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Alison-Madueke Refutes Claims She Awarded $24bn Oil Swaps without Contracts

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Alison Madueke

Former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, who is currently undergoing extensive cancer treatment in the United Kingdom, has strongly refuted claims that she awarded crude oil swaps valued at $24 billion without supporting contracts.

In a statement, supported by letters from the Nigerian National Petroleum Corporation (NNPC) to the former minister when she was in office, which was issued in Abuja through her spokesman, Mr. Clem Aguiyi, Alison-Madueke rejected reports attributed to the probe in the House of Representatives on the oil swaps claiming that she granted an “extension” instead of approval for the renewal of the contracts for the swaps.

She described the latest attack on her person as a fabricated tissue of lies deviously concocted to sustain the escalating evil narrative against her person.

Recalling the events and putting the facts in proper perspective, the former minister who spoke through Aguiyi insisted that what she gave were “approvals for renewal of contract for first, a one-year term each for Messrs Trafigura Beheer BV and Messrs Society Ivoirienne de Raffinage (SIR) in August 2010 and then for a two-year term in August 2011 for the same companies”.

The NNPC subsidiary, Duke Oil, was given approval for a one-year term in January 2011, while two other approvals were consequently sought by the group managing director of NNPC – the first of these on the 29th August 2014 was seeking to ratify all three aforementioned approvals which had apparently variously expired during the course of 2013, the statement said.

“In view of the criticality of the situation, the former minister immediately approved/ratified all three renewals. Expiration of those terms were put at 31st December 2014, following assurances to the former minister that the contractual obligations of the parties to NNPC had in fact been fully met, despite the regrettable lapse in renewal time,” it added.

Alison-Madueke, in the statement, revealed that the said lapses in expiration to renewal dates were seven months for Duke Oil, 10 months for SIR and 12 months for Trafigura.

“Secondly, on the 28th of October 2014, following the recommendation of the then GMD, NNPC, the minister approved OPAs for a new term of two years commencing from 1st January 2015.

“The entities recommended by NNPC were Sahara Energy Resources Ltd, Aiteo Energy and Duke Oil. NNPC strongly recommended and outlined the benefits of the OPAs over the SWAPs and put forward the case for migration from the OPAs and crude exchange (swap) contracts to OPAs fully.

“NNPC posited that the ‘experienced benefits of the OPAs to the federation’ would be much greater. All approvals were due process-driven and were only given by the former minister following formal statutory written requests, which contained the technical basis for the renewal and were sent to her by the GMD, NNPC, as is the normal practice.

“NNPC had clearly requested for the approval of the former minister for renewal of the crude oil for refined products exchange agreement and renewal of the offshore processing agreements on all the various occasions outlined earlier in this press release.

“Whereas, it was the former minister’s responsibility to either give or refuse approval, it was not within her purview as minister to draft, initiate or conclude the processes of signing the final contracts, as it is the statutory responsibility of NNPC to ensure that all technical areas are duly covered and all requisite due process parameters are duly implemented,” the statement noted.

According to her spokesman, “There would have been little need to respond to this particular issue at this time considering that the former minister is still indisposed and would have wished to be left alone to recuperate.

“She will speak for herself in due time. It is nevertheless imperative that records are set straight so that Nigerians and posterity will know the truth.

“Mr. (Austin) Oniwon (former GMD, NNPC) was right when he stated that the 445,000 barrels of crude oil for domestic refining is the property of NNPC, bought from the Federal Government of Nigeria at the prevailing rate and therefore as GMD, he did not need the Federal Executive Council’s or presidential approval to enter into swap arrangements that will enable NNPC fulfill its statutory obligations.

“It was also correct that contrary to the picture being painted in the media not more than 210,000 bpd out of the 445,000 bpd lifted by NNPC to ensure adequate supply and distribution of petroleum products was traded under the following swap arrangement: OPS – SIR – 60,000bpd; Swap – Trafigura – 60,000bpd; and swap – Duke Oil – 90,000bpd.

“What the GMD was required to execute of the above was the statutory approval from the minister for the companies! Refineries chosen by NNPC to participate in the swaps as outlined in Section 4 of the Petroleum Act and Section 20 of the NNPCAct.”

Continuing, Aguiyi said that it is incorrect to say that the former minister gave “approval for extensions” unless “extension” could legally be substituted for “renewal” because what Alison-Madueke gave (and the records are there) was approval for “renewal of contracts”.

“And these approvals were given based on the letters of request received from the GMD of NNPC,” he added.

Aguiyi also described as “extremely disturbing” reports that Trafigura and SIR had lifted crude worth $24 billion before their respective contracts were signed in 2014 and that those contracts were back-dated to look like they were signed in 2011 when their initial contracts first expired.

“If indeed that was the case, then the former minister could not have been party to it, as she was not involved in either the preparation or the signing of NNPC contracts.

“She reaffirmed that she most certainly signed the second set of requisite approvals requested by NNPC for renewal of the contracts of both Messrs Trafigura Beheer BV and Messrs Societe Ivoirienne de Raffinage in August of 2011 for a two-year term.
“The former minister clearly fulfilled her statutory obligations by signing the request for approval for the renewals as and when presented to her.

“She noted that on the 29th August 2014, NNPC sought her approval for a new short contract ratification term that would expire on 31st December 2014.

“It became apparent that NNPC had failed to request for ministerial approval between late 2013 and August 2014 when the previous respective contracts had variously expired which meant that the various transactions had had no written contractual cover for the periods varying from seven to 12 months as follows:

• SIR: contract expired 3rd October 2013 and was renewed 29th August 2014 (10 months without written contract);
• Trafigura: contract expired 30th September 2013 and was renewed 29th August 2014. (12 months without written contract);
• Duke Oil: contract expired 30th January 2014 and was renewed 29th August 2014. (seven months without written contract).

“It must be noted that the corporation gave assurances to the former minister that it had assiduously upheld all its rights and performed its obligations as if a written contract existed during the periods mentioned, thereby ensuring the protection and safeguard of all national interest,” Alison-Madueke’s spokesman said.

He added that the former minister also took time to correct what she described as the erroneous impression being created by the media that she originated the OPAs and swaps.

“It is important to note that the crude oil swap arrangement predates the tenure of Mrs. Alison-Madueke as Minister of Petroleum Resources. All the Swap/ Offshore Processing arrangements currently in place and under her watch followed the same rigid template that was established by late Alhaji Rilwanu Lukman as Petroleum Resources Minister and approved by late President Musa Yar’Adua in 2009.

“The Yar’Adua administration had in 2009 signed a one-year term Offshore Processing Agreement with Nigermed Petroleum SA, a joint venture company between NNPC and British Petroleum International (BPI),” he disclosed.

According to her spokesman, “The OPA and Crude Oil for Product Swap were strategic arrangements/decisions reached by the NNPC and the federal government in 2009 in view of the down-time of the nation’s refineries.

“The arrangement was designed to help NNPC achieve an effective and robust petroleum products delivery option to the Nigerian public. Under this arrangement, it was the responsibility of NNPC to identify a crude oil trader and term contract holder who had affiliations with a refinery.

“The former minister’s role was limited to granting statutory approval to requests made by NNPC in this regard. The former minister never exceeded her powers nor did she take on the role of anyone else,” he added.

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.

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Envoy Considers Establishment Of Chinese Banks In Nigeria To Boost Economy

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Chinese Ambassador to Nigeria- Investors king

Mr Cui Jianchun, the Chinese Ambassador to Nigeria, says he is in talks with Chinese owned Banks to establish operations in Nigeria.

This, the envoy said, is to boost Nigeria’s economy and expand trade relations between the two nations.

Cui made this known on Tuesday in Abuja while addressing Journalists during the commemoration of the 2021 Chinese Moon Festival and China-Nigeria Cultural week.

According to Cui, the establishment of Chinese Banks in Nigeria will also be one of the key areas of discussion during the China-Nigeria Binational Committee meeting, which he is also pushing for the establishment.

He said that an efficient financial institution was a key driver to achieving a strong economy, one Nigeria can learn from China’s experience.

“Before my departure from Beijing to Abuja, I talked to several banks in China. When you list the World’s 10 big banks, six are in China.

“The Banking sector is very important, because, without money, we cannot build our industries.

“What I am thinking here is best to talk to the governor of Central Bank and how we can allow the Chinese Banks to run office here and now, they are doing the feasibility studies on that.

“I am working hard that in the Bi-national meeting, I hope we can make a big decision and give a big push to let the banking industry and insurance industry because financial integration and institutions are key.

“If you go to China, you will find our banking industry is very powerful, not only for business but the change in the way of life.

“Because of the COVID-19, the Banking Industry is a little hesitant, but I told them Nigeria has a lot of human resources and as long as we work together, we can do big things.

“And that is why it is important to invest in the banking industry, to solve this problem,” Cui said.

Extolling the extant China-Nigeria trade relations, Cui noted that the volume of trade between China and Nigeria is nearly 20 billion US Dollars, with an increase from 2020’s 19.2 billion dollars.

Cui said the Chinese economy is restoring to the normal post-COVID-19 pandemic and both governments are working hard on how to expand imports and exports.

Speaking on the event, Cui said the China’s moon festival is a very important and significant one for China as it symbolises family reunion, national peace and social harmony.

The envoy said the 2021 celebration is also a special one as it coincides with the 50th Anniversary of China-Nigeria’s bilateral relations.

He said that both countries also share Oct. 1 as their National Days.

He said it is also on that note that the Chinese Embassy is honouring 50 Nigerian employees of Chinese Companies in Nigeria for their outstanding performance and contribution to strengthening diplomatic ties.

Dr Ifeoma Anyanwutaku, the Permanent Secretary, Federal Ministry of Information and Culture, also lauded the Nigeria-China relations.

She said the relations had recorded great successes over the past five decades.

“The five decades of co-operation had since witnessed several cultural activities and exchanges in the spheres of arts, music, dance, exhibition, cultural administration, training and capacity building of cultural officers.

“And recently, the development of Cultural Industries centres in Nigeria, among others.

“I must add that China, through the youth-oriented programmes such as the photos competition and similar activities in the past is surely a dependable ally.

“In redirecting the energy and mind of our youth to creative ventures, thereby furthering the Nigerian government’s policy of lifting a hundred million Nigerians out of poverty in the next 10 years”, Anyanwukatu said. (NAN)

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Lagos Prohibits Open Cattle Grazing, Sanwo-Olu Signs Bill Into Law

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herdsmen

Lagos State Governor Babajide Sanwo-Olu, on Monday, assented to the bill prohibiting Open Cattle Grazing and Trespass of Cattle on Land, signing the legislation into law 11 days after it was unanimously passed by the State House of Assembly and transmitted to the Executive arm for authorisation.

By implication, it is now criminal in Lagos for cattle rearers to occupy unapproved public areas and private land with their livestock for grazing. The law also prohibits the act of moving cattle round public places by herders.

The signing of the anti-open grazing law by the Governor followed the decision of Southern Governors’ Forum last August, setting the September deadline to pass the law across member States.

There have been crises witnessed in some States, resulting from alleged open grazing.

Although farmer-herder crisis is not pronounced in Lagos, the anti-open grazing law is expected to prevent the spillover of the menace into the State.

Sanwo-Olu, who assented to the bill during the State’s Executive Council meeting in Alausa, directed the security agencies to swing immediately into action and enforce provisions of the law.

He said: “By the powers vested in me as the Governor of Lagos State, I am signing the bill on Open Cattle Grazing and Trespass of Cattle on Land into law to prohibit issues associated with open grazing of livestock.”

The Governor also signed legislation transforming the Lagos State Domestic and Sexual Violence Response Team (DSVRT) into a full-blown agency.

The development coincided with the commemorative month dedicated to raising awareness on gender-based violence in the State. The Governor and members of the State’s cabinet wore attire with purple shades to support the campaign against sexual violence.

The DSVRT legislation provides for the establishment of Sexual Offenders’ Register that would help the State efficiently tackle violations in the communities.

After signing the law, Sanwo-Olu said: “Raising awareness about domestic and sexual violence is an important piece of working to end the cycle of violence. It is important to reiterate the State Government’s zero tolerance to all forms of sexual and gender-based violence. We will not rest on our oars until the menace is reduced to the barest minimum in Lagos.”

The Governor appointed Mrs. Titilola Vivour-Adeniyi as the Executive Secretary of the new agency.

Vivour-Adeniyi was the coordinator of the response team before the legislation was signed into law.

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ECOWAS Imposes Sanctions on Guinea Junta Over Coups

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ECOWAS Bans Junta-Investors King

West African leaders have decided to impose travel bans and freeze the financial assets of members of Guinea’s ruling junta and their families after a coup more than a week ago.

The decisions were announced Thursday after an Extraordinary Summit on Guinea in Ghana’s capital, Accra. Mediators with the regional group had traveled to Guinea to meet with junta leaders and check on the condition of deposed President Alpha Conde.

ECOWAS president Jean Claude Brou said the West African leaders have also insisted that there should be no “need for very long transition for the country to return to democratic order.”

The targeted sanctions come after Guinea’s coup leaders set a number of conditions for releasing Conde, according to the foreign minister of Ghana.

ECOWAS had already warned it will impose penalties on the junta in Guinea unless it immediately releases Conde, who has been held at an undisclosed location since being detained during the Sept. 5 coup in Conakry.

“We are coming to address a burning issue in the region,” said Ghana’s President Nana Addo Dankwa Akufo-Addo, the current chair of the regional bloc, ahead of the summit. He was joined by presidents or high-ranking officials from eight of the other 15 ECOWAS countries.

Members of the ECOWAS delegation that visited Conakry after the coup presented their reports at Thursday’s meeting, said Ghanaian Foreign Minister Shirley Ayorkor Botchway. The junta has set a number of conditions for complying with the demands of regional mediators, she said but declined to disclose what they are.

The delegation has spoken with Conde’s doctor “who ascertained that indeed physically, he’s very well,” she said. However, she said, the ex-president is still coming to terms with the fact that his government has been toppled after more than a decade in power.

“For anybody who has gone through such a traumatic experience like he did, mentally, it’s not the best, not to say that mentally we found anything wrong, but he was quite shocked; he’s still in a state of shock,” she added.

Meanwhile, in Conakry, junta leaders were also set to meet with mining company representatives on the third day of a special summit to chart Guinea’s political future. Junta leader Col. Mamady Doumbouya has sought to reassure the country’s most vital economic sector that the political changes will not impact existing mining projects in the country, which has the world’s largest reserves of bauxite.

Guinea’s coup leaders have yet to make public their proposed timeframe for handing over power to a civilian transitional government, nor have they outlined how quickly new elections can be organized.

Conde had sparked violent street demonstrations last year after he pushed for a constitutional referendum that he used to justify running for a third term, saying term limits no longer applied to him. He ultimately won another five years in office last October, only to be toppled by the coup 10 months later.

At the time he came to power in 2010, he was Guinea’s first democratically elected leader since independence from France in 1958.

The regional bloc also planned to tackle concerns over whether a second member state, Mali, is making enough progress toward a return to democracy more than a year after a military takeover there.

In Mali, the ruling junta led by Col. Assimi Goita has committed to holding new elections by February 2022, though mediators who recently visited have expressed concern about whether that deadline now can be met.

Goita overthrew Mali’s president in August 2020 and then agreed to a civilian transitional government and an 18-month timeframe for holding a vote. However, only nine months after the first coup he effectively staged a second one, firing the civilian interim leaders and ultimately naming himself as president of the transition.

ECOWAS has not reinstated Mali’s membership in the bloc, marking the first time since 2012 that two of the 15 member states are suspended concurrently.

ECOWAS President Brou said there was the need to revisit the organization’s 2001 protocol on good governance “because a lot of things have changed or improved.”

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