Kachikwu Promises Fuel Scarcity Will End By April 7, Explains How He Will End It

Minister of State for Petroleum Resources Ibe Kachikwu announced that fuel lines will end by April 7th, amid significant public pressure. He made the announcement after apologizing for his “magician” comment and proceeded to explain the country’s fuel scarcity.

The minister cited “old and dilapidated” refineries in Nigeria as the major source of fuel scarcity. He maintained that they will be “revived to full capacity” with appropriate funding. Mr. Kachikwu added that the government will be seeking the services of consultants to assist in the revitalization and management of Nigeria’s refineries.
However, even if Nigeria’s refineries were operating at full capacity, Mr. Kachikwu said that they would still fail to meet local demand.
“The design of the Nigerian refineries was such that the component of Premium Motor Spirit (PMS) versus other products was almost a 50/50 percent relationship. Most world refineries now provide PMS at about a 70 to 80 percent ratio,” he explained.
In order to remedy this, the government will utilize other sources of refining petrol and will depend on private refineries, such as Dangote refinery.
Mr. Kachikwu stated that Nigerian refineries perform poorly due to fraud and lack of maintenance.
“Over the last 10 to 15 years, we have not done a serious, conclusive turn around maintenance of these refineries; the refineries are on average 30 to 40 years old,” he explained.
“We have also had issues of fraud. It got to a point where I started wondering whether as we repair this, somebody was going out there to destroy it, so that contracting will be done.”
Despite these problems, Mr. Kachikwu is confident that fuel lines will end by April 7.
“We expect that between now and about the 6th or 7th of April, the fuel queues will disappear, the Direct Sale-Direct Purchase system will begin and the foreign exchange allocation [of petrol] will see us smoothly through the track,” he said.

Buhari, Oil Workers Meet To Tackle Petrol Scarcity

 



President Muhammadu Buhari has held a meeting with the leaders of the NUPENG and PENGASSAN behind closed doors in the Presidential Villa, Abuja to promote peace and harmony in the oil and gas sector.
Briefing reporters after the meeting on Wednesday, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said the meeting reviewed the oil industry and looked at how to end the petrol scarcity.
He said that the President, who had headed the sector before, shared some of his thoughts and possible solutions to the challenges.


Dr Kachikwu told reporters that the government was looking to see how it could get foreign exchange input to help in cushioning the crisis of petroleum supply.


“The President and I discussed extensively this morning and we talked about how to allocate more crude because His Excellency will rather have less crude, but having individuals in the society not suffer than have more crude and have them continue to suffer.
“We are going to put a new model to enable us increase the pace and actually get measures, as part of the crude that we are entitled to, to apply some of those to bringing in more product so that the role of the NNPC will go back to what it has the capacity to do.
“If we do that, I will expect that over the next two months we should see quite frankly, an elimination of this,” he explained, referring to the petrol scarcity currently being experienced across the oil-rich nation.


“Make Nigerians Smile Again”
He further said that the government’s strategy in tackling the shortfall of supply was to reserve some refined products.
“Whatever is produced in the refinery will not go for sale. We are going to put that into strategic reserve.
“The key problem here is, because there is no reserve, anytime there is a gap in supply it hits us,” he stated.
The President is said to have tasked the workers in the oil sector to be agents of change and to ensure they take change on its head and make it happen.


The National President of Nigeria Union of Petroleum and Natural Gas (NUPENG), Igwe Aghaeze, said they discussed the issue of the petrol scarcity and the Petroleum Industry Bill at the meeting.
“We discussed how the oil sector will bounce back economically and make Nigerians smile again.
“Keenly we talked much more on the issues of the corruption in the oil and gas sector vis-a-vis the product allocations which we (NUPENG and PENGASSAN)  are trying to do together.


He said that the President assured the unions that they would be part of the restructuring that would be made to address the issues and ensure that scarcity is out of Nigeria’s fuel service stations.
On his part, the President of Petroleum and Natural Gas‎ Senior Staff Association of Nigeria (PENGASSAN), Olabode Johnson, also recognised the fact that the President was not new in the sector and expressed optimism that he was capable of introducing the magic wand that would change the ugly situation.


Nigerians will be watching and waiting to see the queues disappear completely in a country said to be one of the biggest oil producers in the world.
It is only then that they will believe that the meeting had a fruitful deliberation.

World Bank Says Abacha’s Loot Is Too Huge To Handle

The World Bank has said it would take a lot of time to give a comprehensive response on how the late Sani Abacha’s loot was disbursed.
World Bank’s president Jim Yong Kim (left) needs a lot of time to give comprehensive information on Sani Abacha’s huge loot.
Following a request by the Socio-Economic Rights and Accountability Project (SERAP), the World Bank representative responded that the Bank requires additional time to provide comprehensive information on the spending of recovered funds looted by the late military ruler Sani Abacha during his reign in Nigeria.
“In response to your request we would like to inform you that we are still considering your request and need additional time to provide you with a more comprehensive response, ” told Ann May of the World Bank’s Access to Information Team in the letter dated October 15.

She informed SERAP representatives that though in most cases it takes up to twenty working days to respond the request for information, under special circumstances it can take much more time. The special circumstances include the complex and voluminous requests that usually require consultation with the World Bank’s board of executive directors as well as the internal units and external parties.

“ We regret any inconvenience that a delay may cause you and, if one does occur, will aim to minimize it as much as possible, ” concluded Ann Mayin the letter, adding that the World Bank “ will notify you promptly of any updates to the status of your request.”

The estimates of the funds stolen by the late military ruler Sani Abacha during the period of his reign from 1993 to 1998 vary. While it is estimated that the stolen funds make up at least $ 4.3 billion, some experts claim that the sum of the stolen assets is much higher and might be as huge as $ 7 billion. Thus, Abacha, who ruled Nigeria for five years after a 1993 coup, is believed to to be among the ranks of Congo’s Mobutu Sese Seko as one of Africa’s most avaricious looters in power.

Adetokunbo Mumuni, the SERAP’s executive director, speaking on the delays with the initiative to recover Abacha’s loot, told: “ we welcome the Bank’s decision to thoroughly consider the request. This thorough process shows the seriousness the Bank attaches to the request, and will hopefully contribute to a positive outcome that will serve the interest of justice and millions of Nigerians who want to know about disbursement of Abacha loot. ”

SERAP sent its request to Jim Yong Kim, the World Banlk’s president, on 21 September, 2015, asking him to release documents relating to disbursement of recovered funds stolen by late General Abacha.
The SERAP’s request stated: “ The World Bank has been involved in overseeing the transfer, disbursement, spending of recovered funds from General Abacha, and other similar initiatives to repatriate stolen funds to Nigeria. As such, the World Bank is not a neutral party in this matter. ”
On September 7 the Socio-Economic Rights and Accountability Project (SERAP) has called on President Muhammadu Buhari to investigate the involvement of the World Bank in the repatriation, management and spending of stolen funds.
The SERAP executive director Adetokunbo Mumuni stated that over $2billion stolen by the late head of state, General Sani Abacha, was repatriated back to Nigeria during the General Abdulsalam Abubakar and former president Olusegun Obasanjo administrations.
A year ago two senior lawyers from the United States of America have asked the Attorney-General of the country, Eric Holder Jr., to without delay repatriate the $458m assets stolen by a former Head of State, Gen. Sani Abacha, and his accomplices to Nigeria.
A global civil society organisation leading the fight against corruption, Transparent International, has made it known that the Abacha regime embezzled between $3 billion and $5 billion of public funds. The Justice Department suit filed in November 2013 saying that Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted money from the Nigerian government.
They laundered funds by buying bonds backed by the United States using U.S. financial institutions, prosecutors said. The assets were held in banks that included Deutsche Bank AG, HSBC Holdings Plc and Banque SBA, according to the lawsuit.
Last year, after a 16-year legal battle, Nigeria recovered from Liechtenstein $228 million stolen by Abacha and his associates. Besides that, Nigeria had recovered about $1.3 billion of Abacha’s money from various European jurisdictions.

Obasanjo Reveals 5 Reasons Why Africa’s Economy Is Not Stable

Former Nigerian president, Chief Olusegun Obasanjo, has revealed 5 reasons why Africa’s economy is not stable.

Obasanjo who stated this while speaking earlier today, October 8, 2015 at the 5 th Africa governance, leadership and management convention, in Kenya, added that another threat to human security in Africa is the rising incidence of joblessness among African youth.

“Today, Africa’s private sector still contends with limited and sometimes distortionary public sector regulatory framework; a generally restrictive business environment; poor infrastructure; serious skills shortages and mismatches, and difficulties of access to finance by small businesses,” Obasanjo said during his speech.

He also said economies in sub-Saharan Africa are
experiencing rapid growth, averaging 4.6 per cent in GDP growth in 2015 and poised to reach 5.4 by 2016. "And IMF has indicated that future prospects for many African Countries are better with low oil prices. The private sector already generates two-thirds of Africa’s investment, three-quarters of its economic output, and
nine-tenth of its formal and informal employment.

“Africa has also demonstrated considerable resilience during the recession that began in 2008, and Africa is now strongly hopeful about the future. This is possible because previous efforts at reform had engendered more sustainable fiscal positions.”

Obasanjo also suggested a critical factor responsible for Boko Haram insurgency that has plagued the Northeast area of the nation. His remarks comes just hours after Boko Haram suspects reportedly attacked two mosques in Gubio town of Borno state killing scores of people.

Naira Falls Against The Dollar Again

The naira has fallen against the US dollar at the parallel market again, it has been revealed.

According to Vanguard reports, the naira on Monday further depreciated against the dollar at the parallel market and lost N1.50 to the dollar as it was traded at N225.5 to the dollar at the parallel market on Monday afternoon.

1000 naira fake notes are still circulating in Borno state The report claimed that this is in sharp
contrast to the N224/dollar recorded last Friday.

The official interbank rate also reportedly dropped by 0.05 to N196.95 to the dollar, while traders at the parallel market attributed the depreciation of the naira at the market to insufficient quantity of dollar at the market.

Recall that the Central Bank of Nigeria (CBN) recently explained that its efforts to save naira’s exchange rate from dive has to completely unexpected catastrophic results for Nigerian businesses.

Reasons why The Nigerian Economy is going down

Charles Onunaiju, the director of China Cultural Centre, has stated that Nigeria can diversify its economy by using the “China model”, which involves growth of local industries and
increasing their productivity.

He said that the Nigerian economy is hurting because economic
experts who served under various governments failed to
diversify the economy.
In Abuja at a “Roundtable on Nigeria-China Economic
Relations” the director stated that imported economic
experts, including the immediate past minister of economy,
Ngozi Okonjo-Iweala, who promised to diversify the economy,
failed to do so.
Onunaiju also added that Nigeria could learn a lot from China,
which diversified its economy and has grown to become one of
the largest in the world. The CCC director said it was not enough for Nigerians to import finished products from China, But they should also export quality local products to the Asian
economic giant to earn foreign exchange and stimulate the nation’s economy.

Charles Onunaiju said: “Nigeria should share notes with China;
it is not enough to import goods and products from China.

Every administration had been talking about changing the economy from a mono-economy which is dependent on oil to a diversified economy, but nothing had been done so far.
     Even our super economic minister who was plucked from the World Bank and that was expected to diversify the economy did not do so. Though there are concerns about the global economy, but China economic potential is still strong.”
He stressed that China offered an opportunity to the world that should be seized by those who are ready, noting that Africa could gain from partnering with the Asian economic giant.

Naira Rises As Banks Reject Dollars

  The naira continues to rise against the US dollar this
week as Deposit Money Banks reject cash deposit of
foreign currencies, The Punch reports.
The source notes that the Nigeria’s currency had
appreciated against the dollar from 245 to 220 at the
parallel market last week after banks started denying their
customers opportunity to make cash deposits of dollar,
pound and euro into their domiciliary accounts.

On Sunday, an anonymous forex trader stated: “We expect
the naira to appreciate further this week at the parallel
market. Banks have flooded the market with dollars and
other foreign currencies. This is making the naira to
appreciate. There is still a huge stock of dollars out there
that the banks will be pushing into the parallel market this
week.”
Alhaji Aminu Gwadabe who is the president of Bureau De
Change Operators said that large amount of dollars in the
market would make the naira to appreciate further at the
parallel market this week.
Last week, Nigerian banks announced that they would no
longer collect cash deposits into domiciliary accounts.
Fidelity Bank Plc explained that the policy came from the
Central Bank of Nigeria (CBN) and it was only a temporary
measure to curb speculative activities.
 Ladi Balogun, the CEO of First City Monument Bank also
stated: “Banks no longer accept dollar cash due to large
speculation on the currency. The lenders would continue to
receive dollar transfers from other banks.”
Godwin Emefiele, the Central Bank of Nigeria (CBN)
governor, announced that the naira was appropriately
priced at its current level of 197 to the dollar on the
interbank market.
Over the past year the naira lost about 15 % against the
dollar with an official devaluation in November.
It also should be noted that after the CBN limited importers’
access to dollars in order to save the external reserves the
currency had weakened on the parallel market, falling as
low as 245..

JUST IN! Nigerian Woman Appointed As World Bank Vice President And Treasurer

World Bank has announced the appointment of Ms. Arunma Oteh as the vice president and treasurer of the World Bank, Naij.com has gathered.
According to a report by Global Village Extra, president of the World Bank, Jim Yong Kim, expressed excitement over the recent development, stating that Ms. Oteh was appointed based on her credentials with the Securities and Exchange Commission of Nigeria.

Arunma Oteh is the newly appointed vice president of the world bank

A press statement made available to the US-based online medium reads: “I am pleased to announce the appointment of Arunma Oteh as VP and Treasurer of the World Bank.
“Arunma, a Nigerian national, was most recently the Director General of the Securities and Exchange Commission of Nigeria. Appointed to a five-year term by the President of Nigeria in 2010, she led the transformation of the country’s capital markets industry into a major global presence.
“She was a member of the Board of the International Organization of Securities Commissions (IOSCO) and the Chairperson of the Africa Middle East Regional Committee of IOSCO.
“Prior to joining the Securities and Exchange Commission (SEC) of Nigeria, Arunma was Group Vice President, Corporate Services, at the African Development Bank Group (AfDB). In this role she oversaw a number of departments, including human resources, information and communications technology, and institutional procurement.
“From 2001 to 2006 she held the role of AfDB Group Treasurer, where she led AfDB’s fundraising and capital market activities across the world. Earlier roles at the AfDB, which she joined in 1992, included trading room management, investment portfolio coverage, and public sector lending. She also held other positions in capital markets and lending during the course of her career at the AfDB. Arunma began her career in 1985 at Centre Point, where she executed debt and equity offerings in the Nigerian capital markets.
“She earned her Bachelor of Science in Computer Science from the University of Nigeria and her Masters of Business Administration from Harvard University.

“As VP and Treasurer, Arunma will manage and lead a large and diverse team responsible for managing more than $150 billion in assets. Her top priorities will be to: (i) maintain the World Bank’s global reputation as a prudent and innovative borrower, investor and risk manager; (ii) manage an extensive client advisory, transaction and asset management business for the Bank; (iii) engage, in her capacity as one of the World Bank’s key representatives, with outside stakeholders including global private sector financial institutions, the financial media and the sovereign debt and reserve managers in client countries, as well as ratings agencies; and (iv) collaborate extensively with the Finance Partners throughout the WBG, including with IFC and MIGA, expanding shared approaches, in particular around innovative financing for development and for key new projects.
“Ms. Oteh was selected to this position through an international competitive search. Her appointment is effective on September 28, 2015.”
Recall that Mrs Oby Ezekwesili, the convener of the famous #BringBackOurGirls movement to rescue the abducted Chibok Secondary School girls, was in 2007, appointed as the vice president of the World Bank for Africa.