Business

Checking Crude Oil Theft

Published

12 years ago

October 24, 2012

The Kimberley Process Certification Scheme (simply known as the Kimberley Process or KP) is the outcome of a vigorous campaign launched in 1998 by an international Non-Governmental Organisation, Global Witness, to expose the role of rough diamonds in funding conflicts, especially in Africa.

Following several violations of the sanctions imposed under the United Nations Security Council Resolution 1173 against Jonas Savimbi’s National Union for the Total Independence of Angola (UNITA), Global Witness, in concert with a few other powerful NGOs, was able to pressure diamond-producing countries in the Southern African region into holding a conference in Kimberley, South Africa, in May 2000 to discuss the issue of conflict diamonds.

Coming at the time it did, the deliberations may have also factored in the role of such precious stones in fuelling the fratricidal wars in Liberia and Sierra Leone during which many innocent citizens lost their lives and several others were maimed and abused, all on account of who controlled the huge diamond resources of the two West African neighbours.

After about three years of heated debates and negotiations, the Kimberley convention drafted an international diamond certification scheme which was endorsed and launched as the Kimberley Process by the United Nations in January 2003.

The scheme simply requires a certification of the origin of rough diamonds by participating governments as a way of preventing conflict diamonds from entering the international supply chain. Countries that produce, trade or process uncut diamonds are encouraged to join. They are expected to enact their own laws on how best to implement the scheme while also ensuring that they trade such merchandise with fellow members only.

Although the process has not brought about a complete halt to transactions in conflict diamonds, certainly not with Cote d’Ivoire, Zimbabwe and Venezuela showing little commitment, it has, nevertheless, dealt a significant blow to the flow of such bloody merchandise from conflict zones into the international diamond market. What’s more, it has also helped some of the countries that were, hitherto, hit by diamond-fuelled conflicts to earn more revenue from their official exports of the precious stone.

Nigeria may not be a member of the Kimberley scheme. She is not even a major producer, trader or processor of rough diamonds. Nor is she at war with any rebel group known to be benefitting from such illicit trade. But the country seems to be at war with a different kind of rebels. Crude oil thieves, that is. And in spite of whatever her fighting strategies, she surely needs the type of export-import certification process that Kimberley proposes.

According to Mutiu Sunmonu, managing director of Shell Petroleum Development Company of Nigeria (SPDC), Nigeria loses $5 billion (about N800 billion) annually to illegal oil bunkering in the coastal region of the country.

Speaking at a recent public hearing on oil bunkering organised by the House of Representatives Joint Committee on Petroleum Resources (Upstream) and the Navy, the oil-company chief advised government to form alliances in order to fight the menace which has now gone international.

The United States has also lent its voice in condemning the extent of crude oil theft and environmental degradation in the Niger Delta.

Speaking during the just-concluded US-Nigeria Bi-National Conference in Port Harcourt, the Deputy Assistant Secretary of State for African Affairs, Ms. Cynthia Akuetteh, attributed the rising thievery to low levels of employment and educational opportunities.

The American official was probably referring to the aspect of this robbery that is carried out by a few jobless and highly agitated Niger Delta youths. But it is already common knowledge that there exist some powerful and well-connected syndicates comprising foreign oil firms, top government officials, security operatives and shipping agents which connive with international oil buyers to defraud the nation, often using forged documents. For instance, the Joint Military Task Force (Operation Pulo Shield) raised to protect oil facilities (rather than people) in the region, has recorded several successes at arresting crude oil thieves and local refiners, even as some of its men have also been fingered as being collaborators.

Analysts have recommended that government address the wanton corruption in the petroleum sector through establishing a tougher regulatory framework. And, in addition, there have also been suggestions for the approval of a 10 per cent stake to oil communities, including the checking of pipeline vandalism and illegal refineries through community policing.

Late President Umaru Yar’Adua once likened illegal oil bunkering in the Niger Delta to the trade in blood diamonds during the civil wars in Liberia and Sierra Leone. He was reported to have called for international assistance to help Nigeria stop the trade in what he termed ‘blood oil’.

Indeed, Nigeria needs a coordinated international assistance to tackle this menace, but she has to initiate the move. OPEC is a ready-made platform. And with a clearer US position on the matter, drawing from the Kimberley experience will not be a bad idea, after all.

Ibelema Jumbo

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

11 hours 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

4 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