Tuesday 31 January 2012

Role of IMF in the fuel subsidy saga

As Nigeria spirals into instability, historian and economic researcher Frederick William Engdahl argues a recent government decision to lift subsidies on imported fuel in the oil-rich nation bears the mark of Washington Consensus shock therapy.

In the article below, Engdahl explains his view.

Nigeria, Africa’s most populous nation and its largest oil producer, is from all evidence being systematically thrown into chaos and a state of civil war. The recent surprise decision by the government of Goodluck Jonathan to abruptly lift subsidies on imported gasoline and other fuel has a far more sinister background than mere corruption, and the Washington-based International Monetary Fund (IMF) is playing a key role. China appears to be the likely loser along with Nigeria’s population.

The recent strikes protesting the government’s abrupt elimination of gasoline and other fuel subsidies, that brought Nigeria briefly to a standstill, came as a surprise to most in the country. Months earlier, President Jonathan had promised the major trade union organizations that he would conduct a gradual four-stage lifting of the subsidy to ease the economic burden. Instead, without warning he announced an immediate full removal of subsidies effective January 1, 2012. It was “shock therapy” to put it mildly.

Nigeria today is one of the world’s most important producers of light, sweet crude oil—the same high-quality crude oil that Libya and the British North Sea produce. The country is showing every indication of spiraling downward into deep disorder. Nigeria is the fifth largest supplier of oil to the United States and twelfth largest oil producer in the world on a par with Kuwait and just behind Venezuela with production exceeding two million barrels a day.

­The curious timing of IMF subsidy demand

Despite its oil riches, Nigeria remains one of Africa’s poorest countries. The known oilfields are concentrated around the vast Niger Delta roughly between Port Harcourt and extending in the direction of Lagos, with large new finds being developed all along the oil-rich Gulf of Guinea.Nigeria’s oil is exploited and largely exported by the Anglo-American giants—Shell, Mobil, Chevron, Texaco. Italy’s Agip also has a presence and most recently, to no one’s surprise, the Chinese state oil companies began seeking major exploration and oil infrastructure agreements with the Abuja government.

Ironically, despite the fact that Nigeria has abundant oil to earn dollar export revenue to build its domestic infrastructure, government policy has deliberately let its domestic oil refining capacity fall into ruin. The consequence has been that most of the gasoline and other refined petroleum products used to drive transportation and industry, has to be imported, despite the country’s abundant oil. In order to shield the population from the high import costs of gasoline and other refined fuels, the central government has subsidized prices.

Until January 1, 2012, that is. That was the day when, without advance warning President Goodluck Ebele Azikiwe Jonathan announced immediate removal of all fuel subsidies. Prices for gasoline shot up almost threefold in hours from 65 naira (35 cents of a dollar) a liter to 150 naira (93 cents). The impact rippled across the economy to everything including prices of grains and vegetables.

In justifying the move, Central Bank Governor Lamido Sanusi insisted that “The monies will be used in provision of social amenities and infrastructural development that will benefit Nigerians more and save the country from economic rift.”President Goodluck Jonathan says he is phasing out the subsidy as a part of a move to “clean up the Nigerian government.” If so, how he plans to proceed is anything but apparent.

The huge unexpected price hike for domestic fuel triggered nationwide protests that threatened to bring the economy to a halt by mid-January. The president deftly took the wind out of protester sails by announcing a partial rollback in prices, still leaving prices effectively double that of December. The trade union federation immediately called off the protests. Then, revealingly, Goodluck Jonathan’s government ordered the military to take to the streets to “keep order” and de facto prevent new protests. All that took place during one of the bloodiest waves of bombings and murder rampages by the terrorist Boko Haram sect creating a climate of extreme chaos.

­The smoking gun of the IMF

What has been buried from international accounts of the unrest is the explicit role the US-dominated International Monetary Fund (IMF) played in the situation. With suspicious timing IMF Managing Director Christine Lagarde was in Nigeria days before the abrupt subsidy decision of President Jonathan. By all accounts, the IMF and the Nigerian government have been careful this time not to be blatant about openly announcing demands to ends subsidies as they were in Tunisia before food protests became the trigger for that country’s Twitter putsch in 2011.

During her visit to Nigeria Lagarde said President Jonathan's 'Transformation Agenda' for deregulation "is an agenda for Nigeria, driven by Nigerians. The IMF is here to support you and be a better partner for you." Few Nigerians were convinced.On December 29 Reuters wrote, "The IMF has urged countries across West and Central Africa to cut fuel subsidies, which they say are not effective in directly aiding the poor, but do promote corruption and smuggling. The past months have seen governments in Nigeria, Guinea, Cameroon and Chad moving to cut state subsidies on fuel."

Further confirming the role US and IMF pressure on the Nigerian government played, Jeffery Sachs, Special Adviser to the United Nations (UN) Secretary General, during a meeting with President Jonathan in Nigeria in early January days after the subsidy decision, declared Jonathan's decision to withdraw petroleum subsidy “a bold and correct policy.”

Sachs, a former Harvard economics professor, became notorious during the early 1990s for prescribing IMF “shock therapy” for Poland, Russia, Ukraine and other former communist states, which opened invaluable state assets for de facto plundering by dollar-rich western multinationals.

Even more suspicious is the manner in which Washington and the IMF are putting pressure on only select countries to end subsidies. Nigeria, whose oil today sells for the equivalent of $1 a liter or roughly $3.78 a US gallon, is far from cheap. Brunei, Oman, Kuwait, Bahrain, Qatar, Saudi Arabia all offer their petrol very cheap to their people. The Saudis sell their oil at 17 cents, Kuwait at 22 cents. In the US gasoline averages 89 cents a liter.

That means the IMF and Washington have forced one of the poorest economies in Africa to impose a huge tax on its citizens on the implausible argument it will help eliminate corruption in the state petroleum sector. The IMF knows well that the elimination of subsidies will do nothing about corruption in high places.

Were the IMF and World Bank genuinely concerned with the health of the domestic Nigerian economy, they would have provided support for rebuilding and expanding a domestic oil refinery industry that has been allowed to rot, so that the country need no longer import refined fuels using precious state budget resources.The easiest way to do that would be to expedite a two-year-old deal between China and the Nigerian government to invest some $28 billion in massive expansion of the oil refinery sector, to eliminate need for importing foreign gasoline and other refined products.

Quite the opposite—the criminal cabal inside the Nigerian National Petroleum Company (NNPC) and the Government making huge profits on the old subsidy system are suddenly making double and potentially triple more to maintain the old corrupt import system, and, of course, to sabotage Chinese refinery construction that could put an end to their gravy train.

­Cutting their nose to spite the face…

Rather than benefit ordinary Nigerians as the IMF proclaims to want, the elimination of the subsidies has further pauperized the 90 per cent living on less than $2 a day, according to Mallam Sanusi Lamido Sanusi, the Nigerian Central Bank governor. An estimated 40 million Nigerians are unemployed in the country of 148 million.

Because transport costs are a significant factor in delivery of food to the cities, food price inflation has soared along with costs of public transportation for the majority of poorer Nigerians. According to the Nigerian Leadership Sunday, “prices of commodities which shot up as a fallout of the fuel pump price increase have refused to come down.” Everything from street vegetable sellers to carwashes to roadside photographers are feeling the shock of the rise in fuel prices. Unemployment is rising as small businesses fold.

The argument of the IMF and the Jonathan administration is that by freeing fuel prices, funds would be available to more social services and rebuilding Nigeria’s “infrastructure.” Both the IMF and the government know it would have been far more economically viable to replace the current corrupt system of importing refined gasoline and fuels with investing in rebuilding Nigeria’s domestic refining capacity.

Son Gyoh of the Nigerian Awareness for Development organization asks, “Would it not be more expedient to pressure government to service the refineries to full production capacity, given the implications on overhead and competitiveness for local industries?”

Gyoh pointed to the source of the problem: “Why have successive governments left the refineries in a state of disrepair while spending huge on subsidy? Is there any chance that the savings from subsidy withdrawal will go directly into rehabilitating the refineries? Does deregulation imply NNPC will no longer operate a monopoly in importation of refined petroleum product, or is this lobby a self-serving lifeline to continue its monopoly? ” He concludes, “In any case, there is good reason to doubt subsidy removal will solve the fuel scarcity problem as the cabal will only regroup to change tactics, a fact Nigerians are only too aware of.”

After Nigeria partly nationalized its oil sector in the late 1970s, it also took control of Shell Oil’s Port Harcourt I refinery. In 1989, Port Harcourt II refinery was built. Both refineries fell into serious disrepair after 1994, when the Abacha military dictatorship cut the “take” of the Nigerian National Petroleum Company NNPC from domestic sale of refined oil products such as gasoline from 84% to 22%. That caused a cash crisis for NNPC and a halt to refinery maintenance. Today only one of four refineries operates at all.

What developed since was a system of NNPC importing foreign gasoline and other refined products for Nigeria’s domestic needs, naturally at a far more expensive cost. The price subsidies were to relieve that higher import cost, hardly a sensible solution but a very lucrative one for those corrupt elements in the state and private sector making a killing, literally, off the import process.

­NNPC criminal enterprise

The IMF is well aware of the real cause of Nigeria’s fuel industry problems. A Nigerian legislative committee examining the sources of the industry’s problems recently released a report documenting that at least $4 billion annually is taken from taxpayers in fuel industry corruption with the state Nigerian National Petroleum Company (NNPC) at the center. According to the commission, “every day, fuel importers drop off 59 million liters of fuel. The country consumes 35 million liters daily. That leaves 24 million liters of oil available for smugglers to export, paid for by government fuel subsidies. This costs the Nigerian people roughly $4 billion yearly, according to Reuters.”

The Nigerian government has said that the 7.5 billion dollars spent yearly on fuel subsidies could be used to provide desperately needed infrastructure. But they omit any mention of the rampant siphoning off of $4 billion of oil by black market smugglers, reportedly with connivance of high NNPC government officials, to sell to neighboring countries at a hefty profit. The refined imported fuel is reportedly smuggled into neighboring countries like Cameroon, Chad and Niger where petrol prices are far higher, according to Abdullahi Umar Ganduje, Deputy Governor of Kano State.

­China as IMF target?

One major geopolitical factor that is generally ignored in recent discussion of Nigerian oil politics is the growing role of China in the country. In May 2010, only days after President Jonathan was sworn in, China signed an impressive $28.5 billion deal with his government to build three new refineries, something that in no way fits into the plans of either the IMF, or of Washington, or of the Anglo-American oil majors.

China State Construction Engineering Corporation Limited (CSCEC) signed the deal to build three oil refineries with Nigerian National Petroleum Corporation (NNPC), in the biggest deal China has made with Africa. Shehu Ladan, head of NNPC, said at the signing ceremony that the added refineries would reduce the $10 billion spent annually on imported refined products. As of January 2012, the three Chinese refinery projects were still in the planning stage, reportedly blocked by the powerful vested interests gaining from the existing corrupt import system.

A report in China Daily last November quoted Nigeria’s Olusegun Olutoyin Aganga, the minister of trade and investment, that Nigeria was seeking added Chinese investors for its energy, mining and agribusiness industries. Last September on a visit to Beijing, Nigeria central bank governor Lamido Sanusiannounced his country planned to invest 5 per cent to 10 per cent of its foreign exchange reserves in China's currency, the renminbi (RMB) or yuan, noting that he sees the yuan becoming reserve currency. In 2010 China's loans and exports to Nigeria exceeded $7 billion, while Nigeria exported $1 billion of crude oil, Sanusi stated.

Until now Nigeria has held some 79% of her foreign currency reserves in dollars, the rest in Euro or Sterling, all of which look dicey given their financial and debt problems. The move of a major oil producer away from dollars, added to similar moves recently by India, Japan, Russia, Iran and others, augurs bad news for the continued role of the dollar as dominant world reserve currency. Clearly some in Washington would not be happy with that.

The Chinese are also bidding to get a direct stake in Nigeria’s rich oil reserves, until now an Anglo-American domain. In July 2010, China's CNPC (China National Petroleum Corporation) won four prospective oil blocks – two in the Niger Delta and two in the frontier Chad Basin, with plans to become core investor in the Kaduna refinery, and construction of a double track Lagos-Kano railway. China’s oil company, CNOOC Ltd also has a major offshore production area in Nigeria.

The IMF and Washington pressure to lift subsidies on imported fuels is at this point in question, as is the future of China in Nigeria’s energy industry. Clear is that lifting subsidies in no way will benefit Nigerians. More alarming in this context is the orchestration of a major new wave of terror killings and bombings by the mysterious and suspiciously well-armed Boko Haram. This we will look at next in the context of Nigeria’s recent transformation into a major narcotics hub

Al-Mustapha, Shofolahan sentenced to death by hanging

A Lagos High Court on Monday sentenced to death by hanging Maj. Hamza Al-Mustapha, the Chief Security Officer to the late Gen. Sani Abacha, for the murder of a pro-democracy activist, Mrs. Kudirat Abiola.
Kudirat was one of the wives of the late Chief MKO Abiola, the acclaimed winner of the June 12, 1993 presidential election.

Justice Mojisola Dada sentenced Al-Mustapha, along with Kudirat’s aide, Lateef Shofolahan.
Dada said that evidence before the court was weighty and showed that the duo conspired and killed Kudirat on June 4, 1996, near the Ikeja end of the former Lagos-Ibadan Toll Gate.
The judge said that the prosecution proved beyond reasonable doubts that the duo met between March 1995 and June 4, 1996 to plot the murder of  Kudirat.

She said that the court believed the evidence of the first prosecution witness, Barnabas Jabila  (a.k.a. Sgt. Rogers), that the murder was plotted at the National Theatre, Iganmu, Lagos.
Dada also said that the court believed Jabila’s evidence that Al-Mustapha gave him (Jabila) his personal gun to shot Kudirat inside her white Mercedez Benz Beast, near the toll gate.
``The second defendant willingly handed over Kudirat Abiola to her killer. The court is a fact-finding tribunal which must be seen to be doing its work without any bias and ambiguity.

`` The first and second defendants jointly agreed to kill Kudirat Abiola. The defendants are found guilty of conspiracy and murder.

`` The evidence is so weighty that the court has no doubts.  The defendants are, therefore, found guilty, as charged.

``The light shines in darkness and darkness comprehends it not. Those who shed blood are those who fear death most.

``The defendants are accordingly sentenced to death by hanging until they are proved dead,’’ the judge held.

The News Agency of Nigeria (NAN) reports that the prosecution team led by the Solicitor-General of Lagos State, Mr. Lawal Pedro, expressed satisfaction at the judgment.

However, the defence team, led by Mr. Olalekan Ojo, said  it would appeal against the judgment.
The judgment was delivered under tight security.

N1.2 MILLION FACEBOOK ACCOUNT, HOUSE SUMMONS EKEJI

The Director General of the National Sports Commission (NSC), Chief Patrick Ekeji is reportedly being summoned by the House of Representatives over the Commission’s expenditures, including N1.2 million for Facebook account.
In a high profile investigation panel set up by the House of Representatives over allegations of financial misappropriation and abuse of office, Chief Ekeji would explain how the N3.7 billion that was advanced to the Commission for the 10th All Africa Games held in Maputo in 2011 was expended.
According to the Nigerian Tribune,
“He (Chief Ekeji) is expected to defend how he transferred monies to 19 sports federation; N1,200,000.00 (One million, two hundred thousand naira) used in opening Facebook account for the National Sport Commission; N182, 124, 179,000.00 used in rehabilitating the National Stadium in Lagos, and another N117,875,820.95 used in rehabilitating the Obafemi Awolowo Stadium (Liberty Stadium) Ibadan. Ekeji will also provide warrant of approval by President Goodluck Jonathan for him to expend the sum of N350,000,000.00 from the yet to be approved 2012 Budget for the London 2012 Olympic Game.”
The said Facebook account of the National Sports Commission currently has about 5000 fans and doesn’t look like anything bought for N1.2 million (about $8000).
While opening a Faceboook account doesn’t cost a dime, it is possible the Commission may have paid a consultant to create and manage the page for a fee or it might just be that budgeting N1.2 million was a good way to embezzle some funds.
Chief Ekeji had earlier been criticised for the poor performance of Nigerian teams in the international arena in 2011 and already, there have been calls for his sack over Nigeria’s sports misfortunes.
The National Sports Commission is responsible for implementing the policy and programs of the Federal Government with respect to sports, sports development, sports infrastructure and facilities development.
The commission is also responsible for preparing national athletes and teams participating and representing Nigeria in continental and international sports competitions
Courtesy Nigerian Tribune

2012 BUDGET: NIGERIA’S WORST BUDGET EVER!!! SEE THE WASTE

These are critical times. Nigeria has never been in a situation like this in my life time. Apart from the period of the civil war, this is the most critical time to be a Nigerian. Our resources have been mismanaged and now we are broke! Our people are being killed not just by extremists but also by the very government that swore to protect lives and property. This piece is about the 2012 budget and its sad realities.
The Basics:
1. The budget of N4.749 trillion assumes an oil price benchmark of $70 a barrel, oil production of 2.45 million barrels per day and zero deduction from Federation Revenues for the fuel subsidy.

2. Despite the above assumptions, the budget contains a deficit of 2.77% of GDP. (The nominal GDP has been estimated by National Bureau of Statistics (NBS) to be about N36 trillion in 2011), so essentially about N1 trillion of the budget is to be borrowed, or relies on exceptional income like privatization proceeds, loans and grants-in-aid.

3. Accordingly, out of the capital budget proposal of N1.32 trillion, only about N300 billion will be available from our federal revenues. If the “subsidy” is not withdrawn, the deficit will be even higher and the FG would then contravene the 3% cap on deficit in the Fiscal Responsibility Act 2007.

4. None of the so-called SURE projects have any NEW source of revenue to finance them other than what have been described above UNLESS:
(1) the oil price benchmark is raised above $70 or
(2) the Naira-Dollar exchange rate allowed to slide thus raising more Naira for the government.
The above assumptions are far-fetched in the current global economy.
Some examples of wasteful spending decisions are itemized below:

5. A review of the budget provisions of 21 out of 50 Ministries, Departments and Agencies revealed the following amounts for some recurrent and capital expenditure items:
• Travel – local and international N13 billion
• Stationery, Magazines, Newspapers, etc. N4.5 billion
• Maintenance of vehicles, furniture, etc. N17 billion
• Training N5 billion
• Fuel and Lubricants for cars, generators, etc N4 billion
• Miscellaneous: welfare packages, refreshments, meals, etc N9 billion
• Acquisition of Computer Software N2.5 billion
• Research and Development: whatever that means! N27 billion

6.The actual provisions in the budget would be at least twice these amounts, and total about N160 billion of waste. This amount is equal to the amount budgeted for the power sector!

7.Some examples of some of the wasteful spending under “Research & Development” are N2.498 billion for “citizen’s call centres” under the Ministry of Communications & Technology, N1.2 billion in the Ministry of Agriculture to incorporate commodity marketing companies! The Ministry of Foreign Affairs wants to spend N322 million to acquire “computer software”. This is very expensive software indeed!

8. A lot has already been written about the budgets in the Presidency. The following are some weird examples of what has been included in the State House (Villa) budget:

9. Overhead is about N7.2 billion, or about N20 million per day to keep our President and VP happy. Their local travel budget is N724 million or N2 million per day, including weekends, while their international travel budget ix N951 million or nearly N3 million per day.

10. The president’s office has N285 million to hand out as “welfare package”, N265 million to buy computers, N150 million to buy scanners, N161 million for buses, N295 million for new furniture, and N1.8 billion to “maintain existing furniture, office and residential quarters”.

11. The intend to buy desktops for N300,000 each, laptops for N314,000 each and scanners for a whopping N190,000. The public address system in the President, VP’s office and Banquet Hall will cost N150 million! The SGF wants to spend N65 million on tree planting. Note that planting a million trees in Abuja over 4 years cost the FCT Administration less than N50 million then!
Conclusion: There is a lot of waste, and misplaced spending priorities in the Budget which can be reviewed to free more funds to finance subsidies, capital investment and improved governance. Do you remember #budgetscam ? This is worse than that!
Now you know why government doesn’t mind killing all of us because they will not free funds from the loots of their corrupt friends, they will not cut their salaries and allowances and they will not reduce their number of aides. Instead of all that, they’d rather hurt Nigerians by all means possible.
You can share this information with as many people as possible. Information has proven useful in this struggle.
#OccupyNigeria we will not tire, we will not falter, we will not fail

Monday 30 January 2012

Office of the first lady is a SCAM

The Office of First Lady must be scrapped. I am sure this is NOT in the constitution and all these women should support their husbands, not running a parallel office where money is wasted on their pointless pet projects to enrich themselves and their cronies.

We only see David Cameron's wife at party conferences. She looks after their children and supports her husband when necessary. Tony Blair's wife is a successful barrister who maintained her career while he was PM.
Michelle Obama only comes out to support her husband and does not run an office.

Note that all these ladies are assets to their husbands and country - educated and enlightened.

So Dame Patience should learn to stay in the background and stop behaving like a person who has only just emerged from the jungle. If she was educated, she would have a career of her own and not make a fool of herself in and outside Nigeria.

Friday 27 January 2012

What GEJ knows about the fuel subsidy fraud

"Information recently made available to 247ureports.com through sources within the power corridors of the federal capital of Nigeria, Abuja, indicates that there appear jolting intricacies laden within the sudden quantum-like spike in oil subsidy payments to select oil marketers/importers during the period immediately preceeding the presidential elections of April 2011 [February to April 2011] and the period immediately following the said elections [April to August 2011] – which coincided with the arrival of Ngozi Okonjo Iweala as the Finance Minister for the Ministry of Finance in August 17, 2011.

A principal and knowledgeable source within the Jonathan administration indicates that the sudden “quantum-leap” in the payment of oil subsidy payments was not a mistake. “The President knew about it” said the source who explained that fake submissions for oil subsidy payments were approved and disbursements were made – and the monies were used towards financing the President’s election of 2011.

On the afternoon of January 11, 2011, two days to the Peoples Democratic Party [PDP] presidential primaries at the Eagles Square in Abuja, the source, pointed to the huge ["staggering"] amount withdrawn from the Central Bank of Nigeria [CBN] for “classified” expenditure. The sum withdrawn, according to the source, was in excess of N150billion.

The money was withdrawn for use against the threat posed by the PDP opponent [Abubakar Atiku] to President Jonathan. Atiku was said to be in a critical race against the president for delegates. The Jonathan campaign had received intelligence the Atiku campaign reached out to 3000 delegates and had disbursed the sum of $3000 to each delegate in exchange for their votes [3000 delegates would give Atiku the victory over Jonathan]. In reaction, the Presidency had to raise immediate ‘cash’ to avert what would appear an embarrassing loss. Within 24hours, the President’s campaign team raised the booty on Atiku – by offering each of the 3000 delegates $7000 in exchange for their votes – an equivalent total of $21million [N3.381billion]. The $7,000 was paid in foreign currency and an additional amount of N250,000 in local currency was handed to each of the 3000 delegates for “hotel and transport” costs – equivalent to a total of N750million. On the night of January 13, 2011, on the day of the PDP presidential primaries, the sum of N4.13billion [N750million + N3.381billion] was disbursed by the Jonathan campaign. And so victory was secured.

Following the victory at the Eagles Square, the President’s campaign re-focused its attention to consultations [taming] with political groups within the North who were unhappy with Jonathan’s candidacy and believed that President Jonathan should have stepped down for a northern candidate – in line with the zoning agreement previously reached by the party. For this, the president’s men made extensive consultations with each of the Emirs in Northern Nigeria and with other leaders of thought in the north. Confidential information available to 247ureports.com reveals that the consultation exercises, by the end of January 2011, cost the President’s campaign an excess of N500million.

The Jonathan campaign took an interesting turn as it entered February 2011. A fleet of private Jets was leased from four major carriers -King Airlines, Wings Aviation, Top Brazz and Overland – for use towards the national campaign. The normal charge for per hour of each aircraft was $6000 per hour – and the Jets operated at 70 hours per week. The Jonathan campaign paid the rate of $10,000 per hour - for the period of 10weeks – equating to an amount of N100million daily – totaling to an equivalent of N10.5billion for the said period.

Then came the February 14, 2011 billionaires meeting where the 28-member Presidential Campaign Council [PCC] was set up at the Eko Hotel in Lagos. The billionaires consisted of Aliko Dangote, Otedola, Adenuga, Elumelu, Jimoh Ibrahim, Emeka Offor, Kasim Bukar, Sayyu Dantata, Jim Ovia and others. And as the PCC which was primarily tasked with raising funds for the campaign began work in February of 2011, the oil subsidy requests for payment also began to experience a quantum leap from the budgeted N245billion to N1.7trillion.

Interestingly, the Petroleum Resources Minister, Mrs Allison Madueke and the Finance Minister, Mrs Okonjo Iweala while testifying before the House of Representative Committee investigating the Oil Subsidy funds management indicated that the amount disbursed as at February 2011 was N245billion – and that begining from March 2011 the amounts submitted for approval suddenly surged.

Explaining the surge, the source pointed to the personalities within the 28-member billionaire PCC as directly responsible for the surge from N245billion to N1.7trillion. According to the source, shortly following the formation of the PCC, Sayyu Dantata, a member, through his company, MRS Oil submitted a N225billion oil subsidy request for payment, Femi Otedola, through his company, AP, submitted a N105billion oil subsidy request for payment, a ‘mysterious’ construction company by the name Pinnacle Construction also submitted a claim for N300billion – during the same period.

It was during the same period that Stella Odua Ogiemwonyi who was one of the leaders in the Jonathan campaign organization filed a claim that she had spent her own personal money to the tuned of N5billion – for the maintenance of the campaign secretariat. Stella Odua Ogiemwonyi is the Chief Executive Officer of Sea Petroleum and Gas. Interestingly, her company submitted claims for oil subsidy payments in excess of N5billion. Her claim was approved and paid.

Cursory inquiry confirms that a significant percentage of the claims submitted by the members of the PCC were fraudulent. The fraudulent oil subsidy claims freed the President’s ability to spend in a manner deemed unprecedented by informed experts.

On March 16, 2011, the campaign released N55million to a media company [name withheld] for a single advertisement slot. By March 31, 2011, the campaign paid N7.3billion in advertisements. On March 28, 2011, it donated one car and one bus to each of the 36 chapters around the country and the FCT – along with a cash donation of N14million to each chapter [totaling N518million]. In monetary terms, its equates to a little over N1billion. Between April 12 and April 15, 2011, the campaign disbursed N107billion.

When approached regarding the sourceof the exobitant spending, the Director of the Neighbor to Neighbor Initiative [the main NGO funding and managing the Jonathan campaign], Mr. Mike Omeri stated the donations came from online contributors.

Comparing the yearly trendings of the oil subsidy claims submitted from 2006 to 2011, highlights the anomaly in the oil subsidy claims between March 2011 and August 2011. In 2006, subsidy claims was submitted for 26.9million liters of petrol for the amount N200billion, in 2008, subsidy claims was submitted for 33.4million liters of petrol for the amount N630billion, and for 2010, subsidy claims was submitted for less than 33million liters of petrol for a little over N600billion.

And so it begs the question, What the President knew about the N1.76trillion subsidy payment·

11 RULES you will neither know nor learn from school

Bill Gates recently gave a speech at a High School about 11 things they did not and will not learn in school.
He talks about how feel-good, politically correct teachings created a generation of kids with no concept of reality and how this concept set them up for failure in the real world. 
Rule 1 : Life is not fair - get used to it!  

Rule 2 : The world doesn't care about your self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself. 

 Rule 3 : You will NOT make $60,000 a year right out of high school. You won't be a vice-president with a car phone until you earn both.  

Rule 4 : If you think your teacher is tough, wait till you get a boss.  

Rule 5 : Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: they called it opportunity.  

Rule 6 : If you mess up, it's not your parents' fault , so don't whine about your mistakes, learn from them. 

 Rule 7 : Before you were born, your parents weren't as boring as they are now.. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent's generation, try delousing the closet in your own room. 

 Rule 8 : Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they'll give you as MANY TIMES as you want to get the right answer. This doesn't bear the slightest resemblance to ANYTHING in real life. 

 Rule 9 : Life is not divided into semesters. You don't get summers off and very few employers are interested in helping you FIND YOURSELF. Do that on your own time. 

Rule 10 : Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs. 

Rule 11 : Be nice to nerds. Chances are you'll end up working for one.  

REPS FUEL SUBSIDY PROBE

Please tell me why heads have not started rolling after reading this:
REPS FUEL SUBSIDY PROBE:
*Farouk Lawan: what is Nigeria’s daily fuel consumption?
Dieziani: 52m L
NNPC: 35m l
DPR: 43m l
PPPRA: 24M l
... Okonjo: 40M l
*Farouk Lawan: What was the subsidy for 2011?
Dieziani: 1.4Trillion
Okonjo: 1.3Trillion
CBN: 1.7Trillion
*Farouk Lawan: Can we have the KPMG REPORT?
Okonjo: I have to go through the report first
Dieziani: I have not seen the report
*Farouk Lawan: What is the production capacity of our local refineries?’
NNPC: 30%
PPPRA: 20%
DPR: 13%
Dieziani: 15%
*Farouk Lawan: Does Nigeria pay subsidy on locally refined Products?
Diezaini: it depends
NNPC: The lay man cannot understand how it’s done
PPPRA: yes
DPR: No
*Farouk Lawan: Why is Kerosene still scarce?
Dieziani: Because its use by the aviation industry as aviation fuel
NNPC: Because there is no subsidy so NNPC overstretched its resources
PPPRA: it’s not properly deregulated
*Farouk Lawan: what is the balance in the subsidy accounts?
Diezieni: it’s a virtual account
NNPC: There is no account in existence as the lay man will look at it
PPPRA: account is a technical one
CBN: no account with us for subsidy
Okonjo: The account exists but not with a bank.
NA WA O
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Thursday 26 January 2012

10 point demand of the EIE initiative

Our 10-Point Demand: Enough is Enough Nigeria's Official Reaction to the Called-Off Labour Strike

 January 18, 2012. Lagos, Nigeria.
"Protest is beyond Labour. It is a matter for the Nigerian people.”
-          Abdulwaheed Omar, NLC President

In the last 2 weeks, the spirit of a Nigerian Dream birthed in the hearts of all sincere patriots was renewed. We salute the Nigerian people who have risen up with one voice to make it clear to our rulers that Enough is Enough! What we saw was not a strike made powerful on the strength of the labour unions. What we saw was a popular but peaceful protest of the Nigerian people, many employed but even more unemployed, disadvantaged and oppressed, giving notice to a civil but clearly un-democratic government, that it will no longer be business as usual in Nigeria. The decision by the Federal Government to deploy the military to key States to stifle the constitutional right of Nigerians to peaceful protest while a key suspect in the Boko Haram killings on Christmas Day is allowed to escape speaks powerfully to the politicization of the issue and the government’s perspective on security.

We at Enough is Enough Nigeria (EIE) want to inform the Nigerian people, who have spoken so clearly and made such sacrifice to have their collective voice heard, that Labour took the decision to accept the Federal Government’s proposal and call off the protest without due consultation and support from a broad range of civil society groups that coalesced to create the groundswell of the popular civil action of the last week as they claimed at yesterday’s press conference. We urge all Nigerians to ensure that the unique opportunity of the solidarity and sacrifice of the last week are not lost to the unilateral and ill-considered decision of the NLC/TUC leadership.

In particular, it is important for Nigerians to honour the memory of those brave compatriots who lost their lives in the course of last week’s protests all across Nigeria. The least we should do in honour of their sacrifice is to ignore the call from the leaders of organized Labour and continue to resist “democratic slavery” until our
collective voice is heard.

In this vein, we have set forth the following demands in the public space directed at the Federal Government and the Legislative Arm of the Federal Republic of Nigeria.

WE DEMAND:
1.        The appointment of two independent international firms that have not been involved in any of the previous audits of the Ministry of Petroleum Resources, NNPC and other state owned entities in the Nigerian oil sector, to carry out a forensic audit of subsidy payments over the last five years. The report of this audit should be the subject of a public hearing at the National Assembly.

2.        That the voice of the people must be heard in the proceedings of the Justice Alfa Belgore Commission. Therefore, a broad range of civil society groups must participate in the proceedings of the Commission as a necessary element that can confer any form of legitimacy to its expected output. The Commission’s Report must be submitted and adopted before the 2012 Budget is approved.

3.        Government must publish the roadmap for the complete deregulation of the oil sector. Removal of subsidy is only one element of the deregulation process and certainly not the first step. Following the example of the power sector roadmap, the oil sector deregulation roadmap must commit to specific action and time frames and responsibility must be vested in identified institutions and individuals.

4.       The latest version of the Petroleum Industry Bill must be passed into law within the minimum time provided by the Constitution and the rules of the National Assembly.

5.        The vicious cycle of turn-around maintenance of government owned refineries MUST stop. The refineries should be sold or concessioned to private investors, if this last round of discussions with the original builders for TAM is unsuccessful.

6.       Full disclosure of salaries and allowances at all tiers of government and a review of same with clear parameters, full disclosure of ALL presidential and parliamentary aides, advisers and assistants. We demand at least a 50% cut across the board in legislative salaries, allowances and overheads of running the National and State legislatures. The Lagos State review of remuneration in the judiciary can serve as a guide. The cost of our federal and state legislatures is an outrage. In the long term, we need to create a part-time single chamber Federal legislature that pays sitting allowances.

7.        The Federal Government should take immediate steps to achieve an outright reduction of at least 25% in its bloated personnel costs in 2012 and a sustained outright reduction in recurrent expenditure of
at least 10% year on year, over the next 3 years. Of the N2.748trn proposed recurrent expenditure in the 2012 budget proposal of the Federal Government, N1.64trn or 72% represents salaries and allowances of Federal public servants. We do not yet know their exact number. Therefore, the federal and state governments must eliminate “ghost workers” and all fraudulent salary and pension payments, rationalize their head-count to minimise duplication and waste, which should include the
speedy review and implementation of the Report from the Presidential Committee on Restructuring and Rationalisation of Federal Government Ministries and Parastatals.

8.        Massive investment in road and rail mass transit infrastructure, under government-enabled conditions but private sector ownership and management. In addition, the importation of passenger buses or CKD components for their local assembly should be made duty free and the operations of mass transit companies, partnerships or sole proprietors, should be tax free for five years, during which prices should have normalised. The same incentives should apply to rail and all other forms of mass transit.

9.       That the National Assembly send back the 2012 Budget for review, in light of the duplications and criminally high line items.

10.     A clear plan of expenditure on the post-January 1st ‘savings’. With the subsidy removed, at a price differential of N76 on N141, the Federal Government ‘saved’ N2.66 bn ($16.625 million) per day. As of yesterday (Day 16), it was N42.56 bn ($266 million).

Finally, it would be difficult, if not impossible, for the Honourable Minister of Petroleum Resources to oversee/supervise the investigation of allegations in which her office features prominently. We expect that the honourable thing to do in this situation would be step aside from the office pending the conclusion of the investigations. 

The above points represent our demands on behalf of the many silent and voiceless Nigerians that we met on the streets of Nigeria in the last 2 weeks. They demand a government that is structured for effectiveness, above board with integrity and mindful of their daily struggles for existence. We commit to remain a clear voice on their behalf and in this task we will not fail or falter.

God bless the Federal Republic of Nigeria.

Amalgamation was in 1914 to be renewed every 100 years......Does that send a signal?

The amalgamation of southern and northern Nigeria by the British was to be experimented for 100 YEARS to know if it's going to work or not, according to the secret government document the British left after independence. Although the document is kept secret, this fact is generally known to the ruling class, most dons of political science and law as well as the government of UK. However, there has been consistent efforts by Nigerian government to keep this knowledge out of public as it may lead to agitation for breaking the country into two i.e pre-1914 status especially by those in the south. The awareness of this document and the closeness of 2014 has been causing panic among the Northern elites; this panic was behind the recent comment by the senate president that Nigeria will not break up. It was also behind the warning by NBA president when he said in Benin  this week that Nigeria may break-up. Even pres. Jonathan is nervous about this fact; remember that he kept on saying that Nigeria will not break-up. Also,it was the real reason behind the northern governors recent security meeting in Kaduna, according to some sources. All these sudden talks about nigeria breaking or not breaking up by the political leaders including the president show how anxious they are about the implications of the document and the closeness of almighty 2014.  On the international scene, the knowledge of this document was behind the prediction by American diplomats that Nigeria will break-up in 2015. The US army is also preparing on how to respond to the possible break up of Nigeria.

   IMPLICATIONS OF THE DOCUMENT
1. BY 2014, NIGERIA WILL NO LONGER LEGALLY EXIST

2. NIGERIA WILL BE BACK TO PRE-1914 STATUS OF TWO STATES OF SOUTHERN NIGERIA AND NORTHERN NIGERIA BOTH LEGALLY AND TECHNICALLY,   ALTHOUGH THE RULING ELITES MAY IGNORE THIS REALITY EXCEPT THERE IS REVOLUTION FROM THE PEOPLE.

3. PEOPLE OF SOUTHERN AND NORTHER NIGERIA MUST COME TOGETHER TO ENTER A NEW AGREEMENT UNDER THEIR OWN TERMS.

4. JOIN THE REVOLUTION, SHARE THIS ON FACEBOOK

 for jonathan's response check: http://www.coastalnews.com/component/content/article/120-nigeria-news/1633-president-jonathan-flaws-prediction-on-nigeria-breakup-by-2015.html. That show how anxious jonathan is


for US army's preparation, read: http://www.nigeriapeoplesmovement.org/component/myblog/us-army-prepares-for-nigerias-possible-break-up-.html

for the secret document you cant see it because it's secret