Real Africa News

Sunday, 3 December 2023

Alarm Bells Ring As Nigeria’s Refineries Collapse By 92%

By Corel balloon 03 December No comments

The World Energy 2023 report has unearthed a staggering decline of 92% in Nigeria’s crude oil refining output over the past ten years, raising concerns about the country’s energy sector.

From a robust production level of 92,000 barrels per day (bpd) in 2012, the output plummeted drastically to a meagre 6,000 bpd in 2022, representing a significant drop in refining capacity.

This disconcerting data, detailed in the 72nd edition of the Energy Institute’s report, corroborates the findings in the Organisation of the Petroleum Exporting Countries’ (OPEC) Annual Statistical Bulletin 2023.

OPEC’s report also highlighted Nigeria’s sharp decline in crude oil refining capacity from 33,000 bpd in 2018 to 6,000 bpd in 2022, signifying an 81% decrease in production output.

Despite Nigeria’s possession of four government-owned refineries—two in Port Harcourt and one each in Warri and Kaduna—with a collective capacity to process approximately 4.45 million barrels of crude oil daily, the country remains heavily reliant on importing refined petroleum products.

In response to the crisis, the Minister of State for Petroleum, Heineken Lokpobiri, previously announced plans for the Port Harcourt refinery to commence operations by the end of the current year after several delays.

Echoing this sentiment, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL), affirmed that the Port Harcourt refinery is slated to commence operations in December 2023, followed by the Warri refinery in early 2024 and the Kaduna refinery by the end of the same year.

During a meeting with the Speaker of the House of Representatives, Tajudeen Abbas, Kyari expressed confidence in ending fuel importation by 2024, aiming to restore the nation’s self-sufficiency in refined petroleum products.

“I can confirm to you that by the end of December this year, we will start the Port Harcourt refinery; early in the first quarter of 2024, we will begin the Warri refinery, and by the end of 2024, the Kaduna refinery will come into operation.

“We will no longer discuss fuel importation by the end of 2024. I am very optimistic that this will crystallize,” he said.

The looming deadline set by the federal government under President Bola Ahmed Tinubu intensifies efforts to revitalise and restore Nigeria’s refinery operations, striving to salvage the country’s energy sector from the brink of collapse.

Budget: Ex-presidents, former VPs, others get N13.8bn upkeep allowance

By Corel balloon 02 December No comments

The Federal Government has earmarked a total of N13,805,814,220 for the upkeep of former presidents, vice-presidents, heads of state, Chiefs of General Staff, retired heads of service, permanent secretaries, as well as retired heads of government agencies and parastatals in the 2024 fiscal year.

The beneficiaries include former Presidents Olusegun Obasanjo, Goodluck Jonathan and Muhammadu Buhari, as well as ex-vice-presidents Atiku Abubakar, Namadi Sambo and Prof Yemi Osinbajo.

Also expected to benefit from the windfall are ex-military Heads of State, General Yakubu Gowon and General Abdusalami Abubakar, as well as a former dictator and self-styled military President, General Ibrahim Babangida, and a former Chief of General Staff, Commodore Ebitu Ukiwe (retd.).

Also, N1tn was provisioned for the public service wage adjustment for government Ministries, Departments and Agencies (including arrears of promotion and salary increases, and payment of severance benefits and minimum wage-related adjustments).

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A breakdown shows that the entitlements of former presidents/heads of states and vice-presidents/chief of general staff will cost N2.3bn, while N10.5bn is proposed as benefits for retired heads of service, permanent secretaries and professors.

The payment of severance benefits to retired heads of government agencies and parastatals is proposed to cost N1bn.

Other allocations include N65bn for the Presidential Amnesty Programme for the reintegration of transformed ex-militants; N1bn for the Office of the Presidential Adviser on Energy; and N108bn for unnamed special projects.

The government is also proposing the sum of N40bn to offset electricity debts owed power distribution companies by all MDAs.

The item listed as ‘Settlement of MDAs’ electricity debts’, was contained in the sectoral allocation details released by the Chairman, Senate Committee on Appropriations, Solomon Adeola, and obtained by Sunday PUNCH.

According to Adeola, the details of the budget have been released to allay the fears of lawmakers and Nigerians.

He noted that the details had been circulated to allow lawmakers to study and see the allocations TO various sectors.

The Executive Director, Association of Nigerian Electricity Distributors, Sunday Oduntan, in January 2022 revealed that all the Federal Government MDAs and the military owed the electricity distribution companies at least N90bn.

He said though discussions were ongoing as regards settlement, the debt had continued to pile up over the years since the power sector was privatised in November 2013.

He said, “All MDAs’ debt is more than N90bn and the military is part of that. We came on board in 2013 and since then, how much has been paid by the MDAs?

“There was a time when a former minister of power said they (the government) had concluded arrangements on how to settle the debt, but as I speak with you, the bills are still unpaid. Since privatisation, there have been issues around the MDAs’ debt.”

Though the government budgeted N27bn in 2022 and N40bn in 2023 for the settlement of the debt, it is unclear if it made payments to the Discos.

The ministries of Works, Finance, Education and Defence and others got lion’s shares of the N8.7tn capital component of the N27.5tn 2024 budget as contained in sectoral allocation details.

In the proposed budget, the Ministry of Works is allocated N521.3bn, followed by the Ministry of Finance with N519.9bn, while N308.2bn is earmarked for the Ministry of Defence.

Similarly, the Federal Ministry of Health and Social Welfare is to get N304.4bn, while the Education ministry has an allocation of N265.4bn.

Others are Ministry of Power, N264.2bn, government-owned enterprises, N820.9bn; Tertiary Education Trust Fund, N665bn; Housing and Urban Development ministry, N96.9bn; Water Resources ministry, N87.7bn; and Police Affairs ministry, N69bn.

The National Assembly under statutory transfers gets N198bn; the Niger Delta Development Commission, N324.8bn; Universal Basic Education Board, N251.4bn; National Judicial Council, N165bn; North East Development Commission, N126bn; and Basic Health Care Provision Fund, N125.7bn.

Under capital supplementation, zonal intervention, otherwise called constituency projects for federal lawmakers, gets N100bn; special projects, N108bn; contingency (capital), N200bn; aid and grants funded projects, N685.6bn; and National Social Investment Programme Agency, N100bn.

Minister on budget

Meanwhile, the Minister of Information and National Orientation, Mohammed Idris, on Saturday expressed optimism that the 2024 budget would mark a transformative era in the country once it was passed by the National Assembly.

The minister, while declaring open the Kaduna State chapter of the Nigerian Institute of Public Relations Annual Public Lecture/Annual General Meeting, noted that the budget signified a pivotal step towards the realisation of Tinubu administration’s Renewed Hope Agenda.

In addition to its focus on development priorities, the minister noted that the budget demonstrated a commitment to fiscal responsibility.

According to him, the administration recognises the importance of prudent financial management as the foundation for long-term economic stability.

Idris said, “Just this week, he (Tinubu) presented the 2024 Appropriation Bill of N27.5tn to the National Assembly, the first full-year budget of his administration. The budget as presented signifies a pivotal step towards the realisation of his Renewed Hope Agenda by aligning fiscal strategies and priorities with broader national development.

“As the 2024 appropriation bill moves through the legislative process, we are very optimistic that its passage will mark the beginning of a transformative era, bringing tangible improvements to the lives of Nigerians. Before the budget presentation, President Tinubu had assented to an equally important supplementary budget, signed several landmark bills and Executive Orders into law, and inaugurated special presidential initiatives on fiscal policy reform, Compressed Natural Gas, food security, MSME support, and other critical areas of the economy. The goal has been to deliver relief to the Nigerian people and lay the groundwork for true and lasting prosperity.

“At this juncture, let me remind us that one of the pillars of President Bola Ahmed Tinubu’s eight-point agenda is inclusivity, which means inclusive policies and programmes for all segments of the population, especially youths and women. You can see manifestations of this even in the array of appointments made by the President so far, and the prominence given to young people and to women. This is not to say we have done enough, and can therefore rest on our laurels. No.

“We can still do better, and I can assure you that President Tinubu will continue to push the envelope in this regard. In addition to appointments and representation, the Tinubu Administration has very importantly been rolling out policies targeted at creating the enabling environment for Nigerians to thrive across all demographic categories.”

Economists, lawyers, CSOs react

A professor of Economics at Godfrey Okoye University, Enugu State, Felix Onah, noted that Nigerian leaders were being selfish without any thought for the common man’s suffering.

“They are budgeting for themselves and not for the common man. At this point in our economy, the government should be thinking of the citizens, but that is not the case; they are thinking about themselves and not about those they are governing,” he said.

Onah stated that the Senate had the power to stop the budget from being passed, but noted that it would pass it despite the ridiculous spending, adding that the President had the Senate in his pockets.

He said, “This is money not well spent; this kind of money should be budgeted for the welfare of the masses. This is also happening because Nigerians have lost the ability to speak out. The government has taken the public for granted. They are not thinking of the good of Nigerians; they are thinking for themselves only and there’s nothing we can do about it.”

A lecturer at the Department of Agricultural Economics, University of Ibadan, Yekinni Taofeek, noted that the budget was insensitive to the country’s current economic state.

He said, “The government needs to be more sensitive. When they call for sacrifice from the citizens, they should also see that they are also making sacrifices, especially with how they’ll manage our finances.

“You can’t be telling the citizens to endure, yet you’re not doing anything. It’s not bad to take care of those who have served the country; however, it is insensitive to the current circumstances in the country, especially when the government has declared as appalling the state of the economy.”

Taofeek also urged the National Assembly not to allow the budget to pass without removing the amount for the ex-leaders and allocating it to serve other useful purposes.

The Executive Director, Human Rights & Justice Group International, Mr Prince Eze, called on the President to suspend the release of such funds.

He said, “That is undemocratic and inhuman considering the economic situation in the country. The minimum wage of workers in Nigeria is the worst in the world. Such funds should be used to cushion the hardship of the masses.

“How can people be going through hard times and you are busy allocating money to past presidents and vice presidents? They don’t need the money. They already made so much when they were in office. That decision should be suspended immediately. Such funds should be channelled into the economy and security.”

Human rights activist and Senior Advocate of Nigeria, Ebun-Olu Adegboruwa, said the government needed to practice what it was preaching to Nigerians on bearing the burden of fuel subsidy removal.

He noted that it would amount to double compensation as most of the former presidents and vice-presidents were also benefiting from other services they had rendered to the nation in the past.

He said, “It is the issue of double compensation because most of the past leaders, especially those in the military, who are earning salaries and pensions as retired generals, are also earning humongous benefits as past presidents, and this is what we think that the government should look into.

“So, if the President is speaking to us on frugality and the need to bear the burden of subsidy removal and other inflationary trends that we are experiencing, I think charity should begin at home.”

On his part, human rights lawyer, Jiti Ogunye, said the Tinubu administration was contradictory in its sermon to Nigerians, stressing that the cost of governance was too high.

He added that it was an uncaring attitude for the Presidency to budget such a humongous sum for the welfare of past presidents and vice-presidents amid economic hardship.

Ogunye stated, “The Tinubu administration, since it came to power, has been sermonising on the need for Nigerians to tolerate the current hardship, stating clearly that it realises that people are going through difficulties, but assuring that in the end things will be better.

“I have not seen the administration observe what it preaches; so, it is contradictory for an administration to be asking people to bear pains for the future to be brighter and prosperous and in the immediate, also spending this kind of money. I have not seen a trimming down, or a change of attitude. Things are getting more difficult and the cost of governance is getting more expensive.”

Carragher reckons only Man City can stop Arsenal in the Champions League

By Corel balloon 02 December No comments

Arsenal have already secured a place in the Champions League round of 16, which is fantastic given that they did so with one game left. Their last group game is away to PSV on December 12th.

According to Jamie Carragher, just one team stands between Arsenal and the 2023–24 Champions League crown. This team is Manchester City, as he stated while discussing Arsenal’s chances of winning the Champions League following their 6-0 victory against Lens.

Arsenal have only lost once in the UCL since returning following a seven-year absence. Their loss was unexpected, but their triumphs have been dominant, and Carragher believes that not even Bayern Munich is as powerful as they are.

Carragher said on CBS Sports, “I think they are contenders. They haven’t got that history that you can look back on in this competition of winning multiple-time European titles like Bayern Munich.

“I wouldn’t say Bayern Munich are a better team than Arsenal, but there’s something about when you see Bayern Munich in Europe you feel like they could do it because they’ve been there before.

“I think the competition right now; there’s only Manchester City who are better than Arsenal in this competition.”

Winning the Champions League is simple if a team sets its sights on it. The beauty of it is that you may be out of form in the league and yet win it. Chelsea won it in 2021 despite not being the best Premier League club at the time, while Inter Milan reached the final this year despite not being the best in the Serie A.

Arsenal can likely compete in the knockout rounds and advance to the final at Wembley. Arteta has never lost at Wembley as manager, so I guess the problem is just getting there….

Mikel Arteta can't hide true feelings on Oleksander Zinchenko after Arsenal mistake

By Corel balloon 02 December No comments

Arsenal manager Mikel Arteta addressed the error made by Oleksandr Zinchenko in the closing stages of Saturday's 2-1 win over Wolves during his post-match press conference

Mikel Arteta refused to condemn Oleksandr Zinchenko after the Arsenal full-back's mistake set up a nervy finale in Saturday's 2-1 win over Wolves at The Emirates.

The Gunners flew out of the blocks to take a two-nil lead inside 13 minutes courtesy of well-worked goals from Bukayo Saka and Martin Odegaard and were unfortunate not to extend their lead before a late defensive lapse allowed Matheus Cunha to halve the visitors' deficit in the 86th minute.

It was Zinchenko was at fault for the goal, with the former Manchester City player caught out after overplaying in a dangerous area. And while Arteta stressed Arsenal had to learn lessons from that error, he was quick to defend the versatile Ukraine international.

"You have to love him, how he is," the Spaniard replied when he was asked about Zinchenko's error post-match. "Every player has strengths and weaknesses. Alex has many more strengths.

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"This happened and it can happen to any player. We have to learn from it because there are certain areas where it’s a big no to play, especially after certain things in the previous phase. That’s it. We will get better."

Despite a nervy finale, Arsenal were in control throughout the match and have now opened a four-point lead at the Premier League summit. Manchester City will have the chance to respond on Sunday when they host the Gunners' bitter rivals, Tottenham.

Although disappointed to give up a clean sheet, Arteta commended the character of his team for the manner in which they dug in during the final minutes of the match. He was also quick to point out that the scoreline slightly flattered Wolves, who were second-best for the majority of the afternoon despite Cunha's late strike.

Navy destroys drums of illegally refined diesel in Rivers

By Corel balloon 02 December No comments

The Nigerian Navy said its personnel have impounded and destroyed a boat conveying drums of illegally refined Automated Gas Oil in the seaward of the Bonny Island channel in Rivers State.

A top official of the Navy in Bonny, who did not want his name mentioned disclosed this to journalists on Friday, saying the boat was arrested off the Bonny River.

He stated, “In a coordinated effort, the diesel-laden boat was destroyed by men of the Forward Operating Base, Bonny,” putting the estimated quantity of the destroyed product at 150,000 litres.

The official further said the recent efforts by the security outfit were predicated on the charge of the Chief of Naval Staff, Vice Admiral Emmanuel Ogala, to officers and men to stamp out criminal activities in the maritime domain.

Arsenal await Man City relegation verdict with triple benefit but face Mikel Arteta exit concern

By Corel balloon 02 December No comments

Mikel Arteta and Arsenal could benefit three times over from potential Man City relegation verdict after latest predicted odds emerge

Arsenal await the verdict of Man City's investigation with the potential benefits from a relegation.

Arsenal fans have been in a state of unrest over Manchester City’s investigation into the alleged 115 rule breaches and the impact it could have on both them and their Premier League title rivals. After Everton received a points deduction, it suddenly brought more attention to the reality of the potential implications should the club be found guilty.

Man City reportedly face a trial in the autumn of next year with an outcome slated not to be known until potentially as late as 2025. We previously discussed how the sheer volume of alleged breaches would certainly entail a lengthy process.

However, Altindex.com’s latest odds on the outcome suggest that the likeliest outcome remains neither relegation nor points deduction as punishment. Points deductions and relegation odds are far less likely and from an Arsenal perspective it seems they should continue preparations with their current rivals remaining as such into the long term.

However, in a world in which the suggested 5/1 chance that relegation does indeed happen, there are of course benefits worth theorising on. The initial one is of course the most obvious and the fact with City out of the picture for at least a season the title becomes far more achievable.

I have maintained that if your expectation is that Arsenal should win the league whilst having Man City as your favourites for it this is a contradiction. However, with City out of the picture, that expectation suddenly becomes a far more realistic one.

If City were to go down, it would be interesting to then see who might leave the club. Would the champions be able to hold onto their top talent, would they stay for what you’d expect to be a single campaign in the second tier?

Could Arsenal look to take the opportunity of recruiting some of the young stars looking for a quick route back to the Premier League? It is difficult to know and with players under contract, it would make sense for the club to deny any exits.

However, in the market, Arsenal could benefit from beating City to any transfer targets they might have at the time, making them promises over both Premier League football and a consistent title challenge too. How Man City recover from a drop to the Championship is territory never considered before and so that could give the Gunners an edge.

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