Connect with us

Oil & Energy

Battle For The Soul Of NNPC

Published

on

Nigeria’s fattest cow, the Nigerian National Petroleum Corporation (NNPC) is bleeding.
This time around, not as a result of bursting of its pipeline facilities by vandals or illegal bunkering activities, but due to clash of vested interest over its administrative and financial running procedures.
The life of this critical government parastatal is on the line and like a ravaged and utterly exposed woman, the corporation now lies helplessly in an intensive care unit, with the  hope of its survival hanging in the air.
The shadowy operations and internal squabbles in the corporation caught public attention when the Minister of State for Petroleum, Ibe Kachikwu burst the bubbles against the management of NNPC through a protest letter to Nigeria’s President, Muhammadu Buhari.
Kachikwu in the protest letter to his principal, ripped cans of worms open when he disclosed that the operations of NNPC, under the watch of Dr. Maikanti Baru as Group Managing Director (GMD), was shrouded in secrecy.
Kachikwu, a former GMD of NNPC in his now controversial memo picked holes in the modus operandi of the NNPC (GMD), Maikanti Baru.
The memo revealed that contract worth over $25bn were unilaterally awarded without recourse to due process, while appointments are made without consultation of key stakeholders especially with NNPC Board of Directors.
The memo sought among other things to promote application for fair and competitive standard and ethical practices in the corporation.
Kachikwu was said to have raised the memo out of apparent frustration after his several overture to discuss with his principal, President Buhari, were turned down by the president’s top cronies in Aso Rock, who are linked with the NNPC scam.
The development has since created a lingering disagreement between Kachikwu and Baru.
Buhari’s Chief of Staff, and NNPC Board member, Abba Kyari, was also fingered to have worked in connivance with the NNPC’s GMD to frustrate Kachikwu’s moves within the presidency.
The Minister of State for Petroleum was therefore left with no option than to rouse the seeming insensitivity of the President to his perceived persecution by the Aso Rock henchment through public alarm.
The NNPC GMD, Maikanti Baru however dismissed Kachikwu’s claims as false. In a swift response, Baru faulted Kachikwu especially on his accusations of irregularities in the award of contracts but was apparently silent on the issue of making appointments in the corporation without due consultations.
Baru explained that no money was involved in the contracts and that the NNPC Tenders Board has no business reporting to Kachikwu and the corporation’s Board.
Irked by Baru’s response, Kachikwu’s loyaltists have equally given a counter response insisting that Baru’s silence on the controversial appointment in the corporation was an indictment on his part.
They dismissed Baru’s response as “self serving” and urged the NNPC GMD not to hide behind illegality to justify wrong actions and called for proper investigation of the matter, “especially as it relates to policies on public procurement as enshrined in relevant laws and regulations governing procurement in Nigeria”.
On Baru’s submission that Kachikwu has no business in the internal administrative policies of NNPC, Kachikwu’s loyalists pointed out that constitutional provisions are clear on the president’s statutory rights to delegate power to his minister or any government functionary.
They insisted that Kachikwu as a former GMD of NNPC was not a novice in the corporation’s politics, as he was reputed to have instituted a culture of transparency at all levels under his watch, by publishing reports of operations in the corporation and briefing stakeholders periodically.
However, as the clash of interest rages on between Kachikwu and Baru’s camps, Nigerians are of the view that the controversies surrounding the operations of NNPC should not be swept under the carpet.
A Port Harcourt-based legal practitioner, Barrister Barivure Kpobe, described the NNPC scam as a tactical reflection of the rot in all critical sectors of the economy.
Commenting on the shocking revelations from the parties involved in the NNPC crisis, the Port Harcourt-based lawyer said proper investigations should be carried out to ascertain the true position of things in the corporation, while the law should take its full course.
A youth activist and public affairs analyst, Comrade Legborsi Yaamabana, called on all the parties involved to submit themselves to proper investigation and advised the presidency not to shelve anybody from appropriate investigation.
He decried a situation where some government officials will hibernate under the cover of the presidency to commit countless economic atrocities against the people.
“The government does not belong to any single individual or group of privileged persons. It is a thing of shame that some people abuse opportunities of being in power to swindle the people. The antics of some of the people involved in the NNPC scandal, shows that they are not remorseful even in the face of glaring revelations. The President should ensure that justice is done in this matter by ensuring that all those involved in the scandal face the wrath of the law,” he posited.
In his view, a university teacher, Dr. Steve Wodu, expressed disappointment over the shocking revelations of unethical practices in the NNPC.
Dr. Wodu, an environmental sociologist and senior lecturer in the University of Port Harcourt, said the president should be cautious against those running a parallel regime while disguising as his confidants but bent on imposing their self-serving motives on the people.
He said: “the NNPC’s scandal was a manifestation of the gold digging experiments of some self-appropriating public officials who hide under political cover-ups to milk the nation dry.”
Dr. Wodu, who described the NNPC as a major source of Nigeria’s economic prosperity, called for the review of the corporation’s act to serve its specific objectives and not to be a conduit pipe for self appropriation of tax payers money.
Popular radical lawyer and social crusader, Femi Falana in his own reaction to the NNPC scandal has called on the President to relieve himself of the ministerial position as head of the petroleum ministry, which is already subsumed in his presidential role.
In Falana’s postulation, the President’s role as Minister of Petroleum does not entirely detach him from the festering web of corruption in the NNPC.
He averred that giving up his position as Petroleum Minister will allow room for proper surveillance and Xray of activities in the Nigeria petroleum sector.
Pundits had earlier faulted the nomination of President Buhari’s Chief of Staff, Abba Kyari as a member of the NNPC Board on the ground that Kyari’s appointment was a duplication of duty, as some part of the country especially the South East do not have a representative on the NNPC Board.
Former National Chairman of the Nigeria Bar Assocation, Olisah Agbakoba, has already instituted a suit against the Federal Government for deliberately slighting the South East in the appointment of Board members for the NNPC.
Agbakoba’s argument is that appointments into sensitive positions in Nigeria should be based on the imperatives of justice and not skewed to favour a particular section of the country.
Others view Kyari’s appointment as a common place practice of availing indepth cronies of government unfettered access to juicy positions, on a note of compromise and pacification.
The NNPC ordeal to them is just a tip of the iceberg on the sordid realities in different sectors of the economy, where opportunists count on political patronages and undue concessions to cash in on the economy.
For the Minister of State, Petroleum, Ibe Kachikwu, his ordeal in the NNPC appears to be a reverberative consequence on his earlier deviant posture on the unilateral increase in the pump price of PMS.
His then decision was offensive to the sensibilities of Nigerians but he was undettered and revelled in the impositional act.
It could be recalled that President Buhari’s long standing profile of altruism and zero tolerance for corruption were his greatest political capital, especially during the 2015 general election.
However, his seeming lacklustre attribute to tame the excesses of his acolytes appear to be turning the table against him and his government.
Nigerians believe that the NNPC saga is another test for the president to exonerate himself, by yielding to sober reasoning and save not only the NNPC but the Nigerian state from imminent collapse. Nigerians still await the illusive change that is the hallmark of Buhari’s administration of change mantra.

Taneh Beemene

Continue Reading

Oil & Energy

Resource Wars Are Here and Oil Is the First Casualty

Published

on

In just over a year, the world saw several instances of a choked supply of commodities indispensable for today’s economies and military capabilities.
From China’s restrictions on rare earths and critical minerals supply to the de facto closure of the Strait of Hormuz, policymakers and analysts began to realize that the control of oil, critical minerals, rare earths, and magnets is as important as building and maintaining stockpiles of advanced weapons. It also became clear that without these resources, defense and military capabilities could be weakened. The actual arms race goes hand in hand with the new battle for the resources that underpin economic, manufacturing, and advanced military development.
“Great-power competition has returned to basics: who controls the physical resources that modern economies and militaries run on,” Alice Gower, a partner at London-based political-risk advisory firm Azure Strategy, told the Wall Street Journal.
“Energy, critical minerals and industrial capacity are leverage, not just economic assets,” Gower added.
The war in the Middle East and the blockage at the Strait of Hormuz laid bare the reality of choked energy supply. The world’s most vital oil and LNG chokepoint, through which 20% of daily global trade flowed before the Iran war, has been essentially closed for most tanker traffic for more than three weeks.
The massive supply shock, the worst disruption in the oil market in history, showed that the world is dependent on energy resources, and that geography and actual physical supply matter. With so much oil and gas stranded in the Middle East, oil prices spiked to above $100 per barrel, natural gas prices in Europe doubled, and Asian spot LNG prices hit multi-year highs.
The precarious situation in the Middle East is reverberating across Asia, the region most dependent on oil and LNG supply from the Persian Gulf. Asian refiners pay sky-high premiums for non-Middle Eastern crude, many are considering cutting or have already cut processing rates, and countries have started to enact fuel-preserving measures, from four-day work weeks to bans on fuel exports.
In Europe, the gas refilling season will be the toughest yet, as Asia is outbidding Europe for spot LNG supply after Qatar’s LNG is effectively sidelined and full capacity may not return for up to five years following Iranian missile attacks last week.
Even the ‘energy independent’ United States, the world’s top oil producer, is not independent when it comes to global supply shocks of such magnitude.
The national average price of gasoline is approaching $4 per gallon nationwide, more than $1 a gallon compared to a month ago, before the start of the war.
Oil is a global resource, traded on a global market, and prices reflect fundamentals, although they have been driven by hectic trading activity on geopolitics in recent weeks. But the fundamentals show that there is no resource available to plug the gap that has opened in Middle Eastern supply. Producers are slashing output due to a lack of storage capacity, which further delays a rapid recovery in supply when this mess ends.
All this goes to show that whoever controls the Strait of Hormuz has enormous leverage on inflicting global economic pain.
While the world is focused on the Strait of Hormuz, the race for rare earths and critical minerals continues, with the U.S. and Western countries scrambling to dent China’s dominance.
Since China restricted exports of rare earth elements early in 2025, Western countries have raced to create mine-to-magnet supply chains to reduce dependence on Chinese supply in the key military and automotive industries.
China holds a 59% share of the mining of rare earths, 91% in refining, and a whopping 94% in magnet manufacturing, the International Energy Agency (IEA) estimates.
The U.S. has responded by taking stakes in minerals mining companies, the launch of a U.S. Strategic Critical Minerals Reserve, known as Project Vault, and is leading efforts to break the Chinese stronghold on the pricing of these minerals critical for the defense and auto industries and national security.
Chinese dominance could be eroded, but it would take years.
Still, rising neodymium-praseodymium (NdPr) supply from countries like the U.S. and Australia is set to reduce China’s market share to 69% by 2030 from 90% in 2024, Bloomberg Intelligence (BI) said in new research this month.
“We’re seeing a surge in rare-earth investment as modern technologies demand more critical materials,” said Jack Baxter, Global Metals & Mining Analyst at BI and co-author of the report.
“That said, we anticipate a significant shortfall in supply due to trade uncertainties, with lead times as long as 10 years to get new material out of the ground,” Baxter added.
“This will give pricing power to the few producers that currently are able to supply critical materials outside of China, fracturing the globalized market.”
Amid fractured markets and high geopolitical uncertainty, one thing is certain – the next arms race, alongside the actual arms race, will be for control of key resources such as oil and critical minerals.
By Tsvetana Paraskova
Continue Reading

Oil & Energy

Transcorp Energy, Renewvia Partner On Renewable Energy Gap

Published

on

Transcorp Energy Limited and Renewvia Solar Nigeria Limited have signed a Memorandum of Understanding to jointly develop renewable energy projects across Nigeria.
The move is aimed at addressing the persistent power deficit that has crumble businesses in the nation.
The agreement also outlines a longer-term plan to expand operations across Africa, positioning both firms to tap into growing demand for clean and reliable electricity.
The partnership would target commercial, industrial and residential consumers, as well as underserved communities, through a mix of off-grid and grid-connected energy solutions.
Beyond electricity provision, the collaboration would explore the aggregation and monetisation of Renewable Energy Credits generated from the projects, adding a commercial layer to the clean energy rollout.
The Managing Director and Chief Executive Officer, Transcorp Energy, Chris Ezeafulukwe, said the initiative aligns with the company’s broader strategy to expand access to sustainable power.
He noted that combining grid and decentralised energy systems would enable the company to deliver reliable electricity directly to end-users across different segments of the economy.
Chief Executive Officer of Renewvia, Trey Jarrard, described Nigeria as a critical market for the company’s African ambitions.
According to him, the partnership provides a platform to scale operations rapidly by leveraging established infrastructure and local expertise, while delivering cost-effective and resilient energy solutions.
Both companies said the agreement lays the foundation for a scalable pan-African renewable energy business, capable of supporting diverse markets and accelerating the continent’s transition to cleaner power sources.
The collaboration comes amid increasing pressure on governments and private sector players to deploy sustainable energy solutions to bridge electricity gaps, reduce reliance on fossil fuels, and support economic growth across Africa.
Continue Reading

Oil & Energy

IYC Tasks Niger Delta Governors On  Oil Field Bidding  ….Decries Exclusion of Host Communities

Published

on

The Ijaw Youth Council (IYC) Worldwide has raised concerns over the continued exclusion of host communities from the governance of oil resources, urging Niger Delta governors to take decisive steps by bidding for oil blocs and marginal fields.
The council warned that failure to act would allow external interests to continue dominating the region’s oil assets, despite their location within host communities.
Secretary-General of the council, Maobuye Nangi-Obu, started this at the stakeholders’ meeting organised by the Pipeline Infrastructure Nigeria Limited , with participants drawn from Rivers, Abia and Imo States, in Port Harcourt, recently.
“It is time for state governments in the Niger Delta, especially Rivers State, to form oil companies that can bid for marginal fields within their territories”, he said.
Nangi-Obu expressed concern over the reported listing of about 25 marginal oil fields for allocation, noting that many were located in host communities but allegedly being assigned to non-indigenes.
In his words “They sit in Abuja and decide what happens in our region, yet we are not part of the oil governance of our own resources”.
He explained that marginal fields, though considered uneconomical by major oil firms, remain viable for indigenous operators, adding that their allocation had continued to fuel grievances in the Niger Delta.
The IYC scribe also warned of the implications of directional drilling, describing it as a growing threat to host communities.
“There could be oil wells in your community, and somebody elsewhere could be drilling that oil without your knowledge,” he cautioned.
On environmental concerns, Nangi-Obu condemned the persistent gas flaring in the region, blaming both international and local operators for failing to invest in gas processing infrastructure.
He, however, commended Pipeline Infrastructure Nigeria Limited for its engagement with host communities.
“Pipeline Infrastructure Nigeria Limited is doing the right thing by engaging stakeholders. Not all companies are doing what they are doing,” he stated.
Traditional rulers at the meeting, further acknowledged improvements linked to the company’s activities in their areas.
The Eze Ekpeye-Logbo, King Kevin Anugwo, represented by Dr Patricia Ogbonnaya, noted that “aquatic life that disappeared due to pollution is gradually returning,” attributing the development to improved environmental conditions.
Similarly, Chairman of the K-Dere Council of Chiefs, Chief Batom Mitee, said, “There is now peace in our community,” stressing,  increased oil production must translate into tangible benefits for host communities.
By: King Onunwor
Continue Reading

Trending