Don’t Depend On Kerosene – Ajumogobia

That’s the part of equity that a lot of people don’t appreciate; when they do, the host communities themselves may feel: ‘we don’t want to be part of the minus, we want to be part of the plus’ – in which case that would no longer be equity or shareholding. That’s why I say once the process has been discussed and people (have been) educated and enlightened on what government is proposing, they’ll have there own input.

Certainly for me, and I come from the region, I’m not sure that I’ll be necessarily happy with a situation where I may not derive any income even though I own equity. I prefer a situation where I’m guaranteed a certain income or revenue as a result of the activities that’s taking place in my area.

The President sets up a committee to look at the modalities and see what is the best way to deal with the issue of host community stake holding in the revenue stream from oil business. That’s how I see it as a member of host community myself.

What should Nigerians expect from your Ministry in the remaining week(s)?

We’ll try and make sure  that there are no queues at the filling stations that people became used to several years ago; that resulted in people having a very bleak Christmas because instead of spending time with your family, you are spending time queuing at the filling station.

We are doing everything in time to ensure that there is adequate supply of fuel. We are also doing what we can to ensure that people sell the product until such time as the market is deregulated at the price that government has indicated and with the hope that we in meantime will build the necessary stakeholder consensus on deregulation

In the circumstance, what’s your Christmas message to the people – marketers and consumers of the product?

I think the message of Christmas is good will to each other. And that means we should not exploit each other, especially the marketers. My message is peace and goodwill to all my compatriots.

What kind of budget are you proposing for next year, bearing in mind the leading role your ministry plays in moving the economy to greater heights?

The budget next year (2010) is to try and consolidate on the gains of this year (2009) and some of the things we talked about – monitoring the crude output, ensuring that we get products across the country at a reasonable price – building the infrastructure that is required to do that; working on ending gas flaring, we are determined to ensure that there is no flaring at the end of the first term of this administration. We have already reduced it considerably.

To do that, we have to build significant infrastructure to be able to take the gas from its source to where it is going to be utilized. I intend to role out a robust LPG utilization plan. So the budget – the critical parts of the budget are to deal with the issues of regulating the industry and building the infrastructure that is necessary to realize the aspirations and electoral processes of government.

House of Representative’s committee on petroleum resources on a recent tour of oil installations in the South West berated the Federal Government for what it calls ‘insincerity’ in making the refineries work and calls for privatization of the refineries. What’s your reaction? What’s government’s position on privatization/commercialization of refineries?

Under the reform of the oil and gas industry,  Nigeria National Petroleum Corporation (NNPC) will be reconstituted as limited liability company – private company own by the government, but a limited liability; now required to think and act like any other limited liability companies in responsibility to its shareholders. In that scenario, NNPC will have to make some very important decisions with regard to its business units, which include the refineries at the moment, as to how to ensure that they are running effectively. Privatization will be one of the mechanisms that they may engage in, in terms of having the right to sell off a business, if they feel they cannot run it profitably and they will make more gain by doing so.

So I don’t want to pre-empt what the NNPC Management in that reform context will do. I personally believe that government is best left to creating policies and implementing policies – providing an enabling environment for business to thrive. NNPC hitherto has been like a government parastatal – in the way that government is effectively running the refineries and I think, that is partly why things have not worsened; where NNPC is required to ensure that it carries out its operations for profit we will see a difference and of course, that’s without prejudice to the management deciding that they should sell off parts or all of their refining capacity.

Finally, you are a member of Federal Executive Council (FEC). Chairman of FEC and the Nation’s President, Umaru Musa Yar’adua has been out of the country to Saudi Arabia on medical ground for some weeks now, Nigerians have variously expressed concern over his health condition and long absence. In particular, the Nigerian Bar Association (NBA) has recently called on the President to write the National Assembly on the appointment of Vice President, Goodluck Jonathan as ‘Acting President’, especially since his doctors are not definite as to when he will return to the country. How would you react to this?

I think unfortunately, politicians, especially politicians from the opposition are playing politics with the health of the President. The President is the president of all Nigerians, including the opposition politicians. He is indeed in many respect an embodiment of the nation and all should join hands to pray for his speedy recovery and return to Nigeria. I have faith that that will happen soon.

I don’t personally believe all the statements credited the NBA President. I know him very well and he is a very responsible and mature leader. I must say I am very disappointed by some of the statements made and credited by some prominent NBA members. But I think the calls made by these NBA members are out of place, irresponsible and should be seen as such. I think a responsible organization like NBA should pro-actively explain the legal imperatives and processes to the public rather than joining opposition politicians to play politics with the issue.

Under our constitution, the President may in his discretion assign to the Vice President or any Minister responsibility for any business of the government. When the president is away he is presumed by law to have done so. That’s why I and all my cabinet colleagues are working on anything under this delegated authority requiring higher approval. We refer to the Vice President or FEC in the usual way under the same delegated authority. There is no crisis. It’s all politics. No vacuum. But it’s irresponsible politics.

This is not the first time that the President has been out of the country on health ground. The government continues to function effectively and there is therefore no reason for one to be concerned in the way that some of the statements made in the media mischievously suggest.