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NNPC Ltd and challenges in the oil sector: Banire misconceives the facts, promotes biased views

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By Olufemi Soneye

 

 

In the face of the challenges in the oil sector, particularly the current tightness in the supply of petrol, it has become fashionable to blame the national oil company, the Nigerian National Petroleum Company Ltd (NNPC Ltd), for everything. Last week, it was Prof. Pat Utomi who railed and fumed at the NNPC Ltd calling it one of the most opaque and unreliable companies in the world. Before then, The Punch had published an editorial in which it described the NNPC Ltd as a danger to Nigeria. The latest of these vitriolic attacks is by Dr. Muiz Banire, a Senior Advocate of Nigeria (SAN), and former Commissioner of Transport and Environment, Lagos State, who contended in his column in The Sun that NNPC Ltd is the black hole of Nigeria.

Considering all that is going on in the petroleum sector, it would appear justifiable to call out the NNPC Ltd as some people have been doing in recent times. But most of the diatribes have been based on sentiments that are not rooted in facts. Railing at the NNPC Ltd without a thorough understanding of the issues that threw up the current challenges in the oil sector, as most of the commentators have been doing, will yield no good for the country. At this critical intersection, the task for all well-meaning Nigerians should be how to find lasting solutions to the mischiefs in the oil sector and not to look for scapegoats, as Dr. Banire has done.

According to Banire, Nigeria has been experiencing fuel scarcity since 1973 on the back of fuel subsidy and the NNPC Ltd is responsible for it. The assertion that the NNPC is responsible for this state of affairs is moot. The policy of fuel subsidy is not the preserve of the NNPC. Various administrations over the years have thought it wise to subsidize the cost of petroleum products for citizens. They came up with different methods of doing that. The role of NNPC Ltd has been to implement the policy as decided by government. At a point when the various administrations felt that the fuel subsidy policy had become a burden that should be done away with, they made it known. NNPC Ltd, as the national oil company, implemented it. This was the case in 2012 when the nation went up in protest against the decision of government to remove fuel subsidy. The same scenario repeated itself in 2019 when the then administration came up with the policy to remove fuel subsidy. NNPC Ltd is neither responsible for the policy of fuel subsidy or its removal.

It is very unfortunate that Dr Banire would descend to the level of castigating the NNPC Ltd for the fuel subsidy debacle that has plagued Nigeria and on the basis of that label the Company that has over the years patriotically borne the brunt of the fuel subsidy policy as a black hole. His analysis fails to take into consideration the huge challenges of products smuggling, pipeline vandalism, and crude oil theft that the company contends with daily, and in spite of which it manages to keep the nation going with crude oil production and fuel supply.

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Barely three months after the Federal Government announced the removal of fuel subsidy, it became difficult for both major and independent petroleum products marketers to import petrol because of the foreign exchange policy. They could not source forex to continue to bring in petrol. Since then, NNPC Ltd has been importing the product and selling at almost half price in keeping with the provisions of the Petroleum Industry Act (PIA) which designates it as the fuel supplier of last resort. Yes, there have been supply hiccups here and there because of the financial constraints imposed by the transaction. Just imagine the hardship the nation would have suffered if NNPC Ltd was not there to play the role of supplier of last resort! NNPC Ltd is the reason Nigerians continue to enjoy lower pump price for petrol than they would ordinarily pay for the product. How then does such a company become a black hole?

For Banire, NNPC Ltd is responsible for everything that is wrong in the oil sector. He even blames smuggling and the unauthorized sale of petroleum products to street urchins who in turn trade it in the black market in jerrycans on the NNPC Ltd. But does he have evidence that the unpatriotic marketers who divert petroleum products meant for local consumption to neighbouring countries are staff members or representatives of the NNPC Ltd? Does he have any shred of evidence that the boys who sell fuel in the black market in jerrycans source their products from NNPC Retail Ltd.’s stations? The least one would expect from a lawyer of Banire’s standing is a fact-based and not speculative commentary.

The NNPC Ltd has turned a corner since 2018 when it began to prepare for the enactment of the Petroleum Industry Act, which was eventually passed into law in 2021. Apart from deepening its commitment to accountability and transparency by regularly publishing its audited annual financial statements, it has become a profitable company with undisputable growth trajectory. It recorded an unprecedented N3.29 trillion profit in its recently released 2023 audited financial report. But this fact is conveniently lost on Dr. Banire who insists that he has not seen any difference between NNPC as corporation and the commercially focused NNPC Ltd that was incorporated in 2021. Fortunately, it does not take Banire to see or believe that NNPC Ltd, as presently constituted, has broken away from its debilitating past for it to be true. He is at home with the legal maxim: “Res Ipsa Loquitur”, meaning the facts speak for themselves.

While one cannot dissuade people like Dr. Banire from criticizing the NNPC Ltd, they must refrain from standing facts on their heads all because they want to be populist or be in the good books of the public. Besides, the Banires of this world should also not be intentionally mischievous in their assertion that the NNPC Limited is exercising an overbearing influence on the regulators. One expects that given the level of their educational accomplishments, they should have the capacity to research very well into the subject matters of their editorial interventions so that they do not argue, assert and progress in error(s). In the corollary, it is either Banire is mischievous or ignorant about the assertion he made in his write-up that the NNPC influences the NUPRC and the NMDPRA who are the two independent regulators. If he lacks a clear knowledge of the workings of the sector, he should be humble enough to seek clarifications so he could be well informed. NNPC Limited is an operator-with a number of refineries under its purview. The Port Harcourt refinery will soon take off. As a matter of fact, the refineries under the NNPC are operators and are therefore subject to the regulatory framework and regulations set out by the NMDPRA. The operator(s) cannot, therefore, exercise overbearing influence on the regulators. This is commonsensically impossible. Pure and simple.

Soneye, is the Chief Corporate Communications Officer of the NNPC Ltd

Opinion

DSP Barau: A Resilient Senator With Advanced Mind

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Senator Barau

 

By Abba Anwar

Maintaining resilience attitude while making reference to the Deputy Senate President, Barau Jibrin, is neither accidental nor coincidence. This, without walling out any challenges.

When you take him and x-ray his unmatched and uncontested efforts in human development via creation of corridors for our youth, to have access to modern knowledge and skills, you can accept the universal truth that DSP Barau is, but a political messiah. A quintessential political leader of great substance.

Come to think of it. Apart from his singular effort in bringing a Campus of National Open University of Nigeria (NOUN) to his constituency, Kano North, years back, establishment of Federal Polytechnic, Kabo in 2022, before he even became Deputy Senate President, and the most recent effort he put in upgrading the status of Federal College of Education, Kano (FCE), to the status of Federal University of Education, Kano, among many other institutional development, his unparalleled commitment in the development of our youth, is indelible, and down-to-earth.

It isn’t in the shopping list of this piece, to view Barau from the standpoint of his political engagement, as one of the leading politicians from Kano, but rather what we are interested in, is his attachment with the life of our future leaders, the youth.

His struggle for supremacy alongside other politicians in Kano, Northern Nigeria or Nigeria as a whole, is not the concern of this write-up. His committed concern in the repositioning of our people through academic pursuit, with carefully selected fields of study, is what matters most at this juncture.

Just few days back, the Distinguished Senator sent 70 students abroad to study Artificial Intelligence, Cybersecurity and Robotic Science. At Postgraduate level. Where 65 students are males and 5 females.

Being perplexed with this life changing opportunity, in the form of Barau Scholarship Scheme, I called the effort and the process as Barau Community of Modern Scholars. Modern because, looking at the Courses of study, you may not need further explanation to tell you how this gentleman is preparing these young people against global challenges. And eventually preparing our state and the North, or Nigeria by extension, against future global face-offs.

This is visionary leadership, with foresight, exactitude, enduring engagement, meaningful productivity, patriotism, unequal fruition, increasing care, independent political will and unwavering support in all circumstances. But any expression short of this, is face-palming exercise.

Another interesting development and main reason why I have been consistent that Senator Barau’s genuine intervention in the development of our people and communities, goes beyond Kano or North, but Nigeria in general, is his recent call for applications from our youth for
Domestic Postgraduate Scholarship Programme, 2025, under the auspices of
Barau I. Jibrin Foundation (BIJF).

Where 300 students will be sponsored for 2025/2026 Academic Session at Postgraduate Level. Even the choice of institutions under this scholarship is not only a sign of seriousness, but genuine engagement for national development.

The institutions are Bayero University, Kano, Ahmadu Bello University, Zaria, University of Lagos, University of Nigeria, Nsukka, University of Ibadan and Obafemi Awolowo University, Ile-Ife. While the choice of these institutions tells us or rather speak to all, directly, what education means to the Deputy Senate President, it further gives us the clearer picture that Barau is, but, an embodiment of human development and societal growth and development, without any hesitation.

I think the entire gamut of Barau’s engagement under the scholarship schemes are the genuine human spirit in him, feeling of collective responsibility without recourse to political opponents, deeper interest in the future of our dear nation, searching for lasting solution to youth restiveness and fighting insecurity from the roots.

Just have a look at the chosen courses of study for the domestic scholarship scheme. All at the Masters level. These are Artificial Intelligence, Cybersecurity, Robotics Technology, Data Science, Software Development, Information Technology, Mineral Exploration, Hydrogeology and Environmental Geology, Oil and Gas Operations, Applied Geophysics, Metallurgical and Material Engineering, Climate Change Management, Mechatronic and Intelligence System.

Modern and global fields of study. Which can only be supported and promoted by advanced minds.

What is most fascinating under this scholarships scheme is how the process started as well as the procedures to be followed for successful take-off and implementation. I learned that, all resources to be expended under this 300 students scholarship, are kept under lock and key. Meaning they are available and ready for disbursement to appropriate quarters and successful candidates.

This scientific arrangement, I can say, tells much about the quality and how qualified are the individuals and bodies working for the Senator on this. Starting from his Chief of Staff, to all others. When you were rightly briefed about it, you may begin to wonder, whether Barau is also working with invisible elements (laughter).

His clear understanding of Malam Aminu Kano’s philosophical approach of man as the centre of development, helps him much in critically investing in our people.

To borrow a leaf from Murtala Sule Garo, Deputy Governorship Candidate of APC during 2023 election, in Kano, when he recently called on Kano political leaders, especially former governors, to kindly put heads together to purposely move the state forward, I therefore call on our politicians in the state, to kindly follow suit, irrespective of political leaning.

Well, Senator Kawu Sumaila of Kano South and Hon Abubakar Bichi, representative of Bichi Federal Constituency, in the House of Representatives, have already gone far in this direction. Kudos to them!

Anwar, former Chief Press Secretary to the former Governor of Kano State, Dr Abdullahi Umar Ganduje CON. And can be reached at fatimanbaba1@gmail.com

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Opinion

Appeal’s decision is a significant victory for Sanusi-Ibrahim Sheme

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Ibrahim Sheme

 

The Court of Appeal has invalidated the ruling of the Federal High Court against Malam Muhammadu Sanusi, allowing him to remain as the Emir of Kano. The court has directed the High Court to reassign the case to another judge for a re-trial, a move seen as more favorable to Sanusi than to Alhaji Aminu Ado Bayero.

In a detailed analysis, seasoned journalist Ibrahim Sheme argues that the Court of Appeal’s decision is a significant victory for Sanusi. “The Court of Appeal has not removed Malam Muhammadu Sanusi but invalidated the ruling of the Federal High Court against him. So he stays put as the Emir of Kano,” Sheme wrote.

Sheme points out that the Court of Appeal’s directive for a re-trial by another judge, under the practical control of the Kano State government, suggests a likely favorable outcome for Sanusi. “The Court of Appeal has merely asked the High Court to reassign the case to another judge and conduct a re-trial. This is a court that is, in practical sense, under the control of the Kano State government. What do you think the outcome will be?” he questioned.

The journalist highlights the contrasting reactions to the judgment, noting that Sanusi’s supporters celebrated the decision, while there was no visible celebration from Bayero’s camp. “Sanusi even issued a video from Ƙofar Kudu thanking the Almighty God for his victory and asking his supporters to remain calm and cool. Did you see the other party celebrating?” Sheme observed.

Sheme asserts that Sanusi is unlikely to be removed by a court, suggesting that only another government fiat could achieve such a result. “It is my considered view that Malam Sanusi will never be removed by a court. He could only be removed by another government fiat if that would ever happen again in future,” he stated.

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Reflecting on historical precedents, Sheme notes that emirs from various regions, including Gwandu, Sokoto, Muri, and Kano, were removed by civilian or military politicians, not by courts. “Recall that emirs from Gwandu (Jokolo) to Sokoto (Dasuki) to Muri (Abba) to Kano (Sanusi I and Sanusi II), etc., were not removed by the courts but by civilian or military politicians,” he wrote.

Sheme concludes that court cases related to chieftaincy matters often result in confusion and financial gain for lawyers, rather than meaningful resolutions. “All these court cases are wishful abracadabra that end up confusing the common follower, knocking the heads of social media commentators, and putting cool money in the deep pockets of lawyers and other beneficiaries while wasting our time and browsing data,” he remarked.

 

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Opinion

Badaru Abubakar: A towering figure with unwavering influence in Jigawa’s politics

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By Jameel Ahmed, PhD

It is both laughable and annoying how some few individuals think that His Excellency Alhaji Muhammad Badaru Abubakar, former Jigawa State Governor and current minister of Defence, is losing relevance in the politics of the state or that his influence and grip on the All Progressives Congress (APC) is waning. Having this insinuation is akin to thinking that a mountain can crumble by a mere hit of a worn-out hammer.

How would you, as a sane person, surmise that a figure as influential and powerful as Badaru can lose relevance in the politics of Jigawa State! As a two-term Jigawa Governor, Badaru not only redefined the politics of the state but also gave essence to governance, transforming it from a mundane routine to a purpose-driven and promising endeavour that truly served the people. Astute and empathetic that he was (and still is), he enlivened the spirit of the poor by taking social amenities to them, thereby placing the state on a promising trajectory of sustainable development.

In what appeared to be a digression from what most politicians considered as norm, Badaru, on assumption of office, vowed to complete the projects initiated by his predecessor. And in a manner that symbolised “walking the talk”, he completed all the projects and initiated others and saw them to the finishing line before the expiration of his tenure. When many would luxuriate on the laps of power and get intoxicated by its grandeur, my Boss remained focus, determined and committed to the welfare of the good people of Jigawa State.

As his loyalist and staunch supporter, one of the numerous lessons I have learnt from him is that of speaking less but doing much. When he promises, rest assured that he has it all planned and that he will fulfill the promise. But here, one wouldn’t deny the fallibility of humans, after all it is an inherent ‘trait’ created in man. But comparatively speaking, Badaru has, as a Governor, proven his worth, and still doing ditto as Nigeria’s Minister of Defence. We are all living witnesses to how he is straining his nerves in securing the country and giving hopes to Nigerians.

His government, all-inclusive that it was, also carried the youths along. It was during his days as the number of citizen of Jigawa that the state witnessed a sharp shift from the approach of having the elderly people taking the centre stage and dominating key positions in government. One wouldn’t err to say that Badaru was the first governor in Nigeria to have given special recognition to the youths. From graciously approving key appointments to the youths, he unprecedentedly paved way for them to contest and win chairmanship election across the local government areas of the state.

He believed that by bringing fresh energy into the system of governance, more innovative solutions, creative ideas and effective policies could be harnessed to drive meaningful change and positive development to the good people of the state. And he was right! The youngsters he drew closer to him and availed opportunities to them didn’t disappoint him. For example, the council chairmen that served during his time had all done wonderfully well as they executed key projects that are critical to the development of their respective local government areas.

But alas, their tenures were cut short with the coming of the present Governor who, ironically, was also a protégé of Badaru. After making him a Commissioner and a member of the state executive council, Badaru later chose Umar Namadi to be his running mate during the time he sought reelection. Badaru, unlike many other governors who wouldn’t allow their deputies to do well lest they become strong and powerful, gave all he could to Namadi, extending every favour to him.

Badaru didn’t stop at that, he went further to clear the grounds for Namadi to succeed him, a rare privilege only few can extend to their deputies. He anointed him, stood by his side and gave his all to ensure his (Namadi’s) success at the poll. Every observer and keen follower of political happenings in Jigawa, if they’re sincere, would tell you that the contest, even at the primaries, was a heated one as there were many aspirants eyeing the exalted governorship seat. But with Badaru’s help, Namadi was able to scale through, even when a section of the state’s population was having misgivings about his competence and capacity to deliver.

And that was how the current governor came to be in the position he occupies now. But in a bizarre turn of events, those close to him began to disparage his predecessor, falsely accusing him of not providing adequate support for the current governor. But this is a baseless accusation and a wanton lie; a delusional statement only an ingrate person with myopic mind could make. As a political gladiator and leader of the APC in the state, Badaru could have anointed another person if he had wished, but he chose to repose his trust on Namadi.

Therefore, to think that Baba Badaru’s influence is waning in the politics of Jigawa state is both absurd and naive. He has built a lasting legacy and a strong network of supporters who are still committed to his ideals and steadfast in their allegiance to him. For the records, the three former council Chairmen (namely, Musa Shu’aibu Guri, Abdulkadir Bala Umar T.O., and Uzairu Nadabo) who served during Badaru and recently appointed by governor Namadi were never staunch loyalists of the Defence Minister, neither are they die-hard APC members. They are only political renegades who defected from the People’s Democratic Party (PDP) to the APC for selfish reasons.

Badaru’s support-base, his relevance and influence in the political space of Jigawa State are still intact. The appointment of the three former council Chairmen as Special Advisers to the current governor did not and will not affect Badaru’s influence. These are people who severed ties with Badaru immediately after he left office and never visited him even after his ministerial appointment. How then can one with a clear mind suggest that their appointment as Special Advisers by the current governor would erode the relevance and wane the influence of His Excellency Muhammad Badaru Abubakar?

Baba Badaru is still Jigawa’s political father and the state’s APC leader whose influence is as formidable as it is far-reaching. He brought APC to the state, nursed and nurtured it to a promising height that shaped the political landscape of the state and sheltered the good people of Jigawa. We are with him. Our allegiance is still intact. So is that of the remaining 21 former council Chairmen whose tenures were cut short at a time when they were executing impactful projects to their people, following the footsteps of our hero, a beacon of hope and an astute leader whose political sagacity is the envy of many. More wisdom to you, His Excellency Muhammad Badaru Abubakar!

Jameel Ahmed, PhD
is a Member, Badaru-Support Organisation.

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