Army destroys illegal refineries in Nigeria, seizes crude oil

The Nigerian army said on Wednesday that it had destroyed at least 27 illicit oil refineries and seized around 100,000 liters (26,400 gallons) of stolen crude oil in a series of raids in the Niger river delta this week.

In a statement, the army said its troops destroyed 23 illegal sites along the Imo River in southeast Nigeria. It described the region as "a renowned hub of criminal activities."

Elsewhere, soldiers from the 16th brigade neutralized four illegal refineries in the Degema region near Port Harcourt.

Army spokesman Danjuma Jonah Danjuma said that, along with the crude oil itself, vehicles, storage tanks and metal drums were also confiscated.

"The confiscated products are being handled appropriately," the lieutenant colonel said, according to Nigeria's Daily Post newspaper.

Major General Jamal Abdussalam, commanding officer of the sixth division, commended his troops for their "renewed disposition to take criminal merchants out of business" and ordered them to "ensure the integrity of the pipelines [is] maintained."

He also called on local community stakeholders to continue to provide information on criminal activities to the security agencies.
 

Nigeria's economy hit by drop in oil supply

Nigeria is Africa's leading energy producer but large-scale oil theft and pipeline sabotage have decreased output in recent years — reducing exports, crippling government finances and posing a serious challenge for President Bola Tinubu.

Just last week, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it had only been able to help secure 177,777 barrels per day (bpd) from oil producers in the first six months of the year, despite refineries raising their requirements for the second half of 2024 to 597,700 bpd.

Meanwhile, lawmakers in Lagos are considering new, stricter punishments for "subversive actions" which critics say are aimed at anti-government protesters. However, the proposed regulation could feasibly by applied to oil smugglers, too.

On Wednesday, parliamentarians began debating a Counter Subversion Bill which proposes three-year jail terms for "disobeying constituted authority," five years for erecting "illegal road blocks" and up to ten years for refusal to sing the national anthem.

The new bill comes as a response to nationwide protests against economic reforms which have exacerbated a cost-of-living crisis in Nigeria.

DW

Related story: Nigeria Tracks Down Bunker Vessel and Holds it on Oil Theft Charges

Nigeria targets crypto accounts worth $38 million in intensified crackdown

Nigerian authorities have moved to freeze millions of dollars of value held in cryptocurrency wallets, which media reports say is an attempt to cut funding to a protest movement.

The move marks an escalation in a year-long crackdown on crypto use since Nigeria’s central bank alleged in February that crypto platforms enabled money flows through the country from unidentifiable sources.

In a Tuesday briefing to a government council chaired by President Bola Tinubu, National Security Adviser Nuhu Ribadu said his office initiated action to freeze $38 million held as crypto in digital wallets. The accounts allegedly received donations in support of nationwide cost of living protests that were held at the beginning of this month, local media outlets reported.

A separate report by Premium Times detailed screengrabs of what it purports to be a court order in Nigeria’s capital Abuja authorizing EFCC, Nigeria’s financial crimes investigator, to freeze four wallets holding about 37 million USDT, a stablecoin valued at par with the dollar. The wallets “are owned by individuals being investigated for offences of Money Laundering and Terrorism Financing,” the EFCC said according to the purported court order.

It is not clear when the agency began its investigation of the wallets’ owners. The order to freeze did not specify a connection to the protests and was granted on Aug. 9, the protests’ penultimate day. An EFCC spokesperson did not immediately respond to requests for comment by Semafor Africa.


Know More

Nigeria’s crackdown has included shutting off user access to crypto websites and trading platforms, and the arrest of staffers of Binance, one of the world’s largest crypto companies. Authorities have said crypto trading fueled a sharp weakening of the naira currency earlier this year.

Some doubt has been raised as to the content of the crypto wallets targeted by Nigerian authorities.

Two reports on Wednesday argued that two of the wallets contained less crypto than the EFCC’s court order stipulated and that they remained active, while a third wallet was non-existent. KuCoin, a crypto trading exchange that suspended its peer-to-peer service in Nigeria in May and reported by technology publication Techpoint as the owner of one of the four wallets, could not be reached for comment.


Alexander’s view

Nigeria’s latest action against crypto holders is not surprising given the government’s tone all year, but its overlap with cost of living protests suggests a broader security anxiety within government circles.

Despite veiled threats by the army and police to discourage the protests, residents across the country marched earlier this month against the soaring prices of food and other essentials. The protests did not quite last for the scheduled 10-day period as intensity faded after the first few days. Security forces used tear gas and live ammunition on protesters. At least six people were reportedly killed on the first day of demonstrations.

The specter of Russian flags being flown in northern states, where incidents of looting of stores were also attributed to protesters, appears to have evoked a determination to identify and punish leading actors of the protests. Targeting funding sources is one way to do so, as the authorities did in 2020 during protests against police brutality known as #EndSARS.

By Alexander Onukwue, Semafor

Related story: US lawmakers say Nigeria is detaining American to extort Binance

Nigeria Is Turning Into an Oil Market Juggernaut

In a finely balanced oil market, Nigeria has suddenly reemerged as a key player.

During the past few weeks, actions by the country’s massive Dangote refinery have moved prices, with purchases of US barrels initially boosting the crude futures curve before a decision to sell them sent oil tumbling.

Once fully operational, the plant outside Lagos will be able to process 650,000 barrels a day, rivaling the largest sites in the US and more than 50% larger than Europe’s biggest refinery.

A look at International Energy Agency data this week shows why that’s so important.

Even if OPEC+ cancels planned supply hikes, there will be a surplus of about 860,000 barrels a day next year. The group currently plans to add 540,000 barrels a day next quarter.

Both figures are close to Dangote-sized swings.

Refinery ramp-ups are complicated, and there’s already been at least one delay. But once the site starts churning out gasoline, it will transform fuel markets in the region and upend long-established trade flows, particularly in Europe, where Nigeria currently purchases much of its supplies.

Aliko Dangote, the billionaire behind the plant, said last month the plan is for it to start producing the fuel in August, though others are doubtful.

“The refinery’s gasoline is unlikely to hit the market until at least September,” consultant FGE wrote this month, citing issues with some of the plant’s units.

Then there’s the question of feedstock.

The facility was built on a dream of Nigeria consuming its own crude. That’s why there was an uproar when Dangote started buying US supplies.

Recently, the country announced plans for its refiners to pay for oil in local currency and to consume as many as 445,000 barrels a day of domestic product. Still, it’s unclear how the latter will happen.

But if it does, that will mean less crude for current buyers, notably in Europe.

It also means that in an oil market focused on war, economic slowdowns and output curbs, Nigeria will be a surprisingly hot topic among traders in coming months.

Alex Longley and Bill Lehane, Bloomberg

Nigeria and Equatorial Guinea sign gas pipeline project

Nigeria and Equatorial Guinea have signed an agreement to establish and operate a gas pipeline, Nigerian presidential spokesperson Ajuri Ngelale said in a statement on Thursday.

Nigerian President Bola Tinubu met with Equato-Guinean President Teodoro Obiang Nguema Mbasogo in the Central African country of Equatorial Guinea during a three-day visit to discuss issues ranging from employment and conflicts to food security among others.

Nigeria and Morocco agreed to build the pipeline in 2016 to promote regional integration and enhance energy security, while offering African gas an export route to Europe

That project, backed by the Economic Community of West African States (ECOWAS), is expected to cost $25 billion and have a capacity of 30 billion cubic meters per year, to be completed in three phases as it links up to existing infrastructure.

The agreement with Equatorial Guinea covers legislative and regulatory measures for the gas pipeline, establishment and operation, transit of natural gas, ownership of the gas pipeline, and general principles.
Mbasogo hailed the deal as being strategic to Africa's development and the continent's bid to have a permanent seat on the United Nation's security council. 

By Felix Onuah, Reuters

Couple behind popular restaurant face being deported to Nigeria with their three young kids in DAYS

A family from Leigh fear they will be kicked out of the country if they don't raise enough money to pay for new visas. Cynthia and Bright Chinule, who run a popular restaurant in the town, say they have just over two weeks to raise just under £26k or they could be forced to return to Nigeria after six years of building a life in England.

The couple, behind the well known Nigerian restaurant Taste Africana, say they are unable to pay the visa renewal fees for their family-of-five after a sudden roof collapse left them in a financial hole.


Last year they were left 'heartbroken' after the roof of the first building their restaurant was based in suddenly caved in just two months after opening. Luckily, they were able to find a new home just minutes away on Market Street where they have been operating since November 11.

However, according to Bright, the financial knock-on effects means the couple, who have three children, have been unable to keep on top of the rising cost of living, visa fees and things like immigration health surcharge payments, which is a fee paid by migrants who live in the UK for more than six months.

"They've put up the immigration charges, health insurance used to be around £300 per year," explained Bright.

"It's gone all the way up to around £1,800 per person, per year. Think about me who's got a family of five. If I add visa application fees and lawyer fees it brings everything to up to around £26k.

"The visa expires in 12 days so we need to at least put in an application the night before. At this stage we just don't have the money to do that.

"The target is to get enough money to get the whole visa thing fixed to give us some peace of mind. The idea that there is a possibility of being kicked out after six years of work has drained all the peace out of me. It takes a huge toll on you, honestly."

Before opening, Taste Africana was ‘Home Food UK’, an online takeaway operating from Cynthia and Bright’s kitchen at their home on Glebe Street, after the couple moved to the area in 2021 to raise their young family.

A former maths teacher, Cynthia was the first to suggest going into the food sector when she was on maternity leave and realised she wouldn't be able to go back to work as a teaching assistant and look after their children.

She started Home Food UK, which proved a big hit. With two masters degrees and a career in the NHS, Bright also took the leap to support Cynthia in running Taste Africana.

But the family are now facing the possibility of restarting their lives in Nigeria should they fail to submit applications before the deadline after six years of trying to build something in the UK.

Bright said: "In the worst case scenario we will be asked to leave the UK. We're going to be given 60 days to leave if we're lucky.

"Then, where do you start from? Flight tickets are so expensive. I've got a business that I've built here, we can't sell that overnight.

"Are we going to leave it behind and just move? You can't sell a business overnight or sell all the things inside it overnight. Where does that leave you? I can't even think about it.

"The reality kicked in when I realised I've got a little over two weeks left. Miracles can happen but I've tried everything within my capacity and I'm just stuck."

Bright added: "It's a difficult place to be in. It's difficult to be thriving and make some impact and then all of a sudden not being able to move because all these barriers have been placed around you.

"We are currently on the post study visa, so it means I've done a higher education course. I've finished that course and now I've been granted to remain in the country to find my feet, get a job etc.

"That's what I've done essentially. Education alone as an international student costs an arm and a leg and that's all to guarantee some sort of economic stability so you can be productive in the system. All of a sudden your wings are clipped because of your immigration status."

A Home Office spokesperson said: “Our visa fees have been informed by the principle that those who use and benefit from the immigration system should contribute towards the cost of operating it, reducing the level of UK taxpayer funding that would otherwise be required.”

The family's Gofundme page can be found here.

By Ramazani Mwamba, Manchester Evening News

Related story: 174 migrants deported from Libya to Nigeria

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