Business
Why We Shut Down PHRC, PPMC
Operations of the Petroleum Downstream Sector in Rivers State got ruffled last week, following a face-off between the Independent Petroleum Marketers Association (IPMAN), the management of the Port Harcourt Refining Company (PHRC) and the Petroleum Products Marketing Company (PPMC).
Problem started when the leadership of IPMAN mobilised its members last Wednesday to stage a peaceful protest at the premises of the PHRC and PPMC in Port Harcourt to register their discontent over perceived institutional breaches and inefficiencies on the part of the companies to discharge their statutory functions.
The protest which commenced in the early hours of Wednesday, last week, shut down the operations of the two federal agencies, as the aggrieved IPMAN members barricaded the entrances to the two companies with placards of varying inscriptions to press home their demands. Some of the placards read thus: “Diversion of our products is a crime,” “Private depots owners steal “PPMC products with the backing of NNPC staff,” “We want products not excuses, “ PHRC, PPMC encouraging illegal bunkering.”
Since then Motorists and other users of petroleum products have been thrown into a state of apprehension and panic over a looming fuel scarcity following the shutdown and the threat of IPMAN and other related organisations to down tool if the PHRC and PPMC failed to heed their demands.
But IPMAN has insisted that its actions as a body was justifiable as it was billed to expose the sharp practices in the sector which have undermined their business concerns and service delivery to the public.
The major bone of contention, according to the IPMAN leadership, is that for over two years now, the PHRC and PPMC have failed to produce AGO(diesel)or DPR(kerosine) thereby making the independent marketers to depend on adulterated diesel (kpoofire) to fuel their haulage trucks before they could load the “imported PMS((Petrol) made available at the deport.”
This tendency, according to the IPMAN leadership, was an indication that PHRC and PPMC were encouraging illegal bunkering.
Rivers State Chairman of lPMAN, Comrade Emmanuel Inimgba, who spoke with The Tide in an exclusive interview prior to the protest, disclosed that the dependence of the independent marketers on adulterated diesel to fuel their trucks in the loading of products was destructive on the engines and also exposed them to health dangers and other associated hazards.
The Rivers IPMAN said petroleum products sent from Lagos and Warri to Port Harcourt were diverted to private depots in Port Harcourt which are mostly owned by PPMC and NNPC management, and thus deny the independent marketers acces to the products at PPMC depot in Port Harcourt.
He said; “For more than two years now we haven’t been loading any products apart from imported PMS, we don’t have access to diesel and kerosene and we are constraint to depend on illegally refined products to power our loading trucks. This has resulted in very high cost of operation on our part and affected the delivery of our services to the public, we are not going to load from those private depots where our products are diverted to until the products are supplied to the right depot.”
Comrade lnimgba who described the operations and services of IPMAN as capital intensive, said most of the independent marketers obtained loan facilities from banks to run their businesses and as such were under tight obligation to pay back the funds.
He regretted the perceived “indifference” of the regulatory agency in the Petroleum industry, i.e the Department of Petroleum Resources (DPR) which according to him seem to gloss over the anomalies in the activities of the downstream sector in Rivers State despite several overtures made by IPMAN and other affected stakeholders to address the rising challenges.
He pointed out that the protest was to expose the; “shoddy deals going on in the down stream sector and to bring to the fore the sad experiences of the independent marketers.”
He called on the DPR to live up to its statutory responsibilities by creating the enabling environment and ensuring transparency in the process, especially in products availability, arbitrary increase in prices of products and renewal operational licenses.
Comrade lnimgba also raised concern over the growing spate of insecurity against the investment of the independent marketers, noting that filling stations have become targets of incessant robbery, especially in the night.
While applauding the Rivers State Governor for his efforts in promoting the security of lives and properties in the state, he appealed to the government to create a special police division to protect the investments of the independent marketers to enable them render services to the public with relative ease.
“ Filling station owners have become endangered species, we can’t sell at night without threats of robbery attack.
The use of POS has helped to an extent but we want the government to come to our aid by creating a special police division to protect our operations. This will go a long way to address the challenges of insecurity we are experiencing,” he stated.
The IPMAN chairman also commented on the state of refineries in the country, particularly the Port Harcourt Refinery which he said was completely dysfunctional. He called on the Federal Government to fix the ailing refineries and make them effective in product delivery.
Apart from revamping the existing refineries, he said the Federal Government should also make real its promise of building modular refineries in the Niger Delta Region so as to give the people of the oil rich region a sense of active participation in the oil and gas industry as well as enhance massive economic growth and expansion in the industry.
He contended that the building of modular refineries in the Niger Delta would address the issues of unemployment and other social vices among the youth.
He said; “when modular refineries are created in the Niger Delta, most youths who engage in illegal bunkering will channel their talents and energies in a more positive way as their technological capacities will be fully developed.”
Comrade Inimgba said that existing policies in the Nigeria oil and gas sector were tailored to the disadvantage of the Niger Delta people. He regretted that despite the enormous contributions of the region to the development of national economy the region still suffered huge development neglects.
He, therefore, called for a review of Nigerias’ petroleum laws to reflect the imperatives of justice by giving the people of the Niger Delta assess to their natural resources for the development of the region.
“I want to correct the erroneous impression that the people of the Niger Delta are not fit to play roles in the oil and gas industry, we have qualified technologists and technocrats in the Niger Delta. We want the Federal Government to allocate oil blocks to indigenes of the Niger Delta, this will give the people a sense of belonging, create direct development impact in the region and correct the imbalances in the oil and gas sector. “
The lPMAN chairman was also irked over the issue of pipeline vandalisation and explosions which had become a recurrent event in the Niger Delta region, resulting in wastages of lives and revenue.
He said IPMAN as a body was totally against pipeline vandalisation which is considered as sabotage, adding that the association has contributed its quota towards addressing the menace, such as constitution of special anti-pipeline vandalisation committee with the mandate to work with relevant stakeholders to address the endemic vice.
He pointed out that the issue of pipeline vandalisation can not be tackled on a shallow bases except the root cause is addressed.
“IPMAN as a body condemns pipeline vandalisation in its entirety, it’s a menace that have brought incalculable losses as people are killed in the process while revenue is lost.These pipelines pass through communities, the government should liase with communities on the surveillance and security of the pipelines. Also, obsolete oil pipelines in the Niger Delta should be replaced to avoid leakages and possible explosion,” he said.
Speaking on the activities of multinationals corporations and International Oil and Gas Companies (IOCS) in the Niger Delta, the oil and gas expert described the modus operandi of most of the companies as “defective and bereft of international best Practices.”
He expressed disappointment over the fact that “ most of the companies operating in the Niger Delta deny the people employment quotas or simply engage them without stipulated employment policies or condition of service and subject them to slave labour and caualisation.”
He also kicked against the relocation of the corporate headquarters of the multinationals from the Niger Delta to Lagos on the excuse of insecurity, saying that such excuses were calculated ploys to slight the region economically.
Taneh Beemene
Business
NCDMB Recommits To Youths’ Capacity Building
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola-Ogbe, has reeled out initiatives evolved by the Board in its contribution towards capacity building for youths across the country.
The NCDMB Scribe revealed this recently at the 2024 Practical Nigerian Content (PNC) Youth Forum held in Yenagoa, the Bayelsa State capital.
Tagged “empowering the future: unlocking the opportunities in the Niger Delta oil and gas sector”, the event featured three thematic lecture series delivered by the founder and leader of the Niger Delta Peace Coalition (NDPC), Mr. Zik Gbemre, the Bayelsa State Commissioner for Youths Development, Mr. Alfred Kemepado Nimizigha, and the Chief Executive Officer, PE Energy ltd., Mr Daere Akabo.
Ogbe, who was represented by the Manager, Capacity Building of the Board, Mr. Olugbenga Sheba, noted that the NCDMB has recently partnered the Nigerian Liquified Natural Gas (NLNG) to commence the Nigerian Content Human Capacity Development (NC-HCD) in the oil and gas sector for the training of 331 young graduates.
“As you already know, the NCDMB was established by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.
“Our mandate is to develop human capabilities and material capacities in the Nigerian oil and gas industry, and to monitor and enforce compliance with the provisions of the act”, the NCDMB Scribe said.
“The theme for this year’s youth event is ‘Empowering the future: Unlocking the opportunities in the Niger Delta Oil and Gas Sector’. This theme speaks to our determination and ongoing efforts to introduce youths from the Niger Delta to opportunities that abound in the oil and gas industry.
“Few weeks ago, we partnered the NLNG to kick start the Nigerian Content Human Capacity Development (NC-HCD) basic training programme for a total of 331 young graduates. The training covers ICT, Engineering, Welding and Fabrication, Non-destructive Testing (NDT), Lifting and working at Height, Quality Management Systems, Marine and offshore services and Facility Management and Maintenance.
“We also organised training for youths with the Industrial Training Fund (ITF), WalterSmith Petroleum, and other organizations. And as part of the NCDMB’s initiatives in the Niger Delta, we’ve developed two oil and gas parks at Emeyal one in Ogbia Local Government Area of Bayelsa State, and Odukpani in Cross River State”, he added.
By: Ariwera Ibibo-Howells, Yenagoa
Business
FGC, Warri Wins NCDMB, ICPC Maiden Anti-Corruption Schools Debate
The Federal Government College, Warri, Delta State, has won the maiden ‘’Anti-Corruption” debate organised for select Secondary Schools across the six geopolitical zones of the nation by the Nigerian Content Development and Monitoring Board (NCDMB), in partnership with the Independent Corrupt Practices and other related offences Commission (ICPC) at the Content Tower, headquarters of the Board, Yenagoa, Bayelsa State.
The Tide reports that at the debate umpires said following the evaluation from the presentations by the two finalists, Federal Government College, Kazaure, Jigawa State, scored a total of 74.4 points as first runner-up while the Federal Government College, Delta State garnered 76.4 points to emerge winners.
Other schools that participated in the various stages of the debate leading to the finals were Federal Government College, Odi, Bayelsa State; Federal Government College, Okigwe, Imo State; Federal Government College, Ijanikin, Lagos State; Federal Government College, Maiduguri, Borno State; and Federal Government College, Rubochi, Abuja.
The Tide further reports that the theme for the 2024 International Day of Anti-Corruption was, “Effective Whistleblower Protection Mechanism: A Critical Tool in the Fight Against Corruption”, while topic for the debate was, “Impact of integrity on the expansion of public trust and confidence in governance.
Earlier in his keynote address, the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, restated the Board’s stance against corruption, noting that fighting corruption is a must for the Board.
He reaffirmed his commitment to ideas and programmes geared towards putting an end to corruption within the system, and lauded the Federal Ministry of Education for approving the participation of students in the event.
While commending the ICPC for their support and continuous oversight over the activities of the Anti-Corruption Unit (ACTU) of NCDMB, Ogbe also thanked the anti-graft unit of the Board for putting the event together, noting that they were doing well in their efforts at combating corruption.
“To be clear on what today is about, we’re marking and celebrating International Anti-Corruption Day (IACD), with focus on raising the consciousness of our youths on the ills of corruption and how it stunts the socio-economic development of any Nation.
“This is to send a strong message for extra vigilance by all of us in combating the menace of Corruption from all fronts”, the NCDMB boss said.
By: Ariwera Ibibo-Howells, Yenagoa
Business
Free Meter Distribution: FG Deducts N700bn From Federation Account
The Federal Government has earmarked N700billion from the federation account to implement the distribution of free electricity meters under the Presidential Metering Initiative.
This was disclosdd by the Special Adviser to the Minister of Power on Strategic Communications and Media, Bolaji Tunji.
Tunji, who, in a chat with The Tide’s source noted that the PMI was on course with a target to deliver two million meters yearly, also revealed that the amount reserved for the project had reached N700 billion and procurement had started.
“The Presidential Metering Initiative is still on course. Two million meters every year, delivery of the first batch will start by the first quarter of next year. About N700billion provision has been made, and the money is ready”, he said.
He further revealed that the government would fulfil its promise to deliver 1.3million electricity meters out of the 3.2 million meters under the World Bank Distribution Sector Reform Programme initiative this month, saying that “The DISREP programme will commence this month”.
An analysis of the Federal Account Allocation Committee meeting minutes obtained by our correspondent between April and August showed that the government had saved N420billion from a monthly deduction of N100billion.
The amount deducted from the monthly federation revenue before allocation to the three tiers of government was aimed at bridging the metering gap in the country, which currently stands at 50 per cent.
Recall that N120 billion was deducted from April revenue as the first tranche for the PMI, bringing the amount deducted from the federation account for the initiative as of August to N420billion.
In May, the Minister of Power, Adebayo Adelabu, said the government would provide an initial N75billion as seed capital while the Nigerian Sovereign Investment Authority pledged to inject N250 billion annually for the initiative.
The Minister also disclosed that the initiative would leverage debt financing from diverse financial institutions to bolster the PMI’s resources.
The Managing Director of Abuja Distribution Electricity Distribution Company, Mr. Victor Ojelabi, recently said the PMI would unlock about N1trillion in revenue currently tied up in the Nigerian Electricity Supply Industry due to a large number of unmetered customers.
Under the initiative, the Nigerian Electricity Regulatory Commission announced the approval of N21billion for the 11 electricity Distribution Companies to provide meters for end-use customers at zero cost.
The Distribution Sector Recovery Programme is a comprehensive initiative aimed at addressing the challenges and inefficiencies within Nigeria’s electricity distribution sector.
Recently, the NERC acknowledged that the country’s metering gap remains substantial despite installing 3.03million meters since privatising the power sector in 2013.
It said 6.15 million out of 13.33 million registered customers had been metered, bringing the metering rate to 46.14 per cent in 2024.
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