that NNPC did not kick start activities in the areas until when it got a green light from the security operatives, and that it wouldn’t still resume work there without security clearance.

    According to him, if NNPC desist from doing its job because of criminality it portends the danger of bringing the economy to a halt therefore, activities of the corporation in the basin will be based on sufficient security in the area.

    He said that exploration activities in the Lake Chad Basin was guided by about 200 security personnel which include the military personnel and JTF.

    The security agencies, who are experts in the field of surveillance, will take a second look at the terrain before certifying it safe for exploration activities.

    His words: “The reality is this: any time that NNPC decides to go into a terrain, it first has to get the privilege of security apparatus. That security advice was substantially clear for six months. So, that goes to show that there was some level of stability in that area. It wasn’t a misguided venture into the terrain.

    “Now, whether we will resume will depend again on what security clearance is given. We took the decision that we are not going to do things because of criminality in that area of the Chad and other parts of Nigeria, it means that the economy will stop. It means oil in the Niger Delta will stop.

    “I think my simple answer to that question is that provided there is sufficient security clearance I don’t see why we will not continue for that experience. The lesson we are going to take away is to look at the security apparatus to see whether there is a little more to do. I know that there were over 200 security personnel apparatus including the military, civilian JTF and all that. So it was very well protected.

    “Obviously the security agencies who are more experts in that field that I am will take a second look to see what more protection they will put in place. But certainly we will not go back unless they give us a clearance.”
    Kachikwu recalled that in line with the aspiration of President Muhammadu Buhari for the country to grow its current crude oil reserve base of over 37 billion barrel of oil, the NNPC resumed exploration activities in the Inland Sedimentary Trough areas.

    The minister added that in November last year, based on the advice from the military after successful campaign and degrading of the insurgency in that zone, the NNPC resumed exploration activities in area namely: Gubia Nugumeri, Munguno, Kukawa, Abdam, Guzamala and Mobar all.

    He said that insurgent however attacked the staff and soldiers on Tuesday.

    Kachikwu noted that specific data in terms of those who died were still being collated, adding that the ministry will release the information at the appropriate time.

    He said that the Nigerian Army had deployed its soldiers to the areas and that unconfirmed report had it that some rescue was recorded.

    The minister also explained that the sealing of 1.8 million barrel per day (mbp) set for Nigeria by the Organization of Petroleum Exporting Countries (OPEC) was yet to take effect.

    He said merely hitting a production of 1.8mb/d was not sufficient for the sealing to take effect.
    He noted that it has to be a month to month analysis of the situation and assurance that the country has triumph over what prevented its production before he can report to OPEC that the operating environment is now stable.

    This, according to him, has to be within the nine month for which Nigeria was given the exemption.

    He said: “First of all, the 1.8 has not come into effect. I am made to report back to them within the nine months’ time when we got the exemption to confirm  that we have stabilize production . It does not mean because we produced 1.8 in one day mean stabilization. It is a month to month analysis. That is when we get comfort that all the forces that prevented our production are upheld and we can consistently produce above 1.8.”

  • FEC okays new policies for oil, labour

    FEC okays new policies for oil, labour

    …FG to end fuel importation by 2019

     

    The Federal Executive Council (FEC) on Wednesday approved new policies for oil and labour sectors.

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu and Minister of Labour, Chris Ngige disclosed this to State House correspondents at the end of the FEC meeting chaired by Acting President Yemi Osinbajo at the Presidential Villa, Abuja.

    They were with the Minister of Information, Lai Mohammed and Minister of State for Budget and National Planning, Zainab Ahmed.

    Kachikwu said that the Federal Government is committed to ending fuel importation into Nigeria by 2019.

    He said “In terms of specifics. What a policy document does is that it gives you a general guideline in terms of where you are headed then you go into the specifics in other separate documents for purpose of execution. If you take the 2019 time frame for refinery for instance, it won’t tell you what I’m doing today but will tell you that I have set a timeline to exit importation and to get the refineries working by 2019.

    “But if you ask me specially off the shelve what are we doing on that? There is a steering committee already in place which I head, there is a technical committee team already set up headed by chief operating officer in NNPC, we have had series of meetings with individuals who are willing to put money into the refineries.

    “I need to state this clearly, this is not a sale, this is not a concession, this is a financing scheme and there are over 30 people who have indicated interest in that financing.

    “They are going to go through the usual due process mechanism to see who qualifies for that financing. What we have resolved however which we have at least have a landing is that each of the refineries would be repaired by the individual company that built the refinery.

    “Who does the  work is different from who does  finance the work to be done. We are still dialoguing who is going to get the financing opportunity but who is going to get the contracting opportunity to do the work is already decided. If you check the companies that built I think is Chioda in the north, Saitem in Warri if I’m not mistaken. I have forgotten the one in Port Harcourt but all of them have reached agreement with us in terms of willingness and readiness to do the so work.

    “Government is not putting money into this. It’s going to be very sector led effort and they will recover their money through incremental volumes that will arise from the production increase arising from the repairs. We are doing about 30 percent performances on most refineries now so if you get them to above 90 percent template we are going to use some of the product line to pay for some of the debts and free ourselves from the importation problems.” he said

    While noting that all the refineries in Nigeria today when repaired cannot cover all her consumption, he said that some level of efficiency and upgrade will increase the refineries capacity in the country.

    He said “We are banking on the fact that efficiency steps we are taking will reduce the consumption. We have gone from the 50 million liter per day when I resumed office down to today that is about 28 million liters per day.

    “So, obviously efficiency has wiped off smuggling, efficiency has reduced consumption and also whatever gains we made under the subsidy regime by taking the subsidy out has also taken out. So if we are reducing the level of consumption and increasing the efficiency of the refineries, we are banking that we will be able to exit importation completely. And this is not building in Dangote refinery that is 165,000 barrel cap on it, or the modular refineries we are looking at or the AGIP we are looking at.

    “So I think we are finally on course and we are going to be very aggressive on target,” he said.

    But he said that improving oil production target was very dicey.

    “We are targeting to recover full barrels; it’s going to be a longer time provided the OPEC environment permits I think I see the potential of 2.5 and 3 million barrels over the two year period. But then we are all looking at market fluidity and the challenges that goes with how much we pump into this market,” he said.

    On legislation, he said that a policy is a policy and cannot over take the legislation that will help drive inputs into some of what the National Assembly has done.

    “Ultimately we are going to work collaboratively to make sure all is put in place to push some of the policies we are doing here. Some are efficiency off the shelf things we can do on our own but some the legislative mandates behind it would have to crystallized.” he said

    According to him, the Council on Wednesday considered the Nigeria Petroleum Policy document.

    Stressing that the essence of the gas policy, which was considered three weeks ago, is towards changing the imperatives of Nigeria from an oil producing country to a gas producing country.

    He said “We are lot more privileged to produce more gas. Today policy focused on oil, the imperative needed to change in policy in the oil sector, it dealt in certain fundamentals we are already pursuing some of the policy.

    “We are working assiduously to exit the importation of fuel in 2019 and captured the cash calls changed we have done which enables the sector to fund itself through incremental volumes, it captures the reorganisation in the NNPC for efficiency and enable accountability, it captured the issues in the Niger Delta and what we needed to do as a government to focus on stability and consistency in the sector.

    “It is a very comprehensive 100 page document that deals with all the spectrum in the industry, the last time this was done was in 2007 and it has been 10 Years and you are aware that the dynamics of the oil industry has changed dramatically.

    “Apart from the fact fluidity in pricing and uncertainty in terms of the price regime in crude. We are pushing for a refining processing environment and move away from exporting as it were to refining petroleum product, that’s one change you will see.

    “Secondly how we sell our crude is going to be looked at, there is a lot of geographical market we need to look at long term contracting and sales as opposed to systemic contracting we have been doing,” he added.

    He was optimistic that the change process that was started in 2015 will be brought to logical conclusion in next few years if the new document is well executed.

    Ngige disclosed that FEC received the National Employment Policy which will guide the administration.

    He said that the last employment policy in operation in Nigeria was approved in 2002.

    “That’s 14 years and in that 14 years a lot of things have changed in labour and employment industry.  Things like employment, for people with disabilities, decent jobs programme and doing jobs without polluting the environment and other things that are new and contemporary in the labour market.

    “So this policy was reviewed in 2013 with technical assistance from international labour organisations and major stakeholders like employers were involved, workers, unions and this document was crystallised and this policy seeks to give decent jobs to people.

    “Job creation is multi sectoral, it is not limited to one ministry, not limited to the public service alone and private sector is involved and this policy seeks to capture the relevant affected persons and people that will apply this so that we can fight unemployment and under employment,” he said.

    On the issue of minimum wage, he said “You were here in May when FRC approved the composition of the minimum wage committee. We have since then gone into action

    “Government has approved their representation which is the secretariat. The secretariat is domiciled at the National Council for Salaries and Wages Commission with the chairman there acting as secretary.

    “We also have the minister of labour and employment as deputy chairman, minister of finance, minister of budget and national planning as members. The only appointee which is being awaited now is the chairman and we have concluded the process for the nomination. We are waiting for the requisite approval.

    “The labour centers that is NLC and TUC are yet to bring their nomination that is on the workers side. On the employers’ side, you know we are like a subunit. We have Nigeria Employers Consultative Assembly, Nigeria Employers Consultative Association (NECA), Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture. (NACCIMA), Small and Medium Scale Industry Association (SMSIA).

    “These groups will give us nominations so we are waiting. Once these nominations are in place the president will then inaugurate the committee.

    “On the other side, the labour laws are clear; the labour laws seek to protect both the workers and the employers. You don’t sleep on your right. When you know what is there your worker cannot take you for granted provided you also conform to the law. You cannot lock them out and if you do the law says you pay them for the period of lock out. They too cannot take the law into their hands and embark on strike without giving you the mandatory notice, due consideration and social dialogue with you internally, second level with the ministry of labour and employment and third level is the issue of giving you notice.” he added

    Ahmed said that her Ministry presented the National Social Protection policy to the Council on Wednesday.

    The policy, she said, is a framework that seeks to provide social justice equity and inclusive growth by using a transformative mechanism for mitigating poverty and unemployment in Nigeria.

    According to her, the social investment programme started by the Federal Government since 2016 were drawn from the policy, which is currently in a draft form.

    “What we have done is to submit to the council today, a policy that is largely inspirational, aspirational but seeks to ensure that every Nigerian gets at least a minimum of what is required in terms of human development and protection,” she stated.

  • FG to spend N3.4tr on petroleum products this year

    FG to spend N3.4tr on petroleum products this year

    …Requires $1.1b, $1.2b for repairing refineries

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, Thursday revealed that the Federal Government would in this year spend N3.4trillion on the importation of petroleum products.

    Addressing newsmen in Abuja, he refuted reports that quoted him to have said that government was concessioning its refineries.

    He said that government has no plans to concession the refineries but it is only making arrangements for private financing of their repair. The minister denied that the claims that Oando has won the contract for financing the repair of the refineries.

    According to him, Nigeria that consumes 35million daily presently has domestic refining capacity of six million liters, which is about 25% of the demand.

    The minister said “the importation of products even between January and December of this year, amounts to 20million metric tonnes and a total amounting of N3.4 trillion. The logistic cost of that importation shipping clearing and all that is about N1.34trillion since the same one year period.”

    Owing to this domestic and demand situation, the government had to plan for the improvement of its domestic refining capacity.

    Kachikwu noted that government raised a technical and steering committees on the financing of the refineries that its report will be presented to the National Assembly and Federal Executive Council upon conclusion.

    He however noted that what has been so far established is the magnitude of work that is required in the entities.

    The minister said that apart from piping, about $1.1billion, $1.2billion (depending of the category), will be required to fix the refineries.

    His words: “Internally, we have been able to determine the amount we want to do this work in terms of what work is required to be done. And the total cumulative amount if I am not mistaking is the $1.1, $1.2b type category depend on the refineries with specific breakdown. That of course does not include the cost of piping.”
    Explaining why government has decided to deal with the Chioda, Sapiem and GGC, he said that Chioda built Kaduna refinery, Sapiem built Warri refineries while CGC built the PortHacourt refineries.

    These companies, according to him, have the designs, engineering outlay and upgrade capability for the refineries.

    Today, the reality is still that the reality for downstream product surges that very few people will undertake the financing.  So that is why we have created a business model that tie them to the Direct Sale Direct Purchase (DSDP) Programme and that is still working and that is still work in progress.

    “When they finish this and are done with the analysis, I will expect that they will then invite everybody who is interested to the commercial terms set out formally…before we get to FEC, National Assembly and Mr. President. We haven’t reached there and so nobody can say contracts have been given.”

    Kachikwu advised the International Oil Companies to invest in building refineries in Nigeria in order to avoid the negative effects of dip in oil prices.

    He said more importantly, we need to address IOCs in terms of what they need to do to help local refining because if you encourage all these refining capabilities whenever they run out of crude availability we need to look at them why are you taking out crude when you can get the same pricing equivalent in local refining.”

    In terms of the incentives or guarantee for the corporations that would finance the repair of the refineries, he said that there will incremental volumes, access to sales to cushion the challenge in the markets in terms of pricing.

    He revealed that the Organization of Petroleum Exporting Countries (OPEC) is reaching out to its non-members including the US on measures to control the glut in the market.

  • Buhari’s new vision will develop Nigeria – Osinbajo

    Buhari’s new vision will develop Nigeria – Osinbajo

    Acting President Yemi Osinbajo on Tuesday said that the Muhammadu Buhari’s administration is promoting a new way of thinking and engagement that will secure the development of the Niger Delta and the entire country.

    The new approach, he said, involves an active and effective collaboration between the government, the private sector and the communities.

    He also assured that the new approach would ensures that the government finishes whatever is started in the region.

    Prof. Osinbajo spoke during a meeting with members of a delegation from Bayelsa State regarding the $3.6B Brass Fertilizer & Petro-Chemical Company that is expected to come on steam soon.

    The delegation which included executives of the company was led by Governor Seriake Dickson of Bayelsa State.

    In a statement by the Senior Special Assistant on media and publicity, Laolu Akande, Osinbajo lamented that only 12% completion rate was recorded in several of the projects undertaken by the Niger Delta Development Commission in the past years, while the rest were abandoned.

    According to him, some of the projects were not designed to succeed, but just for some people to make money.

    Stressing that a new way of thinking is emerging, he gave instances of effective collaboration with the private sector, as he recalled the example of the NLNG being effective collaborations.

    “The Buhari administration, this government is committed to finishing whatever we start. At the end of the day, we shall ensure that,” he affirmed, adding that the oil-producing communities have tremendous potentials.

    While commending the Bayelsa State Governor for his proactive efforts, the Acting President commended the collaboration that is ongoing regarding the Brass company.

    He said “This is what we describe as the New Vision: partnership between the Federal Government, the States, the communities and the private sector. This is the new way of thinking that is emerging, the New Vision.”

    In his comments, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu described the idea of the Brass Fertilizer & Petro-Chemical firm as “a game changer that we need to encourage, “

    He said that such ideas have the potential to change the economic model in the Niger Delta.

    The Acting President also received a delegation from the Seed Entrepreneurs Association of Nigeria, SEEDAN led by its President Mr. Richard Olafare and the Director-General of the National Agricultural Seed Council, Dr. P.O.Ojo.

    In his remarks, Prof. Osinbajo assured the delegation that the Federal Government would do much more in the area of Agriculture, stressing that fertilizer and seed inputs are vital for the “agricultural revolution” that the Buhari administration is delivering.

    He told members of the association, “your visit and contributions are very important to us. The President has said we must grow what we eat. We must be able to grow everything we eat. This is very important to us, we are very committed to food security. It is important to hear your views as we shape policy.”