Opinion
How Phoney Is Duke Oil?
By: Ibelema Jumbo
For the average Nigerian consumer of petrol, which is officially referred to as Premium Motor Spirit (PMS), the experiences of the past three weeks must have been extremely harrowing.
The scarcity of PMS, ostensibly caused by the importation of contaminated product, had resulted in long queues at many fuel retail outlets across the country with the litre price reportedly reaching from the normal N165 to as high as N400 in some states. Even more disturbing was news of the damages which the tainted import had caused to vehicles and power engines of some early buyers.
According to Mele Kyari, group managing director of the Nigerian National Petroleum Company Limited (NNPC), his firm had received a report from one of its quality inspectors on January 20 2022, indicating that there were emulsion particles in the PMS cargoes shipped to the country from Antwerp in Belgium. It was said to have been laced with about 20 per cent methanol – a prohibited substance in Nigeria’s fuel imports.
He claimed that the adulterated petrol was imported by the NNPC’s Direct Sale Direct Purchase (DSDP) suppliers, namely MRS Oil, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando and Duke Oil. Explaining further, he said that under this DSDP crude-swap scheme, selected overseas refiners, international traders and Nigerian oil marketing firms were allocated petroleum quantities in exchange for the delivery of an equal value of PMS and other refined products to NNPC.
But MRS had earlier disputed this, insisting that Duke Oil was the sole importer of petroleum products into Nigeria on behalf of NNPC, its parent company; and that the dirty fuel was distributed to the various retailing companies by the oil behemoth.
Surely, one can recall that during its operation, the above products importation arrangement came with a nationally televised open-bidding system where eligible firms were selected. But that was until about three years ago when the oil-sector regulator announced that only its Duke Oil would carry on the importation of fuel into Nigeria.
This had followed the discovery of sharp practices by the licensed oil importers, leading to the shipment and distribution of poor quality products in the country. So, how come the same NNPC is the very one releasing a list of private fuel importers? Again, is it likely that Duke Oil and the other three firms fingered by Kyari may have conspired to source their supplies from the same ‘dubious’ Belgian refiner?
In fact, the latest embarrassment is what would most certainly visit any major oil-producing country with four dormant refineries but whose leaders and retired oil executives would rather build private fuel storage depots and prefer that the country continues to import petroleum products than rehabilitate the refineries for the nation’s overall benefit.
However, that is not the focus of this write-up. Instead, my concern here is that the verbal smackdown between these oil-sector giants has thrown up something very important but which, I’m afraid, might get drowned by the enduring hullabaloo. It pertains to the suspected shady establishment of Duke Oil 32 years ago during the regime of General Ibrahim Babangida.
Reports emanating from the dirty fuel brouhaha have it that, as the trading arm of NNPC, Duke Oil Company Inc was registered in Panama under the Spanish name ‘Sociedad Anonima’, which in English translates to Anonymous Society. This simply suggests that its promoters had elected to remain faceless ab initio. And let us also be reminded that this Central American country has always been notorious as a safe haven for money launderers.
It, therefore, calls to question the reason a state oil corporation like NNPC would opt to float a subsidiary firm with secret shareholders and also pick a sleazy enclave for its registration.
Until 2019, Duke Oil was said to have registered and operated an offshoot in London. Known as Duke Oil Services, the new firm has relocated to Dubai apparently to draw close to Asia which is fast becoming the main destination for Nigeria’s petroleum exports.
If indeed Duke Oil was registered with a hazy ownership structure, it then means that a few faceless individuals had, over the years, consistently withdrawn and shared among themselves profits that had accrued to the firm from its diverse lucrative transactions. And this may also explain part of why NNPC is often reported to have operated in breach of the federal government’s Treasury Single Account (TSA) framework.
Given such circumstances, therefore, would anybody still hold the opinion that Lamido Sanusi, as Central Bank governor, was crying wolf where there was none when he claimed that the sum of N20 billion was missing from the NNPC coffers?
The story of Nigeria’s oil and gas industry is replete with sordid tales of local players and their expatriate collaborators perpetually devising schemes to rip the nation off through bogus companies and shady contracts. Recent examples include the Process & Industrial Development (P&ID) case for which an overseas court ordered the Nigeria government to pay an accumulated sum of $9.6 billion in 2017 over a failed gas development contract. Nigeria has since appealed the judgment while insisting that the entire contract was a scam.
We surely could not have forgotten the OPL 245 saga popularly tagged the Malabu Oil scandal involving Shell and ENI’s transfer of $1.1 billion through the federal government to some accounts controlled by a former Petroleum Minister, Dan Etete.
Or need I remind us of the shadowy Mexican syndicate of suspected international fraudsters which reportedly insisted on being paid for exposing the alleged collusion of some Nigerian top officials with foreigners to sell 48 million barrels of crude oil already shipped out of the country?
May God save this nation.
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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