Land of Plenty
By Nico Colombant
Port Harcourt
22 May 2007

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Refinery workers in one of the main cities in Nigeria's Niger Delta have started a protest action over the last-minute sell-off of refineries by the outgoing government. Meanwhile, motorists line up for hours to get gasoline, wondering why there is plenty of oil for export from this region, but so little turned into gas for their own cars. VOA's Nico Colombant reports from Port Harcourt.


Motorists line up for hours to get gasoline in Port Harcourt, Nigeria
For some drivers at gas stations like this one in Port Harcourt, the waiting seems endless.

"More than three hours now in the line here," one driver said. "So, we are suffering for the fuel too much. Look at the line here. It is full everywhere. We just want the government to take care of all these things for us, to buy fuel normally, as we are buying before, because we are suffering too much."

Another driver waiting in line, who asks to be called William, says he is already four hours late for work as a safety engineer for an oil company.

"They do not manage what we have properly," he said. "Therefore, most of the fuel we [have] in Nigeria, they export it to other countries, and other things. All the refineries are down. They are not working. Therefore, that is the problem we are having."

Although Nigeria is one of the world's largest oil producers, the country has long suffered from a lack of refining capacity. The government, which has held a controlling stake in the four main oil refineries, admits they are poorly run, inefficient and plagued by maintenance issues. Officials say that privatization of the refineries offers the best hope for an infusion of foreign investment and improved efficiency.


Illegal gas is sold on side of a road in Port Harcourt, Nigeria
On the streets, people are more concerned with where to find enough fuel for their cars, and many are forced to buy on the black market, where the price is nearly double. But buying black market fuel can also bring problems.

These men are checking to see if the gasoline here is good. One buyer says, you have to be very careful.

"Some of those ones on the road, they mix it up," he said. "Instead of the real quality, they add to it, something, on top of it, so it is not exactly the good petrol to buy. If you buy that one on the road, your car may stall."

Refinery workers are also upset by the government's privatization scheme.

Just outside Port Harcourt, refinery workers, wearing red protest outfits, are angry with the outgoing government's decision to sell off plants to private investors.

Last week, the Nigerian Bureau of Public Enterprises sold 51 percent of the federal government's equity in one refinery to a consortium for over $500 million, in an attempt to cut losses and improve performance.


Nigeria's refineries have struggled
Union leaders complain of a lack of transparency in the deal, and fear thousands of job cuts.

Union branch chairman for the Petroleum and Natural Gas Senior Staff Association Adamu Abubakar Umaru says workers were not consulted properly, as promised in an earlier memorandum of understanding.

"If they want to privatize, we have agreed that the process can commence as from June, when we have a new government, said Umaru. "We believe that the government that is transiting should not be interested in selling national assets like the refineries at this time, when they have barely less than 10 days to go."

The government says the sale will get people back to work and ease suffering.

Union leaders are warning of a total shutdown of the refineries on Thursday morning, if new negotiations with the union do not begin.

Umaru says he understands this could cause even more shortages for motorists.

"In any struggle, people must suffer, but at the end of it, the result that will come out of it would be for the betterment of the Nigerian people," he said.

Other unions have called for a stay at home strike to coincide with the May 29 handover of power to new governors and the next president, the ruling party's Musa Yar'Adua, following elections marred by violence and widespread fraud, in Africa's most populous and biggest oil producing country.



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aliko dangote, donald trump,
these men started this way!
big ups aliko

Capitalism is the way forward. EMBRACE IT NOW!

Its mostly the way of privatization. I doubt if there is hardly any government asset that is sold
without there being any cries of shadiness or underhandedness. Of course, the cries in Nigeria
takes a different dimension when Dangote, Femi, or Transcorp is remotely involved. I just find it
amazing that upon all the scores of government assets privatized within the past 8 years its only
those that the trio of Dangote, Femi, and Transcorp has anything to do with that generates the
most noise. Never mind that in virtually all the cases, they bid higher than everyone else.

Oh well, folks get use to it because this is the new Nigeria. Every country has its Dangote and Femi,
these guys have taken flight and they are not about to be stopped by anyone soon, as its expected
that Yar Adua will continue along the same line of reforms albeit with some new twists. Rather than
condemn this men, we should applaud them for believing and investing in the country. I am sure some
of us here would not have cared if the refinery was sold to the Indians or the Chinese.

Finally, the fact that Rivers State government also got a piece of the refinery as part of the consortium
has been conveniently left out or ignored so as to make the story "juicer", we are a funny people
indeed.

nosa101:

Capitalism is the way forward. EMBRACE IT NOW!

oh hell no!!

socialism mixed with some capitalism will do fine.

WesleyanA:

oh hell no!!

socialism mixed with some capitalism will do fine.

True, pure capitalism cant work makes no human sense anyway

yeah. true. i want a balance between both.

Iyke-D:

Finally, the fact that Rivers State government also got a piece of the refinery as part of the consortium
has been conveniently left out or ignored so as to make the story "juicer", we are a funny people
indeed.

I'll like to see where this was clearly stated (media or otherwise).

Dis Guy:

True, pure capitalism can't work makes no human sense anyway

WesleyanA:

oh hell no!!

socialism mixed with some capitalism will do fine.

Yanks are doing perfectly well, at least they have a middle class (something we grossly lack)

Privatisation: Militants Threaten To Blow Up Port Harcourt Refinery


May 24th, 2007


By Ubokikwan Gabriel

Reporter, Port Harcourt

The Movement for the Emancipation of the Niger Delta (MEND) and other militant groups have threatened to blow up Port Harcourt Refinery if the Federal Government goes ahead to sell its 51 per cent equity investment share in the refining company to Aliko Dangote, Mr. Femi Otedola, Rivers State government and the Transnational Corporation (Transcorp).

Mr. Josua Minisagha, who spoke for MEND, Niger Delta Solidarity Front and other militants revealed the intention of the groups in an e-mail to Daily Independent.

He warned: "Tell them that what they have bought is dust. Dangote and Otedola have not bought a refinery, they have bought a war they can’t win, since the loss of income that accrues to our people and the total destruction of the facility from which the income accrues approximates to the same situation, we shall level it to the ground, instead of allowing strangers to become our masters in our own land.

"We hope that President Obasanjo’s international allies, who worry much about the stability of oil prices than the miserable existence our people are compelled to endure, were duly consulted before he embarked on this journey of no return.’’

Also, Mr. John Onwubokiri, the national coordinator for Non-Violent Change in the Niger Delta, has criticised the transaction, which led to the sale of the refinery. He said the transaction was not transparent and thus has some selfish motivation at the background.

He insisted that the sale of the complex is not acceptable to the people of the region.

Onwubokiri described the president’s action as a painful parting gift to the people of the region. He pointed out that the transaction would disrupt the good work of his organisation in actualising peaceful agitation and change in the region.

Besides, the group accused Obasanjo of moulding the private empires of his friends and his family with utter neglect to the common people of the country, insisting that his interest in the Port Harcourt Refinery is a total misadventure that would not survive the test of time.

I CAN ONLY CONCURE

Thanks docokwy. Enuf said. This takes me back to what Oshkosh said about us accepting the fraudulent sale of the refinery. Well, in the light of the above, we now know those who wants to take over the refinery. And we can all see where the likes of Aliko Dangote, Otedola, Odili and others stand.

This why, as bad and evil as they may seem, I support the MEND guys sometimes. I think we need them around until somebody somewhere restore sanity to the system.

To me!

I see Dangote as the BillGates of africa, having to invest in different areas without soiling his hands, I mean a true

billionaire without the fraudulent reputation will all know in nigeria!!

Kudos to you Dangote, bad as e bad , Employment rate will increase with at least 20% in that refinery!

@Ono

This why, as bad and evil as they may seem, I support the MEND guys sometimes. I think we need them around until somebody
somewhere restore sanity to the system.

You know how it goes, you like and support them until they turn their guns on you, right? Its called the boomerang or blow-back
effect.

Also, what is fraudulent about Dangote's acquisition? Did he solely decide to privatize the refinery? Is it a crime for him to be a
member of a political party or to support one? Is it a crime for him to use his influence to get what he wants? [b]Have you ever
used whatever influence or connections you or your family have to get something done? [/b]Why is Dangote's different or is it simply
because he is Dangote and happens to be close to the president?

By the way, what the hell is Ibeto Cement?

And I think the likes of Oshkosh are at the fore front of those who love living ''happily'' and being in the midst of ''happy people''

Lakshmi Mittal, the richest man in England and a major supporter of the ruling Labour party has donated £2 million pounds to the party. He has, and continues to enjoy goverment support in the acquisition of assets, locally and abroad.  And this is in a developed economy where there are few, if any, companies left to privatize.

Yes, I'm happy, because I see these little steps as steps in the right direction. As progress in a nation where nothing works. We've had Nitel, NEPA, NPA etc in a comatose state for decades and I certainly won't loose sleep over private hands bringing them back to life for the benefit of our nation.

BTW, was'nt the bid by Dangote, Rivers state, Otedola and Transcorp the highest tabled for PH refinery? Or it should it be handed to the second highest bidder because Dangote and Otedola are buddies of the ruling party?

If we allow sentiments  to overcome our judgement, our future as a nation will be imperiled and no different from our past. If the refinery had been sold to an Indian consortium for $300 million instead of the $561 paid by Bluestar group,  I'm sure it would not have been a problem to many.

Our progress as a nation is slow, but I choose to acknowledge these developments as a welcome departure from the inactivity, lethargy and ineffectiveness of the past.

If I followed the foregoing well, what was sold to Dangote et al was the 51% Federal govt stake in the refinery. This means that some other body/bodies hold 49% stake. Now, how about the federal government selling her 51% share to a broad spectrum of Nigerians, including the staff of the refinery? That way, the wealth is spread amongst many and the workers knowing that the investment belongs to them partly, will take their jobs seriously. The above suggestion is tenable especially if the other 49% stake is not owned by foreigners.

oshkosh:

Lakshmi Mittal, the richest man in England and a major supporter of the ruling Labour party has donated £2 million pounds to the party. He has, and continues to enjoy goverment support in the acquisition of assets, locally and abroad.  And this is in a developed economy where there are few, if any, companies left to privatize.

Truth is that one can easily trace the history of people like Mittal Lakshmi. We can see where he's coming from and can beat our chest that he acquired all he has in a very transparent way. The Brits won't let him go very far if he has his hands soiled at any point in the process of acquiring anything anywhere - including evading taxes.

oshkosh:

Yes, I'm happy, because I see these little steps as steps in the right direction. As progress in a nation where nothing works. We've had Nitel, NEPA, NPA etc in a comatose state for decades and I certainly won't loose sleep over private hands bringing them back to life for the benefit of our nation.

I think the problem we all should be battling with is that of leadership at all levels. When theses parastatals were established, government had very noble objectives for setting them up. They were up and running until the military came to power. Now that the military have left the scene, whey can't we just allow these things to go back to how they used to run? I think the answer ain't that far from us. The present crop of leaders in the country are the most corrupt we have ever seen (or probably would see) in the history of this country.

If the private hands that are angling to buy over these parastatals were clean hands, no one (including myself) would loose sleep on how this is done. But here, we have bootlickers, goons, party loyalists in a corrupt and worm infested party called FeeDeeFee calling the shots. Where is that Irene Chigbue woman of the privattisation board? How is it that the woman was not empowered to make the process of privatisation transparent? Why can't we do things right in this country? Where did all these bidders for the PHC refinery get their wealth from? How is it they are so rich stupendously, compared to the average Nigerian? Many questions that need to be answered.

oshkosh:

BTW, was'nt the bid by Dangote, Rivers state, Otedola and Transcorp the highest tabled for PH refinery? Or it should it be handed to the second highest bidder because Dangote and Otedola are buddies of the ruling party?

The mere fact that the People Deceiving People party is not popular with the people of the country is enough to discourage any investor from associating with the occultic party. Why would Otedola, Dangote associate with this party? To satisfy their selfish thirst for stealing peoples property, of course.

oshkosh:

If we allow sentiments  to overcome our judgement, our future as a nation will be imperiled and no different from our past. If the refinery had been sold to an Indian consortium for $300 million instead of the $561 paid by Bluestar group,  I'm sure it would not have been a problem to many.

At this point in the history of this country, I don't think we have any future to talk about until the burning issues of nationhood is critically addressed at a roundtable by the true representative of our people in all spheres of life.

oshkosh:

Our progress as a nation is slow, but I choose to acknowledge these developments as a welcome departure from the inactivity, lethargy and ineffectiveness of the past.

I'll rather we don't ''progress'' at all than have all these crooks feasting on our heritage.

Truth is that one can easily trace the history of people like Mittal Lakshmi. We can see where he's coming from and can beat our chest that he acquired all he has in a very transparent way. The Brits won't let him go very far if he has his hands soiled at any point in the process of acquiring anything anywhere - including evading taxes.

Don't be to sure of this. I can tell you categorically that these people pay disproportionately less tax than the middle and lower classes. In fact for most of them the taxes they pay is negligible. That is one of the reasons why the likes of Abramovich, Mital and hordes other billionaires find their way to London. In many instances, these people are allowed to buy up businesses on the cheap, sometimes subsidized by the goverment in order to generate employment. This is a very common practice in Europe. If PH refinery that can employ 20% more people, create more wealth in taxes to the Revenue, increase fuel supply and associated cost of importation - I'm glad.
Besides who said they are that "clean". What you find in their backyards may shock you!

But here, we have bootlickers, goons, party loyalists in a corrupt and worm infested party called FeeDeeFee calling the shots.

This can be said of most, if not all of the parties in Nigeria. I watched a programme recently where Pat Utomi said something like over 90% of our politicians are self serving and selfish. PDP just happens to be the party in power and the most dominant. I suspect that parties like the AC, with Atiku at the helm, will fair even worse if they were in power.

Why would Otedola, Dangote associate with this party? To satisfy their selfish thirst for stealing peoples property, of course.

Hmm,  so now they should be condemned for supporting a party of their choice? This is politics everywhere in the world. In the UK, business leaders in the city of London are waiting, hedging to figure out which party policy would promote their interest (bottomline, profits) before pledging support. This is capitalism at play and Dangote/Otedola should not be crucified for exercising their civil right in participating in our democracy.

I'll rather we don't ''progress'' at all than have all these crooks feasting on our heritage.

You may be suggesting we maintain the status quo, where the likes of Atiku, IBB and a host of others sell these corporations to themselves via funny proxies, and we all pretend everything is right! I'm glad that the process is at least open for all to see. We may disagree with the process, dislike the winners, doubt the transparency of transaction - but at least it's in the open. It's indeed a step in the right direction.

oshkosh:

Don't be to sure of this. I can tell you categorically that these people pay disproportionately less tax than the middle and lower classes. In fact for most of them, the taxes they pay in negligible. That is one of the reasons why the likes of Abramovich, Mital and hordes other billionaires find their way to London. In many instances, these people are allowed to buy up businesses on the cheap, sometimes subsidized by the goverment in order to generate employment. This is a very common practice in Europe.

You live in the UK.Can you name one instance where the Govt subsidised a business acquisition.

Also the rich pay higher taxes in the UK than the middle and lower classes.

You live in the UK.Can you name one instance where the Govt subsidised a business acquisition

One example springs to mind. Find out about Rover car company that was sold last year. The goverment was so keen to sell it off (and protect jobs) that it was being pandered around with promise of goverment "grants". Before that, the company that owned it bought it for £1 because it was making serious loses and again, goverment needed to protect jobs. Politics and business go hand in hand dude.

Also the rich pay higher taxes in the UK than the middle and lower classes.

Please, please lets not go there. It's a known fact that it's the middle classes that holds an econmy together. In most cases rich people (especially business owners) find clever ways to avoid tax and many succeed. They hire expensive tax lawyers, domicile their companies abroad or off-shore, live less than 180 days in a particular country and other clever tax avoidance schemes. Many goverments (especially in Europe) generally turn a blind eye as long as they get some taxes and these people create jobs!

And I did not say they do not pay more taxes. I said they pay disproportionately lower tax. A man who earns 1 billion a year and pays 100 million in taxes has paid disproportionately less tax than I (that pay at source)

oshkosh:

Hmm,  so now they should be condemned for supporting a party of their choice? This is politics everywhere in the world. In the UK, business leaders in the city of London are waiting, hedging to figure out which party policy would promote their interest (bottomline, profits) before pledging support. This is capitalism at play and Dangote/Otedola should not be crucified for exercising their civil right in participating in our democracy.

Well, because that's what is obtainable in some ''Capitalist'' economy like the UK, why in the world should we tow their pattern of governance? Can't we fashion out a governance model that's totally ours and it's fit for purpose? Must we borrow everywhere everything we need from abroad?

oshkosh:

One example springs to mind. Find out about Rover car company that was sold last year. The goverment was so keen to sell it off (and protect jobs) that it was being pandered around with promise of goverment "grants". Before that, the company that owned it bought it for £1 because it was making serious loses and again, goverment needed to protect jobs. Politics and business go hand in hand dude.

My guy,all this talk is wonderful but you still didn't address the question.Did the Govt provide a subsidy?The simple answer is No!The Govt did not subsidise the Rover acquisition.[/b]Buying a company for £1 arises where a coy is insolvent.There are thousands of acquisitions like that in the UK.

oshkosh:

[b]Please, please lets not go there. It's a known fact that it's the middle classes that holds an econmy together. In most cases rich people (especially business owners) find clever ways to avoid tax and many succeed. They hire expensive tax lawyers, domicile their companies abroad or off-shore, live less than 180 days in a particular country and other clever tax avoidance schemes. Many goverments (especially in Europe) generally turn a blind eye as long as they get some taxes and these people create jobs!

And I did not say they do not pay more taxes. I said they pay disproportionately lower tax. A man who earns 1 billion a year and pays 100 million in taxes has paid disproportionately less tax than I (that pay at source)

The statement I highlighted is a common misconception amongst people.Most tax revenue comes from the rich.It is the rich that hold the economy together.In the UK,top 1% provide 23% of  the tax revenue-http://comment.independent.co.uk/columnists_m_z/hamish_mcrae/article33519.ece Scroll down to the 5th paragraph

I got some links from the US to explain this better-[url]http://taxesandgrowth.ncpa.org/news/do-the-rich-and-businesses-pay-their-fair-share
[/url]
According to data from the IRS, the bottom 50 percent of income earners pay approximately 4 percent of income taxes.
The top 25 percent of income earners pay nearly 83 percent of the income tax burden, and the top 10 percent pay 65 percent.
The top 1 percent of income earners pay almost 35 percent of all income taxes.
The top 400 richest Americans paid 1.58 of total income taxes in 2000.

Income tax for the rich is 40% while for the middle class its 22% going down to 20% next year.The rich actually do pay a disproportiante share of the taxes.This contrary to the common misconception that they have are not contributing their fair share

Pls if dangote is using all this medium to create employment he should buy all,all and all is it better when its not functional and they are sacking people everyday anybody that crtisice him should go and think deep
               LONG LIVE DANGOTE,

Income tax for the rich is 40% while for the middle class its 22% going down to 20% next year.The rich actually do pay a disproportiante share of the taxes.This contrary to the common misconception that they have are not contributing their fair share

I would like to know your definition of "rich" ? Someone  on PAYE,  earning £100,000 PA ? More? Less?

The people you describe as rich are actually the middle-classes. They may be "high" income earners, but they are the middle-classes non-the-less.

I've been on 40% tax bracket for 10 years and I'm nowhere near rich. I dare say that very few people who depend solely on paid employment in the UK can consider themselve rich.  Maybe city traders and bankers with firms like Goldman Sachs, Meryll Lynch, Lehman and Morgan Stanley who get 6, 7 figure bonuses at year end may fall into the "Rich" class. But they will not make the Times Rich List unless their networth is well over £3million. This category of people are in the extreme minority compared to other tax payers. Millionaires are happy to pay themselves (payee) £60,000 P/A, and get other tax exempt or low-tax benefits running into millions. This is simply how they protect their wealth. Tax avoidance is now an art form for the rich and business owners/investors are the ultimate "beneficiaries".

Rich people in the UK (like most places) are investors, business owners. There are so many clever tax schemes out there that help them pay less than 15% on income from numerous asset classes and income streams. Wealthy people are the ones most likely to take advantage of these services as their incomes would justify the cost.

BUNCH OF CRIMINALS!!!!!!!!!!!! THE WHOLE LOT,WHAT DIRECT OR INDIRECT IMPACT HAS IT MADE ON THE COMMON MAN?? COME ON U GUYS R TALKING ABT THESE MEN SKILLFULLY ENRICHING THEMSELVES,WHILE U REGALE THEM TO D HIGHEST HEAVENS,WHEN OUR GENERAL HOSPITALS R COMATOSE,YOUNG PROFESSIONALS UNEMPLOYED OR EARNING BELOW THEIR INCOME WHILE THEY SLAVE FOR THESE CRIMINALS.TOTAL ABSURDITY!!!!!!!!!!!!!!!!! LETS OPEN OUR EYES AND LOOK BEYOND D SUPERFICIAL,COMMON AMENITIES WE DONT HAVE IN NIGERIA,WHY SHOULD WE PRAISE THEM FOR LOOTING US IN BROAD DAY LIGHT? WHAT HAS CHANGED SINCE THEY DECIDED TO SHARE OUR WEALTH AMONGST THEMSELVES? IS NIGERIA ANY BETTER,HOW MANY MORE YOUTHS WITHOUT JOBS GOING INTO PROSTITUTION OR ARMED ROBBERY.?? PLEASE STOP AND THINK 4 A MINUTE.

nosa101, i said pure capitalism

The highest bidder got the refinery, if an indian company bought the refinery we would be praising direct foreign investment. I think Dangote withdrew his bid

Rich people in the UK (like most places) are investors, business owners. There are so many clever tax schemes out there that help them pay less than 15% on income from a numerous asset classes and income streams. Wealthy people are the ones most likely to take advantage of these services as their incomes would justify the cost.

True, they employ tax specialist to pay as little as possible, even tesco are not paying high taxes they are registered in some funny island somewhere in barbados or thereabouts

O'l boy dis buying stuff don cause wahala o!

I could not get a cab to go to work early today,

200 naira drop is now 350 o in FCT!

FG pls give this pple what u owe them o.

i

I dont envy them one bit,if anything,i admire n appreciate their drive.

Na dem dem,Nigeria iluminaties,sulking the country dry.

[size=20pt]Dangote has triedat least the money is spent and reinvested in Nigeria. That is the most important thing. More Employment and development. Instead of leaving a Government owned parastatal to die I think its best for the Private sector to buy up and manage them. God Bless Nigeria.[/size]

from the way the out going idiot sold and is selling things in Nigeria, i know aso rock will soon be for sale.
what a shame that as big as nigeria with all the mineral resources in nigeria, we do not have anything.
no airline, no reffinary, no roads, no power supply,no security.
for those of us who are rejoicing over this new developments, could you pls tell me what are the responsibilities of the FG and what will be the need for Aso Rock if there is nothing left for the Fg to manage.
we will not be surprise to wake up one day and here that bayasa, delta and other oil producing states have been sold.
nitel-sold, waterboard-sold, airline-sold, our roads-sold, our waters-sold, government hotels-sold, electricity authority-sold, police-sold, army-sold,
my prediction is that if yar adua must continue with obj's police, an empty nigeria will be placed for sale in less that 1 yr from now.