Scores of demonstrators took to the streets of Abuja on Monday, demanding the immediate dismissal of the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL), Mele Kyari, over the ongoing fuel scarcity that has plagued the nation.
The protest comes at a time when the NNPCL has admitted that its considerable debt to fuel suppliers is jeopardizing the sustainability of fuel supplies across the country.
The corporation has highlighted that the financial burden is severely impacting its operations and could further destabilize the already fragile fuel supply chain.
Human rights lawyer, Femi Falana, who was recently a guest on Channels Television’s Politics Today, also voiced concerns regarding the rising cost of living, the arbitrary hike in petrol prices, and the resulting scarcity.
Falana emphasized the need to uncover what he described as the “monumental fraud” in Nigeria’s fuel importation process.
During the protest, demonstrators chanted solidarity songs and displayed banners with messages such as “We are tired of fuel scarcity and stories on why refineries are not working,” “No direction under Kyari,” and “We want accountability in the affairs of NNPCL.”
The protesters decried what they viewed as a dismal performance under Kyari’s leadership, calling for greater transparency and accountability.
The Convener of the Coalition of Concerned Civil Society Organizations, Aminu Abbas, addressed the media at Unity Fountain after the rally, questioning why a country as rich in oil resources as Nigeria continues to face such severe fuel scarcity.
Abbas called for immediate action to address the ongoing crisis and ensure that the country’s refineries are functioning efficiently.
He said, “To President Ahmed Bola Tinubu and all those in positions of power, we say the time to act is now. Show us that you stand with the people, not those who profit from our misery. Mr Kyari must be shown the way out, and the NNPCL must be reformed to serve the interests of all Nigerians. We will not be silenced.
“The fuel scarcity we endure today is not just a mere inconvenience; it is a calculated perpetuation of suffering. Under Mr Kyari’s leadership, the situation has gone from bad to worse, with no end in sight. What has he done to alleviate this crisis? It is clear he seems intent on maintaining a status quo that benefits only a select few while the masses suffer.
“Why do we, the people, have to endure endless queues, inflated prices, and the daily uncertainty of whether we can fuel our vehicles or power our homes? The answer lies in the gross incompetence and mismanagement that have become the hallmarks of Mr. Kyari’s leadership.”
The National Assembly Joint Committee on Electoral Matters has put forward a proposal to reduce the salaries of legislators and executive members by 30% and 40%, respectively.
This proposal was discussed on Monday during an interactive session led by Senator Sharafadeen Alli, Chairman of the Senate Committee on Electoral Matters.
The session included members of the judiciary and representatives from political parties, focusing on the review and amendment of the Electoral Act 2022.
The proposed salary cuts aim to reduce government expenditure and are part of a broader discussion on cost-saving measures.
Naija News reports that the committee also reviewed other proposals, including conducting all elections; presidential, National Assembly, governorship, and State Houses of Assembly, on a single day to enhance efficiency and reduce costs.
Additionally, political parties suggested linking voter registration to the National Identity Number (NIN) for improved security and cost efficiency.
They also proposed that the appointment of the Independent National Electoral Commission (INEC) chairman should no longer be the responsibility of the executive branch but rather be an open process advertised to interested candidates.
Senator Alli assured that the joint committee would continue to engage with INEC and the public to ensure that future elections are conducted smoothly and with minimal disruptions.
Several protesters who took part in the August 1-10 #EndBadGovernance demonstrations have been remanded in Kuje Correctional Centre after being charged with treason by the Federal Government.
Justice Emeka Nwite of the Federal High Court in Abuja ordered the protesters’ remand pending the hearing and ruling on their bail application, which is scheduled for September 11, 2024.
The decision came after the accused pleaded not guilty to the six-count charge, which includes allegations of terrorism.
The charges, which have sparked significant concern among human rights advocates, have brought attention to the government’s handling of the protests, which were primarily focused on issues such as hunger and misgovernance.
More details are expected to emerge as the case progresses, with the next court session set to determine the immediate future of the accused protesters.
Police place N20m bounty on Andrew Wynne, Lucky Ehims wanted over attempt to ‘overthrow’ Tinubu
AFOLABI
British national, Andrew Wynne and a Nigerian, Lucky Ehims were declared wanted by the Nigerian security agents, Police on Monday placed N20m (Twenty Million Naira) bounty on them.
Police in a statement on Monday afternoon said a reward sum of N10,000,000 awaits any person(s) with information leading to the arrest of British national, Andrew Wynne and a Nigerian, Lucky Ehims .
Vanguard had reported how Police had launched a comprehensive investigation into the activities of a foreign national and subversive elements plotting to undermine the democratically elected government in Nigeria through unconstitutional regime change and orchestrating violence across the country.
Force Public Relations Officer, ACP Muyuwa Adejobi said “Following extensive intelligence gathering and collaboration with other security agencies, nine suspects have been apprehended, who received substantial financial backing from foreign sources to destabilize the country.
“Preliminary findings suggest they orchestrated and funded violent protests, disseminated false information, and engaged in other unlawful activities to create anarchy and justify their illegal plot to overthrow the democratically elected government.
“Investigations have identified a foreign mercenary, Andrew Wynne (also known as Andrew Povich or Drew Povey), a British national, who built a network of sleeper cells to topple the government and plunge the nation into chaos.
“He rented a space at Labour House, Abuja, for an ‘Iva Valley Bookshop’ and established ‘STARS of Nations Schools’ as a cover for his subversive activities.
“Documentary evidence and confessions revealed that Andrew Wynne issued directives, monitored progress, and provided finance and operational guidance to achieve unconstitutional regime change in Nigeria.
“He mobilized and deployed several billions of naira to his Nigerian collaborators, urging them to mobilize the public to violently storm police facilities and military barracks, anticipating a bloodbath that would instigate international condemnation of the Nigerian government.
“These acts are in clear violation of the Terrorism (Prevention) Act 2011 and other relevant laws.
“Since the commencement of investigations, Andrew Wynne has fled the country. He and one of his local coordinators, one Lucky Ehis Obiyan have accordingly been declared wanted and global hunting for them has commenced in connection with this investigation.
“The ten other suspects already apprehended have been arraigned before a competent court of law on Monday, September 2, 2024, for Criminal Conspiracy, Terrorism Financing, Treasonable Felony, Subversion, and Cybercrime.
“They include; Angel Love Innocent (Female), Opaluwa Eleojo Simeon, Michael Tobitoba Adaramoye aka Leni, Suleiman Yakubu, Buhari Lawal, Mosiu Sadiq, Abayomi Adeyemi, Abdulsalam Zubairu (M), Nuradeen Hamis, and Bashir Bello.
“These acts are in clear violation of the Terrorism (Prevention) Act 2011 and other relevant laws
The force also appealed to the public to assist in any useful information that will help their investigations, saying if Andrew Wynne and Lucky Ehims are seen, they should be arrested and “hand over to the nearest Police Station, or to the office of the Deputy Inspector-General of Police, Department of Force Intelligence, Force Headquarters, Abuja, or call 08035179870, 09133333785, 09133333786. A reward sum of N10,000,000 awaits any person(s) with information leading to the arrest of each of them”.
The Peoples Democratic Party (PDP), on Monday, said that it has written a letter to Minister of Federal Capital Territory (FCT), Nyesom Wike, to appear before the recently constituted Disciplinary Committee of the party to answer petitions against him over alleged anti-party activities.
The party also described as disappointing Wike’s recent threat of setting political fire in states controlled by PDP governors who have declared support for their Rivers State counterpart, Siminalayi Fubara.
Deputy national publicity secretary of PDP, Ibrahim Abdullahi, who who disclosed this on Channels TV’s breakfast show, ‘Sunrise Daily’, said Wike should have been able to manage his words carefully, adding that the party does not support his comments.
Recall that the PDP recently inaugurated a Disciplinary Committee headed by former minister of foreign affairs, High Chief Tom Ikimi.
But, shortly after the committee’s inauguration, former national vice chairman of PDP and a member of the committee, Chief Bode George, a known Wike ally, resigned from the committee claiming that it was lopsided.
However, Wike had over the weekend threatened to cause political crisis in the respective states of the governors who decide to support Fubara against him over control of the River State PDP structure.
Recall that PDP Governors’ Forum had during their recent meeting in Jalingo, the Taraba State capital, declared support for Fubara, who has been having a running political battle with the minister.
But, addressing the PDP stakeholders during the party’s state congress in Port Harcourt on Saturday, Wike said: “Let me assure you, not while we live, will anybody take away the PDP structure from us.
“Let me tell you people; I hear that there are some governors who said they will take away the structure and give to somebody. I pity those governors because I will put fire in their states.
“When God has given you peace, you said you don’t want peace; whatever you see, you take.”
Reacting, however, the deputy national publicity secretary of the party disclosed that Wike is one of those whom party members have written petitions against for alleged anti-party activities, adding that the committee “has written him a letter inviting him over,” to appear before them.
“We have received petitions with regards to anti-party on those sabotaging the party all through the primaries leading up to where we are today. Those petitions have been aggregated across the country.”
When asked specifically about petitions against Wike, he revealed that party members felt Wike should not have gotten this far still as a member of the party.
He added, “Nyesom Wike is one of the persons expected to face that committee which is headed by no less a person than High Chief Tom Ikimi.”
He said the current party leadership should be given credit for “being able to navigate the waters by not sanctioning people without giving them an opportunity of fair hearing” as against what happened under the immediate-past national chairman, Senator Iyorchia Ayu.
On the recent threat by Wike against governors over the River crisis, Abdullahi said: “He (Wike) was referring to something and it was clear for everybody to see that he was referring to the governor of Bauchi State over his interference in the congress in the determination of the congress in Rivers State. I don’t know if Wike will be fair to himself if he expects the governor of Bauchi, who is the chairman of the governors forum and the leader of the PDP going forward to keep quiet in the issues affecting Rivers State because that is one of our states and we worked so hard to get that state. Wike should have been able to manage his words carefully.
“It was a very disappointing remark, we were not expecting him to say that and we are not with him on that.”
When asked if the party was on the side of Bauchi State governor on the matter, he said, “We are with Wike and everybody. What we are saying is that that is a very bad statement for Wike to make and we are not in support of it.”
On resolving the crisis in the party, he said PDP has handled more delicate issues in the past, adding that the current impasse is “one of them and we will go past it.”
The Deputy National Spokesman of the Peoples Democratic Party (PDP), Ibrahim Abdullahi, has said the three leading opposition figures in Nigeria are discussing the possibility of a merger to salvage Nigerians from hunger and widespread insecurity ahead of the 2027 presidential election.
Abdullahi made this statement on Channels Television’s Sunrise Daily programme on Monday.
According to him, the three opposition candidates in the last elections—PDP’s Atiku Abubakar, Labour Party’s Peter Obi, and Rabiu Kwankwaso of the New Nigeria People’s Party (NNPP)—would put personal interests aside and form a formidable alliance to defeat the ruling All Progressives Congress (APC) in 2027 and salvage Nigerians from hunger.
He said that had the party’s past leadership managed differences and party conflicts well, high-ranking chieftains like former Rivers State Governor Nyesom Wike, Kwankwaso, and Obi would still be full-blooded members of the PDP, and the party would have defeated Bola Tinubu of the All Progressives Congress (APC) in the last election.
“We’ve lost Kwankwaso, we’ve lost Peter Obi, all of these people; imagine if they were in the party, we would have won the elections.
“This APC said they defeated us with one million plus (votes); just one of these names that I mentioned would have covered that gap for us, and we would have been in power today, and certainly Nigerians would not have been confronted with this despair and despondency in the land,” he said.
The President Bola Tinubu-led administration is pushing for a death penalty for ten #EndBadGovernance protesters.
The government accused the protesters of treason, a capital offence punishable by death.
This was contained in a Court document with file number FHC/ABJ/CR/454/2024, indicating the Tinubu regime is seeking death penalty for the protesters.
The arrested protesters include:
Michael Tobiloba Adaramoye
Adeyemi Abiodun Abayomi
Suleiman Yakubu
Opaluwa Eleojo Simon
Angel Love Innocent
Buhari Lawal
Mosiu Sadiq
Bashir Bello
Nuradeen Khamis
Abdulsalam Zubairu.
Since the end of the nationwide protests against widespread hardship and insecurity in the country last month, a crackdown on those who participated in the public demonstration by security agencies has been the order of the day.
Hundreds of people have been arrested, including minors, for their alleged involvement in the protest. Many of the arrested persons are being detained without any arraignment.
Critics and human rights organisations have expressed their revulsion at the repressive behaviour of the government, saying the development is deeply disturbing.
Renowned human rights lawyer, Femi Falana, has demanded an investigation into the alleged “importation scam” surrounding petrol in Nigeria.
During an appearance on Channels Television’s Sunday Politics program, Falana emphasized the need to probe the ongoing issues related to fuel importation.
He criticized the ongoing inquiries in the National Assembly, labeling them as insufficient.
He said, “It is high time the importation scam was investigated. I am not talking of the joke that is going on in the National Assembly. The media must help, civil society organisations must help to expose the fraud.”
Recent reports have linked a $6 billion debt owed by the Nigerian National Petroleum Company Limited (NNPCL) to fuel suppliers as a contributing factor to the worsening petrol scarcity in the country.
In a rare admission, the NNPCL acknowledged on Sunday the “significant debt to petrol suppliers,” warning that this debt threatens the sustainability of fuel supply in Nigeria.
“Once the government begins to speak about affordability and sustainanbility in response to growing queues at filling stations, there are problems,” Falana pointed out.
The Senior Advocate of Nigeria also criticized the government for a lack of transparency regarding fuel subsidies.
He questioned the logic behind spending “$2.9 billion to fix the refineries” while the dates for their resumption continue to be postponed.
Falana warned that he would take legal action against those responsible for the ongoing delays in the rehabilitation of state-owned refineries if another postponement is announced.
Some prominent members of the Peoples Democratic Party have challenged the former Governor of Rivers State and current Minister of the Federal Capital Territory, Nyesom Wike, asserting that he cannot dismantle the party.
Wike, while speaking at the PDP secretariat in Port Harcourt, the Rivers State capital, on Saturday during the party’s state congress, warned PDP governors to stay clear of the party’s affairs in Rivers, threatening to “put fire in their states.”
He stated, “Let me assure all of you, not while we live will anybody take away the structure of the PDP from us. But let me tell people, I hear some governors who say they will take over the structure and give back to somebody.
“I pity those governors because I will put fire in their states. When God has given you peace, you say you don’t want peace – anything you see you take.”
Wike’s comments come after the PDP Governors’ Forum, through its Chairman Bala Mohammed, called for a review of the party congress results to restore incumbent Governor Siminalayi Fubara’s leadership during their convention in Taraba State on August 23.
Prelude to the Taraba meeting, governance in Rivers State had been in disarray due to a clash of interest between Wike and Governor Fubara, both PDP members.
This dispute over party control ripped the state House of Assembly into two, with two Speakers loyal to Wike and his successor Fubara.
Attempts by President Bola Tinubu and other prominent figures to mediate between the two factions have failed, with both groups refusing to sheathe their swords.
In an exclusive interview with The PUNCH on Sunday, PDP Deputy National Publicity Secretary Ibrahim Abdullahi remarked that Wike’s comments posed no threat to the PDP, which he said had withstood over 25 years of more severe challenges.
“Those were his entitled personal opinions at most. They don’t constitute threats to the PDP, which has survived even worse machinations 25 years down the road. No single individual has the capacity to terminate the life of this party, PDP,” Abdullahi stated.
Meanwhile, the Osun State chapter of the PDP on Sunday urged Wike to face his duty as a minister and stop “threatening” those in support of Fubara.
The Director of Media and Publicity, Osun PDP, Oladele Olabamiji, said Wike’s statement was reckless and irresponsible.
He said, “Wike’s statement is rather a reckless and irresponsible one, to say the least. Governor Fubara is not an outcast. He is a PDP governor. On that premise, it is out of place for Wike to threaten PDP governors for supporting one of their own.
“At the PDP Governors Forum, they can offer help to one of them that needs it. Attacking them for doing that is out of place. We urge PDP governors to protect one of their own. Wike is not the President of Nigeria. He has a job in Abuja. He should face it and stop handing down threat.
“He can do it sometimes and get away with it. But in our case here, he can’t get away with such a reckless statement,” Olabamiji said.
Also, the Rivers State Commissioner for Environment, Sydney Gbara, called on security agencies to invite Wike for questioning following his comments.
Gbara, a former Publicity Secretary of the PDP in Rivers State, said such statements were not expected from an elder statesman like the former governor, pointing out that threatening 13 governors was tantamount to causing a crisis in the country.
“Well I feel that as an elder statesman, nobody will expect that he will make such utterances,” Gbara said.
“So, threatening that you are going to cause crisis in 13 states out of the 36 states in Nigeria means planning to cause crisis in the entire country. That is what it means, security-wise,” Gbara said.
The commissioner said the FCT minister was merely giving false hope to his supporters, especially the defected lawmakers of the state House of Assembly, who have lost their seats.
“In my own view, I only see it as a message of hope to his already disgruntled supporters who he has for over the time made several promises to on what will become their fate in the state, which has never worked out.
“We recall that he promised the former local government chairmen that their tenures would be elongated by six months, today they are no longer in office. The assembly people who he advised to cross the carpet to the APC have lost their seats.
“So, it is just a message of hope so that it won’t look as if they’ve lost out completely. But it will be good if the security agencies prove that they mean well for the country, to step into such utterances and investigate anybody, somebody that has made such kind of utterances because it’s a direct affront to the security of Nigeria.
“When you threaten state governors and you promise them that they will never sleep in their states, you promise them that they will never do governance again all they will face is crisis, it’s a serious issue.”
The commissioner said as supporters of Governor Fubara, they will continue to salute his courage.
“We respect his (Fubara’s) demeanour and we are proud of him that he’s been able to maintain his cool and calm nature. He has been able to display a high level of maturity and a rare virtue of leadership by not being allowed to be cajoled into plunging the state into unnecessary crisis.”
On the claim by Wike that he was in control of the PDP structure in the state, Gbara added, “In Rivers State, when they say being in charge, Governor Fubara is completely in charge, he’s not struggling any structure with anybody. He has the majority of the supporters.
“As for PDP, they already know who the leader is and they all know, we equally know that the congresses that have been held in Rivers State are all under litigation, of which at the appropriate time, the court of competent jurisdiction will take their decisions as to whether this exercises fit the legal term or not.
“For us, we don’t see it as an issue. Rivers people have moved with Governor Fubara and that is where we are. In the end, we know that he will carry the day. The structure of PDP will be given to the right person like it has always been in the state. This time around it will not be different, so we are not bothered at all.”
The PUNCH could not get the Chairman, PDP Governors Forum, Governor Bala Mohammed of Bauchi State, to respond to Wike’s comments as it was learnt that he had travelled abroad.
But the Special Adviser on Media and Publicity to the governor, Mukhtar Gidado, said Mohammed would respond at the appropriate time
“We are studying the development; we have to study it before responding,” he said.
But Bayelsa State Governor, Douye Diri, is hopeful that the crisis rocking the party will be resolved soon.
Diri gave the assurance on Saturday during the PDP state congress in Yenagoa
“The drama at the national level of our party, we are working to resolve it. This party will not go down. No democracy without opposition. The PDP is the main opposition party and it will continue to play its role until it captures power again.”
The Special Adviser (Media) to the Oyo State Governor, Sulaimon Olanrewaju, said Governor Seyi Makinde, who is currently on vacation overseas, was not part of the PDP governors who initiated the move to intervene in the Rivers crisis in Taraba.
He therefore said the Oyo State governor was not connected with Wike’s statement directed at the PDP governors.
“The Oyo State Governor Seyi Makinde is not part of the agreement reached by PDP governors while in Adamawa to intervene in the River crisis, as he is currently on vacation. And so, Governor Makinde is not connected with Wike’s statement,” Olanrewaju said.
The Dangote Petroleum Refinery is set to roll out the sale of Premium Motor Spirit, otherwise known as petrol, The PUNCH can report authoritatively.
This is coming a few days after the 650,000-capacity refinery engaged in a test-run of the product.
Industry sources confirmed to our correspondent that the product would hit the market soon.
The sources, who pleaded anonymity, told our correspondent that the government and the Dangote Group were working out modalities for the circulation of the product.
A government source hinted that the sale and distribution of the PMS is being sorted out with the Federal Government.
The source added that only the Nigerian National Petroleum Company Limited would be authorised to sell the Dangote fuel at the moment.
Recall that petrol from the Dangote refinery was supposed to have been out since June, but the refinery battled crude shortage and entered into a brawl with the Nigerian Midstream and Downstream Regulatory Authority, which accused the refinery of producing substandard diesel.
The intervention of the Federal Government that crude oil should be supplied to the refinery in the local currency seems to be yielding the desired result.
The PUNCH also recalls that Dangote and other local refineries have repeatedly accused international oil companies of not selling crude to the local refiners.
Recently, the Federal Government announced that the crude oil supply deal would commence in October
The management of Dangote Group also alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents, saying the local price of crude would continue to increase because the trading arms offered cargoes at $2 to $4 per barrel, above NUPRC official price.
South Africa's billionaire, Johann Rupert, overtakes Dangote as Africa's richest man
The group also alleged that the foreign oil producers seem to be prioritising Asian countries in selling the crude they produce in Nigeria.
The PUNCH also reported last month that the Dangote refinery engaged in an exchange of words with the Nigerian Upstream Petroleum Regulatory Commission over the alleged supply of 29 million barrels of crude oil to the refinery.
The Dangote Group had accused the NUPRC of failing to effectively enforce the Domestic Crude Supply Obligations regulations, saying the refinery had yet to get enough crude locally.
Reacting, the NUPRC debunked the claim, stating that it facilitated the supply of over 29 million barrels of crude oil to Dangote from January to June 2024.
The NUPRC argued that it had facilitated the domestic supply of crude oil to Dangote refinery and other refineries using the monthly production curtailment platform.
But in a swift response, the Dangote Group also denied receiving 29 million barrels of crude from any source.
Spokesperson of the Dangote Group, Anthony Chiejina, said, “We received NUPRC’s statement that they have facilitated the allocation of 29 million barrels of crude oil to the Dangote Petroleum Refinery and Petrochemicals, we would like to thank them for this allocation but at the same time, we wish to let them know that we are yet to receive these cargoes.
“Aside from the term supply we bilaterally negotiated with NNPCL, so far NUPRC has only facilitated the purchase of one crude cargo from a domestic producer. The rest of the cargoes we have processed were purchased from international traders.”
Chiejina added that all the refinery was asking for was for refineries in Nigeria to buy crude directly from the companies that produce it in Nigeria rather than from international middlemen.
Nigerians are hopeful that Dangote will crash the pump price of PMS.
More...
Former Nigerian Vice President, Atiku Abubakar, has called on the administration of President Bola Tinubu to promptly list the Nigerian National Petroleum Corporation Limited (NNPCL) on the stock exchange, as stipulated by the Petroleum Industry Act (PIA).
The Peoples Democratic Party (PDP) Presidential candidate in the 2023 election emphasized that such a move would enhance the company’s profitability, transparency, and corporate governance.
Naija News reports that Atiku’s remarks came in response to NNPCL’s recent decision to transfer the management and operation of the Warri and Kaduna refineries to private operators.
He criticized the NNPCL’s current structure, labeling it a facade, as it still functions as a financial tool for the federal government.
In a statement by his Media Adviser, Paul Ibe, Atiku questioned the consistency of the Tinubu administration’s policies, especially concerning fuel subsidies, and stressed the need for greater transparency in contract awards.
He also pointed out that past concessions had failed due to a lack of transparency and investor interest.
Atiku further suggested that credible bodies like the Bureau of Public Enterprises (BPE) and Standard and Poor’s should be involved in such transactions to ensure their success.
He warned against repeating past mistakes and underscored the importance of clear and transparent processes in privatizing the refineries.
Atiku said, “The NNPCL is supposed to have been listed on the stock exchange in line with the Petroleum Industry Act. This would make the company more profitable and enhance transparency and corporate governance.
“Currently, the NNPCL claims to be private, but this is only a ruse to fool the feeble-minded because it remains the ATM of the Federal Government. Anything short of listing the NNPCL on the stock exchange is nothing but a cosmetic development.
“Former President Olusegun Obasanjo revealed recently that even Shell, one of the world’s wealthiest oil companies, rejected the offer to operate Nigeria’s refineries. This is because the NNPCL has, for years, been a cesspool of endemic corruption.
“This is why over $20bn that has been spent on the refineries in the last 20 years has led to nowhere. It is also curious that a government that is still paying petrol subsidy is trying to make its refineries profitable. Which businessman will invest in a refinery that has been programmed to operate at a loss?
“The manage and operate approach has not always worked. The Manitoba Hydro International, which was handed the Transmission Company of Nigeria led to nowhere. Similarly, Global Steel Limited, which was handed the Ajaokuta Steel Company, was not able to make the facility profitable.
“The contract was questionably revoked by the Umaru Musa Yar’Adua administration, and Nigeria ended up paying Global Steel a compensation of nearly $500m while Ajaokuta remains comatose 17 years later.
“In 2022, Nueoil, an unknown and newly registered company, acquired OVH and Oando filling stations. Barely four months later, NNPCL Retail bought Nueoil and took control of all its assets, including the Oando filling stations.
“Barely eight months later, OVH turned around to take over NNPCL Retail. This convoluted transaction was done in order to hide the corruption involved.
“If this is the approach that the NNPCL wants to use in handing over its refineries to private hands, then Nigerians should not expect any positive development whatsoever.”
[PRESS RELEASE] NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability
Admin![[PRESS RELEASE] NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability](/media/k2/items/cache/d4d9e0ac6b9b3b6aa5b622321bed571f_XS.jpg)
NNPC Ltd has acknowledged recent reports in national newspapers regarding the company's significant debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply.
In line with the Petroleum Industry Act (PIA), NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.
Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd.
A high-level tripartite committee of the three major regulators of the financial services sector has been formed to scrutinise new funds being raised by banks under the ongoing recapitalisation in the banking sector.
Members of the committee are drawn from Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and Nigeria Deposit Insurance Corporation (NDIC).
Three banks – Fidelity Bank Plc, Guaranty Trust Holding Company (GTCO) Plc and Access Holdings Plc – have already concluded their offer periods.
They are expected to submit the key details of funds raised and subscribers to the committee for verification.
Under the guidelines for the recapitalisation exercise, capital verification is a major requirement before the clearance of the allotment proposal and release of the funds to the bank for onward completion of the offer process and addition of the new capital to its capital base.
Multiple sources yesterday confirmed that the three banks that had concluded their offer periods might have raised more than N1 trillion in new capital from existing shareholders and new investors, the first cluster of funds that will go through the tripartite committee’s capital verification.
Investment banking sources said the banking sector’s recapitalisation got off to a good start as investors showed strong appetite for banking shares.
Fidelity Bank started its hybrid offer with a N127.1 billion rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share and a public offer of 10 billion ordinary shares of 50 kobo each at N9.75 per share. It subsequently secured approvals to issue additional 8.2 billion ordinary shares to absorb potential oversubscription.
The rights issue size was doubled with additional 3.2 billion shares while 5.0 billion shares were added to the public offer, bringing the bank’s offer size to N205.45 billion.
GTCO floated a N400.5 billion public offer of 9.0 billion ordinary shares of 50 kobo each at N44.50 per share.
Access Holdings sought to raise N351 billion through a rights issue of 17.773 billion ordinary shares of 50 kobo each to existing shareholders at N19.75 per share.
Sources said the three-party committee would be scrutinising the newly raised funds on five key parameters of basic Know-Your-Customer (KYC) requirements, anti-money laundering and illicit financial flows protocols, anti-terrorism rules, fit-and-proper assessment of a major investor in bank and general compliance with extant rules, including fairness and spread of allotment and inclusivity among others.
Under the KYC requirements, the committee will seek to pinpoint sources of funds by matching names and other personal details such as bank account details, telephone number and address to valid national identity, Bank Verification Number (BVN) and other databank, including the Nigerian Interbank Settlement Systems Limited (NIBSS) BVN validation portal. Corporate applicants are also expected to provide relevant details of incorporation, signatories and funding source.
The committee is expected to “lift the veils” on the sources of funds, by both individual and corporate subscribers, to forestall money laundering, illicit financial flows and proceeds of criminal activities such as kidnapping and banditry.
The funds will be screened against the provisions of the Capital Market Operators Anti-Money Laundering, Combating Terrorism Financing and Proliferation Financing Regulations, 2022, and the Money Laundering-Prevention and Prohibition Act 2022.
A source said the government was determined to ensure that criminal groups and individuals do not use the channel of banking recapitalisation to legitimize proceeds of their criminal activities.
In January 2022 officially declared bandit groups operating in any parts of the country as terrorists with the release of the Federal Government’s Gazette proscribing their existence and restraining any person or group of persons from participating in activities of any of the groups.
The directive also ordered verification of accounts, funds and other assets and confiscation of anything traceable to bandits and terrorists.
The CBN specifically conducts a fit-and-proper assessment for any major investor in the banking industry, in addition to proper notification required by extant capital market rules. CBN’s Rule 4.1 of the Guidelines for Licensing and Regulation of Financial Holding Companies in Nigeria stipulates that where shares amounting to five per cent of a holding company are acquired, there must be a disclosure and specific request for approval of such an investment.
The Nigerian capital market rules set a threshold of five per cent for “material” or significant shareholding, which must be disclosed to the regulatory authorities and the board of the affected company.
The committee will seek to ensure that investors do not bypass “material shareholding” disclosure by splitting their subscriptions or using insiders and related parties, whose shareholdings ultimately belong to the same portfolio of influence.
The Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, assured that the apex capital market regulator has undertaken necessary initiatives to ensure shorter time-to-market, which enables offers to be completed without delay.
Time-to-market refers to the length of time it takes for a company to complete the capital raising process and list its shares on a stock exchange.
In an interview at the weekend, Agama noted that SEC had in June 2024 issued a framework on banking sector recapitalisation programme, which outlines the guidelines and procedures banks are required to follow to raise capital during the recapitalisation period.
He said the guidelines provide a framework for a smooth, transparent, and efficient capital raising process.
According to him, the framework serves as a comprehensive guide for banks and holding companies and market participants on the requirements for capital raising and mergers and acquisitions, while assisting participants to navigate the recapitalisation programme effectively to ensure proper and timely review and approval of the transactions.
“The major highlight of the framework is the requirement for an e-offering platform to be provided by a securities exchange for the capital raising plan, which allows for end-to-end offering, subscription and payment process.
“This is based on our resolution to enhance time-to-market, efficiency, transparency and integrity of the recapitalisation programme. The use of e-offering platform eliminates multiple identities and reduce potential for unclaimed dividends among other benefits.”
Agama outlined that SEC has implemented various initiatives to reduce time to market with the aim of improving the efficiency and attractiveness of the Nigerian capital market, promote economic growth and development.
He said the initiatives include streamlined registration processes, introduction of an electronic filing system and enhanced regulatory frameworks among others.
He noted that shorter time to market can benefit capital market development in several ways like increased liquidity which will lead to faster listing allowing companies to access capital more quickly, increased liquidity in the market and enable companies to allocate resources more efficiently, thereby driving economic growth.
“Shorter time to market will also improve investor confidence because when the listing processes are Efficient, it can enhance investor trust and confidence in the market.
A shorter time to market can make a jurisdiction more attractive to companies and investors, promoting competition and growth,” Agama said.
He pointed out that SEC had in 2019 issued a new rule on electronic public offering (e-PO) system which streamlines the process of issuing new securities.
This he said, allows for faster processing of applications by automating various steps, reducing manual paperwork, and facilitating broader participation adding that the implementation of e-PO is part of a broader effort to make the market more efficient and reduce time to market.
“The Commission has been actively digitizing its operations, including the submission and processing of applications for securities registration, to reduce delays caused by manual processes. This involved the use of electronic platforms for document submissions and approvals, which not only speeds up the process but also improves transparency.
“We have undertaken regulatory reforms aimed at simplifying and streamlining the approval processes. These reforms include updating rules and regulations to reflect current market realities and adopting international best practices that enhance efficiency. For instance, the commission introduced checklist review for registration of fixed income securities, thereby shortening the review and approval timelines.”
Oil giant Nigeria National Petroleum Company Limited (NNPCL) yesterday admitted that its financial strain may affect the sustainability of petrol supply.
Its admittance came on the heels of reports that it is indebted to suppliers to the tune of about $6 billion.
According to the reports, supply agents have been reluctant to make the product available.
The development has forced the oil giant to resort to stock rationing and to prevail on major suppliers not to cut off supply.
No fewer than five vessels meant for Nigeria have refused to discharge fuel to NNPCL due to fear of non-payment, one of the major suppliers said at the weekend.
It was learnt that the $300 million bailout by the Federal Government was not enough for the company to sustain petrol supply nationwide.
Only a few filling stations had the product to dispense to end-users yesterday, forcing desperate motorists to queue for hours in Lagos, Abuja and other cities.
Independent marketers took advantage of the situation to sell a litre of petrol for as high as N950 in some parts of Lagos. It sold for more in other states.
There were indications that the Federal Government was weighing options.
The NNPCL admitted the financial strain in a statement by its Chief Corporate Communications Officer, Olufemi Soneye.
“NNPC Ltd has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers.
“This financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply.
“In line with the Petroleum Industry Act (PIA), NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.
“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” Soneye said.
A source told The Nation that the government had shown concern.
“The Federal Government is already weighing options because of the security implications of acute shortage of petrol in the country.”
On Saturday, Soneye said in the oil trading business, transactions often operate on credit with intermittent outstanding balances, saying there was nothing extraordinary in the outstanding financial liabilities.
He was reacting to reports by Reuters that the uncertainty over the payment of the $6 billion has made most suppliers “hesitant” in bringing in products.
The international news agency had indicated that Afreximbank disbursed $925 million to NNPCL as part of a syndicated $3.3 billion crude oil-backed prepayment facility.
The NNPCL, using supply agents, has been the sole importer of petrol.
The NNPCL is “struggling to supply dealers due to shortage of product at its tanks”, a source confirmed at the weekend.
The source said: “Bulk sales of ships and trucks to depot owners have slowed down in the last five days due to a shortage of supply.
“No bulk sales had happened since Tuesday, which heightened the scarcity in the downstream sector.”
An oil chief who is in the know of the goings-on in the industry linked the fuel queues being experienced in the last eight weeks “largely to the reduction in the supply of products by suppliers who were being owed.”
“I was aware that at some point in mid-August, the Federal Government had to come in by giving money to NNPC to defray some of the outstanding liabilities and boost the confidence of the suppliers to continue.
“However, what was paid was about $300 million which only helped in getting a reprieve for about a week before the queues fully returned,” he said.
Another source said: “Suppliers of petrol are hesitant about supplying new products to the Nigeria National Petroleum Company Limited (NNPCL) due to piling debts.
“At present at least five vessels originally intended for supply to Nigeria have refused to discharge fuel to NNPCL due to fear of payment.
“The situation has increased pressure on the petroleum company which has now resorted to rationing the stock it has while appealing to its long-term suppliers not to halt supplies.”
Reuters said: “Nigeria’s debt to gasoline suppliers has surpassed $6billion – doubling since early April – as state oil firm NNPCL struggles to cover the gap between fixed pump prices and international fuel costs, under rising cost of living.”
The agency said the company had still not paid for some January imports, and the late payments amount to $4 billion to $5 billion.
Under contract terms, NNPCL is meant to pay within 90 days of delivery.
“The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,” one industry source said.
The news agency said: “At least two suppliers already stopped participating in recent tenders after hitting self-imposed debt exposure limits to Nigeria, the sources said, meaning they will not send more gasoline until they receive payments.
“Nigeria’s tenders to buy gasoline in June and July were smaller, traders said. NNPC will import via tender about 850,000 tonnes in July, two of the sources said, down from the typical one million tonnes in previous months.”
Price not sustainable
On August 19, the oil giant claimed the government has been moderating the average retail price of petrol, with a view to ensuring that Nigerians have access to it at a stable price.
The NNPCL said it has been making PMS available for retail distribution at about half of the landing cost under an agreement with the government to safeguard Nigerians from the global fluctuation in oil prices.
Its Chief Financial Officer Umar Ajiya explained that the company has been offsetting the shortfall in landing price and sale price through a reconciliation arrangement between the government and the company.
He said the company has not paid any money to any marketer in the name of petrol subsidy in the last eight to nine years.
While the official pump price of petrol is about N600 per litre, the average landing cost is about N1,200.
The Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, said the NNPC Limited needed to adjust its pricing strategy for imported fuel to curb smuggling.
He also admitted that NNPCL had financial constraints in maintaining and rebuilding Nigeria’s ageing pipelines.
Lokpobiri said the weak pipelines are susceptible to vandalism.
Lokpobiri, who spoke at the 2024 Energy and Labour Summit in Abuja, said selling imported fuel below the landing cost is a key factor fueling smuggling activities.
He said: “If NNPC imports PMS and sells to marketers at perhaps N600 or below, there’s no way that smuggling can stop.
“When smugglers are taking the products outside the country, even if you put all the policemen on the road, they are Nigerians; you and I know the answer.
“These pipelines, some dating back to the 1960s and 1970s, are highly susceptible to vandalism and crude oil theft, which significantly impacts the nation’s oil revenue.
“The old, corroded pipelines, some of which date back to the 1960s and 1970s, are easily vandalised,” Lokpobiri explained.
Atiku: List NNPCL shares on Stock Exchange now
Former Vice President Atiku Abubakar yesterday urged the Federal Government to ensure the immediate listing of NNPCL shares on the stock exchange in line with the Petroleum Industry Act.
He was reacting in a statement yesterday by his media office on the decision of the NNPCL to hand over the Warri and Kaduna refineries to private operators who are expected to manage and operate them.
Atiku emphasised that such previous efforts under government supervision never worked.
The statement reads: “The NNPCL is supposed to have been listed on the stock exchange in line with the Petroleum Industry Act.
“This would make the company more profitable and enhance transparency and corporate governance.”