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Real Reasons Why President Buhari Appointed Dr. Ibe Kachikwu as the GMD of NNPC …. + A-Z Of Him

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The appointment of Kachikwu may not have come to many as a surprise, considering that President Buhari had promised to beam his search light on the NNPC which has a reputation for high level of corruption.

Dr. Emmanuel Ibe Kachikwu, the newly appointed Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), yesterday assumed duty as the Group Managing Director at a brief handover ceremony held at the NNPC Towers, Abuja.  Until his appointment, Kachikwu was the Executive Vice Chairman and General Counsel of Exxon Mobil (Africa).

The new helmsman expressed gratitude to his predecessor, Dr. Joseph T. Dawha, for his hard work in holding the NNPC, while pledging to work assiduously in achieving the president’s growth aspiration for the oil and gas industry.

The appointment of Kachikwu may not have come to many as a surprise, considering that President Muhammadu Buhari had promised to beam his search light on the NNPC, which has a reputation for high level of corruption. President Buhari, prior to his inauguration as the President, had promised to carry out an overhaul of the corporation’s activities, while bringing all culprits to book.

Kachikwu, is taking over the affairs of the troubled NNPC at a time the global oil industry is grappling with low crude oil prices.

How Kachikwu emerged

Daily Sun learnt that three people were pencilled down for the job of NNPC GMD. They are Isa Inua, Deputy Managing Director of the Nigerian Liquefied Natural gas (LNG); Musa Kida of Total Worldwide and Kachikwu.

Sources revealed that although President Buhari found the three nominees qualified and capable of handling the affairs of the NNPC, he apparently picked Kachikwu as the southerner among the three.

Kachikwu is one of the few southerners the Buhari administration has appointed to executive position since May 29. In the last two months, most of the appointments have favoured the North.

Why Joseph Dawha-led management was sacked

The high level of corruption in the NNPC may have led to the sack of the management, especially as it relates to the crude oil swap deal, involving thousands of  barels of crude oil that remained unaccounted for.

An independent investigative analysis submitted to President Muhammadu Buhari, revealed that over $32 billion oil revenue was lost to NNPC’s mismanagement of Domestic Crude Allocation (DCA), opaque revenue retention practices and corruption-ridden oil-for-product swap agreements.

Also, the sack of Dawha and hiring of Kachikwu is in line with Buhari’s plan to bring a breath of fresh air into the NNPC. The president, it was gathered, does not want anybody who was part of the system for fear that the person may have been corrupted.

Moreso, in keeping with his promise of sanitising the sector, the coming on board of Kachikwu, may have been informed by his private sector background, as Buhari wants NNP to run as a business entity, with every sense of responsibility. His ascension to the mantle of leadership of NNPC is expected to turn the fortunes of the troubled NNPC around.

Task before new NNPC GMD

Kachikwu will be confronted with a plethora of problems, the deadliest of which is the oil industry cabal that would ensure that all his reforms are frustrated. Others are pipeline vandals, the ailing refineries, fuel subsidy and  funding of JV operations, among others

Pipeline Vandalism

Pipeline vandalism had reached an alarming magnitude, since the late 1990’s as the NNPC witnessed between 450 and 1,000 cases of vandalism annually. The high rate of vandalism had obstructed the supply and distribution of petroleum products (both crude and refined) during the period in review.

NNPC had consistently said that within the last 10 years,it had spent over N174.57 billion on pipelines repairs from a total of 16,083 pipeline breaks. While majority of about 15,685 representing 97.5 per cent of the total was from acts of vandalism, the balance of about 398 cases or 2.4 per cent was due to ruptures.

NNPC records showed that System 2E/2EX, which conveys products from the Port Harcourt Refinery to Aba-Enugu-Makurdi depots onwards to Yola-Enugu-Auchi, appears to be the haven of pipeline vandalism in the country, particularly the Port Harcourt-Aba/Isiala-Ngwa axis. In all, about 8,105 line breaks were recorded along the system 2E within the period representing about 50.3 per cent of the total. The attacks left the NNPC with a cost of N78.15 billion in product losses and pipeline repairs. On gas, statistics also showed that the incessant attacks on the Trans Forcados Pipeline have put it out of service since May 2009, thus making it impossible to evacuate crude oil/condensate from some Shell-operated facilities. Currently, over 300,000 bpd and 140mscf production have been deferred, with about N11 billion spent on the repair of about 55 points vandalised on the line. NNPC further said it spent over US$42.952million to execute a two-phase repair of 74 damaged points in System 2C-1 – the Escravos Warri Crude Oil Pipelines which started in September 2009, to enable the start-up of the Warri and Kaduna refineries.

Frequent turn around maintenance

The new boss is expected to bring his experience on board to resolve the constant TAM, which had become a pain in the neck for Nigerians, as the corporation keeps making huge budget for TAM, with nothing to show for the huge expenditure as the refineries have failed to deliver petroleum products to Nigerians.

With the announcement by NNPC that Port Harcourt and Warri refineries have successfully restarted production after a nine-month phased rehabilitation programme.

Port Harcourt Refinery has already raised its operational capacity to about 60 per cent of its 210, 000 barrels per day (bpd) capacity, while production at Warri Refinery was projected to hit 80 per cent of installed 125,000 bpd capacity soon.

The Port Harcourt Refinery was projected to boost the nation’s local refining capacity with a product yield of five (5) million litres of petrol per day, while Warri Refinery would contribute about 3.5 million litres of petrol to local refining capacity.The new NNPC boss is expected to look inwards into the activities of the refineries to ensure that the cabal frustrating the effective operations of the refineries are identified and brought to book,so that Nigerians can reap the benefits of the resources expended on it.

Fuel subsidy

Fuel subsidy is an drain pipe for the country and Nigerians have constantly harped on the need for its removal as it is believed that the regime is only profiting a few Nigerians and some corrupt officials in NNPC.

He is expected to bring down the level of the country’s expenditure on subsidy from the current N1.5 trillion more than the combined budgets for Education, Health, Agriculture, Rural Development, Works, Transport, and Lands and Housing put together.

The truth is that the subsidising petrol distorts the market and has resulted in inefficiencies and substantial loss of revenue for the government through corruption. It has contributed to the collapse of our local refineries by making them unprofitable for private investors to invest. The subsidy regime has also been responsible for sporadic fuel shortages at fuel stations as corrupt marketers, after receiving subsidies, have proceeded to sell the subsidised fuel to neighboring countries at higher prices.

Improved funding for JV operations

For several years, NNPC has failed to meet up with its cash call obligations, especially its Joint Venture operations, a situation which is hurting the economy and making it difficult for the country to reap the inherent benefits in the oil and gas sector

Indeed, Exxonmobil affiliates in Nigeria had two weeks ago lamented the inability of government to meet its cash call obligations in their Joint Venture agreements, saying the development is slowing down exploration activities.

The oil giant disclosed this at its 2015 Energy Outlook Series held in Lagos as part of efforts to educate stakeholders on what to expect from the energy market in 2015 and beyond.

Upstream Treasurer, Exxonmobil Africa, Mr.Anibor Kragha, regretted that JV production has gone down by half, adding that funding constraints in the industry remained real.

‘‘You can only drill if you have fiscal policies that work. We are not drilling much and making new discoveries to grow our reserves. We are not resource challenged but funding challenged. All this in a way slows down the pace of progress.

If we don’t have new developments in conventional, there would be significant decline because these fields have natural decline rates. So, because of that, we have to continuously drill. But as we stand now, we have a lot of JV deals with NNPC and they are seriously underfunded,’’ he said.

Downstream challenges

The corporation cannot afford to maintain the status quo of long queues at the Filling Stations since the availability of products at affordable pump prices are ways of measuring the performance of the NNPC by the public.

This, NNPC has failed to achieve, hence the need to address the factors and challenges responsible for the failure. A number of factors hampering the performance of the Corporation primarily is the fact that the Corporation has not been functioning as a commercial entity which accounts for the systemic issues like limited accountability and performance management.

Other internal factors include limited revenue source, high losses along value chain, low refinery capacity utilization and disproportionate administrative and corporate headquarters costs.Some factors that are extraneous to the Corporation as those of delays in customs clearance, high level of volatility in the international crude oil prices, security/unrest in the Niger Delta and the vandalism of pipelines.

The Man, Kachikwu

Dr. Emmanuel Ibe Kachikwu, a native of Onicha- Ugbo in Delta State,attended the University of Nigeria (UNN) Nsukka,graduating in 1978 with distinction, emerging as the best graduate.

ACADEMICS:

•Distinction and best graduate (UNN)

•BL (Law School) First Class best graduate.   Won 7 of available 9 prizes in 1979.

•LLM Harvard Distinction and best graduate 1980, specialization on Energy and Petroleum Law and Investment.

•PHD/SJD Harvard Distinction and best graduate, Specialization on Petroleum and Investment Law Strategies.   Set record time for completing Doctoral Thesis.

•H.Dip.T.L; Georgetown, USA

FSCG (Fellow Society for Corporate Governance)

FCIArb (Fellow Chartered Institute of Arbitration)

FCIPP (Fellow Chartered Institute for Petroleum Policy)

Visiting professorship for; various Universities in the world including Harvard Law

CAREER TRACK:

•Over 30 years in policy making positions  in Petroleum Industry including;

•General Counsel/Legal Adviser Texaco Nigeria and Texaco Overseas Petroleum Co – 10 years (1984 -1994).

•General Counsel/Secretary to Board Mobil Producing Nigeria Unlimited – 2001.

•Executive Director ExxonMobil Group of Companies, (7 in all) – 2003.

•Executive Vice Chairman/General Counsel ExxonMobil Companies in Nigeria And Oversight Counsel ExxonMobil Companies in Africa – since 2009.

KEY ACCOMPLISHMENTS:

•Authored several law books including the best seller – Nigerian Foreign Investment Law and Policy.

•Authored over 20 publications.

•Influenced over $10billion in investment from ExxonMobil Group into Africa including Nigeria.

•Set major policy planks on, Government Relationship, Investment Policy and Corporate Governance for ExxonMobil in Africa.

•Member of many highly influential Policy and Investment Teams for ExxonMobil Corporation.

•Lead Negotiator on Diverse issues for ExxonMobil in Africa including conclusion of Lease Renewal Negotiations for Mobil Producing.

•Solid contacts in Global Energy Sphere with contacts to most CEOs of large Petroleum Corporations, and Secretaries of Energy for key National Country players, developed over 25 years.

•Respected as a leader by Peers in the industry globally.

THE SUN

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More Troubles For Dangote Cement As Kogi Govt Demands 10 Per Cent Share, Orders Immediate Seal Off

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However, Dangote Cement is facing allegations of sharp practice from Kogi State government, Kogi Assembly as well as Akwa Ibom State.Already, the Kogi State House of Assembly has ordered stoppage to the activities of the company in two Local Governments in the State while investigations continue.

To make the claim possible, Kogi State House of Assembly ordered the management of Dangote Cement company to provide all necessary documents that have to do with the transfer of Obajana Cement Company owned by Kogi state government to Dangote Cement Company.

The House also directed that the documents signed at the establishment of the Company and relevant receipts of dues it claimed to have paid to Kogi State Government available at the next adjourned sitting date.

The speaker of Kogi State House of Assembly, Matthew Kolawole, gave the order after interim reports of the ongoing investigative hearing on Internally Generated Revenue (IGR) which was submitted by the ad hoc committee led by Hon. Isah Tenimu Umar, Member Representing Lokoja I Constituency and deliberated upon at the plenary on Wednesday.

Kolawole said this has become important in view of the claims and counterclaims between the Chairman of Kogi State Internally Generated Revenue Service (KGIRS) and representatives of Dangote Cement as the acting chairman of KGIRS, Salisu Enehe had earlier accused Dangote Cement Plc Obajana of forging its tax receipt during the investigative hearing by the State House of Assembly.

According to the State Revenue Boss, most of the figures the company claimed to have paid are totally incorrect, urging the company to check its record.

He added that despite the billions of Naira that company is making from the state monthly, it has failed to pay taxes that are due to the state and Lokoja Local Government Area.

Nigerians Getting ₦1,593,247 Per Week From ₦99,000 Investment in Amazon
Nigerians Getting ₦1,593,247 Per Week From ₦99,000.

In another development, Following the unrestrained environmental degradation in Ankpa and Olamaboro local government areas, Kogi state House of Assembly on Wednesday, directed the Commissioner of Police and Commandant of the Nigeria Security and Civil Defence (NSCDC) to seal off operations of Dangote Plc in the affected areas of the State.

The House gave the order during a public hearing on activities of Dangote Group in the state, especially on the the massive exploitation , environmental degradation and non compensation to the affected owners of the land and without revenue accruing to the state government.

The Speaker, Kogi state House of Assembly, Mathew Kolawole, charged the NSCDC commandant to ensure immediate implementation pending when the ad hoc committee on revenue clarifies some grey areas. Kolawole, who lamented the environmental degradation caused by mining activities on Kogi by the Dangote group and its subsidiaries, accused the multi national business concern of making billions in the state but yet fails to give back to it.

Akwa Ibom is also finding it difficult to collect its entitlement from the Dangote Group. According to reports from the place, the Itu Local Government blocked Dangote premises with their trucks because the company has refused to pay tax for more than two years despite pleas and series of warnings.

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Union Bank, WACOT Rice Kick Off Financial Inclusion Drive for Smallholder Farmers in Kebbi

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As part of Union Bank’s commitment to driving financial inclusion in Nigeria, the Bank has partnered with WACOT Rice Limited – a rice processing company, to financially include 6,000 local farmers including youth and women in Kebbi State.
The Kebbi Financial Inclusion Drive (KFID) which will cover four Local Government Areas – Argungu, Augie, Suru, and Dandi – is a critical part of WACOT’s Argungu Outgrower Expansion Project funded by United States Agency for International Development (USAID) West Africa Trade Hub. This program is set to resolve the overwhelming financial inclusion deficit within rural communities in Kebbi.
The financial inclusion initiative is being implemented with technical support from National Identity Management Commission (NIMC), to help the farmers acquire the relevant documentation and identification required to open bank accounts.
Union Bank will facilitate account opening and expand its agency banking network to cover the areas while supporting its agents on ground with digital banking solutions to enable seamless transacting and account management.
Farouk Gumel, Chairman WACOT and Board Chair, Union Bank was on ground in Kebbi State to kick-off the drive and paid a visit to the Kebbi state Governor, Senator Abubakar Atiku Bagudu to discuss expanding the programme state-wide.
In his recent keynote address at the recently concluded and  Chartered Institute of Bankers of Nigeria (CIBN) Conference, Mr. Gumel said:
 “As we work towards achieving financial inclusion to reach the unbanked, we must commit the same resources and investments to rural-local customers as we have done to urban-global clients to help create the growth that will lift us all to collective prosperity.”
WACOT Rice is a subsidiary of TGI Group. TGI Group, through another of its subsidiary Titan Trust Bank, recently acquired Union Bank in a landmark transaction which was announced in 2021.

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FIRSTBANK PARTNERS VERVE INTERNATIONAL, MAKES CUSTOMERS MILLIONAIRES IN THE FIRSTBANK VERVE CARD PROMO

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In partnership with FirstBank – Nigeria’s premier and leading financial inclusion services provider – Verve International, Africa’s leading payment technology and card business, has launched its third National Consumer promo designed to reward users of FirstBank verve card with exciting gifts and cash prizes to appreciate their patronage and use of the card to carry-out their electronic banking transactions.

The ongoing 2-month promo will end on 30 October 2022 as 20 customers (10 customers per month) with the highest transaction count during the promo will be made millionaires, winning the sum of N1 million each. Also, N20,000 will be won by 25 customers monthly.

On the other hand, 2620 FirstBank verve cardholders that double their transactions every week, stand a chance to enjoy 10% cashback capped at N2,000 per customer.

Speaking on the promo Chuma Ezirim, Group Executive, e-Business & Retail Products, FirstBank said “we appreciate our partnership with Verve Card through the years; a partnership of empowerment and opportunities which include growing the economy, supporting new businesses and preventing unemployment. FirstBank verve card holders are encouraged to keep using their cards as it is a card offering that promotes safe, convenient and rewarding digital banking experience with 20 customers standing a chance to be millionaires at the end of the promo.”

Verve card is a secure debit card that allows cardholders to conveniently meet their daily financial needs such as payment for goods and services, airtime recharge, bill payments, funds transfer, etc. Verve card is accepted across all ATMs, POS, Web and Mobile Platforms in Nigeria.

The promo is also opened to new verve cardholders as non-verve cardholders are encouraged to visit the nearest FirstBank branch today to pick up a Verve card and start getting rewarded!

Only recently, FirstBank – in partnership with Verve – rewarded over 2601 FirstBank verve cardholders with various prizes; including N20,000 cash prize, N10,000 cash prize, N10,000 worth of airtime; power generating sets, refrigerator, cooking gas, smart TV and the grand prize of a brand-new car to a lucky winner.

 

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