The Federal Competition and Consumer Protection Commission, FCCPC, gave a month’s notice to traders and other market stakeholders involved in exploitative pricing to crash the prices of goods.

The Executive Vice-Chairman of the FCCPC, Mr. Tunji Bello, gave the order at a one-day stakeholders’ engagement on exploitative pricing yesterday in Abuja.

According to Bello, the commission will begin enforcement after the expiration of the notice.

He said the meeting was to address the growing trend of unreasonable pricing of consumer goods and services and unwholesome practices of market associations.

Bello said: “The issue of critical national importance of the day is the growing trend of unreasonable pricing of consumer goods and services across the country, and the unwholesome practice of market associations engaged in price fixing.

‘’As a responsive organization, we have carried out discreet market surveys extensively across the country in the past few weeks. Our findings are quite disturbing, to put it mildly. Therefore, our gathering here today (yesterday) is to underscore the gravity of the situation and the urgency of the need to work together to check this unwholesome development.

“As a statutory body whose mandate is to cater to consumer rights, we cannot allow this unhealthy trend to continue. To be sure, we quite recognize that an unfavourable exchange rate has negatively impacted the cost of production in local currency. However, the margin in pricing goods and services is unreasonable or excessive in a few cases.

‘’We have observed, for instance, that the margin in the prices of imported goods are very disproportionate in many cases; and in the case of locally produced goods, excessively inflated. This is an untenable situation, particularly in the retail segment, where we have identified patterns of price fixing perpetrated by some market associations, price gouging, and other anti-consumer practices.

Widespread price fixing

‘’For proper understanding, price fixing refers to an unholy agreement between competing businesses to set prices at a certain level. This can be done either explicitly or implicitly, and it prevents healthy competition that is otherwise expected to drive prices down and improve quality.

‘’Price gouging on the other hand occurs when sellers significantly increase the price of goods or services during a crisis or a period of economic challenge. This practice takes undue advantage of consumers.

‘’To illustrate, let me give you some glimpses of our findings. For instance, our check just two days ago at a popular supermarket chain in Texas, United States, revealed that a fruit blender called Ninja, is displayed on the shelf at $89 (roughly N140,000), just two days ago.

‘’Meanwhile, the same product was displayed at a popular supermarket on Victoria Island in Lagos for N944,999 on the same day and at the same hour. This represents more than 500 per cent inflation of the cost.

‘’Interestingly, when our undercover officer visited the same supermarket two weeks earlier, this same blender was on display with the price tag of N750,000.

‘’The question then arises: what is the basis for this arbitrary hike in the price of the blender, compared to the United States? What business principle can justify this level of profiteering?

‘’Perhaps, I should cite a few more of the unpleasant discoveries we made during our investigation. In some notable supermarkets surveyed discreetly in Abuja, Kano, Port Harcourt and Lagos, we also found that prices were arbitrarily jerked up from time to time without any justifiable reason.

‘’In one particular big supermarket in Abuja, for instance, consumers were being charged N2,600 for an imported toilet soap at the payment point as the price tag was not displayed as earlier mandated by FCCPC. The same toilet soap was displayed for sale at N1,950 at a popular supermarket in Lekki, Lagos, the same day. That already constitutes a double offence.

“From our findings, the penchant to hike prices arbitrarily is also common among sellers of food items and transport operators. When the foodstuff sellers were engaged, their common response was that the cost of transportation had increased.

‘’But how justifiable is it for the tomato seller to double the price of a basket of tomatoes simply because they paid higher transport fare? Whereas the price of the same basket of tomatoes was far cheaper at another market within the same jurisdiction surveyed by our field officers. Now, the question: did the seller who sold at a lower price not also pay the transport fare?

‘How price-fixing happens’

‘’In a typical foodstuff market environment, this is how price fixing happens. A trailer-load of yam tubers arrives at Wuse market in Abuja from, say, Benue State. Rather than allow free trade, the market cartel then inserts themselves between the produce farmers and the retailers.

‘’They buy in large quantities from the producer at cheap rate and, in turn, sell to market retailers at much higher price. And the retailers, in turn, sell to consumers at cut-throat rate.

‘’Such price fixing is no longer acceptable and FCCPC will, henceforth, crack down on those involved in this profiteering scheme.

‘’In the case of public transportation, again how justifiable is it for the bus driver to double their fare simply because they paid slightly higher for petrol? Of course, this will only result in a spiral of arbitrary hike in the prices of other services.

‘’The landlord who pays more for transport will probably seek to double their rent as a survival strategy. The school-owner asked to pay higher rent will also likely increase fees they charge students. That way, we all end up being losers with the cost of living becoming unbearable for everyone.

‘’In view of the current situation in Nigeria, let me, however, be very unequivocal. Price gouging and price fixing are not only unethical, but patently illegal under the FCCPA. As such, the FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers.

“However, our approach today is not punitive or adversarial. To start with, we intentionally resolved to withhold the names of the aforementioned errant supermarkets, believing that, after this exposition, they will turn a new leaf and adjust their prices downward to a reasonable level.

‘’This approach is borne out of our conviction that dialogue and collaboration are equally important tools in fostering a fair marketplace. We believe that through constructive engagement, we can establish a framework for reasonable pricing that benefits all stakeholders, particularly the consumers who are the backbone of our economy.

‘’Please note that this new initiative by the FCCPC aligns with the renewed hope agenda of President Bola Tinubu, which prioritises the welfare of the Nigerian people in all economic activities. We are determined to uphold this agenda by ensuring that market practices do not exacerbate the economic challenges faced by our citizens at this time.

‘’Good enough, as a sensitive leader who cares for the welfare of the citizens, President Bola Tinubu has already graciously taken some pragmatic steps to ease food security in the country, including the provision of fertilizer to farmers as well as removal of tariffs on the importation of selected staple food items.

‘’It is only just and reasonable that distributors and traders pass down the gains to Nigerian consumers by reducing prices in the coming weeks.

‘’As we move forward, I therefore call on all stakeholders to embrace the spirit of patriotism and cooperation. Let us talk to ourselves. The law empowers the commission to impose heavy fine for breaches and also prosecute offenders which could lead to jail terms.

‘’For instance, Section 107 (4a.) of FCCPA clearly states: “Where the undertaking is a natural person, is liable on conviction to imprisonment for a term not exceeding three years or to payment of a fine not exceeding N10,000,000.00 (N10m) or to both the fine and imprisonment.

‘’Section 107 (4b.) also states that, “Where the undertaking is a body corporate, is liable on conviction to a fine not exceeding 10% of its turnover in the preceding business year.

“But in the spirit of democracy, we are first exploring the option of dialogue. It is also in this spirit that we are giving a moratorium of one month (that is, September) before the commission will start firm enforcement. Let us work together to create a marketplace that is not only competitive but also fair and just.

‘’The FCCPC is committed to continuing these dialogues, monitoring compliance, and taking decisive action where necessary.’’

Why prices go up, by sellers

Some of the market stakeholders who spoke at the engagement, said high cost of transportation, insecurity, multiple taxation, among others, were reasons for the continuous increase in prices of goods and services.

Mr Ifeanyi Okonkwo, the Chairman, National Association of Nigerian Traders, FCT chapter, said charges on imported goods at the ports had also contributed to the hike in prices.

Okonkwo appealed to the commission to set up a taskforce and involve the association in its enforcement.

Mr Emmanuel Odugwu from Kugbo Spare Parts market, said the initial cost of transportation of a trailer load of tyres from Lagos to Abuja was N450,000, noting it now cost over one million naira to transport same.

Ms Kemi Ashiri, the Liaison Manager, Flour Mills, said fines by regulators need to be harmonised for businesses to thrive.

Ikenna Ubaka, who spoke on behalf of supermarket owners, alleged that banks’ interest rates to them were over 30 per cent, and that rent increments and hike in prices by distribution/ supply chains were reasons for the high cost of goods.

Ubaka also alleged that electricity distribution companies were charging supermarkets exorbitantly.

Mr Solomon Ukeme, who represented Master Bakers Association, said rapid increment of major ingredients such as flour, sugar and butter, contributed to the high cost of confectioneries.

He said a bag of flour formerly sold for N34,000, was now being sold for N74,000, noting also that multiple taxation remained the major cause for the high cost of bread.

Price reduction, a mirage unless insecurity, high transportation costs are reduced — TUC

Reacting to the development yesterday, 1st Deputy President, Trade Union Congress of Nigeria, TUC, Dr. Tommy Okon, said until the issue of insecurity and high cost of transportation of goods and services were addressed, any talk of reduction of price within a month or more would be a mirage.

‘’Farmers pay to access their farms and also pay for transportation as well as extortion by security agencies and touts along the highways. All these are factored into the prices of goods. Until all the variables are addresed by government, there is no way prices of goods will come down..’’

‘Direct price control can create shortages’

Reacting, Clifford Egbomeade, Public Analyst and Communications Expert, said: “The Federal Competition and Consumer Protection Commission’s initiative to force traders to lower prices, amid inflation and economic hardship, while well-intentioned, could have unintended consequences.

‘’Direct price controls often disrupt the natural balance of supply and demand, leading to potential shortages as traders might find it unprofitable to sell at the mandated prices. This kind of intervention risks distorting the market and may not address the root causes of inflation.

“For small and medium-sized enterprises, SMEs, which typically operate with slim profit margins, such controls could be particularly damaging. Many SMEs might struggle to sustain their businesses under enforced price reductions, leading to closures and job losses, which would have a broader negative impact on the economy.

‘’The informal sector, a significant part of the Nigerian economy, could be disproportionately affected by these measures.“A more sustainable approach might involve strengthening social safety nets and improving supply chains to reduce costs naturally. Supporting local production and implementing targeted subsidies for essential goods could also help mitigate the impact of inflation without distorting market dynamics.

‘’Ultimately, while the FCCPC’s efforts may provide temporary relief, addressing the underlying economic factors driving inflation would lead to more lasting solutions.”

FG has no right to force traders to crash prices- Barr Onwuka

In her reaction, a human rights activist, Barrister Charity Onwuka, said: “This is very appalling really, another mess up by the APC-led administration.

The federal government has no right whatsoever to force traders to crash prices because the traders bought the commodities or items at a very high rate. According to her, this will lead to artificial scarcity because traders will rather hoard their goods than sell at a very low rate to their detriment.

She said: ‘’The government should rather have a more practical and pragmatic approach to resolve the inflation in the economy.

‘’As a citizen of Nigeria, I suggest, as is being widely advocated, that the cost of governance should be crashed to the barest minimum and experienced economic experts should be consulted to advise on the way forward, rather than compensating political faithful and family members by giving them key positions wherein they can’t make positive impacts for the good of everyone in the country!”

[Vanguard]

The issue of critical national importance of the day is the growing trend of unreasonable pricing of consumer goods and services across the country, and the unwholesome practice of market associations engaged in price fixing.

As a responsive organization, we have carried out discreet market surveys extensively across the country in the past few weeks. Our findings are quite disturbing, to put it mildly. Therefore, our gathering here today is to underscore the gravity of the situation and urgency of the need that we both work together to check this unwholesome development.

As a statutory body whose mandate is to cater to consumer rights, we cannot allow this unhealthy trend to continue.

To be sure, we quite recognize that an unfavourable exchange rate has negatively impacted the cost of production in local currency. However, the margin in pricing of goods and services is rather unreasonable or excessive in not a few cases.

We have observed, for instance, that the margin in the prices of imported goods are very disproportionate in many cases; and in the case of locally produced goods, excessively inflated. This is an untenable situation, particularly in the retail segment, where we have identified patterns of price fixing perpetrated by some market associations, price gouging, and other anti-consumer practices.

For proper understanding, price fixing refers to an unholy agreement between competing businesses to set prices at a certain level. This can be done either explicitly or implicitly, and it prevents healthy competition that is otherwise expected to drive prices down and improve quality.

Price gouging on the other hand occurs when sellers significantly increase the price of goods or services during a crisis or a period of economic challenge. This practice takes undue advantage of the consumers.

To illustrate, let me give you some glimpses of our findings. For instance, our check just two days ago at a popular supermarket chain in Texas, United States, revealed that a fruit blender called Ninja is displayed on the shelf at $89 (roughly N140,000). Just two days ago. Meanwhile, the same product was displayed at a popular supermarket at Victoria Island in Lagos for N944,999 on the same day and at the same hour. This represents more than 500 percent inflation of the cost.

Interestingly, when our undercover officer visited the same supermarket two weeks earlier, this same blender was on display with the price tag of N750,000.
The question then arises: what is the basis for this arbitrary hike in the price of the blender compared to the United States? What business principle can justify this level of profiteering?

Perhaps, I should cite a few more of the unpleasant discoveries we made during our investigation. In some notable supermarkets surveyed discreetly in Abuja, Kano, Port Harcout and Lagos, we also found that prices were arbitrarily jacked up from time to time without any justifiable reason. In one particular big supermarket in Abuja, for instance, consumers were being charged N2,600 for an imported toilet soap at the payment point as the price tag was not displayed as earlier mandated by FCCPC. The same toilet soap was displayed for sale at N1,950 at a popular supermarket in Lekki, Lagos the same day. That already constitutes a double offense.

From our findings, the penchant to hike prices arbitrarily is also common among sellers of food items and transport operators. When the foodstuff sellers were engaged, their common response was that the cost of transportation had increased. But how justifiable is it for the tomato seller to double the price of a basket of tomatoes simply because they paid higher transport fare? Whereas the price of the same basket of tomatoes was far cheaper at another market within the same jurisdiction surveyed by our field officers. Now, the question: did the seller who sold at a lower price not also pay transport fare?

In a typical foodstuff market environment, this is how price fixing happens. A trailer-load of yam tubers arrives Wuse market in Abuja from, say, Benue state. Rather than allow free trade, the market cartel then insert themselves between the produce farmers and the retailers. They buy in large quantities from the producer at cheap rate and, in turn, sell to market retailers at much higher price. And the retailers, in turn, sell to consumers at cut-throat rate.

Such price fixing is no longer acceptable and FCCPC will henceforth crack down on those involved in this profiteering scheme.

In the case of public transportation, again how justifiable is it for the bus driver to double their fare simply because they paid slightly higher for petrol? Of course, this will only result in a spiral of arbitrary hike in the prices of other services. The landlord who pays more for transport will probably seek to double their own rent as a survival strategy. The school-owner asked to pay higher rent will also likely increase the fees they charge students. That way, we all end up being losers with the cost of living becoming unbearable for everyone.

In view of the current situation in Nigeria, let me however be very unequivocal. Price gouging and price fixing are not only unethical, but patently illegal under the FCCPA. As such, the FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers.

However, our approach today is not punitive or adversarial. To start with, we intentionally resolved to withhold the names of the aforementioned errant supermarket, believing that, after this exposition, they will turn a new leaf and adjust their prices downward to a reasonable level.

This approach is borne out of our conviction that dialogue and collaboration are equally important tools in fostering a fair marketplace. We believe that through constructive engagement, we can establish a framework for reasonable pricing that benefits all stakeholders, particularly the consumers who are the backbone of our economy.

Please note that this new initiative by the FCCPC aligns with the renewed hope agenda of President Bola Tinubu, which prioritises the welfare of the Nigerian people in all economic activities. We are determined to uphold this agenda by ensuring that market practices do not exacerbate the economic challenges faced by our citizens at this time.

Good enough, as a sensitive leader who cares for the welfare of the citizens, President Bola Tinubu has already graciously taken some pragmatic steps to ease food security in the country, including the provision of fertilizer to farmers as well as removal of tariffs on the importation of selected staple food items. It is only just and reasonable that distributors and traders pass down the gains to Nigerian consumers by reducing prices in the coming weeks.

As we move forward, I therefore call on all stakeholders to embrace the spirit of patriotism and cooperation. Let us talk to ourselves. The law empowers the commission to impose heavy fine for breaches and also prosecute offenders which could lead to jail terms.

For instance, Section 107 (4a.) of FCCPA clearly states that, “Where the undertaking is a natural person, is liable on conviction to imprisonment for a term not exceeding three years or to payment of a fine not exceeding N10,000,000.00 (N10m) or to both the fine and imprisonment.”

Section 107 (4b.) also states that, “Where the undertaking is a body corporate, is liable on conviction to a fine not exceeding 10% of its turnover in the preceding business year.”

But in the spirit of democracy, we are first exploring the option of dialogue. It is also in this spirit that we are giving a moratorium of one month (that is, September) before the Commission will start firm enforcement. Let us work together to create a marketplace that is not only competitive but also fair and just. The FCCPC is committed to continuing these dialogues, monitoring compliance, and taking decisive action where necessary.

Being excerpts from the keynote address on Thursday, August 29, by the executive vice-chairman/chief executive officer, FCCPC, Tunji Bello, at a stakeholder meeting on exploitative pricing. 

In the years 2000 to 2006, I watched with great interest the national furore and legislative resistance that greeted President Obasanjo’s request for an upgrade of the presidential jet. 

The presidential jet, a Boeing 727-200 acquired 17 years before, had been modified in Seattle, Washington, USA and had its conventional wings replaced with winglets.

The Boeing 727-200 was one of Boeing's best selling aircraft during its production run between 1962 and 1984. Yet as technology improved, such as increased aircraft automation and jet engine design, the jets lost their appeal.

Unlike jets flying today, the Boeing 727-200 had older low-bypass turbofan Pratt & Whitney JT8D jet engines which were extremely noisy. 

The loud P & W JT8D engines blasted ears and rattled windows throughout the 1970s, 80s and 90s. As a result, existing 727s had to be fitted with hush kits to comply with increasingly new regulations on noise and pollution control, especially at designated international airports across the world. 

While US Federal requirements stated that all civil aircraft must meet quieter ‘stage 3” noise regulations by January 1, 2000, The EU Noise Rule, which was to be effective in April 2002, banned aircrafts fitted with hush kits or devices that reduce aircraft noise. 

EU leaders had approved the hush-kit ban in April 1999 but delayed its implementation, first by 12 months, after an unprecedented lobbying campaign by Washington, which feared that it would hit billions of dollars worth of American-made aircraft and equipment, such as President Obasanjo’s Boeing 727-200, and so while the presidential jet may not have problem traveling to the United States and some other countries, it will not be allowed in European Union airspace. 

Unfortunately, the national conversations generated at that time were tainted ignorance, vain politics and reckless hypocrisy. 

Both houses of the National Assembly at the time, headed by Okadigbo and Na’abba, remained combative for many years with the Presidency over the issue of the presidential jet. 

It was not until the presidential jet developed a hydraulic problem after in Davos, Switzerland after the President’s attendance of the World Economic Forum where the President was stranded for more than 12 hours, and the near crash of a another presidential jet conveying Vice President Atiku from official trip to Portugal demanding an emergency landing in the Spanish Island of Tenerife that the National Assembly decided to agree and consider a complete overhaul of the presidential fleet with 8 new aircrafts to cater for not just the President, but the President of the Senate, the Speaker of the House of Representatives and the Chief Justice of the Federation.

This explains why it is not uncommon to see the Senate President, or the Speaker of the House of Representatives being ferried around in an executive jet drawn from the pool of the presidential fleet. 

It took Obasanjo far more hassle to get his plane than it took most of the jet craving Governors at the time to get theirs. For instance, Rivers State Governor Peter Odili acquired a private jet much before the President. He did not just acquire an Embraer Jet for his exclusive use, but also acquired another aircraft for use as an air ambulance.  

The fact remains that the procurement of an executive jet befitting for a President, or a State Governor is an expensive adventure that will always provoke combustive national conversations. Such conversations are usual, and typical for any democracy. 

When Boeing, the Seattle based American aircraft manufacturer presented President Donald Trump with a $5 billion for two new presidential jets (747-8) to replace the current two 747-200s (VC-25) that had served for about 34 years, it was to Twitter that President Trump ran to exclaim “Cancel Order!”. 

Boeing eventually brought its bill down to $3.9 billion, a decision Boeing regrets today as they have consistently missed delivery deadlines, citing COVID-19 and unexpected design and material supply challenges. 

National conversations of this sort are useful, enlightening and should always be encouraged. This is the good thing with democracy, or democratic experiments. Problems only arise when these conversations are laced with ignorance, mischief and barefaced hypocrisy.  

You do not get these kinds of national conversations in dictatorships. 

For instance, no one questioned Nigeria’s former ruler, Sani Abacha when he decided on a presidential jet for himself or the presidential fleet. 

We do not  hear the Chinese complain about how many aircrafts the president owns in his fleet. Neither do you hear them speak up when a ruling party dictates a documented national decree of one-man-one-wife-one-child, as a way of taming its exploding  population and containing its rapidly declining economy. 

The conversations that have followed the decision of the Tinubu presidency to upgrade the presidential jet and trade-in a few other aircrafts in the presidential fleet have not been healthy improvements on those raised during the Obasanjo years. 

Last week, Daily Trust, a Nigerian newspaper carried a title stating that the United States President was still using an aircraft that was 34-years old while the Presidency was seeking to upgrade an aircraft that was barely 20 years old. 

The article did not state the fact that Air Force One, the call sign of the United States official presidential jet, is a title currently shared by two Boeing VC-25, military versions of the Boeing 747 airliner, modified for presidential transport. 

The first was delivered on September 6,1990. The second, an exact replica, was delivered on March 26, 1991.  And so they have both shared 36 years of service to about three US Presidents between them. 

The two VC-25As are slated for retirement, the first in 2027, and the second in 2028.  

On February 27,  2018, the White House announced a $3.9 billion agreement with Boeing to modify two unsold 747-8 Intercontinental (747-8i) to replace the current VC-25As. The new aircrafts will be designated VC-25B and are due for delivery in 2027 and 2028.

Unlike the Nigerian presidential jet, the old VC-25As will not be commercially traded off for profit but will be retired from service and placed in museums.

The Boeing 737-200 that President Tinubu inherited has a working life span of about 30 years. 

Over the years, the 737-200 has built a global reputation as a short haul work horse even though its duties at the Nigerian presidency has seen it being called up for long hauls at relatively short notice which may have over stretched it a bit. 

With increasing age especially at more than 15 years of continued steady service, the cost of a detailed maintenance check such as a D Check (or P48 check) which involves more than 20,000 to 40,000 man-hours, runs into millions of dollars. 

I am sure President Tinubu would not have bothered to change the jet if not for the series of small challenges that have arisen in recent times during his several trips abroad. Issues like hydraulic malfunction to leakages have hampered the President’s travel.

The decision to trade in the Boeing 737-700 for an Airbus A320 is a good one considering that the A320 is better suited for long hauls and can effortlessly carry out some of the many tasking travel challenges that the President’s itinerary entails. Besides, the fact that the Presidency was able to commandeer a deal that saved the country more than $400 million is also worth considering. 

Already according to online listings, the old presidential jet, a 19.1 year old VIP configured Boeing 737-700 (BBJ) has been put up for sale. 

ADS-B data shows that the 5N-FGT (MSN 34260) was ferried from Abuja to Basel/Mulhouse/Freiburg in Switzerland on March 25.

According to the listing, the aircraft underwent B1(mechanics - engines and airframes) and B2 (Avionics –instrumentation, electrical/electronic equipment) inspections, plus C1 and C2 maintenance by AMAC Aerospace in Basel in July 2024. The twin jet had clocked up 3,821 flying hours and 1,881 landings. 

Its replacement, a foreclosed ACJ330-200, VP-CAC (MSN 1053) now 5N-FGA has also arrived Nigeria and has since resumed presidential duties. 

The new acquisition came after the House of Representatives Committee on National Security and Intelligence recommended acquiring new aircraft for President Bola Ahmed Tinubu and his Vice President due to high maintenance costs and operational issues with the current presidential fleet, which is operated by the Nigerian Air Force but overseen by the Office of the National Security Adviser led by Nigeria’s famed former Anti-Corruption Czar Nuhu Ribadu. 

The presidential fixed wing fleet also comprises the Vice President’s 13 year old Gulfstream Aerospace G55, a Gulfstream G500, two Falcon 7X, a hawker 4000 and a Challenger 605 though three of these aircraft are reportedly unserviceable and will be sold off as well. 

Between 2016 and 2024, the cost of managing the presidential fleet has skyrocketed by more than 200% with maintenance expenses of each aircraft ranging from from $1.5 million to $4.5 million annually. 

Be that as it may, this new business jet, with a far larger capacity and travel time than the other, will still be due for replacement in the next ten to fifteen years, as it would be best for Nigeria to sell it off before it completely loses its second-, or third-hand value. 

My prayer is that when the next national conversation on presidential jet replacement or upgrade comes,  it would be far more informed, far more guided, and devoid of the parochial politics of yesteryears and the myopic, mischievous and malicious idiosyncrasies of yesterday, especially in this day and age when information can easily be accessed and interrogated thanks to the internet. 

Our hope and earnest wishes are that the President should put these equipments to good use and for the betterment of our country and its people. 

George Kerley writes from Port Harcourt

Waheed Ayilara, Commissioner of Police in Akwa Ibom State, is dead.

Ayilara, who took over the State Command of Nigeria Police Force in February, died while undergoing surgery at a popular hospital in Lagos State.

The deceased was said to have had prostate cancer surgery on Wednesday before he died hours later.

Lagos State Police Command Public Relations Officer, Benjamin Hundeyin, was unavailable for comment at the time of filing this report.

Late last year, Ayilara had a stint as acting Commissioner of Police in Lagos.

The former Deputy Commissioner of Police in charge of the State Criminal Investigation Department,0 took over from AIG Idowu Owohunwa.

It was after acting as head of Lagos Police Command that he was deployed to Akwa Ibom.

[DailyTrust]

Liverpool’s latest signing, Federico Chiesa, has explained why he joined the club as a free agent.

Liverpool officially announced the signing of Chiesa on Thursday.

The 26-year-old forward joined the Premier League giants on a long-term deal after his contract with Juventus expired.

Speaking after signing for Liverpool, the Italy international suggested that he joined the Reds because of the club’s history and what its fans represent.

“I’m so happy to be a Liverpool player. When Richard Hughes called me and he said, ‘Do you want to join Liverpool?’ – and the coach called me – I said yes immediately because I know the history of this club, I know what it represents to the fan,” Chiesa told Liverpool’s website.

“So, I’m so happy and I can’t wait to get started.”

[Dailypost]

Tino Anjorin has completed a permanent transfer to Serie A side Empoli.

According to a post on Chelsea Football Club’s website on Thursday, Anjorin, who first trained with Chelsea at the age of six, officially signed as an under-9 and progressed through the Academy at Cobham.

Tino signed his first professional contract in November 2018 and moved up to the Under-21s squad ahead of the 2019/20 season.

It was an impressive campaign for the midfielder, as he was handed his senior debut against Grimsby Town, made his Premier League debut against Everton, and helped the Under-21s win Premier League Two.

“Tino was involved in several match-day squads throughout the following season, making his Champions League debut and full Premier League debut, and then embarked on several loan spells.

“We would like to thank Tino for all his efforts while at the club and wish him well as he begins the next chapter in his career,” Chelsea Football Club added.

[Punch]

Since the advent of Nigeria’s 25-year democracy, the Independent National Electoral Commission (INEC) and the National Assembly have reformed election laws and regulationsbefore and after every general election. These amendments are designed to address the flaws experienced in previous elections. As more reforms are introduced in the electoral process, efforts by political actors to circumvent the reform also intensify. The 2023 election produced the most politically diverse National Assembly, and several electoral upsets were recorded across states. Notwithstanding, the election failed to meet public expectations due to several reasons ranging from operational inefficiencies, technological challenges, voter suppression, and non-compliance with electoral laws, amongst others.

The period cycle was marked by forum shopping and wanton disregard for the agelong doctrine of stare decisis (judicial precedent), leading to conflicting judgments on cases with similar material facts. Additionally, substantial justice was sacrificed on the altar of legal technicalities, which rolled back key reforms to the electoral legal framework and eroded public trust in the judiciary. This prompted the Body of Benchers to constitute a committee headed by the former Chief Justice of Nigeria (CJN), Justice Walter Onnoghen, to address this menace of conflicting court judgments.

The enactment of the Electoral Act 2022 was predicated on the belief that a new electoral legal framework would address the intractable problems of election manipulation, electoral impunity, operational inefficiencies and weak democratic institutions plaguing Nigeria’s electoral process. The Act, widely adjudged as the most progressive electoral legislation in Nigeria’s recent history, produced positive outcomes in the last elections. However, several loopholes were exposed during its first application in the 2023 general election. These ambiguities were the grounds for extensive legal contestations after the elections. Some of these ambiguities include the uncertainty regarding the stage for comparing physical copies of results and electronically transmitted results. Also, the definition of “transmitted directly” or “electronically transmitted” is vague. It is unclear if the term “transmitted directly” used in Sections 60 and 64 of the Electoral Act regarding collation of results refers to electronic transmission. Although INEC was vested with the power to review declarations/returns made involuntarily or contrary to law, Regulations and Guidelines, the modalities and procedures for exercising this power were not prescribed in the Act or INEC guidelines, leaving a vacuum for controversies and uncertainty. A cumulative reading of the proviso to Section 65(1) of the Electoral Act 2022 and Regulation 90 of INEC regulations does not indicate who can file a report, and the procedure for filing a report indicating declaration/return made under duress or contrary to law, Regulations and Guidelines.

The current electoral jurisprudence based on recent judicial decisions on election cases

One of the most prominent debates in Nigeria’s electoral jurisprudence is the legality of innovations introduced by INEC through Regulations, Guidelines and Manuals issued pursuant to the powers vested on the Commission by the Constitution and the Electoral Act. Since 2015, the Courts have maintained that innovations like Smart Card Reader, BVAS and IReV require statutory enactment to enjoy the force of law. This posture of the Supreme Court creates contradictions in the electoral system. When a principal legislation confers powers on an institution to issue guidelines for its operations, such guidelines should have a binding effect because they derive from the principal Act, especially where the institution exercised the power within its scope. It is illogical for the Court to maintain that electronic transmission into the IReV portal is not a legal requirement simply because it was introduced in the guidelines rather than in the Electoral Act.

The intention of the framers of the Constitution in S.160 and S.148 of the Electoral Act 2022 was to donate discretionary powers to INEC to determine the procedure for results transmission. These provisions ultimately protect INEC’s independence as a regulatory institution and provide INEC with the flexibility required to facilitate operational innovations in the electoral process given the dynamic nature of the electoral process. It’s an established rule that principal legislations like the Constitution and Electoral Act provide a broad legislative framework. Therefore, outlining detailed procedures in the principal legislation would amount to over-legislation. The current case law negates these legal provisions and undermines the legislative intent to empower INEC.

5. The absence of a presiding officer’s signature, stamp and date on a ballot paper will not render a marked ballot paper invalid. The Supreme Court has established that as long as a Returning officer is satisfied that a ballot paper was from a book of ballot papers which was furnished to the presiding officer for use at his or her polling unit, the condition that the ballot paper must be signed is not compulsory. The Court’s decision is consistent with Section 63(2).

Addressing unresolved electoral reform issues

First, attitudinal change among politicians is the most critical electoral reform Nigeria requires. A fundamental shift in the behaviour of politicians to toward electoral politics would radically deepen the integrity of elections. Politicians should demonstrate commitment to democratic values and respect the will of the people as an act of patriotism and dedication to nation-building.

Second, the legal status of INEC’s Regulations, Guidelines and Manual should be stated explicitly in the Electoral Act to strengthen its enforcement, safeguard INEC’s independence of INEC and facilitate the introduction of innovations to enhance the integrity of the electoral process.

Third, the Electoral Act should be amended to resolve all the ambiguities in the results collation and transmission process, including stating the role of technology in results management.The Act should make electronic transmission of results mandatory, including the upload of polling unit-level results and results sheets used at different levels of results collation.

Fourth, appeals on pre-election matters related to National Assembly and State Houses of Assembly elections should terminate at the Court of Appeal.  

Fifth, the requirement for voter identification should be expanded: With the successful introduction of the BVAS, which stores biometric information of voters, the Electoral Act 2022 should be amended to permit the use of other legally acceptable means of identification for voter verification in addition to the already produced Permanent Voters’ Card (PVCs). These means of identification include a driver’s license, international passport, national identity card, electronically downloadable voters’ card from the INEC website and any other means of identification as may be determined by INEC.

In conclusion, the 2023 elections reinforced five undisputed factors central to rebuilding public trust and enhancing the integrity of Nigerian elections. First, attitudinal change among politicians is a condition for rebuilding public confidence in the electoral process. Second, the electoral governance architecture, especially INEC, requires fundamental reforms. Third, the 2022 Electoral Act contains ambiguities and inadequacies that make the electoral process susceptible to capture and manipulation. Fourth, the right to vote requires additional legal and administrative protection as voter disenfranchisement and suppression intensify in each electoral cycle. Lastly, accountability institutions must function effectively and impartially to abate electoral impunity.

Excerpts from a Paper presented at the Nigerian Bar Association (NBA) 2024 Annual General Conference, Lagos, 27th August 2024

Vice-President Kashim Shettima has appealed to his fellow compatriots and associates and numerous well-wishers across the country not to place congratulatory ads on his 58th birthday.

He made the appeal in a statement issued by Mr Stanley Nkwocha, the Senior Special Assistant to the President on Media and
Communications (Office of The Vice President), on Thursday in Abuja.

The News Agency of Nigeria (NAN) reports that the vice-president will turn 58 years old on Monday, Sept. 2.

Shettima, therefore, implored friends and associates who may wish to place goodwill messages as advertisements to
kindly donate the funds to charity organisations and vulnerable citizens instead.

The vice-president insisted that he would not want an elaborate pomp marking the day.

“As this auspicious moment draws closer, V-P Shettima fervently implores family members, friends, and associates who may wish to place goodwill messages as advertisements to kindly donate the funds to charity organisations and vulnerable citizens instead.

“This aligns with the commitment of the Renewed Hope Administration of President Bola Tinubu to address issues of development and economic growth, as well as improving the living conditions of Nigerians.

“The vice president remains ever grateful for the goodwill he enjoys from Nigerians and the best wishes a great number of his well-wishers have demonstrated towards him over the years.”

[Nigeria Tribune]

Abdullahi Ganduje, national chair of All Progressives Congress (APC), says the party will win the forthcoming governorship elections in Edo and Ondo states.

Ganduje said a “political machinery” has been put in place to pave the way for a landslide victory of the party’s candidate in Edo.

Speaking during a visit by the leadership of the Nigeria Union of Journalists (NUJ), Kano correspondents’ chapel, Ganduje said the APC is ready to recover the state from the People’s Democratic Party (PDP).

“I believe our campaign is in high spirit, we are getting ready for that election and we believe we will be able to recover our state,” he said.

“If we win Edo, we will be getting an additional state for the party. It will be 21 states out of 36.

“This is because it was an APC state but because of internal bubbles, we lost it to PDP but we are sure we will recover that state.

”For Ondo state, it’s already an APC state and when the former governor died, he left a number of problems,but we were able to resolve those issues.

”We conducted primaries, we succeeded in getting the person that they wanted.”

Ganduje said that the party is also getting ready for the governorship election in Anambra.

He said the APC has been putting measures in place to take control of the states in the south-east geopolitical zone.

“Next year, there will be Anambra, which has been a state governed by APGA for many years, but we have introduced a new scheme,” he said.

”The north, south-east political zones are all claiming that they have been marginalised. The south-east geopolitical zone is saying the same thing. But what we are telling them is that the marginalisation has been created by them.

“How can you have five states ruled by four political parties? What will be your political bargain?

“We want to start with Anambra. Already, we have Ebonyi and Imo. Now we are encroaching into that zone to ensure that we capture most of the states. And if we get what we want, we capture all the states.”

[TheCable]

The alarm in Nigeria's oil and gas industry, now blaring loudly, was first sounded by Mr. Tony Elumelu. In 2021, Elumelu invested over $1.1 billion to acquire a 45% stake in the OML 17 oil drilling asset, a venture in which Shell, Total, and Eni relinquished their shares, leaving the Nigerian National Petroleum Corporation Ltd (NNPCL) with the remaining 55% on behalf of Nigerians. 

To his dismay, in 2022, Elumelu discovered that only a small portion of the crude oil produced from his wells and fed into the Escravos pipeline actually reached its intended destination. The majority of the crude was being stolen by oil thieves who had mastered the technique of illegally tapping into the Escravos pipeline. 

It is widely known that the criminal siphoning of our crude oil into vessels, which are then transported to unknown locations by thieves, is robbing Nigeria of desperately needed foreign exchange from oil sales. This theft has severe consequences for the country's economy.

In a recent interview with the Financial Times of London, Tony Elumelu expressed his frustration that oil theft continues to account for about 18% of production. He emphasized the seriousness of the issue, saying, "This is oil theft, not something small like stealing a bottle of Coke. The government should know who is behind this and should inform us. In the U.S., when Donald Trump was shot at, the authorities quickly identified the assailant. Our security agencies should be able to tell us who is stealing our oil. How can vessels enter our territorial waters without our knowledge?"

In what seems like response to Elumelu's challenge to Nigeria's security agencies, a special task force was established by the Chief of Defense Staff, General Chris Musa, to combat the oil theft syndicate. The task force has achieved some success, allowing the Nigerian National Petroleum Corporation Ltd (NNPCL) to project an increase in oil production from the current estimate of 1.3 million barrels to 2 million barrels next year.

Alhaji Aliko Dangote, another prominent investor in Nigeria's oil industry, also voiced concerns about issues in the downstream sector. Dangote, who recently launched a $19.5 billion refinery with a capacity of 650,000 barrels per day, has faced difficulties due to a lack of crude oil supply. Mr. Davakumar Edwin, Vice President of Dangote Refinery, accused International Oil Companies (IOCs) of starving the refinery of crude oil feedstock, which has delayed the supply of petrol to the Nigerian market. Edwin stated, "Aside from Nigerian National Petroleum Company Limited (NNPC Ltd), to date, we have only purchased crude directly from one other local producer (Sapetro). All other producers refer us to their international trading arms."

He further explained, "For instance, in April, we paid $96.23 per barrel for a cargo of Bonga crude grade, excluding transport. The price included $90.15 for dated Brent, $5.08 for NNPC's premium (NSP), and a $1 trader premium. Meanwhile, we bought WTI at a price of $90.15 for dated Brent plus a $0.93 trader premium, including transport. When NNPC later lowered its premium based on market feedback, some traders began asking us for a premium of up to $4 million over and above the NSP for a cargo of Bonny Light. Data from platforms like Platts and Argus shows that the prices offered to us are significantly higher than market rates. We had to escalate this issue to the NUPRC."

Alhaji Aliko Dangote, President and Founder of Dangote Group, echoed Edwin's concerns but clarified that the NNPC is doing its best. He noted, "Some of the IOCs are struggling to provide us with crude. Everyone is accustomed to exporting, and nobody wants to stop exporting."

Also, as if in response, President Bola Tinubu has formed a committee led by Finance Minister Wale Edun. This committee has been tasked with developing a framework that will allow crude oil to be sold in naira to local refineries, starting with the Dangote Refinery. Following discussions with stakeholders, the committee has reportedly set a target for next month to begin producing petrol locally, which would help alleviate the pressure on the national treasury caused by the need to provide foreign exchange for petrol imports.

The expected output from the Dangote Refinery could also relieve Nigerians from the dual burden of not only paying high prices for petrol but also wasting valuable time queuing for fuel—an issue that many hope President Tinubu’s intervention will resolve permanently.

It is noteworthy that while Tony Elumelu is shocked by the brazen crude oil theft in the downstream sector, which is causing significant revenue loss to both his company and the country, Aliko Dangote is facing challenges from International Oil Companies (IOCs) that are withholding crude oil feedstock from his refinery. This ultra-modern facility is crucial for ending Nigeria’s reliance on petrol imports, which have long been a major component of the country’s import expenses, especially as the government has been subsidizing petrol prices for years.

These two significant challenges, which have caused sleepless nights for these two indigenous multi-billionaire investors in the oil and gas industry, are critical. If resolved, they have the potential to transform Nigeria’s socioeconomic development from a negative to a positive trajectory.

Fortunately, the outspoken criticism of industry irregularities by these two relatively new entrants into the oil sector is prompting much-needed reforms. The industry is currently undergoing what could be called a facelift through the strengthening of the Petroleum Industry Act (PIA), which was passed into law in 2021 but has yet to be fully enforced.

These issues underscore why understanding the toxic international petroleum politics in Nigeria, discussed in detail in this piece, should concern all Nigerians. Moreover, it is crucial to recognize that the oil and gas sector is the backbone of Nigeria’s economy, and we must protect it fiercely. The high cost of living crisis triggered by President Bola Tinubu’s removal of the petrol subsidy on May 29 last year highlights the central role that crude oil and its derivatives play in our economy and daily lives.

A question likely on the minds of some readers is whether the current upheavals in the oil and gas industry are new issues. The reality is that these challenges have existed since crude oil was first discovered in 1957 and its exploration began in Oloibiri, now part of Bayelsa State. However, the reason these issues—such as crude oil theft and the allocation of oil for local refining—are now receiving more attention is because private investors, who place a high value on accountability, are now involved in the industry.

In the past, when the oil and gas business was solely a matter between the government and International Oil Companies (IOCs), efficiency was not a priority for those on the government’s side. But now, with private investors like Tony Elumelu and Aliko Dangote—who have invested $1.1 billion in oil exploration and $19.5 billion in refining, respectively—these entrepreneurs are determined to protect their investments and ensure a return on their bold ventures.

Faced with the harsh realities and absurdities of the industry, both Elumelu and Dangote became increasingly frustrated when their investment plans were threatened by unexpected saboteurs. Their concern for their investments contrasts sharply with the often indifferent attitude of public servants, who traditionally did not prioritize Nigeria’s 55% equity in joint ventures with IOCs, which Elumelu has now acquired the 45% hitherto held by the transnational oil corporation.This same lack of concern for protecting Nigeria's interests in crude oil production sharing agreements is why there has been no proper metering system to accurately measure the volume of crude oil pumped into pipelines or shipped abroad until private investors like Dangote entered the scene with his refinery, capable of refining at least half of Nigeria’s present crude oil output.

So, rather than viewing the disruptions caused by the agitations by Elumelu and Dangote as problematic, I see them as opportunities. Their involvement signals a positive shift in the industry as they justifiably questioned what could have happenned to their substantial financial commitments in oil exploration and refining, if the sector was not properly sorted by government. In my view ,Elumelu and Dangote can be seen as catalysts for change in an industry long plagued by complexities and absurdities. Indeed their efforts are beginning to help clean up or sanitize the industry, reinforcing the idea that private sector involvement introduces greater efficiency compared to government-driven operations burdened by bureaucracy.

Most Nigerians would likely be shocked to learn that the lack of ownership mentality among officials responsible for national assets—an attitude reflecting a deep-seated lack of patriotism—is partly to blame for the fact that four federal government-owned refineries have been non-functional for nearly two decades. Equally alarming is the finding by a National Assembly committee that, despite the federal government investing up to $25 billion in public funds over the past decade for the turnaround maintenance of these four refineries, not a single liter of petroleum product has been produced. This situation is appalling, scandalous, and regrettable.

The same lack of accountability and ownership is also why crude oil theft continues to flourish, despite the NNPCL's claim in its 2023 financial report to have spent around ₦1.8 trillion on securing its extensive oil and gas assets. Yet, millions of barrels of crude oil are still being stolen in massive ocean-going vessels without detection, contributing to Nigeria's recent inability to meet its OPEC production quota.

It may surprise some readers to learn that the dysfunction of these four government-owned refineries is also due in part to sabotage, carried out by international organizations in collusion with Nigerian public servants embedded in the crude oil exploration and export value chain, particularly within the NNPC Ltd., which is responsible for importing petrol into Nigeria.

Former President Olusegun Obasanjo’s revelation adds another layer of complexity. He shared that during his presidency, he urged International Oil Companies (IOCs) to establish refineries in Nigeria, but they refused, citing rampant corruption in the sector. Obasanjo recounted that Shell, for example, declined his offer to take equity participation and manage Nigeria’s refineries, arguing that the refineries had not been properly maintained. Shell’s reasoning was clear: “There’s too much corruption with the way our refinery is run and maintained. And they didn’t want to get involved in such a mess.”

While Obasanjo viewed the IOCs’ rejection as an indictment of Nigerian corruption—a narrative often pushed by the Western world to make Africans blame themselves for the continent’s underdevelopment—I would argue that this refusal was actually a strategic move by the IOCs. As agents of imperialist interests, their primary goal has always been to extract crude oil and other raw materials from Africa, particularly Nigeria, for the industrialization of their home countries, rather than genuinely supporting African industrialization—a promise they frequently make but seldom fulfill, often deceiving those who are unaware of their true intentions.

Most Nigerians would likely be shocked to learn that the lack of ownership mentality among officials responsible for national assets—an attitude reflecting a deep-seated lack of patriotism—is partly to blame for the fact that four federal government-owned refineries have been non-functional for nearly two decades. Equally alarming is the finding by a National Assembly committee that, despite the federal government investing up to $25 billion in public funds over the past decade for the turnaround maintenance of these four refineries, not a single liter of petroleum product has been produced. This situation is appalling, scandalous, and regrettable.

The same lack of accountability and ownership is also why crude oil theft continues to flourish, despite the NNPCL's claim in its 2023 financial report to have spent around ₦1.8 trillion on securing its extensive oil and gas assets. Yet, millions of barrels of crude oil are still being stolen in massive ocean-going vessels without detection, contributing to Nigeria's recent inability to meet its OPEC production quota.

It may surprise some readers to learn that the dysfunction of these four government-owned refineries is also due in part to sabotage, carried out by international organizations in collusion with Nigerian public servants embedded in the crude oil exploration and export value chain, particularly within the NNPC Ltd., which is responsible for importing petrol into Nigeria.

Former President Olusegun Obasanjo’s revelation adds another layer of complexity. He shared that during his presidency, he urged International Oil Companies (IOCs) to establish refineries in Nigeria, but they refused, citing rampant corruption in the sector. Obasanjo recounted that Shell, for example, declined his offer to take equity participation and manage Nigeria’s refineries, arguing that the refineries had not been properly maintained. Shell’s reasoning was clear: “There’s too much corruption with the way our refinery is run and maintained. And they didn’t want to get involved in such a mess.”

While Obasanjo viewed the IOCs’ rejection as an indictment of Nigerian corruption—a narrative often pushed by the Western world to make Africans blame themselves for the continent’s underdevelopment—I would argue that this refusal was actually a strategic move by the IOCs. As agents of imperialist interests, their primary goal has always been to extract crude oil and other raw materials from Africa, particularly Nigeria, for the industrialization of their home countries, rather than genuinely supporting African industrialization—a promise they frequently make but seldom fulfill, often deceiving those who are unaware of their true intentions.

Before delving deeper, it’s important to recall that oil and gas were discovered in commercial quantities in Oloibiri, modern-day Bayelsa State, in 1957. For years, Nigeria exported crude oil exclusively until the first refinery was established in Port Harcourt in 1965. Back then, all refineries were government-owned, and it was within the government's prerogative to allocate 445,000 barrels per day (bpd) for local refining at the NNPC-operated facilities.

At the time, everything was managed within the government framework, which only required setting aside the 445,000 bpd needed by the four refineries located in the Niger Delta and Kaduna. Two of these refineries are in Port Harcourt with a combined refining capacity of 210,000 bpd, one in Warri with a 125,000 bpd capacity, and the fourth in Kaduna with a 110,000 bpd capacity.

Initially, the allocated crude oil came from the volume produced by International Oil Companies (IOCs), whose parent companies are based in Europe and Asia. However, today, there are multiple indigenous crude oil producers with significant capacity, as well as a growing number of local private refineries with substantial capacity, making the 445,000 barrels set aside for local refining insufficient.

Isn't it remarkable that, aside from the persistent issue of crude oil theft, another challenge has been the shortage of crude oil for local refining? Yet, if all goes well, these two long-standing and seemingly insurmountable challenges in the oil and gas industry may soon be relegated to history.

In truth, the primary mission of the IOCs has always been to extract natural resources from Africa to fuel the industrial revolution in Europe, which began with the invention of the loom machine by Jeane-Marie Jacquard in 1804 and the steam engine by James Watt in 1765. Extracting crude oil for refining abroad is part of the agenda set during the Berlin Conference of 1884-85, where Africa was partitioned into territories for European powers under the guidance of Otto Von Bismarck, the German Prime Minister.

As these newly created territories were exploited for raw materials in the past, the current practice of exporting crude oil and other resources to Europe is an old habit that IOCs are reluctant to abandon. This resistance is evident in their opposition to President Bola Tinubu’s directive to sell oil to local refineries in naira. The IOCs seem intent on sabotaging efforts to achieve energy independence, citing commitments to overseas buyers as an excuse.

Given that the Petroleum Industry Act (PIA) took nearly two decades (13 years) to materialize and the Dangote Refinery took about seven years to build, why did the IOCs not anticipate that exporting all of Nigeria's crude oil would no longer be viable? It’s telling that the multinational corporations were aware of the PIA’s implications, as evidenced by their divestment from onshore assets in favor of offshore operations. Yet, they continued to forward-sell Nigeria's crude oil to foreign buyers, fully aware that the country had committed, through the PIA, to becoming more energy independent.

The primary reason for this situation is that it’s more profitable for the International Oil Companies (IOCs) to export crude oil to their home countries, where it is refined into products like PMS, DPK, AGO, and NAFTA. These products are then sold back to Africa at significantly higher prices. This practice has been the Standard Operating Procedure (SOP) of the colonial powers for a long time. As a result, they find it difficult to change their approach and sell crude oil to Nigerian refineries instead.

This continued extraction and export of raw materials from Africa aligns with the imperialist agenda of European countries. However, this long-standing practice (regarding crude oil refining) has been disrupted by the establishment and commissioning of the Dangote Refinery in Lagos last year, much to the dismay of these colonial exploiters.

To better understand the challenges Nigeria is facing, consider the following scenario: IOCs extract crude oil from Nigeria and export it to their home countries at relatively low prices (ranging from $37 per barrel in the 1980s to the current $80-$100 per barrel). There, the crude is refined and then sold back to Nigeria at several times the original cost per barrel. This process not only creates jobs and boosts the economies of the IOCs' home countries, but it also leaves Nigeria with high unemployment among its youth and environmental degradation due to oil and gas exploration. This dynamic is why Nigeria often experiences a trade deficit, benefiting the home countries of the IOCs.

To further illustrate this point, let’s do a bit of math to compare the price of exported crude oil with the cost of imported petroleum products in Nigeria. A barrel of crude oil, which is equivalent to 42 U.S. gallons or 159 liters, is priced between $80 and $100. In contrast, the current landing cost of a liter of refined petrol imported into Nigeria is at least N1,117 per liter. Although comparing these figures can be challenging due to the different units of measurement—crude oil in barrels and refined products in liters—it highlights the significant markup and the opaque nature of the pricing, making the disparity between crude oil prices and refined product costs difficult to fully grasp.

For those willing to dig deeper, let's compare the selling price of a barrel of crude oil—currently just $80, the price at which we export it overseas—with the N1,117 per liter landing cost at which we import the 159 liters contained in that same barrel. A quick comparison reveals that, as a net exporter of crude oil, Nigeria is at a significant disadvantage.

This comparison helps explain why our economy is struggling and why it can no longer sustain the burdensome petrol subsidy. It's clear that the scenario outlined above is a major factor behind Nigeria's financial deficit, which exceeds N120 trillion.

Given this reality, it's crucial for us to support and encourage Aliko Dangote not to sell his refinery to the NNPCL, despite his threat to do so. This came after Alhaji Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDRA), a subsidiary of NNPCL, wrongly accused Dangote Refinery of attempting to replace the national oil giant as a monopoly.

Moreover, we should encourage other business leaders, such as Chief Mike Adenuga of Conoil, Mr. Femi Otedola of Geregu, (who has been involved in and out of the oil industry), Sahara Energy's Kola Adeshina, Aiteo's Benedict Peters, Nestoil's Ernest Azudialu, and other well resourced Nigerians, to invest more significantly in the sector. This would ensure that Nigerians are fully involved in the entire value chain—from exploration to refining, shipping, and even gas processing, where Julius Rone is making strides with his UTM Offshore.

Remarkably, Alhaji Samad Rabiu, owner of BUA cement, is also reportedly constructing a refinery of considerable scale. This could lead to a situation where Nigeria has the capacity to process crude oil into petrol in excess, much like how the country has become a net exporter of cement, with Dangote Cement and BUA Cement, dominating the African market and keeping foreign competitors like Lafarge and Flour Mills Cement on their toes.

Already , it is a tribute to the entrepreneurship of Nigerians that about five (5) Nigerian banks have spread their footprints into the African landscape with thriving subsidiaries in full bloom.

At this point, I believe that continuing to present additional facts and figures to justify the need for Nigeria, nay Africa’s independence from being an appendage to other economies and regions would be unnecessary. Rather readers should reflect on the situation and realize that, despite the challenges, our country is on the brink of a significant transformation in the oil and gas sector. So, it should be clear that halting the export of our crude oil and increasing local refining capacity is crucial for job creation, boosting foreign exchange earnings, and enhancing our GDP.

Currently, there are five fully operational modular refineries: Aradel in Port Harcourt, WalterSmith in Imo

State , Edo Refinery and Duport Midstream in Edo State, and OPAC in Delta State, with a combined processing capacity of less than 20,000 barrels per day. These smaller refineries are expected to benefit from President Bola Tinubu's new directive to sell the 445,000 barrels per day of crude oil reserved for local refining in naira. It is the crude oil reserrve referenced above that was providing the supply for the four NNPCL refineries, which have been non-functional for over a decade despite consuming over $25 billion in turnaround maintenance, without producing even a single liter of petrol.

Hopefully , the present administration would see the wisdom in my advocacy for the sale of the ailing government refineries to private sector players who would operate them more efficiently as canvassed in my numerous media interventions over the past decade.

After providing a historical background to connect the past with the current state of the oil and gas industry in Nigeria, including the international factors exacerbating the local refining capacity crisis, it’s time to address the way forward.

As already underscored, International Oil Companies (IOCs) seem to struggle with changing their longstanding business model of extracting raw materials from Africa and processing them into finished products in Europe or Asia. This situation reinforces the theme of my upcoming book, *"Africa Exporting Wealth, Importing Poverty,"* with the subtitle: *"Are Africans Thinking or Sinking?"* The book details how the West has systematically underdeveloped Africa by exploiting its natural and human resources, from the era of the slave trade to colonialism, neo-colonialism, and the ongoing practice of imperialism encapsulated in unfair trade practices with Africa as the underdog and victim.

The current conflict between Aliko Dangote, NNPCL officials, and IOCs has exposed how Africa continues to be stripped of its resources. This confrontation represents one of the final struggles of African entrepreneurs with the awareness and determination to resist the ongoing exploitation by Western powers.

The environmental devastation caused by irresponsible resource exploitation in Africa, such as the irreversible damage in the Democratic Republic of Congo (DRC) due to mining, is well-documented. Belgium, the colonial ruler, left the DRC in a blighted state, a situation that persists today. It's within this broader intellectual framework that I analyze the dispute between NNPCL executives, IOCs, and Dangote Refineries over Nigeria's control of its petroleum resources.

Through this lens, I hope Nigerians will gain a deeper understanding of the conflict surrounding local petrol refining, which has been oversimplified by some analysts as a lack of planning by Dangote Refinery. In reality, it also stems from a rivalry between two Kano State natives—Aliko Dangote and Samad Rabiu—that has spilled over into the oil industry and society. Though a simplified view, it remains a valid observation.

Rather than engaging in buttonh heads, the two illustrious kano indigenes Aliko Dangote and Samad Rabiu need to start collaborating and stop sabotaging each other.

Magnus Onyibe,an entrepreneur,public policy analyst ,author,democracy advocate,development strategist,alumnus of Fletcher School of Law and Diplomacy,Tufts University, Massachusetts,USA and a former commissioner in Delta state government, sent this piece from Lagos, Nigeria.