Following the approval of President Bola Tinubu for the implementation of zero percent import duty and exemption of value-added tax (VAT) on basic food items, the Nigeria Customs Service (NCS) has issued new guidelines for the implementation of the presidential directive.

The approval was confirmed in a letter forwarded by the Ministry of Finance to the Nigeria Customs Service (NCS).

The Customs Service thereafter, in a statement on Wednesday by its spokesperson, Abdullahi Maiwada, listed and identified six food products that will benefit from the Zero Percent Duty Rate (0%) and an exemption from Value Added Tax (VAT) on certain essential food products.

The NCS provided guidelines detailing the eligibility requirements for businesses that want to take part in the zero-duty importation initiative, which is designed to bolster local food security and make essential goods more accessible and affordable.

The guidelines outline the specific food items included in this policy, as well as the compliance requirements that importers are expected to follow.

The fundamental food products that qualify for the zero percent duty rate include husked brown rice, grain sorghum, millet, maize, wheat, and beans.

S/N Item Description ECOWAS CET H.S. Code Previous Duty Rate + Levy New Duty Rate
I. Husked Brown Rice 1006.20.00.00 30% 0%

II. Grain Sorghum – Other 1007.90.00.00 5% 0%

III. Millet – Other 1008.29.00.00 5% 0%

IV. Maize – Other 1005.90.00.00 5% 0%

V. Wheat – Other 1001.19.00.00 20% 0%

VI. Beans 0713.31.90.00 20% 0%

The statement said the measure is aimed at mitigating the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens.

“Drawing from the Presidential directives aimed at alleviating the hardship faced by Nigerians due to high prices of essential food items, the Nigeria Customs Service (NCS) is pleased to announce that His Excellency, the President of the Federal Republic of Nigeria Bola Ahmed Tinubu GCFR through the Honourable Minister of Finance and the Coordinating Minister of the Economy, Olawale Edun has approved the regulation for the implementation of a Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on selected basic food items.

“This measure aims to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens.

“The initiative is part of the government’s broader efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.

“However, it is important to emphasize that while this temporary measure is intended to address current hardships, it does not undermine the long-term strategies put in place to safeguard local Farmers and protect Manufacturers.

“It is pertinent to note that the implementation of this policy will focus on addressing the national supply gap. To participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and have been operational for at least five years. It must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.

“Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with a capacity of at least 100 tons per day, operate for at least four years and have enough farmland for cultivation. Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation.

“The Federal Ministry of Finance will periodically provide the NCS with a list of importers and their approved quotas to facilitate the importation of these basic food items within the framework of this policy.

“The policy requires that at least 75% of imported items be sold through recognized commodities exchanges, with all transactions and storage recorded.

“Companies must keep comprehensive records of all related activities, which the government can request for compliance verification. If a company fails to meet its obligations under the import authorization, it will lose all waivers and must pay the applicable VAT, levies, and import duties.

“This penalty also applies if the company exports the imported items in their original or processed form outside Nigeria,” the statement reads.

The policy will be in effect from July 15, 2024, until December 31, 2024.

The Association of Master Bakers and Caterers of Nigeria in Lagos State has lamented the incessant increase in flour prices in the country.

The association made this known during a protest held in the state on Wednesday.

Addressing newsmen during the protest, the association’s chairman, Chief Ayoola Mathew, said despite the recent approval of a duty-free importation waiver on wheat, maize, and other commodities, flour prices kept rising.

Ayoola also expressed concern over Nigerian millers’ failure to implement the waiver. This, he said, had led to a surge in flour prices, making it difficult for bakeries to operate smoothly.

He said, “In July, the Federal Government of Nigeria announced the approval of a 150-day duty-free window to allow the importation of wheat, maize, and husked brown rice as part of measures to alleviate rising food inflation across the country, effective August 1, 2024. The purpose of the Federal Government’s notable action was to help bring down the prices of food items in the market, making some food items more accessible and affordable for the masses.

“As Nigerians and members of the Master Bakers and Caterers of Nigeria, We sincerely commend the Federal Government upon this approval as part of measures to combat rising food inflation in Nigeria. However, it’s unfortunate to note that the Nigerian millers have yet to implement this relief on price of their commodities.”

He added that the association’s findings revealed that some millers chose to ignore the waiver and instead continued to inflate the price of flour daily.

The body stressed that such an action had not only disregarded the Federal Government’s efforts to alleviate the suffering of Nigerians but also a severe blow to their industry.

“It’s a way of robbing the innocent Nigerians. The millers did not consider our call for price reduction but rather advised us to inflate the price of bread more to inflict pain and hardship on the common man, which is an inhumane action to take.

“This constant increase in the price of flour by millers has made it impossible for bakeries to operate and function smoothly which has also led to the shutdown of many bakeries and their staff being laid off. Lives are at stake when basic needs are scarce. Nigerians complain daily due to a lack of basic needs for survival and bread is one of them. The flour millers are mounting pressure on human beings unnecessarily.”

Matthew stated that the price of flour had increased to N67,000 per bag, up from N8,000 10 years ago, making it challenging for bakeries to produce bread at an affordable price.

The association however appealed to the Ministry of Industry, Trade, and Investment for an urgent intervention in the escalating flour price crisis.

It also urged the government to investigate the activities of Nigerian millers and sugar producers, assess their operations, and enforce price reductions to cushion the effect of hunger on Nigerians.

While demanding a reduction in the prices of sugar, flour, and other baking ingredients, the body also sought surplus distribution and accessibility of commodities to bakers. 

According to Mathew, the association proposed a reduced flour price range of between N30,000 and N35,000 per bag and called for proper monitoring and sanctions on non-compliant agencies, groups, or individuals.

The bakers warned that the shutdown of bakeries due to high production costs would exacerbate hunger and unemployment, emphasising the need for urgent government intervention to enforce the waiver and reduce food prices.

“We propose a reduced flour price range of between N30,000 and N35,000 per bag. We also demand a surplus in the distribution and accessibility of commodities to bakers. We urge the Federal Government to take decisive actions to ensure that the waivers on wheat importations are enforced and that the millers comply with the intended purpose of reducing the cost of flour and sugar. The Federal Government waiver should reflect the cost of food items bought,” he concluded.

A lifeless body of a baby suspected to be a day-old has been found on a church premises (name withheld) at Engr Chukelu Street, Ububa South, Nkpor Agu in the Idemili North Local Government Area of Anambra State.

No one knows whether the baby girl was dumped there dead or alive, but our correspondent gathered from the residents of the area on Wednesday that the lifeless body was found in the early hours of Monday, fuelling suspicions that it might have been dumped in the midnight of Sunday.

PUNCH Metro further gathered that the incident caused a stir within the community as people gathered to catch a glimpse of the situation.

This was corroborated by a two-minute video currently circulating on social media, showing the location where the baby was dumped and covered with dried plantain leaves with the voiceover in the video calling for whoever knew the owner of the baby to come forward and disclose the identity of the mother to the police for further investigations.

The male voice, who described himself as the Chief Security Officer of the Nkpor community, said, “I had the misfortune of going to examine a dead one-day-old girl abandoned at a church premises at Engr Chukelu Street, Ububa South, Nkpor Agu.

“Anyone who knows who may have committed this dastardly act should please come forward so we can assist police in their investigation. The incident has been reported to the Ogidi Police Division.”

When our correspondent visited the community on Wednesday, he observed a group of people, including residents of the community, gathered around the area and analysing the development.

It was gathered that the residents on sighting the abandoned baby invited the neighbourhood security watch who came and inspected the situation before inviting the police.

Speaking to our correspondent, the community’s Chief Security Officer, Chris Udeze, said efforts made by operatives to trace the mother had been unsuccessful, as no one was able to recognise or identify the baby.

Udeze said, “We were alerted to the scene of the abandoned dead baby on Monday morning and when we got there, we met the lifeless body, suspected to be that of a one-day-old baby covered with leaves.

“We suspect that the baby might have been dumped there on the midnight of Sunday, but we couldn’t ascertain if the baby was dumped dead or alive. After inspecting the situation, we quickly alerted the police officers at the Ogidi Police Division, who also came around to examine the area.

“After examining the scene, the policemen directed that the lifeless body be evacuated. The incident is still under investigation with the aid of community members, who may know the mother of the baby. People have been told to watch out for any lactating woman, this will aid in the investigation and arrest of the perpetrator of such an act.”

Another resident of the area, who gave her name simply as Nkechi, said the baby must have been abandoned by a woman who got pregnant out of wedlock.

She said, “The person must have abandoned the baby while still alive, but due to severe exposure to cold, the baby died. This is the first time we are seeing such an occurrence in the area.

“The abandoned lifeless body of the baby was found at a corner of the church premises covered with dried plantain leaves on Monday. The church premises are not fenced nor gated.”

However, when contacted on the development on Wednesday, the spokesman for the state police command, SP Tochukwu Ikenga, expressed surprise, saying, “Very unfortunate. I will escalate this to the Area Commander for proper investigation and get back please.”

But a police source from the Ogidi Police Division, who craved anonymity because she was not authorised to do so, confirmed that the lifeless body was found on the premises of a church, but had been evacuated and buried. He added, “Investigations have begun and locals of the community have been told to look out for any lactating mother in the area whose baby is not with her and report to the station.”

Former federal lawmaker, who represented Kaduna Central in the 8th Senate, Senator Shehu Sani, has insisted that he received ₦13.5 million during his time while current members of the 10th Senate are receiving ₦21 million monthly.

Naija News reports that this comes amid the controversy over the monthly earnings of federal lawmakers, and the stance of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) that Senators earn N1 million each.

In an interview on Channels Television’s Lunchtime Politics on Wednesday, Shehu Sani maintained that the RMAFC is being economical with the truth and playing with figures.

Sani also cited the statement of Kano Senator, Kawu Ismaila, who attested to receiving ₦21 million monthly.

He said, “I was a Senator and I believe I had correct knowledge about what actually happened at that time and I believe is what is happening now. Well, RMAFC was just playing with figures, they were specific in saying this is the salary of Senators and then they went on to give a breakdown of N20 million which they said was what every Senator earn in four years.

“But I think they are being economical with the truth and I think I understand their fears in terms of telling the truth when they know what is actually happening.

“Before I came to this interview I was going through the papers and I saw a statement credited to one of the Senators from Kano, Distinguished Senator Kawu Ismaila, who confirmed what I said about Senators particularly of this set receiving up to N21 million monthly.

“During my time, I was in the Senate and I was pricked by my conscience as an activist who went to the Senate to unveil what has been made secret for over two decades.

“I believe that taxpayers and Nigerians in general have the right to know how much their legislators are earning and how much they are actually been given. I went on as a serving Senator then to disclose what I do receive monthly, what is credited into my account at that time and it was 13.5 million.”

Passengers in a Bus Rapid Transit (BRT) were reportedly attacked and robbed by some street thugs on Tuesday, in Orile Lagos State.

A victim of the attack, Dare Abiola, told The Nation that street boys disguised as protesters against the seizure of motorcycles by the task force, attacked their bus around 1 pm and took away the passengers’ valuables.

He lamented that his money and some of his valuables were stolen by the hoodlums.

He added that the attack went on for about 20 to 30 minutes without the intervention of security personnel.

He said: “I boarded a BRT bus from Mile 2 going to CMS. When we got to the Odunade bus stop, we noticed a crowd had gathered, and some were marching to the Orile bus stop.

“From what we heard, they said they were going to Orile police station to go and attack some policemen who I learnt had raided some motorcyclists around the Odunade-Coker axis.

“As we moved further, the crowd grew. When we got to the Alafia bus stop, in front of the NNPC fuel station, some guys started breaking the BRT windshield and the windows.

“Personally, they collected my bag and my phone. Before I released the items, they threatened to stab me with a Trophy bottle.”

However, he noted that he went to Orile police station to file a formal complaint.

Speaking on the incident, the state’s police spokesperson, Benjamin Hundeyin, noted that he does not have the details of the incident yet.

Real Madrid’s new signing, Kylian Mbappe, scored a goal in his debut game for the Spanish giants and won his first-ever European club title.

Earlier today, Real Madrid clashed with Italian side Atalanta at the Stadion Narodowy in Warsaw, Poland, for the 2024 UEFA Super Cup title.

Ahead of the tie, most football enthusiasts predicted that the Italian side who defeated unbeaten German Bundesliga champions Bayer Leverkusen to win the Europa League could do the same against the Spanish giants. However, coach Carlo Ancelotti and his star-studded side proved too good for Atalanta.

The spot-light was on Kylian Mbappe who completed his free transfer to his dream club this summer from Paris Saint Germain. The 25-year-old French striker shared the spot-light with Nigerian forward Ademola Lookman, who scored a hat-trick to win the Europa League for Atalanta last season.

As expected, Mbappe shone brighter by playing a vital role in ensuring that Champions League-winning teams extend their superiority over Europa League-winning teams in the UEFA Super Cup to 29 wins, a nine-win difference.

After both sides played a goalless draw in the first half, Federico Valverde scored the match opener in the 59th-minute courtesy of Vinicius Junior’s assist. Nine minutes later, Kylian Mbappe took full advantage of Jude Bellingham’s assist to seal a 2-0 victory for Real Madrid.

That won Mbappe his first UEFA Super Cup and kick-started his reign at Real Madrid on a very high note.

The Nigerian Customs Service has disclosed that the federal government is set to forfeit approximately N187 billion due to the recent directive to suspend import duties on staple food items for six months. This information was revealed by the Comptroller General of Customs, Bashir Adewale Adeniyi, during the 2nd Economic Confidential lecture and book presentation in his honour, titled “Impactful Public Relations in Customs Management,” held in Abuja.

Adeniyi explained that the suspension of customs duties and levies on key food staples, including beans, maize, rice, and wheat, is part of the government’s strategy to reduce the cost of food items. However, this policy will result in significant revenue losses for the federal government. He noted that between 2020 and 2023, these food imports generated around N3.81 trillion in revenue, including N189 billion in customs duties and over N500 billion from various government levies.

“Wheat alone generated N3 trillion, maize N340 billion, rice N195 billion, and beans N146 billion. Therefore, the estimated revenue forfeiture from the suspension of import duties on these staple food items for six months is about N187 billion,” Adeniyi stated.

He added that the Customs Service awaits guidelines from the Ministry of Finance and will ensure proper implementation by designing special corridors for clearing food imports.

Vice President Kashim Shettima, represented by Dr. Tope Fasua, Special Adviser to the President on Economic Matters, expressed optimism that the government’s food reforms would soon positively impact the economy.

Comptroller General Adewale Adeniyi also handed over his vice chairmanship of the World Customs Organisation, North and Central African region, to his Malian counterpart, Ahmadou Kounate, during an official ceremony in Abuja. Adeniyi emphasized the need for technology to advance customs practices, while Kounate pledged to enhance transparency, implement strategic action plans, and improve manpower development to boost trade facilitation.

On Tuesday, a controversial document entitled the Counter Subversion Bill 2024 went viral on social media.

The bill was sponsored by the Speaker of the House, Tajudeen Abbas, and it scaled through the first reading and proceeded to the second, where its general principles would be debated on July 23.

It aims to impose stringent penalties on Nigerians who fail to recite the newly approved national anthem or abuse politicians or community leaders.

According to the bill, anyone found guilty shall be fined up to N5 million and would face five to 10 years prison sentence or both.

Meanwhile, Nigerians have begun calling for the abolishment of the bill while describing it as “anti-people” and a “decree in democratic society”.

What the bill stipulates

The Bill “stipulates that anyone found guilty of destroying national symbols, refusing to recite the national anthem and pledge, defacing a place of worship with intent to incite violence, or undermining the Federal Government shall face a fine of N5 million, a 10-year prison sentence, or both.” 

The Bill also “states that anyone who sets up an illegal roadblock, performs unauthorised traffic duties, imposes an illegal curfew, or organises an unlawful procession will be subject to a fine of N2 million, five years in prison, or both upon conviction”.

Also, any person who “forcefully takes over any place of worship, town hall, school, premises, public or private place, arena, or a similar place through duress, undue influence, subterfuge or other similar activities, commits an offence and is liable on conviction to a fine of N5 million or imprisonment for a term of 10 years or both.”

“A person who professes loyalty, pledges or agrees to belong to an organisation that disregards the sovereignty of Nigeria, commits an offence and is liable on conviction to a fine of N3 million or imprisonment for a term of four years or both.”

“If you protest or set up an illegal roadblock, or perform unauthorised traffic duties, impose an illegal curfew, or organise an “unlawful” procession, you will be subjected to 5 years in prison with N2m fine or both upon conviction,” it added among others.

Why the introduction?

The bill was introduced to target activities perceived as threats to national security, stability, or public order.

Before now, many politicians, including executives and legislators believed that social media have been a platform where Nigerians express their freedom of speech without hassle as they could barely see many of them. However, there have been insinuations that infiltrators are using the same platform to destabilise the peace of the country without minding the authorities involved.

The recent example is the mixed reactions that followed the statement of the Senate President, Godswill Akpabio, who reportedly said that hunger protesters should go ahead with their demonstration while they (politicians) will be home eating.

Another scenario is the knocks that trailed the statement of the Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, who proclaimed that social media needs to be regulated.

According to him, social media has become a societal menace and must be regulated.

“As many people do not understand that once the send button is hit, there is a potential to reach millions of people around the world, which is capable of causing a great danger not just in the society but even unintended consequences to the individuals that are receiving information which may include security of life,” the statement quoted Gbajabiamila as saying.

The implementation of the amended Cybercrime Act 2015 seems to be devoid of what the Counter Subversion bill is pushing with its distinct punishments and punitive clauses.

Speaker Abbass’ defence on the bill

On Wednesday, Abbas, in his defence, said the bill was chiefly sponsored to cater to the critical aspects of national security.

According to him, the Counter Subversion Bill was introduced in the House of Representatives on July 23, 2024 and not Tuesday.

He said, “The Bill aims to strengthen Nigeria’s anti-terrorism framework by addressing subversive activities carried out by various groups, including associations, organisations, militias, cults, bandits, and other proscribed entities.

“This is in line with similar legislation in countries like the United Kingdom, Spain, India, Turkey, Canada, and Australia.”

The Speaker, also reaffirmed the House of Representatives as the “People’s House,” welcomed robust public engagement and discussions on the contents of the Bill.

He stressed that concerns and suggestions from Nigerians are crucial in shaping the final outcome of the legislation.

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has identified 22,074 suspicious personnel on the Federal Government’s payroll.

This is despite the implementation of the Integrated Payroll and Personnel Information System (IPPIS).

The commission found that last year, the government disbursed N37,103,337,614.40 to these suspicious employees.

These personnel were found across various Ministries, Departments, Agencies, tertiary institutions, and notably, the Nigeria Police Force (NPF), which was allegedly the most implicated.

In the Ministries, Departments, and Agencies (MDAs), there were 12,714 personnel listed on the payroll who were not included in the service-wide nominal roll from January to December of last year.

The total financial impact of these 12,174 personnel was estimated at N34,808,740,634.37.

Additionally, approximately 4,190 former police officers were found on the IPPIS payroll.

These findings were shown in a report that resulted from a comprehensive review of the IPPIS conducted by the commission as part of the anti-corruption system assessment initiated by President Bola Ahmed Tinubu’s administration.

Investigators have revealed that the IPPIS has been subjected to tampering, manipulation, and alleged padding with ghost workers or suspicious personnel.

According to investigators from the ICPC, numerous instances of fraud have been identified in the IPPIS payrolls of the Ministries, Departments, Agencies (MDAs), and the Nigeria Police Force (NPF).

Corrupt practices observed in 20 MDAs include double salary payments, inclusion of fictitious names on the IPPIS, the use of fake identities to embezzle public funds, the operation of two IPPIS accounts, and the presence of ghost workers.

For example, approximately 95 personnel across various MDAs were found to have names listed on both the payroll and the nominal roll, yet discrepancies arose when their identities were verified through banking applications.

Among these 95 suspicious beneficiaries, eight share the same family name, and one individual is connected to two different IPPIS accounts.

Twenty-four workers from approximately 20 MDAs were reportedly receiving double salaries from their respective agencies, and in some cases, from additional sources.

At the Ministry of Works, 212 officers listed on the IPPIS payroll, with a combined monthly salary amounting to N31,986,324.40, were found to be absent from both the ministry’s nominal roll and the service-wide nominal roll of IPPIS.

The commission said: “The general overview of the Nominal Roll and Payroll of MDAs furnished by IPPIS and subjected to an analysis established a quantum disparity of 12, 174 personnel between the two parameters (nominal roll and payroll) used in the analysis.

“The said 12,174 personnel were visibly on the payroll but not on the service wide nominal roll between January and December 2023,

“The monetary value of the 12, 174 personnel is put at N34,808,740,634.37within the period under review. Included in the service wide disparity between the payroll and the nominal roll were the specific discoveries made from some MDAs used as a pilot scheme.”

“But the fraud was allegedly more entrenched in the Nigeria Police Force with thousands of ex-employees on the payroll.

The report added: “The analysis of NPF payroll focused on December 2023 nominal and payroll obtained from IPPIS for the purpose of comparison. The nominal and payroll have populated names of 350,028 and 312,047 respectively.

“It was discovered on the nominal roll that 37, 160 staff were described as “ex-employees. However, on the same nominal roll spreadsheet, 37,129 were described as “inactive” whilst the balance of 31 staff were also categorized as having “Active” status.

“Furthermore, 4,190 staff of NPF, described as “ex-employees” were found on the payroll of IPPIS to have received December 2023 salary amounting to N980,273,690.51.

“It was discovered that 3, 228 of the 4, 190 have their records consistent in all parameters used for validation on the payroll such as the names, IPPIS numbers and account numbers.

“Conversely, the account numbers of the remainder 962 staff were compared with that on the payroll and the findings revealed that the names of staff and bank names were inconsistent.

“It was also discovered that none of the IPPIS numbers of the aforementioned number of staff on the payroll was found on the nominal roll.

“Further analysis revealed that the names, IPPIS numbers and account numbers of 20 staff , who were not on the nominal roll, were found on the payroll given by IPPIS amounting to payment of N5,585, 256.13.

It was also discovered that 40 different staff on the 2023 payroll had different IPPIS numbers that had one account linked to the different names. Of the 40 staff, 21 received double salary.

“Furthermore, an account number linked to two officers revealed that the account is in the name of a company, Don Aks Ikoro Global. Some names do not match the account name on the nominal and payroll.”

The Port Harcourt Refining Company, a refinery under the management of the Nigerian National Petroleum Company Limited in Rivers State, has again failed to commence operations after about six postponements, The PUNCH reports.

It was observed that promises made to Nigerians by the Federal Ministry of Petroleum Resources and NNPC about the refinery have continued to witness multiple failures.

Since December 2023, NNPC, which is in charge of all the government refineries, has given Nigerians different dates, assuring citizens that the refinery would begin the sale of refined products soon.

In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated categorically that the refinery would come into operation in early August.

The same Kyari said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former President Muhammadu Buhari’s administration.

While appearing before the senate recently in July, Kyari boasted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.

“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna, but that of Port Harcourt will commence production early August this year.”

However, as August nears midpoint, the refinery has yet to commence operations, creating concerns that this might be another failed promise from NNPC.

Replying to inquiries from our correspondent on Tuesday, the NNPC said it was on course, even when the early August promise has expired.

In a chat with our correspondent, the NNPC spokesperson, Olufemi Soneye, tersely replied, “We are on course.”

Soneye did not reply to further questions, asking if he meant the refinery would still operate this month.

The PUNCH recalls that the 210,000 barrels per day refinery was said to have reached what the NNPC called mechanical completion of rehabilitation work in December.

It stated that the facility would start refining 60,000 barrels of crude oil daily after last year’s Christmas break.

Later in January, Kyari said the refinery was being tested and would be ready by the end of January. 

During the second month of the year, the Shell Petroleum Development Company of Nigeria Limited completed the supply of 475,000 barrels of crude oil to the Port Harcourt refinery, raising the expectations of marketers that production was set to commence.

This came a few weeks after NNPC said in January it was seeking to engage reputable and credible operations and maintenance companies to run the Port Harcourt refinery. NNPC did not disclose whether or not it had secured bidders to run the refinery.

In mid-March, Kyari said the Port Harcourt refinery would commence operations in two weeks, April.

“We are serving this country with honour and dignity. And we will make sure that the promises we make on the rehabilitation of these refineries will take place,” Kyari stated after he appeared before the Senate Ad-hoc Committee investigating the various turnaround maintenance projects of the country’s refineries.

As the April deadline elapsed, independent petroleum marketers told The PUNCH that the facility would begin production by the end of July.

Commenting on this, NNPC’s Chief Corporate Communications Officer, Soneye, said regulatory approvals from international bodies were the only impediment stalling the operational commencement of the refinery.

“We have said that the mechanical completion has been done and every other thing is done. There is crude oil and all the pipes are working; we are only waiting for regulatory approvals. As I said, some of our materials and the things we use have to do with nuclear, and we need the nuclear authorities to give us approval to use all those things at the site.

“And some of these approvals come from bodies outside of Nigeria. Until they give us those approvals, we can’t begin operations. We are ready to go but if something happens without it, which would be another issue. Everything has been completed in terms of our work, and once we get those approvals, it will start operations,” Soneye revealed in May.

Some Nigerians have expressed disappointment that the nation’s refineries have remained moribund for years. The country has since depended on imported fuel as it lacks refining capacity, spending up to N2tn monthly.

The President of the Dangote Group, Aliko Dangote, said $4bn had been spent by the Federal Government in an attempt to revive the nation’s refineries.

Obasanjo talks tough

While addressing some House of Representatives members who visited him in Abeokuta on Friday, former President Olusegun Obasanjo recalled how Shell refused his pleas to help run the refineries when he invited them during his days as the President, blaming corruption and poor management.

According to Obasanjo, some Nigerians later paid $750m to take over the refineries, however, his successor turned it back.

“I ran to him, I said, ‘You know this is not right’. He said, ‘Well, NNPC said they can do it’. I said ‘NNPC cannot do it’. I told my successor that ‘the refineries, from what I heard and know, will not work and when you want to sell them, you will not get anybody to buy them at $200m as scrap’. And that is the situation we are in.

“So, why do we do this kind of thing to ourselves? NNPC knew that they could not do it, but they knew they could eat and carry on with the corruption that was going on in NNPC. When people were there to do it, they put pressure. In a civilized society, those people should be in jail,” Obasanjo posited.

He told the lawmakers that he was aware they were investigating the $1.5bn the NNPC has spent on the Port Harcourt refinery.

The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years. The Alesa Eleme refinery complex is approximately 25km east of Port Harcourt.

In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery; a move that was criticised by former Vice President Atiku Abubakar, who advocated the sale of all government refineries.

While reacting to the plan to hand the refinery over to private managers, Atiku tackled former President Muhammadu Buhari and the incumbent President Bola Tinubu for failing to heed his advice that the refinery and others owned by the government should be sold to private individuals.

Earlier, NNPC disclosed that it signed an agreement with the African Refinery Port Harcourt Limited for the subscription of 15 per cent equity by ARPHL in the Port Harcourt Refining Company.

Parties in the deal said the agreement would lead to an increase in the refining capacity of the Port Harcourt refinery from 210,000 barrels per day to 310,000bpd.

PHRC is one of the three national refineries under the management of NNPC.

Meanwhile, the Senate has raised questions over the $1.5bn approved in 2021 for the renovation of the refinery.

The upper chamber lamented that it is “unfair and wrong to treat government businesses or public companies as an orphan while private businesses were flourishing and thriving.”

The Senate Leader and Chairman of the Senate ad-hoc Committee to investigate the alleged economic sabotage in the Nigerian Petroleum Industry, Opeyemi Bamidele, raised the questions at a session with stakeholders in the industry in Abuja.

At the session, Bamidele expressed concerns over the dysfunctionality of the government-owned refineries despite investments to carry out turn-around maintenance.

Nigerians are hopeful that the refinery will stop fuel importation and crash the pump price of petrol when completed.