A political economist, Prof. Pat Utomi, has blamed the Central Bank of Nigeria for contributing to the free fall of the naira in the foreign exchange market.

Utomi who spoke while featuring on a Channels TV programme, said that missteps of CBN over the years put the naira it is today.

The Lagos Business School founder lamented that Nigeria had depended on foreign exchange sent home by its people in the diaspora for a long time.

“Diaspora has been a significant part of the economy. They are supporting their people from there because things are not going well for most of their people.

“But you know what, that leads to an inflow of foreign exchange into the country, and that helped us keep things going," he said.

He, however, noted that technology and entrepreneurship have changed the whole thing and made it such that the dollar is not coming to Nigeria.

According to him, the diasporans would now simply use one app and the Nigerian in London or Chicago who wants to solve a problem for their relations here, gives dollars to somebody who is there and the naira goes to the person here.

“Yes, it solves the problem, but the Nigerian economy has not received the input of the dollar. And the Central Bank helped contribute to that by some missteps they made in the last few years.

“So, this is a major reason why the exchange rate is tumbling. Can we fix that? It is possible.

“But it takes people sitting down and people trusting the character of those making decisions,” he said.

The Airline Operators of Nigeria (AON) have expressed concern about the high cost of operation, heightened by the recent increase in the naira-to-dollar exchange rate.

According to AON, people no longer travel for weddings and other events because they would prefer to send money to the event hosts since they cannot afford the outrageous ticket fees.

The professional association of domestic airlines in the country laments that the aviation fuel price hike has now made it challenging for airlines to conduct scheduled maintenance on their aircraft.

The operators highlighted that this situation poses a significant threat to their existence, as grounded aircraft cannot be transported overseas due to the scarcity of foreign exchange.

They have also warned that if this trend continues, there may not be enough operational aircraft for domestic services.

In a statement issued on Friday by its spokesperson, Professor Obiora Okonkwo, AON emphasized the urgent need for government intervention to prevent the potential collapse of many airlines, with the government ultimately being responsible for their demise.

The airlines expressed their concerns regarding the lack of stability in foreign exchange rates and the significant increase in the price of aviation fuel, which now stands at N1,300 per litre.

These factors have greatly impacted their ability to plan effectively and have created a sense of uncertainty and instability in their operations.

Okonkwo, who serves as the Chairman of United Nigeria Airlines, further elaborated on the issue, highlighting that passengers who had purchased tickets in advance for flights in 2023, when aviation fuel was priced at N700 per litre and the exchange rate was N800/$1, are now being airlifted at the current price of N1,300 per litre and an exchange rate of N1400/$1.

As a result, the airlines are facing substantial losses on these tickets, he observed.

“We are making losses on factors that are beyond our control. We are not only faced with the problem of scarcity of dollars; even the aviation ecosystem is feeling the heat. Handling companies have increased the cost of their services, airports have increased their charges and those that service the aircraft have also increased the cost of their services. The monies for these payments are coming from the passengers who are already exhausted financially,” Daily Trust quoted Okonkwo saying.

Okonkwo stated that numerous businesses in Nigeria are experiencing low profitability. As a result, the entrepreneurs who are crucial for passenger travel during both peak and off-peak seasons have ceased their journeys.

Additionally, he mentioned that the number of individuals travelling for tourism and social purposes is insufficient to ensure airlines maintain a satisfactory load factor and sustain their operations during the current low season.

The statement added: “Passenger traffic has shrunk because even those on social engagement like weddings, burials and other ceremonies may not be inclined to spend money on flight tickets; they would rather send credit alerts to those hosting the events who would appreciate such gestures. So, they pay instead of appearing in person.

“Air travel is a catalyst to economic development. There should have been government engagement with airlines at different levels. Airlines do not have special forex allocation, so they buy at the same place traders who trade in Brazilian hair, textiles, and others buy.

“Our passion to remain in this business is being eroded. We are at the point of oxygen supply. Some airlines are going into a coma. Our equipment is diminishing. The minimal revenues we earn to keep the airlines flying, we convert to pay our lessors.

“It is impossible to bring in more aircraft. Aircraft owners have become sceptical because of country risk. A Nigerian airline may meet its terms and all the standard criteria, but the aircraft owners consider country risk above other factors. Country risk supersedes everything, and lessors have their own obligations. So, there is nothing personal. Some airlines deposited money with the Central Bank of Nigeria (CBN) but they cannot provide us the needed dollars.”

Former Nigerian international, Segun Odegbami, has predicted an easy victory for the Super Eagles of Nigeria in their AFCON 2023 final clash against the Elephants of Cote d’Ivoire.

According to Odegbami, the Super Eagles have beaten Ivory Coast before in the group stages and that alone should give the Nigerian team a psychological edge.

He added that the Elephants are not as good as the Eagles and have only been lucky to make it to the finals of the tournament.

Speaking on Friday during an interview with Channels TV, Odegbami however, who maintained the Eagles are going to defeat their opponents hands down on Sunday despite the home support, urged the government to provide encouragement for the supporters team so they can counter the Ivorian fans who are sure to storm the stadium on Sunday.

He said, “We have beaten Ivory Coast before; we defeated them in the group stage, which gives us a psychological edge. Also, the hosts have not played well; they are not one of the top teams; they’ve been lucky. It’s a miracle they’ve gotten to this stage; they haven’t earned or deserved it on the pitch.

“In the final on Sunday, it will be a noise-making, vociferous crowd trying to lift their players against a team that should be prepared for no distractions and focused for 90 minutes.

“The Super Eagles play their game against a team that respects us; on the street, the Ivorians know we are superior; we just need to display it.

“Our players must believe, and I know we shall outplay them. It’s going to be our easiest match; it’s going to be a training session, and Nigeria will defeat them hands down.”

He added that, “We’re going to be up against 60,000 Ivorian fans, and they will overwhelm any kind of support we provide. I urge the government to provide support for our supporters; we need their voice. When we score, you see the players rush to the stands because they know how important they are.”

Northern group, Arewa Initiative for the Defense and Promotion of Democracy (AIDPD), has asked Nigerians not to blame President Bola Tinubu for the current pains and hardship across the country.

The National Chairman of the group, Shehu Abdullahi Ma’aji, stated this in a communique issued to journalists at a media briefing in Abuja on Thursday.

Ma’aji said certain politicians and clerics from the North have been in a hurry to dismiss the Tinubu administration as a failure just a few months into its assumption of office.

He urged politicians from the region to stop condemning the performance of the President but should blame the Muhammadu Buhari government for the economic hardship.

Ma’aji asserted that President Tinubu inherited enormous liabilities from its immediate predecessor, which will take time to fix.

He said: “Arising from our emergency meeting held at the Transcorp Hilton Hotel, Abuja, to review the State of the Nation, we, members of pro-democracy groups from the 19 Northern States and the FCT, make the following observations and resolutions:

“To commend patriotic Northerners and indeed all Nigerians who are cooperating and supporting this government in its bid to provide solutions to the nation’s problems despite the incitement by some unscrupulous politicians who are bent on inciting the masses against the government.

“That the world economy is currently not in the best of shape due to the Russian-Ukrainian and the Israeli-Palestinian wars, etc. We observed that the Nigerian economy is not exempted from this global economic problem.

“The current administration of President Bola Ahmed Tinubu inherited a lot of problems from the past administration of Muhammadu Buhari, which it is currently trying to address. For instance, the Kwara State Governor AbdulRahman AbdulRazaq and chairman of the Nigeria Governors’ Forum (NGF) had just revealed that the crude oil the country will be getting in the next six months had been sold in advance by the immediate past administration.

“That the solutions to the problems cannot be instantly solved but in a gradual pattern.

“That Nigerians should show patriotism by cooperating with this administration in its bid to find solutions to the country’s problems such as inflation, corruption, insecurity – banditry and kidnapping that the country is currently facing.”

Ma’aji further alleged that some disgruntled politicians are plotting to organise phantom protests across the country to smear the image of this administration.

He added: “Those disgruntled politicians who are using some clerics through misinformation to issue statements condemning this administration without any good reason should desist forthwith in the interest of our beloved nation.

“We are not averse to any form of legitimate protest to show grievances to the government’s policy or programme, provided it is done in good faith and under the laws of our beloved country, Nigeria. We frown at the idea of sponsoring people to stage fake protests for the financiers to score cheap political mileage by discrediting the current administration.

“We call on all Northerners and indeed all Nigerians to continue to support the current administration in its bid to bring Prosperity to our nation.

“That we Northerners are not against Mr President and this administration. We will continue to support and pray for this administration to succeed.

“That the current administration is just eight months into office. It needs more time to deal with the problems it inherited. So we, the well-meaning Northerners, are praying and positively collaborating with the current administration for it to succeed.”

The Super Eagles players on Thursday night, February 9, observed a minute silence for the four Nigerians who died during their match against South Africa on Wednesday, February 7.

An APC chieftain, Cairo Ojougboh, an Ivory Coast based Nigerian businessman, a serving NYSC member as well as the Deputy Bursar of Kwara State University (KWASU), Malete, Alhaji Ayuba Abdullahi, all died on Wednesday night, Feb. 7, while watching the semi-finals between Nigeria and South Africa in the ongoing AFCON.

The players gathered and observed a minute silence in honour of the deceased Nigerians and went on to say prayers for the repose of their souls and for God to comfort their families.

The Nigerian National Petroleum Company Limited (NNPCL) has stated that there is no plan for an imminent increase in the cost of Premium Motor Spirit (PMS) known as petrol.

A statement by Olufemi Soneye, the chief corporate communications officer of the company, cautioned motorists against panic-buying.

The statement read, “NNPC Ltd. urges Nigerians to disregard unfounded rumours and assures them that there are no plans for an upward review of the PMS price.
“Motorists nationwide are advised against engaging in panic buying, as there is presently ample availability of PMS across the country.”

It had been reported on Monday that there were long queues in some filling stations in Lagos while residents of the city expressed fears that there might be a fresh scarcity of the product.

The long queues were noticeable at filling stations along the Ikorodu Road and Total Filling Station located at the Mobolaji Bank Anthony Way where the queues had led to traffic jams around the Ikeja axis of the state.

SaharaReporters had days ago reported that the NNPCL said the scarcity of fuel in some filling stations in some Nigerian cities, particularly in Lagos is caused by distribution issues.

It was gathered that NNPCL mega filling stations along the Lagos-Ibadan Expressway did not dispense fuel as of Monday evening.

On Tuesday morning, the NNPCL spokesperson, Femi Soneye, dismissed insinuations of fresh fuel scarcity, saying that the NNPCL did not have supply issues and that its products remained readily available.

Soneye, who added that the distribution issue in some areas had been resolved, was quoted as saying, “We are pleased to confirm that there are no supply issues, and our products remain readily available.

“The recent tightness experienced in certain areas was due to a brief distribution issue in Lagos, which has since been resolved.”

Also, the National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, said he was aware of the queues in some filling stations in Lagos, but said the queues might be due to panic-buying on the part of customers.

Team Nigeria claimed 11 medals at the just-concluded African Senior Weightlifting Championship in Ismaila, Egypt and earned the praises of Nigeria Weightlifting Federation president Ibrahim Abdul.

Joy Eze rounded off a magnificent performance for Team Nigeria on Wednesday after she scooped all the three gold medals available in the 71kg women’s category. Her three gold haul made it 11 medals for Team Nigeria consisting of six gold and five silver medals.

Eze lifted 104 kg in snatch to win gold and added another gold in clean and jerk with a lift of 130kg, before the weightlifter claimed her third gold by having the highest total lift (234kg).

Eze’s three gold moved her up to the top 12 in the Olympic qualification ranking in her weight class. Rafiat Lawal, Adijat Olarinoye and Umoafia Edidiong are closing in on Olympic Games tickets too with their performances in Ismaila and only the top 10-ranked will make it to the Olympic Games in Paris, France come July this year.

Lawal claimed three gold medals in the 59kg while Olarinoye bagged three silver medals in the same weight class and Edidiong picked up two silver medals in the men’s 73kg.

NWF boss Abdul praised the four weightlifters who boosted their chances of picking Olympic tickets and vowed to chase a record outing at the African Games in Ghana.

“It was a commendable performance from the four weightlifters. They have done us proud and we are all glad with what they have achieved in Egypt,” he said.

“We know the lifters are capable of doing more and we expect them to go full throttle at the African Games with the rest of their colleagues. We expect them to give the signal at the African Games before going to Thailand to complete the job.

“We shall proceed to camp almost immediately as they return from Egypt because the African Games is around the corner and we want to ensure we perform better than we have done in previous editions.”

The Nigerian lifters will participate in another Olympic Games qualifier next month when the International Weightlifting Federation World Cup holds from March 31 to April 11 in Phuket, Thailand, which will be the last qualifier before the Olympics.

As a temporary response to the nation’s growing food crisis and the rising price of commodities, President Bola Tinubu, on Thursday, ordered the immediate release of more than 102,000 metric tons of various grain types from the Strategic Reserve and the Rice Millers Association of Nigeria.

This was the government warned that those hoarding foodstuffs would be dealt with.

The Minister of Information and National Orientation, Mohammed Idris, revealed this to State House Correspondents after the final leg of three meetings of the Special Presidential Committee on Emergency Food Intervention at the Aso Rock Villa, Abuja, on Thursday.

Deliberations began on Tuesday after angry youths and women took to the streets of Minna, the Niger State capital and Kano to protest what they described as the rising cost of living in the country. Similar protests also erupted in Ondo State.

After the first meeting, the Federal Government, said it was “very concerned about what Nigerians are going through, especially with what happened in Minna.”

It said it was “taking some action to ensure that Nigerians have some relief in terms of the availability of food on the table.”

Divulging arrangements agreed upon at the final session, Idris said, “The first one is that the Ministry of Agriculture and Food Security has been directed to release about 42,000 metric tons of maize, millet, garri and other commodities in their strategic reserve so that these items will be made available to Nigerians; 42,000 metric tons immediately.

“The second one is that we have held meetings with the Rice Millers Association of Nigeria. Those who are responsible for producing this rice and we have asked them to open up their stores.

“They’ve told us they can guarantee about 60,000 metric tons of rice. This will be made available and we know that is enough to take Nigerians the next month to six weeks, perhaps up to two months.”

Idris revealed that the administration would resort to importing necessary supplies to augment shortages observed after the release of the food items.

“Now, the third item is that government is also looking at the possibility, if it becomes necessary, as an interim measure in the short run also to import some of these commodities,” he revealed

The goal of the assorted measures, Idris said, was “to crash the cost of these food items. And these are measures that will happen immediately.”

He said, “42,000 metric tons from the strategic government reserve, about 60,000 metric tons of rice from the Rice Millers Association, they have them in all their storage facilities and government, in conjunction with them after this exhaustive meeting, has directed that they also bring this out immediately so that the price of rice will come down significantly.

“These are all measures taken to bring down the cost of food items immediately.”

The FG also revealed plans to inject a yet-to-be-disclosed amount of capital into dry-season farming to ensure a year-round food supply.

Idris explained: “There is a directive to the Federal Ministry of Agriculture and Food Security to invest massively in conjunction with Nigerian farmers and other producers so that we can have a better season coming up shortly.

“We all know that dry season farming is happening, which will take effect very shortly. And that, we hope, will also contribute because as soon as the dry season farming gets underway, the government hopes that food prices will also come down.”

The Minister, who declined to mention specifics, affirmed the FG’s readiness to take punitive measures against those he called food “hoarders.”

Lamenting what he insinuated to be a man-made food crisis, Idris said, “Now the government is also looking at all those hoarding these commodities because these commodities are available in the stores of many traders.

“Government is appealing to them, that they should open up these stores, make these commodities available in the interest of our nation. There is no point when the whole country is looking for this food; you are locking up these products so that you make more money and then Nigerians suffer.”

He threatened those hoarding grains, saying the Federal Government would not fold its arms and watch matters deteriorate.

“You cannot hold the nation to ransom. You cannot hoard these commodities in your stores when we all need them. We are in an emergency and we’ll take emergency measures to make sure that this food is available to Nigerians.

“We know where all these major traders are. We know where all these major stores are.

“And if they don’t respond by bringing these commodities to the market, the government will take appropriate measures to ensure that these products are made available to Nigerians,” he said.

Asked about the stipulated selling price of these commodities, the minister replied, “Yes, the government has looked at that and what I can tell you is that whatever the government will do to ensure that this food is made available to Nigerians at an affordable cost, the government will do that.

“The President has directed that whatever it will take, food will be available to Nigerians at a cost that is also very reasonable. And that is what the summary of this meeting entails.”

Meanwhile, there was a fresh protest in Kano State on Thursday over high cost of food items and other essential commodities.

Hundreds of Kano residents on Thursday evening took to the streets around Kurna, Rigiyar Lemu and Bachirawa areas along the popular Katsina Road, lamented that the economic situation was getting worse day by day.

Speaking in Hausa language on behalf of the protesters, Usman Bello of Rijiyan Lemo, said the harsh economic situation had caused untold hardship for masses in the state.

“We masses voted for President Bola Ahmed Tinubu, it would not be good of him not to listen to our complaints and address the pathetic economic situation we were facing.

“To pretend that all is well is dangerous; those people closer to Mr. President should tell him the truth, that the masses are suffering and dying of hunger,” he said.

The World Bank has listed seven Nigerian states that risk having severe food crisis because high levels of insecurity and armed conflicts.

The listed states are Borno, Adamawa, Kaduna, Katsina, Yobe, Sokoto, and Zamfara.

The World bank which said this in its latest Food Security report also maintained that most areas in West and Central Africa would remain minimally food insecure until May 2024.

The report said: “It is projected that most areas in West and Central Africa will remain minimally food insecure until May 2024, with some being categorised as Stressed IPC 2. Nigeria (far north of Adamawa, Borno, Kaduna, Katsina, Sokoto, Yobe, Zamfara states) will be at crisis food security levels, mostly because of persistent insecurity and armed conflict and deteriorating livelihoods.”

It also said African countries such as Burkina Faso, Chad, and Niger would experience different levels of food insecurity.

Already, there have been outcries and protests in Nigeria over the current food crisis. But the Federal Government has moved in to combat the crisis.

The Minister of Information and National Orientation, Mohammed Idris, on Thursday, announced President Bola Tinubu had directed the Ministry of Agriculture and Food Security to release about 42,000 metric tonnes of grain including maize, millet and garri. The Rice Millers Association of Nigeria also committed to immediately release over 60,000 metric tonnes of rice to the public.

According to Idris, they were immediate measures taken by the FG to ameliorate the hardships faced faced by Nigerian over the high prices of food in the market.

“These will be made available and we know that that is enough to take Nigeria in the next couple of weeks. One month, six weeks, perhaps up to two months.

“Now the whole idea of this is to crush the cost of these food items. And these are measures that will happen immediately.
“Now, the third item is that government is also looking at the possibility, if it becomes absolutely necessary and as an interim measure, to also import some of these commodities immediately so that these commodities can be made available to Nigerians,” he said.

He also said Government was appealing to those hoarding food items to make them available.

He said: “Government of course is also looking at all those who are hoarding these commodities, because actually, these commodities are available in the stores of many traders.

“Government is appealing to them that they should open up these doors and make these commodities available in the interest of our nation.

“There is no point when the whole country is looking for this food you are locking up these products where you make more money and then Nigerians suffer. Of course, government will not fold its arms.

“If they don’t respond by bringing these commodities to the market, government will take appropriate measures to ensure that these products are made available to Nigerians.”

At last, the Dangote Petroleum Refinery has begun production with the receipt of about six million barrels of crude oil. What a pivotal moment for Nigeria!  It’s the triumph of the resilience of one man, Alhaji Aliko Dangote, whose audacity to dream big, coupled with his unparalleled determination and unrelenting doggedness in bringing those dreams to fruition, has seen him climb every mountain and cross every ocean on his path to achieve the seemingly impossible.  

It is only a man with a steely determination that will not break under the strain of massive cost overruns, an unforgiving, hostile business climate, policy inconsistencies, serial currency devaluations and currently the worst performing currency in Africa, forex scarcity, multiple taxation, high cost of capital, etc. that could pull this off.  Nigeria will defeat you, if you are not made of steel.  

That Dangote was able to complete his petroleum refinery is a testament to his superman capacity to ride the waves no matter how high they may be. Many of us continue to marvel at this prodigious project, no matter what a few naysayers have to say.

You see, this country would not have been in this precarious state if we had more of such projects driven by supermen like Aliko Dangote. Again, Nigeria would have been the pride of Africa, living up to its potential and promise as the beacon of hope and the powerhouse of the black race if such men were in political leadership.

Our incompetent and inept leaders have failed Africa. All they know how to do is loot the commonwealth and display it in our faces. They have become the biggest obstacle to the continent’s progress, the ones underdeveloping Africa from within its borders. So, for the richest man in Africa and a few others to pick up the gauntlet, doing what Nigeria as a country has failed to do for Africa, then the black race deserves to be applauded. And the world is taking notice.  

At the last count, the Dangote refinery located in Ibeju-Lekki, Lagos, covering a land area of approximately 2,635 hectares, had gulped over $19.5billion. You would agree with me that, that is a prodigious figure. Not often do we hear of such figures ploughed into projects even in the Western world, let alone in Africa. At best, it is the type of project that multi-national consortia come together to undertake. But in this instance, an individual from one of the most challenged countries in the world, conceived and executed it, in spite of the very hostile business environment that is squeezing investors out of business. This, to me, is a feat worth celebrating. 

It is the world’s largest single-train petroleum refinery, with a capacity to process 650,000 barrels per day with a 900 KTPA Polypropylene Plant. It is a thing of pride that a project of this magnitude is located in Nigeria. But even more enthralling is that it was conceived and built by an individual in a country where bad government policies by inept leaders remain the bane of doing business. Policies that are more often than not driven by malice. At full production capacity, the refinery can meet 100% of the Nigerian requirements of all refined products and also have surplus for export. How many of us truly understand what that means? Moving from being a net import-dependent country for all our petroleum needs to exporting locally refined products? Can you imagine the foreign exchange this will save for Nigeria?

This surely is a game changer for our bleeding national economy long crippled by forex shortages and organised oil theft with all the imprimatur of officialdom.

The country’s four refineries have been grounded for several years and may remain so, not because they cannot be fixed in a realistic sense but because those in charge of making them work are the ones sabotaging all efforts to fix them. The state-owned refineries have become a cesspool of corruption and organised crime. Where hundreds of millions of dollars regularly voted for Turnaround Maintenance, TAM, have only served to enrich a few fat cats in the Nigerian National Petroleum Company Limited and their collaborators in government. That is the sad situation Nigeria finds itself in. 

And for those who may not know, crude oil export is the source of well over 80% of Nigeria’s foreign exchange earnings. Now, if we can’t protect our production volume from organised syndicates who have perfected the art of stealing the crude from the pipelines before it gets to the terminals for export, how would we earn enough forex for the Central Bank of Nigeria (CBN) to make available to importers of other goods and services? The bigger questions are: how do these syndicates get the stolen products to the international market ahead of Nigeria? Who exactly are the members of these syndicates? Why has no one been named publicly? Who is covering up for them in government? Surely, someone or some people who are high up in the government know/s something.

Two years ago, the country spent 40% of the foreign exchange it earned from the little it was able to generate from export earnings on the importation of petroleum products as well as petrochemicals which put a lot of pressure on the exchange rate, according to the former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele who did everything he could to help the Dangote refinery come to fruition. Yes, you heard me clearly, he had said 40% of all forex earnings went into the importation of petroleum products. This has created a vicious circle of perennial shortages of forex for other import-dependent sectors.

In the land of my fathers, there is a saying: “A nation that cannot feed itself is not free.”

So, one can begin to understand the relief the Dangote refinery is set to bring to Nigeria. Officially going into production of refined petroleum products is an incredibly important milestone that should be celebrated.  It is the last chapter of a checkered journey that began with the acquisition of the Port Harcourt and Kaduna refineries in 2007. I think a brief history will suffice here if for nothing but to refresh peoples’ memories.

In May 2007, the then outgoing Olusegun Obasanjo administration took the bold decision to sell the government’s majority stake in the  Port Harcourt and Kaduna refineries to Bluestar Consortium promoted by Aliko Dangote, Femi Otedola and Transnational Corporation of Nigeria, Transcorp for a whopping $750 million with the Port Harcourt refinery selling for $561 million. It was Nigeria’s largest refinery, a 210,000-barrels-per-day (bpd) facility, while the Kaduna refinery had an installed capacity of 110,000bpd.

That transaction triggered an avalanche of wild criticisms from many ignorant Nigerians and labour unions who sprang into action, doing their utmost, to frustrate the sale. And they did. But today where are we on the matter? Is the country better off than it was then before the sale and subsequent revocation? Where are those who opposed the sale then purely on emotional grounds than the economics of the transaction? They have all been put to shame. And the country is the loser for it. I don’t need to remind anyone of the fights at filling stations, the endless hours wasted in queues, sometimes overnight at petrol stations just to get fuel for our cars.

The two main oil unions in the sector – the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) were up in arms, claiming that the two refineries were wrongly sold by the Bureau of Public Enterprises, alleging that “the sale of the two firms was completely lacking in transparency”. They also stated that no due diligence was carried out and that the Port Harcourt refinery was worth close to US$5 billion, about nine times the amount it was actually sold for. For those who still remember, the sale of the refineries to Bluestar was one of the reasons for the general strike that paralysed the Nigerian economy for four days in June, 2007 during the government of the late Umaru Musa Yar’Adua.

The then NNPC and the Department of Petroleum Resources (DPR) joined the clamour for the transaction to be revoked, claiming that they were  capable of running the refineries  in contrast to Bluestar, which had no actual experience of operating refineries. Really? The surprising thing was that so many Nigerians were sold on the NNPC narrative. Following Bluestar’s eventual pull out of  the transaction, the then Group Executive Director of the Refineries & Petrochemicals Department at NNPC, Abubakar Lawal Yar’Adua, was reported by THISDAY to have stated that if given the necessary support, the NNPC had the capability to run the refineries efficiently. He forgot to mention that it was years of inefficiency and corruption by NNPC’s management that forced the Obasanjo government to sell the government’s majority equity stake in the refineries in the first place.

Not done, he argued that the solution to the nation’s petroleum shortages would not be found in the sale of the refineries, but in conducting proper turnaround maintenance on them as well as building new ones. The then DPR director, Tony Chukwueke, on his part, said that the nation had not exploited all the models that could ensure that the refineries worked optimally and that Nigeria could invite foreign technical partners to run the refineries, or conduct repairs whenever the need arose. Where is he now? He did not tell us the model that was better than outright sale of the refineries. He just went into a long rigmarole to deceive the nation.

Well, where are we today? Nearly 14 years after Bluestar Consortium pulled out of the transaction and the refineries reverted to NNPC’s (now NNPCL) control, they have become as good as dead wood. They have not produced anything of value to this country, not a pint of petrol, despite the huge sums pumped into their maintenance and associated costs. Who are the gainers and losers in this unholy alliance of individuals against Nigeria? The same entrenched interests at NNPC or NNPCL as it is now known. And of course, the labour unions who prefer their workers earn wages for doing nothing.

Just last December, the Senate signalled its intention to open an investigation into what senators perceived as a sabotage of the federal government’s effort to revive the nation’s refineries, in spite of N11.35 trillion, excluding costs in other currencies, which include $592,976,050.00 dollars, 4,877,068.47 euros, and 3,455,656.93 pounds sterling spent on the renovation of the refineries from 2010 till date, yet they remain unproductive.

Don’t forget that  just recently, the federal government awarded another contract worth a mind-blowing $1.5billion  for the  rehabilitation of the Port Harcourt   refinery  to an Italian Company, Tocnimont SPA, spanning three phases of over 18, 24 and 44 months. Let me ask the frequently asked question on the streets: who did this to our country? Only in Nigeria will you find bizarre rationale for doing stupid things like this. I can bet an arm and a leg that more than half of that $1.5billion will end up in private pockets. Our penchant for inflated cost of contracts will make allegations of corruption in other climes look like petty pick-pockets.

I challenge anyone to do the maths. In 2007, the Port Harcourt and Kaduna refineries were sold for $750 million. In March 2021, nearly 14 years after the sale fell through due to the organised public outcry, the federal government after wasting billions of dollars on several maintenance programmes, awarded a contract for the rehabilitation of the Port Harcourt refinery alone for $1.5 billion.

Fellow Nigerians, may I ask again: who are the losers in all of these? And who are the gainers? Nigeria is a country that gives and keeps on giving. Everyone is milking her but no one wants to feed her. Knowing how these people have consistently scammed this country, I am not enthusiastic that the $1.5 billion for the rehabilitation of the Port Harcourt   refinery will bring about the expected results. It is a complete waste of taxpayers’ money, part of which will be repaid to Afrexim which partly financed the rehabilitation.

Now, with the rehabilitation purportedly nearing completion, NNPCL announced it had begun the search for third-party managers to run the refinery. Instead of spending $1.5 billion on rehabilitating the refinery and now looking for third-party managers to run the place, why didn’t the government just sell the scrap and the buyer or buyers can turn it around with their money, thereby saving that $1.5 billion taxpayers’ money expended on the rehabilitation and  deploying it in other urgent infrastructure needs? No, because those who profit from Nigeria’s failure to function optimally only ask: “What is in it for us.”

It is not a surprise therefore that Dangote decided to build his refinery from scratch. However, the Eureka moment for Nigeria following the commencement of production by the company is tempered by NNPCL’s inability to meet its crude feedstock required to enable uninterrupted production. Interestingly, the visionary Dangote saw it coming and prepared for any eventuality.  The factsheet about the refinery is very impressive. It was designed for 100% Nigerian crude, with a flexibility to be able to also process a large variety of crudes, including many of the African crude grades, some of the Middle Eastern crude grades and U.S. Light Tight Oil.

So I was not surprised when news filtered in that Dangote had purchased two million barrels of West Texas Intermediate (WTI) Midland from the United States-based oil trader, Trafigura Group, for delivery at the end of February. You see, the irony and contradictions of our situation are not for the lily-livered. And again, I asked, who did this to us? 

Here is a nation blessed with enormous crude oil resources, once a major producer of crude oil, but imports all its refined petroleum needs because it pays some corrupt officials for the country to export jobs overseas rather than add value by exporting refined petroleum products. And here is a country where an individual just built the largest single-train refinery in the world of 650,000 barrels per day capacity, now having to import feedstock from the United States of America or elsewhere because of NNPCL’s inability to supply it with enough crude for refining.   

As I have been made to understand, only a minute fraction (if any) of Nigeria’s current crude oil output is unencumbered by one loan facility or the other. The repayment of the recent $3.3 billion loan taken by NNPCL from Afrexim on behalf of the federal government to stabilise the failing naira is guaranteed with 90,000bpd for five years.Then there’s the forward sale agreement entered into by NNPCL with the Lekki Refinery Funding Limited (Project Bison) in September 2021 to supply 300,000bpd of crude oil for the settlement of the balance US$1.036 billion funding received for the financing of the US$2.76 billion investment in the Dangote refinery.

All these, mind you, preclude the fantastically corrupt domestic crude allocation regime operated by NNPCL under its Direct Sale-Direct Purchase (DSDP) arrangement with international oil traders, not to mention the modified carry agreements that the state-run oil firm has with the IOCs, which have all eclipsed Nigeria’s oil exports and shrunk the country’s oil forex flows.

Indeed, a recent review by Dr Jekwe Ozoemene, a Fellow of the Chartered Institute of Bankers of Nigeria, of NNPCL’s 2022 audited accounts showed that the Group has total contract liabilities on forward sale agreements – Projects Falcon, Santolina, Panther and Bison, and NLNG SPDC, NLNG TEPNG and DSDP customers – of N2.615 trillion. Forward sales – implying crude oil commitments for which NNPCL has received value but is yet to deliver crude oil. Is it any wonder that NNPCL, a minority shareholder in the Dangote refinery, cannot supply the crude feedstock needed by the plant?

Meanwhile, can anyone point to what the last administration did with the massive borrowing it embarked on? This administration has now begun its borrowing to save the naira.

Just recently, the operatives of the Economic and Financial Crimes Commission (EFCC), raided the Lagos Head office of the Dangote Group of Companies in search of documents relating to their purchase of dollars in the last 10 years. Please can anyone tell me what this was about? What did they need such documents for?  Why didn’t EFCC just ask the CBN for the documents since they were so critical to its investigation? I find it curious and laughable that any serious crime-fighting body would ask the person they are investigating to come with the evidence of their guilt. Where in the world do you ask someone you are investigating to give you evidence to nail him? Does it make any sense?

Before that raid, there had been whispers that this government was not well disposed to Dangote for whatever reason. Then it found a nebulous pretext to launch its harassment of his companies.

Strangely, after storming the companies’ headquarters and disrupting workflow for hours, the operatives left without taking any document.

But this same government did not see the need to launch an investigation into all those who got forex at concessionary rates to perform Muslim hajj or Christian pilgrimage to Jerusalem.

As I have already stated, it was all about intimidation and harassment, to settle old scores. Nothing more, nothing less.

President Bola Ahmed Tinubu’s EFCC must be condemned for the gangster-like manner it raided the Dangote head office. For sure, Dangote or his companies are not above the law, so if there is any need to launch an inquiry into any suspicious activity, please, do so. But   it must be done in accordance with due process and civilised standards.

The manner by which EFCC’s operatives stormed the Dangote head office sends the wrong signals and lends credence to the word on the streets that the president has an axe to grind with Dangote. As far as 1 am concerned, it did grave damage to the elusive quest for foreign investors. Those investors this government is looking for all over the world would pause and think twice before venturing here. If the country’s biggest investor, the largest employer of labour in the private sector, owning one of the largest listed companies on the Nigerian Exchange group and one of the highest taxpayers in the country and major contributor to its GDP, can be so harassed by people in government positions who have never earned anything by enterprise, then it makes sense for other investors to keep away.

In other climes, where leaders have sense, they would do everything to protect and support Dangote’s massive investments in the economy, rather than hound him. Maybe, I should state here without mincing words: It has got to the point where the Dangote Group of Companies can be classified as a national security asset with business presence in cement, fertilizer, sugar, salt, petroleum refinery, rice production, construction, port operations, automotive, real estate, mining, transportation,  logistics, agriculture, etc. Indeed, what TATA is to India is what Dangote has become to Nigeria. It is Nigeria’s own answer to India’s TATA. It projects Nigeria and Africa to the world positively regardless of our  bad leaders.

The late Lebanese-American poet and philosopher, Kahlil Gibran captured the Nigerian tragedy so succinctly in his poem, The Garden of The Prophet:

“Pity the nation that is full of beliefs and empty of religion.
Pity the nation that wears a cloth it does not weave
and eats a bread it does not harvest.

Pity the nation that acclaims the bully as hero, and that deems the glittering conqueror bountiful.

Pity a nation that despises a passion in its dream, yet submits in its awakening.
Pity the nation that raises not its voice save when it walks in a funeral, boasts not except among its ruins, and will rebel not save when its neck is laid between the sword and the block.
Pity the nation whose statesman is a fox, whose philosopher is a juggler, and whose art is the art of patching and mimicking
Pity the nation that welcomes its new ruler with trumpeting,
and farewells him with hooting, only to welcome another with trumpeting again.

Pity the nation whose sages are dumb with years and whose strongmen are yet in the cradle.

Pity the nation divided into fragments each fragment deeming itself a nation.”

Indeed, this country deserves to be pitied.