Hector Igbikiowubo
26 October 2009
Lagos — In what appears a twist to the pursuit of the deregulation of the downstream sector of the oil and gas industry, the Federal Government has refused to grant import licence to traders and petroleum products marketers.
Meanwhile, the Nigerian National Petroleum Corporation, NNPC, has accused major oil marketers of attempts to blackmail it through an orchestrated campaign of spreading falsehood.
Vanguard gathered that the Petroleum Products Pricing and Regulatory Agency, PPPRA, has, for yet undisclosed reasons, refused to grant import licences for Premium Motor Spirit, PMS, and Dual Purpose Kerosene, DPK.
This development has left the Pipelines and Products Marketing Company, PPMC, a subsidiary of the NNPC, as the sole importer of both petroleum products, with the petroleum marketers left at their mercy.
Vanguard's investigation however revealed that the PPPRA's decision may not be unconnected with the current crisis in the banking sector which has revealed some of the petroleum products marketers and importers as chronic debtors with non-performing loans and the banks with reduced capacity to grant loan facilities.
Investigations also revealed that part of the consideration for the government's decision was the need to forestall any possibility of petroleum products scarcity during the ongoing Under 17 World Cup in the country.
Investigation also revealed that in a bid to stem racketeering associated with allocation of petroleum products and the hawking of pro-forma invoice, the PPMC had introduced stringent measures to ensure that only depot owners got allocation.
These developments appear to have precipitated some measure of tension between the NNPC/PPPRA on the one hand and marketers/importers on the other, with the latter allegedly bandying allegations in the media (not Vanguard) of corruption and sleaze in the NNPC/PPMC superintended petroleum products imports regime.
NNPC reacts
In a statement by Dr. Levi Ajuonuma, the Group General Manager, Group Public Affairs Department, NNPC dismissed the allegations and described as rumour the insinuations of an impending scarcity of petroleum products.
The statement read specifically: "Major oil marketers who are aggrieved by the Federal Government's decision to allow NNPC take full charge of fuel importation into the country had accused an unnamed clique within the corporation of feeding fat from millions of litres imported into Nigeria through the daily collection of $500,000 (about N75 million) cut from international commodity traders, comprising Trafigura, Glencore and Vitol to sustain the importation contracts awarded by its subsidiary the Pipelines and Products Marketing Company Limited, PPMC."
Dr. Levi Ajuonuma described the allegation as cheap blackmail while assuring Nigerians of adequate supply of petroleum products till the end of the year and beyond, adding that the bribery claim is a poorly choreographed pack of lies which can not stand the test of due diligence and common sense investigation.
"Look, $500,000 or N75m commission everyday is a lot of money anywhere in the world. So how can anybody collect such kickback as being alleged by the major marketers without any trace or tracking in this day of forensic accounting where every dollar paid into the financial system can be traced?" Ajuonuma queried.
On the allegation that the NNPC had abandoned the Atlas Cove Storage Facility and the Mosimi depot in preference for Yinka Folawiyo Oil and Capital Oil depots because of the alleged cuts some officials of the Corporation were getting from the private depot owners, Dr. Ajuonuma described the allegation as untrue.
He stated that for the first time in many years the Mosimi depot did not record a single case of pipeline rupture for a whole month. "This feat enabled pumping of products to peak at 100 percent in Mosimi.
"The situation at the Atlas Cove is improving by the day despite the challenge posed by the damage of the facility by some militants earlier in the year", he said.
He confirmed that the Atlas Cove Jetty which was damaged on the 12 of July has been reconnected to the depot through a temporary bye-pass and a ship has been programmed to berth there this weekend. He argued that the depot is fully connected to the discharge point as was the case before the militants struck.
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nigeria is not just a land of contradictions,where a nation has so much in aboundance in both human and natural resouses yet her citezenry lives in abject poverty.there is no light,no good road,no water to use and the oll we have so much in aboundance is a curse for the nation.is deregulation the problem of naija now?all the trillions of naira that have been allocated and looted what has the govt done about that?the only are that excites our govt is any are that will inflict further pains on nigerians.honestly the only solution to naija problems is REVOLUTION.Nigerians lets arise and fight fight for our right.
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