In the last five days, residents of rural communities in both Zamfara and Sokoto states have been at the receiving end of renewed terrorist attacks which survivors say are aimed at forcing the new governors in the states into negotiating with the assailants.

On 29 May, new governors were inaugurated in all seven states in the north-west region and Niger State in central Nigeria; the states most affected by banditry.

Some former state governors of the region like Aminu Masari of Katsina, Abdulaziz Yari and Bello Matawalle of Zamfara at different times, entered into peace accords with the terrorist gangs operating in their state. However, the deals quickly fell through with the gangs returning to kidnapping travellers and villagers and carrying out widespread killings in the area.

PREMIUM TIMES spoke to two victims of kidnapping in Zamfara State who said that the renewed onslaughts are being perpetrated to force the new governors into negotiating with the outlaws.

“When we were at the bandits’ camp, we heard on several occasions the bandits discussing how they would intensify attacks on communities and highways to force the new governor to embrace dialogue with them,” a 37-year-old local trader in Katuru village in the Shinkafi area told PREMIUM TIMES.

The victim, who asked not to be named for fear of his safety, said the terrorists who abducted him were under Bello Turji, the notorious banditry kingpin operating in northern Zamfara and eastern Sokoto.

Another victim of kidnapping who was abducted recently along with her three brothers in Gora in Zamfara State said the leader of the terrorist gang that kidnapped them reprimanded his boys for abducting a “small girl” when they should be killing people and abducting high profile community leaders.

“Walahi, I heard it with my ears when he was shouting at his boys. He said they should let me go. He said he wanted them to kill a lot of people and abduct big people so that the government will know they are serious. He said if the governor is serious, he would call them and listen to them because they’re indigenes of the state too.

“I was taken to the main road in the evening while my brothers were held. Our family members had to gather money for their release,” the 24-year-old, who now lives with her uncle in Talata Mafara told PREMIUM TIMES over the phone.

A community worker who has conducted extensive research on banditry in Zamfara State, Buhari Moriki, said the reports could be true.

He said he supports sitting down with the terrorists but that it must be done on two conditions.

“I support the idea of dialogue but it must not be the one that will allow the bandits to keep their weapons. It should also not be a situation where the bandits will be provided with money or to be given priority over other residents.

“When they lose such priority and money, they’ll return to their old ways. They also use the money given to them to buy more arms and continue to perpetrate violence,” he said.

He advised that government should reach out to local leaders who can sit with the terrorists and their leaders to reach an agreement.

When contacted, the Zamfara State governor’s senior special assistant on media and publicity, Mustapha Jafaru-Kaura, said the state government was not aware of such reports.

He said the governor has always been clear that he would not dialogue with terrorists.

“His Excellency (Dauda Lawal) has been clear about the issue of a peace accord. He even granted an interview to Radio France (International) and he said that he would not sit with the terrorists to discuss anything. Besides, it’s not the government that goes around looking for bandits to discuss with,” he said.

Attacks continue

After what appeared to be a lull in terror activities in the North-west during the elections, attacks have increased since new governors were sworn in on 29 May. Within three days, in the past week, PREMIUM TIMES gathered that terrorists have killed at least 61 people and abducted several others in Zamfara and Sokoto alone.

Last Saturday, the terrorists killed 21 residents in Janbako, a community in Maradun in Zamfara State. Most of those killed were vigilante members. Three residents of neighbouring Sakkida were also killed during the same attack

Over 30 women and girls were abducted in Gora on the same day. The abductees were later released by the terrorists.

Similarly, in the Tangaza area of Sokoto State, 37 people were killed in Raka, Rakar Dutse, Bilingawa and other communities in the area and nearby Gwadabawa.

The abduction of motorists on Shinkafi-Kaura Namoda road, Zurmi-Kaura Namoda road, and long Shinkafi-Isa-Sabon Birni roads has also increased.

[Premium Times]

The Federal High Court, Abuja, on Tuesday, ordered Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), to appear before it on 19 July over a 53 million dollar-judgement debt arising from the Pars Club refund.

Inyang Ekwo, who gave the order during the hearing of a suit marked: FHC/ABJ/CS/1193/2017, insisted that the court would not hear Mr Emefiele’s motion for stay until he appeared in court.

The News Agency of Nigeria (NAN) reports that Mr Ekwo had, on 20 October 2022, ordered the CBN governor to appear in court on 18 January over his alleged refusal to obey the order of the court for the payment of the judgement debt in favour of a lawyer, Joe Agi, a Senior Advocate of Nigeria (SAN).

However, the 18 January proceedings could not go on as scheduled. This prompted the court to adjourn the case until 20 March subsequently.

Mr Agi had sued Linas International Ltd, Minister of Finance and CBN, to court as judgment debtors, following an application for garnishee made by him as judgment creditor in the case.

The suit is one in a flurry of legal actions associated with the federal government’s refund to states and local governments the amounts of funds said to have been over-deducted from their accounts to offset Paris Club and London between 1995 and 2002.

Linas International Ltd and its promoter, Ned Nwoko, had initiated the first significant suit, which culminated in a court judgement awarding them huge amounts of money for their roles in helping states and local government areas to discover the excessive deductions from their accounts.

Since then, countless entities, lawyers, and other professionals have surfaced, claiming to have provided one form of consultancy services or the other to recover the money for the states and local governments.

Mr Agi, through his suit, seeks enforcement of a judgement that he obtained against Linas International Ltd for his role in helping the firm to secure the recovery of the funds.

Upon resumed hearing on Tuesday, Mr Agi’s counsel, Ayodele Arotiowa, said Mr Emefiele had yet to comply with the court’s order compelling him to appear in court.

Audu Anuga, SAN, who appeared for Mr Emefiele and CBN, however, pointed out that the court did not sit on the previous date scheduled for a hearing.

“There is an intervening circumstance which we have brought to the court’s attention by filing an affidavit of fact,” he said.

The judge then asked when Mr Anuga filed the appeal.

“The appeal was filed on 28 October 2022,” the lawyer responded.

He said besides the appeal, they also filed a motion for a stay of execution.

[Leadership]

The ongoing controversy over the removal of fuel subsidy appears to have caused a heavy crack within the fold of the labour unions in the country, especially the Nigeria Labour Congress, NLC.

DAILY POST reports that the union had earlier announced that it would commence an industrial action effective today, (Wednesday) June 7.

However, after a meeting with the Federal Government, the NLC leadership called off the strike.

The Trade Union Congress, TUC, was the first to toe that line after a similar meeting with the FG, with the NLC absent during the earlier dialogue.

The development has not gone down well with the state chapters of the unions who feel they were not carried along before their leaders reached the agreement with the Federal Government.

The Speaker of the House of Representatives, Femi Gbajabiamila, who led the government delegation, disclosed the resolutions reached with the labour unions after a meeting at the Aso Villa.

According to him, the Federal Government, the TUC and the NLC would establish a joint committee to review the proposal for any wage increase or award and establish a framework and timeline for implementation.

“The Federal Government, the TUC and the NLC would review the World Bank Financed Cash transfer scheme and propose the inclusion of low-income earners in the programme”, the communique reads in part.

A chairman of the NLC in one of the states told DAILY POST that their members were not happy with the hasty withdrawal of the industrial action without the Federal Government shifting ground on the main issue.

He spoke after the NLC convened a National Executive Committee, NEC, meeting on Tuesday, to inform their members of the latest development.

The State chairman, who was not pleased with the outcome of the meeting said: “It was a one agenda meeting to brief us on their resolution with the federal government.

“You have seen the communique the national body signed; they have confirmed to us they were part of it. All those things stated therein were the issues they raised before the federal government.

“So we will set up a technical committee that will look at them and come up with a lasting solution, so to speak, that will help to assuage the sufferings of the people with regard to the removal of the fuel subsidy.

“There was nothing much. We were briefed and they informed us that they were part of those items in the communique; that it was their agreement.

“For me and some others also, I expected a situation where the new price regime would have been suspended. The issues that were raised should hold sway but they have to suspend the price regime while this discussion goes on.

“That would have made them to hasten the discussion and come up with a workable agreement. Thereafter, the new price regime can now come in.

“But since they have decided to put the horse before the cart, then let it be. That’s just the resolution as contained in that document. They are meeting on June 19th, it’s on that day that the technical committee will take off.

“Of course, it has to be as soon as possible. It’s not going to be an indefinite thing.”

Recall that the NLC had last Friday directed its members and affiliates to begin nationwide protest and withdrawal of services from Wednesday (today) if the federal government fails to compel the Nigerian National Petroleum Corporation Limited, NNPCL, to reverse the petrol pump price increase.

On Wednesday last week, the NNPCL announced a new fuel price template nationwide. The effect saw fuel pump prices increase from N197 per litre to over N500 nationwide.

The development followed President Bola Tinubu’s inaugural speech announcing the removal of fuel subsidy.

Tinubu had promised he would stop the controversial scheme if elected president.

He spoke before the February 25 election at a business luncheon with business owners titled: “Business Forward” in Lagos, where he hinted that, no matter how long people protest, it would not stop him from removing fuel subsidies.

He maintained that Nigeria would not continue to subsidise fuel consumption in neighbouring countries.

“How can we subsidise the fuel consumption of Cameroon, Niger, and the Benin Republic. No matter how long you protest, we are going to remove the subsidy,” he said.

Although former President Muhammadu Buhari’s government had announced the subsidy policy would end by June when the budget for the initiative would expire, Tinubu bears the brunt of its implementation.

Prior to the announcement of the suspension of the strike, the Federal Government had approached the National Industrial Court in Abuja seeking an interim order restraining the NLC and the TUC from going on strike as planned, pending the determination of the motion on notice.

DAILY POST reported that the National Industrial Court granted the FG’s application and ordered the Labour unions not to strike.

The FG had submitted that the proposed strike could disrupt economic activities, the health sector and the educational sector.

They also claimed that the strike may gravely affect the larger society and the well-being of the nation at large.

Meanwhile, the TUC has demanded that the “minimum wage should be increased from the current N30,000 to N200,000 before the end of June 2023, with consequential adjustment on the cost of feeding allowance, like feeding, transport, and housing”.

While addressing journalists on Monday, the union’s President, Mr Festus Osifo, and General Secretary, Mr Nuhu Toro called for the immediate implementation of the demands, including a Tax holiday for government and private sector employees earning less than N200,000 or 500USD monthly.

TUC also asked that “A representative of state governors would be a party to any negotiation and must commit to implementing the new minimum wage.”

They also called for introducing PMS Allowance for workers that earn between N200,000 to N500,000 or 500USD to 1,200USD.

The NLC said the authorities should have listened to the poor masses before removing the fuel subsidy.

Prof Oguguo Egwu, the Ebonyi State chairman of the Congress, made the remark in an interview with the News Agency of Nigeria, NAN, on Monday in Abakaliki.

“The increase has led to the suffering of the masses. Imagine paying N550 per litre of fuel in Ebonyi here. Go back to the status quo and let us have room for negotiation. There is a need to listen to the poor.

“The federal government can do it without inflicting injury on citizens. Make sure that the people are not suffering. Have the interest of the masses at heart and not cause injury to them,” Egwu said.

On his part, the Enugu State chairman of the NLC, Comrade Barrister Fabian Nwigbo, told DAILY POST in an interview that the national body of the NLC would be meeting by 2 pm on Tuesday (yesterday) to deliberate on the communique reached with the federal government.

Nwigbo lamented that the action being taken by the Federal Government, including its meeting with the NLC, is belated because people are already suffering.

He stated that the government should have put in place measures and palliatives to cushion the effect of the new policy.

”The national body has just invited us for a meeting at 2 pm today (Tuesday), and I think it is in line with that information on social media. So we, all of us in different States, have been discussing on our platform, waiting for that meeting to know whether that was what happened in that meeting, and then the way forward.

”But for now, we have not been properly briefed. I only got a message this morning inviting me to a virtual meeting by 2 pm. at the national office.

“So the practice is that since we had our emergency NEC last Friday, we were told not to do anything other than issues raised and agreed upon during that meeting, one may not comfortably discuss those items in that communique without hearing from the national.

”I cannot say exactly whether they (States) are carried along because I don’t have that privilege of that information. However, it is normal for state governments to wait and decide from agreements between labour or critical stakeholders and the federal government.

“So states will not come out now to say, remove fuel subsidy or don’t remove fuel subsidy, or we will do this or do that. They are waiting for that to be concluded at the national level. And after that decision, they will be given direction on what to do.

“I am aware that the presidency is saying that it has discussed with the Governors and that discussion will continue regarding what should be the palliatives that will help cushion the effect of this fuel subsidy removal.

“But to me, those things are belated. If you want to remove fuel subsidies, after removing them, you start talking about how to improve things for people; it is belated.

“Ordinarily, even with the communique that is coming now, issues ought to have been discussed and the communique in place before he removed the fuel subsidy.

”What I am saying in effect is that whatever they are doing now, even the meeting between the NLC and government representatives, for me, it’s belated; people are already suffering.

“And you know, in Nigeria, once the commodities prices have already stepped up, they can never come down, no matter what you decide. But there is nothing we can do; we will continue.

“If we succeed in our actions by his grace, the government may decide to put in our agreement certain things that may help people survive this harsh condition that the federal government has put everybody into.”

However, the Director-General of Michael Imoudu National Institute for Labour Studies, MINILS, Ilorin, Comrade Issa Aremu, hailed the ongoing dialogue between FG and the Labour union.

Comrade Aremu told DAILY POST that the current policy debate is good for national development, adding that what is needed is to “work out win-win options” for the downstream petroleum sector in particular and Nigeria as a whole.

He expressed optimism that through the exchange of facts, negotiations and compromises, both the government and labour would find common ground for the inevitable reform of the downstream petroleum sector, which he said the sector unions, namely PENGASSAN and NUPENG, have been pushing for years.

“Neither policy reversal nor mass protest is an option, but genuine negotiation and social dialogue would make the deregulation policy a reality without compromising the welfare of the citizens with respect to welfare and securing jobs,” he said.

Comrade Aremu commended the initiative of President Bola Tinubu for meeting with labour leaders, which he described as “not only labour friendly but a leader that is accessible and open to engagement”.

He challenged labour and civil society to reciprocate the presidential gesture with creative options to protect public and private jobs.

Meanwhile, the NLC says it has rejected the ruling of the National Industrial Court, NIC, favouring the Federal Government against the interest of the masses and workers in the country.

Mr Joe Ajaero, NLC President said this in a communique jointly signed with Mr Emmanuel Ugboaja, General Secretary of the Congress at the end of an emergency National Executive Council, NEC, meeting on Tuesday in Abuja.

It said that the NEC meeting was called to discuss the outcome of the dialogue between the NLC and the Federal Government on the petroleum product price hike.

The NLC said the NEC in session resolved that there was a need to show the government that it was important to comply with laid down laws and court rulings.

“Especially as it concerns obedience to the rulings of the Courts and their brazen disregard to the 2023 Appropriation Act.

“To therefore support and accept the decision of the leadership of Congress to suspend the proposed strike action in compliance with the flawed rulings of the NIC.

“Also to allow negotiations to flow freely and enable final agreement during or after the 19th June, 2023, negotiation round with the federal government.

“To however register in strongest terms its disgust and disapproval with the ruling of the NIC for its continuous weaponization of the instrument of Exparte injunction in favour of the government.

“That it is against the interests of Nigerian workers in defiance of the position of the Supreme Court on the use of this instrument,” the communique read.

Congress further stated that all Affiliates and State Councils of Congress are hereby directed to suspend further action and mobilisation until the outcome of the final negotiations.

The communiqué commended all Affiliates and State Councils on their robust mobilisation towards a successful nationwide strike and to also remain vigilant in case there is a need to continue.

[DailyPost]

The House of Representatives has called for a forensic audit of the Nigerian National Petroleum Company Limited to determine its assets and liabilities as well as its current market value.

According to the House, the audit has become necessary due to the metamorphosis of the Nigerian National Petroleum Corporation into a limited liability company.

The House’s Ad Hoc committee on NNPCL’s assets and liabilities in its report which was presented to the legislature on Tuesday, claimed that its findings showed that asset worth $64bn (about N28tn) was unveiled by former President Muhammedu Buhari but during the transfer, only $58.8bn (N26tn at the official rate of N450 to $1) was transferred, leaving a balance of N2tn unaccounted for.

It recommended that NNPCL should re-assess its accounting system.

The committee presented  its report a week after the Group Chief Executive Officer of the NNPCL, Mele Kyari,  said the Federal Government still owed the company N2.8tn that it had spent on petrol subsidy.

The House on December 1, 2021, resolved to set up an ad hoc committee to determine the assets and liabilities of the NNPC before it was fully privatised as prescribed by the Petroleum Industry Act, which was to carry out the exercise within eight weeks.

The probe was based on a motion moved by a member, Ibrahim Isiaka, titled ‘Need to ascertain the total consolidated inventory, assets, interests and liabilities of the Nigerian National Petroleum Corporation and its subsidiaries before transfer to the NNPC Limited to ensure a glossary accounting system.

Following the enactment of the Petroleum Industry Act, the NNPC and its subsidiaries had been unbundled with the creation of an NNPC Limited, the Nigerian Upstream Regulatory Commission, and the Nigerian Midstream and the Downstream Petroleum Regulatory Authority.

The Corporate Affairs Commission also in September 2021 incorporated the NNPCL in line with the provisions of the PIA.

The House, at the plenary on Tuesday, considered and adopted the report of its ad hoc committee to ascertain the total inventory, assets, interest, and liabilities of the Nigerian National Petroleum Corporation and its subsidiaries.

When contacted, the spokesperson for the NNPCL, Garba-Deen Muhammad, told our correspondent that the firm had nothing to hide and would answer any question from the Reps members.

“They have been asking us questions and we’ve been answering them. So if they have any more questions for us, we will oblige and attend to them.

“We respect them and recognise their rights to perform their functions. NNPCL doesn’t have anything to hide.”

On refineries, he explained that the company would ensure that the facilities deliver up to expectation and was working hard to get the plants running.

In its report, the committee stated, ‘’From findings, asset worth $64bn (about N28tn) was unveiled by Mr President (Buhari) but during transfer, only $58.8bn (N26tn at the official rate of N450 to $1) was transferred, leaving a balance of N2tn unaccounted. NNPCL should be meant to re-assess her accounting system.”

 The committee recommended that the NNPCL and Federal Government “should work modalities that will ensure removal of subsidy in accordance with the Petroleum Industry Act that stipulates that subsidy be removed within six months of operation of the PIA.”

The committee also recommended that the investments and operations of international oil companies should “be further investigated and scrutinised” before implementation and Fund for Innovation Development.”

The committee further recommended that “External auditors should audit the liabilities of over N2tn being inherited by NNPC Limited on behalf of the federation. There is a need to further establish the current market values of NNPC, especially under a devalued naira regime.

“The Federal Government should investigate foreign desk offices of NNPC subsidiaries with locations abroad, and make IOCs establish offices in Nigeria and develop a framework that will make the companies answerable to the laws of Nigeria.

“Forensic auditors to first audit all NNPC accounts with all the banks to verify the following: the true amount owed any bank as per loan(s) granted, the exact movements of funds from NNPC accounts as well as overcharges by banks which is a huge amount of money and will be a source of additional revenues to the Federal Government, and the defaulting banks should be made to refund the sum discovered back to NNPC/Federal Government with interest.”

P’Harcourt equipment

The committee also recommended that the NNPC should “auction the equipment and transfer proceeds of equipment awarded for Port Harcourt refinery in the sum of $250m (yet to be supplied) to NNPC Limited.”

According to its findings, the committee noted that the NNPC was alleged to have over 25 subsidiaries, whose profits, assets, and liabilities were transmissible to NNPC Ltd, “but the NNPC only transmitted records of only 21 subsidiaries.”

The committee noted that the NNPC, in its latest Group Audited Financial Statements, reported total assets of N15.84tn for 2020 and N16.2tn for 2021.

“However, in direct contrast to that position, NAPIMS alone, in its audited account for 2020 reported N21.04tn,” it stated.

According to it, NAPIMS has total assets of N4.84tn more than NNPCL, which it claimed was a mystery that needed to be unravelled.

The report partly read, “The issue of subsidy/under-recovery that has bedevilled the nation over the years seems to have reared its ugly head in our findings. There is evidence that the subsidy/under-recovery cost is being overestimated. The same costs seem to be charged against the federation in the audited accounts of both NNPC and NAPIMS.

“Nigerian publications on the 3rd of January 2022, pointed to the fact that NNPC is asking the Federal Government to pay additional $1.5bn to five IOCs as outstanding cash-call balance. This is additional liability about to be passed on to NNPC Ltd.

“However, our findings show that as a matter of fact, the federation has actually paid the liabilities of over $2bn through President Muhammadu Buhari’s directive; found a liability of over N2tn that NNPC Ltd is about inheriting on behalf of the federation. No reasonable basis has been established for this liability which is associated with Nigeria Agip Oil Company.”

The committee said available information showed that the NNPC assets were stated at “historical cost and written-down values,” while some subsidiaries of the NNPC, with locations in foreign countries, buy crude oil and gas from NNPC “without evidence of their payments for the purchases.”

It added, “These companies are indicted to be operating without employees and no fixed assets; yet over N30bn is traceable to some of them;

“Standard Chartered Bank is closing all its Nigerian branches and the nation has so much to worry about, considering the huge funds warehoused therein in the names of NAPIMS and NNPC.”

According to the committee, 80 companies supposedly owe the sum of $5.76bn on royalties, $1.0bn on gas flare penalty, while concession rental is $13.173m and royalty on gas is $409.58m, with royalty on gas in naira, N39.82bn.

“Hence, the recommendation is to recover the above debts and transmit to NNPC Ltd or confiscation of assets value of the debt from the debtors and transfer to NNPC Ltd,” the panel declared.

The committee also disclosed that NNPC spent over N1.48tn ($396m) on the rehabilitation of refineries between 2015 and 2022 “without significant outcome.” The Port Harcourt refineries received about $1.5bn for total rehabilitation, which was awarded to Technimont SPA of Italy, “whereas the same refinery awarded the contract for equipment of the refinery for over $250m yet to be delivered.”

The report further read in part, “The Ministry of Petroleum Resources; Ministry of Finance, Budget and National Planning; Central Bank of Nigeria, Auditor-General for the Federation and the Accountant-General of the Federation could not provide the committee with the exact monetary value of total assets and liabilities of NNPC. The CBN was only able to provide how much was paid into the Federation Account by NNPC and deposit banks of the organisation.”

The House of Representatives also called on the Federal Government to outsource the nation’s three refineries to international companies.

The refineries have a combined capacity of 410,000 barrels per day, for maximum production

The House also asked the NNPCL to take full responsibility for the delays in rehabilitating the moribund refineries, urging the nation’s oil firm to be sincere with Nigerians on the true state of the facilities.

However, the Trade Union Congress opposed the calls for the privatization of the refineries, describing the move as a ploy by the political elite to sell the assets to their cronies.

The Secretary General of the congress, Nuhu Toro who spoke in an interview with our correspondent in Abuja described the idea as “laughable.”

He said, “It is laughable. They want to sell the refineries to themselves. We don’t agree. It is a no, no. They can’t be allowed to sell our national assets.”

PENGASSAN backs  privatisation

But the Petroleum and Natural Gas Senior Staff Association of Nigeria said the call by the National Assembly to allow private entities to run Nigeria’s refineries was in order.

The National Public Relations Officer, PENGASSAN, Kingsley Udoidua, said, “PENGASSAN has always declared what should be done on matters like this. If you look at the NLNG (Nigeria Liquefied Natural Gas Limited) model, it is both the combination of privatisation and the government’s stake in it, which is the model we’ve been canvassing for.

‘’So, if that’s what the National Assembly means, then it is fine because PENGASSAN’s position is that the government should follow the NLNG model. If you study that model, it is partly government and private.’’

The Director General of the Nigeria Employers’ Consultative Association, Wale Oyerinde, emphasised the critical importance of transparency in the privatisation of refineries, as he lent his support to the growing demand for the privatisation of the facilities.

He said, “The oil refineries are some of the many national assets that have faced serious operational challenges for reasons yet unclear. To improve efficiency in the operations of government assets, we believe that transparent privatisation, with Nigerians owning a majority share, will serve the best interest of Nigeria and its citizens.’’

LCCI speaks

Also speaking, the Deputy-President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa said the refineries should have been privatised a long time ago.

According to him, allowing the private sector to take over the refineries would engender competition which would inevitably lead to growth, similar to what followed the privatisation of the telecommunications sector.

Idahosa said, “We’ve been saying it for over 30 years. At the time that Yar’Adua came in, two of the refineries had already been privatised. They reversed the privatisation, and that is what we have been suffering from till now. If they did not reverse the privatisation at the time, we would not be talking about anything like fuel subsidy or building of refineries.’’

Similarly, an economic expert at Olabisi Onabanjo University, Prof Sheriffdeen Tella, argued that if the refineries were privatised, it would present another avenue for the government to draw in revenue through Company Income Tax, Personal Income Tax, Land Grants, among others.

In the report on the state of the refineries, the House also frowned on the slow rehabilitation of the Port Harcourt Refining Company, blaming the NNPCL and demanding that the contractor be sanctioned for failing to meet some of the terms of the contract.

 The committee recommended that the NNPCL should take full advantage of the Petroleum Industry Act 2021 to fast-track the rehabilitation programme of the refineries “for a deregulated business environment and restore the refineries to minimum 90 percent nameplate capacity utilisation.”

 The committee also said the NNPCL and the contractor, Tecnimont SPA of Italy, should ensure that Phase 1 of the rehabilitation works in Refinery Area 5 of the Old Port Harcourt Refinery, which has a processing capacity of 60,000 barrels per day, is restored to 54,000 barrels per day of processing capacity, representing 90 percent capacity utilisation, “should unfailingly meet the new target date of September 2023,” from by March 2023.

The NNPCL and Tecnimont SPA of Italy were also urged to ensure that Phase 2 of the rehabilitation works in Refinery Areas 1&2 of the New Port Harcourt Refinery, with an installed capacity of 150,000 barrels per day, is restored to the estimated processing capacity of 135,000 barrels per day, representing 90 percent capacity utilization.

This is expected to lead to a combined processing capacity of 189,000 barrels per day from the OPHR and the NPHR and achieve the targeted date of December 2023.

 The committee also said the NNPCL and another contractor, Daewoo E&C Nigeria Limited, should ensure that the WRPC quick-fix repairs project for the restoration of Refinery Areas 1&2 to operate at a minimum 60 percent, with an expected processing capacity of 75,000 barrels per day petroleum product output, meets the 12 months’ target date and comes on-stream in September 2023.

 The House also resolved that “The NNPCL should ensure the immediate award of contract for the rehabilitation of the Kaduna Refinery and Petrochemical Company.

 “The NNPCL should strive to achieve the three to four-year standard regular Turn Around Maintenance global best practice for the refineries after the full completion of rehabilitation works to ensure sustainable refinery operations and value maximization.’’

The report also stated, “The Federal Government and the NNPCL should consider outsourcing the Operations and Maintenance of the refineries to reputable international oil companies to guarantee the reliability, optimal operational availability and to maximise value for money to the nation;

 “The Federal Government and the NNPCL should suspend the Direct Supply-Direct Purchase (oil swap) arrangement, remove subsidy on Petroleum Motor Spirit, deregulate prices on the product to ensure competitiveness and provide adequate palliative measures to reduce anticipated economic impact and hardship on Nigerians and the economy.”

 The House equally resolved that “a forensic audit of all the rehabilitation projects in the three refineries be further conducted, as obvious omissions were noted in the submissions made by the NNPCL, seeming duplication of projects observed and possible double payments made.”

 The lawmakers further resolved that the 10th National Assembly be mandated to carry out legislative oversight on the ongoing rehabilitation works to ensure that the nation achieves the expected processing capacity of 189,000 barrels per day from the PHRC and 75,000bspd from WRPC, plus additional processing capacity from the Dangote Refinery, in order to meet the nation’s domestic needs for petroleum products by December 2023.

 The 10th Assembly was further mandated to ensure continuous legislative oversight of the ongoing rehabilitation programme by the NNPCL at the Port Harcourt, Warri, and Kaduna refineries in order to achieve project target timelines and rehabilitation of the refineries to bring them back to maximum refining capacity.

The House further resolved that “The Federal Government should ensure the activation of all the 37 non-active licences approved and issued to certain private refineries for maximum operations and competition, in order to eliminate the possibility of a monopoly in the downstream sector or revoke such licences and reissue to desiring competent companies.’’

It added, “The NNPCL should be called to take responsibility for the continued failed assurances for the commencement of operations and coming on-stream of the Port Harcourt refinery and the failure of the contractor (Tecnimont SPA of Italy) to deliver on the contract terms and project target timelines.

‘’The NNPCL (should) be called to be sincere to Nigerians in the overall interest of the nation on when exactly the Port Harcourt Refinery Rehabilitation Project will be delivered and the facility fully functional.

 “The contractor handling the rehabilitation of the Port Harcourt refinery, Tecnimont SPA of Italy, be reprimanded for the failure to deliver on the terms of the contract agreement, demonstrating a lack of capacity to achieve expected project target timelines, and continuously shifting the expected operational dates from December 2022 to March 2023; from March 2023 to the second Quarter of 2023, and from second Quarter of 2023 to now September 2023.”

 The committee also recommended that the NNPCL should pay the €202,500.03 outstanding payments due to SAIPEM Nigeria Limited on the contract for the Technical Plant Survey of Warri and Kaduna Refineries as the job was concluded and fully reported.

 According to the lawmakers, the nation’s three refineries became unproductive from the year 2010, making the following range of losses: PHRC at 7.6 percent losses to the tune of N132.526bn from 2012; WRPC at 6 at losses to the tune of N111.376bn from 2014; and KRPC at 10 percent losses to the tune of N122.621bn from 2014.

[Punch]