Shale oil fracking faces more trouble next year

Recent developments and forecasts from the international energy/economic agencies indicate that the shale oil franking may also get into deeper troubles by 2016.

This indication appears not the best for the United States (U.S.) which is leading the shale franking technology, as its production tends to drop and the hope to capture the export market fades.

Indeed, the United States’ Energy Information Administration predicts that companies operating in U.S. shale formations will cut production by a record 570,000 barrels a day in 2016.

The International Monetary Fund (IMF) had also predicted that the crude oil prices will fall to about $20 per barrel next year, which would be making it more difficult for the franking companies to survive the business as cost of producing shale is estimated $50 per barrel.

Reports however, showed that the fracking outfits that make US oil-rich plains threw everything they had at $50-a- barrel crude in 2015. To cope with the 50 percent price plunge, they laid off thousands of roughnecks, focused their rigs on the biggest gushers only and used cutting-edge technology to squeeze all the oil they could out of every well.

Those efforts appears to have largely succeeded, but with the prices crashing to 11 year low at $37 per barrel, tough times are ahead for them to cope with costs.

Meanwhile, the Organization of Petroleum Exporting Countries (OPEC), in its latest world oil report, said U.S. shale oil production will be more resilient than previously expected.

OPEC said it expects U.S. crude oil production from shale deposits to increase from 3.8 million barrels per day in 2014 to 4.9 million bpd by 2023. By 2040, the trend will start to reverse as U.S. shale output falls to 4.2 million bpd.

“Although the updated forecast for the 2015 outlook shows that U.S. tight crude (oil production) will decline gradually over the long-term to 4.2 million bpd in 2040, in the 2014 outlook, it was projected at only 2.8 million bpd in 2040,” the report said.

Biafra: Kanu apologises to Buhari, Jonathan, Igbo elders

THE leader of the Indigenous People of Biafra and founder of Radio Biafra, Nnamdi Kanu, has expressed regret for referring to President Muhammadu Buhari as a terrorist, evil and a paedophile in his radio broadcasts.

Kanu, who has been charged along with two others by the Federal Government before a Federal High Court in Abuja on six counts of treason and other ancillary offences, said he intended to write a private letter to Buhari to express his apology to the President.

 

He also apologised to former President Goodluck Jonathan and Igbo elders for “some uncomplimentary things” he said about them.

The 48-year-old pro-Biafran agitation leader, who is, however, unapologetic about his demand for a Republic of Biafra, has been in the custody of the Department of State Services since his arrest in Lagos on October 14, 2015.

He tendered the apology for his comment against Buhari and others in a statement which he made to the DSS on October 23.

The prosecution, in its summary of the case, alleged that in one of the radio broadcasts by Kanu on August 1, 2015, he expressed his resolve to actualise the Republic of Biafra and “cast aspersions on the person and the office of the President of the Federal Republic of Nigeria”.

The statement read in part, “Reference to the President of the Federal Republic of Nigeria as a terrorist, evil and a paedophile is regrettable and uncalled for and for that, I unreservedly apologise and will be doing so in a private letter to the President.

“Before PMB (President Muhammadu Buhari) there was the administration of Goodluck Jonathan. I also said uncomplimentary things about him and Igbo elders as well, which I now recognise should not have happened because it is un-African to be rude or insolent to elders.

“All I was trying to do is to draw attention to the problems afflicting society and something done about them.”

Kanu, who described himself as a Nigerian and a British citizen, justified his agitation for a Biafra Republic.

He said IPOB’s secessionist agenda was informed by the “incessant hardship, lack of holistic development in the socio-economic landscape of Nigeria, lack of youth employment, corruption in high offices and economic regression.”

He added that the agitation by IPOB, which, according to him, was founded in London in 2012 by a group of people from the South-South and South-East regions of the country, was in line with the United 

Nations Charter on the Rights of Indigenous Peoples ratified by African countries, including Nigeria.

In contrast to the counts of managing and assisting in the management of an unlawful society preferred against Kanu and two others, the Radio Biafra founder stated that IPOB, which the prosecution described as unlawful, was registered with the UN to pursue the rights of the people of Biafra.

He stated, “I can confirm that I, Nnamdi Kanu, is the leader of Indigenous People of Biafra worldwide as a legitimately and duly registered body at the United Nations pursuing the rights of a specific indigenous people, in this case, Biafra, to seek self determination according to the said charter.

“The reason for the formation of the Indigenous People of Biafra is to avail those referring to themselves as Biafrans the opportunity made available as a result of the United Nations declaration to seek the peaceful rebirth of Biafra in line with international law.”

Kanu, who is a son of a traditional ruler in Abia State, Sir I.O. Kanu, said he operated Radio Biafra, whose programmes “are designed to wake up the public from its slumber and address the issues of the time” because of his belief in free speech and freedom of expression.

He explained that the intended Biafra Republic comprised Enugu, Ebonyi, Abia, Imo, Anambra, Cross River, Akwa Ibom, Rivers, Bayelsa and Delta states as well the Igbanke part of Edo State; Igala part of Kogi State and Idoma/Igede part of Edo State.

Apart from Kanu, one of the two other defendants in the six counts filed by the Federal Government is a Field Maintenance Engineer, David Nwawuisi, charged with the responsibility of maintaining MTN masts in Enugu State.

The other defendant, Benjamin Madubugwu, was said to be living in the Ubilisiuzo, Ihiala Local Government Area of Anambra State, where he allegedly received custody of a container, housing transmitters, from Kanu.

On December 23 during the accused persons’ appearance in court for their scheduled arraignment, Kanu 

refused to take his plea due to what he called his lack of confidence in the presiding judge, Justice Ahmed Mohammed.

The judge promptly returned the case file to the Chief Judge of the Federal High Court, Justice Ibrahim Auta, for reassignment to another judge and the three accused persons were returned to the custody of the Department of State Services.

The fresh charges were filed against the three men barely 24 hours after Justice Adeniyi Ademola, in a ruling on Kanu’s bail application on December 17, ordered his unconditional release from DSS custody having been detained for about two months without any valid charges filed against him.

N6.08trn budget: Nigeria going the way of Greece —PDP

Olisa Metuh

THE national leadership of the Peoples Democratic Party, PDP, yesterday took a swipe at President Muhammadu Buhari and the All Progressives Congress, APC-led government, saying with government’s proposed N1.84 trillion borrowing as contained in the 2016 budget, Nigeria as a country was going the way of Greece.

Speaking with journalists, yesterday,  in Abuja, PDP National Publicity Secretary, Chief Olisa Metuh, noted that a breakdown of the N1.84 trillion shows that Nigeria would be borrowing N5 billion a day for the next 365 days, starting from January I, 2016, without what he termed, a corresponding provision for economic production and a clear repayment plan, adding that the scenario would  spell doom for the future of the nation.

According to PDP, President Buhari must explain to Nigerians why the N6.08 trillion 2016 federal budget would not be considered a huge fraud, designed to mortgage the future of the country, just as it challenged the Federal Government to a public and open debate on the budget devoid of sentiments of the APC-controlled National Assembly and who are minded against any cuts in their own allocation.

Metuh said: “Some people may be wondering why we raised an alarm about the budget. The reason is simple. When we analysed the budget, we discovered it is a misshapen attempt at a Keynesian economics of applying deficit spending to stimulate growth even when studies have proven that GDP growth rates decrease by over 50 per cent when debt goes from low or moderate to high. But then we know the borrowing here is to pay huge campaign debt and fund a political war chest.

“By every standard, this budget is a booby trap against the nation. When you break down the proposed N1.84 trillion borrowing, you discover that it amounts to borrowing N5 billion everyday for the 365 days in 2016. The questions are: for what specific projects are they borrowing N5 billion per day and how do they intend to pay back?

“The President should explain to Nigerians how they intend to pay back the loan. Is it by continuous borrowing to service the interests, and does he intend to accumulate colossal debt for future generations of Nigerians?

“The truth is that this administration cannot justify this proposal. There is no known economy in the world where you can justify borrowing N1.84 trillion without specific projects and precise repayment outline. This is worse still in an oil-driven, mono-economy at a time crude oil is selling at $30 per barrel and is speculated to go down to about $20 or even lower in the next one year. The idea can only come when you diversify the economy and boost production capacity in manufacturing and other critical sectors, a direction, which the budget clearly failed to provide. “

Petrol to sell for N86/litre from January, 2016 – FG

The Federal Government, yesterday, stated that effective January 1, 2016, Premium Motor Spirit, otherwise known as petrol, would be sold at N86 per litre by the Nigerian National Petroleum Corporation, NNPC Retail stations, while other oil marketers would sell at N86.50 per litre.

The Nigerian Labour Congress said, however, that it would resist with all its might, any attempt to remove fuel subsidy.

Speaking to newsmen in Abuja, Executive Secretary of the Petroleum Products Pricing Regulatory Agency, PPPRA, Mr. Farouk Ahmed, also announced the first quarter 2016 PMS import allocation of three million metric tonnes to the NNPC and other oil marketers.

On the review of the price of petrol, Ahmed said the reduction in the price of the commodity was due to an implementation of the revised components of the Petroleum Products Pricing Template for PMS and household kerosene.

According him, the revised template, which would be reviewed on quarterly basis and which would soon be presented to oil marketers, is geared towards ensuring an efficient and market-driven price that would reflect current realities.

He said: “Since 2007, while crude oil price had been moving up and down, the template remained the same. This had made it necessary for us to introduce a mechanism whereby the template would be sensitive to the price of crude oil.

“However, the template is not static, as there would be a quarterly review and if there is any major shift, the Minister of State for Petroleum Resources would be expected to call for a review, either upward or downward, depending on the market condition.

“If there is no major shift, that is, if there is a marginal change, the price would continue from January to March, 2016. In addition, there would be a Product Pricing Advisory Committee that would be set up to advise the PPPRA concerning movements in the price of crude oil.”

He said the NNPC would sell lower than other oil marketers, due to the fact that it is cheaper for it to import, compared to the independent and major oil marketers.

He listed the major components affected by the review in the pricing template to include: Traders Margin, Lightering Expenses, Nigerian Ports Authority (NPA) Charges, Jetty Throughput and Storage Charges, as well as Bridging Fund. Other components include: Retailers, Transports and Dealer margins.

Giving a breakdown of the revised template, Ahmed disclosed that Trader’s margin, which is the amount paid to traders for bringing the commodity into Nigeria, has been eliminated, from N1.47 per litre previously; Lightering Expenses reduced from N4.07 per litre to N2 per litre; NPA, reduced from N0.77 to N0.36 per litre; while Jetty Throughput and Storage charges were reduced from N0.80 and N3, to N0.40 and N1.50 per litre respectively.

On the other hand, Retailers margin was increased to N5 per litre from N4.60; Transporters rose to N3.05 from N2.99; dealers margin was reviewed upward to N1.95 from N1.75, while bridging fund dropped to N4 per litre from N5.85.

To this end, Ahmed put the Ex-depot price of PMS at N77 per litre, compared to N77.66 per litre; open market price would be N86.29 for oil marketers and N85.93 per litre for the NNPC, while he stated that pump price for oil marketers would be N86.50 per litre and NNPC, N86 per litre.

On the issue of PMS import allocation to the NNPC and other marketers, Ahmed said that the PPPRA, in a bid to guarantee uninterrupted fuel supply nationwide, took into consideration the issue of retail outlets ownership, marketers’ performance of previous quarterly allocation, as well as the challenges in sourcing foreign exchange.

He lamented the fact that in the fourth quarter of 2015, the NNPC was the major supplier of PMS in Nigeria, as it supplied over 111 per cent of their allocation, major marketers supplied only about 36 per cent of their allocation, while independent marketers and Depot and Petroleum Products Marketers Association, DAPPMA, supplied only about 38 per cent of their allocations.

He said: “Consequently, the NNPC was granted 78 per cent of the total allocated volume for the first quarter of 2016, while the balance is to be supplied by other oil marketing companies.

“Marketers are required to note that there shall be a mid-quarter review of performance where volumes of non-performing marketers shall be withdrawn and reallocated to performing marketers.

NNPC Mega Filling Station now selling at N138 per litre in Abuja yesterday.

“Furthermore, the PPPRA wishes to reiterate that consideration for participation in future allocations shall be on the basis of attainment of 100 per cent performance in first quarter 2016.

“Accordingly, the PPPRA hereby warns that any marketer found selling above the PPPRA approved price shall be appropriately sanctioned. These include, but not limited to, exclusion from future participation in product importation and revocation of licences.”

We will resist fuel subsidy removal —NLC

Meanwhile, Nigeria Labour Congress, NLC, yesterday, said it was aware of the discordant tunes by government officials and All Progressives Congress, APC’s chieftains on petroleum products and management of subsidy scheme, insisting that it would resist any attempt to remove fuel subsidy with all its might.

NLC said it had since December 22, directed all its affiliates to commence mobilization of members for eventuality, noting that workers and indeed Nigerian masses would not accept any removal of subsidy through the back door.

In a statement by Dr. Peter Ozo-Eson, General Secretary to the Ayuba Wabba faction of NLC, congress said: “In the past few weeks, we have heard discordant tunes from government officials and chieftains of the ruling APC on what the future portends for the prices of petroleum products and the management of the subsidy scheme. Party chieftains who supported and encouraged the massive protests against subsidy removal in 2012 are now preaching the inevitability of subsidy removal! The Minister of State for Petroleum first announced that come next year the price of petrol will revert to N97 per litre and that subsidy will be phased out. Two days after, he denied this and stated that what he said was that the price will operate within a band of N87 to N97 and that this did not mean removing the subsidy. The same minister now says that the price of petrol will now be N86 in January, signifying the deregulation of the sector.

“These vacillations and flip flops are, in our view, designed to confuse Nigerians and pave the way for deregulation of petrol prices through the back door. The fact of the matter is that as long as we continue to depend on imported refined products, deregulation and the abandonment of a subsidy scheme will unleash hardship on Nigerians. In any case, according to our laws, the determination of the recommended prices of petroleum products is the responsibility of the Petroleum Products Prices Regulatory Agency (PPPRA). By law, the board of PPPRA is made up of stakeholders. None of the contradictory prices the minister is throwing up is a product of the agency. Indeed, the board of the PPPRA has not operated for over two years although we have made repeated demands for the convening of the board.”

According to the statement: “We call on the government to be guided by the rule of law and constitute and convene the board of PPPRA in accordance with the law without further delay. This will enable the agency to examine and agree a new pricing template based on the realities of today. Any price unilaterally determined and announced by the minister is in violation of the law.

“In the meantime, we wish to restate our opposition, adopted at our Central Working Committee Emergency Meeting of 22nd December, to any attempt by the government to increase the price of or remove subsidy on petrol.”

How we’ll fund N5,000 welfare scheme —Lai Mohammed

Minister of Information and Culture, Alhaji Lai Mohammed

THE Federal Government, yesterday, explained how it would fund the N5,000 monthly welfare payment to vulnerable Nigerians just as it reaffirmed that the Boko Haram insurgency had been technically suppressed.

The minister also disclosed that the insurgents had been restricted into two local government areas of the 30 local government areas they controlled at the onset of the Muhammadu Buhari administration.

Funding of N5,000 welfare scheme

On how the funding of the N5,000 welfare scheme would be achieved, Mohammed said: “What we want to achieve by our social intervention of which the conditional transfer is just one part, is to move out millions of Nigerians from poverty. That is why we have this half a trillion naira social intervention.

“Part of what we intend to do with the half a trillion naira is to train market women, artisans and unemployed graduates in the art of management and also give them loans to start their own businesses. Part of our social intervention also includes the transfer of N5,000 to the most vulnerable people.

“And we are being partnered in this by the World Bank and other multilateral organisations. It has been done in many countries before and we believe that it can be done here. Many people have written ridiculously about N5,000 and claimed that it is not up to what they spend on recharge cards. And we said yes, those who are writing such things are not the average Nigerians we are seeking to help.
“If you look at the lady who is selling water melon or pawpaw, she does not have up to N5,000 capital. People don’t know that N5,000 can be meaningful for many Nigerians because they are too comfortable in their corners. They do not know that N5,000 can make the difference between life and death for many Nigerians.

“Many people have died because they cannot afford transportation to the health centres. We are grappling with the reality on ground and we know that this conditional cash transfer is working in some states and it is being piloted by DIFID. In Jigawa, Yobe, and Kano, a British group is tying the conditional N5,000 transfer on a pilot scheme.

“When we say conditional transfer, it means that you must show evidence that you have enrolled your children in school and immunised them. It is not just that we are giving you money free, you must also show evidence that you have complied with some obligations. We know it works because it has increased school enrolment, led to a drop in mortality rate and decline in stunted growth.

“Apart from blockages and savings, there are many government institutions today, who ought to be returning money to the treasury but they are not doing so. We know that some organisations made over N20 billion last year but returned less than N100 million to the treasury.

“This is why the idea of the Treasury Single Account is so important to us. We are going back to the basics. We believe that the money for this project will come from savings, budget and prudent management. Also we are going to have support from multilateral organisations, especially in the area of cash transfer. Again some of these projects are not just recurrent, they are also capital in a way.”

Pandemonium in Badagry over iman’s alleged bid to use lover for money ritual

Badagry: The 20-year-old victim, Busayo Amdalat in hospital

Mowo 11, a suburb of Olorunda Local Council Development Area of Badagry area in Lagos State, was yesterday thrown into pandemonium, as an Islamic cleric, Mallam Shehu, popularly referred to as Alhaji Sambo, attempted to use his 20-year-old lover, Busayo Amdalat, for money ritual.

The victim, who resides in Ibeju-Lekki, was said to have visited the cleric at Mowo Phase 2 in Badagry to spend the Christmas holidays.

It was gathered that in the early hours of yesterday, the cleric had a visitor known as Ifa and they asked the victim to put on a white cloth and when she did, the cleric and his accomplice hit Busayo with an iron rod on her head.

Slashing the victim’s throat
It was gathered that when Sambo’s accomplice, Ifa was slashing the victim’s throat, she was able to muster courage by hitting Ifa on the head with a bottle and in the process ran to a nearby street where a carnival was taking place.
Rushed to hospital

Some residents, who saw her drenched in a pool of blood with injuries inflicted on her neck and other parts of her body, quickly rushed her to an undisclosed hospital in the area.

A resident, Taiwo Abdulraman, who spoke with Vanguard said, the residents quickly mobilized themselves into two groups; one of them went after the cleric and his friend, Ifa, while others took the lady to hospital.

“We quickly mobilised and went after him, when we got to his house, we saw blood in parts of the building. There were lots of charms and other fetish substances in his house. We saw the iron rod and the sharp knife he used on her, but we didn’t meet him in the house. We also quickly mobilized and went to his second house at MTN Bus Stop, but he was nowhere to be found, he said.”

When Vanguard paid a visit to the hospital where the 20-year-old victim was being treated, her face and neck were covered with plaster.
The victim speaks

Narrating her ordeal, Miss Amadalat said “We both had a quarrel before now for close to three weeks. I knew his first wife before she died but the second wife did not want him (Sambo) to marry me but he resolved that he was going to marry me. I even got pregnant for him but he rejected the pregnancy at some point in time.

“I went to report him to a Muslim cleric but the cleric said there was nothing he could do to convince my lover to accept the pregnancy. For about two months, I did not call Sambo and because of the issue, I changed my telephone number.”

She said after Sambo apologized to her she forgave him.

Badagry: The Islamic cleric, Alhaji Sambo

Her words: “So, yesterday, Sambo and a man called Ifa were having a discussion in his house. Before I knew it, he started taking lots of alcohol, when I cautioned him; he refused to listen to me. He even offered me some but I rejected it.

“Later that night, he asked me to wrap myself in a white clothing of which I obliged. The man called Ifa wanted to use a cloth to cover my face and in the process, Sambo came in with an iron rod and hit me on the head. I shouted but nobody heard me because it was a bushy area.

“Ifa and Sambo attacked me with a knife but I managed to lock myself in a room. I now lied to them I had called one of the neighbours, it was in that process that they left and I managed to escape from the house.”

Obat Petroleum in N1.2bn subsidy diversion controversy...EFCC to investigate

Chairman, Obat Petroleum, Oba Frederick Akinrutan

 

By Oluwagbenga Bankole

The Economic and Financial Crimes Commission is set to investigate Obat Oil and Petroleum Limited over the reported illegal diversion of N1.2b subsidy claims to the personal account of its chairman, Oba Frederick Akinrutan.

According to a document obtained by our correspondent, Petrocam Trading Nigeria Limited entered a joint agreement with Obat Oil Petroleum Limited to import some metric tones of Premium Motor Spirit (PMS) popularly known as petrol. In the agreement, Petrocam is the marketer, while Obat is the contractor.

The contractor which is Obat, hereby engaged the marketer which is Petrocam to finance the business whether by its own resources or through its Bank and Obat accept such engagement on the terms and condition in the contract both companies jointly signed.

Petrocam (Marketer) approached and got for advances to finance the business from Sterling Bank Plc, through which bank all known payment are made.

A collection account no. 0020560534, Obat Oil and Petroleum Limited with Sterling bank plc was opened to take receivables from the transaction primarily for the purpose of repaying the loans Petrocam took from Sterling bank to finance the project.

It was however gathered that Obat Oil diverted N1.2b, money meant for Petrocam to liquidate the loan it took to finance the business to its Access Bank account and later wanted to move it to Asset Management Corporation of Nigeria (AMCON) First Bank account in order to clear a debt they owe a client. Our correspondent gathered that the EFCC blocked Obat Oil from moving the money to AMCON.

Our correspondent authoritatively gathered from a reliable source in AMCON that a client which Obat Oil owe went to report them to AMCON and that is why they diverted the subsidy disbursement in order to clear the debt.

A source at the EFCC who does not want his name in print said that the EFCC will investigate the issue and charge Obat Oil to court if the allegation leveled against them is true.

Meanwhile, in a letter written to Obat Oil by Sterling Bank Plc which financed the business, signed by its General Manager Corporate, Mr. Adegboyega Adegun and Assistant General Manager, Corporate, Mr. Abiodun Odutola, the bank stated that; “we write to advice that we are aware that the Sovereign Debt Note serial number FGN/2014/01/Q14/1673 and FGN/2014/01/R14/1694 due on the joint venture transactions between Petrocam Trading Oil Limited and Obat Oil and Petroleum Limited which were financed by Sterling Bank are part of the subsidy payment approved and paid by government as published by Business Day newspaper of December 11, 2015. ”

It further stated that; “as banker of these transactions, we write to demand that all subsidy proceeds accruing to the transaction including exchange rate differentials and all other relevant claims from government must be remitted to Obat Oil and Petroleum Limited account number 0020560534in Sterling Bank Plc for the purpose of liquidating outstanding loan obligations in line with the terms and conditions of the facility under which the transactions were financed. Also note that apart from financing the importation product, Sterling Bank paid all relevant government charges including the PEF and admin.”

In a response to the text message our correspondent sent to the Chairman of Obat Oil, Oba Frederick Akinrutan, an official of Obat Oil who called himself Otunba said that the allegation of Petrocam is in violation of the court process since the case is already in court.

 He added that the legal counsel of Petrocam had advised the company to have account reconciliation meeting on Januaru 9, 2016.  However, he could not provide the letter.

“We are shocked to hear that the story has been reported to the press since there is opportunity for both parties to iron out area of concern,” he lamented.

When asked by our correspondent whether they truly diverted the N1.9b subsidy claims to their account, Otunba failed to answer the question.

NACCIMA, energy expert fault electricity tariff rise

The National Association of Chambers of Commerce and Industry, Mines and Agriculture has condemned the increase in electricity tariffs as announced by the Nigerian Electricity Regulatory Commission on Monday.

The National Vice President, NACCIMA, Billy Gillis-Harry, said that before the increase in tariffs, consumers had been paying for more than what they consumed because of what he described as inefficiency in the system.

 “Whether we like it or not, we are paying more, because if your bill is N2,000, you will discover that your consumption is not up to N1,000,” he said.

 Also commenting on the removal of fixed charges, an energy law and policy expert at Banwo & Ighodalo, Mr. Ayodele Oni, said, “I am not sure it makes a lot of difference in the economics for the consumers because the fixed charge is N750.

“What is N750 in the equation, especially if they bring estimated bills that are outrageous? For me, I am not sure it makes a lot of difference; psychologically, it might, but if you dig down to the numbers, it doesn’t make any difference.

“The crazy bills that they bring are usually the energy charge. The fixed charge is not crazy because it is a fixed amount, depending on what class of customer you are. Removing the fixed charges doesn’t make a lot of difference because the numbers are small compared to the total monthly energy bill.”

He said with the removal of fixed charges, consumers would not pay any money if there was no electricity because they would only be paying for the energy consumed.

“The only problem is estimated billing. If they don’t deal with estimated billing, it is still going to be a problem. If people are properly metered and there is no such thing as estimated billing, then the new tariffs will make sense. But if there is estimated billing or there is no cap on estimated billing, it doesn’t make a lot of difference that fixed charge is removed,” Oni added.

Similarly, Gillis-Harry called on the Federal Government to be cautious about removing the subsidy on petrol to avoid any negative impact on the people.

“I believe that Nigerians are willing to embrace change for the value that will give them a better standard of living. You cannot just wake up and say that you are removing subsidy on fuel,” he said.

Marketers confirm subsidy payment, explain petrol scarcity

MOMAN Executive Secretary, Obafemi Olawore

Oil marketers have confirmed that the Federal Government has paid them over N400bn petrol subsidy claims and also explained why the country is still experiencing fuel scarcity.

According to them, the actual payment of the subsidy claims was done about a week ago after a directive was given by President Muhammadu Buhari mandating the concerned agencies to settle the debt.

The Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore, told our correspondent that although the marketers had started importing petrol, it would take a minimum of three weeks for the product to get to Nigeria and for it to be discharged from the various import vessels.

 

When asked to state if the marketers had been paid and why there is still petrol scarcity, Olawore said, “Subsidy has been paid but you have to calculate when it was paid, which was around last week. And when it was paid, we didn’t get it until the President directed that they must pay it immediately. And it took more than four to five days before we got it.

“Now, even though the subsidy has been paid, it takes two to three weeks to bring in cargos from Europe. The minimum time it takes to bring in a vessel from Europe is two weeks and it takes about one week to have it discharged. So, at the earliest, three weeks will pass to complete the process.”

We want to prepare saints for Christ’s coming at this retreat — Kumuyi

The Deeper Christian Life Ministry, DLCC has announced its national December retreat with the theme, ‘Readiness for Christ’s Return.’

The General Superintendent, Pastor William F. Kumuyi, said the focus this time around would be on preparing saints for Christ’s return, adding that it will also afford participants the opportunity of experiencing divine intervention in their lives.

Pastor Kumuyi stated  that although the current socio-economic challenges in the country may have so much agitated the minds of many citizens, he nevertheless urged Nigerians to lessen their apprehension and fear about the coming year, urging them to place their absolute trust in God.

The cleric’s assurances were contained in a statement signed on his behalf by Pastor Jerry Asemota, the Church Secretary, which formally announced the national  December retreat.

“At this time, we must emphasise, once again, the need for people to think beyond their existence here; we want them to know that there is a place far better than this present world. Whatever anyone may be enjoying here cannot be compared to what God has prepared for those who love Him in Heaven. Whether we eat or drink, we must, always, be conscious of the coming of the Lord Jesus Christ,” he said.

The retreat, which starts from December 24 will end on Sunday, December 27.

The programme will hold at the DLCC, Km 42, Lagos-Ibadan Expressway, and in all the states of the federation.

It will be streamed live via satellite from DLCC to other centres in Nigeria, Africa, Europe, America and other continents of the world where the church has its branches.

Buhari’ govt spending money like a drunken sailor – Fani- Kayode

FORMER Spokesperson of ex-President Goodluck Jonathan Campaign Organisation, Chief Femi Fani- Kayode has described the 2016 budget as presented by President Muhammadu Buhari to the joint National Assembly as that fueled by insincerity.

According to him, it was ironic that former governor Asiwaju Tinubu; Minister of Transportation, Rotimi Amaechi and Governor Nasir El- Rufai who kicked against deregulation during former President Jonathan, have suddenly become great supporters of deregulation.

In a statement he signed yesterday and made available to Journalists in Abuja, Chief Fani- Kayode who accused Buhari’s administration of spending money like a drunken sailor, alleged that the government was borrowing as if there was no tomorrow.

The former Aviation Minister who noted that the government was mortgaging the future of Nigeria, Nigerians and our children,said, “The 2016 budget is fueled by insincerity, shrouded in fantasy, built on tall dreams and spawned by deceit, ignorance and the illusion of change. It is bloated, unrealistic, expensive, cosmetic and it will not result in anything good.

“In order to fund part of the budget the government intends to borrow money and this will throw our country into even greater debt. What a tragedy this is given the fact that in 2007 Nigeria was debt-free. The Buhari administration is spending money like a drunken sailor and they are borrowing as if there is no tomorrow, mortgaging the future of our nation and our children.

” We need far more fiscal discipline and seriousness than that if our government really wishes to improve the economy and better the lives of ordinary people.

“Meanwhile the Federal Government has said that President Goodluck Jonathan is responsible for today’s long fuel queues even though he left office 7 months ago.

” They seem to have forgotten that in 2012 it was their group, led by Bola Tinubu, Nasir El Rufai, Rotimi Amaechi and President Buhari himself that aggressively opposed deregulation and almost brought the whole country to a standstill with protests and riots all over the place in their efforts to prevent the government from removing the oil subsidy.

“Had it not been for their pettiness, lack of understanding, shortsightedness and double standards the subsidy would have been removed three years ago and fuel queues would have been a thing of history. Sadly they lacked the foresight to appreciate the virtues of that policy and today they have the nerve to blame Jonathan for the mess that they themselves essentially created.

“They have been in power for 7 months now: it is time for them to step up to the plate, start taking responsibility for their own actions, do a better job and stop blaming Jonathan for their own miserable and avoidable failures.”

Budget 2016’ll revive economy, says Buhari

PRESIDENT Muhammadu Buhari, yesterday, apologised to Nigerians over the persistent and biting fuel scarcity in the country and attributed the problem to market speculators and stakeholders who are resistant to change. He assured that the government was working hard to end the shortages urgently.

President Buhari who begged Nigerians while presenting the N6.08 trillion 2016 budget to a joint session of the National Assembly, said the government has not increased fuel price and that the pump price of fuel remains N87 per litre.

Buhari arrived the Chambers at 10.01am. Apologizing to Nigerians for the pains occasioned by the continued fuel scarcity across the country, he said: “The  current fuel scarcity with long queues at petrol stations all over the country causing social dislocation is very unfortunate. Government profoundly apologizes to Nigerians for this prolonged hardship and misery. It is as a result of market speculators and resistance to change by some stakeholders. Government is working very hard to end these shortages and bring fuel to the pumps all over the country.”

Meanwhile, the Senate, yesterday, amended the Appropriation Act of 2015 to extend implementation of 2015 budget from December 31, 2015 to March 31, 2016.

The President who started his address at 10.17am and ended it at 10.51 am, disclosed that 30 per cent of Nigeria’s annual budget will be committed to capital expenditure, even as he raised Capital Expenditure from N557 billion in 2015 to N1.8 trillion in the 2016 budget.

Having reviewed the trends in the global oil industry, he said the government decided to set a benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016, with plans to  focus on non-oil revenues by broadening the tax base and improving the effectiveness of revenue collecting agencies.  The government is projecting to realise N1.4 trillion as non-oil revenue.

President Buhari, who noted that the present administration projected a revenue target of N3.86 trillion for 2016 and recurrent expenditure of N2.43 trillion, said that the Federal Government also proposed to spend N1.66 trillion on foreign and domestic debt servicing.

The President also declared that his administration would fight corruption no matter how long it takes.

Why Buhari’s 2016 Budget is a big fraud – PDP

The Peoples Democratic Party (PDP) has described the N6.8 trillion 2016 federal budget presented by President Muhammadu Buhari on Tuesday as a big fraud and executive conspiracy tailored towards mortgaging the future of the nation.

In a statement on Tuesday, by its National Publicity Secretary, Chief Olisa Metuh, the PDP queried President Buhari’s decision to borrow N2 trillion, the biggest in the history of the nation as the height of recklessness and deceit from a government that trends on propaganda.

The party berated the Federal Government for trying to use their bogus welfare programme and phantom capital projects as cover and conduit to siphon the funds to satisfy partisan interests, particularly to settle huge campaign debts.

“It is obvious that this budget is an extension of the campaign promises of the APC government, presented as a manifesto filled with bogus promises which implementation will be inconclusive, thereby allowing the APC to once again deny their promises.

“There has never been any known economy in the world where government deliberately mortgage the future of its nation by borrowing excessively to finance partisan interests while hiding under bogus welfare programmes. This is moreso important as the APC in reeling out their bogus campaign promises never informed Nigerians that they would mortgage their future through excessive borrowing.

“We have it on good authority that this is the first in the series of APC borrowings which would leave the future generation of Nigerians under the burden of huge debts after four years”

The PDP said the budget clearly shows that after seven months in power, President Buhari and his party, the All Progressives Congress (APC) are yet to differentiate between governance and campaign propaganda.

“By all standards, the 2016 budget, the first major economic policy outing of this government, is completely unrealistic and duplicitously embellished with impractical predications, a development that confirms fears by economy watchers and investors that this administration is obviously ill-equipped for governance.

“We are indeed shocked that President Buhari and his minister of information have come up with two different reasons for the current fuel crisis in the country. While we appreciate the President’s apology, we think it is high time he called this minister to order as his excessive propaganda and blame game are ridiculing this administration and the image of the nation.

“Furthermore, it is instructive to note the official endorsement of Mr. President to the devaluation of the naira as against his campaign promise of firming up the value of our currency even to the much vaunted one naira to one dollar. Does it mean that Mr. President lied his way to power, or that he did not understand the complexities of governance when he was making his false promises to Nigerians?” asked the PDP.

Continuing, the PDP said: “In future, there is need to regulate campaign promises so that we will not end up with a government that promises to climb Mount Everest with bare hands and end up mortgaging our future with orchestrated borrowings.

“Finally, we want to request Mr. President to once again to involve experienced and well-tested hands in the management of the economy and budgeting processes. This economy is not for Mr. President, neither is it for the APC. The progress of the economy is for all Nigerians and as such, due care should taken to save ourselves from unrealistic and deceptive programmes.”