FG To Audit Increased Petrol Consumption, Says Kachikwu


The Federal Government has put in place measures to check the consumption of 56 million litres of petrol a day, declared by the Petroleum Products Pricing Regulatory Agency (PPPRA).

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, admitted that the figures have spiked since 2016 when the country consumed 35 million litres a day.

In an exclusive interview on Channels TV’s HardCopy aired on Friday, he disclosed that the government has instituted a quiet audit to monitor every product coming into the country for the first time.

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Kachikwu said, “Those numbers have spiked; can I challenge those numbers? Yes.

“I am questioning them through science. We just got the Department Of Petroleum Resources (DPR) to install trackers to track every product coming into the country for the first time. In a matter of months, we will be able to say for certain, what we really consume.”

“What we have done basically is to institute a quiet audit to look at those numbers, find out why we are going up because it is troubling for everyone, especially when the price is hiked,” the minister explained.

On further steps taken, he said he has always engaged with the DPR and the Nigerian National Petroleum Corporation (NNPC) to ascertain the figures.

The Minister of State for Petroleum, Ibe Kachikwu, speaks during his appearance on Hard Copy.

The minister, however, rejected the claims that over 10 million litres of petrol were moved across the border.

He insisted that there were no hard facts or reasons for him to be suspicious of the numbers that were given.

But Kachikwu noted that he had substantial reasons to question how the products were moved.

“My responsibility is to sit with NNPC, PPPRA, vet those numbers to be sure and that is why we just installed the latest technology with DPR,” he said.

He added, “If the numbers are right, then we need to ask ourselves why we are growing at this alarming rate.

“Something is spiking that sort of consumption; is it the usual excuse of going through the border? but you can’t move 10 million litres a day across the border that easily; you need almost a thousand trucks and that can’t happen because we are not that porous.”

The minister proposed that the best way to stem the tide was to get the nation’s refineries working and engage the private sector in the operations.

Falana Writes Kachikwu, Queries ‘$60bn Oil Revenue Loss’

 

Human rights lawyer and Senior Advocate of Nigeria, Mr Femi Falana, has asked the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, to provide him with information regarding the “loss of $60 billion oil revenue”.

He made the request in a letter addressed to the minister and dated April 10, 2019, a copy of which was sent to Channels Television on Sunday.

The senior advocate said the Federal Government has refused to collect the said amount from International Oil Companies (IOCs) as at August 2017.

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He urged Kachikwu to provide details on how the nation lost $60 billion oil revenue from non-implementation of Production Sharing Contract (PSC) terms between the government and the IOCs.

Falana noted that he had informed the minister while he was the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) in 2015 about the non-implementation of the PSC terms.

He added that Kachikwu had also confirmed the huge oil revenue loss and blamed it on “public officials”.

According to him, the acting chairman of the Revenue Mobilisation Allocation and Fiscal Commission, Mr Shetima Bana, also made a confirmation in January 2019.

The lawyer, therefore, asked the minister to provide the information he requested, in with the Freedom of Information Act.

He gave Kachikwu a seven-day ultimatum to make the information available, stressing that he would be forced to seek a court order should the minister failed to do so.

The Chief of Staff to the minister, Oge Modie, acknowledged receipt of Falana’s request in another letter signed and dated April 11, 2019.

Read Falana’s letter below:

In my letter dated 5th November 2015, addressed to you in your capacity as the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), I called your attention to the refusal of the regulatory agencies in the Ministry of Petroleum Resources to enforce the Production Sharing Contracts signed with the International Oil Companies by the Federal government.

In a public statement credited to you sometime in August 2017, you did disclose to the media that Nigeria had lost not less than $60 Billion due to the refusal of some public officials to implement the terms of the Production Sharing Contracts between the Federal Government and the International Oil Companies.

In another public statement made on January 19, 2019 by the Acting Chairman of the Revenue, Mobilisation, Allocation and Fiscal Commission, Mr Shetima Bana, confirmed the loss of oil revenue of $60 billion arising from the non-implementation of the said production sharing contracts.

In view of the foregoing, I am compelled to request you to furnish me with information on the revenue of $60 billion which the Federal government has refused to collect from the International Oil Companies as at August 2017. As this request is made pursuant to section the provision of the Freedom of Information Act you are required to supply the requested information not later than 7 days from the date of the receipt of this letter.

TAKE NOTICE that if you fail or refuse to accede to my request, I shall be compelled to apply to the Federal High Court to direct you to avail me with the information on the loss of the oil revenue of $60 billion.

Read Kachikwu’s Response Below:

On behalf of the Honourable Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, this is to acknowledge receipt of your letter dated 10th April 2019 and received 11th April 2019 on the above subject matter,” the letter read.

Please accept the assurances of the Honourable Minister’s best regards.

FEC Approves Committee For Infrastructure Spending

 

The Federal Executive Council (FEC), on Wednesday, approved the establishment of a committee made up of cabinet ministers and selected private sector investors, to source for alternative means of financing infrastructure.

The Minister of Industry, Trade and Investment, Okechukwu Enelamah, briefed journalists after a six-hour closed-door meeting that the target is to boost infrastructure spending to a N10-20 billion range annually over the next five years.

Enelamah stressed that the Federal Government plans to achieve the plan by partnering with other key sectors and meetings would begin by April 2019.

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The council also approved N1.4 billion for the design of a proposed 12-floor building for the Department of Petroleum Resources (DPR) in Abuja.

According to Minister of State for Petroleum, Ibe Kachikwu, the proposed building will serve as the head office of DPR, and the contract has been awarded to a Nigerian firm.

The regulatory and supervisory arm of the ministry of petroleum is currently based in Lagos and the minister stressed that the move to Abuja would be instrumental for income generation.

ICYMI: Reps Summon Ministers, NNPC GMD, Others Over ‘Unbudgeted’ Subsidy Funds

 

The House of Representatives on Thursday summoned the Minister Of Finance, Zainab Ahmed and the Minster Of State For Petroleum, Ibe Kachikwu, to appear before it next week Thursday to explain their roles in alleged unbudgeted funds being paid as fuel subsidy.

Also summoned by the Joint Committee on Finance and Petroleum Downstream are the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Maikanti Baru and the heads of the Department of Petroleum Resources (DPR), Petroleum Products Pricing Regulatory Agency (PPPRA) and the Petroleum Equalisation Fund (PEF).

The joint committee is a combination of the Committees on Finance and Petroleum (downstream) chaired by Babangida Ibrahim (Katsina, APC) and Joseph Akinlaja (Ondo, PDP) respectively.

READ ALSO: Reps Demand Apology From Minister Over ‘Comments’ About 2019 Budget

Members of the committee reached the decision to summon the stakeholders following the failure of the government officials to appear before it despite several invitations.

The joint panel had been mandated by the House to probe allegations that, despite the current administration’s claims that it had removed petroleum subsidy, billions of naira are still being paid without being budgeted for.

Chairman of the committee, Ibrahim during plenary said there are documented evidence that the landing cost of petroleum products is far above the government approved N145 a litre, adding that the task before the committee is to know who is paying for the differential.

“The mandate given to this joint committee on finance and petroleum (downstream) by the House are to invite the minister of state for petroleum and finance minister; the GMD of NNPC as well as ES of PPPRA, and urge the Executive to make provision for subsidy payment in the 2019 budget,” he said.

Senate To Probe Oil And Gas Lease Renewal

Senate To Probe Oil And Gas Lease Renewal By Kachikwu, DPR
Senate Chamber (file)

 

The Senate has resolved to investigate the ongoing oil and gas lease renewal being undertaken by the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, and the Department of Petroleum Resources (DPR).

The lawmakers took the decision on Wednesday following a motion sponsored by Senator Omotayo Alasoadura at plenary in the Red Chamber of the National Assembly in Abuja.

Senator Alasoadura accused the minister and the DPR of perpetuating irregularities capable of denying the government revenue in excess of $10billion, as a result of alleged illegal discounts and rebates in the process of lease renewal.

FG Not Increasing Fuel Price From N145 – Kachikwu
(File) Minister of State for Petroleum Resources, Dr Ibe Kachikwu, addressing a press conference in Abuja.

 

Senator Shehu Sani, on his part, said the issue of lease renewal had been a major discourse in the last one week.

He was hopeful that a thorough investigation into the issue would open “a whole can of worms” on the matter.

“There have been series of motions related to this issue and I think further investigation is required,” Senator Sani said.

On his part, Senator Umaru Kurfi said, “We cannot be seen folding our arms on this issue. We have to take deliberate steps to end these discrepancies and call in the Minister of State for Petroleum for further investigation.”

Senator Gbolahan Dada also suggested that the Senate invites Dr Kachikwu, as the matter that needed to be addressed was “lack of enforcement”.

But Senator Rafiu Ibrahim believes the minister cannot approve issues such as this and asked the lawmakers to expand the list of those to be called in for investigation.

The Senate consequently resolved to mandate the Committee on Petroleum Resources (Upstream) to investigate the issue and report back to the chamber.

The committee was also directed to identify measures to correct the purported anomalies in the lease renewal.

Kachikwu, OPEC Secretary-General Attend Petroleum Summit In Abuja

Kachikwu, OPEC Secretary-General Attend Petroleum Summit In Abuja
Photo: Twitter – @NNPCgroup// R-L: Dr Maikanti Baru, Mr Mohammed Barkindo, Mr Boss Mustapha, and Dr Ibe Kachikwu hold a discussion at the summit.

 

Nigeria held its inaugural edition of International Petroleum Summit on Monday in Abuja, the Federal Capital Territory.

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, presented the ministerial address while the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr Maikanti Baru, delivered a speech at the event.

President Muhammadu Buhari was also attended at the event by the Secretary to the Government of the Federation, Mr Boss Mustapha.

In his address, Mr Mustapha announced the plans of the Federal Government to make Nigeria a major hub for investment in the oil and gas sector in Africa.

On his part, the Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC), Mohammed Barkindo, presented a keynote address on the World Oil Outlook 2018and the Energy Transition.

See photos from the event below:

Reps Summon Kachikwu, Baru Over Alleged Fuel Subsidy Payment

Reps Summon Kachikwu, Baru Over Alleged Fuel Subsidy Payment
File photo

 

The House of Representatives has summoned the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru.

The summon followed a motion sponsored on Wednesday by a lawmaker from Kogi State, Honourable Sunday Karimi, who drew attention to the need to investigate the allegation of fuel subsidy payment by the corporation.

Mr Karimi was concerned that “the Federal Government claimed that it has stopped fuel subsidy payment and it is the NNPC that is paying subsidy through its routine trading activities.”

He was also worried about claims that such payment does not “require budgetary approval”, while motion gained the support of a majority of the lawmakers.

Kachikwu and Baru were consequently directed to appear before a Joint Committee of the House to explain the current subsidy payment.

Both men were also asked to account for the funds spent on subsidy payment since January 2017 to date.

The House, however, asked President Muhammadu Buhari to formally request for approval of budgetary provision for fuel subsidy in the 2018 Appropriation Bill, if there is a need for such.

PENGASSAN Suspends Nationwide Strike

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has suspended its planned nationwide strike.

The decision to suspend the strike which was planned to commence 11:59 pm today (Monday) followed the intervention of the Director of State Security Service, the Minister of Labour and Productivity, Chris Ngige and the Minister of State for Petroleum Resources, Ibe Kachikwu.

PENGASSAN giving reasons for the strike had earlier alleged anti-labour practices against some of its members by some indigenous oil companies.

The management of Neconde Energy Limited after the negotiation with the DSS, the Federal Government represented by the Minister of Labour and Minister of State for Petroleum offered a letter of recall to the sacked employees of the company.

Neconde Energy Limited was represented by its Medical Director and legal consultants. The management also agreed to allow the union to exist in the company.

PENGASSAN National PRO, Fortune Obi who disclosed the decision of the association to suspend the strike to Channels Television on Monday, added that the Minister of Labour and Productivity, Chris Ngige, therefore, agreed to endeavor to resolve anti-union posture by other indigenous companies and marginal field operators while a meeting was fixed for the second week of January 2018 to look at the issues.

N827billion Contract: NNPC Denies Breaching Due Process

There Is No $25bn NNPC Contracts Anywhere, Says Presidency

The Nigerian National Petroleum Corporation (NNPC) has on Saturday insisted that it followed due process in contracts tendering.

The group in a series of tweets through its official Twitter handle, @NNPCgroup, denied breaching any contracting process including the Ajaokuta-Kaduna-Kano Gas (AKK) N827billion Pipeline contract.

The Minister of State for Petroleum Resources, Ibe Kachikwu had earlier in October wrote to President Muhammadu Buhari on August 30, 2017, in a leaked media alleging insubordination by the Group Managing Director of the NNPC, Maikanti Baru, accusing him of not following due process in the tendering for the contract.

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Describing alleged breach in the contract tendering process as misleading, the NNPC management through the series of Tweets also denied the contract was already approved before last week Wednesday.

“The attention of NNPC group has been drawn to an online report wherein it was stated that the Ajaokuta-Kaduna-Kano Gas (AKK) Pipeline contract was presented before the Federal Executive Council (FEC) for approval “to correct the infringement of due process by the initial approval given by the President”.

“It was also stated that the contract was resubmitted for approval “to correct the alleged irregularity pointed out in a leaked memo to the President.”

The NNPC said these allegations are misrepresentations aimed at misleading Nigerians. The group said tendering process requires that all contracts are presented for approval by the NNPC Tenders Board (NTB). Where the contract is above NTB’s threshold of $20million, it endorses it to FEC.

“The AKK tender followed exactly this process. It is important for the general public to note that no contracting process was breached in the AKK nor any contracts handled by NNPC group,” NNPC said.

READ ALSO: NNPC GMD Breaks Silence On Kachikwu’s Letter

NNPC also said the AKK tender which was considered and endorsed by NTB on July 12, 2017, for consideration by the Federal Executive Council (FEC), was never approved by Mr President nor considered by FEC prior to December 13, 2017.

Responding further to an apparent allegation by Kachikwu at the FEC meeting held in Abuja on Wednesday, NNPC said it is, therefore, most unfortunate the continued claim that there was an approval for the contract and that it had to be represented to the FEC again to correct any infringement.

NNPC, therefore, insisted that there was no irregularity in the process of tendering contracts and due process was followed.

NNPC GMD Breaks Silence On Kachikwu’s Letter

Minister of State for Petroleum Resources, Dr Ibe Kachikwu, and NNPC Group Managing Director, Dr Maikanti Baru

The Nigerian National Petroleum Corporation (NNPC) has broken its silence on the recent letter written by the Minister of State for Petroleum Dr Ibe Kachikwu to President Muhammadu Buhari.

The NNPC in a letter titled ‘Re: Allegations of Lack of Adherence to Due Process in NNPC Contract Awards’ and signed by the General Manager Public Affairs,  Ndu Ughamadu, states that the law and rules of NNPC do not require discussion with the Minister of state before awarding contracts.

“It is important to note from the outset that the law and the rules do not require a review or discussion with the Minister of State or the NNPC board on contractual matters but  the President’s approval in his executive capacity as Minister of Petroleum, or the Federal Executive Council  as the case may be.”

The statement adds that contrary to Kachikwu’s claims, he was involved in the contracting process for the crude oil term contracts.

“Furthermore, contrary to the assertion of Dr Kachikwu that he was never involved in the 2017/2018 contracting process for the Crude Oil Term Contracts, Dr. Kachikwu was in fact expressly consulted by the GMD and his recommendations were taken into account in following through the laid down procedure,” the statement read in parts.

The statement concludes that Kachikwu’s allegations were baseless as due process was followed in the various activities bordering on awarding of contracts.

“From the foregoing, the allegations were baseless and due process has been followed in the various activities. Furthermore, it is established that apart from the AKK project and NPDC production service contracts, all the other transactions mentioned were not procurement contracts. The NPDC production service contracts have undergone due process, while the AKK contract that requires FEC approval has not reached the stage of contract award.”

We Can’t Confirm Rescue Of Workers – Kachikwu

Researchers Kidnap: Kachikwu Doubts NNPC Workers' Rescue

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, says the ministry cannot confirm the rescue of the oil workers who fell into the ambush of suspected Boko Haram terrorists in Borno State.

The minister stated this on Thursday at a news conference in Abuja, the Federal Capital Territory.

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“We have heard but cannot confirm reports that there has been some rescue; those details we are still discussing with military authorities. I’m sure that in the next couple of days the military authorities will give us a lot more specifics in terms of the number of causalities and we will begin to make contacts with their respective families to support them at this very difficult times,” he said.

Dr Kachiwu noted that resumption of crude oil prospecting in the Chad Basin would continue when adequate security has been made for workers involved in the exploration.

On July 25, suspected Boko Haram terrorists had attacked the convoy of the Nigeria National Petroleum Corporation (NNPC) workers involved in Gubio Local Government Area of Borno State.

Also attacked were consultants from the University of Maiduguri, some military personnel and members of the civilian Joint Task Force escort team.

The team was returning to Maiduguri after conducting a geological study of part of the Lake Chad Basin in preparation for re-entry for seismic activities.

The Nigerian Army, through its spokesman Brigadier General Sani Usman, however, said that all the workers had been rescued and would inform the ministry at the appropriate time.

Brigadier General Usman had noted that on receipt of the information, the Army mobilised and sent reinforcement, search and rescue party that worked and pursued the terrorists throughout the night.

Unfortunately, he said the Army was unable to rescue nine of its personnel and a civilian who were killed by the insurgents.

FG To Stop Fuel Importation In 2019 With New Oil Policy

NEC, Alternative funding, Oil and gasThe Federal Government is set to stop the importation of fuel by 2019 with the approval of a new National Oil Policy by the Federal Exective Council.

The Minister of State for Petroleum, Mr Ibe Kachikwu told journalists that the policy is geared towards re-organising the NNPC for greater efficiency and accountability.

This is a follow up to the National Gas Policy which was considered three weeks ago to ensure Nigeria moves from an oil to a gas-producing nation.