Editorial
That Kachikwu’s Promise
Piqued by widespread complaints over the scarcity of
petroleum products in Nigeria, the Minister of State
for Petroleum Resources, Dr. Ibe Kachikwu, a fortnight ago, while touring some petrol stations in Abuja, apologised to Nigerians for the pains they were suffering, and assured that the fuel crisis would end in two days.
Said he: “I apologise to Nigerians for all the pains. Nobody wants to see people spend two hours on fuel queue.” The President is very bothered about the sight of people waiting for fuel.”
Expressing the determination of NNPC to fix the problem once and for all, the Minister had assured: “We have enough coming in. Obviously the two days of strike hit us very badly but we are flooding in, getting an average of 300 trucks a day into Abuja. It is going to take a while for the queues to finish, but we are hoping that within the next one or two days we should have the queues all disappear because we are continuing to pump in, while a lot of stations are open 24 hours a day.”
Just as the Minister was saying that the administration would make fuel available in two day, a feat they have not been able to achieve in eight months, leaders of the oil workers’ union said that what the Minister said was not possible. In fact, they said the problem would linger for months.
Every patriot was waiting to shame these oil workers who only know how to cause problems for Nigeria. But weeks after they have not only been proved right but the Minister wrong. The Minister was also said to have corroborated their postulation that the earliest fuel would be fully available is May this year.
In an earlier editorial, The Tide had wondered and indeed suspected the understanding of the petroleum sub-sector of the economy by officials of the present government. For a government that claimed to have all the answers to the problems of Nigeria, it should not fail to provide fuel for Nigerians, after eight months.
But more worrisome is the endless denials of statements made on the issue and the issuance of new promises that have failed to materialise. It is sad that the Minister has also denied agreeing that scarcity would end in May 2016. Now Nigerians can no longer put a finger on when to expect the scarcity to end, or what government is doing to go past this calamity.
A statement by NNPC Group General Manager, Public Affairs, Mallam Garba-deen Mohammed quoted the Minister as having said that he was misrepresented by the media on the account of ending the scarcity in two days. He said the Minister had only assured that the scarcity would be over in one or two weeks.
If the correction is made to read two weeks, Nigerians still did not see the end to the scarcity in two weeks. The question is whether the administration has problem with estimation as both the enormity of the challenge and the expected panacea always misalign in their statements.
That the NNPC and the Petroleum Ministry take the humble pie is no longer an issue. The worry is how much longer Nigerians can hold on under the current excruciating condition. Even as we write, queues at filling Stations are getting longer across the country. So is the cost of the product in the black market rising.
A lot of Nigerians can no longer speculate on the steps to take again because promises by the Petroleum Ministry have become repeatedly unreliable. A situation where a Minister, who has all the facts on his table, would speak and would be countered by oil workers whose understanding and declaration aligns more to reality calls for help.
The believability problem over the handling of the sector among others pushed the National leader of the All Progressives Congress (APC) Ahmed Tinubu to call for the resignation of the Minister of State for Petroleum, Dr. Ibe Kachikwu. Sadly an infuriated Kachikwu had earlier exposed helplessness when he exploded “I am not a magician.”
To say that government is still in control on this matter is increasingly becoming doubtful. Although, it has been denied, the Minister of Information and Culture, Lai Mohammed was quoted as saying that “government had lost control of the economy.” He was speaking on the effort being made to provide fuel to Nigerians.
We are beginning to be worried over the whole situation because Nigeria with all she represents has become the second largest importer of kerosene from the United States of America. In fact, officials of this administration has also said that it has become cheaper to import than produce petrol locally.
Even worrisome is the report that under this administration, the generation of electricity has dropped from 4000 MW to about 2000 MW. Also noticeable is the massive job losses, inflation of goods and services among others. But if everything is done to provide petrol, which is at the centre of nearly all the economic activities in the country, the situation can turn around soon.
Editorial
Alleged Budget Padding: Need For Transparency
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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
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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
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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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