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IOCs Manipulating Crude Oil Prices, Frustrating Refinery’s Success — Dangote

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Devakumar Edwin, vice-president, oil and gas at Dangote Industries Limited (DIL), has accused international oil companies (IOCs) in Nigeria of doing everything to frustrate the survival of Dangote Oil Refinery and Petrochemicals.

According to Edwin, the IOCs are purposefully undermining the refinery’s attempts to purchase local crude by inflating the price of crude oil over the going rate.

This forces the refinery to import crude from other nations, including the US, at exorbitant costs. Edwin addressed reporters during a recent Dangote Group one-day training event.

He also lamented the activity of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in granting licences indiscriminately to marketers to “import dirty refined products into the country”.

“The Federal Government issued 25 licences to build refinery and we are the only one that delivered on promise. In effect, we deserve every support from the Government,” the vice-president said.

“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support in order to create jobs and prosperity for the nation.

“While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are trying their best to allocate the crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy the local crude.

“It would be recalled that the NUPRC, recently met with crude oil producers as well as refinery owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations (DCSO), as enunciated under section 109(2) of the Petroleum Industry Act (PIA).

“It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails. It is either they are deliberately asking for ridiculous/humongous premium or, they simply state that crude is not available. At some point, we paid $6 over and above the market price.

“This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production.

“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports crude oil and imports refined petroleum products.

“They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their GDP, and dumping the expensive refined products into Nigeria – thus making us dependent on imported products.”

Edwin further said the strategy of the multinationals has been adopted in every commodity, making Nigeria and sub-Saharan Africa face unemployment and poverty, adding that “they create wealth for themselves at our expense”.

“This is exploitation — pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences, at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products,” he added.

“In spite of the fact that we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian Market.

“Since the US, EU and UK imposed a Price Cap Scheme from 5th February 2023 on Russian Petroleum Products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and, they are being purchased and dumped into the Nigerian Market.

“In fact, some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian Market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa, recently.”

Edwin said it is sad that the country is giving import licences for “such dirty diesel to be imported into Nigeria when we have “more than adequate petroleum refining capacity locally.”

According to the vice-president, the decision of the NMDPRA to grant licences indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery to expand into foreign markets.

He said the refinery has recently exported diesel and aviation fuel to Europe and other parts of the world because the refinery meets international standards as well as complies with stringent guidelines and regulations to protect the local environment.

“The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy,” Edwin said.

“Recently, the government of Ghana, through legislation has banned the importation of highly contaminated diesel and PMS into their county. It is regrettable that, in Nigeria, import licences are granted despite knowing that we have the capacity to produce nearly double the amount of products needed in Nigeria and even export the surplus. Since January 2021, ECOWAS regulations have prohibited the import of highly contaminated diesel into the region.”

Edwin appealed to the federal government and the national assembly to urgently intervene for speedy implementation of the PIA and to ensure the interests of Nigeria and Nigerians are protected.

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SECURITY: Soldiers Thwart IPOB Attack On Ebonyi Police Station, Kill Five

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Isheke Police Station was attacked by individuals believed to be members of the proscribed Indigenous People of Biafra (IPOB), however the attack was repulsed by Nigerian Army troops stationed in Ebonyi State for operations.

It was gathered that the IPOB fighters broke into the station and set fire to multiple cars parked there.

In a statement posted on Thursday on X (formerly known as Twitter), the service said its troops, on arrival at the scene, engaged the IPOB fighters in a gun duel.

The Army added that the fighters were overpowered, and five of them were killed while others fled the scene.

“Troops of the Nigerian Army, in a swift and decisive response, have repelled an attack on  Isheke Police Station, which came under attack by suspected IPOB terrorists resulting in the torching of the facility and several vehicles.

“Troops, on arrival at the scene, launched a counter-attack on the terrorists overpowering and compelling them to flee in disarray.

“Accordingly, troops engaged the terrorists in a hot pursuit, leading to an intense gun battle, which resulted in the elimination of five suspected terrorists and seizure of several weapons,” the post read.

It listed the weapons recovered to include one PKT machine gun with a link belt containing 94 rounds of ammunition, two AK-47 rifles with three magazines, containing 11 rounds of 7.62mm ammunition and one submachine gun with a magazine.

Also recovered was a Sienna SUV with registration number Ebonyi CHR-364JC.

“The Nigerian Army will continue to operate in synergy with sister services and other security agencies to combat the terrorists’ activities by IPOB and its armed affiliate, the ESN. We urge all law-abiding citizens to be vigilant and report any suspicious movement or activity to the security agencies,” the post added.

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Some Private Jets Are Used For Money Laundering, Drug Trafficking — Aviation Minister Keyamo

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Nigeria’s minister of aviation and aerospace development, Festus Keyamo, says some private jet owners use their aircraft for money laundering and drug trafficking.

Keyamo made this know on Thursday, during the inauguration of a ministerial task force committee on illegal private chartered operations and related matters in Abuja.

The minister stated that he had established a five-point plan of action to direct him and his group in carrying out President Bola Ahmed Tinubu’s directives upon taking office.

According to him, the agenda comprising five points covers safety, infrastructure, revenue generation, assistance for local operators, and human capacity development.

Consequently, he declared, the ministry has found problems in the aviation sector “that we must attack aggressively.”

“It has come to my attention, through a series of disturbing reports, that the practice of illegal charter operations is thriving within the aviation industry, thereby undermining the efforts of the Nigerian Civil Aviation Authority and other regulatory bodies,” he said.

“These illicit activities have not only resulted in significant financial losses to the Federal Government but have also raised security and safety concerns as the operations of private aircraft owners have remained largely unchecked and unregulated.”

This, Keyamo said, has also resulted in using private aircraft for other illegal activities.

“Last week, the National Security Adviser wrote to us, alerting us of the spike in money laundering, drug trafficking and other illegal activities through the use of private aircraft in the country,” the minister said.

“It appears that Private Non-Commercial Flight (PNCF) operators have become increasingly emboldened, continuing their illegal operations with the assistance of Air Operator Certificate (AOC) holders who collect tolls and list these illegal charters under their AOCs.

“We have received alarming reports that some crew members have not attended mandatory simulator trainings for nearly three years and are flying with fraudulently-obtained renewed licenses.

“Many of these individuals are operating planes registered under PNCF but are conducting illegal charter operations with impunity.

To combat the illegal operators, the minister announced the immediate composition of a ministerial task force on illegal private charter operations and related matters.

He said some of the responsibilities of the task force include taking “inventory of all permit for non-commercial flights (PNCF) holders and air operator certificate (AOC) holders, to determine why the practice of illegal charters by PNCF holders persists in the country despite regulatory controls”.

The task force, according to the minister, was also created to “call in all professional licenses of pilots and crew in the country and determine their authenticity and validity, and to recommend to the Minister any additional measures to be taken by regulatory agencies to stem this ugly tide”.

He said the committee is expected to recommend appropriate penalties to be imposed by the regulatory agencies on defaulters and additional measures to monitor private aircraft operations in Nigeria.

The minister added that the members of the task force have been carefully selected from within the aviation industry and are people of high repute and integrity.

He named Ado Sanusi as chairman of the committee, Roland Iyayi, as vice-chairman, and acting director of air transport, aviation ministry as secretary.

Other members of the committee, he said, include Theresa Babayo, director of the Nigeria Civil Aviation Authority (NCAA); Olayinka Oyesola, commander of the presidential air fleet; Daniel Quansah; Patrick Ogunlowo; and Obafemi Bajomo, Keyamo’s special assistant (SA).

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National Assembly Approves President Tinubu’s Request To Extend 2023 Budget Implementation

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The national assembly has passed the bills seeking the extension of the capital component of the 2023 budget and the Supplementary Appropriation Act.

The federal lawmakers granted an extension from June to December, following a request by President Bola Tinubu.

The senate and house of representatives passed the bills on Thursday after considering their clauses at the committee on supply.

The passage was preceded by a rowdy session at the house of representatives.

The president, in a letter read by Tajudeen Abbas, speaker of the house, asked the green chamber to extend the implementation of the capital components of the 2023 budget and Supplementary Appropriation Act from June 30 to December 31.

After Abbas read the letter, some lawmakers opposed the call for the debate of the president’s request.

Julius Ihonvbere, majority leader of the house, moved for the debate of the bill, saying the amendment does not alter the content of the bill but just the date.

Kingsley Chinda, minority leader of the house, expressed concern that the two budgets are running concurrently.

He said the Peoples Democratic Party (PDP) administration was criticised for lacking a clear budgetary cycle, adding that the current administration is potentially repeating the mistake.

The ranking legislator demanded that the bill be stepped down to enable the government to “go back to the drawing board”.

Sada Soli, an All Progressives Congress (APC) lawmaker from Katsina, opposed Chinda, saying the PDP lawmaker was “playing to the gallery”.

“I admire the PDP for playing to the gallery. You cannot extend the supplementary budget without the main budget,” he said.

His comment prompted vocal protests from the lawmakers.

Reacting, Ado Doguwa, a ranking APC member from Katsina, said: “I agree with the submission made by the minority of the house.

“Even though it is legal, it is unprecedented. That moral question will always be raised.”

He, however, appealed to his colleagues to support the bill, saying the president would understand the body language of the lawmakers.

Following the bickering, the lawmakers moved into an executive session.

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