Tag: Oil

  • Oil hits 2016 high of 43 dollars per barrel

    Oil reached a 2016 high, hitting 43 dollars a barrel on Tuesday, and supported by hopes that upcoming meeting of oil producers will agree on steps to tackle a supply glut.

    The rise was also supported by a weak U.S. dollar and further signs of strong demand in China.

    Many members of Organisation of Petroleum Exporting Countries (OPEC) and outside producers like Russia are meeting in Doha, Qatar, on Sunday to discuss freezing output.

    The dollar fell to its lowest in nearly eight months against a basket of currencies, supporting commodities.

    Brent crude was up 50 cents at 43.33 dollars a barrel and had earlier in the session reached a 2016 high of 43.53 dollars per barrel.

    U.S. crude gained 39 cents to hit 40.75 dollars a barrel.

    “The weak dollar is one important reason,” said Eugen Weinberg of Commerzbank, adding “also, the fact that we are above 40 dollars and at multi-month highs is also contributing to the price increase as it is prompting some speculative buying”.

    Also supporting prices are rising vehicle sales in China, a further sign of strong gasoline demand and a plan by thousands of oil and gas workers in Kuwait to go on strike from Sunday.

    “If it is not clear that the strike will last long and will have any meaningful impact on exports or domestic production (including refineries), it does illustrate further the amount of pain that (Gulf) oil producers are also facing at current price levels,” said Olivier Jakob, analyst at Petromatrix.

    Oil prices have collapsed from above 100 dollars per barrel in mid-2014 due to over-supply.

    The OPEC decision in November, 2014 to abandon its traditional role of cutting output helped deepen the decline.

    Crude gained a boost last week after a surprise decline in U.S. inventories from a record high.

    But this week’s U.S. supply reports are expected to show an increase in stocks of 2.8 million barrels.

    Industry group, the American Petroleum Institute, is scheduled to release its report on Tuesday, while the government’s figures are due out on Wednesday.

     

  • VP, Ambode, Okorocha, proffer solution to Nigeria’s economic woes

    VP, Ambode, Okorocha, proffer solution to Nigeria’s economic woes

    Vice President Yemi Osibanjo, Lagos State Governor, Mr. Akinwunmi Ambode, his Imo State counterpart, Rochas Okorocha and other dignitaries have identified measures to solve the economic challenges in the country.

    They spoke Thursday at the maiden edition of  National Forum on Economy organised by Vintage Press Limited, publishers of The Nation Newspapers, held at Lagos Airport Hotel.
    Osibanjo in his keynote address blamed the nation’s economic challenges on oil dependence and corruption saying that the time has come for the country to look beyond oil and celebrate integrity over corruption.
    According to him, “It is pathetic that a nation with over 170 million people benchmarked its budget on the price of oil. We must look beyond oil because it disturbs us from looking to other sector. In order to move the country forward, we must reduce the FG and state dependence on sharing revenue made from oil sales.”
    He said government is fully aware of the overwhelming challenges confronting Nigerians, assuring that ongoing reforms at various sector is a pointer to the fact that the situation will soon be a thing of the past.
    “The foundation for a strong economy demands that we have appropriate fiscal policies that will help the country that is arising from a very low rate of VAT and a low taxpayer’s base. We are focusing on increasing the country’s taxpayers base. We are committed to expanding the tax net.
    “At the federal level, the implementation of the country’s 2016 budget will stimulate the economy rather than impose undue austerity on the citizens. For instance, 30 percent of the country’s budget has been earmarked for capital expenditure.
    “Non-oil sources comprising company income tax, VAT and others are expected to contribute N1.5 trillion which is more than the estimated revenue from oil. This is unprecedented in the history of the country.”
    Vice President said there is urgent need for the country to take full advantage of the oil sector, adding that rather than extract and exporting, the country must take full advantage of the oil sector and entire value chain.
    He explained that government would soon commence work on the Lagos-Kano and Lagos-Calabar rail routes, as well as 31 major road projects across the country, just as he stressed the commitment of the current administration to give a quantum leap to infrastructural development.

    He said the governments this year will focus on key areas such as oil and gas Agriculture, social investment among others to tackle the situation.
    Governor Ambode in his remark said the nation’s economy was at a critical threshold and thus, will require its leaders to think outside the box and come up with creative innovations that will trigger economic growth nationwide.
    He lamented the fact that previous governments at the federal level failed to take advantage of the oil boom to grow other sectors of the economy, saying that the fall in price in the international oil market coupled with many years of corruption has made the economy vulnerable.
    “It is very unfortunate that we wasted the golden opportunity to deploy the trillions of dollars earned from our oil exports to develop the critical sectors of the economy including power, agriculture, industries, solid minerals, transportation infrastructure among others.  No doubt, if we had done the right thing as some other oil producing countries did, keeping in mind that crude oil is a finite resource, we would not be experiencing the devastating effect of oil price crash on the scale we are experiencing it now.

    “We are now being forced to do, with pains, what we should have done with ease years ago. The task of charting a new direction for the economy is not going to be a tea party. Various policy options must be identified and assessed on the basis of our current situation and needs.  Moving our economy forward requires thinking outside the box and doing things differently. We need creativity, innovation and the courage to take difficult and tough decisions.

    “The leadership of the country at national and state levels must have the courage to take tough decisions and make sacrifices in the near term which will, in the long run, make our economy stronger and sustainable and, consequently result in prosperity across all regions of Nigeria,” he said.

    Recommending strategies to improve the economy, Governor Ambode said that the nation must begin to explore and expand the opportunities that abound in inter-State relations and strengthen regional competitiveness by maximizing economies of scale, regional optimization of assets and endowments and mitigation of afflictions and natural disasters.

    He listed other viable areas for inter-State collaboration to include transport infrastructure to facilitate market linkages, education, market development, human capacity building, security and intelligence sharing, saying that it was high time to move away from an oil driven economy.

    “Prior to the oil boom era, Agriculture was the mainstay of Nigeria’s economy and contributed about 65 per cent to the country’s GDP and represented close to 70 per cent of total exports. Through farming, Nigeria was able to feed its population while major cash crops were exported to earn foreign exchange.

    “From the cocoa and rubber plantations in the West, the groundnut pyramids and cotton in the north, to palm oil in the east; each region was identified by its economic areas of comparative advantage which were collectively harnessed towards ensuring food security and inclusive growth across the country.

    “Given our current economic challenge, I believe it is time we take a cue from our old ‘playbook’ for a viable ‘game plan’ to revive our national economy. States and regions must once again begin to leverage on their respective areas of comparative advantage by establishing partnerships towards establishing inter-State or inter-regional commodity value chain. We must re-start inter-state/regional cooperation,” he said.

    Governor Ambode said that Lagos has already taken the bull by the horn with its recent partnership with Kebbi State aimed at developing a commodity value chain that will see the local production of 70 per cent of Nigeria’s rice needs with a multiplier effect that will ensure job creation, the development of ancillary industries as well as strengthen the Naira.

    The Governor however added that for regional integration to thrive a functional modern rail and water transportation system must be in place, noting that movement of goods, materials and people by road was not only inefficient but fraught with risks, safety hazards and detrimental to the roads.

    Earlier in his opening remarks, Chairman of Vintage Press Limited, publishers of The Nation Newspaper, Wale Edun said the forum was put together not just to lament the challenges facing the country but for government and members of the critical sectors of the economy to dialogues and chart a way out.

  • Monopoly adds to cost of oil production, says Nigerdock chief

    Monopoly adds to cost of oil production, says Nigerdock chief

    The monopoly in the oil and gas logistics and supply services sector is largely responsible for high cost of oil production, a stakeholder has said. It also adds an extra $3-$5 to per barrel of crude produced, Nigerdock and Jagal Group Chair, Anwar Jamarkani said.

    He spoke when the Comptroller-General of the Nigeria Customs Service, Col. Hameed Ali (rtd) , Customs Deputy Comptroller-General and other senior officers of the service paid a working visit to the Nigerdock and Snake Island Integrated Free Zone on Snake Island, Lagos.

    According to Jamarkani, the dominant monopoly in the Nigerian oil and gas logistics and supply services has existed for over 20 years, sabotaging the national economy, conspiring and working against any potential competitors and against Snake Island Integrated Free Zone (SIIFZ).

    He noted that the monopoly has consistently and aggressively used various government institutions to compromise, maintain and entrench its monopoly with impunity. Regrettably, attempts according to him, have been made in times past to also use the customs. “We, therefore, appreciate the fact that President Muhammadu Buhari’s administration is aggressively doing away with such impunity,” he said, urging the Customs chief to encourage investors by creating a level play ground for them.

    Jamarkani said: “The net effects of the monopoly’s actions are numerous. This monopoly adds extra cost of $3-$5 per barrel produced in Nigeria, which translates to over $1.5 billion per annum. This monopoly is a  toll gate. They have forced the oil and gas industry and the nation into capitulation, and driven away investments from Nigeria.

    “The oil and gas supply and logistics service in Nigeria is the most expensive in the world because of this entrenched monopoly. This monopoly seriously damages the international reputation of Nigeria. The monopoly has over the last 20 years used a non-existent law to justify the assertion and false claim that “all oil and gas cargo must first be discharged at their ports of preference.”

    He continued: “The monopoly has consistently used this non-existent law to coerce the industry and service providers into dosing their bidding and thereby undermining the Nigerian economy. If this law indeed exists, the Federal Government would not have encouraged other critical players like SIIFZ to make huge investment in the country. SIIFZ and Nigerdock are open for competitive business and we are determined to bring down your operational costs by at least 30 per cent.

    “In line with the Federal Government’s vision for free and fair competition, there is no room for the continued monopoly in Nigeria as it is sabotaging the industry and the national interest.”

    Jamarkani said SIIFZ and Nigerdock have created more than 6000 direct jobs, delivered landmark projects for Shell, Chevron, ExxonMobil, Total, Hyundai and Samsung, as well as first fabrication for Total/Samsung Egina floating production, storage and offloading (FPSO) vessel. “The facility has also trained over 6000 people for the oil industry and delivered over 27, 000 training programmes. It is the largest shipyard facility in West Africa,” he added.

    The Customs chief, while addressing the workers, said: “No business can grow without committed workers. You have added great value to this company. On behalf of the Federal Government, I congratulate you and appreciate what you are doing. I assure you that whatever we can do as a government to support this company, we will do it. There is need to encourage companies like this to create more employment and assure you of government’s readiness to provide the enabling environment.”

    He added that with the presence of a company like SIIFZ, Nigeria will not have to carry its vessels and machineries to Korea for repair, painting and maintenance.

  • ‘Look beyond oil’

    NIGERIA has urged the South Sudanese government to invest more in agriculture and not to be solely dependent on oil revenue.

    President Muhammadu Buhari gave the advice when the outgoing South Sudanese Ambassador to Nigeria, Makuet Riak, visited him at the State House in Abuja.

    In a statement by the Special Adviser on Media and Publicity, Femi Adesina, the President said South Sudan could avoid the mistake made by Nigeria in its over-reliance on oil revenue.

    He told the outgoing envoy that Nigeria’s economy, which has been heavily dependent on oil over the years, has been adversely affected by the drop in global oil prices.

    “Investing in sustainable agriculture is one of the best ways to provide jobs for the people and keep the nation productive.

    “Food security is important to any country and that is what we are trying to achieve here, years after we `threw away’ agriculture for oil,’’ the President said.

  • Look beyond oil, Buhari urges South Sudan

    Look beyond oil, Buhari urges South Sudan

    President Muhammadu Buhari on Tuesday urged the South Sudanese government to invest more in agriculture and not to be solely dependent on oil revenues to grow the nation’s economy.

    He gave the advice while receiving the outgoing South Sudanese Ambassador to Nigeria, Ambassador Makuet Riak, at the State House in Abuja.

    In a statement by the Special Adviser on Media and Publicity, Femi Adesina, the President said that South Sudan can avoid the mistake made by Nigeria in her over-reliance on oil revenue.

    He told the outgoing envoy that Nigeria’s economy, which has been heavily dependent on oil over the years, has been adversely affected by the drop in global oil prices.

    He said: “Investing in sustainable agriculture is one of the best ways to provide jobs for the people and keep the nation productive.

    “Food security is important to any country and that is what we are trying to achieve here, years after we `threw away’ agriculture for oil,’’ the President said.

    President Buhari also praised the excellent relations between Nigeria and South Sudan and reaffirmed his commitment to strengthening existing bilateral ties.

    In his remarks, Ambassador Riak described his four-year duty tour as his country’s first ambassador to Nigeria as very fruitful.

    He said South Sudan was blessed with fertile land and would welcome more investments from Nigerian companies.

  • ‘2016’ll be tough for oil markets’

    Vitol, the world’s biggest independent oil trader, expects the year to be challenging for oil markets as stocks of crude and products continue to weigh on the market, prompting it to manage the business conservatively in these uncertain time.

    Despite these testing conditions, Vitol saw its total traded volumes of crude and oil products last year amount to 303 million metric tonnes (mt) – or an average of some 5.9 million barrels  per day (bpd) – up 13 per cent from 2014 when it traded 268 million mt.

    According to Platts, an oil and gas agency, the increase in trading was reflected in Vitol chartering 6,629 voyages last year compared to 6,053 the previous year.

    Vitol President/Chief Executive Officer, Ian Taylor, however, said despite the favourable market structure for physical trading, “the absolute price levels and market volatility are causes for caution”.

    “Revenues, which are dictated by absolute prices fell markedly despite an increase in oil and product trading activity,” he added.

    Vitol saw its 2015 revenue slump by 38 per cent to $168 billion compared to $270 billion in 2014. “We expect this coming year to be challenging for the oil sector. Demand growth will be in line with long-term averages, but below the high levels seen in 2015.

    “Stocks of crude and products continue to build and these will weigh upon the market. In this context, we shall focus on adding value to our customers and seek interesting opportunities, whilst remaining mindful of increased risks,” he added.

  • How to solve oil sector crisis, by workers

    How to solve oil sector crisis, by workers

    How can the oil industry’s problems be solved? It is by the collective efforts of its stakeholders, say oil workers.

    According to the workers, under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the sector’s problems too many for an individual, group or government to solve.

    Its President,  Mr. Francis Johnson, told The Nation: “What we (oil workers) want is an all-inclusive stakeholders’ meeting so that Nigerians will hear the position of the Nigeria Labour Congress (NLC); PENGASSAN; National Union of Petroleum and Natural Gas Workers (NUPENG); civil society; government and all other interest groups.”

    According to Johnson, no responsible union enjoys protests as they are the last resort where dialogue fails.

    “All what we want is for everyone to agree to work as one indivisible entity in the interest of Nigeria, so that the benefits from the oil and gas industry can come to all Nigerians,” he said.

    He identified some of the industry’s problems to include crude oil theft, pipeline vandalism, backlog of joint venture cash calls, poor state of refineries, corruption in the importation of petroleum products, subsidy payment to marketers and abuse of Nigerian content policy.

    Others are the status of the Petroleum Products Pricing Regulatory Agency (PPPRA), Petroleum Equalisation Fund (PEF), and interfering role of the Nigerian National Petroleum Corporation (NNPC) in the performance of their mandates.

    On the restructuring of the NNPC, the PENGASSAN chief said the concern of his members was not to oppose what would bring the greatest benefits to all Nigerians, but to ensure that due process was followed and all interest groups were carried along.

    The main grouse of the oil workers on the re-structuring of NNPC, according to him, was the government’s insistence on carrying out the exercise without their involvement, despite that they would be involved in the implementation of the decisions taken.

    He added that the government could not go ahead with the restructuring of NNPC without first laying a solid foundation by removing all issues capable of posing problems or frustrating the exercise.

    He cited the NNPC Act of 1977 that set up the corporation, arguing that as a legal entity established by the Act of the National Assembly, there was no way the government would think of unbundling it without first either repealing or amending the Act.

    Johnson said the unions were concerned about the way the government was going about the restructuring, which suggested that it did not know what it wanted to do.

    “Initially, the minister spoke about unbundling NNPC and when there was so much pressure from the National Assembly over the issue, the Minister of State turned around to say the government was not unbundling, but restructuring or reorganising NNPC.

    “There is no way the unions or anybody would be against any decision that Nigerians are convinced would yield benefits to the people, provided such decisions are open, honest transparent and with sincerity of purpose,” he said.

    The PENGASSAN chief said there must be consistency in policy formulation and implementation. He said there must be an informed consensus on all issues.

    “There must also be a buy-in by everyone. All interested parties must be on the same page. Everyone must understand the direction the industry is heading,” he added.

    He further said it was not too good for the country that the oil and gas industry, the economy’s mainstay, would show such inconsistency in the way policies are formulated and implemented.

    “We seem to be moving one step forward today and two steps backward tomorrow,” he said.

  • ‘We must look inwards, oil has no future’

    ‘We must look inwards, oil has no future’

    A former President of the Nigeria Chambers  of  Commerce Industry Mines and Agriculture (NACCIMA), Alhaji Muhammadu Badaru Abubakar, is the Governor of Jigawa State. In a media parley with selected journalists he talked about his administration’s focus to make the agrarian state an investment haven. Adetutu Audu was there.

    What is your government doing differently from the previous administrations in the state?

    Since we came into office, we have managed to shrink spending. The budget for Government House has shrunk by 70 percent. Hospitability spending and virtually all other expenditures of the state have shrunk. Contrary to what used to happen when some people used to charter flight amounting up to N20 million every month, we do not charter today. We do not spend close to one quarter of that amount. I came from the private sector. I know for us to change the situation of our people, you have to change the economic dynamics of the state. If you check our internally generated revenue (IGR) profile, we are generating little or nothing. It is nothing to write home about. Hence, we are making effort to change the unfortunate situation. We are trying to change the economic dynamics of Jigawa State by creating a sustainable environment for businesses. We believe the only way to do this is through agriculture where we have comparative advantage. We have invited Dangote who is doing massive rice production in a part of the state. There are others, who are into tomato production. We also believe in empowering people, but the structure we inherited is not sustainable. Our major focus is to create local economy that will in the near future support the state. Oil has no future; prices will continue to fall. New technologies are coming up and will always ensure that oil is not sustainable. We are also looking at enhancing our IGR through taxation. We must ensure that necessary taxes are collected and properly remitted to government coffers. Before now, many people defrauded the state.

    Since you assumed office, how have you been coping with the opposition parties?

     Well, it will interest you to know that I am the only governor, who still left the Peoples Democratic Party (PDP) chairmen of local governments in their positions. About 25 of them chairmen and two caretaker committee chairmen we inherited from the past administration. When I came in, I told them to continue with their work contrary to the expectation of even members of the opposition. Again, I am the only governor that has not accused my predecessor of embezzlement. There may be allegations here and there, but you cannot say somebody stole when there is no proof of the allegation. Unless the law court declares someone guilty, you cannot do so on the basis of hear-say. Also, I inherited N16 million only from my predecessor. We met huge liabilities. I inherited N16 million from my predecessor with too many works in progress in a shrinking economy and with shrinking oil prices. I have continued with the projects on ground. I am not the kind of person who believes in initiating new projects and abandoning the ones that were started with my predecessor. We are working for the good of our state and our people. I rather complete the projects and let somebody take the credit rather than lose the people’s money or allow the resources to waste.

    You said you inherited almost an empty treasury. With the sharp drop in monthly allocation, how have you been meeting up with payment of workers’ salaries?

    Jigawa is a civil service state; once salaries are not paid, the groundnut seller in town will quickly feel it. We have continued to pay salaries despite the shrinking resources. What we did as soon as we came into office was to plug some holes through which people were siphoning money from government. Through the biometric exercise we conducted, a lot of ghost workers were discovered. It means that some people were making themselves rich every month by collecting salaries of workers that did not exist. We have been able to block that.  The state government supported some local governments last month to the tune of N226 million for them to pay salaries; that is to show you how bad the situation is. A lot of my colleagues can’t even pay salaries, so we still consider ourselves lucky to be able to do so.

    People have argued that the only place where life exists in Jigawa State is Dutse. How do you intend to extend this life to other parts of the state?

    That is not true. In 27 headquarters of local councils, we have streets. We have roads. We have businesses. In fact, there are more businesses in Hadejia than Dutse. It is not true because we are not blowing our trumpets. There is a lot of misinformation. Some people said he never stayed in the state. Contrary to what some people said, I am the only governor that comes to the office at about 9:00 a.m. except I am not in the state. Whenever I am in the state, I come to the office 9:00 a.m. daily.

    There have been issues around the ‘goat programme’ this administration put in place for widows in the state. Critics have attacked the programme and described it as a misplaced priority. What actually informed this initiative?

    It is because people do not understand how to solve problems. This has been done in other climes. Personally, I have tried it in other vocations. But it is a kind of prestige to give our people loan. For people who are into sewing, you gave the sewing machine. That is perfect model. But you gave out 20 or more sewing machines. Nobody will be able to make N100 from it. But the goat programme is good. In many countries, it has proved very successful, especially Bangladesh. We recorded 70 percent success in the goat programme we did. We put monitoring and evaluation mechanism in place to measure the impact of the programme. If you evaluate all empowerment programme in this country, you discover that the success rate is less than 20 percent. Some beneficiaries sell the empowerment materials given to them the same day they collected it because it cannot sustain them.

    Critics have raised another issue that you have abandoned all the programmes and projects of last administration. In this light, what is the status of Dutse Airport?

    That is not true. I am also the only governor that continued totally the projects that the previous administration started. But what I do not subscribe to is a situation whereby the state government will pay for 60 passengers three days a week. The last administration was paying N27, 000 per passenger. And it paid for 60 passengers for three days a week to support traffic development. And this traffic development has been in existence for over one year. How can you develop a route for over one year and cannot sustain the route? Despite this, you continue taking the public funds to sustain the airline so that people will say aircraft is landing in Dutse. All the projects in the airport are going on. The lighting is going on. Other projects are being executed in the airport. Sincerely, the work is going on in the airport.

    If the planes are no longer landing, what are you going to do with the airport?

    That is a good question. But planes are landing. But my administration is not supporting the idea of using taxpayers’ money to subsidize the route. The route has been there for more than one year. And the route is not developing. Sometimes, the plane will bring only one passenger and the state government had to pay for 60 passengers three times a week. That is what has been happening. All the shout is about the subsidy. I did not stop any plane from taking off from the airport. The airport is active. Even when Alhaji Aliko Dangote came, he landed there. A lot of people are coming and going through the airport. We do all our airlifting from the airport. We intend to airlift all our pilgrims this year through the airport. But when there is no traffic, I cannot create one. I do not see the magic that will lead traffic by subsidizing an airline just for it to come to Dutse and go. The question is: this can come back. But first, we have to develop the economic activities that warrant the movement of people? Unless we create businesses or develop some tourist attractions that create air traffic, then we can go back and start developing air traffic. I will not allow the airport to deteriorate. It has been built already. I will not allow it to waste away. But certainly, I cannot spend public funds to support an airline that bring only one or two passengers into Dutse. Even in Hadejia, they have the choice either to come here or go to Kano. But most of us are already married to Kano. We have one or two brothers or sisters there. What we intend to do with the airport is to create economic activities that will develop air traffic. If that happens, there is possibility to continue, even if it will be another six month to purse traffic development programme. Secondly, we are discussing cargo export with DHL. We have already sent people to Kenya to find out how best we can achieve this. Thirdly, there is already a proposal on aviation school. We are also looking into it.

    Beyond the issues you raised, what is the plan of your administration to industrialise Jigawa State considering the potential of the state to produce tomato, rice or sorghum in large quantity?   

    After Kano, the second factory of Aliko Dangote will be in Jigawa for tomato processing. We have decided to allocate 500 hectares for tomato production. But right now, we have 200 hectares for this purpose. We also have farmers, who have started cultivation on 200 hectares. Already, the state government is subsidizing the transportation of tomato farmers to Dangote’s tomato processing factory in Kano. This will enable us to learn how to produce and understudy the best practice. At this initial stage, it will not be difficult for farmers to transport what they produce to the Dangote tomato processing factory because the state government has subsidized the transport. Already, the farmers have collected the seeds. Aside that, they have attended training and are now working hand-in-hand with Dangote Tomato Processing Factory. We have put in a request for a portion of land for tomato production. Finally, we are doing that with sorghum and others. Even sorghum, we are discussing with Cadbury to see how we can package the whole value chain. We will bring in extension workers and provide them with certified seeds, farm implement, fertilizers and training on credit. That is why I said we are trying to do what will move our administration forward…

    For the entire programme you have outlines, security is central. But you have not discussed security agenda. Considering the spate of terrorist attacks in the North, how do you intend to ensure security of life and properties?

    The issue of security is basically federal. What the state can do is to support the security agencies. We have been supporting them. We have very good relationship with traditional rulers. And our information system with the traditional rulers is superb. The traditional rulers report to the security agencies any new person that comes into their territories. You should have asked whether it is by miracle or chance that Jigawa is surrounded by Yobe on one said, Bauchi on other side and Niger Republic on the top and we remain peaceful. I do not know what to say really. We are doing so well in security. We are also investing so much in security.

    In your remark, you said you never accused your predecessor of corruption and stealing. Are you saying there was no incident of stealing and corruption under the previous administration?

    I said I have not accused my predecessor of stealing. I have to establish facts before I can make such allegations. I have not accused him because there is no proof, though there are allegations. But the court has to prove that he was involved in the acts of corruption and stealing. Actually, there are allegations, but the court has to rule. All these people say they are thieves. It is not the gutter language that we should use. Even though they are thieves, the court has to prove it. That is why I have not accused him.

    The Northern State Governors’ Forum decided to borrow from the Islamic Bank. When eventually accessed, what specific areas do the northern states plan to inject the loan facilities?

    As of today, every state in the North decided what area they would want to use the loan for. In Jigawa, I inherited a discussion from the Islamic Development Bank with respect to a facility of $232 million. It is meant for infrastructure development. For us to really grow our agricultural sector, we need to develop our infrastructure and the road networks that will help the farmers. That is what I inherited. First of all, we are not in a hurry to collect money. We have to evaluate our situation first. It is too low for every person now knowing that we are barely surviving. After due evaluation, we can then arrange our loan based on what is coming in so that we can service easily. We are all rushing for the loan because it is almost interest-free. I know different states want to use the loans for income-generation activities. For instance, we discuss about the development of solar power generation. It is highly capital-intensive project. But in the long run, it will pay back. A lot of us have seen opportunities in solar energy. A lot of us are talking about the initiative.

    The early marriage of girl-child is still a critical issue in the North at large. It is indeed prevalent in all parts of the northern states. What is your administration doing to promote the education of girl-child?

    The education of girl-child is completely free in Jigawa State. It is completely free from nursery to university. In addition, we have some classes, where we bring every girl-child and train them. We set up these classes to enable us access the parent of these students. Sometimes, the parents have some economic challenges and as a result children are given out at early age. We are training them as a strategy to access these families gradually so that their daughters will go to schools. Most of them do not even go to school because of tuition. But we have taken it off.

  • Navy arrests another oil tanker’s hijack suspect

    Navy arrests another oil tanker’s hijack suspect

    The Nigerian Navy (NN) has arrested a key suspect in last month’s hijack of an oil tanker, MT MAXIMUS off the coast of Sao Tome.
    This disclosure was made by the Commander, Nigerian Navy Ship (NNS) Beecroft on Saturday while handing over the tanker to the Managing Director, Super Maritime Nigeria Limited, Rene Von Loenens.
    Although the name and nationality of the suspect was not given, it was learnt that the suspect and six ‘pirates’ earlier arrested will be handed over to the police for prosecution at the end of investigation.
    Adaji who said the vessel was recovered about 300 nautical miles south of Lagos and very close to Sao Tome disclosed that nothing has been heard on the abduction of two crew members (Rohen and Sadiq) by some of the pirates.
    ”The suspects arrested will be prosecuted accordingly and the ship owners have undertaken to present crew members to come and testify if they are required in the course of investigation.
    ”The release of the vessel does not signify an end to the prosecution of the pirates that are currently under investigation.
    ”Preliminary investigations have been ongoing since February 22 in conjuction with international and civil police authorities.
    ”We have come to a point that we can release the vessel and its crew to proceed on their businesses.
    ”So we are garthered to witness the formal handover of MT Maximus to the owner of the ship.
    ”As well as international passports and travel document of the crew so that they will not be further hampered by these unfortunate incident from which they are still recovering.
    “The two kidnapped crew members were taken in a boat before the NN ship that rescued the vessel got to the scene. We do not have information of their whereabouts and the navy has not been contacted for assistance,” he said.
    While appreciating the Navy for rescuing the vessel and its crew, Loenen said the kidnappers have not made contacts with the ship company to demand ransom or for any other reason.
    The pirates had hijacked MT MAXIMUS, a Saudi Arabian oil tanker, chartered by a South Korean company carrying 4,700 metric tons of AGO off the coast of Cote D’Ivoire.
    They renamed the vessel MT ELVIS-5, after beating the 18 crew members to submission and holding them captive, until the Nigerian Navy came to their rescue.

  • Unbundling: Oil workers shut down NNPC, operations

    Unbundling: Oil workers shut down NNPC, operations

    • Fuel scarcity looms 

    Nigerian oil workers have shut down the operations of the Nigerian National Petroleum Corporation (NNPC) nationwide and its corporate headquarters in Abuja called the NNPC Towers to protest Tuesday’s unbundling of the Corporation by the Federal Government.

    The protesting oil workers, including the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), barricaded the entrances into the NNPC Towers thereby preventing access into the complex

    It directed its members to down tool with immediate effect. With this directive, members of the Petroleum Tanker Drivers (PTD), an arm of NUPENG, have stopped lifting fuel from both government and privately owned fuel depots.

    Owing to the directive there has been resurgence of long fuel queues in retail outlets that sold petrol, and hawkers were seen in most Lagos roads selling fuel at  prices, ranging from N2500 to N3000 for the 10litre keg

    The oil workers said they are opposed to the government’s decision to unbundle the Corporation. The Nation learnt, that the Minister of State for Petroleum Resources and the Group Managing Director of NNPC, Dr Ibe Kachikwu, did not take into confidence  the management of the Corporation and the representatives of the oil workers’  unions. The Corporation’s management and the oil workers said they got the Tuesday’s NNPC unbundling announcement by Kachikwu as a shock.

    The  unions expressed concern that the unbundling of the Corporation will lead to job losses.

    The Nation learnt that the Group Executive Committee (GEC) of NUPENG and PENGASSAN convened an emergency meeting at 10pm on Tuesday to discuss the development.

    In a statement signed by the Acting General-Secretary, PENGASSAN, Comrade Lumumba Okugbawa, the union  described the plan as an arbitrariness of the executive power by the Minister, adding that the Minister unilaterally declared the unbundling of the NNPC without consultation with other critical stakeholders, including PENGASSAN and NUPENG.

    They alleged that all attempts to ensure that the Minister attend to their concerns on labour issues proved abortive as he refused to meet with the workers. Okugbawa said  the move by the government will be tantamount to policy summersault on the part of the government.

    He said the unbundling plan will stave off investors from the nation’s oil and gas industry at this time when the nation needs foreign investment most to grow the industry, which currently is the mainstay of the economy.

    He explained that the government did not take into consideration the existing law that established the NNPC before planning to unbundle the corporation.

    He said, “There is an existing NNPC Act of 1977 that set up the NNPC. This Act has many provisions that deal with structure and operations of the corporation. There are many issues such as pensions and transfer of the employees, which are provided for in the NNPC Act of 1977. What will happen to all these provisions of the law?

    “For the government to do anything with the current NNPC, the Act must either be repealed or amended to accommodate the planned restructuring. If not done, it will equal to lack of respect for the rule of law on the part of the government.

    “The Petroleum Industry Bill (PIB) that is expected to be the legal instrument for the ongoing reforms of the Oil and Gas industry will be meaningless if the Government should introduce plans outside the reforms, The PIB is germane to the development of the nation’s Oil and Gas Industry.

    “Above all, the various stakeholders, especially the unions should be involved before any major change is carried out in the organisation and before any unilateral statement capable of heating up the industrial climate is made.”

    Hundreds of the Corporation’s staff besieged the road in the morning causing gridlock on Herbert Macaulay way which houses the NNPC Towers. Union members were in red at the front of the barricaded headquarters, while security agents were on hand to forestall break down of law and order.

    A source at the NNPC told The Nation that efforts are being made to bring the Labour, NNPC management to discussion table with the Minister but the Labour unions are insisting that until Minister reverses unbundling, protest will continue.