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N470m Lost Daily to Gas Pipeline Attacks –FG

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Minister of Power, Works and Housing, Mr Babatunde Fashola

Last weekend’s attack on the Nigeria Gas Company’s pipeline connected to Chevron Nigeria Limited’s facility at Escravos in Delta State is costing the economy a daily loss of N470m and has also resulted in the shutdown of two of the country’s refineries.

According to the Federal Ministry of Power, Works and Housing, the vandalism of the gas pipeline would impact negatively on the Olorunsogo National Integrated Power Project plant, which has capacity for 600 megawatts of electricity, and other power plants across the country.

The Special Adviser on Media to the Minister of Power, Works and Housing, Mr. Hakeem Bello, said in a statement on Wednesday that although security agencies had intensified the search for those behind the attack on the pipeline, their action would slow down the country’s power supply system.

Explaining the financial and economic implications of the action on the Nigerian economy, he said, “The sabotaged gas pipeline, which contributes to the Escravos-Lagos Pipeline System, has led to a loss of 160mmsfcd of gas daily. At a cost of $2.50 per thousand scf, this loss means about $400,000 loss to the country on a daily basis (N78.8m) in gas volume.

“This is in addition to losses to be incurred daily from power generation ($1,988,223 or N391,680,000 daily). The total daily loss to the country is, therefore, estimated at N470,479,931. Repairs of the damaged pipeline are estimated to cost $609,137 or N120,000,000.”

According to the ministry, the real sector of the economy has also been counting its losses as some cement companies around Olorunsogo like Ewekoro and Ibese are also affected.

It stated that the latest incident occurred when the Federal Government through the Ministry of Power, Works and Housing and the Ministry of Petroleum Resources along with allied agencies had been making concerted efforts to improve gas supplies to the power plants.

“Such efforts led to previously offline plants like Ihovbor and Sapele coming back online and the subsequent output making up for the loss in power. The pipelines are being actively monitored for further attacks or other unforeseen impacts,” the statement noted.

The ministry added that available records showed that six incidents of vandalism from December 2014 to February 2015, which affected the Trans Forcados Pipeline at Oben, Sapele and Oredo, and the Escravos Lagos Pipeline System CNL led to a loss of 1,100mmscfd.

Industry experts explain that a loss of 200mmscfd is equivalent to a power reduction of 700MW.

Similarly, the Nigerian National Petroleum Corporation on Wednesday announced the operational shutdown of the Port Harcourt and Kaduna refineries owing to crude supply challenges arising from the recent attacks on vital crude oil pipelines.

The NNPC, in a statement issued by its Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, said the plants were shut simultaneously on Sunday after the Bonny-Okrika crude supply line to the Port Harcourt refinery, and the Escravos-Warri crude supply line to the Kaduna refinery suffered breaches.

The NNPC stated that before the closure, the Port Harcourt refinery was recording a daily petrol yield of over 4.1 million litres, while the Kaduna refinery was posting a daily petrol production of about 1.3 million litres.

The national oil firm also stated that the Warri Refining and Petrochemical Company was on stream and was producing a little above 1.4 million litres of petrol per day.

The NNPC, however, gave an assurance that it had put in place strategies to guarantee unimpeded countrywide availability of petroleum products.

“In response to the unexpected setback, we have activated comprehensive remedial measures to sustain the prevailing stability in the supply and distribution of petroleum products across the country,” it said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Government

Zabarmari Massacre: Buhari to Provide More Resources for the Nigerian Military

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President Muhammadu Buhari

President Muhammadu Buhari has promised to provide more resources to the military in the aftermath of the Zabarmari massacre.

On Saturday, Boko Haram killed 43 people with around 70 people still missing in Zabarmari, a village in Borno State.

Reacting to the massacre, Buhari, through his official Twitter handle @MBuhari said “Nothing is more important than ensuring the security of lives and property of Nigerians. Everything is secondary when security is at stake. I will ensure that more resources are made available to the military and other security agencies to prosecute the war against terrorism.

“As we mourn all the lives lost in Zabarmari, the Armed Forces have been given the marching order to take the fight to the insurgents, not on a one-off, but on a continuous basis, until we root out the terrorists.

“We will intensify our cooperation with neighbouring countries on bilateral and multilateral levels, to ensure that there is no hiding place for the terrorists.

“As I noted earlier, the massacre by Boko Haram in Zabarmari is nothing short of senseless, barbaric, gruesome and cowardly. It reinforces our resolve to root out all forms of insurgency and insecurity not just in Borno but everywhere across Nigeria.”

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Boko Haram Kills Rice Farmers in Borno State, Northeast Nigeria

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Rice farmers were killed on Saturday morning in the Northeast Nigeria by suspected Islamist militants, Boko Haram, according to a Reuters Report.

The report also noted that 30 of the people killed were beheaded while over a dozen others were still missing.

However, resident of the Zambarmari Village where the attacks took place said a total of 70 people were feared dead.

Another resident and Amnesty International were quoted as saying at least 10 women were among those missing.

In another statement by Edward Kallon, the United Nations’ humanitarian coordinator in Nigeria, it was armed men on motorcycles that led the brutal attack on civilians harvesting their fields.

Armed men on motorcycles led a brutal attack on civilian men and women who were harvesting their fields,” Edward Kallon stated.

“At least 110 civilians were ruthlessly killed and many others were wounded in this attack,” he added, noting that several women are believed to have been kidnapped.

“The incident is the most violent direct attack against innocent civilians this year. I call for the perpetrators of this heinous and senseless act to be brought to justice,” Kallon said.

On Sunday, Governor Babaganan Umara Zulum of Borno State, who was at the burial told journalists that at least 70 farmers were killed on Saturday.

The Governor, therefore, called on the Federal Government to recruit more Civilian Joint Task Force members, Soldiers and civil defence fighters to protect farmers in the region.

He added that people are facing desperate choices.

In one side, they stay at home they may be killed by hunger and starvation, on the other, they go out to their farmlands and risk getting killed by the insurgents,” he said.

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In The Fight Against Corruption, No Individual is Bigger Than The State – Buhari

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Muhammadu Buhari

In response to the suspended acting EFCC Chairman, Ibrahim Magu, President Muhammed Buhari, lamented that the anti-corruption war becomes endangered “when persons entrusted with the responsibility of that magnitude become suspects themselves.”

Buhari, whose vision is to put an end to corruption in Nigeria, believed that every aspect of the nation’s life is enshrined in corruption and it’s of major concern when leaders of institutions saddled with the mandate to fight the menace are found in the waves of the corruption they claimed to be fighting.

This act is a great abomination not only because it strikes at the root but it also trivialises and undermines the anti-corruption crusade itself, the President explained.

He further said that in a bid to put an end to this great abomination, he had set up Ayo Salami Panel to unravel the mystery behind the mystique of Magu’s alleged involvement in corruption that his administration is fighting.

Buhari said that his administration is ready and willing to go all out in the fight against corruption, and no one is too big nor above the law to become a victim of anti-graft’s sledgehammer.

The president said, “However, the stark reality of widespread corruption becomes poignant when allegations of corruption touch on the leadership of an institution set up by law to coordinate and enforce all economic and financial crimes.

“It is an abomination that strikes at the root and undermines the government’s anti-corruption programme.

“It was in response to the serious allegations against the Economic and Financial Crimes Commission that I set up a panel headed by the Honourable Justice Isa Ayo Salami, retired President of the Court of Appeal, via an Instrument dated 3rd July 2020 pursuant to the Tribunals of Inquiry Act (Cap T21, LFN, 2004).

“We recognise that there are more grounds to cover in the war against corruption, and we are prepared to go out to possess those lands by cutting off any stream that nourishes the seed of corruption and supports its growth.

“Let it be known that in the fight against corruption, no one is too big to tackle, as no individual is bigger than the Nigerian State!”

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