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Kachikwu protests award of $25b contracts by NNPC

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  • As Akeredolu seeks deep Seaport in Ondo

A crisis of confidence has broken out between Minister of State for Petroleum Resources Dr. Emmanuel Ibe Kachikwu and Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Dr. Maikanti Baru.

The minister has accused the GMD of awarding $25billion contracts without consulting either his office or the corporation’s board.

He blamed the GMD for alleged insubordination, lack of adherence to due process and running a “bravado management style”.

Kachikwu said he was being sidelined by the GMD and other heads of parastatals in major decisions and appointments.

He urged President Muhammadu Buhari to call the GMD to order to ensure due process and transparency in the oil sector.

Kachikwu also presented five prayers to the President to save the oil sector from collapse.

He said he was always being blocked from seeing the President.

Kachikwu,  in an August 30 memo to Buhari, said he was neither anti-North nor corrupt as being alleged.

He said he was disturbed that $25billion contracts were awarded by Baru without his input and that of the Board.

The memo said: “The legal and procedural requirement is that all contracts above $20million would need to be reviewed and approved by the Board of the NNPC. Mr. President, in over one year of Dr. Baru’s tenure, no contract has been run through the Board. This is despite my diplomatic encouragement to Dr. Baru to do so to avoid wrongfully painting you as a President who does not allow due process to thrive in the NNPC.

“Given the history of malpractices and the public perception of the NNPC as having a history of non-transparency, the NNPC Tenders Board (NTB) cannot be the final clearance authority for contracts it enters into.

“The NTB, which is a collection of level NNPC executives and COOs, with the GMD as chairman cannot continue to be the final approval authority for multimillion dollar contracts and transactions involving NNPC to the exclusion of the Board.

Board members have singularly and collectively raised these issues to no avail. “The following major contracts were never reviewed by or discussed with me or the Board of NNPC:

The Crude Term Contracts – value at over $10b

The DSDP contracts – value over $5b

The AKK pipeline contract – value approximately $3b

Various financing allocation funding contracts with the NOCs – value over $3bn

Various NPDC production service contracts – value at over $3bn – $4bn

”There are many more Your Excellency. In most of these activities, the explanation of the GMD is that you are the minister of petroleum and your approvals were obtained. However, the correct governance should be that the Minister of State and the Board review the transaction and give their concurrence prior to presentation to you.

“As in many cases of things that happen in NNPC these days, I learn of transactions only through publications in the media. The question is why is it that other parastatals which I supervise as Minister of State or Chair of their Boards are able to go through these contractual and mandatory governance processes and yet NNPC is exempt from these?

“I know that this bravado management style runs contrary to the cleansing operations you engaged me to carry out at the inception of your administration. This is also not in consonance with your own renowned standards of integrity.”

Kachikwu also said he was being disrespected by the GMD

He added: I would have wanted to come personally after receiving you at the airport to felicitate with you and discuss matters herein contained, however, I have been unable to secure on appointment to see you despite very many attempts.

“Mr. President, yesterday like many other Nigerians, I resumed work confronted by many publications of massive changes within the NNPC. Like the previous reorganisations and reposting done since Dr. Baru resumed as GMD. I was never given the opportunity before the announcements to discuss these appointments. This is so despite being minister of State Petroleum and Chairman NNPC Board.

”The Board of NNPC which you appointed and, which has met every month since its inauguration and, which by the statutes of NNPC is meant to review these planned appointments and postings, was never briefed. Members of the Board learnt of these appointments from the pages of social media and the press release of NNPC.

”I only need to add that previous attempts to rush through these appointments through non-governance backdoor and present same to the Acting President were met with a request that this be discussed with me. This was never done.

“Indeed in anticipation of vacancies that would arise from retiring senior executives of NNPC, I wrote the GMD a letter requesting that we both have prior review of the proposed appointments. This was to enable me present same to the Board

In the meantime, after another closed-door meeting with the President, Ondo State Governor Rotimi Akeredolu (SAN) told State House correspondents that the state needed the Federal Government to take advantage of the natural resources in the state.

He said: “We are asking that the country takes advantage of the natural resources in Ondo State. We have a seaport, which is very germane to our export activities, in particular, and our mineral deposits, which we have in large number. We need to have a deep sea-manning port. Ondo State is well suited for it.

“So, we impressed this on Mr. President on what we believe will be a lasting legacy, if we are able to accomplish it in his own time.”

On the volume of mineral resources for export warranting a deep seaport, Akeredolu said: “No. You just look at the volume of natural resources we are exporting through any port in Nigeria.

“The total volume, which is still not so high; the moment it gets high, we will need a deep seaport where we will even have a modern ship berth. We do not have anywhere in this country today where big ships can berth, not in Lagos or Calabar.

“That is why what you see is that so many of the ships will berth in the high sea while the smaller ones will be used to take the goods there or bring the goods from the ship. That is why we need a deep seaport where the biggest ships in the world can berth, and that is in Ondo State.”

The Minister of Mines and Steel Dr Kayode Fayemi said the deep seaport was about the future.

On non-oil revenue, he said: “We are emphasising solid minerals development as a vehicle for diversification, an agenda of Mr. President. So, we look at what role that will play in the future and the non-oil sector.

“Now, our oil wealth is going down; at the same time, we are talking that other countries are talking about manufacturing cars that will not use fuel in the next two decades. What will these cars be using? If you look at the Tata vehicles out there (in India), there are all battery-powered. Where will the battery power come from? It will come from lead, lithium, cobalt. These are things we have in abundance in Nigeria.

“So, although we may lose out on oil, it doesn’t mean it is a zero sum gain. We may be gaining other things which Mr. President is keen about.

“The President asked for an update on Ajaokuta and the Aluminium Smelting Company at Ikot Abasi. I came to brief Mr. President on the development to ensure these companies are back to life.

“I told him about the efforts the Vice President has been making at ensuring that we have a definitive solution to the sale of Aluminium Smelting Company at Ikot Abasi and that we also move forward in the resolution and agreement reached on Ajaokuta Steel so that we get ready for the second concessioning.

“We have appointed an adviser; we have appointed a new leadership there, because the term of the last leadership has expired. Those were the things we updated Mr. President on.

“Mineral resources have contributed significantly to the gross domestic product (GDP) and revenue. This year alone, we have exceeded the target given to us. If you look at the Bureau of Statistics’ report, you will see that the two sectors that have contributed immensely to the GDP are agriculture and solid minerals.”

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APAPA CUSTOMS: Olomu Records N1.875trn Within 10 Months, Delivers ₦264,45Bn In October 

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APAPA CUSTOMS: Olomu Records N1.875trn Within 9 Months, Delivers ₦264,45Bn In October 

…Says he cancelled discretional pragmatism, as directed by the CGC, Adewale Adeniyi 

The Nigeria Customs Service (NCS), Apapa Port Command, between January and October 2024 achieved a stupendous revenue profile of N1.875 trillion.

The Customs Area Controller, Babatunde Olomu who disclosed the historical figures also stated that out of the ₦1,875,362,369,214.4, the Command posted a total collection of ₦264,455,587,792.56 billion, solely from October 2024.

It is gratifying to note that not only has October gross-in become the Command’s highest monthly collection, but it is also symbolic that until Olomu assumed office, the Command’s revenue generation was nothing, extraordinary.

It was, therefore, not surprising, that Comptroller Babatunde Olomu last weekend, bagged an award of excellence, for his meticulous approach and stupendous revenue-generating style.

The Award which was championed by a media concern was in collaboration with the Abuja High Command.

Speaking on Monday, Comptroller Olomu reminded all port users that the Apapa Customs Command under his watch does not exercise discretionary pragmatism, as he stressed that every consignment passing through the NCS, Apapa Port Command, is being subjected to thorough examination, involving both scanners and physical means when necessary.

Subsequently, he handed over six containers which ran foul of false declaration, as their contents consisted of fake pharmaceuticals and other controlled products, to the National Agency for Food Drugs Administration and Control (NAFDAC) as well as to the National Drug Law Enforcement Agency (NDLEA).

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Providing a breakdown, Comptroller Olomu also expressed optimism that the Apapa Customs Command would meet and surpass its annual revenue target of ₦2.2 trillion before the year winds down,”.

“From January-October 2024, we generated a total of ₦1,875,362,369,214.4 trillion, higher than the ₦931,123,998,213.88 billion generated in the corresponding period in the year 2023, showing a 101 per cent increase over last year’s revenue figure.

“It is instructive to state that our October 2024 collection is ₦264,455,587,792.56 billion. This is the highest monthly collection in the history of this command.

“Furthermore, in line with the Federal Government agenda of Ease of Doing Business, the Command operates on Saturdays and Sundays to ensure that importers take delivery of their cargoes devoid of any delay”

“Therefore, we are hopeful of meeting and even surpassing our target of ₦2.2 trillion as the year winds down,” Comptroller Olomu said, highlighting that the unprecedented revenue figures were achieved, despite the observable significant decline in the nation’s volume of trade.

He pointed out that the Command blocked revenue leakages, while purposefully working at attaining optimal revenue generation, monthly.

“Furthermore, in line with the Federal Government agenda of Ease of Doing Business, the Command operates on Saturdays and Sundays to ensure that importers take delivery of their cargoes devoid of any delay”, stated the CAC, as he beamed his attention on the sphere of trade facilitation, where he mentioned that the Command was already working to migrate from the old system to a new system while maximizing the benefits of what it has presently.

Comptroller Babatunde Olomu, the CAC Apapa Port Customs Command

Olomu said the gesture was in line with the drive by the NCS Management towards a paperless, modern system.

He posted that the Apapa Port Command has keyed into trade facilitation tools like AEO and Advanced Ruling to ensure seamless movement of both import and export cargoes.

The CAC, Comptroller Babatunde Olomu hands over the documents of the seized contrabands to officials of the National Agency for Food Drug Administration and Control NAFDAC and the National Drug Law Enforcement Agency NDLEA during the Monday media briefing.

It was in adherence to the instruction of the Comptroller-General of Customs (CGC) Adewale Adeniyi.

“This handover further underscores the robust inter-agency collaboration between the NCS and sister government agencies in the port.
“It further demonstrates our ability to prevent illicit importation from entering the Nigerian market through the port.

“As a Service, we owe Nigerians the duty of preventing the import and export of cargo that could undermine their well-being and security.

“These medical importations have expired, while others are not evaluated by NAFDAC and could cause damages to Nigerians if consumed.

“The content of these containers contravened the provisions of Schedule 3 of the Common External Tariff (CET) and Section 233 of the NCS Act 2023. Some of the contents are unapproved dosages of tramadol, cough syrup with codeine, injections and more”, Olomu said

“We also have an intra-government working system where all government agencies work together as a team without compromising the mandates of our respective agencies.

“Equally, we have a wider customs-stakeholder forum where only issues about customs alone are looked into and addressed as and when due.

“This is a testament to the very regular interactions we have established as directed by the CGC”

“It is noteworthy to state that just last week, the command facilitated the first shipment of cargo to Kenya under the AfCFTA regime,” he added.

Speaking on its anti-smuggling efforts, Olomu said the Command made well over 36 seizures of various items ranging from used clothing, frozen poultry products, tramadol, unregistered pharmaceutical products and other controlled substances valued at over ₦1.5 billion.

He stressed that stakeholder’s compliance, under his watch, has increased “and this is a testament to the very regular interactions we have established as directed by the CGC.

“I want to specially thank all sister government agencies and our strategic private sector partners for being part of the success we are celebrating today. Their contributions have been invaluable and the impacts are evident in our scorecard.

“I hereby invite you to see the seizures as we formally hand over to NAFDAC and NDLEA. These seizures should serve as a deterrent to those involved in any form of illegality and an encouragement for lawful and compliant traders.”

“We shall continue to detect false declarations, concealment, undervaluation and other unethical practices aimed at evading duties, short-changing the government and exposing citizens to unsafe products,” he assured.

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CGC Adeniyi Reaffirms Commitment To Strengthening Partnership Between Customs, NAGAFF

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CGC Adeniyi Reaffirms Commitment To Strengthening Partnership Between Customs, NAGAFF

…Lauds NAGAFF’s resilience and dedication,  to exploring areas of mutual interest

The Comptroller-General of Customs (CGC), Adewale Adeniyi has reaffirmed his commitment to strengthening the partnership between the Nigeria Customs Service NCS and the National Association of Government Approved Freight Forwarders NAGAFF. 

The CGC stated this while receiving a visiting delegation of the association, expressing deep enthusiasm and appreciation for their visit, as well as the body’s commitment to enhancing the industry to overcome its challenges.

Addressing the delegation on Tuesday, 29 October 2024, at the Nigeria Customs Service (NCS) Headquarters in Abuja, the Comptroller General praised NAGAFF’s resilience and dedication, particularly to exploring areas of mutual interest, identifying potential opportunities for collaboration, and emphasising the importance of their ongoing engagements in fostering effective partnerships.

“These are all possibilities, and we will be willing to work with you”, Adeniyi told the delegation led by the association’s National President, High Chief Tochukwu Ezisi.

He provided the body with an update on the Nigeria Customs Service’s transformative initiatives towards enhancing trade facilitation, border security, and technology integration.

 He also highlighted several projects currently being pursued to improve operational efficiency.

The Comptroller-General confirmed his intention to attend NAGAFF’s upcoming Silver Jubilee Anniversary to recognise a significant role as a key stakeholder in Customs operations and policy implementation.

Earlier, NAGAFF’s National President, Chief Tochukwu Ezisi, congratulated CGC Adeniyi and his team for their contributions to national economic growth and security. 

 “Your remarkable achievements since assuming office cannot be overstated”, Chief Esizi said, assuring the CGC of NAGAFF’s active participation in the forthcoming CGC Conference, including unveiling the association’s newly acquired N500 million Secretariat.

Regarding the upcoming Silver Jubilee Anniversary, Ezisi highlighted NAGAFF’s longstanding partnership with the Nigeria Customs Service, which has spanned 25 years and formally invited CGC Adeniyi to attend the event.

The NAGAFF delegation included Chief Afam Chukwuma, Deputy National President (Seaport) and Chairman of the Organising Committee for the Silver Jubilee; Igwe Kingsley, National Secretary; Princess Chi Eze, National Vice President (Western Port); and Melody Obehi, National Treasurer, among others.

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Customs Boosts AfCFTA, Facilitates First Shipment from Nigeria to Kenya

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Customs Boosts AfCFTA, Facilitates First Shipment from Nigeria to Kenya

…Olutayo commends Customs for truly working for genuine success of Nigeria’s participation 

The Nigeria Customs Service (NCS) gave the African Continental Free Trade Area Agreement (AfCFTA) meaning on Wednesday as it facilitated Nigeria’s first shipment to Kenya. Lucky Fibres, a subsidiary of the Tolaram Group, emerged as one of the first companies to ship goods to Kenya. 

Olusegun Olutayo, Senior Trade Expert and Lead of Trade Enablement at the Nigeria AfCFTA Coordination Office indicated this Wednesday, 30 October 2024, during a visit to the Apapa Area Command, towards ensuring proper documentation and verification of the shipment, noting that the shipment from Nigeria to Kenya, specifically to the port of Mombasa, demonstrates the collaborative spirit of AfCFTA.

“It is not that we are doing it alone; I have already sent a message to the Secretariat in Ghana that there will be a shipment under AfCFTA to Kenya. I have also communicated with the AfCFTA implementation committee in Kenya. So this is the spirit we are building to ensure that we increase intra-African trade,” Olutayo noted.

“The Nigeria Customs Service has been fantastic; they are ready to facilitate trade. Once they hear that there is an issue, particularly around AfCFTA, you will see everybody ready to support”

He emphasised the critical role of the service as the Designated Competent Authority (DCA) under AfCFTA, leveraging its expertise to ensure seamless trade.

“The Nigeria Customs Service has been fantastic; they are ready to facilitate trade. Once they hear that there is an issue, particularly around AfCFTA, you will see everybody ready to support and facilitate it, which is the essence of true trade facilitation.”

Assistant Comptroller Olusola Salako, the releasing officer for Lilypond Export Command at Apapa Area Command, highlighted the Nigeria Customs Service’s efforts to leverage technology to ensure that AfCFTA is successful in Africa.

“The service has aligned with the mandates of the World Customs Organisation to prioritise the importance of trade. Gone are the days when we experienced issues. Today, we have a Unified Customs Management System (UCMS). With trade becoming more global, we went back to the drawing board and improved our technology, which will help us facilitate trade.

“The service is already in top gear; officers have been trained, and we have dedicated officers, senior officers, and releasing officers for this particular export procedure—not limited to AfCFTA alone—and we also have dedicated ports,” Salako concluded.

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