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BIG STORY

Naira-For-Crude: Three Refineries Plan PMS Production As Dangote Awaits NNPC Supply

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The Nigerian National Petroleum Company Limited may begin the supply of crude oil in naira to the Dangote Petroleum Refinery this week following the announcement by the Federal Government that the naira-for-crude deal has commenced.

Also, following the promise by the government, three more refineries are getting set to start the production of Premium Motor Spirit, otherwise known as petrol, it was gathered on Sunday.

The three refineries include the 11,000 barrels per day capacity Aradel refinery in Rivers State; 20,000-capacity Clairgold refinery in Delta State; and 12,000-capacity Azikel in Bayelsa.

This came as officials at the $20bn Dangote refinery in Lagos and operators of other domestic refineries confirmed on Sunday that though the deal for crude supply in naira has commenced, the commodity is expected to hit the biggest refinery in Africa this week.

On Saturday the Federal Government said it had commenced the sales of crude oil and other refined products in naira.

The Federal Ministry of Finance disclosed this in a post on its X handle.

The statement read, “The Minister of Finance and Coordinating Minister of the Economy announced that, in line with the Federal Executive Council directive, the sale of crude oil and refined petroleum products in naira has officially commenced as of October 1, 2024.

“Following a meeting of the Implementation Committee, chaired by the Minister of Finance on October 3, 2024, to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders.”

Reacting to this on Sunday, officials at the Dangote refinery commended the move by the government and expressed hope that the commodity would arrive the plant this week barring any unforeseen circumstances.

“The deal is still a work in progress and I’m sure that by this week the committee should be done with it,” an impeccable senior source at the plant who spoke to our correspondent in confidence due to lack of authorisation to speak on the matter, stated.

When probed further to confirm if the crude supplied in naira had arrived at the plant, the official insisted that the deal “is a work in progress, adding that “nobody will say crude has arrived anywhere now.”

The source continued, “As of Friday, discussions about it were still ongoing. But I’m sure there will be a complete picture by this week. However, the whole thing is okay. It is a good signal about the crude oil supply in naira.

“And I can assure you that once the first cargo delivers the crude, I’ll send you a picture of it so that you’ll confirm that the deal has been completed. It is also for record purposes. You should have documents and photographs to show the first supply for such deals, having dates and possibly time of arrival.”

Another source at the plant stated that the naira-for-crude deal would last for six months under the first phase.

“The deal is for six months in the first instance. People shouldn’t think it is forever. This is a dollar-based business, so supplying it in naira though at the equivalent dollar rate is significant. The President should be commended for this.

“Otherwise, the local crude would have been purchased from foreign-based traders who often mark up their prices and this has its effect on the cost of producing refined commodities whether in Nigeria or elsewhere,” the official stated.

Earlier, the Crude Oil Refinery Owners Association of Nigeria and the Petroleum Retail Outlet Owners Association of Nigeria welcomed the announcement of the government on the commencement of the naira-for-crude deal.

They, however, asked the government to provide details about the deal.

“The details of this agreement is not known yet but we hope that the intricacies will be revealed to the public because this business is the central value of everything that happen in our economy. PMS is key and the pricing of the crude is important as it determines the price of the commodity.

“It will be a great thing for us to know the details and its implementation. However, we are happy with the deal and congratulate everyone involved,” the President of PETROAN, Billy Gillis-Harry, had stated.

Last month, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency announced that the Federal Executive Council under the leadership of President Bola Tinubu had approved the sale of crude to local refineries in naira and the corresponding purchase of petroleum products in naira.

“From October 1, NNPC will commence the supply of about 385kbpd (385,000 barrels per day) of crude oil to the Dangote refinery to be paid for in naira,” the committee had declared.

The government explained in September that the naira-for-crude initiative would help reduce pressure on the naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products across the country.

“Since then, the implementation committee chaired by the Minister of Finance and we, the technical committee, have worked intensely with NNPC and Dangote refinery to fashion out the details of the modalities for the implementation of the FEC approval,” the finance ministry had stated in a statement.

While stating that crude would be sold to Dangote in naira from October 1, it said, “In return, the Dangote refinery will supply PMS (petrol) and diesel of equivalent value to the domestic market to be paid in naira.

“Diesel will be sold in naira by the Dangote refinery to any interested off-taker. PMS will only be sold to NNPC. NNPC will then sell to various marketers for now. All associated regulatory costs (NPA, NIMASA, etc.) will also be paid in naira. We are also setting up a one-stop shop that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative.”

But in the finance ministry’s statement on Saturday, the government announced that the deal had commenced. It said this was after a meeting with critical stakeholders involved in the deal.

The statement added that officials at the meeting include the Minister of State, Petroleum (Oil), Heineken Lokpobiri, the Special Adviser to the President on Revenue, Zaccheus Adedeji, the Special Adviser to the President on Energy, Olu Verheijen, and the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed.

Others include the representative of the Chairman of Dangote Group, the Vice President of Dangote Group, and the management of the Nigerian National Petroleum Company, led by the Group Chief Executive Officer, Mele Kyari, Chief Financial Officer, Umar Ajiya, and the NNPC Executive Vice President (Downstream), Adeyemi Adetunji.

  • Modular Refineries

Following the promise by the government on crude supply in naira, three modular refineries are getting set to start the production of petrol.

The three refineries will join the Dangote refinery to produce more petrol for local consumption, ending petrol importation in Nigeria.

According to The Punch, sources outlined the three refineries to include the 11,000 barrels per day capacity Aradel refinery in Rivers State, the 20,000-capacity Clairgold refinery in Delta State, and the 12,000-capacity Azikel in Bayelsa.

Owners of the three refineries are at various stages of work on their plants, it was gathered on Sunday.

Modular refineries have been producing diesel but are not producing petrol.

From 2015 to 2019, Nigeria could only produce 1.46 billion litres of petrol due to low refining capacity caused by the country’s inactive refineries, the National Bureau of Statistics stated.

According to The Punch, it was observed that the 1.46 billion litres produced within the period was not up to what the country would consume in two months.

From 2020 to 2023, the country only produced diesel and kerosene with the help of modular refineries, as the country’s refineries were moribund.

It was revealed that about 69.71 million litres of kerosene were locally produced in 2023, compared to 44.68 million litres in the previous year, indicating a 56.02 per cent rise.

For diesel, 109.39 million litres were locally produced in 2023, compared to 102.47 million litres reported in 2022, representing a 6.76 percent growth rate.

Curious about why the local refineries could not produce PMS, experts told our correspondent that each of these refineries would need to be upgraded with an investment of not less than $60m.

“Producing PMS would mean additional equipment – catalytic reformers – which costs about $60m. Most of the owners of these refineries don’t have the resources. The refineries need cash flow to make this additional investment,” an impeccable source stated.

It was gathered that Aradel has started the upgrade of its facility to accommodate the catalytic reformer while Azikel is also leaving no stone unturned.

According to another source, Clairgold refinery is using the isomerisation technology to process petrol production.

It was stated that the isomerisation technology can produce petrol at a cheaper rate than using the catalytic reformer. However, its use and compatibility depend on the configuration of the refinery.

It appears the refineries are eager to commence production of petrol following the decision of the government to sell crude to refineries in the local currency.

The modular refineries, which have suffered crude crisis over the years, felt they may not benefit from the naira-crude sale unless they venture into petrol production.

Aside from this, the seeming deregulation of PMS after the Dangote refinery began the sale of the product to the Nigerian National Petroleum Company Limited, could prompt many others to consider going into PMS production, believing there would be returns on investments when the government stops subsidies.

BIG STORY

The Villa’s Chief Of Staff

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The office of the Chief of Staff to the President of the Federal Republic of Nigeria, has suddenly acquired a larger than life aura. The powers believed to be domicile in that office are now synonymous with that of the president himself.

The progression of that office, through the window of time, started in recent years.
Rising from the backwaters of official obscurity, akin to the civil service rule of “being seen but not heard”, the office of the chief of staff to the president is now one that many people would do anything – indeed go to any length – to occupy.

Although not a constitutional creation, its functions are largely at the discretion of the president, with direct supervision of his activities, personal staff, and security details.

Since 1999, when former President Olusegun Obasanjo introduced the idea patterned after the US presidency, Aso Rock Villa, has played host to a few persons as chief of staff to successive presidents. Each of them lived their time and left their marks in the sand of time.

From General Abdullahi Mohammed under Olusegun Obasanjo to Gbolade Osinowo under Umaru Musa Yar’Adua, Mike Oghiadomhe and Jones Arogbofa under Goodluck Jonathan, Abba Kyari and Ibrahim Gambari under Muhammadu Buhari and now Femi Gbajabiamila, under the current president, Bola Tinubu, that office has been shaped largely by the content of the characters of the individual appointees.

Unfortunately, apart from the late Mallam Abba Kyari, who was considered “too powerful” under Buhari and thus, received constant knocks and criticisms for doing his job and taking the flaks for his principal, none other comes close to Gbajabiamila in terms of attacks and constant machination of antics designed exclusively to get rid of him

Today, Gbajabiamila is one of the most popular persons in the country – holding office or not. This, sadly, is not on account of the fact that he was not doing his job well. But essentially, because he has in his hands what several other people desperately covet.

Perhaps, it comes with the job and the territory. But the recent interpretations accorded an otherwise innocuous statement by the presidency, which last week hinted at possible cabinet reshuffle was rather discrediting.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, while addressing State House correspondents in Abuja, said Tinubu would be aided in his decision by public opinions that have been empirically extracted.

In company with another Senior Special Assistant to the President on Digital and New Media, O’tega Ogra, Onanuga said there was no timeline to when Tinubu would reshuffle his cabinet, which he inaugurated in August, 2023.

“I don’t have any timeline. The president has expressed his desire to reshuffle his cabinet, and he will do it. I don’t know whether he’s going to do it before October 1, but he will surely do it.

“So that’s what I will say. He has not given us any timeline he’ll do it, but he will do it. He has expressed his plan he wants to do it,” he said.
Ogra would further shed more light on the planned exercise.

He explained that the president would be guided by an empirical process, making reference to the performance indicator of everyone.

This, of course, was being coordinated by none other than the Special Adviser to the President on Policy Coordination and head of the Central Delivery Coordination Unit, Ms. Hadiza Bala Usman.

He added: “We also need to realise that the president’s decision to reshuffle is also based on empirical evidence. He said it during the retreat for the ministers that they were going to have periodic reviews, and the decisions that are extracted from these reviews will be used to make that final decision.

“I know he’s got a couple of reports, and as Mr. Onanuga said, when he’s ready to do that, I believe he will,” he said, adding that the president has also instructed his ministers to actively promote the accomplishments of his administration.

“The president has given an order to all his ministers at the last Federal Executive Council (FEC) meeting to go out there and speak about the activities of his administration.

“Some of them have been media shy, television shy, radio shy, and he wants them to overcome all that and go out there and speak about what they have been doing.
“Because the feeling out there is that government is not doing enough and the government has been doing a lot.

It is up to them to go out there and blow their own trumpet. They should go out there and talk about what their ministries have been doing,” he added.

Nothing in the statement above suggested that the president had hinted at the possibility of dropping any of his appointees.

At best, the statement was big on the word “reshuffle” and not “shake-up” even though they both mean changes to the cabinet.
However, while the former presupposes moving people around to improve the effectiveness of the government, the latter indicates a more chaotic situation, which suggests dropping some appointees outright, albeit for the same purpose.

Still, it would not be out of place if he drops anyone as he deems fit.
But the brazen misinterpretation of facts in some of the reports, insinuating that Gbajabiamila was top on the list of those who had been penciled in to be relieved of their duties, was not only curious, but further exposed the reality of the forces that seemed to have piled up against the chief of staff since he assumed office.

For context, the expanded work of the chief of staff varies from president to president. Aside from the ability to exercise discretion, in addition to the rudimentary responsibilities of the office, he functions majorly at the whims of his principal.
In the case of Gbajabiamila, he had so earned his principal’s confidence that the president once deemed it expedient to come out to defend and as well reiterate his confidence in him, at the peak of the attacks against him.

This happened at one of the Federal Executive Council (FEC) meetings in October 2023, during which Tinubu also set the ground rules for those eligible to attend the meeting.
“Let me reiterate that a lot of stories are going around about what is happening.

I’ve told everyone that I can make mistakes. They’re bound to air them out and correct them.
“Perfection is of God. I have confidence in the integrity of my chief of staff.

All campaigns of calumny and insinuations should stop. The buck stops here.
“If I make a mistake, I’m ready to own up to it. We’re all joining hands to fight corruption, and we want to enforce the law with you,” he explained.

Even if it was a façade (which it didn’t really seem like), the fact that the president came out to stoutly defend his chief of staff was enough to douse insinuations and quell the vacuous struggle for that office, intended to viciously pull down the current occupant, Gbajabiamila.

The office of the chief of staff is not elective, and therefore, the struggle to acquire it is not just unsightly but also dishonourable.

This insatiable lust for power accentuated by poverty of ambition, has peaked in this case, sadly, with disturbing consequences on the polity and governance.

Isn’t it strange, therefore, that a chief of staff has many jobs on his hands and yet, in the same stroke, has none? Even worse, it is such a thankless call to service that earns the individual a legion of enemies as against medals.

So, what about the vain struggle?
In fact, at the state level, many governors had long adopted the idea of abandoning their chief of staff to make very good use of their deputy chief of staff, for personal reasons, instead.

If the chief of staff was indispensable, why would they travel that route in the first place?
It is, therefore, interesting to note how some people arrogate so much power to this office and rustle up huge imaginations about the identity of the occupant, sometimes beyond his own grasp.

For instance, how in anyone’s wildest imagination is the chief of staff responsible for the state of economy or the rising costs of living? In what capacity, beyond advisory, would a chief of staff give instructions or directive to ministers, the CBN governor, heads of parastatals and agencies outside of the personal staff of the president?
Yet, the impression created out there by the political hawks is that the chief of staff is the alternate president, a dip that could equally create a needless friction between the principal and his staff, where maturity and trust are lacking.

This battle for space could even be extended to the vice-president, who might think he’d been shoved aside for the chief of staff to thrive.

It’s a dangerous power gambit!
For Gbajabiamila, there’s no gainsaying that the last 17 months must be the longest in his over two decades of public service and career.

He has waltzed through some of the most demeaning allegations of corruption to being tagged the most powerful man in the country, in obvious moves to pit him against his boss.

These ungodly orchestrations by the vermin in the corridors of power are enough to mess with his mental health and emotional stability, especially for a man with grownup kids, whose friends also read some of the “devastating lies” and are wont to ask relevant questions.

Unfortunately, for both his real and perceived enemies, while Gbajabiamila does not appear desperate, his fate is clearly not in their hands either, but his principal, who once publicly stood for him, based on convictions.

It also doesn’t mean they would back off if they failed in their current adventure. It is just characteristic of the filthy power play in a black society, where every approach is considered fair, so long the end justifies the means. They are likely to moot and sculpt other more devastating plots in no time.

Until the president decides what he ultimately does with his appointees, some of whom are being reportedly considered for reshuffling in the coming days, the political jobbers currently strutting the turf and fretting their hours on dead wishes, should, at least, let Gbajabiamila breathe?

 

 

As published today in Thisday Newspaper https://www.thisdaylive.com/index.php/2024/10/08/the-villas-chief-of-staff/

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BIG STORY

JUST IN: Soldiers Attack KAI Officials For Demolishing Their Building In Yaba [VIDEO]

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Men of the Nigerian army attacked officers of the Lagos State Environmental Sanitation Corps while they were carrying out their duty in Yaba.

According to the Commissioner for Environment, Tokunbo Wahab, the officers were attacked for demolishing a structure built by soldiers near the perimeter fence of Yaba College of Technology.

Wahab stated, ‘’Earlier today, officers of the Lagos State Environmental Sanitation Corps (KAI), lawfully engaged in their duties in Yaba, were subjected to an unprovoked attack by personnel of the Nigerian Army under the directive of Major Adebiyi and Captain Gowon.’’

He also extended gratitude to the Chief of Army Staff, Lieutenant General T. Lagbaja, and the Director of Chaplain Services, Lt. Col. T.E. Ogbonyomi, for their swift intervention, which allowed KAI officers to continue their responsibilities without further disruption.

Wahab condemned the assault, stating, ‘’We strongly condemn this unwarranted and unacceptable assault on officers executing their lawful duties.’’ He also emphasized that such acts would not be tolerated in the future and reaffirmed the state’s commitment to ensuring a #CleanerLagos by upholding safety and sanitation standards.

 

See video below (viewers discretion advised)

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BIG STORY

CBN Weighs In: Responds To Attempts To Misinform The Banking Public And Reasserts Its Role As Apex Banking Authority

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In a show of strong support for GTCO and move to debunk false allegations being levelled against the GTCO and its Executive Management by faceless and unqualified entities using the media, the Central Bank of Nigeria (CBN), issued a Press Release today reassuring the public that their deposits with Nigerian Banks are safe.

The Statement titled, “CBN Reaffirms Commitment to Financial System Stability, Safety of Depositors’ Funds” and signed by Ag. Director, Corporate Communications, Hakama Sidi Ali (Mrs.), begins with a firm assurance: “The Central Bank of Nigeria (CBN) wishes to reassure the public of its unwavering commitment to ensuring the stability and reliability of the Nigerian financial system.” It further stated, “The CBN recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure. The CBN actively ensures that banks adhere to established regulations and best practices to maintain the integrity of our financial system. Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient.”

On how the Monetary Authority fulfills its oversight responsibility, ensuring system-wide monitoring of licensed Banks in Nigeria as well as their offshore operations, the Statement says, “In addition, the CBN has implemented Early Warning Systems that proactively detect and address emerging risks, allowing us to provide timely solutions to any foreseen issues. The Bank’s approach to Risk-Based Supervision ensures that it focuses its regulatory efforts on institutions that may pose the highest risk to the financial system. This targeted strategy allows it to maintain a robust oversight mechanism while promoting the overall health of the banking sector. Furthermore, the CBN has established Memoranda of Understanding with the various countries where Nigerian banks’ subsidiaries are located. This collaboration enhances regulatory coordination and ensures that our banks operate within a safe and sound framework in accordance with banking regulations, both domestically and internationally.”

In closing, the Ag. Director said, “The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system.

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