Tinubu Denies Involvement in Attacks against Fashola

Bola Tinubu


Davidson Iriekpen
National leader of the All Progressives Congress (APC) and former Governor of Lagos State, Senator Bola Tinubu, has denied any involvement in the attacks against his successor in office, Mr. Babatunde Fashola (SAN).

Tinubu in a statement made available to THISDAY last night titled: ‘APC Lagos is one Family United by a Progressive Cause,’ faulted those peddling rumours that he was behind the attacks against Fashola to thwart him from being appointed by President Muhammadu Buhari administration into his cabinet.

In the statement issued by his media office, the APC leader said he could not have been behind the attacks because any attack against the performance of Governor Fashola was indirectly an attack against him and the edifice of achievement they had constructed in the state.

He said since the commanding victory of the APC in Lagos and all over Nigeria, the enemies of progressive governance had been
cleverly trying to regain through intrigue and subterfuge what they so openly and fairly lost in the elections.

The APC leader contended that having fared woefully with the electorate, the game plan of the opposition is to sow discord within the ranks of the party people had chosen to lead them.

“Since the commanding victory of the APC in Lagos and all over Nigeria, the enemies of progressive governance have cleverly been at work, trying to regain through intrigue and subterfuge what they so openly and fairly lost in the elections.

“Our political opponents now try to steal victory when their only entitlement is resounding defeat.
Having fared woefully with the electorate, their game plan is to sow discord within the ranks of the party people had chosen to lead them. The PDP hopes to strike division in the APC, in that way weakening us and our ability to govern.

“Apprised of their wiles, we in the progressive camp must be wiser still. We must not allow ourselves to be pawns in this cynical strategy. We cannot fall into their obvious snares for that would be embracing defeat when victory has already been won.

“It is our responsibility to govern as the people want. It would be to our detriment to fall victim to our opponent’s sly instigations by allowing ourselves to be utensils picking each other apart.

“This brings me to recent developments in the Lagos political scene. Born of this motley stew is the recent gossip mongering that I have willfully instigated false and negative reports against Fashola to thwart him from being appointed to a major post in the Buhari administration. I want to declare clearly and categorically that these rancid attacks do not come from me nor do I endorse them. Neither my hand nor my heart are in these mean submissions. I deplore them. An attack against the performance of Fashola is indirectly an attack against me and the edifice of achievement we have constructed in leading Lagos state out of a protracted time of stagnation and into an era of sustained progress and development.”

Describing Lagos as a much better place than when they came into governance in 1999, Tinubu said Fashola was an integral part of the improvement and does not deserve the pillory.

He said he was proud to play an instrumental role in bringing the former governor into politics.

“Lagos is a much better place than when we came into governance in 1999. Each year, it has gotten better. With the APC at the helm, each subsequent year will be better yet. Fashola has been an integral part of this improvement. He does not deserve the pillory. His record has been applauded and will continue to be when all this rumour mongering has died its natural and quick death.

“I am proud to say that I played an instrumental role in bringing Fashola into politics in the first instance. He served as my trusted chief of staff, performing excellently in that role. Due to his leadership qualities and diligent work ethic, I endorsed him for governor notwithstanding the stiff and vocal opposition of many. I am not ashamed of backing him. I believe the progress the state made under his administration has more than vindicated my endorsement.

“Fashola, the present Governor Akin Ambode including myself are the products of a progressive political institution and its programmatic expressions. I laid the governance foundation and started the first lap, running as well as I could. I handed the baton to Fashola, knowing he would do the same. He did; he ran as well as he could. Now, he has handed to Ambode who is off and running as well as he can. We have achieved much in Lagos; but, we recognise as much as anyone that we have much more to do.
“We also know that progress is fragile and easily undone, while destruction is easily transacted but hard to undo. I for one am not the type to tear down my own house or to bring my enemy’s rubbish into it.”

“We must remember something. We have always governed Lagos state as an open forum where democracy and free expression were respected. Those who are against us were never placed in fear of the heavy hand of government descending on them even as they played funny tricks. We also must remember than in any democracy, a number of people will always oppose you no matter the quality of your performance. If an office holder has an approval rating of 70 per cent, this means, in Lagos, roughly five million people dislike the person. Also remember the PDP is just recently out of office at the federal level and that it built a vast, unprecedented financial war chest to contest the elections. The residual of that war chest is still at work, buying media space to plant rumours in hopes of spreading discord through the APC. Thus, the enemy camp may be a minority but it is a large and well-funded one that knows its only chance lies in us attacking ourselves.

“I for one will not bend to the artificial provocation of those seeking to tear at what we have painstakingly built over the years. In my mind, r Fashola and I are and shall always be political allies and fellow travelers on a vital journey; that alliance is unshakeable and our journey must not be interrupted. I would no more attack his character or his administration than I would attack myself.

“ I see this present moment as crucial to Nigeria’s future. The nation faces acute challenges of security, corruption and economic development. Our task is to create policies that bring prosperity, dignity and hope to all. Great change is in reach because we have progressive governments at the federal and state levels for the first time. With great change at hand, it would be a terrible abdication of our duty to allow agents provocateur to prompt us to suspect and toss dirt at each other at a time when we should be focused on building a better, more equitable nation and society.

“I for one shall never allow myself to be a tool of a political enemy that has nothing good in mind for Nigeria. I for one will never engage in the intramural character attacks of which I am being accused. I stand for the unity of the APC and for the progressive purpose we serve. I will not be guilty of tearing down our progressive house, not a brick of it. That I vow to all.”

EFCC Begins Probe of Amaechi’s Administration

Chibuike Amaechi

Strong indications emerged wednesday that the Economic and Financial Crimes Commission (EFCC) has commenced a detailed investigation into some financial transactions during the tenure of the immediate past Governor of Rivers State, Mr. Chibuike Amaechi.
The investigation, THE MEDIA gathered, was based on a petition by a Port Harcourt-based group, The Integrity Group, which on July 29, wrote to the EFCC, detailing three instances of alleged corruption, graft and abuse of office under Amaechi’s government.

In the petition, the group alleged that Rivers State electric power projects were sold and the proceeds converted to other uses through payments amounting to N60 billion to three companies all located at Trans Amadi, Port Harcourt.

The petitioners alleged that the transfers, made in US dollars, occurred within a space of one week between December 1 and 8, 2014.
The Integrity Group also alleged that the proposed Karibi Whyte Specialist Hospital in Port Harcourt was a failed contract, which cost the state a whooping N4.63 billion in what the petitioners described as questionable circumstances.

In the third allegation in their petition to the EFCC, the group stated that Amaechi as governor, appointed a firm of tax consultants, which was given a relatively exorbitant fee of 12 per cent of taxes collected on a much lower monthly collection target of N2.5 billion, even as the Rivers State Internal Revenue Service was raking in about N7.5 billion monthly at five per cent administrative cost, as prescribed by law.

The consultants were said to have collected over N1.5 billion in fees within weeks of their being engaged by Amaechi’s government.
Responding to the petition, the EFCC in three separate letters titled, “Investigation Activities”, and dated August 13, 2015, swung into a detailed probe of Amaechi’s dealings as alleged by the petitioners.

All the three letters by the anti-graft commission exclusively obtained by THE MEDIA, were signed by the Head, Economic Governance, Olufunke Adetayo-Ogunbode.

While two of the letters with reference numbers CR: 30/EFCC/ABJ/EG/T4/Vol.26/386 and CR: 30/EFCC/ABJ/EG/T4/Vol.26/379, respectively were addressed to the Permanent Secretary, state Ministry of Finance, in respect of the sale of the state power projects as well as Clinoriv Specialist Hospital and Leisure Limited, which was engaged to have constructed the still-born Karibi Whyte Specialist Hospital, the third one with reference number CR: 30/EFCC/ABJ/EG/T4/Vol.26/380 was addressed to the state Accountant-General in respect of the activities of Messrs Collect Nigeria Limited on the collection of internally generated revenue (IGR) on behalf of the state.

One of the EFCC letters to the Permanent Secretary, Ministry of Finance, read in part: “The commission is investigating a case of conspiracy, abuse of office and fraud. In view of the above, you are kindly requested to furnish the following: Details of all the assets sold to the NG Power-HPS Limited; total amount received and the account it was paid into; Sales Agreement/Memorandum of Understanding; House of Assembly resolution/approval; investments made from the proceeds if any; documents indicating due process; and any other information that will assist the commission in its investigation.”

In respect of the Karibi Whyte Specialist Hospital, the EFCC also requested the permanent secretary to furnish it with the following: MoU with Clinoriv Specialist Hospital and Leisure Limited; evidence of due process in the award of the contract; executive council resolution/approval; total sum allocated for the project; account number and bank where the funds were paid; status of the contract awarded to the company; payment certificates issued/valuation reports; contract award documents and; any other information that will assist the commission in its investigation.

On the tax consultancy allegation, the EFCC asked the state accountant-general to supply it with the following information: Details of internally generated revenue between 2007 to date; evidence of disbursement and five per cent retained within the period; the MoU between the state government and Messrs Collect Nigeria Limited; details of due process in the award of the contract; details of payment made to Messrs Collect Nig. Limited; House of Assembly resolution/approval; state executives (that is, State Executive Council) resolution/approval; and any other information that will assist the commission in its investigation.

The anti-graft commission concluded in each of the letters that the request for the specific information in the on-going investigation of the allegations against Amaechi’s government was “made pursuant to Section 38 (1) and (2) of the EFCC (Establishment) Act 2004".

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With Slowing Growth, Oil Slump, Petrol Subsidy May be Ready to Go

President Muhammadu Buhari 

• Buhari blames past govts for huge subsidy bill
• Kachikwu: PIB to be fine-tuned
• Nigerian oil exports to hit annual high in October

Tobi Soniyi, Chineme Okafor in Abuja and Ejiofor Alike in Lagos with agency report 



With oil prices heading south in the international market and the National Bureau of Statistics (NBS) announcing yesterday that Nigeria’s growth rate slowed to 2.35 per cent in the second quarter, the federal government has very few options than to seize on the opening presented by the oil slump to remove the subsidy on petrol.


This, according to economic analysts who spoke to THE MEDIA, will enable the government to reduce the country’s fiscal imbalance and reduce pressure on foreign reserves and the naira resulting largely from the importation of petroleum products.


The price of Brent crude fell close to a six-year low of $42 on Monday, before rising to $43 a barrel yesterday, while the West Texas Intermediate (WTI) traded at $38.73 per barrel, up 1.2 per cent on the day, and off Monday’s low of $37.75.


But yesterday’s marginal recovery was considered temporary, as oil analysts have predicted that oil could fall to a 16-year low of $20 a barrel due to the over supply from the US and Middle East and the economic slowdown in China.


Based on the computation undertaken by THISDAY using the average price of $527.25 per metric ton for petrol quoted by Platts yesterday and at the exchange rate of N197 to the dollar used by the Petroleum Products Pricing Regulatory Agency (PPRRA), the cost of petrol stood at N77.45 per litre, almost N10 below the official pump price of the product.


The price of petrol quoted by the PPPRA on Monday, which was the prevailing price used to pay marketers was $553.12 per metric ton or N81.26 per litre.


The agency also put its landing cost for petrol at N92.34 per litre and total cost at N107.83 per litre when marketers’ distribution margins were added.


However, market analysts believe that several of the costs inputted by PPPRA are unrealistic in a competitive market and would be eliminated under a deregulated price regime, as several importers of petroleum products will be eliminated, leaving only the major marketers with the economies of scale and therefore lower costs.


“Most of the charges on the PPPRA pricing template for petrol and kerosene only exist because it keeps inviting smaller marketers without the facilities and infrastructure to import products.


“But once the subsidy is removed, they will fall on the wayside and leave only the major marketers and the Nigerian National Petroleum Corporation (NNPC), which have the depots and distribution channels to convey fuel at lower costs to filling stations nationwide.
“So with crude oil prices this low, this is an opportune moment for the federal government to eliminate the subsidy element completely.


“This will go a long way in helping the government to reduce the current fiscal imbalance and free up funds for other projects, and at the same time reduce pressure on our foreign reserves as fuel imports alone account for more than 30 per cent of forex demand in the foreign market,” explained one analyst, who preferred not to be named.


But even as market analysts pushed for the removal of subsidies, President Muhammadu Buhari yesterday blamed past administrations for the billions spent by the country on subsidies for petroleum products.


The president also said that it was unconstitutional for any revenue-generating agency to retain part of the revenues they make.
A statement by the Senior Special Assistant to the President, Media and Publicity, Mr. Garba Shehu, said Buhari spoke at a meeting in Abuja with the Chairman and members of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).


Buhari expressed the view that the escalation of petroleum products subsidy payments in recent years was due to the deliberate neglect of the nation’s refineries, oil pipelines and other related infrastructure to pave the way for the importation of petroleum products and for corruption to thrive.


The president, who restated his huge disappointment with the way Nigeria’s oil industry had been run since he left office as petroleum minister and military head of state, said he was convinced that if the development of the country’s domestic refining capacity and petroleum products distribution network had kept pace with national demand, there would not have been a need for the huge subsidies currently being paid to importers.


“They allowed the infrastructure to collapse so that their cronies can steal by bringing in refined products from overseas,” Buhari said.
The president urged the chairman and members of the RMAFC, who availed him of their view on petroleum subsidy payments, to go “back to the drawing board” and come up with more humane proposals to rescue ordinary Nigerians from the “wicked manipulation” of the country's oil industry by corrupt operators.


Buhari also warned that severe sanctions would be visited on any individual or organisation that violated the directive on the payment of all national revenue into the Federation Account.


The president said NNPC, the Nigerian Ports Authority (NPA) and other MDAs, which previously relied on the laws establishing them to retain all or part of the revenues collected by them, did so illegally and must now comply with the Nigerian constitution by paying all revenues into the Federation Account.


In a related development, the Group Managing Director (GMD) of NNPC, Dr. Ibe Kachikwu, has acknowledged that the Petroleum Industry Bill (PIB), which has been pending before the National Assembly for the last eight years, requires extensive engagement with all stakeholders to iron out all grey areas.


Kachikwu, who yesterday chaired a special session on the proposed law at the ongoing 55th Annual General Conference of the Nigerian Bar Association (NBA) in Abuja, in his paper titled: “Legal and Regulatory Framework of the Petroleum Industry in Nigeria: Review of Existing Laws and the Petroleum Industry Bill (PIB)”, described the bill as an essential legislation which must be approached with all the seriousness and the thoroughness it deserves.


A statement from the NNPC spokesman Ohi Alegbe quoted Kachikwu as stating: “PIB is a serious affair, it is an essential piece of legislation but as we all know a lot of engagement is required to address all the issues because the oil and gas environment has changed.
“There are issues of cost, with oil going down to $40 per barrel, the PIB cannot be the same.”


The NNPC GMD explained that because of the volume of extensive consultation and time required to make the bill a workable document, it was only natural to kick-start the reforms in the industry with the existing laws while waiting for the eventual passage of the proposed law.


“The reform of the petroleum industry is key and it is an area where we are going to put a lot of focus. Transparency is key. Restructuring is key.


“Sometimes people don’t realise that the problem hasn’t been NNPC, it is a problem of political will to go forward and implement the outcome of researches and reports that had been done. But fortunately for us this time around, that is what the president has brought to the table. He has the strong political will to see this through,” he said.


Commenting on what the federal government intends to do with the draft legislation, Kachikwu stressed that the PIB had come to stay though it would take a bit of time to perfect the draft.


“The PIB is important, but we need to x-ray the issues. We need at least one year to get it back on track. The reality is that we cannot afford to wait any longer for change in the petroleum sector because of the delay in the passage of PIB. Things have got to start happening and that’s exactly what we are doing,” the GMD stated.


Echoing Kachikwu’s position, Mr. Peter Esele, a former President of the Trade Union Congress (TUC) who was also President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), noted that though the PIB was key, the industry could make do with existing laws to activate essential reforms in the sector.


With the oil industry reforms taking centre stage yesterday, Reuters reported that Nigeria plans to export some 2.04 million barrels of crude oil per day (bpd) in October, the highest level this year, with planned shipment of 68 cargoes of 17 grades of crude oil, even as loading programmes for about two grades were yet to be released.


This is coming as the non-Gulf members of the Organisation of Petroleum Exporting Countries (OPEC) have called on the organisation to take action on the glut in the oil market.


Algeria has written to OPEC expressing concern about the slump in oil prices, and Iran said on Sunday an emergency OPEC meeting may be “effective” in stabilising prices.


Nigeria’s export figure for October is above the less than two million barrels per day to be exported in September and is the highest volume since January when the country initially planned to export 2.03 million bpd, according to the provisional loading schedules obtained by Reuters.


It was not however clear if the international market will absorb these volumes of crude as European refinery maintenance typically peaks in October, thus limiting the amount of crude oil they refine.


According to the provisional loading schedules, Nigeria will export one cargo of Abo grade (23,000 barrels per day); eight cargoes of Agbami (252,000 barrels per day); three cargoes of Amenam (92,000 bpd); seven cargoes of Bonga (215,00bpd); and seven cargoes of Bonny Light (221,000bpd).


Others include five cargoes of Brass River (133,000bpd); one cargo of EA (31,000bpd); one cargo of Ebok (21,000bpd); three cargoes of Erha 97,000bpd); six cargoes of Escravos (184,000bpd); six cargoes of Forcados (184,000bpd); one cargo of Okono (29,000bpd); and one cargo of Oyo (21,000bpd).


Additional loading schedules include 12 cargoes of Qua Iboe (368,000bpd); three cargoes of Usan (97,000bpd); two cargoes of Yoho (61,000bpd); and one cargo of Okwuibome (10,00bpd).


However, the loading schedules for Antan, Okwori and Pennington were still pending, according to Reuters.
Meanwhile, Algeria and Iran have called on OPEC to convene an emergency meeting to address the current glut in the oil market.
The last extraordinary meeting to discuss a price slump in 2008 resulted in the OPEC’s largest ever production cut, paving the way for prices to double within a year.


But the current calls for an unscheduled meeting to address spiralling prices were more a sign of growing friction within the group than a leading indicator of policy action, according to Reuters.


Although OPEC’s statutes say support from a simple majority of the 12 members can trigger an extraordinary meeting, none will occur without support from Saudi Arabia, which has yet to give its blessing, according to OPEC delegates.


With oil falling further, support is growing among non-Gulf members for action and even some Gulf officials are concerned about the latest drop in prices. But the top OPEC producer’s policymakers have remained publicly silent.


Without the Saudis on board, even some OPEC members who are desperate to shore up prices, say an abrupt public gathering is not the way to go and might only make matters worse.


Expectedly, low oil prices continued to take their toll on the Nigerian economy, as the country’s growth slowed in the second quarter of this year to 2.35 per cent the National Bureau of Statistics (NBS) said yesterday.


Nigeria’s gross domestic product (GDP) expanded by only 2.35 per cent on an annual basis, compared with 3.96 per cent a quarter earlier, the head of the NBS, Yemi Kale, said on his Twitter account. According to Bloomberg, Kale said the oil industry contracted 6.8 per cent.


At 2.35 per cent, this is the slowest growth recorded by the country in well over a decade.
The oil-price slump has forced Nigeria, the top producer in Africa, to cut its budget and deplete foreign currency reserves to stem depreciation in the currency, which has declined 7.8 per cent against the dollar this year.


The Nigerian Stock Exchange (NSE) All Share Index also fell to the lowest in six months yesterday on concerns that oil prices near a six-year low will deepen the country’s economic challenges.


Manufacturing contracted by 3.8 per cent during the quarter, compared with growth of 14 per cent a year ago, Kale said.
Buhari, who took office in May in the country’s first democratic transfer of power between parties, has yet to name a cabinet and hasn’t articulated his economic vision for the nation.

Suicide Bomber Hits Airport Junction Maiduguri Kills one military guards commander

A suicide bomber last night struck at a military checkpoint at the airport junction in Maiduguri, the Borno State capital.
The tragic event took place about 10.30p.m. near the Maiduguri Airport, killing a guards commander whose identity was withheld for security reasons.


THE MEDIA was reliably informed that some of the military personnel, mostly airmen, were already relieved to travel and meet with their families when the dastardly act took place.


“This is tragic. Do you know that our signal came out Monday afternoon for changes. We were already thanking God after eight months we were going to see our love ones again. We were to be withdrawn on the September 3, 2015 but see what has happened to our friend. It is so painful and unbearable,” one of the officers said.


Boko Haram terrorists have increasingly adopted guerrilla tactics and use of suicide bombers since they lost territories in the last three months.


And this is coming several hours after another suicide bomber struck in Damarturu, Yobe State, killing five persons.

Nigeria sees highest ever power generation in July – TCN MD

Nigeria saw a highest ever peak in power generation at about 4,652 megawatts in July, according to Transmission Company of Nigeria, TCN.

Deputy Managing Director of TCN, Dr. Atiku Abubakar‎, revealed this during a facility inspection of some ongoing transmission projects and a training exercise of some auditors in Lagos.

“Nigeria has been able to generate the highest peak so ever in July which is about 4,652 megawatts and our transmission capacity is a little bit above that. TCN is capable of transmitting about 5,300 megawatts at the moment,” he said.

Dr. Atiku, who also spoke on the country’s plan to achieve 8,000 megawatts transmission capacity in two or three years from now, said TCN would required a minimum of N15 billion fund annually to meet the plan.

“TCN will required a minimum of about N15 billion per annum to achieve 8,000 megawatts, mw, within a‎ period of two to three years,” Abubakar stated

He explained that the fund would be use to expand the country’s current transmission capacity of 5,300mw to 8,000mw, noting that this has become imperative following improved gas supply to power generating plants which has resulted in improved power generation.

He maintained that though has been able to generate the highest peak so ever in July, it is expected that asgeneration is improving, the transmission network would be upgraded to be able to evacuate all that is being generated.

“l can assured that we have our plans, projects that are very critical has been mapped out so that within the shortest possible time, we will be able to hits 8,000 megawatts transmission capacity,” he said.

Abubakar also hinted that about 30 firms willing to invest in the country’s transmission sector and capable to deliver projects effectively have been short-listed .

He explained that TCN is currently evaluating the investors’ technical and financial strength to ensure smooth delivery of projects and on time.

NNPC Sets New Terms for Crude Swaps

Following President Muhammadu Buhari’s approval to the Nigerian National Petroleum Corporation (NNPC) for the cancellation of the offshore process contracts and crude oil swaps, the state-run oil firm has started the process of setting out new terms for the selection of new traders for the oil swap programme.


Speaking on the cancellation, a top NNPC official said though the president had approved the Group Managing Director, Dr. Ibe Kachikwu’s request to cancel contracts, it had not been communicated to the traders.


He disclosed however that part of the criteria for the selection of new traders would require that they either own and operate refineries or have access to refining capacity while Nigerian companies would be required to show evidence of depots and retail services to make the shortlist.


The official clarified that the terms for the selection process was still a work in progress and would be expanded to ask traders to provide evidence of their financial capability by meeting a minimum capital base, among other requirements.


But the minimum capital base, he explained, has not been determined as NNPC was still working on the criteria that would ensure that “arm chair contractors” are eliminated.


“We intend to make the re-tendering process very transparent once we are done with the terms that traders will have to meet, and this will be advertised in the local and international media for the world to see,” he said.

The cancelled swaps were initiated in January by the Goodluck Jonathan administration and were to last till December 2016. The swaps are designed to supply primarily petrol and kerosene in exchange for crude, as Nigeria relies on imports for the bulk of its domestic consumption.


Nigeria is often chronically short of fuel, as its neglected refining sector operates well below capacity. In order to meet the refining shortfall, NNPC allocated 210,000 barrels per day of crude to swap for products in 2015 to Sahara Energy, Aiteo, Ontario Oil and Gas, and Trafigura.


Reuters quoted a source at NNPC as stating that the president cancelled contracts for roughly half of the 445,000 barrels per day of crude earmarked for Nigeria's refineries — the amount traders use in the products swap deals.


“The government may not have completely dumped the idea of swaps but the aim is to re-evaluate the whole contracts terminated to extract some favourable terms,” the source told Reuters.


Crude-for-products swaps became controversial after several Nigerian officials raised questions about their transparency, including the Nigerian Extractive Industries Transparency Initiative (NEITI), an EITI affiliate.


The Department of State Security Services (DSS) in June launched an investigation to determine whether the government had been short-changed in the scheme. The outcome of the investigation is yet to be announced.

Mobil Oil Chairman Blames Fuel Tanker Explosions on Price Regulation

Chairman and Managing Director of Mobil Oil Nigeria Plc, Mr. Tunji Oyebanji



Ejiofor Alike

The Chairman and Managing Director of Mobil Oil Nigeria Plc, Mr. Tunji Oyebanji has attributed the increasing spate of fuel tanker explosions across the country with the attendant fire outbreak to the inability of oil marketing companies to make new investment as a result of the regulation of prices petroleum products by the government.

Speaking in Lagos at the recent 2015 conference of the National Association of Energy Correspondents (NAEC), Oyebanji stated that the inability of the marketers to make reasonable margins from their business has hindered their capacity to invest in new trucks for lifting petroleum products.

In his presentation on “Deregulation of the Petroleum Products Sector: A Key to Sustainable Development,” the Chairman and Managing Director of Mobil Oil Nigeria Plc, Mr. Tunji Oyebanji noted that the margins of the marketers have remained fixed for the past eight years.

He said apart from having a negative impact on the downstream business, regulation and payment of subsidies also have serious impact on the Nigerian economy.

Oyebanji listed the opportunity cost of subsidies to include lack of investments in infrastructure, health, education and investment in local refining, which he said was private sector driven.

Budgetary constraints, leakages/smuggling, wrong beneficiaries and inadequate investment in pipelines, storage facilities, and jetties were also listed as some of the negative effects of subsidy payment.

Oyebanji also identified rent seeking/corruption, administrative cost of enforcement, low taxes, safety issues, adulteration of product and market distortion as some of the ills of price regulation.

According to him, price regulation encourages what is known in the industry parlance as “Rice and Beans” where the marketers adulterate high cost product with low cost product to sell it as high cost product.

Quoting the 2003 report of the IMF and others on Indonesian experience, Oyebanji noted that “given that higher income groups consume the lion’s share of petroleum products, it is tempting to conclude a priori, that these groups would bear the brunt of any additional reduction in the subsidy. Such a conclusion would be premature, however, in light of the ripple effects of higher petroleum prices on production costs and incomes throughout the entire economy.”

According to him, these results suggest that in the short run, a reduction in petroleum subsidies will result in an increase in the price level and a reduction in household consumption.

“Even though higher-income groups lose the most from subsidy reduction, the poor are also affected; the latter could be protected by well-targeted social safety nets, using some of the fiscal savings generated by subsidy reform. Given the contribution of subsidy reduction to fiscal sustainability, higher petroleum prices are unlikely to adversely affect the poor in the long run,” he added.

He noted that marketers margin has remained unchanged in almost eight years as a result of deregulation, thus discouraging investment, with the country experiencing frequent supply shocks due to lack of refining capacity, logistics infrastructure and delays in subsidy reimbursement by government

Oyebanji said the supply shocks have created pricing arbitrage opportunities along the supply chain, while opaque allocation of imports quotas has given opportunities to importers with no retail outlets



According to him, delays in subsidy reimbursements to oil marketers have seen government incur avoidable costs in overdue interest payments and forex differentials

Army Recalls 2,700 Dismissed Soldiers and Officers after Buhari’s Intervention

Insists review still ongoing

Senator Iroegbu in Abuja¨
Investigations have revealed how President Muhammadu Buhari sanctioned the recall of officers and soldiers who were said to be “unjustly disciplined and dismissed” through various general court martials set up by the immediate past Chief of Army Staff (COAS), Lt-Gen. Kenneth Minimah (rtd).

Through the process, an estimated 2,700 soldiers and officers of the Nigerian Army have been recalled.

Military sources told MEDIA that President Buhari, after reviewing most of the cases and the circumstances under which the affected personnel were sanctioned, called for the review of the trial to determine if there were cases of injustice.

According to one the senior officer, the case was brought to the attention of the Chief of Army Staff (COAS), Lt-Gen. Tukur Buratai, who on the assumption of office vowed to continue with the disciplinary measures adopted by his predecessor.
However, the source noted that Buratai had a change of heart when the whole picture of the circumstances under which the affected officers and soldiers were court martialled.

It was disclosed that one of the affected commanders was the immediate senior to the new army chief who narrated the plight of the servicemen “who were almost forced to fight without weapons.”

Incensed by the revelations, it was said that Buratai had to first assess the situation and subsequently presented it to President Buhari who wasted no time in approving the need to review all the cases with panel of enquiry set up.

“The commandant who was also affected was not happy about the things that happened...with those boys being dismissed. So when the new man (Buratai) came, having been next to him in hierarchy, he approached him with the situation of those boys. The fact is that the former army leadership was the ones who did not provide the needed weapons to those boys. So how can they come up to claim that the boys were running from Boko Haram.

“Consequently, the new man (army chief) took the case to the president who also felt sad about it and directed that the cases be reviewed so that they can be recalled,” the source explained.

Further enquiries also revealed that not all the affected officers and soldiers have been recalled as many are yet to be informed or respond to the call.

Another military source confirmed that about 2,700 men had been readmitted to the force, while some others who are still aggrieved with the way they were treated by the military authorities have simply refused to submit themselves to the review panel.

“Right now, we cannot have a cohesive figure because there are those who have either not reported or heard about this latest development. Some of them still feel embittered that after all their sacrifice to the service and the nation they were treated unfairly. We will not tell them sorry but we are also encouraging them to come back. But for now, I think about 2,700 have been recalled,” the source said.
However, the Nigerian Army has said it was yet to decide on the fate of about 4,000 officers and soldiers who were dismissed through various GCMs during Minimah’s era.

The Director of Army Public Relations (DAPR), Sani Usman, in response to MEDIA enquiries yesterday, dismissed reports making the rounds that the army had recalled about 2,500 to 3,000 officers and soldiers.

Usman said what had reported so far have been speculative since the panel of enquiry set up by the army authorities and sanctioned by Buhari was yet to conclude its work.

He said: “People are basing this on speculation because of movement here and there. I don’t know where they got such outrageous figures from.

“You can recall that there is a committee for this and the committe has not finished its work, let alone deciding on what to do. We cannot talk of a line of action to take when the review is still ongoing. It is not conclusive yet. The committee is working and nothing has been done yet.”

The Nigerian army last month said it would be reviewing some of the disciplinary and court martial cases, especially those handled by the immediate past army chief.

Usman made the clarification in response to some reports regarding the recent disciplinary actions by the army.

“The attention of the Nigerian army has been drawn to a correspondence making the rounds in the media regarding an administrative procedure to review some recent disciplinary cases in the Nigerian army.

“For the avoidance of doubt, it should be noted that the Nigerian Army is reviewing all recent disciplinary cases due to the wave of litigations and petitions by some aggrieved personnel,” Usman said.

According to him, the public should not misconstrue the recent directive to mean total recall of dismissed and deserter soldiers.

Chelsea’s Cuadrado set for Juve medical

Chelsea forward Juan Cuadrado is set to undergo a medical at Juventus on Tuesday ahead of joining the Italian champions on a season-long loan deal.

Cuadrado moved to Stamford Bridge in a 35 million euro ($34.9 million) deal only six months ago from Fiorentina, but the Colombian international has become surplus to requirements under Blues coach Jose Mourinho.

Juventus have been looking to bolster their attacking midfield since the departure of Arturo Vidal (Bayern Munich) and Andrea Pirlo (New York City FC) and amid the ongoing injury absence of Sami Khedira.

The signing of Cuadrado has been welcomed by fans, especially after Juve’s shock 1-0 defeat to Udinese on the opening weekend of Serie A when their attacking midfield failed to spark.

Television pictures in Italy on Monday night showed the 27-year-old arriving at Milan’s Malpensa airport, where he was surrounded by over 100 enthusiastic Juventus supporters.

Juventus have yet to make any official statement, although club CEO Beppe Marotta said last week: “He will come on a loan deal. Six months ago Cuadrado was the subject of a 35 million euro transfer: today this opportunity came up, and we took it.

“Now, it’s up to (Juventus coach, Massimiliano) Allegri to see where he fits in with the team.”

La Gazzetta dello Sport newspaper said Tuesday Cuadrado could play for Juventus as early as this weekend’s clash with scudetto rivals Roma at the Stadio Olimpico.

Pregnant woman, five others killed in Damaturu twin explosions

Six people, including two suspected suicide bombers, have died in two bomb explosions that occurred on Tuesday in Damaturu, Yobe State capital.

Yobe Police Command Public Relations Officer, DSP Toyin Gbadegeshin, confirmed the incident to the News Agency of Nigeria.

Gbadegeshin said three others were in critical condition, while 40 others, who sustained various degrees of injury, had been taken to hospitals in the area.

He said one of the explosions involving a female suicide bomber of about 12 years of age, happened at the entrance of the Damaturu main motor park.

“The girl detonated the explosive at the screening centre of the motor park gate, killing herself and four others, including a pregnant woman and a baby.

“The other explosive went off at about the same time with the first one at Pompomari, when a suspected male suicide bomber, sensing he will be apprehended, ran into a nearby bush and the explosive went off, killing him alone,” the police spokesman said.

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Meanwhile, Director of Press to Yobe Governor, Alhaji Abdullahi Bego, described the incident as “sad and unfortunate.”

NAN reports that officials of the State Emergency Management Agency and hospital staff were providing emergency support to the victims.

No room for gays in Catholic Church, says Bishop

The Catholic Bishop of Lokoja, Dada Olorunmolu, on Tuesday reiterated Catholic church’s position against gay marriage, saying it was unequivocal and the church would not compromise on it.
The Bishop made this known in an interview with the News Agency of Nigeria (NAN) in Lokoja.
He said that approving gay union would amount to standing the Bible on its head.
According to him, the issue is against the teachings of the church and the Bible; it will amount to bending its teachings, its injunctions, just to accommodate what is unnatural.
Olorunmola support Pope Francis in not condemning gay people but leaving it to God to handle in his own terms for judgement.
“When you talk about gay union, it is man-to-man or woman-to-woman relationship.
‘’For us, the Bible teaches officially that it is the relationship between a man and woman that is marriage and not the other way round,” he said, adding that the Bible condemns homosexuality.
‘’What I am saying with emphasis is that if the Bible says something, there is no way you will trample on it by saying what is opposite and still be correct unless we are no more believing in the Bible,” he added.
The bishop prayed for those who indulged in the act, asking God to give them the grace to understand what was right.
“If you now want to compel the church to recognise you as homosexual and for the blessing of the union, the church is saying that it is against the bible because the bible says marriage is a union between man and woman.
“This is the difference; we are not saying gays are automatically condemned to hell but what we are saying is that it is not in accordance with the bible and therefore we cannot make it a sacrament.
‘’If we do that, it will nullify the official teaching of the bible and the church on marriage,” he said.
He said stressed that gay union could not be referred to as marriage but an ‘’unholy union’’, adding that where it was permitted, there would be chaos as family life would no longer be meaningful.