Business

N’Delta Crisis: After Osinbajo’s Visit, What Next?

Published

7 years ago

February 27, 2017

The ongoing tour of the oil-rich Niger Delta region by the Acting President, Prof Yemi Osinbajo-led Federal Government team is receiving high level of acceptance by the people of the region.
At least, the bombing and destruction of oil and gas installations have died down, unlike in the past when government was applying force aimed at crushing the boys. The millions of Naira expended on war logistics, huge crude oil loss and cost of repairing the destroyed installations directly affected the nation’s economy which is struggling under recession. This goes a long way to prove that to jaw-jaw is far better than to fight.
Report has it that on getting to Oporoza community, the headquarters of Gbaramatu Kingdom, in Delta State, Osinbajo expressed deep shock and pity over the age-long neglect of the oil host community. One wonders how he felt on getting to Oloibiri in Bayelsa State, where a desolate well-head, instead of the much talked about oil museum represents Nigeria’s official indicator of where crude oil was first stuck at commercial volume over sixty years ago.
How would the professor of law, in his discerning mind, have felt, if he had gotten to Umuechem, a community in Etche Local Government Area of Rivers State, where inspite of the billion dollars from its high grade Bonny light, the area is starved of Federal Government presence and virtually all social amenities, except the recent interventions of the state government under the leadership of Governor Nyesom Wike.
As Osinbajo resumes his tour, what awaits him are more sorry sights of underdevelopment, absence of good drinking water, pollution and pitiable relics of history.
But beyond rhetorics, no one can tell for sure what may come out of the tour when Osinbajo gets back to Abuja. After all, there was a bigger talk, just few years ago, in the name of National Constitutional Conference. The conference went with its colourful drama, the walk-outs, echoes of 50 per cent derivation fund and resource control, giving the impression of a serious business, but today, confusion has beclouded the vision of that bigger talk such that no one can make either the head or tail of the conference which had stirred up so much promises and hope for people of the region.
The journey for economic emancipation of the region brought about the Willinks Commission of the 1950s, but inspite robost presentations and agitations, not much can be said to have been achieved except such paltry gifts from stingy fingers as one per cent, three per cent and 13 per cent derivation. No permutation or formular, either of the oil or modern mathematics has ever scored 13 per cent as pass mark; it’s always at least 50 per cent.
The Niger Delta Development Commission (NDDC) which came after the defunct Oil Minerals Producing Areas Development Commission (OMPADEC) and the recent Niger Delta Ministry could have also made meaningful development impact but for poor management.
Why addressing stakeholders at the Government House in Port Harcourt, Rivers State, Osinbajo was frank and sincere when he said that after serving his National Youth Service NYSC in former Bendel State some 38 years, “it is therefore extremely discomfiting to know that we are still confronted with the very same situation. An edifying lack of development and access to basic amenities in the abundance of plenty.
“A situation typified by continued environmental degradation and a disturbing lack of opportunities for those who can no longer carry out traditional occupations like fishing and farming”.
The Acting President noted that, “what we now have is an unhappy cycle of discontent sometimes expressed by a resort to violence and vandalism and drawing in response a strengthening of security managements and a gamut of palliative measures”, adding that this vicious cycle cannot continue as it builds needless tension, promising that the federal government would take steps to bring development to the region.
It is only a change in the way we do things in the region as it is only the Federal Government, oil multinationals, states and communities that can bring the much desired change and result we desire.
The Osinbajo-led team appears to have set the right tone for the desired result when the government jettisoned its former strategy of force and opted for peaceful dialogue. This Federal Government change in approach has raised the people’s confidence in the sincerity of government to realise promised change.
Furtherrance to the quest for lasting solution to the crisis-ridden oil host communities where peace has remained elusive for decades to be a meaning venture, instead of the usual picnic, the team must find out why the communities even when they have abundant after black gold that rules the world’s economy, they remain absolutely poor.
The mass poverty in the communities occasioned by economic deprivation must change such that marginalisation of the host communities by oil operators and the government be brought to an end.
The idea of declaring natives, including their graduate sons and daughters, as not qualified for employment by oil operators much stop. Let the graduates be trained on the job to acquire requisite experience. Labour contractors excesses must be checked.
The Federal Government must show serious presence in initiating big projects that can touch the lives of the people directly and creating mass employment to justify the 60 per cent equity it enjoys in the sharing of oil proceeds.
Federal Government agencies which execute mega dollar jobs should expand their operational offices in the region and employ people in order to amiliorate their plight.
The non-completion of the East/West Road after so many years is a goose pimple on the nose of the government. Let this present administration try to complete the project in view of the economic and strategic importance of the road to the region and the nation.
The Train Seven aspect of the Nigeria Liquefied Natural Gas (NLNG) Bonny should commence so also the Brass LNG in view of the huge employment opportunities it would create for the region as well as the revenue to the nation.
In the area of pollution, the oil operators who are unwilling to operate according to international standard particularly in changing aging facilities and equipment should be sanctioned by the regulatory agencies.
The idea of gas flaring that has ended in most countries of the world must be made to stop. The idea of leaving the issue at the convenience of some stakeholders with inconsequential fines not commensurate with the effect of the pollution and damage should be urgently reviewed.
The youth of the region must also change the attitude of breaking or destroying installation as a strategy of agitation because of the damage it causes to the environment and national revenue.
There is also need for the government to review its stand on the illegal refineries especially with the promise of encouraging modular refineries in the area. There is need to co-opt the illegal operators and co-ordinate them in such a way that their standard of operation becomes acceptable.
The idea of destroying them by burning by the Nigeria Security and Civil Defence Corps is counterproductive because it aids destruction of the environment.
Nigeria Content Development Monitoring Board (NCDMB) should wake up and seriously think of how to put the Act in actual practice and this they can do by decentralizing their offices in most relevant local government areas. It should not be an urban issue.
Skills acquisition programmes and scholarship aimed at making youths in oil host communities acquire skill must be taken seriously. The idea of selling off the starter packs after the training graduands is bad. So let communities liaise with government agencies, oil firms and other stakeholders to see to better handling of the programmes. The idea of selling scholarship chances in a community when there are eligible persons in the area would not promote peaceful co-existence.
As the new parley by the federal government has set in a new beginning, there is need to also forgive those militants who were involved in pipeline vandalism as a way of agitation. Therefore Amadin Ogbeide of Delta State and indeed every other militant agitations being hunted by the security agencies should be pardoned.
NDDC must be made to be an interventionist agency in the real sense of it. The bad eggs in the system responsible for so many failed programmes and abandoned projects must be flushed out.

Chris Oluoh

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

3 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

7 days ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu