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Buhari Hunts for Stolen Billions @ NNPC after Futile Attempt as Military Ruler

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As oil minister during military rule in the 1970s, Muhammadu Buhari oversaw the birth of the Nigerian National Petroleum Corporation (NNPC).

Bloomberg reported that, now, as democratically elected president, he intends to break up the opaque bureaucracy, which manages the oil assets of Africa’s biggest crude producer, to ensure taxpayers get their fair share. History isn’t on his side.

“No Nigerian leader, including Buhari himself from the 1980s, has managed to sanitize the oil sector,” said Philippe de Pontet, head of the Africa practice at the Eurasia Group in New York.

“Buhari’s challenge is not only to depoliticize NNPC but to disentangle its vested interests and its rogue commercial operations, which won’t be easy.”

According to Bloomberg, Buhari made cleaning up the 24,000-employee colossus — the largest government-owned company — a key plank in the election campaign that toppled President Goodluck Jonathan in March.

He plans to split the NNPC in two, creating a regulator and a vehicle for investments, according to Femi Adesina, a presidential spokesman.

So far the president has fired the board and management of the company and replaced its Jonathan-appointed chief with Emmanuel Ibe Kachikwu, who was executive vice-chariman of Exxon Mobil Africa.

He has also ordered a review of oil-swap contracts and barred 113 vessels from loading oil and gas — about 250,000 barrels of Nigerian crude, about 10 percent of the country’s daily output, are stolen daily, Buhari has said.

‘Mind-Boggling’
“A lot of damage has been done to the integrity of Nigeria with individuals and institutions already compromised,” Buhari told an audience in Washington last month. “The amount involved is mind-boggling.”

Nigeria’s transparency watchdog says the NNPC has diverted more than $30 billion in oil revenue from the state since 2009. That exceeds the annual economic output of more than half the nations in Africa and roughly equals the federal budget.

The situation is increasingly desperate because, with a halving in Brent crude prices in the past year, government coffers are “virually empty,” Buhari said after less than a month in office; about two-thirds of the country’s almost 180 million people live on less than a dollar a day.

Set up to defend Nigeria’s interests with foreign majors, the company controls an aggregate 55 percent share in joint ventures with the likes of Royal Dutch Shell Plc, Exxon Mobil Corp. and Chevron Corp. Crude exports account for about two-thirds of government revenue.

Four Towers
Bloomberg  said that NNPC’s four-tower headquarters building in the capital dominates Abuja’s skyline. It’s the landlord to the petroleum ministry, whose minister chairs the organization. Group managing director Kachikwu is its sixth head in five years.

For all its importance to Nigeria, the NNPC is largely inscrutable. It had the worst disclosure record of 44 energy companies analyzed in a 2011 report by anti-corruption nonprofit organizations Transparency International and the Revenue Watch Institute.

Ohi Alegbe, a spokesman for the NNPC, declined to comment, citing the pending reorganization, when contacted by phone Thursday. The NNPC consistently denies any wrongdoing.

Allegations of missing funds go back as far as when Buhari was oil minister. The Lagos-based Punch newspaper reported in 1978, a year after the NNPC took its current name, that the company failed to remit the equivalent of about $3.5 billion it owed the Treasury.

Military Investigations
In the 1990s, a military-sanctioned investigation found $12 billion in oil revenue was unaccounted for under the government of army ruler Ibrahim Babangida.

After the return to democratic rule in 1999, Nigeria signed up in 2005 to the Extractive Industries Transparency Initiative, a global effort in which governments committed to disclosing all extractive industry payments. Since then, the Nigeria Extractive Industries Transparency Initiative, or NEITI, has said at least $23.2 billion due wasn’t deposited into the national accounts from 2009 to 2011.

More recently, then-central bank Governor Lamido Sanusi alleged in a memo to Jonathan that the corporation retained as much as $50 billion in oil revenue that was due the government.

Sanusi’s claims led Jonathan to commission a PricewaterhouseCooper LLP audit for the period from January 2012 to July 2013. PwC found the NNPC had a “blank check” to spend without control and had accounting and monitoring systems filled with “significant” discrepancies.

The NNPC should refund as much as $4.29 billion to the government, the report said. Then-Petroleum Minister Diezani Alison-Madueke said on April 22 that the company had started to refund the minimum $1.48 billion the audit recommended.

Opaque Debts
Then, there’s the money it owes commercial partners.

The NNPC’s debts to its eight joint ventures have “ballooned over the years,” according to a ruling All Progressives Congress policy report submitted to Buhari after the election and obtained by Bloomberg.

In 2012, the state company paid $6.9 billion of the $10.4 billion it owed. The difference was covered by loans from international oil companies including Shell, Exxon Mobil and Total. The companies declined to comment.

Critics say any shakeup would have to resolve NNPC’s dual role as regulator and oil company.

Corruption would vanish if Buhari refocused the NNPC as just a regulator “so people like us can get on with the job,” said Kola Karim, head of a Nigerian oil explorer.

Producing about 60,000 barrels a day, Karim’s Shoreline Group, founded in 1997, could be pumping more than double that amount if the NNPC wasn’t a partner in his business and with civil servants slowing investment decisions, he said.

Senior officials in Buhari’s party are calling for even more drastic measures.

“We should replace the NNPC,” Nasir el-Rufai, the governor of northern Kaduna state, said in Abuja this month. Nigeria needs to “tackle the monster that the NNPC has become.”


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Brands Jostle for CVA 2024 as Consumers Vote

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Ongoing voting for brands on the Consumers Value Awards portals, consumers expressed brand satisfaction with their votes.

Over 40 categories of brands are listed based on consumers’ nominations on the Consumers Value Awards portal for voting as Value-for-Money brands in the 2024 edition of the award.

Consumers cast votes for brands to express satisfaction among various brands.

Presenting the one-month result, Akonte Ekine, CEO of BrandXchange, said the initiative is transparent and objective. It’s the consumer position on brands as nomination and voting drive the platform.

According to him, in the Telecommunications category (MNOs), MTN leads with 51.1% of the votes recorded in the first month, Spectranet has 47.6% of the votes in the Internet Service Provider segment, and MTN has 69.2% votes for ISP under the MNOs.

In the ongoing 3rd edition voting, two new categories of sanitary pad and Ice Cream are experiencing consumers’ attention as Always Sanitary Pad leads the segment with 63.6%, Just Delight Ice Cream at 36.2% and Viva Detergent at 41.7%.

Other leaders on the voting platform of Consumers Value Awards based on consumer preferences in the first month under home appliances (Television, Refrigerator, Air conditioner and washing machine) are Samsung 40%, Haiier Termocool 40%, Lontor 40% and Haier Termocool 42.9% respectively.

Trophy leads Alcohol Beverage with 50% of the votes, and Pepsi takes 62.5% of ⁠Carbonated Drinks. It is a tie among consumers on the cooking oil and regular Toot paste as Kings Oil and Power Oil achieved the same vote of 50%, Colgate Toothpaste and Close Up Toothpaste also tied with 26.7% votes each in the categories while Dabur Toothpaste leads in the herbal toothpaste category with 55.6%.

Lafarge Cement leads with 62.5% in the Cement, Dangote Sugar has 55% of the votes in Sugar, Leadway Insurance has 57.1%, Eva leads the Table water category with 38.5%

Other leaders in various segments based on consumer votes on the Consumers Value awards platforms are Maltina 40%, Dettol 37.5%, Peak Milk 80%, Golden Penny Spaghetti 80%, Indomie Noodle 85.7%, Checkers 90%, GTB 66.7%, OPay 62.5%, Morning Fresh 62.5%, and Gala Sausage Roll 94.4%.

Also, knorr Cube 57.1%, Lipton Tea Bag 83.3%, Vaseline 71.4% and Golden Morn lead their sectors, Milo and Bournvita tied with 50% of the vote each as leaders alongside MTN and Cadbury tying with 40% votes under Consumer-Friendly brands.

Vitafoam 44.4%, Guinness Stout 83.3%, Mobil Engine oil 100% (International Engine Oil Brand), Oleum Oil 100% (Made in Nigeria Brand), Hypo and Harpic 50%, Fearless 33.3%, Abidec 80%, Reload Kids 60% Reload Adult 66.6%, and Bet 9ja 50%

The voting will close on 30th June 2024.

 


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Sterling One Foundation Partners UNIDO, Others to Launch ESG Series

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The Sterling One Foundation, a non-profit organization dedicated to sustainable development and empowering professionals to drive social impact across Africa, has partnered with Price Waterhouse Coopers Nigeria, UNIDO-Investment Technology Promotion Office, Nigeria, Lagos Business School Sustainability Center, Sterling Bank, NGX Group, the Nigeria Employers Consultative Association and the Lagos Chamber of Commerce & Industry to unveil  the first edition of its Environmental, Social, and Governance (ESG) Series.

The partnership aims to support professionals in understanding, implementing, and reporting sustainability progress, in alignment with global standards.

According to a signed statement by the Foundation, the ESG Series was birthed following a workshop held at the 2023 edition of the Africa Social Impact Summit (ASIS) where it was discovered that there was a significant knowledge gap on the subject within the African development ecosystem as well as the private sector.

They commended all the excellent partners who have made the series possible noting that their commitment will strengthen professionals’ competencies in integrating ESG principles into organizational frameworks, and drive positive change while advancing the adoption of ESG principles and increased investment into the economy from local and global investors.

Over the years, Environmental, Social, and Governance (ESG) considerations have evolved from optional to essential for organizations, making the significance of incorporating ESG principles into business plans to enhance sustainability and corporate responsibility, for organizations an increased priority. Statistics indicate that ESG-focused institutional investments are projected to reach $33.9 trillion by 2026.

Through this series, the Foundation said it aims to demystify ESG concepts among the private, public, and development sectors in Nigeria and Africa while highlighting their tangible business benefits, to equip professionals with the knowledge and tools necessary for successful ESG integration in their organizations.

The one-day virtual event gives insight through in-depth sessions featuring thought leaders from private sector impact makers, development partners, international non-governmental organizations, and government agencies.


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Uche Ikejimba Secures Sixth Consecutive AMVCA Nomination With Best Unscripted M-Net Original Nod

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Uche Ikejimba, Award-winning producer, has secured her sixth consecutive Africa Magic Viewers Choice Award nod. The organizers made the nomination announcements on Sunday, March 24, 2024, across all Africa Magic channels. It saw Ikejimba clinch a nom in the ‘Best Unscripted M-Net Original’ category for What Will People Say.

In 2022, Ikejimba received two nominations for ‘Best Africa Magic Original Drama Series’ for Unmarried and Dilemma. She secured two other nominations in 2023 in ‘Best Unscripted Original’ for Come Play Naija and ‘Best Original Drama Series’ category for Unmarried.

Speaking about her latest nomination, Ikejimba said, “I’m very humbled and beyond grateful to be receiving my sixth consecutive AMVCA nomination. Anyone who knows me will acknowledge that I often put my blood, sweat and tears into the shows I produce. After Truth won its nomination in 2020, I’ve been holding on patiently for a second win and I hope this is the year. So, here’s my hearty congratulations to my fellow nominees and a huge thank you to the AMVCAs organisers for honoring me.”

Ikejimba is one of Africa’s most-sought after serial producers, and has earned herself the title, ‘Reality TV Series Savant’, with work on 100% Naija, Vodafone Icons, Naija Sings, Calabar Festival Diaries, Big Brother Reunion, Shoot Your Shot, What Will People Say, Come Play Naija, and the more recently airing Husband Material and Overall Best.

She came into the world of Television production as an associate producer on Moments with Mo, the first and only syndicated daily talk show in Africa at the time. However, she has also proven that her talents go beyond producing reality shows or unscripted serials, and she can run with the best in producing original drama series.

In 2016, she landed her first commissioned project with Africa Magic titled Hustle. The series about a young man’s first time in Lagos became an instant hit and ran for three seasons, with 360 episodes. She created, wrote and produced Blink’s original 26-episode drama series titled Truth. The show won an AMVCA for ‘Best TV Series’ in 2020. That same year, she produced and wrote the hit series, Unmarried. The show ran for four seasons and ended on a high.

Off the success of these drama series, she produced Africa Magic’s Dilemma, a 260-episode telenovela. She produced Shallow and the recent Africa Magic fanfavourite original, Manfriend. The show follows the women of the King family and their dysfunctional relationship with the men in their lives. She also produced Showmax’s first original law limited series, AGU in 2023. Her first feature length film, Phantom is a co-production and is also nominated for several awards such as the Toronto International Nollywood Film Festival (TINFF).

Uche Ikejimba has beaten many odds to become a producer and remained steadfast in her commitment to producing the best shows Africa has ever seen. As the continent prepares for the milestone 10th AMVCA, the Reality TV Series Savant and producer extraordinaire is content to celebrate her sixth consecutive nomination. Find out if she clinches her second AMVCA win when the awards air live across all Africa Magic channels on May 11, 2024.


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