₦airaland Forum

emk4lif: Wow, this is the biggest global summit on africa, africa's davos and its always been held in SA, bringing it to nigeria symbolizes our growing economic prowess especially as our economy is likely to overtake that of SA...-Just wish GEJ's macroeconomic successes could transform into better employment opportunities nd poverty reduction

taharqa: Good...but like I say on the other thread, it has to be SUSTAINED in other to make crude oil theft effectively checked, once and for all

emmysenior: It is very obvious that the FG didn't want Fashola to take the glory in that aspect.

Another canker worm that's eating Nigeria; is the dirty pride in our leaders.

My question is, WHY ARE THERE NO CCTV CAMERAS IN OTHER PARTS OF THE COUNTRY?

sheyie2007: why did you mention empty hen

goon: I have watched from afar off how Nigerians are just singing praises for Soludo as if being educated makes u unable to lie or be corrupt. You guys are responding as if Soludo is intellectually better and more reasonable than El-Rufai. I expected Nigerians after reading Soludo's powerful C.V to take a look at his opponent's(in this case) own rather than singing dull praises for Soludo as if he is the first to make a first class. For the of you who may not know. El-rufai is also a scholar and had he opted for acadamics rather than civil service, he would have equalled or surpassed Soludo's academic achievements.Just for your knowledge this is a brief view of his own modest C.V
Nasir el-Rufai was born in Daudawa of the Faskari Local Government Area in the northern state of Katsina. He was the Minister of the Federal Capital Territory and member of the Federal Executive Council, the highest decision making body in Nigeria from 2003 – 2007. He attended various academic and professional programmes at Ahmadu Bello University, Zaria, Nigeria, University of London, Harvard Business School, Arthur D. Little School of Management in Massachusetts, Georgetown University School of Foreign Services in Washington, D.C. and the John F. Kennedy School of Government, Harvard University. He holds a first class honours degree in Quantity Surveying (1980), a Masters Degree in Business Administration (1984), a Postgraduate Diploma in Computer Science (1985), a Bachelor of Laws(second class upper) from Harvard University (2008), Master of Public Administration (2009), and has attended several programs on Privatization and Leadership. He established and ran what became a successful consulting practice, el-Rufai & Partners, between 1982 and 1998. He also held management positions with two international telecommunications companies, AT&T Network Systems International BV and Motorola, Inc. In October 2001, he was conferred a national honour, OFR (Officer of the Order of the Federal Republic of Nigeria) by the Federal Government of Nigeria while serving as the director general of the Bureau of Public Enterprises (BPE) and the secretary of the National Council of Privatisation where he spearheaded the privatisation of many government owned companies. He is happily married with children. In 2005, he was conferred D.Sc (honoris causa) by the University of Abuja, Nigeria.
Tribalism and sentiments are killing Nigerians.

0lumide: YOU ARE WRONG!!!!!!

China has 3 trillion US dollars reserve because it want to keep it's currency lower than the dollars so more Chinese products can go into the US which is their biggest market. If China demand trade in their currency, the value of their currency against that of the rest of the world will be too much such that no one will want to buy Chinese products because of exchange rate. Now, China has to do that because they are not importers in China rather they are exporters.

Now, What is the purpose of our foreign reserve. That is the aim of my comment which you ignored. Our foreign reserve provide dollars exchange for money leaving the nation mostly because we are importers. The CBN has to provide dollars for both foreign investors (other stable economies provide their local currencies for foreign injections which includes exports). No one is buying Naira so the CBN can not keep the reserve in Naira. Naira will continue to buy the dollars and not the other way around because we trade in Dollars even for FDI.. Like In Canada, if you want to invest in Canada from outside, they provide their currency and to convert yours same thing happens with export. They keep different currencies in FR so that when they trade in any of the currencies, they don't have to buy. But I must admit they tend to do this with stable currencies but the dollar hasn't been stable so that doesn't take away from my point.

0lumide: YOU ARE WRONG!!!!!!

China has 3 trillion US dollars reserve because it want to keep it's currency lower than the dollars so more Chinese products can go into the US which is their biggest market. If China demand trade in their currency, the value of their currency against that of the rest of the world will be too much such that no one will want to buy Chinese products because of exchange rate. Now, China has to do that because they are not importers in China rather they are exporters.

Now, What is the purpose of our foreign reserve. That is the aim of my comment which you ignored. Our foreign reserve provide dollars exchange for money leaving the nation mostly because we are importers. The CBN has to provide dollars for both foreign investors (other stable economies provide their local currencies for foreign injections which includes exports). No one is buying Naira so the CBN can not keep the reserve in Naira. Naira will continue to buy the dollars and not the other way around because we trade in Dollars even for FDI.. Like In Canada, if you want to invest in Canada from outside, they provide their currency and to convert yours same thing happens with export. They keep different currencies in FR so that when they trade in any of the currencies, they don't have to buy. But I must admit they tend to do this with stable currencies but the dollar hasn't been stable so that doesn't take away from my point.

0lumide: It doesn't work that way. Remember that our central bank is not limited by any law as to how much foreign reserve it can keep.

Now, we don't get paid in dollars for export do we? Anyone looking to buy nigerian products (Apart from oil), has to buy naira either from the CBN or from currency speculators. 99% of the FR is from petrol dollars not international trade. So we get paid in dollars for our major export which is oil. The problem with this is that we are not providing naira to those seeking to invest in Nigeria instead, we are providing dollars for Nigerians looking to import. Remember the FR came from oil. Now, Nigerians can buy $50bn worth of USD from our central bank. For what? To invest in Naira? or to purchase imports? Because obviously, Nigerians are not buying naira. We are buying dollars. Investors are not buying naira, instead we are forced to deal in dollars because the investors don't have saving in Naira.

How many nations are holding their reserve in naira so as to be able to import nigerian products? Since Nations don't have Naira reserves, Nigeria conducts international trade in Dollars. Now, Nigerians and foreign investors has to buy Dollars from CBN pushing the value of Naira against the Dollar lower because more Naira is buying the dollars than vice versa..

So the reserve is useless because it's not from international trade, rather, it's oil dollars. So Nigerians importing(majority of Nigerians), will have to buy the FR out although CBN might make money selling those dollars, the Naira will devalue against the dollar...

PHIPEX: I've been wondering why private sector players haven't been taking advantage of the huge power supply gap in the country or is it not lucrative enough? Thank God things are changing.

0lumide: Bollocks!!!!!


What is the foreign reserve being used for?

Are we using it to supply Naira to those who want to invest in/buy in Nigeria? NO!

Are we using to buy foreign currencies for nigerians who wants to buy things abroad or send money abroad? YES!


The the increase in foreign reserve is not of economic benefit to Nigerians. What Okonjo Iweala should be thinking of is in what direction is she driving the Nigerian economy to?

Because we have more money leaving the nation than coming in, Trade deficit is really bad. We should be trying to have trade agreements with nations we import from the most so we can be able to export something there too which in turn increases the purchasing power of our currency and reduces our huge trade deficit..

Increasing foreign reserve (Foreign currency) is nothing but feeding the Nigerian hunger for dollars not investors hunger for Naira. So Okonjo Iweala should look for another way to gain points...

otokx: Yes i do especially indomie and nasco corn flakes, glucose malt biscuit, amstel & guiness malta. Food, drugs and biro wise we are not doing too badly at all.

koruji: Told by the GMD of NNPC...
...to the Senate Panel on the Subsidy Palaver.

He was explaining what happens to the 445000 bbls/day allocated to NNPC for domestic consumption. His breakdown:
220,000 = refined abroad as a swap deal
170,000 = refined locally
65,000 = doesn't know where it goes.

This is some "GREAT" country we have here when our national oil company cannot account for almost 24 million barrels of oil in one year.

Joey82: we know of people looting the treasury at the speed of light and efcc is dead, u hardly get to hear the name of lamurde in the news, it makes me question govt's justification to sack madam waziri; there is no confidence in the financial sector

Joey82: and foreign direct investments are going down

Joey82: the roads are more worse;

Joey82: planes are more like flying coffins, we hear the rich now travel to abuja from lagos via london cos they dont trust local flights;

Joey82: i wont start mentioning the issue of insecurity,

Joey82: how can our economic indices be better on paper when almost half the north is shut down

Joey82: forget the statistics churned on paper; unemployment is at all time high and no body is thinking of waking the real sector;

iwanchop: You mean all the governors must agree with what the president says?
Why are we the practising democracy?Are we in military era?

Orikinla: NPDC Responds To Petroleum Minister’s Alleged N59tr Oil Deal

The attention of the Nigerian Petroleum Development Company Limited (NPDC) a wholly owned subsidiary of the Nigerian National Petroleum Corporation (NNPC) has been drawn to publications in which five (5) alleged Oil Communities in Delta State led by Chief Emami Ayiri made spurious and unfounded allegations against the Honourable Minister of Petroleum Resources (HMPR), Mrs. Diezani Alison-Madueke. These allegations , which include the underlisted, are untrue:

1. Deliberate exclusion of indigenous rights to preemption and/ or first refusal on the four oil blocks

2. HMPR allegedly, quietly, improperly and illegally assigned 55% FGN interest to Atlantic Energy Drilling Concepts (AEDC);

3. There was no recourse to due process in the aforementioned transactions;

4. Selection of Atlantic Energy Drilling Concepts (AEDC) not through transparent process;

5. HMPR has pecuniary interest in Atlantic Energy Drilling Concepts (AEDC), hence her approval of the deal;

6. Nigeria would lose four trillion cubic feet of gas asset worth $15.72 trillion.


Allegation No. 1: Deliberate exclusion of indigenous rights to preemption and/ or first refusal on the four oil blocks
It is the Petitioner’s (Delta State Oil Producing Communities) contention that being an indigenous body, they have first right of refusal or preemptive right to what they perceive to be the Honorable Minister of Petroleum Resources’ (HMPR) assignment of 55% of the Federal Government of Nigeria’s (FGN) equity in OMLs 26, 30, 34 and 42 to Atlantic Energy Drilling Concepts (AEDC). The fact of the matter is that AEDC was NEVER assigned such equity. The 55% equity interest in those blocks were assigned to NPDC, which is our National Oil Company and is an exploration and production (E&P) subsidiary of NNPC.

In line with the governing provision regulating divestment or transfer of participatory interest in any oil block, the Honorable Minister after due consideration, approved the assignment of NNPC’s interest to NPDC.
Needless to say, the Honorable Minister’s action is within the scope of her statutory oversight responsibility and in essence for the greater benefit of the nation. We must also point out that NPDC, as a subsidiary of NNPC, is as indigenous as any community can claim to be and represents a much wider scope of indigenous rights than the Delta State Oil Producing Communities.

The allegation of deliberate exclusion of indigenous rights is in contrast with the established pro-indigenous position of the Minister as demonstrated in her administration of the Oil and Gas Sector.

Allegation No. 2: HMPR allegedly, quietly, improperly and illegally assigned 55% FGN interest to Atlantic Energy Drilling Concepts
At the risk of sounding repetitious, the basic fact of this matter is that International Oil Companies (IOCs), who are partners in the NNPC/SPDC JV, divested their 45% equity interest in the aforementioned OMLs to FHN, NECONDE, ND WESTERN & SHORELINE; whereupon, NNPC also assigned its 55% equity interest in those OMLs to the Nigerian Petroleum Development Company (NPDC), the National Oil Company, a wholly owned NNPC subsidiary.

Thereafter, NPDC entered into a Strategic Alliance Agreement with AEDC, in order to meet its critical funding obligations in the OMLs. These types of funding arrangements have been in existence since the late 1990s.

They are not new to the industry. It is therefore false to say that the FGN’s 55% equity interest and/or any FGN equity interest has been sold to AEDC. There was never such a sale.

Allegation No. 3: There was no recourse to due process in the aforementioned transactions
As indicated earlier, there was never any sale of equity involved but merely a transaction between NNPC and its subsidiary, NPDC, in compliance with the provisions of the Joint Operating Agreement (JOA). The transaction at issue was not an acreage allocation exercise neither did it involve the issuance of a prospecting license. As in all previous funding arrangements such as Modified Carry Arrangements (MCA), Project Financing, etc; NNPC negotiates the most competitive financing terms for itself.

Allegation No. 4: Selection of Atlantic Energy Drilling Concepts not through transparent process
This statement is deliberately confusing the transaction undertaken by the Shell Petroleum Development Company (SPDC) Parties which sold their 45% equity interest to FHN, NECONDE, ND WESTERN & SHORELINE as against NNPC’s assignment of its 55% equity to NPDC. Neither NNPC nor its subsidiary NPDC is selling or has sold its equity interest in the four (4) OMLs. As such, there is no need for a bidding process as no government equity interest was sold to any third party, be it local or foreign.

Allegation No. 5: HMPR has pecuniary interest in Atlantic Energy Drilling Concepts, hence her approval of the deal
As part of NNPC policy, a thorough background check was carried out on Atlantic Energy Drilling Concepts, and there is no evidence indicating that the Honourable Minister of Petroleum Resources has any direct or indirect pecuniary interest in the company. This allegation is therefore false, unfounded, and malicious and aimed at defaming the character of the person of the HMPR.

It is expected that in issues as profound as these, the Delta State Oil Producing Communities should undertake a thorough, incisive, comprehensive investigation before making spurious allegations that are intentionally meant to tarnish the image of the Honourable Minister.

Allegation No. 6: Nigeria would lose four trillion cubic feet of gas asset worth $15.72 trillion
The quoted reserves of 5 billion barrels corresponding to 60% of NPDC 55% equity is obviously a calculated attempt to mislead the National Assembly and indeed the people of Nigeria as the entire 100% equity of the 4 blocks is not up to 5 billion barrels.

Considering that the transaction at issue is not a sale of assets, it is inconceivable to arrive at any loss, not to mention the $15.72 trillion being propagated.

The revenue accruing from approximately 75% of the total reserves that is due to the Federal Government remains unchanged and has not been eroded. Royalty and tax accruable to the federation account will be paid based on production.

In conclusion, NPDC, as the National Oil Company and a flagship subsidiary of NNPC is always seeking to expand its opportunities in the upstream oil and gas sector. In pursuing this growth strategy, NPDC has adopted funding mechanisms to secure production capacity of 250,000 barrels per day by 2015.
This strategy is essential if the National Oil Company (NOC) is to be a major player in the upstream sector in Nigeria and provide National Energy Security for the Nation. A strong National Oil Company is sine qua non for National Security as practiced by all other oil producing countries.

The support of FGN in ensuring NPDC’s expanded operations by seeking additional asset base and funding outside the normal Government funded Joint Venture (JV) cash call, is therefore an imperative. It is interesting that the laudable actions of the Honourable Minister of Petroleum Resources who has consistently fought to support and grow the National Oil Company, NPDC, against competing interests is being parodied and vilified by certain groups.

These concerted actions have already yielded desired results as NPDC production has grown from 60,000 bbl/day to 138,000 bbl/day. Currently, NPDC is the major gas supplier to the domestic market in the western Niger Delta with over 450 mmscf/day which will further increase to over 550 mmscf/d by the end of 2013. We therefore urge all Nigerians to support the development of our own National Oil Company, to enable it compare with its peers (Petrobras, Saudi Aramco and Petronas) and to allow it compete favourably with other International Oil Companies (IOC).

The Delta State Oil Producing Communities and news media owe a duty to the nation to verify information before going public

MANAGEMENT

ba7man: I don't know if Barth Nnaji hid some megawatts up his a*sehole when leaving office but "RIGHT NOW", GEJ's promise of electricity is sh*t. Its worse and that's the "FACT" regardless of what you say or think.

BarryX: Most Nigerians were quite aware of the bloated casualty figures, That aside i have some pertinent questions to ask from a neutral point of view.
1) If the casualty figures were really not huge, Why budget more than 5 billion for rehabilitation? Who and what are they rehabilitating with such huge amount that can build a power plant.?? How are we so sure that large chunk of the amount release won't be used to finance the activities of this sect and the cycle continues? Please someone should oblige me an answer, it will go a long way. Thanks