The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, recently fielded questions from a select group of editors to clarify a number of issues in the oil and gas
sector ranging from the controversial kerosene subsidy and alleged subsidy scam to the allegation of $10bn expenditure on jet private hire as well as the PwC audit report.

Excerpts.

On Kerosene Subsidy

There was a Presidential directive to withdraw subsidy on kerosene. It is possible that the Minister of Petroleum at that time must have gone to discuss it with the President
and may have been able to convince him on the need to stay action on the directive. I assume that that may have been what happened, that he had a discussion with the
President but he overlooked regularizing in terms of getting him to rescind the order.

So, if anybody flouted the Presidential order then it must have been the Minister of Petroleum at that time. But since the directive was not gazetted and was not announced it was not a law; it was mainly a directive on
paper because there are procedures that a directive must follow to become a law and become implementable. I don’t know why people keep referring to this. But anyway,
another president came and appointed his own
cabinet and moved on.

Now, because of the confusion created by this situation, marketers who, prior to that time, were bringing in kerosene pulled back. The reason was that if they brought in kerosene at the international landing cost and sold at our subsidized rate and didn’t get paid the difference, they would go bankrupt.
So, there was immense confusion and I think it was at that time that the NNPC had to step in and started supplying. That was before I became Minister of Petroleum.

This was where the problem of deduction of subsidy claims at source started. The issue of deduction at source has also been severally argued as to whether NNPC has the right or not to cover all those particular expenses from crude oil sales proceeds.

That was the situation with subsidy at that time. When we came out in January 2012 to try to regularize the system by removing subsidy on petroleum products, of course we all knew what happened.

Efforts to Rid the Subsidy System of Corruption

So, based on all that, subsidy on petroleum products continued up to this point. It is a sore point because, in all honesty, just like PMS, it is a very difficult issue to handle. It becomes even more difficult when revenues are falling because of the price of the barrel.

It is very difficult to pay vast amounts on subsidy which we don’t believe is getting to the actual users, the bottom line users of the PMS, but which is instead making middlemen fat. But we wanted to remove the subsidy. We wanted to deregulate too because we discovered that there was corruption in the subsidy system which had gone so bad that we were not able to move products seamlessly from one point to another.

There was arbitrary price increase in some areas and products were selling above the regulated price thereby making nonsense of the subsidy scheme.

Then there was round tripping, terrible incidence of round tripping. It got to the point that I even had to get the permission of Mr. President to invite the EFCC to come and look at the books and help us figure out what was happening because the level of PMS import we were getting clearly showed that something was wrong.
That was in 2011. At some point the round tripping was extended to kerosene which was being diverted and sold as aviation fuel. Marketers would take their allotment of
kerosene and sell it as aviation fuel which is more expensive. You know the kerosene that is imported into Nigeria is of the same specification as aviation fuel.

That is why it is called Dual Purpose Kerosene (DPK). It was not profitable to import what is really the base level of normal Household Kerosene (HHK). These were some of the problems we had. As I said earlier, we had written to the EFCC and didn’t get any response, that meant no solution. In November 2011, even before we tried deregulating, I removed 92 marketers with one stroke of the pen from the PPPRA books, these were
throughput marketers who didn’t have tank farms, who didn’t have any real investment in the sector.

We took this action because the level of investment into tank farm is so huge that if you can do it you won’t want to get involved in any shady deal. Besides, such investment entitles you to carry out throughput for other marketers and they will pay you to do that.

By the law that is acceptable. That law wasn’t made in our time, it was there before we came in. So it was clear to us that the problem of round tripping was coming from those who didn’t have hard investments in the sector. And there were 92 of them in our books which we flushed out.

That was when I brought in Reginald Stanley to head the PPPRA. The fellow I brought in before didn’t seem to have helped in sorting out the issue at all because it looked like it was getting worse. I asked Stanley to try and reform the petrol importation and subsidy system to bring the subsidy bill down.

I told him that after stabilizing things we could bring some of the throughput marketers back, those who pass certain expectations, because it is in our laws, it is not as if throughput marketing in itself is illegal. So I signed them off, 92 marketers in one day. It was after I dropped them that the level of subsidy dropped significantly.

Strides in Local Content

We have been able to domicile some of the jobs in the sector that used to be carried out overseas within the country thereby creating jobs for many Nigeria youth.

Manufacturing of small parts for the oil and gas sector is now being done in-country which was not the
case before now. It is not just the manufacturing but the quality of the goods is such that we now have prospects of producing for other multinationals outside the country.
This has helped to create a lot of direct jobs over this period of time and hundreds of thousands of indirect jobs. It was a thing of joy for me when I visited places like the
burnt down Okrika Jetty a couple of years ago to commission the products loading arm that was rebuilt only to discover that companies like Lee Engineering which did the construction of the project from A to Z was 100% Nigerian, all the engineers are Nigerians.

We are very proud that this sort of thing could be happening at this point in time. Now, these are major steps in the oil and gas sector because it is highly capital intensive, highly technological. We have been able to achieve this because we understand that until you get the industry down so that it can touch what I consider the real economy, until you begin to commercialize it, oil & gas always seem to be up there, a sort of mysterious
sector for the very wealthy, extremely wealthy.

The multinationals have access to billions and billions of dollars, but we are beginning to pull it down so that ordinary people who can gather together the financial wherewithal can also be players in the sector. Like I said, not all of these are highly capital intensive, there are many other areas that are quiet minor in terms of capital outlay. Many people are coming in now. And this was the intent from the onset: to demystify this sector. On
the Nigerian content side, I think we have done very well and we will continue to try to do even better.

Gas Infrastructure Development

During this period too, we started looking at what we could do to develop our gas resources. We have to pull out gas issues from the PIB and specific gas projects from the Gas Master Plan to implement to fast track gas to power, gas to industry and of course to ensure that value is added to the economy.

Source: www.vanguardngr.com

"It was a thing of joy for me when I visited places like the burnt down Okrika Jetty a couple of years ago to commission the products loading arm that was rebuilt only to discover that companies like Lee Engineering which did the construction of the project from A to Z was 100% Nigerian, all the engineers are Nigerians". Diezani(2015)...



Sure, many Nigerians are getting it right...LOCAL CONTENT POLICY is one the hallmark policies of Jonathan administration whose impact is quite tremendous...

Yes you av.. Y'all demystified the oil sector wit ambidexterous corrupt activities. Shame.

Good

Cruzeiro:
Yes you av.. Y'all demystified the oil sector wit ambidexterous corrupt activities. Shame.

corruption activities u and ya fellow thugs want tinubu to put an end to , tinubu=devil, d devil came to steal(lagos state mony, kill(funsho williams) and to destroy(greed makes d dude wants to scatter southwest). Apc wifout tinubu wld ve bin better. Yoruba youths(tinubus gang) wise up!

OREMUSSANCTUS:
corruption activities u and ya fellow thugs want tinubu to put an end to , tinubu=devil, d devil came to steal(lagos state mony, kill(funsho williams) and to destroy(greed makes d dude wants to scatter southwest). Apc wifout tinubu wld ve bin better. Yoruba youths(tinubus gang) wise up!

Reconstruct ur thoughts in a clear and articulate manner. It is quite easy to guess whom the thug is here.

Cruzeiro:
Yes you av.. Y'all demystified the oil sector wit ambidexterous corrupt activities. Shame.

Can you without rhetorics or any form of ambiguity list out the corrupt areas with solutions as well...
Also, buttress your point with APC solutions to these problems... I am waiting

theVOICE,agabal23,barcanista,Ngwakwe...Can we have an informed discuss on this interview plzzzz

@OP thank you very much. Though I was reading to hear her explanation for the prosecution of subsidy indicted fellows and the N10billion jet hiring by her. However, I have to agree with some of her points especially as they concerns the local content and the problem with the subsidy regime. She also said that government still need to do more to get the benefit to the populace which I entirely agree. The area I'd also have loved to hear is the PIB bill which is begging for help in the Parliament(NASS).

Sadly, we have opposition that has vowed not to even probe the "past", nor have said anything with regards the PIB. They don't even believe in transparent leadership, so we won't know whether they spend N100b on meal alone or N70billion on tooth-pick(in their state level they are against the FOI), pluse the calibre of men in the camp coupled with hypocrisy.

Let us continue to support the government and seek to Change within the PDP.

All I read and see is a failed minister trying to justify her failure with excuses upon excuses.

In a sane clime, this woman can no longer speak in the public given all her stealing of our resources.

barcanista:

Sadly, we have opposition that has vowed not to even probe the "past", nor have said anything with regards the PIB. They don't even believe in transparent leadership, so we won't know whether they spend N100b on meal alone or N70billion on tooth-pick(in their state level they are against the FOI), pluse the calibre of men in the camp coupled with hypocrisy.

Let us continue to support the government and seek to Change within the PDP.

Your obsession with APC, even when not relevant with the topic of discuss is a sign of someone losing his/her sanity just like FFK.

How does the topic have anything to do with the nonsense you've put up there?

barcanista:
@OP thank you very much. Though I was reading to hear her explanation for the prosecution of subsidy indicted fellows and the N10billion jet hiring by her. However, I have to agree with some of her points especially as they concerns the local content and the problem with the subsidy regime. She also said that government still need to do more to get the benefit to the populace which I entirely agree. The area I'd also have loved to hear is the PIB bill which is begging for help in the Parliament(NASS).

Sadly, we have opposition that has vowed not to even probe the "past", nor have said anything with regards the PIB. They don't even believe in transparent leadership, so we won't know whether they spend N100b on meal alone or N70billion on tooth-pick(in their state level they are against the FOI), pluse the calibre of men in the camp coupled with hypocrisy.

Let us continue to support the government and seek to Change within the PDP.

Great, your observations were germane...I have tried without success to know why and what exactly is keeping the PIB in the NASS unending now...

The playing to the gallery and politicizing even damn issue by the opposition won't allow us to even know and see the truth about some salient issues...

On subsidy thieves...I have no information about them but I will search for the report on 10billion jet issue to post it here...She's addressed it recently...

PassingShot:
All I read and see is a failed minister trying to justify her failure with excuses upon excuses.

In a sane clime, this woman can no longer speak in the public given all her stealing of our resources.

Your obsession with APC, even when not relevant with the topic of discuss is a sign of someone losing his/her sanity just like FFK.

How does the topic have anything to do with the nonsense you've put up there?

If all you saw in this interview was failure...it then means that you aren't fit for the sane clime you advocate and won't even recognise same when you see it...

Opposition style of reasoning in Nigeria is obscured and dangerous to our national sustenance...They never see any good neither do they have an alternative solution which is viable constructively... You mustn't be in charge to make a change...Why not manifest that "change" first in your states of dominance before seeking for the centre...charity begins at home bro...

Whynotthetruth:




Great, your observations were germane...I have tried without success to know why and what exactly is keeping the PIB in the NASS unending now...

The playing to the gallery and politicizing even damn issue by the opposition won't allow us to even know and see the truth about some salient issues...

On subsidy thieves...I have no information about them but I will search for the report on 10billion jet issue to post it here...She's addressed it recently...

The opposition in Nigeria is the worst in history of democratic society. The PIB is being held because of "tribalism", partisanship and personal beef with the Minister. The opposition has politicised everything and not just that, their hypocrisy has been superb. My position on the subsidy thieves is that they be brought to justice and made to refund what they fraudulently took.

Whynotthetruth:



If all you saw in this interview was failure...it then means that you aren't fit for the sane clime you advocate and won't even recognise same when you see it...

Opposition style of reasoning in Nigeria is obscured and dangerous to our national sustenance...They never see any good neither do they have an alternative solution which is viable constructively... You mustn't be in charge to make a change...Why not manifest that "change" first in your states of dominance before seeking for the centre...charity begins at home bro...

I laugh at your reasoning.

A minister of petroleum who keeps blaming the occupant and government before her/theirs is not worth listening to because if the immediate occupant before her was that good, she will probably not be appointed. She was appointed to fix a problem and the next question is, did she fix those problems?

We are talking of critical reasoning here mister. She should do the job and stfu!

barcanista:
The opposition in Nigeria is the worst in history of democratic society. The PIB is being held because of "tribalism", partisanship and personal beef with the Minister. The opposition has politicised everything and not just that, their hypocrisy has been superb. My position on the subsidy thieves is that they be brought to justice and made to refund what they fraudulently took.

Such a pathetic group of opposition...

On the subsidy thieves; it is good they be brought to justice but you know what our judiciary is like...and the "cost" of justice in Nigeria...It won't be easy not because it isn't right but the system is too cumbersome, bureaucratic, costly, and corrupt...

I read James Ibori's conviction cost a whopping #4.4billion...

Toor!

Honestly, I think the best way to end all this corruption is stop giving post to all this people that studied abroad.



Most of this people who are mismanaging our resourses now school abroad.



My POV tho!

Whynotthetruth:



Such a pathetic group of opposition...

On the subsidy thieves; it is good they be brought to justice but you know what our judiciary is like...and the "cost" of justice in Nigeria...It won't be easy not because it isn't right but the system is too cumbersome, bureaucratic, costly, and corrupt...

I read James Ibori's conviction cost a whopping #4.4billion...

i understand the level of corruption in the Judiciary, but the prosecutors themselves need to do more. A Plea bargain(as it was done in Alamesiegha's case) can be exploited to expedite justice. One good thing is that we have the FOI in operation at the Federal level led by Jonathan. It is a very good platform to explore in tackling these things.

PassingShot:


I laugh at your reasoning.

A minister of petroleum who keeps blaming the occupant and government before her/theirs is not worth listening to because if the immediate occupant before her was that good, she will probably not be appointed. She was appointed to fix a problem and the next question is, did she fix those problems?

We are talking of critical reasoning here mister. She should do the job and stfu!

The problem with folks like you is that you read with prejudice hence your comprehension is skewed...

She cleared the air about some misconceptions especially with subsidy and made reference to other issues to paint clear pictures for biased folks like you...yet insulting her was the best you could offer...

She's achieved a lot already there(investigate independently)....

Now, With your party men obstructing passage of PIB what do you advise her to do now?

princemillla:
Toor!

Honestly, I think the best way to end all this corruption is stop giving post to all this people that studied abroad.

Most of this people who are mismanaging our resourses now school abroad.

My POV tho!

lolz... can you explain the mismanagement of our resources more plz...

barcanista:
i understand the level of corruption in the Judiciary, but the prosecutors themselves need to do more. A Plea bargain(as it was done in Alamesiegha's case) can be exploited to expedite justice. One good thing is that we have the FOI in operation at the Federal level led by Jonathan. It is a very good platform to explore in tackling these things.

Plea bargain No, remember the case of Igbinedion and his slap on the wrist in the name of plea bargain...
It seemed more like justice denied...

Whynotthetruth:



Plea bargain No, remember the case of Igbinedion and his slap on the wrist in the name of plea bargain...
It seemed more like justice denied...

That is why I said like Alamesiegha. You know the kind of bargain we had with Alams and Tafa Balogun is different from the Ibori kind? The Good thing is they will be exConvicts and it will follow them.

Whynotthetruth:



The problem with folks like you is that you read with prejudice hence your comprehension is skewed...

She cleared the air about some misconceptions especially with subsidy and made reference to other issues to paint clear pictures for biased folks like you...yet insulting her was the best you could offer...

She's achieved a lot already there(investigate independently)....

Now, With your party men obstructing passage of PIB what do you advise her to do now?

Are you for real? Are we talking about the same woman who has run from one court to the other to frustrate the House of Representatives to hold a public hearing over allegation that N10 billion was spent on chartered jet by her?

What misconceptions did she clear other than excuses as I earlier said?

barcanista:
That is why I said like Alamesiegha. You know the kind of bargain we had with Alams and Tafa Balogun is different from the Ibori kind? The Good thing is they will be exConvicts and it will follow them.

Sounds good anyway...but those guys are heavy financially and some are devil incarnates...Hope they don't become "more than" state institutions prosecuting them...Knew one of them in Apapa; a very young guy with intimidating war chest financially... BTW he's APC man for real...lolz

PassingShot:


Are you for real? Are we talking about the same woman who has run from one court to the other to frustrate the House of Representatives to hold a public hearing over allegation that N10 billion was spent on chartered jet by her?

What misconceptions did she clear other than excuses as I earlier said?

Is that all you understood from this interview

Whynotthetruth:



Is that all you understood from this interview

My last response is to let you know how important and worthy I consider her. Take care.

Whynotthetruth:



Sounds good anyway...but those guys are heavy financially and some are devil incarnates...Hope they don't become "more than" state institutions prosecuting them...Knew one of them in Apapa; a very young guy with intimidating war chest financially... BTW he's APC man for real...lolz

That is why we must be watchful...