Tag: NNPC

  • Drama, reality and illegal refineries – By Dakuku Peterside

    Drama, reality and illegal refineries – By Dakuku Peterside

    By Dakuku Peterside

    The debate about politicians being among the best actors on earth is as old as humanity. What makes acting in politics so attractive is its subtle nature, emotional appeal and the interplay between human perception, real-life challenges, and human vulnerability. At the centre of all political drama is symbolic and connotative communication, where the unsavvy audience are fed, albeit subtly, messages that the subconscious assimilate, which concretises existing conceptualisations, create new meanings or re(shape) perceptions. Just as Soyinka’s seminal drama, “The Trials of Brother Jero” used an intricate web of plot, setting, and character to communicate the hypocritical nature of religious activists in Nigeria, political drama manipulate the plot and character to advance a metaphor of strength, growth, or decay.

    We get a glimpse of politicians’ political drama from time to time in Nigeria. Remember Chief Festus Okotie Eboh, Gov Ayo Fayose, Senator Dino Melaye and other respected leaders who are potential Oscar award winners., Recently, politicians and political leaders have acted more political drama than addressing the issue of crude oil theft and its corollary, illegal refining. Unfortunately, this issue for which we prefer drama to making hard leadership decisions profoundly affect the economy, environment, public health, and social cohesion. Let us x-ray this political drama scene by scene and identify the symbolisms of the drama, the characterisation of the political “Jeros”, and possible solutions to the problems of crude oil theft and illegal refining.

    Scene 1: This scene opens with the setting of the creeks of Niger Delta, littered with a network of pipelines and induced illegal tampering of oil pipelines from base to terminals by criminals who are bent on stealing crude oil. The protagonists are youths who blame poverty, unemployment and exclusion of their communities from tangible development initiatives as reason for their actions. These youths have collaborators and benefactors in these nefarious activities. We must confront pertinent questions whose answers have ramifications for Nigeria: What is the plot? Who are the heroes and the villains, and what is the impact of their activities on the oil sector by extension national economy? What is the actual volume of crude oil stolen every day and every month? Who are the thieves and their sponsors?

    NNPC figures for stolen crude from January to December 2021 and NUPRC (formerly DPR) figures for Jan-December 2021 differ. It ranges from 115,000 to 300,000 barrels per day(bbl/d). This estimate translates to between 42m to 110m barrels of crude oil per annum. At an estimated price of $90 per barrel, these amount to between $3.8b and $9.9bper annum. Stolen crude at its peak is more than the amount of crude oil produced in three African countries Viz Ghana, Cameroon and Chad . This oil is stolen from the pipelines linking wells to terminals. More baffling is the fact that billions of Naira is spent annually to protect this same network of pipelines. This volume of stolen crude implies that we cannot meet our OPEC quota and are losing trillions of Naira to some smart boys in the creeks with consequential impact on the economy. We were producing 2mbbl per day in the past, but today we are doing only about 1.3mbb per day due to crude oil theft. The unknown “thieves” have always gotten away with their loot from early 2000 to date. These raise multiple questions for which there are no answers yet. . Just imagine what $9.9b, if properly managed, could do in our communities – the number of roads, hospitals, schools, and other infrastructure that it would have built. This does not even take into consideration, the environmental degradation, associated risk and their impact on our livelihoods.

    Scene 2: The second scene opens with big foreign vessels/badges in the high seas carting away some of the stolen crude oil overseas to foreign refineries. It is estimated that eighty per cent of the stolen oil is exported, while the balance of 20 per cent goes into illegal refining in “refineries” dotting the landscape of the Niger Delta creeks. The vessels and the illegal refineries are very conspicuous and visible to be noticed yet, these illegal operations have been going on without any significant challenge from Government or governmental institutions including security agencies.

    It is noteworthy that all these areas this crime against Nigeria is perpetrated have naval and marine police presence, yet the thieving of crude oil has been going on in the past 20 years. It is alleged that some security personnel connive with and even protect the criminals and the gangs operating these illegal activities. The activities of these hoodlums have been known for a long time, but the political will to stop them has not been present. How can it be that in the past years, since these criminal activities have been in the public domain, not a significant number of criminals engaged in this have been caught, arraigned, prosecuted, and incarcerated if found guilty? Crude oil theft and illegal refining generate illicit wealth that fuels drugs consumption, arms proliferation, and criminal gangs.

    Scene three: It opens with the devastating environmental pollution and deadly soot caused by these illegal refining activities within the major cities and villages in Rivers and Bayelsa states. Soot is a deep black powdery or flaky substance consisting mainly of amorphous carbon, produced by the incomplete burning of organic matter such as crude oil. This phenomenon has been on for about seven years but has gotten worse from 2016 to date. I dealt extensively with this issue of soot in two editions of this column on 27 December 2021 and 3rd January 2022 under the title, soot and our collective conscience. Despite the enormous health implication and the damage to the economy of immediate impacted states and the country, both the federal government and the impacted state governments did little or nothing to solve the problem for over six years.

    The Rivers State government, a major impacted state, through its ministry of the environment, set up a technical committee to investigate the soot issue. It produced and submitted a technical report in 2017/2018, yet nothing was done about it. Local citizens set up a pressure group and campaigned both locally and internationally to get the world’s attention to the issue, yet nothing significant happened. The group, led by Eugene Abel sued the Federal Government of Nigeria for this monumental neglect of the lives of Rivers State residents because it has not tackled the soot problem. Local citizens and civil society organisations pushing to hold the Government responsible for solving this environmental problem are ongoing and exacerbating.

    Scene 4: Enter Gov Nyesom Wike. In his ecclesiastical and messianic approach to dealing with things suddenly woke from slumber after six years of doing nothing about the soot and swept in to rescue Rivers State from the danger of Soot, a consequence of illegal refining activities. Maybe spurred by the sting of our earlier articles on soot, Wike developed a burning desire to create an imagery of a working governor solving the problems of citizens of his state. The melodrama started. He marched into the Niger Delta creeks, like a Tarzan, with cameras rolling and journalists writing and security men brandishing AK47’s. The sudden haste to bulldoze down illegal refineries and blame the soot problem on everyone but himself as the governor responsible for the state will make one think that illegal refining and the soot problem started in 2022. Although I am happy that something is being done, at least for now, it is evident that these actions are not driven by altruistic intentions.

    The symbolism of Gov. Wike’s drama is not lost to us, such that even an uncritical mind can see through it. Swearing in front of the camera that he will deal ruthlessly with the people that steal and refine crude oil illegally, crisscrossing the creeks, physically pulling down some of the illegal refinery structures is drama taken too far by Wike. It begs the question, why now? Wike’s desperation to add to the false narrative and perception of the “action governor” and the dialectics of 2023 elections are very clear in the minds of the discerning, and the people cannot be fooled all the time.

    The truth is that the triumph of illegal refineries and the consequential soot plague is the product of criminal collusion between the Government, security agencies at many levels and the communities . It also has links with the collapse of our official refineries which has persisted for three decades .

    A responsible governor, prioritizing environmental stewardship and public health above political patronage and electoral conquests, would have declared an emergency on illegal refining and its related effect, soot in 2016. The problem of illegal refining and soot plague became aggravated in 2016, and the perpetrators were allowed to develop this alternative economy that was lucrative to locals. This economic boom feeds into the sense of entitlement to proceeds of crude that is predominant locally.

    This crime was an open secret, and everybody knew about it, including the governor. Gov Wike looked away as the boys doing this criminal business became wealthy, and he enjoyed their support. Even local people know it’s an intricate web of political interplay, economic interest and multilayer compromise by many actors.

    Having established the interplay of forces at work, It is now more critical than ever that the Federal Government shows real commitment to tackling the twin evil of crude oil theft and illegal refinery. A national roadmap with explicit definitive action is needed beyond setting up task forces that will not yield any result. A cocktail of actions is required and urgently, from awareness creation , surveillance, security, and regulatory enforcement to environmental remediation actions. Fortunately, the NIMASA Deep Blue project can be expanded and strengthened to take up the additional responsibility of tackling illegal refining,deploying technology. The Federal Ministry of Environment has been too silent and absent in the problem of soot arising from illegal refineries . Federal Government should deal with the issue of compromise and collaboration by security personnel and restore the trust of Nigerians in our security personnel and architecture.

    Affected States cannot pretend to be helpless. They have primary responsibility for the security and protection of the environment and land administration. States should enforce their environmental laws and must work in synergy with the Federal Government and local communities to tackle these evils and not play theatrics with them. They should start with a massive enlightenment campaign on the dangers of illegal refining within the communities, enforce existing laws and assure them of providing enabling environment for an alternative economy to replace the illegal economy created by illicit stealing of crude and refining. Impacted and affected communities need to understand that they have a role in tackling illegal refining. They should resist the temptation of allowing politicians to use their livelihood and environment as a chessboard.

  • NNPC expects 2.3 billion litres of PMS to stabilise distribution

    NNPC expects 2.3 billion litres of PMS to stabilise distribution

    The Nigerian National Petroleum Company (NNPC) Limited started its week with an assurance to Nigerians that the distribution of Premium Motor Spirit (PMS) would soon normalise after it recalled the bad product imported into the country last week.

    The NNPC Group Executive Director (GED) Downstream, Adetunji Adeyemi, gave the assurance at a briefing in Abuja, while concerted efforts were being made to end the challenges in the supply of petrol.

    Adeyemi stated that the company was expecting over 2.3 billion litres of Premium Motor Spirit (PMS) in the country by the end of February and that over 1 billion litres of the product were currently being distributed nationwide.

    He assured that the product being dispensed at various filling stations in the country was safe, as the expected 2.3 billion litres would restore the sufficiency level above the national target of 30 days.

    Adeyemi explained that in order to accelerate PMS distribution across the country, the company had commenced 24 hours’ operations at its depots and retail outlets.

    He disclosed that NNPC had constituted a monitoring team, with the support of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other security agencies to ensure smooth distribution of PMS nationwide.

  • Insecurity: CDS, governors of oil producing states meet to proffer solution

    Insecurity: CDS, governors of oil producing states meet to proffer solution

    The Chief of Defence Staff (CDS), Gen. Lucky Irabor and governors of oil producing states on Friday, met to discuss ways to addressing the prevailing security challenges affecting oil production in the country.

    Irabor, while welcoming the governors, expressed the Federal Government cooncern about the trend in the security situation in the oil producing states, saying the meeting was at the instance of President Muhammad Buhari.

    He said that the meeting was in the light of the current challenges that in the oil and gas sector, adding that the nation was currently bleeding and thought it necessary to reverse the trend.

    He said he decided to lead all the heads of security and intelligence agencies as well as the group general manager, Nigerian National Petroleum Corporation (NNPC) Limited to the meeting with the governors.

    “So, given that the issues demand quick action, as mandated by Mr president, we have come to engage with you and the requirement would involve the whole of society.

    “So, as critical stakeholders in Niger Delta, we believe that our framework would come up with two people at the door to address the current issues, you will be playing critical part.

    “It is for this reason that we have chosen to engage with you, as directed by Mr President,” he said.

    Irabor expressed the belief that the outcome of whatever approach they came up with would be a win -win for every Nigerian.

    Responding on behalf of the governors, Gov. Ifeanyi Okowa of Delta, commended the CDS for convening the meeting, adding that the governors were also worried about the happenings in oil facilities around the states.

    Okowa said the governors knew that there had been challenges, saying there had been a sharp drop in oil production from the various facilities.

    He said the meeting would give them the opportunity to share ideas with the various agencies of government in charge of security and those in charge of the management of various oil companies in the nation.

    The governor said the meeting would provide them the opportunity to see how the states could collaboratively work with security agencies to check the excesses of those involved in oil bunkering and other crimes in the region.

    “I do think that this collaboration is a very welcome idea and that it will give us the room for even greater collaboration because it requires a stakeholders’ approach to this very challenging issue.

    “As for us, the more oil and gas we are able to produce the better for our states because to a very large extent it will improve the revenues that we have from federal allocation.

    “And beyond that too we do believe that if we are able to put a stop to what is going on in our environment, it will be a lot more cleaner than what it is.

    “This is because outside the economic challenge we also do realise that the issues that are currently going on are actually those that affect the health of our people.

    Newsmen reports that the governors of Delta, Akwa Ibom, Bayelsa, Rivers and Abia were present, those of Edo, Imo and Ondo were represented by their deputies.

    Also, heads of security and intelligence agencies present were the CDS, Inspector General of Police, Directors-General of the Department of State Services, National Intelligence Agency and the Chief of Defense Intelligence.

    Others are the Controller-General of Nigeria Security and Civil Defence Corps as well as the NNPC Group General Manager and other top officers.

    The meeting is being held behind closed door as at the time of filing this report.

  • NARTO, NUPENG-PTD suspend planned strike as NNPC intervenes

    NARTO, NUPENG-PTD suspend planned strike as NNPC intervenes

    The Nigerian Association of Road Transport Owners, National Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum Tanker Drivers (PTD) have suspended their planned strike after an intervention by the NNPC Ltd.

    The parties also pledged collaboration on ensuring nationwide availability of petroleum products.

    The suspension notice was made known in a communique following a critical stakeholders engagement between the NNPC Ltd., the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), PTD, NARTO, and NUPENG on Thursday, in Abuja.

    The communique was jointly signed by Malam Mele Kyari, Group Managing Director, NNPC, Otunba Salmon Oladiti, National Chairman PTD , Mr Yusuf Otthman, NARTO President Comrade Williams Akporeha, NUPENG President and Abiodun Adeniji, Executive Director, Finance and Admin, NMDPRA.

    NUPENG and PTD had declared to embark on strike based on its investigations which revealed that officials of the Federal Ministry of Works and Housing were currently diverting the fund provided by NNPC Limited for the rehabilitation of 21 critical highways.

    On Road Rehabilitation, the communique said NNPC provided updates on the current status of the road construction and rehabilitation projects under the road infrastructure tax credit scheme.

    It said the NNPC assured the stakeholders that the funding earmarked for the 21 critical roads would be applied for the intended purpose only.

    ”To allay the fears of the stakeholders, NNPC and all parties commit to working together in the monitoring of the road projects,” it stated..

    On review of freight rate for transporters, the communique noted that the stakeholders requested for completion of the ongoing discussion on the review of the freight rates to cover operational costs.

    It noted that the stakeholders highlighted the precarious situation that truck owners faced in the light of current economic realities.

    It further noted that the NMDPRA informed the meeting that a committee was constituted to review the rates which included PTD, NARTO and NUPENG in addition to other stakeholders.

    It stated that all parties agreed to work expeditiously towards concluding the review of the freight rate and make recommendations to the Government.

    According to the communique, the Authority is to advise on definite close-out date during the week of Feb. 21.

    ”The parties also agreed to foster collaboration on ensuring nationwide availability of petroleum products.
    ”All parties agreed to work closely to ensure efficient distribution of petroleum products across the country,” it stated.

  • Queue to disappear at filling stations by next week – NNPC

    Queue to disappear at filling stations by next week – NNPC

    Chief Executive Officer of Nigerian National Petroleum Corporation, NNPC Limited, Mr. Mele Kyari said that the lingering fuel crisis and its attendant queues at the filling stations will ultimately disappear next week.

    Kyari said that there was already a receipt of 2.1 billion liters which would be distributed to normalize the situation.

    Kyari offered the hope at a meeting with the House of Representatives Committee on Petroleum investigating the circumstances surrounding the importation of adulterated fuel into the country.

    He said: “This National Assembly created the NNPC limited. By God’s grace, I am the CEO of that company. This company will serve the Nigerian people

    “By law, it is required to ensure energy security. Therefore, it is our responsibility to ensure that we provide energy security for this country. This company must operate within the laws of this country and this is what we have always done, and this is what we will continue to do.

    “For this current situation, I assure you that we have taken every necessary step to restore supply into this country. We have placed orders significant enough for us to cross into March, with at least 2.1 billion liters of PMS in our custody.

    “The situation you’re seeing today, I can assure you that by next week, it will vanish. All things being equal because of distribution issues that we may not have control over including the movement of trucks, otherwise we have robust supply arrangement to make sure that we exit this issue.”

    No single liter of PMS is processed locally

    Giving a background process of fuel importation in the country, Kyari regretted that all the fuel consumed in Nigeria was imported.

    He explained that the situation will persist for a long time to time unless the refineries were upgraded.

    “Why do we have this challenge? First of all, we import all the gasoline we use in this country. Every petroleum product we use in this country is not locally processed except a few quantities. Some of them, I can also share with you are coming from sources that may not be illegitimate. Not a single liter of PMS is generated in the country. That means 100 percent of PMS you see in this country is imported. Those imports are done on the basis of existing contractual arrangements that we have. It’s called the direct sale direct purchase process, which is simply with the best of practice to enable our suppliers supply products to us on agreed terms and conditions.

    We have been doing this since I came on board and it’s part of our supply mechanism.

    “Even if all our refineries come up today, except dangote refinery, we will still be in short supply of PMS, because all of our refineries can only make 18 million liters of gasoline. Consumption is certainly above 18 million liters”, he said.

    Evacuation of toxic fuel

    The CEO also explained to the Committee that the specification of the imported was established in consonance with the current regulatory mechanism.

    “Evacuation from depots, we know all the trucks that leave our depots, but we do not know where they end up. This is reality. There is no tracking mechanism to enable this. We also know that some of these products find their way in places that may not be in this country. I don’t have statistics to back this up, but I’m sure smuggling takes place.

    “On the basis of those contracts our suppliers bring products to us and reconcile with them regularly. Part of those supply arrangements, is to give specification to your suppliers. This specification are bound by regulation and the latest that we are using is the one that is in place since 2006. The current specification we have is what is the subject of all our import arrangement. So, all our partners were given those specification and on the basis of this, those imports were made.

    “Before a vessel leaves the load port, they have to declare that those vessel meet our specification. They will send it to COMD, the importer and confirm that this is the specification to do, this product that we are bringing to you meets this specification. On the basis of that, you allow the sail away of the vessel.

    “Now once it comes to the country, two things happen. We have NNPC surveyors who are now also required to validate that this product that have come meets the Nigerian specification. Also, we have the regulatory authority who has to conduct an independent assessment to confirm that this product meets the specification that is in consonance with the existing regulation in the country.

    Why we allowed cargeos to discharge product

    “In case of all the problems we have seen, four of the cargoes that are particularly in question today met all this criteria on arrival and that’s why they were allowed to discharge into terminals and conveyed into ship. There’s simply no way based on the current specification that you will know this PMS contains methanol. It is not part of their requirements at the load port. So we didn’t ask them to declare whether it contains methanol because it is not part of our specification.

    “Let me make it clear that methanol is not contamination. It is a regular addictive to PMS. In China, upto 15 percent PMS contains methanol. On its own, it is not a contamination. The key issue is handling methanol. If we, knew we will not accept this. Anytime methanol comes in contact with water, it emulsifies. It turns into a different chemical.”

    While highlighting a few challenges, Kyari said that NNPC limited rejected 5 vessels billed to come to Nigeria with the product from the same terminal abroad.

    “We have a number of challenges. On depots in the country today, once you evacuate products from the land, you pack it with water because of our peculiar environment. I need to disclose to you that people pack it with water because once you leave PMS in the land, some people will tamper with it. No one does that except NNPC. You can cross check this. Every depot has a way of managing this water that comes into the facility. Every filling station in this country have a challenge of managing water.

    “We didn’t know until our inspecting agents on 20th of January to be precise called our attention to the fact that it has seen emulsification in some of the depots and this maybe a cause of concern. That is how we went ahead to check all the deliveries in our hands from all the four vessels that came that have already discharged and to confirm that all of them contain methanol.

    “We quarantined all the volumes wherever they are in depots and transit. We were able to track them. We were able to trace all of them and quarantine them.

    “Not only that we are also expecting several other supplies to come from other sources, we checked their origin and confirmed that five other vessels are coming from the same shipping terminal that loaded this and we rejected all of them. They did not sail into our waters”, he said.

    Earlier in his welcome address, the chairman, Committee on Petroleum Resources Downstream, Hon. Abdullahi Mahmud Gaya said the investigative hearing was called by the House at plenary to identify the possible culprits, bring them to justice and forestall future occurrences.

    “The essence of today’s gathering is to elucidate the current fuel scarcity which has a negative impact on the people. As we are all aware, fuel queues has recently caused gridlock in most of our major cities affecting traffic movements. Some fuel stations are locked while the few that are open have long queues of motorist waiting to buy fuel.

    “This situation is not different in the capital city, Abuja, and our major cities where the majority of filling stations are shut and motorists spent hours in the sun struggling to buy from few that are open.

    “It is a fact that these problem is as a result of the importation of adulterated Premium motor spirit (PMS) which is confirmed to have high percentage of methanol.

    “Even though methanol is a regular additive in petrol but it is usually blended to acceptable quantity. The recent supply are in excess of this additive of which its resultant consequences is injurious to our fragile economy and the generality of our citizens.

    “The House of Representatives at plenary expressed much concern over the development and mandate the committee to conduct investigative hearing on the matter.

    “I therefore call on the Group Managing Director, NNPC Ltd to respond on the resolution of the House, viz investigate the release of adulterated Premium Motor Spirit across the country with a view to ensuring that culprits are brought to book as well as make recommendations towards curbing a reoccurrence of such incident.”

    The chairman added that the Committee will still interface with the four companies identified as the suppliers of the bad fuel in due course.

     

  • Adulterated PMS: Fuel scarcity bites hard in Abuja, Lagos

    Adulterated PMS: Fuel scarcity bites hard in Abuja, Lagos

    Some commuters in the Federal Capital Territory (FCT), have decried increase in transportation fares due to fuel scarcity, making movement in the territory difficult.

    The commuters on Wednesday lamented that their greatest challenge was finding commercial vehicles to their destinations, especially to their places of business or work.

    They said this might be because most of the taxi drivers were either on the long queues in petrol stations or were off the road due to no petrol.

    They therefore called on the authorities concerned to speedily intervene to bring the situation back to normal as many Nigerians were suffering.

    Mr Calistus Emeka, who lives around Mararaba axis, said he had to pay N400 from his area to Wuse area, instead of N200.

    Emeka said as a cleaner, working at the Secretariat, his salary was meager and he could barely afford to continue to pay the increased fare.

    According to him, if nothing is done soon, he may not be able to go to work in the coming days.

    Mr Gabriel Oko, who also lives along the Mararaba axis, said he had to stand by the road side for hours to get a vehicle to work.

    Oko said: “Before getting to town from my area, I stood for hours waiting to get a taxi and could not find one, I had to take a bike to a certain point before getting a taxi.

    “This situation is very pathetic, even with your money, you cannot get a vehicle to convey you to your destination. I just pray this does not linger for a long time.”

    Ms Agatha Sule, who lives along the Gwagwalada axis, said she used to pay N400 to Area 1, but due to the lack of fuel situation, she paid N700 to town.

    “I know there is fuel scarcity in town but I was not prepared for the increased cost of transportation.

    “I work as a secretary in my office. If not for the fact that I have my office keys with me, I would not have gone to work today.

    “This increase is just too much. How do they expect very low income earners like us to survive?

    “The problem is that we are the ones even feeling this pain more.”

    Mrs Lucy James, another commuter, said she paid N350 from Apo axis to Wuse unlike the usual fare of N250.

    James prayed that relevant authorities would intervene, saying this was posing a great challenge for many Nigerians.

    Another passenger who lives in Kubwa/Dutse axis, Theophilus Ada, said the cost of transportation to town had also doubled within the past two days.

    In a similar vein, Mrs Joy Benjamin, a Civil Servant, said she was forced to buy 10 litres of fuel from black market at N5,000 to get to work.

    Benjamin said she had to do that because many fuel stations were not selling the product and the ones selling had very long queues and she did not have time to wait.

    Meanwhile, some motorists who spoke with NAN, revealed that some major fuel stations preferred to sell the product to black marketers who paid them extra money to get it.

    According to Mr Maurice Nze, the attendants have taken advantage of the situation to hide the fuel in the morning time, only to dispense it at night to black marketers.

    “A good number of filling stations are hoarding their products in the day time, but sell it at night to make more gains, this act has contributed to the suffering we are now witnessing.

    “I want to appeal to the government to set up a taskforce to check activities of some of these filling stations both during the day and at night,” Nze appealed.

    A taxi driver, Mr Rufus Nwafor said he spent close to three hours at the station to get fuel.

    According to Rufus, the scarcity is really affecting their business because even after spending so much time at the station to get fuel, passengers find it difficult to pay.

    “We have increased the fare, not because the price has changed at the station but because of the time we spend trying to get the fuel.

    “We are not happy increasing the fare but we have to find a way to make up for the time wasted trying to get fuel.”

    Another taxi driver, Mr Bolanle Segun said he had to buy black market this morning because he could not get fuel at the station.

    Segun said: “This day I do not force anybody to enter my vehicle, if I tell you the price and you are not ready to pay, I will not carry you.

    “This is because we spend hours trying to get fuel and today, just when it was close to my turn to buy, the attendant said the fuel has finished.

    “I had to go and buy from black market along the road side because my tank was empty.’’

    NAN reports that the Nigerian National Petroleum Corporation Ltd. (NNPC) on Tuesday said it distributed one billion litres of safe Premium Motor Spirit to various fuel stations nationwide.

    The NNPC also noted that 2.3 billion litres of PMS will arrive Nigeria before the end of February to address the current situation and restore sufficiency.

    Similarly, black marketers on Wednesday took advantage of the lingering scarcity of Premium Motor Spirit (PMS) to make brisk business from residents and motorists in Lagos State.

    The ongoing scarcity of PMS, also known as petrol, is due to the withdrawal of the off-spec products imported into the country from the market.

    A NAN correspondent who monitored the situation at Oshodi, Ojota, Ikeja, Mushin, Surulere, Iyana-Ipaja, Abule Egba and Lekki observed that many filling stations were still not selling petrol.

    Long queues were seen at the few stations selling, with both private and commercial motorists as well residents besieging them as early as 5a.m.

    The vehicular queues led to traffic gridlock on some major roads across the state, especially on the Lekki-Epe axis.

    Black marketers with various sizes of kegs were seen hawking petrol within a few meters of the filling stations.

    Their operations were noticeable in areas such as Ikorodu Road, Mushin, Mobolaji Bank Anthony Way and Surulere.

    Some of the marketers were selling a litre of fuel for prices between N180 to N250 per litre depending on the location, demand and negotiating skills of the buyer.

    A commercial bus driver, Mr Wasiu Oyeleke, told NAN that he bought 10 litres of PMS for N2,000.

    “Yesterday, I could not get fuel after I closed for the day and none of the stations in my area is selling.

    “I managed to buy from these boys (black marketers) in Mushin which I am using now,” he said.

    Another commercial bus driver, Mr Emma Udoh, told NAN that he was offered 20 litres of fuel for N3,600 by one of the black marketers but he refused.

    He said: “I remember my last experience in their hands when I bought fuel from them and nearly destroyed my car.

    “I have been here for almost three hours and will wait until I am able to get fuel but it is very frustrating for all of us.

    A tailor, Mr Anu Ayorinde, said operators of small businesses were also suffering from the petrol scarcity due to epileptic power supply by the electricity Distribution Companies.

    Ayorinde said they had to get fuel from the black market for their generators, rather than wait on the queue for hours and be unable to deliver jobs on time for their customers.

    The Nigerian National Petroleum Company Ltd. had in a statement issued on Tuesday said it had put measures in place to accelerate nationwide distribution of PMS.

    The NNPC said the distribution was disrupted by the quarantine of methanol blended petrol.

    The company said it had began 24-hour operations at its depots and retail outlets, adding that it had over one billion litres of certified PMS stock that was safe for use in vehicles and machineries.

  • National Assembly summons NNPC over  biting fuel scarcity

    National Assembly summons NNPC over biting fuel scarcity

    Members of the House of Representatives are set for a high-powered meeting with the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Limited, Mele Kyari over the importation of adulterated petroleum motor spirit (PMS) into the country and the effects.

    Also, the Chief Executive Officer of NNPC Midstream petroleum regulatory agency, and other officials of the agency are expected at the investigative hearing slated for 10am on Wednesday.

    Group Managing Director, Nigerian National Petroleum Corporation, Malam Mele Kyari

    Meanwhile, the lawmakers have expanded the scope of the investigation to why long queues still persisted at the filling stations.

    Tempers had frayed in the House last Thursday over the recent importation of adulterated PMS into Nigeria, which had caused a crisis across the country.

    Ndudi Elumelu, the minority Leader of the House, raised a point of order to decry the hardship caused by shortage of fuel in the Abuja metropolis drawing from his experience.

    http://saharareporters.com/2022/02/16/national-assembly-grill-nnpc-managing-director-others-over-biting-fuel-scarcity

    Elumelu was quoted as saying, “I wanted to come under Order 8 Rules 4 and 7 for us to discuss this issue of lingering fuel crisis in Nigeria. I agree that the NNPC said they had enough but it (the situation) does not seem to tally with their submission that they have enough fuel. There are still some lingering fuel crises in the whole of Nigeria.

    http://thenewsguru.ng/news/fuel-scarcity-moman-directs-members-to-operate-jetties-depots-18-to-24-hours-daily/

    “Today, it was even difficult for me to get here because all the roads are totally blocked by those wanting to get fuel, and there is no fuel. There is already an existing committee saddled with the responsibility of investigating the issue of adulterated fuel.

    “So, I was thinking if we can take it and refer it to them as the House deems fit. We should find out whether there is an interim report to that effect, with the assignment that the House has given to that committee to do.”

    read also http://thenewsguru.ng/news/nnpc-allays-fear-over-fuel-scarcity/

     

  • Fuel scarcity: NNPC commences 24 hour operations at depots, retail outlets

    Fuel scarcity: NNPC commences 24 hour operations at depots, retail outlets

    The Nigerian National Petroleum Company Ltd. says it has started 24-hour operations in NNPC depots and retail outlets, to restore normal supply and distribution of Premium Motor Spirit (PMS) across the country.

    TheNewsGuru.com (TNG) reports the NNPC made this known in a statement issued on Tuesday.

    The statement said :” NNPC Ltd. wish to reassure Nigerians that it has put adequate measures in place to accelerate nationwide distribution of PMS earlier disrupted by the quarantine of methanol blended petrol.

    “The quarantine was a necessary step to safeguard our customers from the potential impact of this PMS grade on vehicles and machineries.

    ”As of today, NNPC has over one billion litres of certified PMS stock that is safe for use in vehicles and machineries.

    “In order to accelerate distribution across the country, we have commenced 24-hour operations at our depots and retail outlets. “

    According to the statement, as part of NNPC’s strategic restocking, over 2.3 billion litres of PMS is scheduled for delivery between now and end of February 2022, which will restore sufficiency level above the national target of 30 days.

    It said the Major Oil Marketers Association of Nigeria, Depot Owners and Petroleum Products Marketers Association of Nigeria and Independent Petroleum Marketers Association of Nigeria had also commenced 24-hour loading and dispensing activities in some of their designated outlets.

    The statement said NNPC monitoring team was collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other security agencies to ensure smooth distribution of PMS nationwide.

    “NNPC implores Nigerians to avoid panic buying as there is sufficient volume of PMS in-country and effort is being made to accelerate distribution to all filling stations,” it said.

  • Petrol being dispensed at the various filling stations in the country is safe – NNPC

    Petrol being dispensed at the various filling stations in the country is safe – NNPC

    “As of today, NNPC has over one billion litres of petrol in stock and the petrol
    being dispensed at the various filling stations in the country is safe,” the Nigerian National Petroleum Company (NNPC) announced on Tuesday in Abuja.

    NNPC Group Executive Director (Downstream), Mr Adetunji Adeyemi, noted that in order to accelerate PMS distribution across the country, the company has commenced 24 hours operations at its depots and retail outlets nationwide.

    Adeyemi revealed that NNPC has several million litres of petrol in stock, adding that they were expecting about 2.3 billion litres of petrol in the country by the end of the month.

    He stated that the retail outlets of major oil marketers have also commenced 24 hours service to ensure that more motorists were attended to daily.

    Adeyemi added: “To address the (fuel scarcity) situation, over 2.3 billion litres will arrive in the country between now and the end of February 2022,” the NNPC group executive director said.

    “This will restore sufficiency level above the national target of 30 days. As of today, NNPC has over one billion litres of petrol in stock and the petrol being dispensed at the various filling stations in the country is safe.

    “Furthermore, NNPC has constituted a monitoring team with the support of the authority and other security agencies to ensure smooth distribution of petrol nationwide.”

  • Govts incompetently running NNPC deserve the Nobel prize – By Owei Lakemfa

    Govts incompetently running NNPC deserve the Nobel prize – By Owei Lakemfa

    By Owei Lakemfa

    THE latest episode in the Nigerian drama of governance is the importation of at least 100 million litres of contaminated PMS which knocked car engines.

    As with such cases of governance, nobody, official or organisation is willing or honest enough to take responsibility.

    The Nigerian National Petroleum Company, NNPC, which claimed to have discovered the contaminated fuel on January 20, 2022, has for 24 days now, been unable to bring the situation under control leaving chaos at fuel stations, and the economy limping.

    However, it has been busy trying to pass the buck. Its Group Managing Director, Mr. Mele Kyari, named four entities; MRS, Oando, Duke Oil and a consortium consisting of Emadeb/Hyde/AYMaikifi/Brittania as being the culprits. Oando denied while MRS pointedly accused the NNPC of being responsible.

    The joke is that Duke Oil is a subsidiary of the NNPC while the same NNPC established the Emadeb consortium in May 2021. As the sole importer and supplier of fuel in the country, the bulk stops at the NNPC’s table.

    So when the House of Representatives charged the same agency to discipline the culprits, it could be nothing but a joke; how do you ask the NNPC to call itself to order? It is like President Muhammadu Buhari who doubles as Petroleum Minister promising to get to the bottom of the problem; we know what it is, the NNPC is the problem. In the eyes of the National Assembly, the NNPC is a rogue organisation that operates outside the law with impunity.

    The Senate in October 2021 at the public hearing on the 2022-2024 Medium Term Expenditure accused the NNPC of ever being on a spending spree, illegally deducting monies from the federation account and refusing to pay its excess revenue into the Consolidated Revenue Fund.

    Just on January 26, 2022, the Nigerian Governors Forum, NGF, at a meeting with labour leaders in Abuja, accused the NNPC of being a fraudulent agency with opaque intentions. It also accused the body of mismanaging proceeds accruing on fuel subsidy. In 2012, the House of Representatives in verifying and determining “the actual subsidy requirements and monitor(ing) the implementation of the Subsidy Regime in Nigeria” established that the NNPC brazenly violates the constitution by illegally withdrawing funds from the federation account.

    Examples of these include the fact that while the Central Bank in 2009 paid the NNPC N81.648 Billion as legitimate subsidy, the corporation additionally deducted for itself, the sum of N408.255 Billion. While the NNPC was paid legally N402.423Billion in 2010, it helped itself to an additional N407.801 Billion. In 2011, the NNPC was legally paid N844.944 Billion while it illegally paid itself an additional N847.942 Billion. Again, it was discovered that while the then regulatory Petroleum Products Pricing Regulatory Agency, PPPRA recommended that the NNPC deduct N540.419 Billion in 2011, the NNPC helped itself to an additional N285.098 Billion.

    Theoretically, it is impossible for contaminated fuel to be sold at fuel stations because there are about a dozen check points to ascertain product quality. This begins from the point of importation. These include NNPC quality control agents and independent laboratories by independent marketers. There are also various government agencies like the Standard Organisation of Nigeria, SON, which is the sole statutory agency vested with the powers of “standardising and regulating the quality of products in Nigeria.” There are many government agencies like that of Consumer Affairs that are culpable in this contaminated fuel importation scandal. But I am willing to exonerate the Customs and Excise. Yes, this agency operates in all ports and borders of the country with the statutory charge of supervising all goods imported into or exported out of the country, collecting Import and Excise duties, and should, therefore, be involved in monitoring imported petroleum products, but its experiences dictate it should turn a blind eye.

    The Customs exercised the issuance of clearance to discharge or authority to unload petroleum products with the quantities stated. But to perpetrate fraud, a dozen years ago, the petroleum product importers rather than discharge products on the Nigerian waters, stayed outside it to discharge the products from so-called Mother ships into Daughter vessels.

    In order to verify the quantities carried by these so-called Mother vessels, Customs officials went to make verification. But their vessel came under the fire of the importers and some Customs officers were killed. Rather than investigate these murders and take a strong stance, Government officials advised the Customs not to check ships carrying fuel. Subsequently, the Federal Ministry of Finance and the Central Bank issued circulars to the Nigerian Customs not to inspect PMS imported by the NNPC.

    The NNPC is so attractive that any incumbent President must be its supervising minister. This reflects in its self-congratulatory arrogance, emptiness and gross incompetence. Nigeria began the commercialisation of oil 66 years ago, but until today, foreign companies are at the core of oil production in the country and the NNPC does not know how many litres of oil the country produces daily or how many are stolen. Although the country’s foreign earnings are dependent on oil exportation, the six petroleum exportation terminals in the country are owned by foreigners who do not owe allegiance to the country; Shell owns two, while the rest four are owned by Chevron, Texaco, Mobil and Agip.

    The NNPC is so inept that while running four big refineries, it can neither refine petroleum products nor successfully import and distribute the products. Despite the corporation’s marked inability to carry out its basic functions, the Federal Government under its Road Infrastructure and Refreshment Tax Credit Scheme on October 27, 2021 awarded it contract to reconstruct 21 roads at the cost of N621.2 billion.

    The NNPC and its parent Petroleum Ministry expose Nigeria to the international ridicule of being averagely, amongst the ten highest oil producers in the world but incapable of refining even a litre for local consumption. The disgrace is more magnified by the realisation that Belgium, the country from which the contaminated fuel was imported, is not oil-producing! This level of foolhardiness is unheard of in contemporary world history. This is so much that we need to approach the Nobel Prize Committee to institute a prize for the most incompetent and decidedly most injudicious management of resources.

    The contaminated fuel when poured into a clean bucket is like the Nigerian democracy; the sludge at the bottom are the local governments, the finer parts in the middle are the state governments while floating aimlessly on top is the Federal Government; when poured into the Nigerian vehicle, they knock the engine. Anybody who does not know that the Nigerian democracy is a knocked engine that needs to be overhauled or replaced should go back to sleep.