Africa’s biggest oil producer is trying to get its refineries working in an attempt to wean itself off imported fuel. Yet again.
Over the past 12 years, Nigeria tried and failed four times to crank up its ageing and unprofitable crude-processing plants. Now the state-run energy company is giving it another shot — a move that, if successful, could end the nation’s reliance on fuel imports. However, the country’s recent track record means there is scepticism about the latest effort.
“For our refineries that have not been properly maintained for years, it might be easier to build a new one,” said Cheta Nwanze, head of research at SBM Intelligence, a Lagos-based risk advisory.
The West African country of 200-million people imports more than 90% of products such as petrol and diesel, swapping its prized export — crude — for petroleum products that people need.
The Nigerian National Petroleum Corporation (NNPC) operates four refineries that have long run at a fraction of their capacity. The newest is almost four decades old. By successfully making its own fuels, Nigeria would stop being reliant on traders bringing supplies on tankers from thousands of miles away, with all the extra costs that entails.
Truly committed
Mele Kyari, the newly appointed group MD of NNPC, says this time will be different.
He has made fixing the plants a main part of his agenda since taking the helm of the company in July, and says President Muhammadu Buhari is the country’s first leader in years to be committed to the revamp. Kyari has revived a target to upgrade the plants and end fuel imports by 2023, after the company missed a previous goal for the end of 2019.
Timipre Sylva, the minister of state for petroleum resources, said the overhaul should be successful this time because Nigeria is asking the owners of the refinery technology to get more involved in the work. Once the plants are operational, they will be run by external people, which will also help, he said.
The work is scheduled to begin in January, first on the Port Harcourt complex, a two-refinery facility with the capacity to process 210,000 barrels of crude a day. Repairs will then move to the smaller refineries.
Dangote boost
Some of Nigeria’s challenges to become more self-sufficient in fuel may soon be alleviated for another reason. In the next few years, a new, privately owned 650,000 barrel-a-day refinery is due to come online. In theory, it could meet all of the country’s fuel needs and have enough left over for exports.
The plant, being built by Africa’s richest man, Aliko Dangote, is not owned by the Nigerian state. That means that the country would have to pay market prices — similar to those charged by traders — for the fuel the refinery churns out. There would be little reason for Dangote to subsidise Nigeria’s domestic fuel prices if it were more profitable for the refinery to sell elsewhere.
The scepticism that state-run plants can return to full operation stems from NNPC’s previous attempts. Efforts to overhaul its refining industry — in 2007, 2010, 2012 and 2016 — all failed to work out. The state energy company has to compete with other domestic demands for funding, such as health care, education and other social services.
Three years ago, Nigeria sought external financing for its refineries after a plunge in crude prices, oil theft and attacks on its pipelines by militants and other saboteurs. That effort crumbled after it failed to convince investors of the viability of the venture.
NNPC is talking to the African Export-Import Bank and other financial institutions to fund the revamp.
“The money to comprehensively fix the refineries is simply not there,” said Ayodele Oni, chair of the energy and natural resources practice at Bloomfield Law in Lagos. “It is a difficult task to attract any significant funding required for their repairs in their present state.”
Business Day
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Tuesday, October 22, 2019
Smuggling booms despite Nigeria border closure
Francis Sardauna in Katsina and Eromosele Abiodun in Lagos
Despite the closure of Nigerian land borders by the federal government in the last three months, smuggling still persists at the border between Nigeria and Niger Republic, THISDAY’s investigation has revealed.
THISDAY gathered that at the border between Jibia in Katsina State and Niger Republic, smugglers have resorted to the use of illegal routes to ferry in bags of foreign rice, bales of second-hand clothing and other contrabands.
However, the Nigeria Customs Service (NCS) has dismissed the observation, calling for either a photograph or video evidence to prove the allegation. NCS also said it would be impossible for smugglers to operate at any of the country’s borders.
Investigation revealed that while strict compliance appears to reign at the main border post between the two countries, illegal businesses still thrived at some bush paths and sundry illegal entry points where unscrupulous security operatives, work hand-in-glove with smugglers to smuggle contraband goods into the country.
President Muhammadu Buhari had on August 20, 2019 ordered a joint border security aimed at securing the country’s land and maritime borders.
But when THISDAY visited the border town of Jibia at the weekend, it was observed that there were some illegal routes that commercial drivers and motorcyclists were using to transport goods and passengers into the country.
It was gathered that rice smugglers were also taking advantage of the lax security to bring their wares into the country but at much higher price than before.
Some of the illegal routes the smugglers used to ferry in the contrabands from Niger Republic to Jibia Local Government Area of Katsina State include Sabon Gari, Dan-Harau, Alele, Makada and Maidabaro roads despite heavy security at the borders.
The smugglers, it was learnt, go through the laborious route of offloading the contrabands few meters away from the official border security post and use J-5 buses, Gulf 4 and 5 vehicles and motorcycles to ferry the items from their hideouts into Jibia for onward transportation to their warehouses in Katsina, Kano, Kaduna, Zamfara, Jigawa States and some other parts of the country.
Residents of the border town told THISDAY that the smugglers were being aided by security personnel, including soldiers, policemen, Customs and immigration officials, who allegedly collected money from the smugglers to allow them a free passage at the 13 checkpoints between Jibia and Katsina metropolis.
A motorcyclist involved in smuggling, who pleaded anonymity, told THISDAY that those of them engaged in the business understood the risks and dangers involved but affirmed that they would not encounter any problem unless they refused to cooperate with security operatives at the checkpoints.
“Unless one refused to pay the bribe for each category of items or when it is time for the officials to sacrifice you to prove that they are working – that is when they will arrest you in the name of smuggling,” he explained.
A commercial driver simply identified as Sule, who specialised in smuggling, said business had been booming for them because they do convey a bag of rice from Maradi (Niger Republic) to Katsina at the cost of N3,000 each.
“We used to charge rice merchants N3,000 for each bag of rice carried from Maradi to Katsina State. Although, we do follow bush paths and sometimes custom officers do arrest us. But once we give them some monies they allow us to pass even though some of them are very stubborn,” he stated.
He, however, lamented that the border closure has contributed negatively to the socio-economic imbalance of the state and the country in general.
When contacted, the NCS Commander in charge of Sector 4 Command of the National Border Drill Operation, Bashir Abubakar, said about 50 suspected smugglers had so far been apprehended and 14 trucks of contrabands intercepted.
He lamented that Jibia border has always been one of their major flashpoints since the commencement of the operation two months ago because of the “mental behaviour” of the inhabitants of the area.
“We have seen that people of that area are not in good terms with government security agencies and it has been a history,” he added.
On the allegation that his officers were extorting money from smugglers, Abubakar said: “I will not say yes, it is true but at the same time I will not deny because we are all human beings and there is no Nigerian that changes name in terms of issues of integrity and character.
“Think of anywhere in the world, there are bag eggs and good eggs. The same thing applies to various agencies in Nigeria – both government and private agencies but anyone found wanting will be punished.”
He added that lack of adequate operational vehicles and banditry has affected their ability to carry out the operation in all the villages in the state.
The Sector 4 Command of the National Border Drill Operation covers Jigawa, Kano, Katsina, Sokoto, Kebbi and Zamfara States.
Officers on the joint exercise were drawn from the Nigeria Customs Service, Nigeria Army, Nigeria Immigration Service, DSS and Nigerian Air Force.
We Need Video Evidence, Says Customs
When contacted, the Public Relations Officer (PRO) of the Nigeria Customs Service, Joseph Attah said it would be impossible for smugglers to move around easily in any Nigerian border because of the security presence at the borders.
He said officers manning the borders were drawn from security services, which include the police, air force, army, Customs and the Department of State Services (DSS).
“This information is important to me. If you have evidence kindly make it available so I can challenge the Sector 4 Commander. This is something that nationwide, whoever gives that information should give us photographs or video evidence.
“The NCS is very interested in this information. What I can tell you is that this joint border exercise is coordinated by the office of the National Security Adviser (NSA) and there are joint forces, not only Customs officers and they are in all the borders, divided into four sectors. If I have an evidence to back up this information, I will quickly take it up with the Sector Commander and report the matter to the Office of the National Security Adviser.
“This is not Customs alone; the police are there, air force and the army are there; so, if somebody goes to Jibia and is saying that is what is happening in Idi-Iroko is not happening at Jibia, then, I will be interested. This is not Customs affair; it is all security agencies that are there. Your reporter should tell me where he is there so I can connect him with the people on ground to help.
When asked if there is possibility smuggling is still going on in Jibia, he said, “I can tell you that whatever you see happening in Seme, Idi-Iroko and other land borders around the country is what is happening in Jibia, Umfun, Cross Rivers, and Migatiri in Sokoto State.”
This Day
Despite the closure of Nigerian land borders by the federal government in the last three months, smuggling still persists at the border between Nigeria and Niger Republic, THISDAY’s investigation has revealed.
THISDAY gathered that at the border between Jibia in Katsina State and Niger Republic, smugglers have resorted to the use of illegal routes to ferry in bags of foreign rice, bales of second-hand clothing and other contrabands.
However, the Nigeria Customs Service (NCS) has dismissed the observation, calling for either a photograph or video evidence to prove the allegation. NCS also said it would be impossible for smugglers to operate at any of the country’s borders.
Investigation revealed that while strict compliance appears to reign at the main border post between the two countries, illegal businesses still thrived at some bush paths and sundry illegal entry points where unscrupulous security operatives, work hand-in-glove with smugglers to smuggle contraband goods into the country.
President Muhammadu Buhari had on August 20, 2019 ordered a joint border security aimed at securing the country’s land and maritime borders.
But when THISDAY visited the border town of Jibia at the weekend, it was observed that there were some illegal routes that commercial drivers and motorcyclists were using to transport goods and passengers into the country.
It was gathered that rice smugglers were also taking advantage of the lax security to bring their wares into the country but at much higher price than before.
Some of the illegal routes the smugglers used to ferry in the contrabands from Niger Republic to Jibia Local Government Area of Katsina State include Sabon Gari, Dan-Harau, Alele, Makada and Maidabaro roads despite heavy security at the borders.
The smugglers, it was learnt, go through the laborious route of offloading the contrabands few meters away from the official border security post and use J-5 buses, Gulf 4 and 5 vehicles and motorcycles to ferry the items from their hideouts into Jibia for onward transportation to their warehouses in Katsina, Kano, Kaduna, Zamfara, Jigawa States and some other parts of the country.
Residents of the border town told THISDAY that the smugglers were being aided by security personnel, including soldiers, policemen, Customs and immigration officials, who allegedly collected money from the smugglers to allow them a free passage at the 13 checkpoints between Jibia and Katsina metropolis.
A motorcyclist involved in smuggling, who pleaded anonymity, told THISDAY that those of them engaged in the business understood the risks and dangers involved but affirmed that they would not encounter any problem unless they refused to cooperate with security operatives at the checkpoints.
“Unless one refused to pay the bribe for each category of items or when it is time for the officials to sacrifice you to prove that they are working – that is when they will arrest you in the name of smuggling,” he explained.
A commercial driver simply identified as Sule, who specialised in smuggling, said business had been booming for them because they do convey a bag of rice from Maradi (Niger Republic) to Katsina at the cost of N3,000 each.
“We used to charge rice merchants N3,000 for each bag of rice carried from Maradi to Katsina State. Although, we do follow bush paths and sometimes custom officers do arrest us. But once we give them some monies they allow us to pass even though some of them are very stubborn,” he stated.
He, however, lamented that the border closure has contributed negatively to the socio-economic imbalance of the state and the country in general.
When contacted, the NCS Commander in charge of Sector 4 Command of the National Border Drill Operation, Bashir Abubakar, said about 50 suspected smugglers had so far been apprehended and 14 trucks of contrabands intercepted.
He lamented that Jibia border has always been one of their major flashpoints since the commencement of the operation two months ago because of the “mental behaviour” of the inhabitants of the area.
“We have seen that people of that area are not in good terms with government security agencies and it has been a history,” he added.
On the allegation that his officers were extorting money from smugglers, Abubakar said: “I will not say yes, it is true but at the same time I will not deny because we are all human beings and there is no Nigerian that changes name in terms of issues of integrity and character.
“Think of anywhere in the world, there are bag eggs and good eggs. The same thing applies to various agencies in Nigeria – both government and private agencies but anyone found wanting will be punished.”
He added that lack of adequate operational vehicles and banditry has affected their ability to carry out the operation in all the villages in the state.
The Sector 4 Command of the National Border Drill Operation covers Jigawa, Kano, Katsina, Sokoto, Kebbi and Zamfara States.
Officers on the joint exercise were drawn from the Nigeria Customs Service, Nigeria Army, Nigeria Immigration Service, DSS and Nigerian Air Force.
We Need Video Evidence, Says Customs
When contacted, the Public Relations Officer (PRO) of the Nigeria Customs Service, Joseph Attah said it would be impossible for smugglers to move around easily in any Nigerian border because of the security presence at the borders.
He said officers manning the borders were drawn from security services, which include the police, air force, army, Customs and the Department of State Services (DSS).
“This information is important to me. If you have evidence kindly make it available so I can challenge the Sector 4 Commander. This is something that nationwide, whoever gives that information should give us photographs or video evidence.
“The NCS is very interested in this information. What I can tell you is that this joint border exercise is coordinated by the office of the National Security Adviser (NSA) and there are joint forces, not only Customs officers and they are in all the borders, divided into four sectors. If I have an evidence to back up this information, I will quickly take it up with the Sector Commander and report the matter to the Office of the National Security Adviser.
“This is not Customs alone; the police are there, air force and the army are there; so, if somebody goes to Jibia and is saying that is what is happening in Idi-Iroko is not happening at Jibia, then, I will be interested. This is not Customs affair; it is all security agencies that are there. Your reporter should tell me where he is there so I can connect him with the people on ground to help.
When asked if there is possibility smuggling is still going on in Jibia, he said, “I can tell you that whatever you see happening in Seme, Idi-Iroko and other land borders around the country is what is happening in Jibia, Umfun, Cross Rivers, and Migatiri in Sokoto State.”
This Day
Monday, October 21, 2019
Video - Nigeria ranked as the poverty capital of the world
A new report shows that 94 million people live in extreme poverty, with the country ranked as the poverty capital of the world. The latest data comes from the World Poverty Clock which tracks poverty levels in real time. CGTN's Samson Omale tells us how Nigerians are reacting to the news and their falling standards of living.
Video - Experts in Nigeria urge government to keep the internet safe
According to a United Nations report, around one-in-three young people across 30 countries have been bullied online, while one-in-five have skipped school because of it. With a rapid growth of internet population in Nigeria, experts are now calling on the government to put measures in place to tackle the issue of cyber bullying.
Gunmen kidnap police officer in Nigeria
Nigerian police confirmed on Sunday the abduction of a senior police officer in the northern state of Kaduna on Saturday.
Musa Rambo, an assistant commissioner of police in charge of central north city of Suleja, was kidnapped on a highway road in the state by gunmen suspected to kidnappers, state police spokesman Yabuku Sabo told Xinhua.
Sabo did not reveal the detail of the kidnap, only saying contact had been established with the kidnappers requesting for a ransom which he failed to mentioned.
A security source told Xinhua that the kidnappers requested a ransom of 50 million naira (about 140,000 U.S. dollars) for the police officer to regain his freedom.
Xinhua
Musa Rambo, an assistant commissioner of police in charge of central north city of Suleja, was kidnapped on a highway road in the state by gunmen suspected to kidnappers, state police spokesman Yabuku Sabo told Xinhua.
Sabo did not reveal the detail of the kidnap, only saying contact had been established with the kidnappers requesting for a ransom which he failed to mentioned.
A security source told Xinhua that the kidnappers requested a ransom of 50 million naira (about 140,000 U.S. dollars) for the police officer to regain his freedom.
Xinhua
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