Editorial
NUPENG: One Threat Too Many
The recent threat by the National Union
of Petroleum and Natural Gas
(NUPENG) to proceed on a nationwide strike over the leadership dispute rocking its sister union, the Independent Petroleum Marketers Association of Nigeria (IPMAN) should be a major cause for worry, in view of the strategic role NUPENG plays in the nation’s economic endeavour.
The reason for the proposed strike, this time, according to NUPENG, is its dissatisfaction with the handling of the legal tussle particularly various judicial pronouncements for which they need the Federal Government’s intervention. Apparently, the question of how their agitation can be seen as lawless or why the process should not be muscled do not seem to bother them.
The Tide is at a loss as to why this should be the reason for a strike. We cannot understand why oil workers would insist on having their way against public peace and progress. That they can go on strike when the police says their trucks should not be used to cause obstruction alone makes their case very pitiable.
We condemn the incessant recourse to strikes by NUPENG and other unions in the oil industry, as it is in no way helpful to the course of promoting conducive and sustainable working environment for its members and the Nigerian public. They cannot allow themselves to be drunk by the powers they perceive to have.
It is worrisome that NUPENG which should be a dependable ally of the Nigerian public is unwittingly acquiring a notoriety on account of its incessant resort to strikes to resolve every matter including internal and administrative disputes that can easily be resolved through arbitration.
The leadership of NUPENG needs to be told in very clear terms that as a vibrant and vital body it cannot continue to take for granted the sensibilities of Nigerians. NUPENG needs to know that its style of activism is taking unionism to a rather ridiculous end, and is capable of robbing off on the goodwill it enjoys.We think it is inappropriate, if not absurd for NUPENG to expect the Federal Government to be involved in an internal matter of a labour union for which the interested parties have sought legal decisions before courts of competent jurisdiction.
It behooves NUPENG, as a partner in the nation’s democratic enterprise to encourage acts that will strengthen the rule of law, rather than support, arm-twisting or blackmailing the Federal Government to engage in illegality. We should avoid the pitfall of an over-bearing influence of a strong industrial union, particularly when the issues involved are not labour related disputes but leadership disagreement among unionists.
Some Nigerians have wondered, and rightly too, if the President of NUPENG, Mr. Achese Igwe actually announced the strike threat, and what the union wishes to demonstrate by baring its fang over nothing. Indeed, some people have asked if the union is still propelled by the age long patriotic fervour or overtaken by ego-tripping? What joy would NUPENG derive from frustrating the economy and making fellow countrymen suffer untold hardship.
The leadership of NUPENG needs to review its strategy of resolving industrial disputes and union matters they consider germane to the performance of their duties, in order not to endanger fair labour relations and frustrate employers and investors in the economy.
The Tide is concerned that some unions in the oil industry are strike mongers; a situation that had made some employers to resort to unfriendly labour practices, including outlawing unionism, casualization of staff and engaging in daily paid jobs. While it is becoming increasingly difficult to condemn such practices, the impact it inflicts on the worker is huge.
We expect that NUPENG and other unions would be concerned about the goodwill and public support they get from Nigerians. We urge them to take more profound look at the rules of engagement on labour relations and workers agitation. Clearly, strike is the last option all over the world and not the fist as these oil workers want to make it.
Editorial
Alleged Budget Padding: Need For Transparency
Senator Abdul Ningi’s revelation about the padding of Nigeria’s 2024 budget with an enormous N3.7
trillion has sent shockwaves throughout the country. Budget padding has unfortunately become a regular occurrence in Nigeria since the return of democracy in 1999. Even former President Olusegun Obasanjo had criticised the National Assembly for their practices of budget bloating during his time in office between 1999 and 2007.
The budget padding scandal started off quietly with a meeting between the Northern Senators Forum and President Bola Tinubu regarding the alleged N3.7 trillion insertion in the 2024 appropriation. Senator Ningi revealed that the budget passed by the Senate for 2024 was N25 trillion, not the N28 trillion being implemented by Tinubu. The discrepancy raised concerns about transparency and accountability in the budgeting process.
Ningi’s interview with the British Broadcasting Corporation (BBC) Hausa Service exposed the deal and sparked concern among the Senate leadership. In the interview, the senator mentioned that the Forum would look into the “additional sum of N3 trillion” and other budget items that were not previously disclosed to the Senate. This caused a push to penalise him, with backing from the Presidency. Many Northern senators chose to distance themselves from Ningi rather than support him.
Apart from the budget lining accusations, Senator Jarigbe Agom-Jarigbe disclosed during the debate on the breach of privilege motion raised by Senator Olamilekan Adeola against Ningi for his interview with the BBC, that senior senators received N500 million each. Additionally, there were claims that the government authorised N2.5 billion for Senate President Godswill Akpabio to procure deep freezers, generators and other items for his constituency as part of empowerment projects.
Budget padding continues to be a persistent challenge within the National Assembly, a fact that has been acknowledged by previous Presidents. In 2016, the chairperson of the House of Representatives Committee on Appropriation, Abdulmumini Jibrin, made accusations against the former House of Representatives Speaker, Hon. Yakubu Dogara and three other officials. Jibrin claimed that they fraudulently took N40 billion from the N100 billion allocated for constituency projects. This scandal caused a major uproar and Jibrin was subsequently removed from his position for exposing the supposed fraud.
Projects worth N480 billion were fraudulently inserted into the budget during the defence sessions that year. In 2019, fraudulent projects worth billions were discovered in Nigeria’s defence budget. Former President Muhammadu Buhari accused the National Assembly of increasing the budget by N90 billion, making it difficult to achieve his government’s Economic Recovery and Growth Plan (ERGP).
Buhari also conveyed his disappointment with the modifications made to the budget by lawmakers in 2022. These changes included a N400 billion increase in federal independent revenue, a reduction in allowances for the Nigerian Police and Navy and the addition of new provisions for National Assembly projects. During the signing of the 2023 Appropriation Bill on January 2, federal lawmakers introduced new projects totalling approximately N770.72 billion and estimates provided by MDAs were raised by around N58.55 billion.
Regrettably, President Tinubu addressed allegations of the budget alterations by asserting that those levying such accusations lacked a comprehensive understanding of budgetary processes. He stressed that the budget figures were meticulously calculated and grounded on a strong basis, while also affirming the senators’ integrity. Tinubu’s comments were intended to elucidate any misconceptions and uphold the transparency of the budgeting procedure. However, the President’s stance on the issue may inadvertently foster corruption among the legislators.
Senator Ningi’s suspension lacks legitimacy and therefore he should be reinstated immediately. Rather, the Senate leadership should address his allegations of budget padding sincerely and stop chasing shadows. If BudgIT’s report is accurate, the Senate must allocate the N3.7trillion towards essential areas like education, health and poverty alleviation. We commend Senators Ningi and Jarigbe for speaking out. We think that an independent panel of inquiry should be established by the Federal Government to investigate their concerns.
The Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) are well aware of their responsibilities and do not need to be instructed before discharging them. They have to apprehend and prosecute all individuals involved in the alleged budget fraud to end the corrupt practice. No one should be exempt from investigation, as there should be no sacred cows in the fight against budget graft.
Our lawmakers must shun this rip-off because it diverts funds from essential sectors to projects that may not serve the public interest. This is detrimental to economic development. It worsens inequality, undermines public trust in government institutions and can lead to inflation by injecting unauthorised funds. It can also reduce citizens’ purchasing power, divert resources from productive investments, hinder progress, perpetuate poverty and facilitate corruption within government agencies.
To prevent budget padding, oversight mechanisms such as the Budget Office of the Federation and the National Assembly should be strengthened. Transparency and accountability in the budgeting process play a critical role in identifying and preventing padding. Legislative reforms should be put in place to streamline the budget process and ensure compliance with fiscal discipline. The establishment of independent budget monitoring committees can also help enhance accountability and curb the menace.
Editorial
That Kyari’s Promise On PH Refinery
The Nigerian government has announced that the Port Harcourt Refining Company (PHRC) would soon start operations after missing several previously set deadlines. In a recent meeting with the Senate, the Group Chief Executive Officer of the Nigeria National Petroleum Company Limited (NNPCL), Mele Kyari, assured Nigerians that the refinery would begin operations in two weeks. He emphasised a commitment to meeting the set deadlines for the PHRC and other refineries.
A statement by the NNPCL spokesperson, Olufemi Soneye, quoted Kyari as saying: “We will make sure that promises that we made about the rehabilitation of these refineries are kept. We completed the mechanical completion of PHRC in December. Now, we have crude oil already stocked in it. It is currently undergoing regulatory compliance test before we restream it. I assure you that this refinery will start in the next two weeks”.
Speaking further, Kyari declares: “For Warri, we have also done mechanical work on it. It is undergoing regulatory compliance processes that we are doing with our regulators. Kaduna will be ready by December this year, but we have not reached that stage. We believe that it will also be ready on schedule.” He explained that the PHRC had received 450,000 barrels of crude for processing since the mechanical completion of the plant in December last year.
In 2021, the Federal Government gave approval to allocate $1.5 billion for the purpose of repairing the refinery. Subsequently, an Italian company, named Maire Tecnimont, was selected to undertake the repair work, which would be carried out in three separate phases. The main goal of the first phase is to restore the refinery’s operation to 90 per cent capacity within 18 months.
Although the project faces numerous delays and obstacles, it is a critical measure to increase Nigeria’s ability to refine its petroleum products and decrease its reliance on imports. The original deadline of 2022 was not met. During this year’s budget defence session, Kyari informed lawmakers that the PHRC would start operations by the end of December. However, that deadline was also missed. Another target of January 1, 2024, also failed.
There were two previous instances of deadlines set by Ibe Kachikwu, who was the Minister of State (Petroleum Resources). There was another timeline under Timipre Sylva, and now we are faced with the current one. This would be the fifth or possibly even the sixth one. In the past, several government officials had made similar statements, but no tangible outcomes were achieved.
The four state-owned refineries, which are old and in bad condition, have a total capacity of 450,000 barrels per day. One of them, the Kaduna plant located in the North, has a capacity of 110,000 barrels per day, while the other three units are situated in the oil-rich Niger Delta region. One of these is the Warri refinery, with a capacity of 125,000 barrels per day. All four refineries have been closed for several years.
In 2019, the four local refineries completely ceased operations, leading to fuel supply issues in the country. The Port Harcourt refinery has the ability to produce 60,000 barrels per day at full capacity. If fully utilised, this could result in the production of approximately 10.1 million litres of petrol, which is roughly equivalent to one-third of Nigeria’s estimated daily consumption.
The Dangote refinery was expected to begin producing products by the end of July last year, while the commissioning date for the PHRC continues to be delayed. This impediment is worrisome as it means that Nigeria’s dependence on imported fuel will persist, potentially adding N33.3 billion to consumers’ pump prices due to freight costs. The completion of these refineries is essential for reducing importation and ensuring a more stable and affordable fuel supply for the country.
In general, we should be feeling joyful about Kyari’s promise. However, that is not the situation. If anything, we are extremely angry about the news. What should have been happy news has instead provoked the frustration in us, clearly because similar promises had been made in the past without any palpable outcome. It has become predictable to hear about the functioning of the refineries, whether in Port Harcourt, Warri or Kaduna. We hope that the GMD will fulfil his promise this time.
Since 2015, when the ruling All Progressives Congress (APC) took power from the Peoples Democratic Party (PDP), which had been in government for 16 years, there have been promises to maintain and eventually operate the PHRC and others, but none of these promises have been fulfilled. So, when the NNPC released a statement declaring that the government was determined to stop importing fuel and that the PHRC would start operations in two weeks, indicating the government’s readiness to end fuel importation, we are sceptical of this claim.
We strongly advise the National Assembly (NASS) to increase its efforts in pressuring the NNPCL management to fulfil its pledge of making the PHRC operational at the stipulated time by regularly monitoring its activities. If the NASS had performed its oversight function commendably, the state-owned refineries would not have been a heavy burden on public funds, preventing Nigerians from experiencing the benefits of being an oil-producing nation. If the refinery does not function as promised, Kyari should face severe sanctions.
Considering the Nigerian government’s history of making unfulfilled undertakings, it is understandable that we are hesitant to believe Kyari’s statement. Previous assurances have been broken, so it is hard to trust that this one will be any different. However, there is still some optimism that things will change this time and that the government will actually follow through on their promises. If the Tinubu administration must regain our trust and that of Nigerians, they have to demonstrate their sincerity and commitment to their obligations.
Editorial
Delta Killings: Need For Caution
The Niger Delta region, known for its abundant oil resources, has long been plagued by violence, rebellion and challenges to duly constituted authorities, especially among the youths. This unrest is particularly noticeable in Ughelli South Local Government Area of Delta State, casting a shadow over the region’s wealth of resources. On March 14, a tragic incident occurred where angry youths in Ughelli ambushed and killed 17 soldiers who were on a peacekeeping mission in the Okuama community.
This terrible act of extreme violence highlights the growing divide between the authorities and the frustrated younger generation. The significant loss suffered underscores the seriousness of the situation and shows the urgent need for quick and efficient solutions. The question that remains is: Who can be trusted to bring peace back to this troubled region?
With Nigerians already on edge about the increasing number of kidnappings in several areas of the country, the recent incident in the riverine communities of Ughelli and Bomadi Local Government Areas in Delta State has only added to the anxiety. The conflict between the Okuama and Okoloba communities, which began in January over a land dispute, has escalated and led to heightened tensions in the area. The citizens are understandably concerned about the situation and are hoping for a peaceful resolution of the conflict.
The Okuama people had unfortunately lost some of their own in recent events, leading to tensions between them and the rival community of Okoloba. In retaliation, the Okuama natives allegedly kidnapped a member of the Okoloba locality. This action prompted troops to embark on a peace mission to Okuama to rescue the kidnapped individual. Tragically, the mission turned deadly. The Army then insisted on taking some community leaders with them, a request members of the community declined, resulting in the crisis.
According to reports, a group of Okuama youths ambushed the military team and viciously killed the Commanding Officer, two majors, a captain, and 13 soldiers. There were allegedly intense gun battles between the youths and the troops. Reflecting the horror of the incident, media outlets described the aftermath scene as “barbaric”. The victims’ corpses were mutilated beyond recognition with severed legs and brutally torn bowels. The chilling degree of violence demonstrated was not only shocking but also unacceptable as it showcased the severe lack of regard for human life.
President Bola Tinubu’s denouncement of the attack on the military personnel and his call to fish out the attackers was expected and necessary. However, it is disappointing that he did not explicitly mention the need to avoid extrajudicial acts by the military in the process as they are wont to do. Other Nigerians have also condemned the killings as unprovoked and have called for justice to be served. All parties must ensure that the perpetrators are brought to justice through legal means and that there is no room for further violence or retaliation.
Already, reports have surfaced indicating that the military has encircled the communities, causing the indigenes to flee to neighbouring areas because of apprehension of reprisals. Viral images depicting armoured vehicles and burning structures imply that the soldiers have initiated operations. While we strongly denounce the shocking, barbaric, wicked and unforgiveable killing of the soldiers, we implore the Nigerian military to exhibit maturity and refrain from resorting to vigilantism in response. Instead, they should concentrate on apprehending the culprits, with some of them already identified.
Angry troops from the Nigerian Army recently attacked an Ijaw community called Igbomotoru, located in Bayelsa State in the Southern Ijaw Local Government Area. This community is known to be the birthplace of the purported ringleader, whom the troops were searching for. However, their efforts proved abortive, as the suspect had received a tip-off and fled before their arrival. Unfortunately, the invasion resulted in significant loss of life and destruction of property. Regardless of the soldiers’ anger, it is morally and legally wrong to take innocent lives. Such actions are uncivilised and give the impression that our military operates outside of the law.
It is a common practice in Nigeria for the military to respond to violence against its personnel by taking severe actions against the involved people or communities. Nonetheless, this approach may not necessarily lead to long-term peace and understanding. In fact, it could backfire and provoke more hostilities. That is why we think that the military must tread with caution. The risk is that such retaliatory measures could fuel resentment and defiance among the affected population, causing a cycle of ongoing animosity that could eventually lead to even more rebellion and hostility towards the authorities.
To look into the circumstances surrounding the regrettable incident, the Federal and Delta State governments should work together to form impartial probe panels that include representatives from both parties. The decision to deploy soldiers to settle a land dispute was inappropriate in the first place, as this is a matter that falls under the jurisdiction of the police. The military needs to concur with the police force and possibly the Directorate of State Services (DSS) in similar situations to prevent any further escalation of civil conflicts.
Nigeria’s police system needs to be reviewed in light of the killings of the military officers. Following understaffing, the military has been forced to take on internal policing duties, including tackling organised crime, oil theft, communal crises, kidnappings, and banditry. The police force must be adequately funded and equipped to effectively carry out their constitutional responsibilities. This tragic event emphasises the necessity for seeking justice without first resorting to revenge.
In November 1999, in Odi community, Bayelsa State, a gang killed 12 police officers and soldiers over oil resources and environmental degradation issues. The military’s response was severe, leading to the deaths of hundreds of civilians and the destruction of Odi. In October 2021, the military intervened in Zaki-Biam, Benue State, after 19 soldiers were abducted and killed by locals. The troops were sent to stabilise the area due to clashes between the Tiv and Jukun communities in Benue and Taraba States. Reports by Human Rights Watch indicated that the soldiers killed about 100-200 men and destroyed properties in Zaki-Biam and neighbouring areas.
The Okuama killings have shed light on the harsh reality that there are far too many weapons in the wrong hands in our country. To combat this issue and reduce criminality, President Tinubu must prioritise disarming and preventing non-state actors from obtaining weapons during his administration. The military and police should conduct thorough investigations into the homicides and ensure that only the perpetrators are brought to justice, to prevent further bloodshed and violence.
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The European Union (EU) says it will end its five-year Agents for Citizen-Driven Transformation (ACT) programme aimed at enhancing the capacity of Civil Society Organisations (CSOs) in Nigeria, on April 14. Mr Damilare Babalola, the National Programme Manager, ACT, said this on Tuesday at a brief event in Port Harcourt. Babalola said that the conclusion of the programme would automatically mean an end for the 21 CSOs based in Rivers. He stated that the EU-funded programme, valued at 13.1 million euros, was executed by the British Council across 10 states, with a presence in the 36 states of the federation. “The programmes’ goals are to assist CSOs in becoming more credible, accountable and effective agents of change, for sustainable development in Nigeria. “The implementation focussed on providing capacity-building skills, referred to as capacity development support to CSOs, to enhance their effectiveness. “Additionally, it aimed to evaluate the regulatory environment for CSOs and promote strategic coordination among them and other key stakeholders in terms of collaboration and advocate, for appropriate legislation and regulations,” he explained. Babalola identified the benefitting states as Adamawa, Borno, Edo, Enugu, Kano, Lagos, Plateau, Rivers, Sokoto and the Federal Capital Territory (FCT). “The ACT programme commenced in 2019 and will officially conclude on April 14, marking the end of five-years of active implementation in the country. “Rivers was among the states where we initiated the programme during our phase two launch in 2020, and we are here to formally close the ACT programme in the state. “ACT has addressed significant challenges affecting the effectiveness and impact of civil societies, especially in creating an enabling regulatory environment,” he added. He expressed confidence that in spite of ACT’s departure from the country, civil society groups have gained sufficient capacity to effectively carry out their responsibilities in their respective focus areas within the communities. The programme manager noted that 273 CSOs benefitted from the programme across the country, with 233 CSOs receiving capacity-building training and 40 others trained to enhance regulatory conditions. In his remark, ACT Rivers Focal Person, Mr Temple Oraeki, emphasised the importance of CSOs collaborating with the state government and international donor agencies to advance their programmes and projects within the communities. “The 21 CSOs, comprising of eight community-based organisations and three network coalitions in Rivers, now serve as our ambassadors, equipped to make positive impact in society. “Therefore, we are leaving behind organisations that are credible partners for the government and international donor agencies to execute their programmes in communities,” he said. Gov. Siminialayi Fubara of Rivers, expressed the state’s readiness to engage with CSOs to implement government policies and programmes in the various communities where they operate. Represented by Diokuma Ismael, the Permanent Secretary of the Ministry of Culture and Tourism, Fubara lauded the EU and British Council for their interventions in the state. “The success of the ACT programme has undoubtedly enhanced the value of civil society organisations in the state and nationwide. “We are prepared to partner with the CSOs that have impacted communities, once all necessary documentations are concluded. “However, it is crucial for CSOs to adhere to proper regulations, to enable the government to identify with them for sustainable development,” he said. Fubara urged the civil society groups to align with the state government’s policy to drive positive change in the communities.