Business

”We didn’t Divert N1.2bn subsidy fund, EFCC never shut our our tank farm” – Obat Oil&Petroleum speaks

Published

9 years ago

January 30, 2016

Just yesterday, there were reports going round that Obat Oil and Petroleum limited owned by a Monarch,Oba Frederick Akinrutan, was shut down by EFCC over diversion of N1.2bn subsidy funds sometime ago.
Obat Oil has however released a statement through it’s Head, Legal Seun Bakare, stating the company’s side of the story.

‘’Our attention has been drawn to a series of viral newspaper publications on an alleged N1.2b subsidy diversion claimed by the Managing Director of Petrocam Trading Nig. Ltd, Mr. Patrick Ilo against us, Obat Oil & Petroleum Ltd.
We hereby state categorically that there was no time Obat Oil diverted any N1.2b as claimed by Petrocam and It is pertinent to state clearly at this point that there was never a time that our tank farm was shut down as we are fully in operation; we were only invited by the EFCC based on the petition Mr. Patrick Ilo wrote to the commission through his Solicitors. The transactions which gave rise to the false reports and the spurious claims from which they have sprung have already been submitted to the Court’s consideration and ordinarily should not be the subject of discourse or advertorials.

However, Petrocam Trading has gone out of its way to lodge false complaints against us and set in motion a sequence of events that have been widely reported. We are therefore constrained to protect our professional goodwill, integrity and reputation by putting out this publication. Sometime in 2014, PetrocamTrading approached Obat Oil & Petroleum Ltd for a business transaction with Petrocam making an offer to finance the Importation of PMS through its bank, Sterling Bank, for Obat Oil. Both parties signed a service agreement to commence the transaction and Petrocam did undertake the Importation of 15,000Metric Tons of PMS in lots either by its own resources or through its Bank. During the course of the business transaction and at conclusion, Petrocam failed to fulfill its obligations under the service agreement.For instance, Petrocampaid N3 per litre of the allocation as opposed to the agreed sum of N5 per litre. This was the first act of breach displayed by Petrocam Trading. Despite our best efforts at attempting to get the issue of the outstanding payment resolved while and the same time hoping that business could still be done with Petrocam, the business relationship broke down. We invited Mr. Patrick Ilo for reconciliation on several occasions to enable parties reconcile their accounts based on the transactions and resolve issues but he declined. Rather than agree to our invitation for joint account reconciliation, Mr. Patrick and Petrocam Trading curiously obtained and published our UBA statement of account without our consent, permission or authorization. It became obvious that Petrocam was shying away from facts because he had skeletons in his cupboard. While Petrocam thrived in its default of the Service Agreement by failing to make full payment for the petroleum products it loaded, it instituted an action on the 19thof November, 2015 before the Lagos State High Court in suit No. LD /1411CMW/2015 seeking sundry reliefs including injunctions. In that suit, Petrocam lay claims to the Subsidy, Forex differentials and accrued interest being expected from the Federal Government as payments for seventeen (17) transactions/importations belonging to Obat Oil, of which Petrocam participated only in six (6).Needless to say, Petrocam’s attempt to appropriate to itself payments, accrued interest and forex differentials meant for several other bank transactions/importationsis completely illogical, factually incredulous and legally unfounded.We take the view that Petrocam is not entitled to any sum at all. The money paid to AMCON belongs to Obat and not Petrocam and is entirely unconnected to the Service Agreement executed by Obat and Petrocam. Thus, until the Court determines who owns what, Petrocam cannot claim any sums standing to our credit or compulsorily take over assets belonging to us. Further exposing the falsity of Petrocam’s public claims as reported in the publications is the fact that in its processes filed before the Court, Petrocam concedes that it has completely received the alleged N1.2b subsidy claim in question.

eThe report in the papers as well as the false reports on which they are based not only amount to speaking from both sides of the mouth but also underscore a possible intention by Petrocam to obtain from us what is not due to it. Surprisingly, while Obat Oil were to compare books with Petrocam for reconciliation and to determine the position of the account on the transaction, Mr. Patrick Ilo maliciously wrote a petition to EFCC and DSS claiming that his money was diverted by Obat, without stating the true facts as narrated herein before the agencies. This move was not only surprising, it was unlawful as the position of the law, as we have been made aware, is that the EFCC (and indeed, law enforcement agencies in general) are prohibited from acting as agents of debt collection with respect to transactions of a purely civil nature, such as the Service Agreement business transaction between two firms for a matter that is still a subject of litigation. We therefore denounce the invasion of our premises by agents of the state acting on lopsided reports presented by a party that has some interest to serve. We state categorically that Obat Oil did not divert N1.2b or any sums whatsoever accruable to Petrocam or Sterling Bank. We restate our invitation to Petrocam for amicable discussions to determine what is accruable to both parties. We reject and will not capitulate to any attempts by Petrocam to harass Obat Oil with the press or government agencies as we are fully aware of the remedies available to us under the law- and will fully explore them. In conclusion, we take exception to any malicious publication and slander orchestrated by certain people in a bid to disrupt our business. For the avoidance of doubt, EFCC did not close our depot facility. We were only invited because of the petition and lies being spread by Mr Patrick Ilo and Petrocam. We urge the public to disregard the misinformation peddled in the false and malicious publications as well as desist from propagating same, in their best interests’’

Business

Oil marketers counter Dangote

Published

17 hours ago

November 5, 2024

Sahara Weekly

Oil marketers counter Dangote over allegation of substandard product importation

The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has countered the claim by Dangote Refinery that any oil importers landing petrol at a price cheaper than what the refinery is selling are importing substandard products and conniving with international traders to dump low quality products into Nigeria.

The refinery had made the claim on Sunday.

In a statement yesterday, DAPPMAN’s Executive Secretary, Olufemi Adewole, said none of its members was engaging in activities that could shortchange Nigerian fuel users by conniving with anyone to bring in low quality product into the country.

“We’ve said this for the umpteenth time, and it bears repeating, those in the downstream sector business of petroleum products trade are patriotic Nigerians who will not shortchange Nigerian citizens for filthy lucre. Our members are in this business to add value to the businesses of their fellow Nigerians and not to defraud them.

“Prices of products in the international market are dynamic as they’re dictated by prevailing circumstances at every given situation. We calculate our landing costs based on the dynamics of market forces, and the templates are always in the public domain. To claim that if the landing cost of imported product happens to be lower than that of the refinery indicates importation of low quality product is not only preposterous, but also fallacious. In any case, the management of the refinery has, until now, kept its cost and prices close to its chest and put it away from public scrutiny. “

“This type of submission, targeted at projecting our members negatively before the public, cannot help the management’s desire to have oil marketers patronise its products. What will ensure such patronage is transparency, fair play, and readiness to compete with others, including foreign refineries, on an even keel and on a level playing field.”

Adewole said the disclosure by the refinery’s management that the facility has a huge stock of 500 million litres fuel reserve came to its members as news.

“We were surprised because we believe that if the refinery has such huge stock, it’s the marketers that should be put in the know first.

‘Secondly, it was even more surprising given that the news came about the time the refinery was working on rationing what each marketer could pick from the refinery. If they had such huge stock, how is it then that they’re rationing what marketers could buy?

“On all these developments in the industry, the position of our members is very clear: we’ve always played by the rules, and we’ll continue to play by the rules. We’ll not be tired of advocating for a level playing field and a highly competitive and transparent sector that’s devoid of arm twisting and devoid of any form of dominant tendencies,” he said.

Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said it had concluded plans to import the best quality petroleum product and sell at far cheaper prices.

The association said it was awaiting the NMDPRA to grant it import licence, saying it “has successfully incorporated a strategic business unit called PETROL.”

Its spokesman, Joseph Obele, said PETROAN had concluded plans with her foreign refinery counterparts and financial partners to import the best quality of PMS and “then sell far less than the present selling rate of PMS in Nigeria.”

He said the allegations that PETROAN would import inferior products and that an international company was trying to establish a PMS blending plant in Lagos “are all strategies for Dangote Refinery to push others out of the market…”

Also, Pinnacle Oil and Gas Limited, in a statement by its Chief Executive Officer, Bob Dickerman, denied blending substandard petroleum products.

Business

Why Protesters demanded Kyari’s resignation

Published

18 hours ago

November 5, 2024

Sahara Weekly

Why Protesters demanded Kyari’s resignation

Scores of youths stormed the headquarters of the Nigerian National Petroleum Company Limited on Monday, demanding the immediate resignation of the Group Chief Executive Officer of the company, Mele Kyari.

The protesters, led by some Civil Society Organisations, described Kyari’s leadership as incompetent, citing skyrocketing fuel prices, endless fuel queues, and economic hardship in Nigeria.

The protesters carrying placards with different inscriptions such as “we demand the immediate resignation of Kyari”, among others, said the leadership of the NNPCL boss has failed.

The aggrieved youths led by Abdullahi Bilal of the (Two Million Man March Against Oil Scam Cabal) and Barrister Napoleon Otache and Olayemi Isaac from Citizens and Economic Freedom Rights Activists in Nigeria demanded immediate action to address what they described as failed leadership in managing the country’s oil sector.

Central to the protests were grievances over skyrocketing fuel prices and the never-ending queues, which they argued have driven inflation and plunged millions of Nigerians into poverty.

They also decried the importation of adulterated fuel, which they said is a corrupt practice that harms citizens by damaging vehicles and businesses.

They demanded an immediate halt to these imports and accountability for those responsible, questioning how substandard fuel continues to enter the country despite quality control assurances.

Additionally, the group criticized the unfulfilled promise of the Dangote refinery to resolve Nigeria’s fuel crisis, expressing frustration over the billions of dollars spent on refinery development and refurbishing existing facilities.

They argued that despite these investments, fuel shortages persist, leaving Nigeria reliant on costly imports even as an oil-producing nation.

They urged President Bola Tinubu to intervene by overhauling leadership in the oil sector, enforcing greater accountability, and putting citizens’ needs first. The protesters vowed to continue mobilizing until their demands for reform and transparency are met.

Speaking to journalists during the mass demonstration, Abdullahi Bilal said, “The Two Million Man March stands as a united voice for every citizen who has been betrayed by a system that continues to enrich a few at the expense of many.

“Today, we call for the immediate resignation of the current leadership in the country’s oil sector. Their management has failed Nigerians.

“Under their watch, we have seen fuel prices skyrocket without consultation or consideration of the devastating impact on the people. We have endured fuel scarcity while substandard, adulterated fuel is imported, causing further hardship.

“We demand the complete removal of the fraudulent fuel subsidy regime that has only served to enrich a select few. Full deregulation is necessary to introduce transparency, competition, and fairness to our oil sector.”

On their part, Otache and Isaac, insisted, “This act of economic sabotage has led to endless fuel queues, skyrocketing fuel prices, and unprecedented disruptions in the daily lives of Nigerians.

“We demand an immediate end to fuel queues, transparency, and accountability from all involved parties. We want to know how substandard fuel continues to enter the country despite assurances of quality control.”

On July 7, 2019, former President Mohammadu Buhari appointed Kyari as the 19th GMD of NNPC, but with the passage of the Petroleum Industry Act, his current portfolio is without recourse to previous employment ranks in the company.

NNPCL reacts

Reacting, the NNPCL spokesperson, Femi Soneye, said the protestors lack understanding of the sector.

He explained that contrary to their agitation, the GCEO ensured Nigerians had access to fuel at N620 per litre for over a year, even when the landing cost was above N1,100.

Responding via a chat, Soneye said, “Unfortunately, they lack understanding of the sector. If they were informed, they would know that the GCEO is not responsible for the fuel price increase; in fact, he ensured Nigerians had access to fuel at N620 per litre for over a year, even when the landing cost was above N1,100.”

Business

Renewed Hope Agenda and Impacts in Aviation* By Mary Odoma

Published

19 hours ago

November 5, 2024

Sahara Weekly

Renewed Hope Agenda and Impacts in Aviation

By Mary Odoma

President Bola Tinubu’s knack for selecting top talent is unparalleled. In his quest to build a prosperous Nigeria, he’s assembled an exceptional team. By leveraging their expertise, experience, and strategic insight, he’s fostering national stability, economic growth, and a sustainable future.

His latest win is in Aviation and Aerospace Development, where he’s appointed a fearless and straightforward leader, Festus Keyamo, SAN. Keyamo’s commitment to excellence makes him an ideal fit. President Tinubu’s vision for Nigeria is taking shape, and his leadership choices are truly commendable.

A dedicated, charismatic and impactful lawyer, the dynamic and astute developer is a terror to mischief makers and enemies of progress. A tough and forceful personality who is determined with an ultimate goal to change Nigeria.

Appointed on 21st August 2023 as the helmsman of the Ministry, Keyamo has been unwavering in his drive for positive transformation, reforming the sector and bringing about enduring positive impact in a transparent manner.

His Ministry has the core mandate of regulating air travel and aviation services in the country. It is also responsible for overseeing air transportation, air development, maintenance, provision of aviation infrastructural services and other needs.

A very patriotic Nigerian, Chief Festus has several achievements, in line with the Renewed Hope Aviation Roadmap approved by President Tinubu to his credit.

In a steadfast commitment towards revitalizing the nation’s aviation sector, Mr Keyamo was able to ensure the approval of the concession of the Nnamdi Azikiwe International Airport (NAIA), Abuja and Mallam Aminu Kano International Airport (MAKIA), Kano Airports. This is in line with the initiation of the Nigerian Airport Concession Strategy.

Also, in line with the Federal Ministry of Aviation Roadmap, Chief Keyamo initiated the signing of an MoU with the Nile University for the take-off of African Aviation and Aerospace University (AU). This milestone achievement of the Minister aims to integrate and create an avenue for the training, research and development of ready middle-class manpower for the sector.

Equally, under his watch, the pragmatic leader led the Ministry into partnership with the ICRC and also a collaboration with the IFC on infrastructural development. This partnership is to both develop and implement a comprehensive and durable framework that will meet the infrastructural needs of the sector over a long period.

Through Keyamo’s congruence and dynamism, the BASA arrangement is another revolutionary innovation aimed at ensuring the operationalization of direct flights between Nigeria and Brazil.

Keyamo’s motivation and altruistic devotion to having a functional aviation and aerospace sector also moved him to upgrade the Muhammadu Buhari, Airport, Maiduguri to the standard of an international airport. This airport is ready to commence full operation on January 1, 2025

In the area of staff motivation, retirees of the Ministry now have no cause for alarm as their interest is covered. Recently, the Ministry honoured 24 retirees drawn from the lowest rung to the highest. It is in a bid to acknowledge those who have contributed immensely to the growth and development of the sector as Nation-builders.

His prompt response to issues including distress reveals an empathetic personality and someone who is very much alive to his responsibilities. Recently, while reacting to the accident involving a helicopter on the 24th October 2024, Mr Keyamo, immediately upon receiving the distress call, activated protocols aimed at search and rescue operations, mandating all relevant bodies to do everything humanly possible to ensure the safety of the passengers on board the ill-fated vehicle.

The Minister was also actively involved with all the relevant agencies towards ensuring a coordinated response. His active and physical involvement led to the minimization of casualties.

In a show of collaboration and solidarity, the Hon. Minister travelled to far away Marrakesh, Morrocco, to give support to the 2024 International Transport Workers’ Federation (ITF) congress. His presence was to underpin the importance the federal government attaches to the role of the transport workers in stabilizing the aviation sector.

Festus Keyamo as the Honourable Minister of Aviation and Aerospace Development is certainly the best thing that has happened to the industry. He has exhibited passion, dedication and selfless forthrightness in the discharge of his duties and a total comprehension of what it takes to carry out his roles. He is well-groomed for the job and his background has helped him greatly towards shaping the positive impact he is making on society.

Today, Festus has proved that a faithful, disciplined, and dedicated Nigerian can stand out of the crowd because he symbolizes what governance is all about. These feats can only be achieved by a man with the right comportment and conduct in the service of humanity and the fatherland.

Deserving of note is that Chief Keyamo, through the foresight of President Tinubu has well-prepared team leaders appointed as heads of the agencies of the Ministry.

The supportive and collaborative roles of the Nigeria College of Aviation Technology, Nigeria Metrological Agency, Nigeria Civil Aviation Authority, Nigeria Airspace Management, the Federal Airports Authority of Nigeria, and the Nigeria Safety Investigation Bureau (NSIB), have brought about those tangible and noticeable volte-face experienced today in the Aviation sector.

With Keyamo at the helm, Nigeria’s aviation sector is experiencing a transformative shift, thanks to President Tinubu’s foresight in appointing well-prepared team leaders. The Nigeria College of Aviation Technology, Nigeria Metrological Agency, and others are working together to bring about tangible change. Keyamo’s dedication, discipline, and commitment to service have improved Nigeria’s image and reformed the aviation and aerospace sectors.

Odoma is the President of New Nigeria Network [NNN[ writing from Abuja.