Business
NNPC: Looking Beneath The Sustained Disinformation Charade
NNPC: Looking Beneath The Sustained Disinformation Charade
Global News Reports That There is a steady and sustained dispensation of disinformation about Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited. But, what did Kyari do to upset the apple cart? Is he a victim of his success? What could he have done to offend those attempting to obliterate his catalogue of achievements, and hanging him out to dry as an economic saboteur?
There is a frightening volume, velocity, and variety of campaigns of calumny against Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, NNPC.
In the past couple of weeks especially, a deluge of disingenuous disinformation, dilettante opinion articles and editorials, blog posts, and even tweets has been unleashed, underpinning the consensus that ‘Project Batter, Bruise, Bash, and Boot Out Kyari’ is in motion and has become the sun around which the daily to and fro of the masterminds revolves.
Given his successful turnaround records in the NNPC, it would have been easy to say that the masterminds are on a wild goose chase. However, a lie left unchallenged for too long may be taken as the Holy Grail.
The oil and gas industry is Nigeria’s cash cow and has churned out substantive and emergency billionaires. Before it transitioned into a limited liability company, the legacy corporation, NNPC, was regarded as the cash dispenser (Automated Teller Machine) of successive Nigerian governments.
Oil theft and pipeline vandalism were the order of the day with the resultant effect on production. Over the years, billions of naira went down the drain in the name of reviving the comatose refineries while the corporation was never known to remit revenue to the federation account.
Nigerians have not forgotten how former Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, caused nationwide panic when he said that $20 billion in oil revenue had not been accounted for. It was the reign of flagrant impunity, opacity, and corruption.
Then came Mele Kyari, the University of Maiduguri-trained geologist. He superintended the corporation’s transition into a limited liability company and has been steering its ship adroitly since then.
In two years, the NNPC has grown from a loss-making position to a profit-making entity. The days of opacity are over with the introduction of the Transparency, Accountability, and Performance Excellence (TAPE) initiative, which occasioned the publication of the Monthly Financial and Operations Reports (MFOR), underscoring the corporation’s commitment to transparency, accountability, and open dialogue that are fundamental to building public trust.
The TAPE initiative, Kyari said, “places NNPC in a unique position globally as the only national oil company that publishes its financial and operations reports every month. Such transparency not only enhances accountability but also provides valuable insights into NNPC’s activities, performance, and strategic direction.”
Further, Kyari enlisted the NNPC l with the global transparency body, Extractive Industries Transparency Initiative (EITI), a Norway-based organisation that seeks to establish international standards for the good governance of oil, gas, and mineral resources while addressing the key governance issues in the extractive sectors.
In its recent global assessment of the NNPC, the EITI scored the corporation high for enhanced transparency and accountability standards, increased competitiveness, and concerted efforts in combating corruption in the global oil, gas, and mining sectors.
He also instituted a broad range of reforms including collaborating with security agencies and private security contractors while also establishing a control centre known as the Central Coordination, Data Integration, and Activation Control Room to provide surveillance of all the country’s oil and gas assets in the Niger Delta.
The NNPC Data Control Centre uses video visibility to monitor the pipeline networks in the Niger Delta where more than 90 per cent of the country’s crude is explored.
Kyari has vowed to get the Kaduna, Port Harcourt, and Warri refineries working optimally again, promising that Nigeria will become a net exporter of petroleum when they are rejuvenated. He has also led the charge in reducing the impact of the fuel subsidy removal on Nigerians with the implementation of the Presidential Compressed Natural Gas (CNG) initiatives launched by President Tinubu to provide cheaper alternative fuel to motorists, stimulate the economy, and reduce carbon footprints.
Despite this catalogue of achievements, Kyari continues to be blackmailed, vilified, and scapegoated by the oil mafia who want the old days of flagrant impunity and milking of Nigeria’s commonwealth to return.
Nigeria’s economy is slowly rebounding after tailspinning into an abyss due to bad management. But the recovery pace has been further slowed down by the forces that want to hang Kyari out to dry.
He has been accused of sabotaging the Dangote Refinery by not meeting up with its crude oil supplies. But he denied the allegation saying the law is clear on domestic crude oil supply obligations and providing for local refineries.
“(The) Refining business is a straightforward business. You must secure (a source for) your feedstock and you must find a market. This is basic and this determines what happens in any refinery anywhere in the world. That is the business of refining. We have done nothing to sabotage any domestic refinery,” Kyari stated.
While appearing before an ad hoc senate committee on August 7, Kyari declared that the attacks were deliberate and calculated to create the impression that the NNPC and its leadership are creating economic sabotage in the country, saying, “And all of us see what is happening in the media – targeted personal attack on my person, on the institution, and we all know how this works.”
On the alleged importation of sub-standard products into the country, Kyari said the NNPC Limited has nothing to do with that as the relevant regulatory agencies will, by law, not allow any sub-standard product into the country.
The most recent attack came from the regional newspaper, Daily Trust, which jumped on the obnoxious bandwagon with the editorial, last Monday, “NNPC Must Go,” asking rather astonishingly, “Is the NNPC a state-owned enterprise, a public service provider like a university or yet, a private company like Innoson Motors? Or is the NNPC all three at once?” Even a kindergarten pupil knows that after about 45 years of operating as a fully-owned government company, the NNPC was transformed into a limited liability company in July 2022 as the only entity licensed to operate in the country’s petroleum industry. And, it has been operating as such for the past two years, and profitably and transparently too.
It is one of three things – either Kyari is a victim of his success, a soft target for the prevailing economic hardship, or he is merely a personification of the aphorism; uneasy lies the head that wears the crown. Whatever it is, the damaging disinformation needs to stop immediately in the interest of Nigeria.
SOURCE: pmexpressng.com
Dangote Refinery: Where National Interest Supercedes Personal Gain
By Best Agbese
Global News Reports That The Dangote Refinery and Petrochemical Company, located in Lekki, a suburb of Lagos, is seven times the size of Victoria Island, another high-end area in Lagos State. The refinery boasts of more than 350 concrete bridges, a port for oil vessels, and approximately 5,000 neatly built apartments for its staff. The refinery also incorporates the largest granulated urea fertilizer complex in Africa and sits on 500 hectares of land.
Considering the gigantic scale of the newest refinery in the world, it would be apt to submit that Alhaji Aliko Dangote, the founder and CEO of the Dangote Group, is the epitome of courage, resilience, and patriotism. His readiness to contribute to the overall development and growth of the nation’s economy is evident in his numerous impactful interventions at critical moments in our nationhood.
Sincerely speaking, it takes great courage for an individual to envision a world-class gigantic project like the Dangote Refinery. In his case, Aliko Dangote not only visualized the possibility of constructing one of the world’s largest refinery plants but also saw it through to realization. For a businessman and entrepreneur to venture into such a capital-intensive project in an unpredictable business environment marked by policy flip-flops and unhealthy politicization is quite remarkable.
Only a patriotic investor who is deeply committed to the unity and economic growth of his country can attempt such a bold step. With this historic move in the oil sector, Aliko Dangote stands alone in the pantheon of patriotic business leaders in Nigeria.
One very notable fact is that the rising price of petroleum products in Nigeria has resulted in significant hardship, particularly for the average Nigerian. While the current hardship caused by the fuel subsidy removal, intended to address long-term economic challenges, has had a detrimental impact on many, the immediate effect of the subsidy removal policy has further exacerbated the wealth gap between the rich and the poor.
In the context of this harsh reality, one can conclude that the Dangote Refinery and Petrochemical Company represents a glimmer of hope for Nigerians. As one of the largest refineries in the world, located in Nigeria, the refinery has the potential to refine petroleum products locally, eliminating the need for costly imports that have reduced Nigeria to a “beggar nation” over the past decades.
Local production of Premium Motor Spirit (PMS) could reduce pricing, as there would be no need to factor in high landing costs associated with fuel importation. The Dangote Refinery, at full capacity, will process 650,000 barrels of crude oil daily, making it competitive with the United States’ largest refinery and over 50% bigger than the largest refinery in Europe.
Although the refinery is intended to refine domestically produced crude to bolster the heavily oil-dependent local economy, which has been marked by crises in recent times, it also can refine foreign crude. While the exit of Shell Exploration Company and other major international oil companies from the domestic market may pose challenges for the Dangote Refinery in terms of crude oil supplies and achieving its goal of changing the narrative in the nation’s oil sector, it is also important to acknowledge that the sheer scale of the Dangote Refinery will nonetheless turn Nigeria into an “oil market juggernaut”.
According to a recent New York Times report, although the refinery has yet to debut in the domestic and international market space, the Dangote Refinery is already making waves in the global market and has affected major market indicators and determinants. Aliko Dangote, the billionaire Nigerian businessman who spearheaded the refinery’s construction and development, is well aware of the challenges facing the nation’s oil and gas sector.
He has repeatedly reiterated his commitment to driving the troubled sector towards efficiency and reliability. His mission is to make a positive impact on the capacity and fortunes of local refineries across the country. To many, including cynics who doubted that an individual could successfully build one of the world’s largest refineries, the knowledge of the refinery’s impact on the global energy index must have generated a highly positive response.
It is noteworthy that the Nigerian economy, which has experienced slow growth over the last 20 years, is set to witness a dramatic turnaround in the coming months. The positive impact of the Dangote Refinery on the nation’s economy will translate to a better standard of living for every Nigerian. It will reflect directly on Nigeria’s foreign reserve, reducing pressure on the Naira and stabilizing commodity and fuel prices.
Certainly, the Dangote Refinery and Petrochemical Company is a game-changer for Nigeria, meeting domestic needs and producing a surplus for export. Already, the refinery has resumed production of high-quality Premium Motor Spirit (PMS), which is set to enter the domestic market. Aviation fuel and other products are expected to be rolled out into both domestic and international markets within September.
Candidly, Aliko Dangote has put many naysayers to shame. They were wondering how possible it would be for an individual to accomplish what a country or a continent could not achieve. In a nutshell, the Dangote Refinery and Petrochemical Company symbolizes not only the strength and potential of Nigeria’s industry but also the dedication, patriotism, and vision of one of Nigeria’s most esteemed business leaders, Alhaji Dr. Aliko Dangote.
Therefore, it is succinctly true to admit with all sense of patriotism that although Aliko Dangote is not a saint, he has given Nigerians something to be proud of as a country. The Dangote Refinery and Petrochemical Company may become what Toyota is to Japan and what Citroen is to France – a brand and a source of pride.
Agbese is an oil and gas expert based in Dundee, United Kingdom.
BREAKING! Opay Begins Charging Of N50 Electronic Transaction Fee
Global News Reports That OPay is set to apply a transfer fee of N50 for transactions exceeding N10,000.
OPay has introduced a new fee for electronic transfers into both personal and business accounts, in accordance with the regulations set forth by the Federal Inland Revenue Service.
Beginning September 9, 2024, there will be a one-time charge of N50 for transfers of N10,000 or more.
On Saturday, OPay communicated to its valued customers:
“Dear valued customers, please be informed that starting September 9, 2024, a one-time fee of N50 will be applied for electronic transfer of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service regulations.”
Cement prices, BUA Cement needs to apologize to Nigerians
Global News Reports That a cross-section of Nigerians has expressed reservations about the inability of BUA Cement to keep to its promise of reducing the price of cement in the country. This is coming on the heels of the statement credited to the Chairman of BUA Cement, Abdul Samad Rabiu, where he stated that cement dealers frustrated his company’s plan to sell cement at N3,500 per bag to Nigerians.
Speaking at the 8th Annual General Meeting of the company in Abuja, Rabiu said that while his company sold over a million tons of cement to dealers at N3, 500, per bag, with the intention that they would pass the benefits to end-users, the dealers sold a bag of cement to consumers at between N7000 and N8,000. According to him, BUA Cement could not stop the dealers whom he said made huge profits from the high margin because the company had no control over prices in the open market. He added that the Naira devaluation and the fuel subsidy removal also played roles in making the policy unsustainable.
However, some stakeholders faulted the position of the chairman of BUA Cement stating that he played to the gallery when he made the statement that cement would be sold at 3,500 per bag.
According to Kayode Animashaun, a major player in the cement business, he stated that cement manufacturers in the country have deliberately refused to bring down the prices of cement and instead elected to play to the gallery.
“ The recent excuse advanced by the chairman of Bua Cement is unacceptable. There is no way dealers would buy at 3,500 and sell at 8,000. It is a feeble attempt at giving a dog a bad name to hang it. We understand that gimmick they play most time. It is indeed a regime for de-marketing among the major players in the industry. The big players want to outshine each other and one of the ways they do it is to make statements in the public that are not in tune with the reality on the ground.”
“ It is a fraudulent regime and one that is laced with deceit. I can bet that Bua Cement played to the gallery and possibly gained market share. They knew they were not going to implement the proposed price regime but they saturated the media space with the falsehood that cement was going to be sold at 3,500 per bag.
This was corroborated by Ahmed Magaji, a stakeholder in the cement distribution value chain across the country. According to him, what is happening is a price war between the major players in the sector.
“ There is no way dealers would get a bag of cement for 3,500 and sell for 8,000. It is absurd. don’t forget that most of us dealers buy on credit and remit monies when we come for a new stock. Now here is the trick, do you think the manufacturer would continue to sell to us when they know that we are selling at 8,000? The position of Bua cement does not add up. They are trying to shift blame, which is very common with these businessmen.”
According to a source who works for one of the major cement companies in Nigeria, he stated that there is an ongoing price war between the major players in the sector. He further added that these players are out to maximize profit and it is common for them to push certain narratives in the public space.
“The case of BUA cement is one. They played a fast one on unsuspecting members of the general public, and they succeeded. The preference for BUA cement rose astronomically. But now, people are beginning to ask questions and the chairman had to come up with a statement blaming the cement dealers. We know how it works in this industry. BUA Cement played a fast one. But let’s see how long they can sustain it.”
In a similar vein, a cross-section of dealers interviewed thought that BUA cement owes Nigerians apologies for their inability to keep to their words with regards to cement selling for 3,500 per bag. A source who pleaded anonymity stated the position of BUA cement smacks of a mockery of the present administration.
“I had expected the management of BUA Cement to come out clean instead of shifting blame. They knew they were playing games when they made the announcement that cement was going to be sold for the amount they quoted. Now that the chicken has come home to roost they are in a tight corner and the best they could do is to shift blame to cement dealers.”
“I think the management of BUA Cement owes Nigerians apologies if they can’t achieve the 3,500 price for a bag of cement. That is the rational thing to do in this circumstance.”
It would be recalled that BUA Chairman Abdul-Samad Rabiu in 2023 promised that his company would sell a bag of cement at 3500 in 2024 after meeting President Bola Ahmed Tinubu.
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