Good News: Petrol to Sell Cheaper With Niger Import

Nigerians stand the chance to pay less for petrol if oil marketers will turn north and buy from Niger Republic, whose new refinery is just 30 kilometres across the border, as investigations show.

The export price per litre of petrol from Niger’s Soraz refinery is 360 CFA francs, which is equivalent to N114, according to the Niger’s state oil company Sonidep.

In Nigeria, the landing cost of petrol per litre was N124.47 as of November 5, based on PPPRA figures, indicating a difference of about N11 compared to the export price from Niger.

The Petroleum Products Pricing and Regulatory Agency puts expected retail price of petrol imported from Europe and other far-flung countries at N139.96, but with about N44 subsidy per litre, oil sells at N97 per litre around the country.

Industry experts say if petrol is imported from Niger and the same subsidy is paid, a litre could sell in Nigeria at just a little over N80.

Niger’s oil minister is quoted as saying that the Soraz Refinery is currently operating at half its 20,000 barrel capacity, due to lack of patronage from neighboring West African countries including Nigeria.

“Today Soraz produces 10,000 barrels per day, and it’s saying that it is due to a shortfall in the export level,” Foumakoye Gado said.

Sonidep officially set the price of its exported petrol at 360 CFA francs (N114) per litre, however, there have been few takers among the country’s neighbours because prices are not competitive.

“The countries of the sub-region – Mali, Burkina Faso, Nigeria – want to come buy in Niger, but on the condition that they gain something … They have to earn something, even if it’s one franc per litre,” Gado said. He added that the government planned to put in place a panel charged with fixing more competitive price levels for 2013.

But analysts say with the subsidy of N44 per litre factored in, it would be profitable for Nigerian marketers to import from Niger.

Currently, there are no applications from marketers to import petrol from the Niger refinery, though four marketers have already gotten diesel import licenses and have been importing the product for months now.

A Department of Petroleum Resources (DPR) official who does not want to be named said the lack of patronage of Niger petrol is as a result of low confidence on subsidy reimbursement in Nigeria.

“If you look at the industry now, not all marketers are willing to import PMS from anywhere, because there is no guarantee if government is willing to pay the subsidy on the petrol looking at what is going on now in the industry,” the official said.

He said the Federal Government is owing so many marketers billions for subsidy on petrol they imported since early this year. “So importing petrol is no longer a good business for marketers,” he added.

The official said at the moment no application to import petrol is received by the department despite the proximity of the Soraz refinery to major Northern cities like Kano, Katsina, Daura and Zamfara.

Observers say fuel from Niger is too meagre to satisfy the huge demand from Nigeria.

Nigeria has four refineries in Warri, Kaduna and Port Harcourt with a combined refining capacity of 445,000 per day. But the refineries are operating far below their installed capacities due to poor maintenance and pipeline vandalism.

Most Nigerian fuel marketers are importing from Europe and India or buy from the high seas.

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Fuel Subsidy Trial - Uba to Remain in Custody

 Lagos — The Chief Executive Officer of Capital Oil and Gas, Ifeanyi Uba and four other oil marketers standing trial on alleged fuel subsidy scam will remain in the custody of the Special Fraud Unit of the Nigeria Police as a Federal High Court sitting in Lagos yesterday threw out their bail applications.

Uba is standing trial alongside Nsika Usoro, Godfrey Okorie, Chibuzor Ogbuokiri, and Joseph Orji, all of whom are being prosecuted by the Special Fraud Unit of Nigeria Police Force, over allegation of defrauding the Federal Government to the tune of N22.4 billion oil subsidy funds.Ruling, Justice Okon Abang said the bail application filed by defendant counsels was defective and incompetent.

Justice Abang had last Wednesday fixed Monday October 22 for the ruling.Uba's lead counsel, Joseph Nwodike (SAN) had argued that it was undisputed that the applicant had been remanded in custody since October 9 and the respondents should be granted bail because the alleged offence for which they were being remanded is not a capital one.

But in a counter submission, the prosecuting counsel, Godwin Obla, argued that by way of preliminary objection, he was opposing the exparte order made by the court on October 15, ordering that the respondents filed a response within a particular time limit.

He also told the court that he was opposed to the application filed by the applicant's counsel seeking the release on bail of the applicants."Although the applicants were arrested on Oct. 9, the bundle of exhibits was only taken out on October 11, which is the constitutional time allowed for the respondents to hold the applicants. By the provisions of Section 232 of the 1979 constitution, there is no need for an arraignment of the applicants before a remand," Obla said.

The respondents are billed to appear before the magistrate on October 31, 2012.

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Fuel scam: Capital Oil boss, Ifeanyi Uba arrested

 The Special Fraud Unit, Milverton Ikoyi, has arrested  the Managing Director of Capital Oil & Gas Industries Ltd , Mr Ifeanyi Uba, over   alleged involvement of his companies in the fuel subsidy scam.

 

At press time, the  oil magnate who arrived the Unit  in the company of his lawyers  was still being interrogated.His company was indicted by Mr Aigboje Aig-Imoukhuede-led 15-man presidential panel constituted by President Goodluck Jonathan to re-investigate the findings of the report of an earlier investigation panel set up by the Ministry of Finance on fuel subsidy payments valued at over N2 trillion.

But  the management of Capital Oil and Gas Industries Limited  denied  that its managing director was arrested, stating that Uba voluntarily visited the Unit on a routine verification exercise on subsidy claim and returned to the office.

However, when we spoke with SFU’s Public Relations Officer, Ngozi Insitelu, at about 6.30p.m, she simply stated that Uba was still being interrogated over the oil subsidy scam. She could, however, not give detail on why it was taking the Unit long to release him.

At about 7.25pm, we reliably gathered that the oil magnate was still being quizzed by a seven-man detective team. It was also gathered that three management staff of his company were  undergoing interrogation in another room in the anti-fraud unit.

Clad in a blue caftan with a pair of black shoes, Uba, who was in the company of his lawyer, reportedly responded to some of the questions posed to him.It could, however, not be ascertained whether he would be allowed to go home, as sources at  the Unit said the interrogation might take long.

According to sources at the unit, “we are not done with the interrogation.  He may or may not go home today.”

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Indicted oil marketers for trial, says govt

THE Federal Government yesterday gave its word that it would prosecute all oil marketers indicted by the House of Representatives Ad-hoc Committee on the probe into the management of petroleum subsidy.  Apparently in line with this resolve, President Goodluck Ebele Jonathan yesterday established a 15-member committee to verify and reconcile the findings of the technical committee set up by the Federal Ministry of Finance to conduct a detailed review of all subsidy claims and payments made in 2011.

Also, the Deputy Speaker of the House of Representatives, Emeka Ihedioha, has stated that the House would remain focused in spite of plots orchestrated by some forces affected by the oil subsidy report to distract the House from its legislative duties and oversight functions.

He noted that the N422 billion uncovered recently by a committee set up by the Federal Government as over-payment of fuel subsidy to oil marketers was a tacit reaffirmation of the report of the House on the mismanagement of oil subsidy funds.

The deputy speaker spoke on Wednesday when the Human Rights Writers Association presented him an award as the most friendly human rights politician in the country at his office in Abuja.

But   a member of the House, Simon Arabo, yesterday expressed outrage over the methodology employed by the House Committee on Ethics and Privileges in carrying out the investigative hearing on the $3 million allegedly collected by embattled former Chairman of the ad-hoc committee on subsidy regime, Farouk Lawan.

Raising a point of order bordering on privilege, Arabo, a lawyer, also criticised the committee Chairman, Gambo Dan-Musa who, according to him employed the use of uncouth language when he presided over the panel at the end of the closed-door session with business mogul, Femi Otedola on Tuesday.

The lawmaker told his colleagues that the modus operandi and hot exchange and other misdemeanor which transpired between the members and Otedola during the investigative panel were capable of rubbishing the credibility of the assignment aimed at ascertaining the veracity of the claims made by Otedola.

The Attorney-General of the Federation and Minister of Justice, Mohammed Bello Adoke (SAN) who reiterated government’s commitment to the fight against corruption, however, said it would comply with the rule of law in bringing indicted oil marketers to book.

The AGF who expressed this position through his counsel, Chief Adegboyega Solomon Awomolo (SAN) said that  “no fact-finding committee can indict a person except the police, the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offenses Commission (ICPC).”

Adoke also used the opportunity to debunk a publication in one of the national dailies which suggested that government would not prosecute the indicted oil marketers, describing it as untrue and misleading.

He stated that the report of the Farouk Lawan-led House of Representatives Committee on the probe of petroleum subsidy, “is not useless but a foundation for further investigation” by the relevant agencies of government like the police, EFCC and the ICPC.

According to the minister, any person who commits any criminal offence would be investigated and if found wanting by any of the investigating agencies, would be prosecuted by the Federal Government in the court of law and if found guilty, they would be jailed.

He said: “If next week the report of the investigating agencies on any of the oil companies indicted by the House of Representatives Committee is out and it is reliable and conclusive, the Federal Government will go to court and prosecute the company.”

However, the AGF said that he would not take any step that could go contrary to the rule of law, adding that the Federal Government takes the issue of corruption seriously and must not compromise on fraud matters where they exist.

According to him: “The principle of rule of law is a strong pillar upon which this government operates and that means that where parties have turned their case to a court of law; parties will not take laws into their hands but stay actions till the final determination of the case by the court.

“The Federal Government will prosecute all those found culpable of corrupt practices on the basis of the investigations of competent statutory agencies vested with powers to conduct criminal investigations and prosecution will commence thereafter.

“The present suit instituted by Integrated Oil and Gas Limited does not in any way fetter the powers of the agencies investigating the matter, it does not restrain the government from prosecuting and recovering money due to the Federal Government by marketers found culpable of violating the laws of the land.

“The Honourable Attorney-General of the federation will not condone corruption and illegality but will always stand by the rule of law and due process at all times.”

President Jonathan has directed the 15-member committee headed by Mr. Aigboje Aig-Imoukhuede to begin work immediately and conclude its assignment by July 13, 2012 as a prelude to immediate action on all identified cases of fraud.

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Subsidy scam: Rep insists on Diezani’s resignation

A member of the House of Representatives, Mr. Robinson Uwak, on Thursday repeated his call on the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, to resign her appointment following the uproar over the N1.07tn fuel subsidy scam.

Uwak had made the same call on the floor of the House on Wednesday but was overruled by the Deputy Speaker, Mr. Emeka Ihedioha, who presided over proceedings.

Raising a matter on privilege, Uwak argued that as the supervising minister of the oil industry, Alison-Madueke should resign immediately.

He stated that the House appeared to be “shielding” the minister by not recommending her resignation.

Uwak’s position, which received the support of most lawmakers at the session, was overruled, leading to protests in the chambers.

But, on Thursday, Uwak, who represents Oron Federal Constituency, Akwa Ibom State, still demanded the minister’s resignation.

He said, “I must state here that Nigeria is bigger than any single individual or group and we as Nigerians are periodically called upon to make sacrifices for the good of the nation.

“Nigerians are aware that a monumental fraud has occurred in the petroleum industry.

“Therefore, it will be shocking that anyone charged with managing this sector should remain in office.”

Though his effort to get the backing of the House was scuttled, the lawmaker told a news conference in Abuja on Thursday that many Nigerians had been calling him since Wednesday to express their gratitude.

Uwak noted that from the findings of the Ad-hoc committee on Monitoring of the Subsidy Regime, there was a “lack of will on the part of the ministry to tackle the problems in the sector”.

He added, “That is why I have to reiterate my position and again urge the minister to do the honourable thing and step aside for the good of the nation.

“This is a national issue; it is not sectional or ethnic.

“It is said that it is only when brave men keep quiet that corruption thrives.”

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ACN asks Jonathan to apologise, revert fuel price to N65

The Action Congress of Nigeria (ACN) has asked President Goodluck Jonathan to apologise to Nigerians for his government’s ill-advised removal of the so-called fuel subsidy in January, saying the report of the House of Representatives Committee that probed the management of the subsidy had shown that the removal was an egregious error of judgement that had left Nigerians feeling swindled by their government.

“Against all informed pieces of advice, even from well-informed industry insiders and analysts, President Jonathan approved the removal of fuel subsidy and went ahead to defend it. Well, the President is human and therefore can also be wrong. But when he is, as it has now been proved, he should be humble enough to admit it and apologise,” the party said yesterday  in a statement by its National Publicity Secretary, Alhaji Lai Mohammed.

It said after the apology, the President should then revert the fuel price to the pre-January price of 65 kobo per litre and then proceed to implement the recommendations of the committee without delay, especially the prosecution of all indicted persons and companies.

ACN also said whether or not the committee recommended such, the President should fire all those who advised -or misadvised – him on the fuel subsidy issue, especially the officials who wasted public funds in organising the charade called stakeholders’ meetings which, as it turned out, was an orchestrated scam, as the decision to remove the subsidy had already been taken.

“In more-civilized climes, those who bandied spurious figures to Nigerians and hinted that the economy would collapse if the subsidy was not removed – would by now have tendered their resignations – with apologies – over the discovery that what the government has been subsidizing over the years are corruption and inefficiency, not fuel.

“The sectional groups who threw their weight behind the fuel subsidy removal, for no other reason than that the President is their ‘son’, should also have repeated the adverts they placed in the newspapers, but this time repudiating their earlier adverts and apologising to Nigerians.

“Since honour is in short supply here, and these people are ready to carry on as if nothing has happened, the President should show rare courage by sacking all those he has the power to sack, and recommending the removal of those he cannot single-handedly remove. Any action short of the above will be a joke which Nigerians are not ready to accept,’’ the party said.

It said though many Nigerians have expressed shock and anger at the report of the House Committee, especially the huge payments made to unknown and unqualified fuel importers and the recommendation that the NNPC, PPPRA and some oil marketers should refund over 1 trillion naira, the party is not surprised that things have turned out this way.

“In statements after statements, we told the President that there is no subsidy on fuel, and that what the government claims to be subsidising are corruption and inefficiency. We quoted informed analysts, who proved – with facts and figures – that the average true price of a litre of fuel is N34.03. We suggested ways in which the government can truly deregulate the sector without inflicting untold hardship on Nigerians. But in the end, as always, the government ignored all the interventions and went ahead with its pre-meditated action.

“Nigerians were made to pay for the corruption perpetrated by a few fat cats in the name of fuel subsidy, and a government with the primary responsibility of ensuring the well-being of its citizens inflicted untold pain on them in the new year, as the prices of goods and services shot up in the wake of the fuel price hike and many who had travelled for the holidays were stranded for days. Someone has to pay for this fraud perpetrated against Nigerians,”ACN said.

The party commended the civil society groups and individuals who have vowed to ensure the implementation of the report, and promised to also ensure that the issue is kept in the front burner.

“No amount of intimidation, through the deployments of armed policemen to places of possible protests, can stop Nigerians from asking questions and demanding answers after the exposure of the knee-deep rot in this critical sector of the economy. Those who have been elected to lead must justify the peoples votes before asking for their support again. That is the essence of leadership,” it said.

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