The Nation Newspaper

Tag: NNPC

  • Untenable alibi

    Untenable alibi

    •Oil minister’s position leaves much to be desired

    We have always admired the presidential system of government for many reasons, but more importantly for its clear-cut demarcations through the principle of separation of powers and the doctrine of checks and balances among the three arms of government. This is meant to discourage arbitrary deployment of powers. But these laudable provisions were made mincemeat of by Diezani Alison-Madueke, Minister of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC), through a new case filed in court by them seeking for perpetual injunction to restrain the National Assembly from probing her/NNPC without first obtaining the consent of President Goodluck Jonathan.

    The law firm of Chief Mike Ozekhome (SAN) is curiously handling this matter for the minister through Dominic Ezerioha, one of its reported counsel. Alison-Madueke’s judicial resistance is geared towards preventing the House of Representatives’ Committee on Public Accounts from probing her over the scandalous allegation that she spent N10billion on chartered aircraft in a country where poverty is on the high scale and the monthly minimum wage is a paltry N18, 000. The new suit is reportedly marked FHC/ABJ/CS/346/2014 at an Abuja Federal High Court.

    We are aware that previous attempts by the National Assembly to probe activities in the oil sector since 1999 have faced serious rebuff from both NNPC and the minister. But it is a thing of joy to know that the national legislature, through the latest summon, has shown  unwavering resolve to go ahead this time by asking especially the minister to appear before it to answer questions relating to the aircraft charter scandal on June 17, 2014.

    Sadly too, the quick but easy resort to the court by the applicants is nothing but a condemnable attempt at distracting and preventing the House from performing its constitutional duty; and the curious Nigerian people from knowing the truth and extent of rot in the oil sector. More disheartening is our observation that Chief Ozekhome (SAN), a constitutional lawyer/activist with renowned pedigree and known hitherto for clamouring for due process, is anchoring this aberration/circumvention of constitutional process, for whatever reason. This is out of character with such a distinguished constitutional lawyer.

    The National Assembly is not subservient to the presidency in the discharge of its lawful duty. So is the judiciary or even the executive arm, but any of them can only moderate one another in case of an overreach. As such, we view the current judicial attempt by the applicants as an abuse of court process. We are persuaded, in our position, by the 1999 Constitution where it provides in section 88 (1b) that each House of the National Assembly shall have power over ‘the conduct of affairs of any person, authority, ministry or government department charged, or intended to be charged, with the duty of or responsibility for’ –  (ii) ‘disbursing or administering moneys appropriated or to be appropriated by the National Assembly.’

    According to its subsequent provisions in section 88(2b), such powers are to enable it – ‘expose corruption, inefficiency or waste in the execution or administration of laws within its legislative competence and in the disbursement or administration of funds appropriated by it.’  Above all, section 89 (1(a) (c) gives the Senate or the House of Representatives or a committee appointed in accordance with section 62 of the constitution powers to procure evidence, whether written or oral, as it may think necessary, and to summon any person in Nigeria. We ask: Despite these unambiguous constitutional provisions, why are Alison-Madueke and the NNPC still running away from their shadows? We believe that under no circumstances should the constitutional process be undermined since no executive privilege is applicable in this instance.

     

  • Missing $20b: Senate panel never cleared minister, NNPC – Saraki

    Chairman Senate Committee on Ecology and Environment, Senator Bukola Saraki, on Thursday denied media reports that the Senate Committee on Finance had cleared the Minister of Petroleum, Diezani Alison-Madueke and the Nigerian National Petroleum Corporation (NNPC) over the alleged missing $20billion.

    Saraki, who is also a member of the Finance Committee, said nothing significant has changed to suggest the clearing of the minister and the NNPC.

    He stated that even though the report of the committee has been laid before the Senate, more was still being done to unravel the missing money.

    The former Governor of Kwara State, according to a statement issued by his media aide, Bamikole Omishore, in Abuja, urged the media to wait for the official release of the report to the public before jumping to conclusions.

    The statement reads: “The recent media reports claiming that the Senate Committee on Finance has cleared NNPC of any unaccounted revenue fund are not true.

    “Though I could not attend the last meeting of the committee, I have been very active in the investigation, nothing significant has changed to suggest clearing of anybody.

    “I can say on behalf of the committee that these media reports bear no correlation to the content of the Senate Committee report and I would urge the public to disregard it in its entirety.

    “The committee is yet to receive the report on the forensic audit and independent analysis on the subject clearly indicates we have a lot of grounds to cover in order to determine the level of culpability or otherwise of agency on the alleged non-committal, so to suggest any clearance for anybody at this stage is out of the question.

    “I will further advise that the media should wait for the Senate to release the details of the committee report to the public before they jump into spurious conclusions.”

     

  • Minister, NNPC file fresh suit against National Assembly

    Minister, NNPC file fresh suit against National Assembly

    Petroleum Resources Minister, Mrs. Diezani Alison-Madueke and the Nigerian National Petroleum Corporation (NNPC) have filed a fresh suit against the National Assembly to stop the House of Representatives’ from probing her alleged spending of about N10 billion on chartered aircraft.

    The minister and the corporation are, by the suit filed before the Federal High Court, Abuja, challenging the constitutional powers of the National Assembly to probe them over the jet lease scandal.

    The new suit was filed amidst the pendency of an earlier suit filed by both plaintiffs. The earlier suit is pending before Justice Ahmed Mohammed of the same court.

    The earlier suit generated controversy when the House of Representatives wrongly informed the public that it had been restrained from proceeding with the probe, even when the court had not granted such order.

    The House’s “mistake” prompted Justice Mohammed to summon it and its leadership to explain where it got the purported order, which the judge denied granting.

    When the case came up on May 5, neither the House nor its representative honoured the judge’s summons.

    The judge, therefore, restated his summons and insisted that the House must appear before him on the next date to explain where it got its supposed order from. He adjourned the matter till May 26.

    The minister and the NNPC are contending, in the new suit – filed for them by Mike Ozekhome (SAN) – that the lawmakers lacked the powers to summon or investigate her.

    They have also written to House of Representatives Speaker and the Senate President not to take further steps on the probe because it would amount to contempt of court.

    The plaintiffs prayed the court to determine whether, by virtue of the provisions of the Constitution,  particularly Sections 88, 89 and 214, the respondents or any of their committees are legally and constitutionally empowered and/or competent to probe or conduct investigation into allegations of fraud or other criminal activities said to have occurred in the agencies under the applicants’ supervision when there exist agencies that are legally and constitutionally empowered to carry out or conduct such investigations into alleged fraud or other criminal acts and prosecute offenders upon conclusion of their investigations.

  • Port Harcourt explosion: MEND claims attack

    Port Harcourt explosion: MEND claims attack

    The Movement for the Emancipation of the Niger Delta (MEND) has claimed responsibility for Sunday’s explosion near the Port Harcourt refinery.

    Seven people died in the  explosion. Many were injured.

    The explosion took place at the creek near the jetty of the refinery, a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

    The militant group, in an online statement by its spokesman, Jomo Gbomo,  said the facility was infiltrated by its fighters, with the aid of its internal agents in the NNPC.

    MEND said it would persist in its attacks on the oil industry, in view of the alleged inaction of President Goodluck Jonathan, who it said continued to rely on an “unsustainable” and “fraudulent” Niger Delta Amnesty programme.

    The group maintained that it sabotaged the NNPC refinery jetty pipelines in Okrika, Rivers State, in line with its ongoing “Operation Hurricane Exodus”, which, according to the group, was intended to bring down the facility.

    MEND said: “The facility was infiltrated by a few of our fighters, with the aid of our internal agents within the NNPC, contrary to speculation that the sabotage was carried out by ‘pipeline vandals and oil thieves’, which is a very convenient phrase used in shielding the truth from the public.

    “Thorough investigations will reveal bomb fragments are the same used in the Warri (Delta State) Refinery explosion of Tuesday, 22nd October, 2013.

    “We will persist with our attacks on the Nigerian oil industry, due to the inaction of President Goodluck Jonathan, who continues to rely on an unsustainable and fraudulent Niger Delta Amnesty Programme,” MEND stated.

    The militant group described the amnesty programme as a fraud on the people of Nigeria, who were being promised peace in the Niger Delta, in the absence of justice. The group said its “Hurricane Exodus” was on course.

    But, the management of the Port Harcourt Refining Company denied the allegation that some members of the company connived with Pipelines and Product Marketing Company (PMC) to siphoned premium motor spirit (PMS) which led to the explosion.

    The management’s denial followed reactions from  the public who suspected sabotage by the company’s personnel, considering the scene’s closeness to the company’s facilities security checkpoint.

    Nigerian Democratic Awareness Forum and Okrika Local Government Chairman, Tamuno Williams, were among those who accused the management of having fore knowledge of the illegal bunkering that led to explosion.

    The company, through its Executive Director, Services, Mr. Ralph Ugwu said it had nothing to cover or hide.

    Ugwu said none of the company’s facilities was gutted by fire, insisting that both refining and jetty operations were going on smoothly.

    He said: “I don’t want to describe the man (council chairman) in anger. What he has said is a departure from the truth. What I want to confirm to you is that our jetty operations are up and running. Our refineries are also up and running.

    “The incident has no impact on our operations whatsoever and on our own side as NNPC, there is no casualty and the incident has no impact on our refining operations or on our jetty operations.”

  • PIB passage: Reps blame Presidency, NNPC for delays

    The House of Representatives yesterday accused the Presidency and the Nigerian National Petroleum Corporation (NNPC) of delaying the passage the Petroleum Industry Bill (PIB) into law.

    The lower legislative chamber which spoke through its Committee on Commerce, said the bill would have long been passed were it not for the constant reviews it has been subjected to by both the Corporation and the Presidency.

    The Committee chair, Hon. Sylvester Ogbaga (PDP, Ebonyi) who spoke in Abuja at a one-day interactive session on investment in the oil and gas sector, tagged, ‘Enhancing The Oil and Gas Value Chain,’ said the legislature would have passed the bill if not for its incessant reviews.

    He said: “People always think that the delay being experienced in the passage of the PIB is caused by the National Assembly which is very wrong. The bill would have been passed if not for the way both the Executive and the NNPC kept recalling it for content update and modification in line with current trends, so it’s not solely on the part of the National Assembly as Nigerians are being made to believe.”

    He explained that Nigeria as the largest market in Africa, offers unique investment opportunities in refining, storage, transportation and marketing of petroleum, petrochemicals and allied products and this would be enhanced with further reforms by the government.

    “The Nigerian oil and gas value chain is undergoing a radical transformation following government’s commitment towards the key legislative reforms and aspiration by gradually becoming the undisputed regional hub for gas based industries such as fertiliser, petrochemical and ethanol,” he added.

    Also speaking, an official of the NNPC, Dr. Soala Ariweriokuma, said in order to encourage investors, the Corporation has always  pushed  for due legislation for  enhancement of the oil and gas value chain in the country.

    He said there is need for lawmakers to expedite action by enacting relevant legislations that would minimise losses and maximise economic gains, adding that recent discoveries in the  sector have brought about a shiff in competition and the review of the tax regime to serve as an incentive in that direction.

    Dr. Soala said: “Nigeria may be a major producer of oil and gas in the world, but the world is not waiting for Nigeria to arrive. The recent discoveries of shale oil and shale gas in the US, Europe and China has adversely affected the market for Nigerian cargoes, especially to the US. Before now, Nigeria was shipping about 13 cargoes of gas to the US per annum, but that has been reduced to one due to the discovery of shale gas.”

    Another contributor, Chris Kaka of the Chartered Institute of Financial Investment of Nigeria (CIFIN),  called for the review of the tax administration in the country, particularly with respect to the period of tax holiday investors get.

    “ The indiscriminate giving of tax incentives to investors in the sector needs to be reviewed to favour the nation’s economy if we must correct the incidence of running our budgets on deficit which has been on since 2002.”

    He said a situation where a company such as the Nigerian Liquefied Vatural Gas (NLNG) would be given a tax holiday up to the period of ten years, is not healthy for the economy.

  • PwC to audit NNPC – Okonjo-Iweala

    PwC to audit NNPC – Okonjo-Iweala

    The Federal Government Thursday said it has appointed forensic auditors to investigate the activities of the Nigerian National Petroleum Corporation.

    The disclosure was made by the Minister of Finance, Dr. Ngozi Okonjo-Iweala, who also revealed that accounting firm – PriceWaterhouseCoopers (PwC) has been appointed to carry out the exercise.

    She spoke during a debate at the 24the edition of the World Economic Forum for Africa with theme: “Forging inclusive growth, creating jobs.”

    Okonjo-Iweala said the exercise would be carried out within 16 weeks under the supervision of the Office of the Auditor General of the Federation.

    The suspended Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi, had blown the whistle on a missing $20 billion, which he claimed was not remitted to the federation account by the NNPC.

    Following the controversy generated by the revelation, Okonjo-Iweala said the forensic audit would help unravel all mystery surrounding the missing fund.

    “On the issue of holding government to account, I don’t think Nigerians are laying back. We need that transparency and we welcome it. The (suspended) CBN Governor raised issues on unaccounted amount from the federation account and we at the ministry of finance have for two years been reconciling these figures with the NNPC to know what they are supposed to remit to the federation account.

    “Our feeling is that the only way is to have a forensic audit that would let Nigerians know the issue,” the minister said.

     

  • How NNPC, PPMC violated shipping laws – Ex- NIMASA boss

    The Nigerian National Petroleum Corporation (NNPC) and the Pipelines and Products Marketing Company (PPMC) on Wednesday urged the Federal High Court in Lagos to strike out a suit accusing them of violating the Cabotage Act.
    A former Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General, Mr Raymond Omatseye, through his firm Polmaz Limited, is seeking an order directing NNPC and PPMC to cancel all contracts with foreign flagged vessels operating in Nigeria’s coastal waters without licence.
    The plaintiff is also urging the court to direct the defendants, except NIMASA, to pay fines stipulated in the Cabotage Act for their alleged violation of the law.
    Polmaz said NNPC and PPMC engaged the vessels in domestic coastal trade without requisite licenses being issued or any waivers granted to them as stipulated in the Act.
    It urged the court to determine whether Nigeria’s shipping laws have not restricted foreign flagged vessels, or vessels not owned or built by Nigerians and registered in Nigeria from engaging in domestic coastal trade within the country’s territorial waters.
    Joined in the suit as third to ninth defendants are NIMASA and the vessels’ operators, namely Olimpex Nigeria Limited, Unibros Shipping Corporation, Africulti Limited, Marika Investments Limited, Nidas Marine Limited and Prometheus Maritime Limited.
    The plaintiff, in its originating summons, sought a declaration that the operation of the foreign flagged vessels operated by the fourth to ninth defendants and their engagement by NNPC and PPMC in domestic coastal operations are in clear violation of Section 5 of the Merchant Shipping Act and several sections of the Coastal and Inland Shipping (Cabotage) Act, No. 5 of 2003.

     

  • Gas supply to power sector to hit 650mmscf/d

    Gas supply to power sector to hit 650mmscf/d

    •NNPC raps Japanese firm for PH refinery’s TAM

    To boost power supply,  the Nigerian National Petroleum Corporation (NNPC), is working to increase gas supply to thermal power stations by 250 million standard cubic feet per day (mmscf/d) to 650mmscf/d before end of this year.

    Its Group Managing Director, Andrew Yakubu, disclosed this while declaring open the Nigerian pavilion at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, United States.

    Yakubu said the government is making efforts to address the problem of gas supply to the power sector on sustainable basis and ensure actualization of the gas revolution agenda to maximise the full benefits of the gas resources for the country. He said remarkable progress has been made in gas production for domestic use explaining that in the past four to five years, only 300mmscf/d was available for domestic use, which has currently jumped to I.5 billion standard cubic feet per day (bscf/d).

    He also said the provisions in the Petroleum Industry Bill (PIB) when passed into law will tremendously advance benefits expected from gas for the citizens.

    He said: “The essence of the PIB was to improve government’s take, fiscal regime, and jump in gas obligation. “There has been tremendous progress in gas production for domestic use. It was 300mmscf/d four to five years ago and now it is I.5bscf/d. This in any global standard is impressive and we intend to continue to build on that.

    “NNPC is also the largest producer of gas for domestic use. We currently produce over 400mmscf/d and plans are under way to increase it by 250mmscf/d by end of this year. There is a lot going on in terms of gas investment and particularly in gas to power and the minister is driving us not only to sustain this but to surpass it.”

    The NNPC chief also explained the government’s efforts at reducing dependence on imported petroleum products by improving output from local refineries. He said the corporation is still in discussion with the original equipment manufacturer (OEM) of Port Harcourt Refinery, Japanese Japling Corporation (JJC) to come to Nigeria and carry out the turnaround maintenance (TAM) of the refinery.

    “Turnaround maintenance is not a ceremonial snapshot. It is our duty on annual basis to maintain and operate our plants. TAM is scheduled for certain interventions that will require total shut down of the plant. We have scheduled TAM for Port Harcourt refinery and a lot has happened in the refinery’s turnaround initiative. “

  • ‘NNPC committed to gas delivery’

    ‘NNPC committed to gas delivery’

    The Nigerian National Petroleum Corporation (NNPC) has said it is committed to the Federal Government’s gas revolution agenda to ensure efficient gas-to-power and gas-to-industry deliveries and sufficient gas supply for domestic consumption.

    NNPC’s Group Managing Director, Andrew Yakubu, spoke during the combined opening ceremony of the batches 073 to 079 capacity building programme of the NNPC tagged Chief Officers Management Development programme (COMDP) in Abuja.

    The Group General Manager, Group Public Affairs Division, NNPC, Ohi Alegbe, said Yakubu noted that the NNPC is saddled with ensuring that the abundant gas value chain is explored maximally, stressing that the corporation must do everything possible to make the gas revolution agenda succeed.

    Yakubu admonished the participants to come up with creative ways of dealing with the target of fully monetising the gas resource endowment of the nation, which remains a crucial deliverable of the Federal Government’s gas revolution Agenda.

    He emphasised that the management was fully committed to supporting the capacity development programme and will continue to provide all resources required to sustain growth of the programme.

    In his lecture titled: “Gas commercialication and economic growth,” Prof Pat Utomi of the Lagos Business School, said the NNPC is required to deliver on the mandate of the gas-to-power strategy execution and effectiveness.

    He noted that there was every need for the NNPC to build human capital focused on the gas knowledge economy that will ensure domestic gas utilisation and provision of strong gas infrastructure to protect the environment and bottle the gas for effective consumption.

    The Group Executive Director, Corporate Services, NNPC, Dr. Dan Efebo, assured the participants of the preparedness of management to expose them to knowledge that will deliver on the various core mandates of the corporation.

    The  COMDP batches 073-079 comprised 375 candidates and they are expected to run a four-module programme, which includes leadership, problem solving research work, oil and gas fundamentals and emerging trends in oil and gas industry.

    The programme, which is mandatory for senior staff, has equipped several members of staff with skills and competences for transition to management cadre in the last 24 years.

  • Judge: I didn’t stop Alison-Madueke’s investigation

    Judge: I didn’t stop Alison-Madueke’s investigation

    •Court summons House to explain  source of order over N10b jet probe

    A Federal High Court in Abuja yesterday summoned the House of Representatives to explain where it got its information that it stopped the investigation of the Minister of Petroleum Resources, Diezani Alison-Madueke, for allegedly spending about N10billion on hiring aircraft.

    The House of Representatives reportedly claimed on Monday that the court presided over by Justice Ahmed Mohammed had restrained it from proceeding with the planned investigation of Mrs Alison-Madueke and the Nigerian National Petroleum Corporation (NNPC) over the N10billion aircraft lease allegation.

    Justice Mohammed expressed displeasure about the claim credited to the House of Representatives. He said his court never granted any order stopping Alison-Madueke’s probe by the House of Representatives.

    The judge said he was worried by the confusing reports in the media, which were clear misrepresentation of the proceedings in court. He said he got calls inquiring if he actually stopped the investigation.

    The plaintiffs’ lawyer, Etigwe Uwa (SAN), said he was also surprised about the reports. He said he equally got calls and had to do a statement to some media houses to correct the wrong information.

    Lawyer to the National Assembly (1st defendant) Yakubu Maikyau (SAN) said he knew something was wrong with the way the media report came out.

    He said the suspicion that something was wrong was supported by the fact that the court’s ruling, on which the media reports were based, was delivered on April 14 but was only published to coincide with when the minister was expected to appear.

    Maikyau, who apologised to the court on behalf of his client, said he believed if such an order was made, it would have been reported before now.

    Mr Justice Mohammed held that since the confusion emanated from the House of Representatives, he would adjourn the matter to enable the House which was not represented, to come and clear the air on the reports.

    “I have seen the press release in the media said to be released by the House of Representatives that this court has ordered the stop of the investigation of the Minister for Petroleum Resources.

    “As far as I am concerned, and I am the judge handling this matter, no such order was made.”

    The judge gave details of what transpired in the case during the last two  occasions when the case came up.

    He said on April 14 when the matter first came up, the plaintiffs, lawyer moved an exparte application, seeking, among others an order of interim injunction restraining the House from proceeding with its investigation.

    The judge said he did not grant the exparte application, but ordered the House to appear on April 17 and show cause why the orders being sought should not be granted.

    He said on April 17, Uwa told the court that the defendants (National Assembly and House of Representatives) were only served the previous day a development that prompted the court to further adjourn till yesterday, and restated its order for the defendants to appear and show cause.

    The judge adjourned till May 5 for the House to appear.