Mohammed Shosanya

Nigeria lost an average of 437,000 barrels of crude oil per day due to theft, vandalism, and other criminal activities between January and July this year,the Speaker, House of Representative, Tajudeen Abbas, has said.

He disclosed that this translates to a loss of over $10 billion at the current exchange rate during this period.

He spoke on Thursday while declaring open House of Representatives Special Committee on Oil Theft and Losses investigation into illegal lifting of crude oil in Nigeria.

Abass,who was represented at the event by the Deputy Speaker, Benjamin Kalu, expressed deep concern over the detrimental impact of oil theft on Nigeria’s economy,and lamented the significant daily losses of crude oil caused by criminal activities.

According to him,crude oil theft not only reduces government revenue, which is essential for addressing the multifaceted challenges of national development, but it also causes significant environmental degradation.

“Additionally, it exacerbates insecurity through increased incidents of piracy, kidnapping, militancy, and vandalism. Many companies have been forced to shut down production as a result, further compounding the problem.

“The reduction in government revenue has invariably led to increased borrowing to address budget deficits over the years,” the Speaker stated.

He advocated the need for a concerted effort to reverse this trend, emphasizing, “If we are to make progress as a nation, renew the hope of Nigerians, and meet their yearnings, this appalling situation cannot continue unabated.”

He identified corruption as a major obstacle to sustainable development in the oil sector and affirmed the parliament’s commitment to supporting anti-graft agencies in eradicating economic crimes within the industry.

“We are resolute in our determination to empower the Economic and Financial Crimes Commission (EFCC), the Nigeria Extractive Industries Transparency Initiative (NEITI), and other anti-corruption bodies to tackle corruption in the oil and gas sector head-on,” he assured.

The Special Committee, chaired by Alhassan Ado-Doguwa, the representative for Doguwa/Tudun Wada Federal Constituency in Kano State, has been tasked with a comprehensive investigation into oil theft.

The committee will focus on examining the roles and actions of various stakeholders, including criminal gangs, militia groups, local communities, companies, and security agencies

Also speaking at the event, George Akume, the Secretary to the Government of the Federation, reaffirmed the Federal Government’s dedication to safeguarding the nation’s oil and gas infrastructure. He highlighted that over the past four years, more than $1.5 billion has been invested to enhance security in this crucial sector.

Represented by the Permanent Secretary, General Services, Office of the SGF, Maurice Nnamdi, Mr Akume said, “The government has invested considerable resources in combating this menace.

“Since 2020, expenditure aimed at addressing crude oil theft and securing our oil infrastructure has exceeded $1.5bn. These funds have been allocated towards enhancing surveillance capabilities, securing pipelines, and increasing the presence of law enforcement agencies in critical oil-producing areas.”

Speaking,Ado-Doguwa promised on behalf of the committee to do a good job in the interest of Nigerians.

He said: “Our ultimate aim is to employ every legislative tool to unearth the root causes and immediate factors contributing to this crime, bring those complicit to justice and develop sustainable solutions that will safeguard the integrity of our oil sector and promote national development.

“To ensure a thorough investigation, our methodology includes inviting memoranda and presentations from key stakeholders within the oil industry and security sector and engaging in further discussions with international and local oil companies, host community leaders, and relevant agencies.”

He highlighted some challenges to be addressed saying, “Our committee has noted several critical issues, including vessels transporting stolen crude oil undetected, collaboration among government and security agencies in illicit activities and the inefficiencies of current measures to combat oil theft.

“We have identified that firepower and other weapons of engagement are inadequate compared to the number of security operatives drafted to combat armed crude oil thieves. The NNPC Ltd. has reported 900 infractions on its pipelines, and delayed judicial processes have resulted in the abandonment of cases, allowing culprits to return to their criminal activities.

“In light of these findings, our committee has resolved to enact adequate legislation, including budget allocations to support security agencies, improve existing laws to combat crude oil theft and collaborate with security agencies to prioritise the protection of national assets and critical infrastructure.

“We also emphasise the importance of involving Indigenous youths in ownership initiatives and converting seized refineries for legitimate use rather than destroying them.

Meanwhile,the immediate past Deputy Speaker, Idris Wase has urged Ado-Doguwa to brace up for what will come his way, noting that the oil thieves will come after him.

In his remarks at the event,Wase reminded the Kano lawmaker that his job is a dangerous one.

“Mr. Chairman, you are engaged in a highly challenging and perilous task. This responsibility is far from easy and demands the utmost seriousness. You and your committee members will confront individuals who are actively undermining Nigeria’s economy. Approach this with the gravity it deserves.”

“In other countries, individuals like these would face the death penalty and be held accountable for their actions. They might seek to harm you, but I pray that God will protect you and keep you safe.”

Mohammed Shosanya

The Manufacturers Association of Nigeria,MAN,has advised the Federal Government to utilize subsidy savings to improve patronage of made in Nigeria products and upgrade electricity, road and rail networks within industrial hubs.

Segun Ajayi-Kadir,Director General of MAN,said this in a statement in reaction to the new hike in interest rate announced by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN),on Tuesday.

He also emphasized the need for the government to encourage nationwide investments in renewable energy sources to alleviate energy cost and enhance competitiveness.

He advised the government to take deliberate actions to insulate the productive sector from the impact of continuous hike in MPR by expediting action on the disbursement of special provisions earmarked by government for the manufacturing sector.

He added:”The N75billion single digit loan approved by President Bola Tinubu, GCFR over a year ago and the recently announced N1trillion readily comes to mind”.

According to him,government should offer fiscal support system that will enable the manufacturing sector import raw materials, spares and machines that are not available locally at concessionary duty rate.

Government,he said,should minimize pressure on foreign exchange reserves by incentivize backward integration and local sourcing to decrease reliance on imported products and raw materials.

It should enforce Executive Order 003 to enhance support for local industries and ramp-up domestic production by restricting access to forex for the importation of products manufactured locally.

He added that government should also address the issue of low manufacturing productivity and food production occasioned by the high-level of insecurity across the country to curb the persistent rise in inflation.

He further advised the government to direct the CBN to conduct a comprehensive assessment of the impact of previous decisions of the MPC on inflation rate and the productive sector over the last 5 years.

This,he said,will provide information that will guide future MPC decisions.

He urged the government to direct the CBN to collaborate with the Ministry of Finance to facilitate stronger handshake and coherence between monetary and fiscal policies.

He implored the apex bank to be domestic production centric by taking a detour from continuous hike in MPR and allow time for the real sector to recover from the impact of previous hikes.

He expressed concern that, despite the continuous increase in MPR over the past two years resulting in a weighty 1,475 basis point hike from 11.5% in May 2022 to 26.25% in May 2024, inflation has remained persistently high, reaching a staggering 34.19% in June, the highest since March 1996.

He said:”Clearly, the new rate will further constrain the growth of the manufacturing sector, as the purchasing power of consumers, production levels, competitiveness and sales will face further decline”.

Mohammed Shosanya

Group Chief Executive Officer, NNPC Limited, Mele Kyari has asked the President, Dangote Industries, Alhaji Aliko Dangote to disclose the identity of workers of the company,whom.he claimed owned blending plant in Malta.

He said they should be made known to relevant government security agencies for necessary actions.

Dangote had accused some NNPC workers to have established a blending plant in Malta thereby impeding procurements from local production of Petroleum products.

In a tweet on X, Kyari said: “To clarify the allegations regarding the blending plant, I do not own or operate any business directly or by proxy anywhere in the world with the exception of a local mini Agric venture. Neither am I aware of any employee of the NNPC, that owns or operates a blending plant in Malta or anywhere else in the world”

Kyari also clarified that a blending plant in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions.

“For further assurance, our compliance sanction grid shall apply to any NNPC employee who is established to be involved in doing so if availed and I strongly recommend that such individuals be declared public and be made known to relevant government security agencies for necessary actions in view of the grave implications for national energy security”, he stated

Mohammed Shosanya

Senator Heineken Lokpobiri, Minister of State Petroleum Resources [Oil], convened a meeting with key stakeholders to address and resolve the ongoing issues surrounding the Dangote Refinery.

Nneamaka Okafor, the Special Adviser Media and Communication to Lokpobiri, who made this known in a statement.

The statement noted that Mr. Aliko Dangote, Chairman and CEO of Dangote Group, Mr. Farouk Ahmed, Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Mr. Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPC), were present at the meeting.

According to the statement, the stakeholders expressed their gratitude to the Minister for his exemplary leadership and timely intervention in facilitating this crucial dialogue.

It further noted that the meeting focused on finding a sustainable and lasting solution to the current impasse affecting the Dangote Refinery, with all parties demonstrating a commitment to collaborative and proactive problem-solving.

The Minister emphasized the importance of cooperation and synergy among all stakeholders to ensure the success and optimal performance of the Oil and Gas sector, which is pivotal for Nigeria’s economic growth and energy security.

The meeting marks a significant step towards resolving the challenges and underscores the Minister’s dedication to fostering a conducive environment for Nigeria’s oil and gas sector.

Mohammed Shosanya

President of Dangote Group, Aliko Dangote,says products refined at the Dangote Petroleum Refinery and Petrochemicals, the world’s largest single train refinery, are of superior quality compared to imported equivalents and meet international standards.

He expressed this after the House leadership insisted on testing other diesel products, alongside Dangote’s diesel at its state-of-the-art laboratory.

During a tour of both Dangote Petroleum Refinery and the Dangote Fertiliser Limited complex by members of the House of Representatives, the Speaker of the House of Representatives, Rt Hon. Tajudeen Abbas and other members who observed the testing of Automotive Gas Oil (diesel) from two petrol stations alongside Dangote Petroleum Refinery, commended the company for its significant investments and contributions to Nigeria’s development.

A statement quoted that the diesel samples were procured from two well-known filling stations near Eleko junction along the Lekki Epe Expressway, by the honourable members. Chairman of the House Committee on Downstream, Hon. Ikeagwunon Ugochinyere, and Chairman of the House Committee on Midstream, Hon. Okojie Odianosen, oversaw the collection of samples from the Mild Hydro Cracking (MHC) unit of Dangote refinery for testing of all the samples.

Lab tests disclosed that Dangote’s diesel had a sulphur content of 87.6 ppm (parts per million), whereas the other two samples showed sulphur levels exceeding 1800 ppm and 2000 ppm respectively.

He emphasised that these findings debunked claims made by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Authority, who recently asserted that imported diesel surpasses domestically refined products.

Ahmed had alleged that Dangote refinery and other modular refineries like Waltersmith and Aradel produced diesel with sulphur content ranging from 650 to 1200 ppm—a statement criticised by many Nigerians as a tactic to favour imported products over local ones.

Dangote challenged the regulator to compare the quality of refined products from his refinery with those imported, advocating for an impartial assessment to determine what best serves the interests of Nigerians.

He said:”We produce the best diesel in Nigeria. It’s disheartening that instead of safeguarding the market, the regulator is undermining it. Our doors are open for the regulator to conduct tests on our products anytime; transparency is paramount to us. It would be beneficial for the regulator to showcase its laboratory to the world so Nigerians can compare. Our interest is Nigeria first because if Nigeria doesn’t grow, we have limited capacity for growth.

“Right Honourable Speaker and esteemed members, you’ve witnessed the results of the credibility test. I appreciate your wise counsel in procuring samples from the filling stations alongside our refinery’s product. Ours shows a sulphur content of 87.6 ppm, approximately 88, whereas the others exceeded 1,800 ppm. Although the NMDPRA permits local refiners to produce diesel with sulphur content up to 650 ppm until January 2025, as approved by ECOWAS, ours is significantly lower. Next week, we aim to achieve 10 ppm, aligning with the Euro V standard. Imported diesel is capped at 50 ppm, but as you’ve seen, those from the stations, imported by major marketers, fall well outside this standard.”

Dangote said that high-sulphur content diesel regularly imported into the country often comes with dubious certifications. He emphasised that the most effective method to verify the quality is to purchase the product directly from filling stations and conduct credibility tests. According to him, this issue has resulted in both health risks and financial losses for Nigerians.

“Dubious certifications often accompany the importation of high-sulphur diesel into Nigeria, causing both health risks and financial losses for Nigerians,” noted Dangote. “The best method to verify this is to purchase the product directly from filling stations where end-users obtain it. I believe Farouk Ahmed speaks without sufficient knowledge of our refinery. We have successfully exported diesel and jet fuel to Europe and Asia without any complaints; in fact, we have received repeated orders, indicating satisfaction with our products.”

Speaking, VP of Gas and Oil at Dangote Industries Limited, Devakumar Edwin, highlighted recent actions by European countries like Belgium and the Netherlands. “These countries have expressed concerns about the carcinogenic effects of high-sulphur diesel being dumped into the Nigerian market, prompting them to impose bans on such fuel exports to West Africa.”

Edwin told the federal lawmakers that the Dangote Petroleum Refinery, designed to process a wide range of crudes including various African and Middle Eastern crudes, as well as US Light Tight Oil, conforms to Euro V specifications. In addition, he said, it is designed to comply with US EPA, European emission norms, Department of Petroleum Resources (DPR) emission/effluent norms, and African Refiners and Distribution Association (ARDA) standards.

Noting that products from the $20 billion facility are of high quality and meet international standards, Edwin said it has the capacity to meet 100% of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.

The Group’s VP, Olakunle Alake, expressed disappointment over accusations of monopoly against the Dangote Group. He stressed that there are multiple players in the industry, including the Nigerian National Petroleum Corporation (NNPC), which operates four refineries.

Expressing concern over the controversy surrounding the quality of imported refined products into Nigeria, Speaker Rt. Hon. Abass stated that the Green Chamber would establish a committee to investigate the matter thoroughly. He emphasised that sampled products from various sources would undergo testing as part of this initiative.

The Speaker also expressed admiration for the infrastructure at the Dangote Oil Refinery, describing it as a significant asset in Nigeria’s quest for self-sufficiency in petroleum products. He noted that the refinery has positioned itself as a pivotal player, especially at a time when global concerns over energy security and sustainability are paramount.

“Today’s visit to the magnificent facilities of Dangote Industries Oil Refinery section has been nothing short of enlightening. It has afforded us a rare opportunity to witness first-hand the monumental strides that your organisation has made in transforming the landscape of petroleum production in Nigeria. The sheer scale and sophistication of this facility are awe-inspiring; it stands as a beacon of hope for our country as we navigate through the turbulent waters of energy supply challenges,” he said.

Commending the state-of-the-art technology implemented at the petroleum refinery, Abbas praised it as revolutionary and a shining example of engineering and innovation excellence.

“Each corner of this facility resonates with the echoes of hard work, dedication, and an unyielding pursuit of quality. It is evident that every drop produced here carries not just oil but also the hopes and dreams of millions who yearn for a brighter future. We are deeply impressed by what we have seen during this visit which confirms the rating of this industry as the single largest oil refinery in Africa. This remarkable achievement does not merely reflect corporate success; it symbolises national pride, a tribute to what can be accompanied when visionary leadership meets relentless determination,” he said.

Acknowledging the numerous challenges likely encountered during the construction of the refinery, the Speaker lauded Dangote for his steadfast commitment to achieving excellence.

Mohammed Shosanya

President of the Dangote Group, Aliko Dangote,said he was open to independent testing of his refinery’s products.

The development would only attest to their quality while exposing the problem with some of the products being sold by other players in the sector,he told lawmakers on Saturday,who were on fact-finding mission to his facility in Lagos.

Dangote,who received the leadership of the House led by Speaker Tajudeen Abbas and his deputy Benjamin Kalu,
also implored the House to investigate the quality of laboratories being used to test imported products and compare that with the one at the Dangote Refinery.

He decried the damage being done to vehicles and engines by substandard products.

He urged the lawmakers to investigate the quality of diesel and petrol at filling stations by setting up a committee to test products at various filling stations across the country.

Mohammed Shosanya

Former Group Managing Directors of the Nigerian National Petroleum Company Limited,have deplored the spate of crude oil theft in the country.

The ex-company’s bosses,who expressed this in a communique issued at the conclusion of the meeting of former NNPC GMDs at the CEO Forum in Abuja,said any attack on crude oil and gas facilities as well as illegal refining are acts of criminality and economic sabotage.

Dr Jackson Gaius Obasek, Chief Chamberlain Oyibo,Engr Funsho Kupolokun,Engr Abubakar Lawal Yar’adua,Engr Austen Oniwon,Engr Andrew Yakubu and Engr Abiye Membere,signed the communique which was made available to Premium News on Saturday.

They maintained that all activities hindering oil and gas exploration and production in Nigeria must be sanctioned.

They added:”We appreciate that the PIA has made provisions for the Host communities’ development and also provided for sustainable funding.

“We trust that government security agencies will do the needful and ensure that crude oil theft, illegal refining and activities of pipeline vandals are stopped to allow for investment and growth of Nigeria’s oil and gas sector.

“We appreciate the support that all tiers of Government and the Nigerian citizens continue to give NNPC and trust that this will be sustained by the present administration of H.E. President Bola Ahmed Tinubu”

They expressed their unwavering support for the current leadership of the NNPCL and their commendable efforts in advancing the company’s strategic objectives across key sectors.

They obtained insights into NNPC’s business activities in the context of global energy industry dynamics, strategic aspirations and operational updates.

“In particular, oil and gas production growth plan, gas infrastructure project delivery plan, progress on refinery rehabilitation and issues related to petroleum product supply and energy security were discussed”,they said.

They commended Mele Kyari as the first Group CEO of the Nigerian National Petroleum Company Limited to implement the Petroleum Industry Act, and noted with satisfaction the progress made with hope that its limitations will be addressed over time.

They acknowledged with satisfaction Kyari’s significant progress made in:increasing crude oil and gas production,funding of upstream operations and investments,gas supply and infrastructure development for domestic and export including CNG and LPG delivery,refineries rehabilitation progress,and reduction in carbon emissions and commercialisation of Nigeria’s vast gas resources.

They expressed expressed our satisfaction in the achievements recorded and encouraged the management team to continue advancing strategies to improve operations, grow portfolio, and manage talent.

“We note with satisfaction the continuation of the policy on recruitment which takes into consideration the principles of diversity and inclusion as well as performance based career progression via a transparent process.

“We also noted that limited information is in the public domain on NNPC’s operations since transition to a private commercial entity. This has led to misleading commentary which we believe is not in tandem with the strides achieved by the company.

“We empathise with the management team over the state of onshore operations with over seven thousand illegal refineries destroyed and over five thousand illegal connections removed”,the communique quoted.

Mohammed Shosanya

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),and Dangote Refinery have differed over claims that the latter produces inferior diesel.

The Chief Executive Officer of NMDPRA,Farouk Ahmed, has disclosed that the Dangote Refinery and some other refineries in the country produce inferior products compared to imported commodities.

Ahmed had elaborated that in terms of quality, Dangote’s current AGO (diesel) suffers from the lowest quality in terms of sulfur content, falling short of West Africa’s requirement of 50 parts per million (PPM).

“Dangote Refinery, as well as some modular refineries like Watersmith refinery and Aradel refinery are producing between 650 to one 1,200 PPM. Therefore, in terms of quality, their products are inferior to imported ones,” he said.

But,Dangote Industries Limited (DIL) punctured Farouk claims criticizing the quality of its products, adding that its refined diesel is 80% superior to those currently imported into Nigeria.

Image-maker of the company, Anthony Chiejina, said the reports of producing high-sulfur diesel or lesser quality is mischievous and aimed at tarnishing the reputation of the $20 billion refinery.

The allegation was false, baseless, and mischievous,he said,adding that the refinery is designed to produce top-quality petroleum products that meet strict international standards.

He added: “The false and misleading allegations made by some media outlets that DR is producing substandard diesel which is why it reduced the price by 37%, is baseless and mischievous.”

“Until last year, diesel imports into Nigeria were up to 7,000 parts per million (ppm) of Sulphur which has been going on for many years. Our diesel is produced currently at significantly lower levels of Sulphur; as such, we find baseless the allegation that the reason for the reduction is linked to quality. What we are producing is 80% of what is being imported into the country.

“Another inaccurate assertion is that medium level Sulphur diesel is meant for off-road use. This is a completely false statement as this would have invariably meant that all the imports for the last twenty years have been damaging equipment.”

He disclosed that diesel imports for the high Sulphur grade have been at significantly higher prices until DR started operation. If indeed high Sulphur diesel is sold at lower prices, how come the country never saw the lower prices?

Speaking on the aspect of reduction, he said the reason was because Dangote Refinery diesel price was primarily due to the patriotism of the management to the nation as well as prevailing market dynamics supply and demand.

Mohammed Shosanya

The Chief of Defence Staff, Christopher Musa,says his team will restore Nigeria’s full oil production benchmark of 2.1m bpd .

He disclosed this during a routine security meeting held at the Presidential Villa Abuja,on Friday.

He said Nigeria relies on the revenue generated from oil, hence they cannot afford to back down on securing oil installations in the country.

He added:”Nigeria relies alot on what we produce and it’s mandate is for us to restore full produce ,we are targeting 2.1m bpd which is achievable so we are taking steps to ensure that all that is required to be done is done.

“The President is aware of the ills and cries of the communities and he is not going to let them down, the communities should be rest assured that steps are going to be taken to address their grievances so that productions will continue.

“For the criminals, those that are hell bent on stealing our infrastructure, stealing our crude for whatever reasons their days are numbered they should be rest assured that we are coming after them and we want to assure Nigerians that we all need to put our hands together to achieve this success nobody can do it alone ,no single service ,no single individual can do this alone, we all need to work together including the states ,we understand that the communities are doing so much the President will address those issues to ensure that we have full production”.

Also speaking,Inspector General of Police, Kayode Egbetokun,said the rate of crime in the country is reducing with statistics to show for it.

According to Egbetokun, the security personnel will continue to deploy synergy to ensure they maintain the tempo so far.

He said, “It is a routine security meeting we had with Mr President where we had the opportunity of giving him security briefs, this we have been doing regularly, Mr President is satisfied with our report, he has challenged us to continue to work together and improve our synergy.

“As Inspector General of Police, we have records of all reported crimes across the country and can tell you that crime rate is declining in Nigeria. Records don’t lie the records are there so I can assure you that we will continue to do what we are doing to maintain the decline in the crime rate”.

Mohammed Shosanya

In his continuous effort to combat pipeline vandalism and oil theft,yhe Inspector-General of Police, IGP Kayode Adeolu Egbetokun,has appointed Deputy Commissioner of Police, DCP Bayonle Kafar Sulaiman, as the new Commanding Officer in charge of the Inspector-General of Police Special Task Force on Petroleum And Illegal Bunkering (IGP-STFPIB).

The IGP has ordered him to lead the task force on the mission to combat illegal activities in the petroleum industry, including oil theft, illegal bunkering and pipeline vandalism.

The Inspector-General of Police has also condemned in serious terms the trend of oil theft, pipeline vandalism, and illegal bunkering which pose significant threats to the environment, economy, and energy security.

In a statement,he emphasized that these illegal activities not only result in significant financial losses but also devastating environmental consequences, including oil spills, pollution, and habitat destruction.

He orders the Commander to hold firmly the reins of the office and ensure deterrence by prosecuting all individuals found culpable, and deploy his assets to prevent economic sabotage in the upper and downstream of our oil sector in Nigeria.

The IGP further appeals to all relevant stakeholders in the oil industry and well-meaning Nigerians to work hand-in-hand with the Police and other security agencies to collectively curb this menace and share credible intelligence with security agencies to expose any untoward plans promoting this crime and others alike in the country.