POLITICS
Refineries Probe: Reps Kick as Kyari Keeps Mum on Oil Swap Deal
By Joseph Amah, Abuja
The Group Managing Director of the Nigerian National Petroleum Company Limited, Mele Kyari, on Tuesday, finally appeared before the House of Representatives’ Ad Hoc Committee on the State of Refineries in Nigeria.
However, Kyari could not answer some of the critical questions posed to him by members of the committee, urging the lawmakers to allow him to come back with documents containing the details.
The details sought by the lawmakers include the actual cost of rehabilitating the refineries, especially the Port Harcourt Refining Company.
This is just as the committee and the GMD failed to disclose the quantity of crude being taken from Nigeria and the volume of petroleum products being delivered to the country on a daily basis, under the Direct Sale Direct Purchase or oil swap deal with firms.In his presentation, Kyari said, “We recognise that today, none of our refineries are operating for a very obvious reason that I am sure, through the work of this committee, you will find out why they are not operating today. We will hide nothing from you. We will also tell you where we are as we speak.
“Needless is to say that the refineries were essentially not properly managed over time, not just today but in the last 20 to 25 years. The turnaround maintenance processes were clearly mismanaged over time. We clearly admit that those turnaround maintenances were not properly done in the past, leading to where we are.
“When we took over, it is very obvious that what you are dealing with is not turnaround maintenance; you are dealing with a total rehabilitation. The refineries were clearly in situations where ordinary turnaround maintenance would not solve the problem. We have degradation of a monumental proportion that we met. And of course, the only way you can do this is to conduct full turnaround maintenance.”
Kyari also noted that the refineries were shut down as the country was running at a loss using them. He also said the NNPC shopped for “the best of class” contractors to rehabilitate the facilities. He said, “We did not abridge any process. We took through all the necessary processes of governance to make sure that we have the right contractor in place. And I am happy today that at the end of that exercise that we have put in place, the Federal Executive Council has approved a contractor for the Port Harcourt refinery, the Kaduna refinery and the Warri refinery.
“Even when you rehabilitate the refineries, you must have the pipelines. As we speak now, the pipeline from Escravos, which will feed the Warri refinery and ultimately the Kaduna refinery cannot carry the two refineries as we speak now. This is for many reasons; one is the act of vandals.
“Needless to say that the rehabilitation work must also be complemented with the replacement of the pipeline network. We are also working on this. It is a very critical component of what we are doing.”
The GMD also noted that the rehabilitation projects would be financed by banks, different from the previous efforts which were frustrated by funding challenges.A member of the committee, Olanrewaju Edun, however, said Kyari did not speak to the document the NNPC presented to the panel, noting that what the GMD said was not captured in the written presentation.
Responding, Kyari said the committee should adopt his oral presentation also. “We have nothing to hide, that is why I said everything I could remember,” he said. Other members of the committee, however, insisted on getting the details demanded from the NNPC.
Another member, Ayokunle Isiaka, asked if the NNPC was changing the entire structure and systems of the refineries or changing some specific parts. He demanded an asset valuation report on the refineries. He also asked how refined products would be transported from the refineries when they become functional to the depots for onward distribution.
Chairman of the committee, Ganiyu Johnson also said, “It is very important for you to tell us the actual cost of this (Port Harcourt refinery rehabilitation) contract. If there are fluctuations (variations), the original contract sum, we should know.”
Responding, the GMD said, “Chairman, I didn’t say I did not have answers to all the questions but it is very obvious that we did not respond to all the questions – the requests – that this honourable committee asked us to do. If we had done so, many of the questions that were asked today wouldn’t have come up in the first instance. That is why I said give me the grace so that I can respond to all the submissions that you have requested and I would clearly come back to you as you directed.
“Secondly, we know the contract sum. We are hiding nothing from you. There is no variation on this contract. If you look at the document I submitted to you, you will see the approval is for $1.559bn including VAT. So, there is no question that we do not have an answer to. I don’t have all the details; I will not be able to have all the details, definitely.”
Johnson also asked, “What is the quantity of crude oil given out per day under the DSDP programme to refiners outside this country? Two, what is the quantity of PMS received per day in exchange for the quantity of crude oil swap?”
Responding, Kyari said, “Definitely, these are very specific numbers and there is no way I can give you a number on these, at this moment. First, let me tell you the principle around this. I know today, how much PMS we have in the country. I know we have up to 2.8 billion litres of PMS in the country at this moment, sufficient to keep us for 47 days if we don’t import.
“This is the basic information that I know. And all the PMS don’t come in equal volumes every day. Some days you can receive cargo and for three days may not receive cargo, and you can also receive up to four cargoes in a day. This is market-determined, supply-determined; you cannot give the volume for every day but we have data for every volume of PMS.”
He added, “I have nothing to hide from this committee or any committee of the National Assembly. I have the responsibility to disclose everything I know to you and to Nigerians. I have the responsibility, by duty and obligation, to make sure that I don’t hold back any information. “I do not know everything and of course, no one does. Everything that I know, I will tell you.”
Dr Asue Ighodalo, the Peoples Democratic Party (PDP) candidate in the Sept. 21 governorship election, has advised the party to close ranks and strategise to permanently defeat Nigeria’s development nemesis.
Ighodalo gave the advice at a meeting hosted by former Minister for Solid Minerals, Sen.
Odion Ugbesia, leaders and stakeholders of the PDP in Akoko Edo Local Government Area of the state on Tuesday in Benin.He said “PDP is the only party that can rescue this nation because we have capable members with the right vision, focus and patriotic zeal to reposition Nigeria “.
While thanking the party’s leadership, he commended them for the honest analytical report and suggestions on ways and means of moving the party forward and resolving other internal issues.
He said: “PDP remains the only party since 1999 that is still standing, while other parties have since either collapsed, fragmented or become amalgamation of strange, odd and unhealthy bedfellows, a contraption of complicated forced union.”
Ighodalo advised on the need for the party to close ranks and strategise, to permanently defeat Nigeria’s development nemesis.
Ighodalo said that verifiable data showed that PDP was far ahead of other parties, saying “the party’s campaign structure will soon be unveiled”
He advised that square pegs be put in square holes, to guarantee total electoral victory and warned that sentiments should not be the basis for party appointments.
The candidate also emphasised the need to accommodate women and the youth in the campaign structure, “including the Obedient Movement.”
Earlier, Chief Olu Fashanu who spoke for the forum, said the meeting was convened to deliberate on how to ensure total victory for the party’s candidate and also map out other campaigns in Akoko-Edo.
Fashanu said the gathering was to avail the leaders of thought to productively engage and interact with Ighodalo, to ensure his victory by maximising the potentials of the party’s structure for the Sept. 21 election.
He said the party’s commanding political structure, using the strength, weaknesses, opportunities and threats analysis, would be brought to bear in winning the local government for the party.
He said the goodwill and opportunities necessitated the need to proactively build and develop strong campaign teams with experienced political leadership at ward levels in Akoko-Edo and beyond.
This, he pointed out, would neutralise voters’ intimidation being orchestrated by the so-called ‘federal might’. (NAN)
A chieftain of the APC in Ondo State, Mr Femi Adekanmbi, says destiny has placed Gov. Lucky Aiyedatiwa as a governorship aspirant over others jostling for the seat in the state.
Adekanmbi, in a statement on Tuesday in Akure, said the governor was ordained to lead the state, especially at this crucial time.
The chieftain who pledged support, promised to work tirelessly for Aiyedatiwa in the party’s governorship primaries and the poll.
“We have received the signal to give Aiyedatiwa absolute support for both the primaries and the main gubernatorial election.
“Other aspirants are eminently qualified to lead the state as the governor but destiny has placed Aiyedatiwa ahead of them.
“Divine providence has made Aiyedatiwa the governor of Ondo state, and there’s nothing anyone can do about it.
“The governor is doing well, and I am giving him my support to secure a fresh mandate to enable him to continue his development strides.
“I’ve directed my team across the state to go all out and work for him,” he stated.
He appealed to other aspirants not to see the party’s primary election as a war but rather, as a family affair where only one person would be elected as its candidate.
Adekanmbi urged all party members to stop the campaign of hatred presently going on among supporters of the governorship aspirants.
“We should not be seen fighting one another . This primary election should not divide us.
“I also urge Aiyedatiwa to be cautious of those claiming to love him now.
“Those who have suddenly become his accidental supporters now are those that wanted him impeached before the death of former Gov. Oluwarotimi Akeredolu.
“I urge the governor to continue the good works started by him, and lay down lasting legacy for himself in the state with developmental projects and programmes,” he said. ( NAN)
The House of Representatives Public Accounts Committee, has issued a 21-day ultimatum to the Securities and Exchange Commission (SEC) and Fiscal Responsibility Commission (FRC) to reconcile the N45 billion unremitted operating surplus recorded from 2007 to 2021.
Chairman of the committee, Rep.
Bamidele Salam, gave the directive on Tuesday in Abuja, during the committee’s public hearing on leakages of government revenue.The FRC dragged SEC before the committee for not responding to its report issued in 2022, where N45.
013 computed liability of unremitted funds was recorded against the SEC.“We have written SEC on December 20, 2022 intimating the commission of our computed liability for the period 2007 to 2021 and the said liability amounted to N45,013,010,229 only.
“Up till now, we have not received any response from them, so as far as we are concerned they have accepted the liability and that is what we have recorded against the commission,” Mr Bello Aliyu, a representative of FRC, told the committee.
He added that between the period and now, the SEC had not made any attempt to reconcile the figure as contained in the report.
Aliyu said by law, balance of any operating surplus should be paid into the consolidated revenue fund of the Federal Government in less than one month of the statutory deadline of publishing any corporation account.
Mr Lamido Yuguda, the Director General, SEC, while reacting to the allegation, however, said that the commission had reconciled its operating surplus with the Office of the Accountant General of the Federation(OAGF).
“I think if the FRC had actually done a little more work, they would have really seen from the OAGF all the efforts that we have made to reconcile the surplus figure from 2007 when FRC came into being,” Yuguda told the committee.
In his comment, the committee chairman said the FRC was empowered by law to ensure that all agencies and government corporations listed in its enabling Act behave responsibly with regards to remittances and management of their revenues.
“I don’t know why SEC is more comfortable with the Accountant General office and I don’t want to insinuate anything, but I want to assure the FRC that from now on, all that will stop.
”We are going to ensure that all agencies make FRC the major body of government that should ensure compliance with the provision of the act,” Salam said. (NAN)
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