₦airaland Forum

No doubt elements of subsidy exist in the pricing of petrol and kerosene sold in Nigeria. But before the federal government throws all of us into an unprecedented confusion by an unplanned removal of this subsidy we must ask questions because once the nation starts to burn you never know.

The refineries in Nigeria produce some quantity of petrol, what is the cost of that fuel? Diesel is deregulated already and so nobody bothers about that type of fuel. What of kerosene, called DPK, how much does it cost to produce it in Nigeria and how much is it sold for? What of jet A1, also known as DPK, (the fuel to fly aeroplanes), where is it from and how much is it sold for? The back page article in the PILOT newspaper of October 15, 2011 should interest a lot of readers because it contained a summary of per litre fuel pump price in both OPEC and non-OPEC economies.

The survey says per litre pump price of petrol in Iran is N58.40k; Kuwait N30.66k; Qatar N32.12k; Saudi Arabia N17.52k; UAE N54.02k; Venezuela N5.84k; Libya N15.95k; Egypt N46.72k; Malaysia N73; Mexico N81.76k; Bahrain N39.42k; Russia N90.52k; USA N108.04 and Indonesia N81.14.

As at August 15, 2011 based on its pricing template Petroleum Pricing Regulatory Agency (PPRA) the landing cost of a litre of petrol in Nigeria is N129.21; the margin for transporters and marketers is N15.49; the expected pump price ought to be N144.70 per litre instead of the N65 per litre that is charged. This means a so-called subsidy of N79.70 assumed by government on every litre of petrol sold in Nigeria.

All the countries mentioned above own functioning and efficient refineries to produce petrol, diesel and kerosene for their domestic economy. Nigerian refineries also produce some quantity of petrol; let the PPRA tell the Nigerian public what the per litre cost of locally refined petrol is in Nigeria.

As a people, we should introduce rigours in our public life so that transparency and accountability can be promoted. If the true selling price of per litre of imported fuel in Nigeria is N144.70 and the government has not found it necessary to invest in refineries who should be blamed? Let us examine the cost components of imported petrol.

But this imported fuel is actually round-tripped because the original crude is taken from the shores of Nigeria and sold to dedicated refineries. When the crude oil is loaded into the ships in Nigeria, there are huge handling charges at the port, plus insurance and haulage charges to cover the cargo as it sails to the foreign refineries, port charges as it enters into the foreign countries and production cost.

Big oil traders

After the refining has been done, the refined petrol now is sold to big oil traders who now sell to Nigerian government big boys and the fuel is then loaded onto ships bound for Nigeria and the cost builds-up again viz: port charges in the host country, excise duties, and then haulage and insurance on the vessel and its content to Lagos plus port charges at destination, demurrage and security charges.

Details of exchange of Sovereign Debt Notes and the off-takes at the ports will not interest readers here. But the cost of locally refined petrol is not the same as imported fuel. The NLC must find out. The matter is beyond the existence of a fuel cartel.

It touches the heart of federal government from pre- President Goodluck Jonathan era and exposes the naivety of NASS members. Two more areas need to be examined. These are the role of the Petroleum Equalisation Fund (PEF) and the use and abuse of DPK (dual purpose kerosene).

The main duty of PEF is to ensure that by picking up the haulage charges on distribution trucks from one depot location to another, it ensures that the price of fuel is equalised across the country. To move a truck of petrol from Lagos to Kano, for instance, would cost about N200,000.00 per truck in haulage cost and it is the duty of PEF to reimburse the major marketers for this cost and thereby maintaining a flat rate of N65 per litre in the country.

If a major marketer moves 1,000 trucks to several of such locations in one month, PEF reimburses the company. It is this component that is the subsidy in this case. If a major marketer moves 60 trucks and enters PEF claims for 500 trucks, who cares when everyone is happy?

If this is replicated across the seven odd major and numerous independent marketers, Nigerians can imagine how much is truly lost in haulage claims and where part of the subsidy really ends up.

The pockets of PPMC staff, NNPC staff, government officials and major petroleum marketing companies are full to the brim and bursting. But the nation groans. Let PEF be cancelled today and fuel pricing at different locations in the country should reflect full haulage rate.

The other item in this subsidy saga is the kerosene factor. The Nigerian refineries actually produce kerosene and it is a known fact that DPK is used for household needs and to fly aeroplanes. The government has fixed a price of N50 per litre of kerosene but consumers get it for N95 per litre.

No matter what government does it won’t change anything in DPK. The pressure on kerosene comes from one major source – airlines. The kerosene used by airline has to be very pure because even a speck of dust in a huge volume of DPK can cause havoc in an aircraft. 90% of the kerosene produced by the refineries is allocated to the major oil marketers and it ends up in the tanks of aircrafts.

If PPMC sells kerosene to major marketers at N44 per litre, the major marketers sell this kerosene to the airlines at N165 per litre. The consumption of DPK by aircrafts is quite substantial. A 747 aircraft from Lagos to London uses as much as 30,000 litres of DPK and a 737 aircraft to Kano from Lagos uses as much as 5,000 litres of jet fuel in the minimum.

However, the poor Nigerians are only allowed to buy 50 litres of DPK per transaction, over and above government rate of N50 per litre and yet not enough kerosene for the poor. It is obvious where the kerosene goes and everyone in government and in NNPC knows what the true story is.

The recent statement by Deziane Allison-Madueke, the petroleum resources minister that the subsidy on kerosene is to remain is a fraudulent statement because the games played with kerosene are known and government officials want some subsidy to remain for the boys and their girls.

If the haulage subsidy is removed and DPK from refineries is coloured there will be kerosene all over Nigeria at N50 per litre and it won’t be diverted to jet fuel. Colouring kerosene for domestic use is the answer not subsidy retention. Let DPK for aircraft be priced appropriately.

Removing subsidy on petroleum products must be done correctly and within the proper context. Experts say that 200,000 barrels per day refinery can be built in nine months at a cost of US$4.0 billion. Let government partner with Nigerian and foreign investors and oil majors such as Shell, Exxon-Mobil etc, draw from its foreign reserves, as was done to pay foreign creditors in 2006 and build two of such refineries within 2012 in readiness for subsidy removal.

The management of these new refineries can be contracted out to the technical partners for 50 years while Nigerians acquire technical and managerial competence in the interim.

On the existing refineries federal government should assign the responsibility for their maintenance to those companies that built them in the first place. The output of the local refineries will then be sold at local market rate- no PEF, no imported inflation! If new refineries are built, old ones are working and crude oil is available at market rate; fuels from them are sold at market prices, private investors would be persuaded to invest in refineries.

But there is a huge challenge. If fuel subsidy is removed, savings of N1.2trillion be made and to be used for what? It is very clear in my mind that the governors, ministers, legislators and politicians will ultimately embezzle the money. The number of ex-Governors and former ministers in court over corruption charges justifies my expectations. National Assembly members will earn N30 million a month for the very hard work they do.

Proceeds of subsidy removed will now end up in the pockets of politicians rather than in the hands of the private sector boys; it is mere abracadabra! Fuel subsidy removal in Nigeria is always preceded by so much turmoil. Government then promises palliatives to calm frayed nerves.

When President Ibrahim Babangida removed subsidy in 1987 he set up DFRRI and it failed. He then set up OMPADEC and it also failed. It was only General Sani Abacha that succeeded in transferring subsidy removal benefits to Nigerians through the instrumentality of PTF. All the promises made by President Olusegun Obasanjo on the use of subsidy proceeds failed to materialise. So President Goodluck Jonathan needs to tell us what he wants to do with proceeds of removed subsidy and the framework to apply. State Governors must pledge to remove the inglorious immunity clause before subsidy is removed.

We have to police governors more closely. But is it timely to remove fuel subsidy? Are we inviting chaos of the Arab type? My honest advice is to ask federal government to properly run existing refineries and build two or more refineries in the next 12 months before it fully removes subsidies. It should abolish PEF in the first instance and sell locally produced petrol at its true cost plus graduated marketers’ margin to take of distance from refineries’ location.

Oil majors and independents can import fuel by themselves without interfering with Nigeria’s crude export and such fuel is acquired by PPMC based on need and sold the same price as locally produced petrol, thereby reducing the subsidy elements in fuel price. When other preconditions are met subsidy can be finally removed.

Lawson Omokhodion  is former MD, of Liberty Bank

http://www.vanguardngr.com/2011/10/the-inside-story-of-petroleum-subsidy-saga/

Very handsome fella! Congratulations Enyojo!!

https://www.divaglitter.com/graphic/cat/congrats-comments/its_a_boy.gif

werepeLeri:



and bingo - within one week - Boko Haram will be forgotten.

In your dreams -

Your measures are childish and hold no water.
LOL.

How old are you? 15? 17? 18? You're extremely childish and foolish. If you've already made up your mind on how the problem should be resolved, you need not put up a topic asking for people's opinion only to turn around calling them names.

If you're matured enough, you'll know the way to tackle a problem is to begin and not to stand around waiting for US and Britain to tell us what to do. Need I remind you that you have not provided your own solution on your own thread even if mine is 'childish'. Every goat, mule and donkey can criticise ideas but it takes real men with brain to come up with one. Try to grow a brain ar-sehole! I'll attach the tag 'imbe-cile' to your username from now on and I'll avoid you because I dont engage imbe-ciles!

You're trying to nip Boko Haram in the mud! lol

Terrorism is a new challenge for our police and SSS. I doubt if you can teach the old men in those organisations new tricks no matter what training you give them. What I will do if I were JEG is to replace the heads of those organisation with people with required experience wherever they may be found not necessarily coming through the ranks of the Police and SSS. I will look for people with excellent track record from Directorate of Military Intelligence (DMI), Nigerians with similar experince from FBI, NYPD, MET, Nigerians in senior position in Global Private Security organisations, etc. I will then give them the freehand to appoint their direct reports. With this measures, I will hope to transform (from top to down the ranks) the Nigerian Police and SSS for the challenges of the  21st century. Ofcourse their will be polical oppositions to these measures but those oppositions are not insurmountable.

All the foregoing are based on the assumption that GEJ has the political will and balls to fight the terrorism menace because all measures will fail without the guaranteed polical backing of the president.

Nugwax:
FG appeals to Libyan rebels to stop killing Nigerians
http://www.punchng.com/Articl.aspx?theartic=Art20110902663843

Thank God that they are finally seeing the light!

PROUD-IGBO:
It's in situations like this that Nigeria and Ghana could have worked together. That's if they had proactive leadership. They could have - with NATO support - sent a couple of military planes and helicopters to evacuate ALL West Africans stuck in that hell hole. It's not rocket science.

I can't agree more. You'll expect the sub-Saharan African countries to be highly vocal about this sorry situation, speaking with one voice.

tpia@:
would like to know more about this.

Nigeria took part in the East African campaign, considered as an extension of North African campaign, to get rid of Italians and Germans.
http://www.u-s-history.com/pages/h1727.html
http://en.wikipedia.org/wiki/Italian_Libya
http://en.wikipedia.org/wiki/North_African_Campaign
http://en.wikipedia.org/wiki/Royal_West_African_Frontier_Force

maclatunji:
One would have expected the Nigerian Government to obtain guarantees from the NTC on the safety of Nigerians and other black people before recognizing it as the sole representative of the Libyan people. However, Brother Joe is very eager to be in the good books of the Americans and Brits in particular that the safety of his own citizens is a secondary consideration.



Imagine, it is now journalists that are saving Nigerians, where is the Federal Government?

It is quite sad. I cant help but question the intelligence and CV of those advising brother Jona about foreign policy. Either they know something that we don't, or they clueless with only paper qualifications or brother Jona just ignores their counsel and places more trust in the American and British diplomats. In any case, brother Jona needs to seat up and understand that his allegiance should first be to Nigerians (and Nigerian interests) and not to any other third party country (no matter how powerful).

KnowAll:
Daily Telegraph reports that the victims include Nigerians, black Libyans and other citizens of sub-Saharan African


They are even killing their own people. I thought the head of the Army of  the Transitional Govt is Black or he looks Black to me?


see picture of the man behind the NTC BOSS
http://search.independent.co.uk/topic/transitional-council-air-strikes

Sounds to me like the rebellion has given the NTC militiamen and avenue to express their deep seated racism against black people. If one of their commanders is indeed black (i doubt), he probably soon be assassinated accused of being sympathetic to Ghadafi.

"Those who cannot remember the past are condemned to repeat it."
George Santayana

'Whoever wishes to foresee the future must consult the past; for human events ever resemble those of preceding times. This arises from the fact that they are produced by men who ever have been, and ever shall be, animated by the same passions, and thus they necessarily have the same results.'
- Machiavelli

“It is not worthwhile to try to keep history from repeating itself, for man's character will always make the preventing of the repetitions impossible”
Mark Twain

It is quite amusing to find out that a topic about 'Yoruba Elders' complaining to Jonathan is drawing so much bile from most of the ibo posters on this topic. I hope that the hatred for the Yorubas shown here does not mirror the hatred shown towards Yorubas by Ibos on the streets of Lagos. If this bile is already being expressed on the streets of Lagos, I can safely assert that the grounds of the 60s Kano pogroms against the ibo that led to the civil war has been prepared, only waiting for a trigger or match to light up a conflagration.  With the rate at which ibo teenagers are looking for trouble here we might have a repetition of history coming up, probably triggered by something as silly as a bloody quarrel between a Yoruba man and an ibo man on the street Lagos and people capitalizing on that to release their pent up frustrations against the ibos. The only difference I can foresee between the impending history and that of the 60s is that we do not have strong regions today as we had then and there is no Ojukwu or Awolowo figure today. Coming conflicts (if it happens) might not lead to an all out civil war. It will only lead to a regime change with the 'military hawks' blaming the growing insecurity for the need to strike and restore order. Thereafter we'll start an endless repetition of our most recent history.

One will expect the Nigerian Government to investigate some of these claims and make moves to protect its citizens caught up in the Libyan violence. Instaed, the Government is 'jumping the gun' to recognize the Libyan NTC!

[url=http://punchng.com/images/September/Thursday/pix20110901131320.jpg[/img]]https://punchng.com/images/September/Thursday/pix20110901131320.jpg[/url]

Reports out of Libya say that rebels of the National Transition Council are killing black Africans


Daily Telegraph reports that the victims include Nigerians, black Libyans and other citizens of sub-Saharan African.


It was said that no fewer than 20 black men were found dead outside Col Gaddafi’s compound after Libyan rebels captured Tripoli. Their hands were tied behind their backs and some of them had been shot in the head.


On the road south out of Tripoli, about 200 black people were also said to be hiding in a small encampment made of two small outbuildings shielded by a small wall and a metal door. Most of them were also Nigerians, some were Ghanaian.


Amnesty International said it was told that between one third and half of those detained were from sub-Saharan Africa.


“An Amnesty International delegation visiting the Central Tripoli Hospital witnessed three Thuwwar revolutionaries, as the opposition fighters are commonly known, dragging a black patient from the western town of Tawargha from his bed and detaining him.


“The Thuwwar said the man would be taken to Misrata for questioning. Two other black Libyans receiving treatment in the hospital for gunshot wounds were warned by the anti-Gaddafi forces that their turn was coming,” a statement by the group statement said.


Sydney Morning Herald reports that the ousted Libyan leader employed nationals from different Africans nations as part of a special protection force.


Scores of black men were arrested during the battle for the Col Gaddafi stronghold of Abu Salim in Tripoli. According to reports, some migrants were said to be stranded near a seaside resort, others had fled the city.


However, Associated Press reports that the African Union Chairman, Jean Ping said the Libyan rebels may be indiscriminately killing black people because they have confused innocent migrant workers with mercenaries.


‘’The National Transitional Council seems to confuse black people with mercenaries,’’ Ping, said.


He added that this could be a reason the African Union had not recognised the opposition forces as Libya’s interim government. “One third of the population is black. They are killing people, normal workers, mistreating them,’’ he said.


However, Amnesty official, Claudio Cordone was quoted as saying: “We have to fear for what may be happening to detainees out of the sight of independent observers. Many risk reprisals as a result of allegations that Gaddafi forces used African mercenaries during the conflict.


“Amnesty welcomed calls by the NTC for its supporters to treat captives with dignity and to avoid revenge attacks. But the council must do more to ensure that their fighters do not abuse detainees, especially the most vulnerable ones such as black Libyans and sub-Saharan Africans.


Also Ping urged the new government should say something to condemn the killings. He said, ‘’We want to see a signal that the African workers will be evacuated.’’


Richard Sollom, deputy director of Physicians for Human Rights, who completed a fact-finding mission in Misrata in June also said, “Fighters engaging in abuses should be immediately removed from active duty, pending investigation. All crimes, no matter who committed them, should be investigated and those responsible brought to justice.”


Sollom said his Boston group knew of about 500 Darfuris who are desperately trying to get out of Libya, adding, “They very much fear for their lives because of the colour of their skin.”

http://punchng.com/Articl.aspx?theartic=Art20110901132193

mekaboy:


PLUTO I DONT BLAME YOU, YOU NAME TELL WHERE your TYPING FROM , IS THIS WHAT YOU CALL PATRIOTISM? DEPORTATION WITHOUT REASON?


IF NO BE SAY YOUR BRAIN DEY PLUTO ALREADY I FOR DEPORT U GO THERE.

I'm not going to join issues with you. You come across as an im-becile! You are beyond redemption!! Please relocate to your Ghana or the Atlantic Ocean and leave us Nigerians in peace!

I am very happy for this guy and his achievement. He must have worked very hard for it.

I can't help but marvel at the statistics of students of CU who got grades of 2.2 or higher. Over 95% (or is it the entire class sef?) of the population of the graduating class!  Obviosly very good marketing for CU. CU must have developed a formula for recruiting only clever students!! Federal and State Universities should learn the secret of CU's success!!! 

mekaboy:


I DONT SPEAK ILL ABOUT NIGERIA OR GHANA, WE ALL HAVE BAD EGGS ALL OVER THE WORLD. ALL I AM SAYING, IF THE GHANAIANS DEPORTED COMMITTED CRIMES MAKE IT KNOW TO THE PUBLIC. WHY SHOULD THE YORUBA GOVERNOR ORDER ARREST OF THE GHANAIANS AND DEPORT THEM WITHOUT EXPLANATION . IS IT RIGHT?

IF THEY ENGAGED IN ANY CRIMINAL ACT LET US KNOW. ITS AN UNCIVILIZED BEHAVIOR, DON'T THESES GOVERNORS HAVE ADVISERS ON PUBLIC RELATIONS AND INTERNATIONAL RELATIONS?

I MEAN WE ARE TALKING ABOUT NIGERIA'S IMAGE HERE, YOU CANT JUST WAKE UP ONE MORNING AND ORDER ARREST OF GHANAIANS , DEPORT THEM WITHOUT GIVING REASON, OUR REPUTATION AS A COUNTRY IS AT STAKE.

AND GOOD LUCK BETTER CALL THE YORUBA GOVERNORS TO ORDER

Shut your gub and nationalise to Ghana already! We need to start deporting some unpatriotic Nigerians to Ghana, Afganistan, Atlantic Ocean, anywhere!

Nigerians and their self-hate is very appalling! Look at the bile flowing based on an unsubstantiated news! How come the news is only on Ghannian blogs and not on any reputable Ghanaian or Nigerian newspaper? Didn't the papers carry news about when Lagos and Abuja deported other Nigerian non indigenes to their states? Did Jonathan complain then? And what if they deported Ghanaians? What is the big deal? What if they are criminals and destitute?

There is no big deal if the story is true! Ghana can do their worse. Is not like they like Nigerians before.

I didn't know that Computer Engineering graduates also find it difficult to get work even if it is not well paying. Why did you do the masters? What do you hope to achieve with it? You must have got a goal before you embarked on the masters.

Every work experience is relevant in the field of IT if you package it well and clearly identify the transferable skills. If you're already in in the UK doing Masters, do you currently do holiday jobs? What field? Even your experience in Insurance Marketing can be packaged for IT Sales and Marketing that can be very lucrative.  However, you'll still want to relevant IT certifications. For example if you want to sell networking devices, a CCNA might be useful.  A CEH might be useful for selling IT Security services. All the foregoing are just examples. At the end of the day, you're the only one that can determine what direction you want to take your career and what additional qualifications you need to achieve that.

The offer sounds like slavery unless you have been given assurance that you'll be allowed to start the 'promised' training from day one. Watch out for employment contracts that specifies that you can't start the promised training until you have 'served' for a specific number of months or your certificate will be withheld until you complete a specified number of years.

I'll advise you to go for it if you don't have a better option at the moment. After-all people with your training and education still spend money in these schools as full-time student after University education before full-time employment. Just take it like you're still undergoing training and have not started earning provided the restrictions I mentioned in the first paragraph do not apply. You do need a solid plan about what training you want to undertake and whether it will be a worthwhile investment. In addition you can't spend more than one year in such an establishment without cashing out on your enhanced skills or renegotiating your remuneration.

I had two friends who had something similar in two different very popular IT training companies. Both started out with Oracle OCP. During their training years, both added Oracle Developer qualification and one also added Java Developer while the other added Microsoft ASP development. By the time both joined the industry; 1yr and 11/2yr respectively later, they got roles more senior to their mates who started out from day one. Both are in Telecoms now doing very well and still maintaining their edge. I'm not saying you'll end up like them or end up in similar path. But you stand a good chance if you have similar drive and able to acquire advanced skills.

It is quite instructive to note that the power problems persist to a large extent because of continuity of policy/project after a change of administration. This is very surprising given the assumed cosy relationship between Yaradua and his predecessor. Power projects typically takes years and one administration might not be able to complete a large scale project within its lifetime. If there is a problem of continuity after a change of administration, then power problems might never be solved in Nigeria.

If GEJ is going to achieve anything meaningful in the short-time he his got, he'll rather have to privatise the sector, give the private investors iron-clad, irrevocable incentives and let the private sector worry about the power projects. Otherwise, he will just have to focus on power projects that can be completed during his tenure which other than privatisation, is not very much.

I write with regards to the column by Mr. Olusegun Adeniyi titled ‘Yar’Adua, Obasanjo and Power Sector’ which appeared on the back page of the 7th July 2011. Segun mentioned that one major problem the late President Umaru Musa Yar’Adua had was that his predecessor, President Olusegun Obasanjo did not give him a hand-over note, especially as concerned the power sector. While I confess that I do not know what form handover notes from one president to another takes (or should take) I am aware, however, that in the period between his election and the actual swearing in date, all government departments, ministries, parastatals, etc. made presentations to President-elect Yar’ Adua on their activities, structure, on-going projects, funding, what problems there were, etc. In addition to the presentation, they also submitted written reports, with then President Obasanjo in attendance and directing affairs. Questions were asked and clarifications made as necessary. I am not sure Segun had assumed duties at this time. Furthermore, shortly after resuming as President, apart from the presentation to him by Engr. Makoju, I, as coordinator of NIPP, also gave the new President a presentation on the NIPP. So I am convinced Yar’Adua had enough opportunities to get as much information about the sector as he would want, and to further continue to seek clarification as he needed.

President Yar’adua’s confusion as to the role of GE, as reported by Segun, did not need arise at all. NIPP consisted of contracts with companies in their areas of strength and comparative advantage. GE builds and sell generators and gas turbines and they were contracted to supply all the generators and gas turbines for the NIPP. They also had contracts to supply technical support for installation and commissioning to the respective Engineering-Procurement-and-Construction (EPC) contractors for all the power stations under the NIPP as well as the long-term service on the units.

Segun also gives the impression of apparent total confusion in the concept and implementation of the NIPP project, mentioning the non-availability of gas pipelines and gas, inadequacy of road bridges, etc. as examples. This is not the case. All these challenges mentioned are routine in power projects and are routinely overcome. In the case of NIPP, where gas pipelines and/or additional gas were required were identified before hand and contracts were awarded (or in the process of being awarded) for the pipelines when Yar’Adua got in charge. Negotiations were also held with NNPC and the oil companies and assurances were given that there would be gas when the power stations would be ready. Slips do occur when two parastatals are cooperating on a project. For example, Egbin power station was commissioned in 1986/87 almost two years before the gas pipeline from Utorogu to Lagos was completed. Something like this almost happened too when Olorunsogo (a.k.a Papalanto) was commissioned because the gas pipeline installation was still in progress, but NNPC were able to deliver gas from their pipeline feeding WAPCO’s cement plant at Ewekoro. And that arrangement remained in place for quite some months after that. The suggestion by Segun that a tanker was used to deliver LPG for the commissioning is preposterous. A typical NEPA gas turbine consumes an average of between ten and twenty-five million standard cubic feet of natural gas per day at a pressure well above fifteen bars. Use of tankers could not meet up with this rate of consumption and delivery pressure.

As for the inadequacy of some bridges to support the weight of turbine generators crossing over them and ferrying by barge having to be resorted to, again this is not such a strange situation and it is a problem that is being solved every time a power station has been built inland in Nigeria, beginning from Kainji (1968) through Shiroro, and Jebba (early 1980’s), Geregu (2006), etc. when railway was used where available, and some sections of road had to be improved and bridges reinforced to allow road transportation. Hard and fast provisions were not made in the NIPP contracts because the condition of roads and bridges change all the time and roads and bridges that may be okay or nearly so may deteriorate drastically between tender submission and contract award and implementation. Contractors are therefore usually wary about making firm commitments on such details. The provisional sums to meet such incidental expenses as these would entail were included in the contingencies sum in the funds approved for the NIPP project management which unfortunately was not released to the project team by the time the generators started arriving because of Yar’Adua’s hesitancy.

True, the gas turbines arrived well ahead of the site works completion. This was because there was a huge worldwide demand for gas turbines at the time the contracts were awarded and all reputable manufacturers all over the world had very long queues and tight delivery schedules. GE had a window in their manufacturing programmes at that time, and it was either we took advantage of it or be prepared to wait years to be served. If the disruptions of the Yar’Adua era did not take place, the units would have been delivered to respective sites where GE had contractual obligation for regular inspection and preservation pending their installation and commissioning instead of being left at the ports.

[b]The controversy over how much had actually been expended on the NIPP did not need arise at all. Yar’Adua had access to all the people who would have given him the true picture if he would believe them. He should have known that telling the world (and Nigerians) that $10 billion had been expended on power projects and “there was nothing to show for it” would raise the type of reaction he got. There is a huge difference between $10 billion and $5 billion. And if the functional available generating capacity in the country was raised from about 1500MW (15 available generating units) in 2000 to 4000MW (36 available generating units) with constant daily generation above 3000MW from end of 2001 even right up to 2007 when Yar’Adua came, and contracts were in place and being implemented to raise that capacity to about 8000MW with corresponding reinforcement of the transmission and distribution networks to all states of the country under the NIPP, the $5 billion was more than justified. I find it difficult to see how all these could be swept off as amounting to “nothing to show for the expenditure that had been committed”. And this is more so when the bulk of the $2.2 billion for NIPP was in letters-of-credit opened by the CBN and still then largely not yet drawn down.[/b]

Segun claimed that “while Somolu was correct (in his assertion that only $5.1 billion had been spent) so was Yar’Adua who was talking about the general expenditure (a figure that turned out to be more than $10 billion)”. Now what is “general expenditure”? At my “trial” in the president’s office, after Yar’Adua had raised the poser “exactly how much was really spent?” and the Accountant General of the Federation, DanKwabo (current Governor of Gombe State) had given figures identical to mine, the president appeared rattled before other people present – Minister of Finance, Permanent Secretary (Power), and some others – supplied the rest of the so-called general expenditure. These, according to them, included the amount spent by the oil companies on their joint-venture IPP’s (put at “not less than $2 billion”); the budgetary allocation to Energy Commission of Nigeria (put at “some millions of dollars”); and NEPA’s internally generated revenue (put at “not less than $6 billion). I was amused and angry at the same time. Angry that Yar’Adua was only trying to find out exactly how much had been spent after he had been making his explosive public statement, and amused that he believed those who came to his aid by supplying what were unsubstantiated and unaudited, and irrelevant (in the circumstances) expenditure figures. I wonder why they had not also included all the money Nigerians spend to acquire and run standby generators as part of the “general expenditure on power”.

I negotiated the power purchase agreement for Agip’s Okpai NIPP, the only joint venture IPP then actualized and in operation and knew the cost of their installation was about $500 - $600 million, and NNPC’s share of this cost (which at that time had not been paid) would only be about half of this figure, very far from $2 billion. Including the Energy Commission of Nigeria’s expenses was nonsensical and deliberate falsehood to say the least. The Commission is a research institute and had nothing to do directly with the power sector. Also just as ridiculous was the mention of NEPA’s internally generated revenue in the period which is normally spent to pay staff salaries and other emolument (pension, medicare), offices rental all over the country for marketing units and fault reporting centres, operation-vehicles acquisition and running costs, gas purchases and general maintenance of the system, etc. These expenditures would still have had to be met whether there were new facilities built or not. They are fixed overheads. It is like someone complaining that his under-sized generator cannot carry his house-load despite that he spends so much on maintenance and diesel. Until he buys a bigger generator or additional one, all of his house-load will still remain unserved.

Segun then added that Somolu intervened in a manner that created the impression Yar’ Adua had accused his predecessor of corruption in handling the NIPP. This is not true at all. First I did not make a public statement. I only wrote to the Chief Economic Adviser, Mr Tanimu Yakubu, who had made a presentation when GE visited Yar’Adua that $10 billion had been spent in the power sector and there was nothing to show for it (similar to what Yar’Adua himself said) to tell him the records available to me did not support such assertion, and I supplied a list of all contracts awarded in the power sector by NEPA and the Presidency on NIPP which totaled $5.16 billion. THISDAY newspaper carried my letter verbatim after I was fired by Yar’ Adua (I don’t know their source) on 19th February 2008, and it is clear what I said or what impression I created by my memo.

As for me making an apology for my letter, I did not make any. After all the people at my “trial” had supplied all their spurious figures of “general expenditure in the power sector” showing that the expenditure was “more than the $5.16 billion I had quoted, Yar’Adua then asked what I had to say, I told him I did not see the need for this meeting and that all I would have expected was a reply to my memo pointing out what other expenditures I might not have known about so we could examine their veracity. After all Tanimu and I were colleagues in the Presidency. This made all the people burst out with shouts of “hear what he is saying instead of apologizing”. But I stood my ground since I did not see what there was to apologize about and kept repeating my statement till the President then said the meeting was over and everybody dispersed. Yes I stayed behind to tell the president that it was unfortunate he felt embarrassed about the whole controversy but I assured him my memo could not have been the cause of any press controversy since it was an internal memo. Beyond that I offered no apology for my position. I could not have. There was nothing to apologize for. I knew I was right. The Accountant-General of the Federation confirmed I was right. Even Segun in his column said that much. Why then would I be apologizing?

• Engr. Somolu, former Senior Special Assistant to Presidents Obasanjo and Yar’Adua on Power Sector Reform, and Coordinator of NIPP, wrote in from Lagos

http://www.thisdaylive.com/articles/still-on-infrastructure-deficits-2-/95455/

I think the Igbos are unto something here! Brilliant!! Head or tail, they'll win this one.  

An Igbo controlled enclave within Yoruba region is not going to materialise. However, the following scenarios are possible:

1. Igbos shout loud enough for the Festac state and provoke an attack from their Yoruba hosts. Lagos gets burned by ensuing violence and Igbo gets one of their desired outcome of seeing Lagos (competitor) destroyed. Igbo wins.  

2. Other Nigerian ethnic groups gets cut up in the ensuing conflagration and this result in wider Nigerian conflict and disintegration. Igbo wins.  

Ife-Modakeke war (between two Yoruba groups) started in a similar fashion. From the ensuing violence and friends, inlaws, neigbours killing each other, Ife has never been the same again since that war. I wonder how this agitation for for Festac state by Igbos based on assumed ethnic advantages will pan out. I'll watch this space.

houvest:
Ok Thanks Pluto. My bad. I thought the op said Special Advisers. For Special Assistants, it  still appears  a bit unwieldy but their job descriptions are clear and the 100 you mentioned include committee members. They are not all SAs. However I hope he carried out thorough investigations to make sure that the 419 guys are not recycled surreptitiously.

I have modified my post. Thanks.

See their names and portfolios here:

http://www.elombah.com/index.php?option=com_content&view=article&id=7451:imo-rochas-names-15-ssa-32-sa-11-aides-committe-members&catid=3:newsflash&Itemid=57

http://imostate.blog.com/2011/07/19/list-of-special-assistants-to-governor-okorocha-and-their-portfolios/

Why not try to work in the UK before you return? What you're likely to find is that companies doing real Healthcare Consulting in Nigeria are companies like MSH, GE Healthcare etc with no permanent base in Nigeria but who are likely to come into Nigeria temporarily to execute projects mainly from WHO, UNESCO, UN, Federal and State Governments and for a small number of private firms. You are also likely to find Accenture and the big 4 accounting firms competing for a small number of projects if the scope of work falls within their areas of competence. I think you can look for opportunities in this companies. Accenture and the big 4 are likely to take you on as a 'General consultant' and not a 'Healthcare Consultant' and deploy you based on what job is available which might not necessarily be in healthcare.

If you must work as a Healthcare consultant and you can't get GE, MSC, Siemens, etc, then you might need to start your own company and you need relevant work experience to do that effectively. If you're able to start your company, the market in Nigeria is virgin - I should know because I ran a consulting company in that sector briefly before leaving Nigeria. I also worked in the sector outside Nigeria briefly and observed what could be done in Nigeria differently.

The biggest spenders in Nigeria are the Governments followed by the UN affiliates and then a few Hospital chains and your project references will go a long way.

The tribalism of most of you guys will never allow you to be objective. You guys keep shouting that Aganga is not on the same level with those on the list simply because he is the only non-igbo on that list. Apart of Okonjo, Aganga is the only person of note on the list to have achieved anything of note in their professional carreer. His only mistake was opting to serve in a Jonathan administration with its prolifigracy (based on electoral ambition) and Jonathan's inability to checkmate the greed of lawmakers was expenses are so much that there is not much money left for development. Ofcourse Ngozi is now making the same mistake as Aganga, and we wait to see how she becomes rubbished.

One thing is clear. Jonathan is not Obasanjo. Those guys achieve some level of success in the Obasanjo administration only because they have the big man behind them. Let us see if they are able to replicate the same level of success with Jona boy! Infact they will be lucky if they are able to escape Jonathan's administration with their integrity intact.

Tinapa was doomed from inception. It was designed to fail. It was a typical Nigeria project where the concept was not thought through before rushing to implementation.

Tinapa was set up as a trade free zone. The full terms and condition can be found here
http://tinapa.com.ng/leisure/uploads/51c79402-1ff8-a23d.pdf
Part 4, General regulations is particularly interesting.
Based on the general regulation setting up Tinapa, it can be likened to a foreign country. It implies that while there is no restriction on a foreign company selling something that is on Nigeria's import prohibition list, a Nigerian living in Calabar cannot travel to Tinapa and buy such an item without it being impounded by Customs.

A friend working for a Dutch textile company with West African base in Ghana once told me of problems they encountered with Tinapa. She told me that there biggest customers prior to Obasanjo ban on Importation of textile were dealers coming from Nigeria. This Nigerians usually place massive orders including orders for customised african print. Obasanjos ban disrupted the Nigerian business and the company ran into serious trouble. One of the things the company considered was opening an outlet in Tinapa with the hope that they would be able to retain the Nigerian business through Tinapa since it is in Nigeria. However, they still could not sell to there customers through Tinapa because customs considered items originating from Tinapa into Nigeria as importation.

The question then arise about who the target market for Tinapa is. Is it
1. Nigerians living in Nigeria so that they actually go to Tinapa for shopping instead of places like Dubai?
2. Is it for foreigners so that they can travel into Tinapa for shopping and travel out again immediately after shopping?

If you want to target 1 above, you need fool  proof plan on how to convince the biggest brands the world to open outlets in Tinapa and also have fool proof plan on how to ensure that they make sales that will rival that of an equivalent outlet in places like Dubai. You need to convince Nigerians everywhere in Nigeria that it is actually worthwhile to go to Tinapa instead of places like Dubai. This is your typical chicken and egg situation. You need sellers to get buyers. You need buyers to get sellers. You also need efficient transport system from all places within Nigeria to Tinapa.

If you want to target 2 above, then you need to have an international airport within Tinapa otherwise the foreign visitors might have to pay Nigerian customs duty and other local rates when they leave Tinapa en-route to an International Airport in say Lagos, PH or Abuja. Paying local duty or rate will not be acceptable.

The project can still be salvaged. The objectives of the project need to be revisited and the project refocussed on more viable objectives and all vital enablers of the project put in place.

It is very dumb to suggest that the Sw should return pdp political office holders simply because they are pdp irrespective of their performance in governance. This one of the reasons why Nigeria is in its sorry state. Nigeria will be a better country if every region practice sw brand of politics where mediocrity is purnished and good performance rewarded. Pdp might have performed well in other regions but they did not in the sw.

@alh harem

I wonder why you started this topic. I guess u are hoping for another yoruba-igbo e-war. Your North East is not in the National political equaton despiite voting pdp. Why not reflect this in the topic as well as it is alluded to in the article?

The Robert O. Agbede Scholarship Pledges One Million Dollars to S.T.E. M. Education

The Scholarship will help minority students globally pursue their educational dreams

Robert O. Agbede, Chester's president and CEO announces a major investment that will positively impact the lives of thousands of African American students throughout the United States, Africa and the Caribbean. Mr. Agbede is pledging one million dollars to S.T.E.M. Education through "The Robert O. Agbede Scholarship" that is designed to help minority undergraduate students pursuing degrees in science, technology, engineering and/or mathematics. "I believe a solid education is the greatest equalizer and it helps to break down barriers. The goal is simple, to improve educational opportunities for African American students in the United States, especially those students attending Historically Black Colleges and to reach students in Africa and the Caribbean," said Agbede.

Agbede says on a personal level he has a deep desire to help students pursue their educational goals because he is so thankful for all those individuals who helped him along his pathway to success. As a Lagos, Nigerian native, Agbede recalls being able to attend a school established by the Ford Foundation in his country, and he attributes that opportunity with helping to prepare him for the success that he has achieved today. He is dedicated to making sure minority students have the same hope and opportunity that he had growing up and that is why he plans to contribute one hundred thousand dollars per year for the next ten years to help students pursue their dreams.

At Chester Engineers, Agbede has developed a work culture that emphasizes the importance of giving back, viewing corporate social responsibility as good business. Chester engages with small/minority businesses and students in areas of mentoring. The Robert O. Agbede Scholarship at the University of Pittsburgh benefits African American students pursuing engineering degrees. Also at the University of Pittsburgh, the Robert O. Agbede Annual Diversity Award encourages recruitment and retention of African American faculty and students. Chester Endowments at the University of Pittsburgh and Carnegie Mellon University, presently valued at over 3 million dollars, support African American student enrollment and retention primarily in Engineering and Sciences.

http://www.chester-engineers.com/about/our-clients/138

Tinubu's propaganda machine at work. The article looks like it was commissioned by Tinubu to explain the reason for the ACN house vote

PStylish:
[b]@

7.No matter what Tinubu does, he can never kill the PDP in the SW.SW PDP will always be a formidable opposition

in the region to serve as check and balance.

I have to agree with you. You can't get opposition out of Southwest whether it is ACN, PDP, LP or any other party. That is one of the things I like about Southwest politics. You are rewarded for a measure of good performance and punished for mediocre performance. PDP just got punished for mediocre performance while ACN piggy backed on perceived good performance in Lagos. Southwest people only want good governance and development. LP is doing well in Ondo state. They have to knowing the competition for PDP and ACN. One of the beauty of opposition. I only wish the new ACN leadership will perform in there respective states. It is going to be tough knowing people expect the level of project development going on in Lagos while most of the new ACN states might not have the resources of the geographic advantage that Lagos has. 

I don't get all the praise singing about BAT (campaign for Asiwaju of Yorubaland) or his arrogance in some of his statements in personally claiming responsibility for the action of a party. It is possible that the arrogance of ACN will approach the level of the previous AD leadership and the outgoing PDP leadership and this will lead to their dropping the ball and ultimate decimation in the southwest. ACN needs to deliver before we start praising Tinubu. All the propaganda tool (newspapers, tv stations and radio stations) being setup by the ACN hierarchy will not save them from being swept out in the next election cycle if they did not perform.

Deep Sight:
@ Ediclove -

You make arguments while deliberately refusing to address the very poignant examples raised by kaisem. I thus am not able to discern any substance in the wordy but insubstantial posts you have made above. For the avoidance of doubt let me just make this clear: I do not support illegality, and it is not my view that kaisem is advocating illegality either. Far from it.

The simple point sought to be made is that the puristic legalism you are advocating amounts to expecting an Utopia. Let me assure you that there has never been any place in the history of statecraft where absolute and untainted puristic legalism has been practiced without flaw. Your arguments are thus most black-and-white, and thus unsuitable, given that we live in a world with many muddied grey areas.

Now i do not want you to make another post which will skillfully evade the clear and succint examples rasied. Therefore simply answer me in short, concise and succint words the following questions. Do not beat about the bush -

1. Was the invasion of Pakistani airspace without permission ffrom the Pakistani government lawful?

2. Was it necessary?

3. Was the Acting Presidency of Goodluck Jonathan birthed according to the strict letter of the law?

4. Was it necessary?

5. Was the dislodgement of Laurent Gbago in Cote-de-ivoire carried out in a lawful manner?

6. Was it necessary?

Point: Puristic legalism does not always address jungle situations thrown up by jungle politics. There is an old saying that drastic situations require drastic remedies. There is also another old saying that the law was made for man, and not man for the law.

To answer your questions:

1. You can't just rely on headlines. You can't be absolutely sure that Pakistan were not warned just before the invasion but might have agreed with the US to maintain ignorance to prevent public backlash. After-all some residents of said the armed forces warned them to stay indoors during the operation.
2. Even the National Assembly has to hurriedly change law to enable Jonathan become acting president.
3.Laurent Gbagbo's term as president expired 5 years ago. He lost an election that has not been validly cancelled.

Why are you trying to justify the unjustifiable? Even if your points were valid, if the law was raped somewhere for example Tutsi and Hutus in Burundi, we should do the same because there is a precedent. By your arguments, the holocaust performed by the Nazis was justifiable because it has the backing of the 'people' and was 'necessary' to take Germany back from the people who hijacked its economy. By the same token, all the pogroms in the north of Nigeria where justifiable because it enjoyed widespread support.

Like Edicolove stated, the only safe place for everybody is the law. Without the law, we are all doomed and will descend to the jungle of animal society where the fittest survive and the weakest are killed off. Rochas is setting a bad precedent. A 'governor-elect' will soon be giving order for the arrest of a 'sitting-governor'. It is surprising that Rochas a few years ago wanted to be president of Nigeria. I hope he no longer nurses that ambition.

gokuu:
If PDP wants to bounce back in the SW, it has to dismantle the ACN machinery in lagos. The PDP can accomplish this by playing the 'ethnic card', maybe fielding a 'charismatic' & 'sellable' igbo man as governor and an 'hausa man' as deputy governor & covertly sponsor some one like jimi agbaje on the platform of labour party to break bloc 'yoruba' votes, with this it should be assured of over 1/3 of state assembly seats, making it able to ground any ACN govt, so as to discourage the electorate, with that, it can stage its comeback!

It is a brilliant idea but one that is fraught with risks. Remember that 'ethnic card' is a double-edged sword and a place like Lagos can quickly become somewhere like Jos/Plateau because of 'ethnic cards'.