Archive | Nigerian News

Reverend arraigned in UK for conducting fake marriages


Two Church of England vicars conducted “hundreds” of sham marriages to help illegal immigrants stay in Britain, a court heard on Wednesday.

The Reverend Elwon John, 44, and Reverend Brian Shipsides, 55, performed the sham wedding ceremonies at All Saints Church in Forest Gate, east London, jurors were told.

Once wed, there were a “strikingly high proportion” who then made applications to the Home Office for the right to remain in the country.

In some cases, EU nationals were even flown into Britain just so the marriages could take place before being flown straight out again, Inner London crown court heard.

According to the prosecution, 31-year-old “fixer” Amdudalat Ladipo – herself an illegal immigrant – arranged the weddings between mainly Nigerian and EU nationals.

It was not until officers from the Metropolitan Police and UK Border Agency caught wind of the scam that the trio were finally rumbled on July 31, 2010.

All three are now charged with conspiring to facilitate unlawful immigration. Shipsides has already pleaded guilty. Ladipo and John deny the charges.

David Walbank, prosecuting, said, “This case involves a massive and systematic immigration fraud.

“At the centre of this fraud is one particular parish church in the east of London, All Saints Church in Forest Gate.

“The Crown’s case is that there took place in that church over a two-and-a-half year period a very large number indeed of sham marriages entered in to for the purpose of immigration.

“Most of the so-called couples participated in these marriage ceremonies were not actually couples at all.

“They were married in that church not because they wished to spend their lives together and wanted the blessing of the church, most of the persons married there for a very different reason.

‘Their ultimate purpose was to obtain enhanced rights to enter and live in the United Kingdom.” Mr. Walbank told jurors the majority of the marriages which took place were between Nigerians and nationals from the European Economic Area, mainly from Portugal and the Netherlands.

He added, “The fraud, the Crown suggest, wasn’t confined to one or two, or even a couple of dozen of ceremonies. We are concerned in this case with hundreds of sham marriages.

“On some occasions, EEA nationals were flown into the UK specially for marriages to take place and then flown back out again.”

 

Posted in Crime, Nigerian News0 Comments

Credit card fraud: Nigerian jailed for 17 years in US


A 40-year-old Nigerian, Adekunle Adetiloye, 40, has been sentenced to 17 years and 10 months imprisonment in North Dakota, United States for credit card fraud.

US Attorney Timothy Purdon said, “The sentence imposed on Tuesday should send a strong message to those who would seek to scam the citizens and businesses of North Dakota and the United States.

“We take the growing problem of foreign financial fraud seriously here and seeking justice for the victims of such crimes is a priority for our office.”

On February 16, 2011, Adetiloye pleaded guilty to participating in a scheme to defraud both financial institutions and individuals of money.

Adetiloye was living in Toronto, Canada before January 2005 until he was extradited to the US in May 2010. During that time, Adetiloye funded a lavish lifestyle by conducting, with others, a massive fraud scheme accomplished by executing tens of thousands of fraudulent acts against individuals, financial institutions, commercial data providers, merchants, commercial mailbox companies and state agencies.

Adetiloye’s scheme compromised the personal and private information of approximately 38,000 American citizens. The scheme involved tens of thousands of acts of illegal conduct throughout the US, as well as in Canada and England.

Adetiloye and his co-conspirators fraudulently obtained the personal identification information from commercial data providers, such as LexisNexis and ChoicePoint, and with that information assumed the identities of those unsuspecting people to open credit card and other bank accounts at US bank and 20 other banks across the US.

He used well over 100 different mail box addresses throughout the United States as well as approximately 100 different phone numbers with area codes representing all parts of the US.

Posted in Nigerian News0 Comments

Foreign airlines charge premium passengers 23% more on Nigerian routes –Investigation


The preference for premium class seats by a lot of air travellers and the inability of the government to regulate the fares of foreign airlines means that passengers on Nigerian routes pay about 23 per cent more than travellers from other parts of the world, OYETUNJI ABIOYE writes.

Passengers on Nigerian routes pay about 23 per cent more on tickets for first class and business class seats than their counterparts in most parts of the world, investigation by our correspondent has revealed.

According to findings, there is a great disparity between the dollar per mile rate that foreign airlines charge premium passengers (first and business classes) on the Nigerian routes and most other international routes.

An analysis of some fares confirms that most of the airlines’ premium fares are about 23 per cent higher in Nigeria than most other global routes with similar flight time, mileage or distances.

A comparative analysis of some first and business class fares shows that Nigerians pay more on most routes.

For instance, a first class return ticket on the Lagos-Dubai route costs $4,695.5 on Emirates Airlines, while the Dubai-Johannesburg with almost the same mileage costs just $3,512. This shows that first class passengers on the Nigerian route pay about 33.5 per cent more.

According to data obtained from an airline global distribution company, the dollar per mile that the airline charges on the Lagos-Dubai route for first class passengers is $1.28, while it charges $0.89 on the Lagos-Johannesburg route.

Similarly, business class passengers pay 23.8 per cent more on the Lagos-Dubai route than their counterparts on the Dubai-Johannesburg route, according to the data.

Also, an average business class fare on the Lagos-Atlanta route, which costs $5,874 on Delta Airlines, is about 32.1 per cent higher than that of the Atlanta-Bombay route, which goes for $3,689.9 on the same carrier.

According to the GDS data, Delta charges its first class passengers $1.01 per mile on the Lagos-Atlanta route and $0.43 per mile on the Atlanta-Bombay route.

The data also shows that first class passengers are charged $1.41 per mile on the Lagos-Atlanta route, while their counterparts on the Atlanta-Bombay route pay $0.97.

The statistics also show that AirFrance charges its first class passengers on the Lagos-Paris route of 2919 miles about $8,984. Passengers pay $3.08 per mile.

However, first class passengers on the Paris-Bombay route with 4,349 miles pay $8,739, and are charged $2.0 per mile.

An aviation expert and airline economist, Mr. Gbenga Olowo, who confirmed this, linked the high fares on the Nigerian route to demand and psychological factors.

He said Nigerians’ penchant for travelling in first and business class cabins might have contributed significantly to the disparity in fares.

Olowo, who is also the President/Chief Executive Officer, Sabre Network, West Africa, a United States-based airline Global Distribution System, said “Empirical regular tariff data to different geographical zones show that demand and psychological factors do largely affect tariff fixing in different markets.

“In market economies, especially aviation, tariffs are not regulated as they are derived from so many factors: demand factors, psychological factors, mark up factors, antitrust competition rules, etc.

“Any profit-driven organisation, such as our foreign airlines, will attempt to maximise gains in any market for that matter. This is slightly evident in the dollar per mile figure for first and business classes en route Lagos and Europe, but not so in regular economy.

“However, the word, ‘discrimination,’ may not apply as airlines’ revenue and yield management technology have improved on passengers’ right to such extent that you can name your price but conditions do apply. Tariff without restrictions does attract higher fares.”

Olowo said the only way out was for Nigerian operators to compete effectively with the foreign carriers.

“If Nigeria seeks lower tariff than it is currently getting, then the indigenous operators must compete effectively. It is, however, unfortunate that Nigerian airlines are all individually very weak and highly indebted. Competition remains the key for improved services and economic tariffs,” he added.

The Coordinator, Akwaaba Travel Market, Mr. Ikechi Uko, said the airlines were only taking advantage of the large size of Nigeria’s market.

He advised government to carry out a comprehensive survey before giving any directive.

Enumerating the causes of the high fares, the Head, Research and Statistics, Zenith Travels, Mr. Olumide Ohunayo, said, “Nigerians are naturally ego-tripping and enjoy swimming in affluence, whether it is economical or not. Also, public travel expenditure is deregulated without ceiling; all what public officials pass to their audit departments is the ticket coupon or receipt.

“Moreover, lack of travel planning by most Nigerians and delayed approval and processing, which have become a norm, make those fares inevitably expensive. This, however, improves the yield and profitability of the foreign airlines.”

However, a prominent travel agency operator, who spoke under condition of anonymity, said the Nigerian government should be blamed for the exorbitant fare regime being implemented by the foreign airlines.

The operator, an executive member of the National Association of Nigerian Travel Agents, noted that even the economy fares are equally very expensive.

He said, “Our government should be blamed for this rip-off. Government is meant to regulate the foreign airlines’ fare regime, but they are not doing so. In other climes, the fares are regulated by the government. Our indigenous airlines too have joined them.

“One of the ways you can know is that, during the off-season when demand is low, you see some of these foreign airlines halving their fares in the name of promotional fares. Almost half of the seats in the planes are sold at this amount (a little less than 50 per cent of what is charged in normal seasons). Yet, they still make profit. The fact is that even if government, after a comprehensive investigation, decides to slash foreign fares by 25 per cent, the foreign airlines will still keep coming to Nigeria.”

A former spokesman of the liquidated national carrier, Nigeria Airways, Mr Chris Aligbe, said the government should take a cue from Ghana by engaging the foreign airlines in business discussions that would lead to reduction of fares.

Aligbe, who is the Managing Director, Belujane Konsult, an airline consultancy firm, said the majority of the foreign airlines operating in Ghana had low fare regime for their premium classes because the Ghanaian government engaged them in business discussions.

Posted in Nigerian News, Relocating to Nigeria0 Comments

Nigerians in U.S. to meet FG on fuel subsidy removal


 

Nigerians in the U.S. have scheduled a meeting with the Federal Government in Chicago on Jan. 14 to discuss the removal of fuel subsidy.

The meeting was organised by Nigerians in Diaspora Organisation in the Americas (NIDOA), in conjunction with the Nigerian Embassy in Washington.

NIDOA is the umbrella organisation of all Nigerians living in the Americas and the Caribbeans.

NAN also learnt that a high-powered Federal Government delegation would attend the meeting, which would also enable the government to make lucid clarifications on issues relating to the removal of fuel subsidy.

In an interview in New York on Sunday, Dr Ezekiel Macham, the President-General of the U.S. chapter of Zumunta Association, confirmed the proposed meeting.

He, however, stressed that the decision of the NLC and the Trade Union Congress (TUC) to embark on a nationwide strike on Monday, Jan. 9, would not help the situation.

Macham said that even though the removal of fuel subsidy could be beneficial in the long run, there was a need to initiate discussions on the policy before its implementation.

“They should have spent more time to prepare people for the removal of the fuel subsidy; it may be something good,’’ he said.

Besides Macham, a senior official of the Nigerian Embassy in Washington, who preferred anonymity, confirmed the proposed meeting. (NAN)

1 person likes this post.

Posted in Nigerian News0 Comments

Obtaining student visa with tears


In this report, SEGUN OLUGBILE who visited some foreign embassies in Abuja highlights the challenges being faced by young Nigerians in search of student visa to further their university education abroad

Frustration, anger and utmost apprehension were written boldly on the faces of youths, who gathered at the Ukrainian Embassy in Abuja on this hot Wednesday afternoon. Their mission was the same. They were there to obtain visa that would enable them to go and continue their studies in various universities in this eastern European nation.

Some of them from various states across the country had been there for as many as 20 times. The Nigerian security agents attached to the embassy had hectic time controlling the surging crowd of youths and some parents who accompanied their children. The embassy located on Parakou Crescent, off Aminu Kano Street, Abuja, did not provide shelter and seats for them. So they were left to the vagaries of the inclement weather that Abuja experienced in December.

Once in a while, an official of the embassy would come out to call out a number, the lucky applicant would rush in. And most of the few lucky ones that were given date for the oral interview, our correspondent gathered, had paid agents between N300,000 and N400,000. The same scenario played out at the Russian Embassy where frustrated prospective  students of universities in Russia were struggling to outdo one another to gain the attention of security operatives in the embassy.

One of the candidates, who simply identified herself as Oyin, said the embassies were capitalising on the increasing number of Nigerians seeking admission to universities in their countries to make more money from desperate Nigerians. This is true as findings revealed that each of the embassies had hiked the application form for visa from $45 in August to $90 in October.

Lucky applicants, it was gathered, paid between $1,000 and $1,200 after the application must have been granted. Due to the stringent conditions, most applicants were denied visa and subsequently lost their admission. Oyin, who had been admitted to the Lugansk State Medical University, Lugansk, Russia to pursue a degree in medicine, said she could not make the admission because she could not even secure a date for a meeting with the Russian Consul in Abuja let alone securing the visa.

“I had wanted to study medicine when I finished secondary school but I could not make the cut off point and therefore settled for a degree in Human Physiology. So, as soon as I completed my programme in 2010, I applied to Lugansk State Medical University in Russia. I was happy the day I got my letter of admission. I thereafter applied for visa and was asked to come and pick a date for the interview. The first day I came, what I met was an eyesore. Over 500 of us were there shoving and pushing ourselves, the security agents were not helping matters.’’

Though she got to the embassy around 6:30am, she left by 5:30pm after she succeeded in picking a number. That was on a Monday. The following Wednesday, she left her uncle’s place around 4am thinking she could get to the embassy early, do the interview early and left for home. But her assumption was wrong.

“When I got to the embassy around 4.45am, it was like a market. I was surprised to meet people there. It was as if people slept there. I waited till about 4.30pm when a Russian official just came and said they had  finished for the day. I was furious just like the other guys that I met there. That was how I have been visiting the embassy until one day in October, I did not get home until around midnight. This infuriated my parents and they stopped me from going there again. That was how I forfeited my admission.’’

Though she was expected to resume on November 15, her inability to get the visa had frustrated her ambition. When asked whether her university intervened on her behalf, she said yes. “The university wrote, I submitted all the necessary documents, I paid the visa application fee but unfortunately, I could not just get the visa,” she said.

Oyin had decided to go back home and participate in the mandatory national youth Service Corps scheme after which she might try to go to Canada for a degree in medicine.

At the Ukrainian embassy too, some young Nigerians narrated their travails to our correspondent. A graduate of the University of Nigeria, Nsukka, Enugu State, Chima Ndukwe, said that though he had spent over  N250,000 on transport and hotel accommodation to and from Abuja from Lagos, he had not been able to secure a date for the interview.

He alleged that corruption and influence peddling by “some big men” and the lack of respect for Nigerians by the Ukranian Embassy officials were some of the factors frustrating  young Nigerians desiring foreign education.

“Nigerian government should do something about higher education in this country. These people treat us with disdain. When Nigerian university system was good, how many Nigerians  would go to Ukraine to go and study? Look, these people have no respect for us and unfortunately, our Nigerian brothers who are posted there as security agents are not helping matter. I’ve spent over N250,000 on transportation and accommodation from Lagos to Abuja.

“I’ve been coming since September and this is December and by rule I’m supposed to resume on November 15 although the university has said that I could come in January but with the way things are going, I don’t think that the visa application would be successful because as I’m talking to you now, what I have been able to do is just to get the number and as at now (3.43pm) only about three applicants had been called in. They would soon come out to tell us to go,” he said.

When our correspondent attempted to take a photograph of the crowd, one of the mobile policemen attached to the embassy prevented this, saying that  doing so was illegal. He threatened to give our correspondent the Boko Haram treatment if his order was disobeyed. The security man only directed our correspondent to the notice board placed at the fence of the embassy for information about the visa application process. “Mr. Journalist, you cannot enter the embassy and you must not take any photograph,  if you need any information go to that notice board,” he said.

On the noticeboard, the embassy just listed the procedure for student visa  and this include submission of letter of admission, letter of the sponsor and statement of account, identification letter as a Nigerian from the Federal Ministry of Foreign Affairs and the approval of education certificates presented by applicants by the Federal Ministry of Education.

However, it was alleged that sharp practices involving some top Nigerian officials in the Federal Ministry of Education and the finance ministry were some of the factors that enhanced the stringent conditions for the visa application.

One of the applicants, who pleaded not to be named for fear of possible persecution, said that top officials of the Federal Ministry of Foreign Affairs were colluding with some officials of these foreign embassies to compromise the process.

“I know people who bribed their way with about N250,000 to secure the visa after which they still have to pay the official visa fee,” he said.

But when our correspondent visited the ministry, officials, who spoke on condition of anonymity, denied the allegation.

“We don’t issue visa, the only thing we do is to confirm the identity of applicants as Nigerians while the Federal Ministry of Education authenticates the certificates presented by applicants. On the issue of bribery, I cannot say anything about that,” the source said.

However, a parent, who simply identified herself as Mrs. Ogunnoiki, said though she did not give anybody bribe, it was not impossible that some highly placed Nigerians could be compromising the process.

“What I don’t like about the whole process is the way and manner these oyinbo people are treating Nigerians in Nigeria. They are using policemen and soldiers to harass us and our children, thereby subjecting us to psychological trauma. All through the period I went there, apart from the money we wasted, we were made to sit in the sun for hours all the time we were there.

Her daughter had secured admission to Crimea Medical University, Crimea in Ukraine to study medicine and since she got the admission letter, they had been shuttling between Port Harcourt where Ogunnoiki works as a lawyer and Abuja, where the Ukrainian embassy is located.

“Unfortunately, we couldn’t  secure the visa. We had to give up. We will try another university in another foreign nation in Europe in 2012,” she said.

Ogunnoiki, therefore, called on the Federal Government  to develop the nation’s universities. Our  lecturers are good but we lack equipment and teaching facilities. The Federal Government should provide them with tools to work with and motivate them with good welfare package, then all these foreign nations will stop treating us with disdain,” she said.

But why are Nigerians seeking foreign education? Some Nigerians, including the Executive Secretary, Association of African Universities, Prof. Olagbemiro Jegede; and the President, Nigerian Academy of Science, Prof. Oye Ibidapo- Obe, said that inadequate access, irregular academic calendar and preference for foreign certificates by employers of labour had combined to make foreign university education attractive to Nigerians.

Jegede, however, warned Nigerians seeking foreign university education to be wary of where they go to in search of such education. “We don’t cherish what we have but I will not blame people who go in search of foreign education, I will only warn that they should be careful in making their choices because not all foreign universities are good,” he said.

Posted in Nigerian News, Relocating to Nigeria0 Comments

Cashless Lagos takes off amid anxiety


Written by Odidison Omankhanlen

The much talked about cashless Lagos formally commenced on Sunday amid further clarifications from industry regulators and top state government officials.
The cashless policy, an initiative of the Bankers’ Committee, was introduced by the Central Bank of Nigeria (CBN), to drive development and modernisation of the nation’s payment system in line with the Vision 2020.
It is meant to gradually move the nation away from a cash-based economy to electronic payment system in line with what obtains in developed economies of the world.
Lagos State had been chosen as the pilot project before spreading to some key cities in the country by June this year.
Investigations by the reporter showed that though the policy took off during the public holiday when banks were not open for business, the CBN, banks and Lagos State government officials had spent the last few weeks enlightening members of the public on the desirability and modalities for effective implementation of the policy.
Only last week, the apex bank shifted the service charges/fees for those transacting cash above the stipulated amount in Lagos to March 30, 2012, stressing that it was in order to give people time to migrate to electronic channels and experience the infrastructure that had been put in place.
“Therefore, banks should continue to encourage their customers to migrate to available electronic channels, and where possible demonstrate the costs that will accrue to those that continue to transact high volumes of cash from March 30th, 2012 in Lagos State.”
CBN explained that the service charge for daily cumulative deposits above the limit into an account would be borne by the account holder, noting that during the pilot in Lagos, individuals paying money from Lagos, into an account outside Lagos, would bear the charges for any single transaction above the daily limit.
“Charges/fees shall apply for all transactions in Lagos, and on Lagos State based accounts. Transactions initiated out of Lagos State, and affecting a Lagos based account shall not attract charges/fees, and shall not be counted as part of the daily,” it stated.
The limits are cumulative daily limits each for withdrawal, and for deposits. For individuals, the daily free withdrawal limit is N150,000; while the daily free deposit limit is N150,000. The limits apply to the account so far as it involves cash, irrespective of channel for example over the counter, ATM, 3rd party cheques encashed over the counter, etc in which cash is withdrawn or deposited.
For instance, if an individual withdraws N50,000 over the counter, and N150,000 from the ATM on the same day, the total amount withdrawn by the customer is N200,000, and the service charge will apply on N50,000 – the amount above the daily free limit). The limit also applies to cash brought through CIT companies, as the CIT company only serves as a means of transportation.

Posted in Nigerian News, Relocating to Nigeria0 Comments

Philippines extends ban on workers to Nigeria


 

The Philippines said yesterday it would extend a ban on sending workers to
Nigeria after Christmas Day bombings in the country left 35 people dead.

The two-year-old ban was to have been lifted by January 1 to allow the
movement of thousands of Filipinos seeking to work in Nigeria’s booming energy
sector. But the wave of bombings has raised fresh security fears, and the ban
will now remain in place for at least three more months, the foreign department
said in a statement.

The Philippine government imposed the ban after a
series of Filipino workers were kidnapped in the Niger Delta region between 2006
and 2009. The labour ministry had recommended the ban be lifted days before the
bombings occurred. The attacks were blamed on the Islamist group Boko
Haram.

The mainly Catholic Philippines is a major labour-exporting
country, with about 10 percent of its 94 million population working abroad, many
as maids, seamen, construction workers and labourers.

 

 

Posted in Nigerian News, Relocating to Nigeria0 Comments

The cost of one Litre of Petrol


A revealing, fresh, factual perspective to the ongoing debate on fuel subsidy. Dr. Izielen Agbon, a petroleum engineer and an economist, here says there is no fuel subsidy rather, Nigerian petrol is over prized at N65 a litre.

ON December 10, 2011, if you stopped at the Mobil Filling Station on Old Aba Road in Port Harcourt, you would be able to buy a litre of petrol for N65 or $1.57 per gallon at an exchange rate of $1/N157 and 3.875 litres per gallon. This is the official price. The government claims that this price would have been subsidized at N74/litre and that the true price of a litre of petrol in Port Harcourt is N139/litre or $3.35 per gallon. They are therefore determined to remove their subsidy and sell the gallon at $3.35.

But, On December 10, 2011, if you stopped at the Mobil Gas Station on E83rd St. and Flatlands Avenue in Brooklyn, New York, U.S., you would be a able to buy a gallon of petrol for $3.52. Both gallons of petrol would have been refined from Nigerian crude oil. The only difference would be that the gallon in New York was refined in a U.S. North East refinery from Nigerian crude exported from the Qua Iboe Crude Terminal in Nigeria while the Port Harcourt gallon was either refined in Port Harcourt or imported. The idea that a gallon of petrol from Nigerian crude oil would cost nearly the same in New York as in Port Harcourt runs against basic economic logic. Hence, Nigerians suspect that there is something irrational and fishy about such pricing. What they would like to know is the exact cost of one litre of petrol in Nigeria. We will answer this question in the simplest economic terms despite the attempts of the Nigerian government to muddle up the issue.

What is the true cost of a litre of petrol in Nigeria?  The Nigerian government has set aside 445,000 barrels per day throughput for meeting domestic refinery products demands. These volumes are not for export. They are public goods reserved for internal consumption. We will limit our analysis to this volume of crude oil. At the refinery gate in Port Harcourt, the cost of a barrel of Qua Iboe crude oil is made up of the finding /development cost   ($3.5/bbl) and a production/storage /transportation cost of $1.50 per barrel. Thus, at $5 per barrel, we can get Nigerian Qua Iboe crude to the refining gates at Port Harcourt and Warri. One barrel is 42 gallons or 159 litres.

The price of one barrel of petrol at the depot gate is the sum of the cost of crude oil, the refining cost and the pipeline transportation cost. Refining costs are at $12.6 per barrel and pipeline distribution costs are  $1.50 per barrel. The distribution margins (retailers, transporters, dealers, bridging funds, administrative charges etc) are N15.49/litre or $15.69 per barrel. The true cost of one litre of petrol at the Mobil Filling Station in Port Harcourt or anywhere else in Nigeria is therefore ($5+$12.6+$1.5+$15.7) or $34.8 per barrel. This is equal to N34.36 per litre compared to the official price of N65 per litre. Prof. Tam David-West is right. There is no petrol subsidy in Nigeria. Rather the current official prices are too high.

Let us continue with some basic energy economics.  The government claims we are currently operating our refineries at 38.2 per cent efficiency. When we refine a barrel of crude oil, we get more than just petrol. If we refine one barrel (42 gallons) of crude oil, we will get 45 gallons of petroleum products. The 45 gallons of petroleum products consist of four gallons of LPG, 19.5 gallons of gasoline, 10 gallons of diesel, four gallons of jet fuel/kerosene, 2.5 gallons of fuel oil and five gallons of bottoms.  Thus, at 38.2 per cent of refining capacity, we have about 170,000 barrels of throughput refined for about 2.57 million litres of LPG, 12.55 million litres of petrol, 6.43 million litres of diesel and 2.57 million litres of kerosene/jet fuel, 1.61 million litres of fuel oil and 3.22 million litres of bottoms. This is not enough to meet internal national demand. So, we send the remaining of our non-export crude oil volume (275,000bpd) to be refined abroad and import the petroleum products back into the country. We will pay for producing the crude oil, shipping the crude oil to the foreign refineries, refining the crude oil and shipping the petroleum products back to Nigeria.

The Nigerian government exchanges the 275,000bpd with commodity traders (90,000bpd to Duke Oil, 60,000 barrels per day to Trafigura (Puma Energy), 60,000bpd to Societe Ivoirienne de Raffinage (SIR) in Abidjan, Ivory Coast and 65,000bpd to other sources) in a swap deal. The landing cost of a litre of petrol is N123.32 and the distribution margins are N15.49 according to the government. The cost of a litre is therefore (N123.32+N15.49) or N138.81. This is equivalent to $3.35 per gallon or $140.74 per barrel. This is the price that the Nigerian government wants its citizens to pay. However, the landing cost is made up of the international cost of a barrel of crude oil, the shipping cost of the crude oil to the foreign refineries, the refining cost and the shipping cost of the refined products back to Nigeria (North West Europe to West Africa – WS100). Let us explain further.

A barrel of Nigerian Qua Iboe Crude oil cost $107 at the North European Rotterdam market. In technical terms, one barrel of Qua Iboe crude oil has a volume yield of 6.6 per cent of AGO, 20.7 per cent of gasoline, 9.5 per cent of kerosene/jet fuel, 30.6 per cent of diesel, 32.6 per cent of fuel oil /bottoms when it is refined. Using a netback calculation method, we can easily calculate the true cost of a litre of imported petrol from swapped oil. The gross product revenue of a refined barrel of crude oil is the sum of the volume of each refined product multiplied by its price. Domestic prices are $174.48/barrel for AGO, $68.53/barrel for gasoline (PMS or petrol), $172.22/barrel for diesel oil, $53.5/barrel for kerosene and $129.68/barrel for fuel oil. Our gross product revenue per swapped barrel would be (174.48*0.066 +69.55*0.207+ 172.22*0.306+ 53.5*0.095+129.68* 0.326) or $125.20 per barrel. We have to remove the international cost of a barrel of Nigerian crude oil ($107 per barrel) from this to get the refining gross margin of imported swapped petroleum products. The refining gross margin is the difference between the gross products revenue (the sum of the volume of each refined product multiplied by its price) and the cost of the crude oil. The refining gross margin of swapped petroleum products would therefore be $125.20 -$107 or $18.20 per barrel.

The total cost of the petroleum products from swapped crude oil is the sum of the cost of production/storage, pipeline distribution cost, the cost of shipping the crude to the foreign refineries, the gross refining margin and the distribution margins. It cost $5 per barrel to produce and store the crude oil and $1.50 per barrel pipeline distribution cost to get it to the Qua Iboe Crude Terminal. The freight cost to Europe (the furthest refinery is Trafigura) is $2.50 per barrel. The refining gross margin is $18.2 per barrel and the distribution margins (retailers, transporters, dealers, bridging funds, administrative charges etc) are N15.49/litre or $15.69 per barrel. Thus the total cost of the imported PMS is ($5+$1.50+$2.50+$18.20 +$15.69) or $42.89 per barrel. This comes out to be a total cost of N42.36 per litre. This is the true cost of a litre of imported swapped petrol and not the landing cost of N139 per litre claimed by the government.

The Nigerian government did not sell the 275,000 barrels per day to Duke Oil, Trafigura (Puma Energy), Societe Ivoirienne de Raffinage (SIR) in Abidjan, Ivory Coast and other commodity traders at international prices in its swap deal. Rather, it wants Nigerian citizens to pay for the swapped oil at this price. This is the economic logic defined by the ideological prism of the World Bank. The pro-subsidy Nigerian government imbeds the cost of the swapped crude oil at international prices into the landing cost of $140.74 per barrel (N139 per litre). The government therefore argues that the “subsidy” is N139-N65 or N74 per litre. By imbedding the cost of crude oil at international prices in the landing cost, the Nigerian government is trying to sell the crude oil to Nigerian citizens (including indigenes of oil and gas host communities in the Niger Delta) at international prices as if they are foreigners in their own country with no claims whatsoever to their natural resources. This is the political implication of the government economic calculations and its demand for the removal of a non-existent petrol subsidy. We are foreigners in our own motherland. Therefore, we must pay for Nigerian crude oil like foreigners do.

So let us conclude this basic economic exercise. If the true price of 38.2 per cent of our petrol supply from our local refinery is N34.36/litre and the remaining 61.8 per cent has a true price of N42.36 per litre, then the average true price is (0.382*34.36+0.618*42.36) or N39.30 per litre. The official price is N65 per litre and the true price of petrol in Nigeria is N39.30 per litre (even with our moribund refineries and imports). There is therefore no petrol subsidy. Rather, there is a high sales tax of 65 per cent at current prices of N65 per litre.

The labour leaders meeting the President should go with their economists. They should send economists and political scientists as representatives to the Senate Committee investigating the petroleum subsidy issue. The labour leaders should not let anyone get away with the economic fallacy that Nigerians must pay international prices for Nigerian crude oil as if we are foreigners in our own country. The government should explain why it wants to sell Nigerian crude oil at international prices in a domestic market. It should explain why we must become foreigners in our own country because it promises to develop the country with the excess funds just like the Abacha regime had promised to do.

We have done this simple economic analysis of the Nigerian petroleum products market to show that there is no petrol subsidy what so ever. In the end, this debate on petrol subsidy and the attempt of the government to transfer wealth from the Nigerian masses to a petrol cabal will be decided in the streets.

• Dr. Agbon spent the last 30 years working in academia and the oil and gas industry.

7 people like this post.

Posted in Nigerian News, Relocating to Nigeria0 Comments

Zungeru: Nigeria’s neglected birthplace


Zungeru is a town in the present Niger State and can be said to be the birthplace of Nigeria and many prominent Nigerians. The pact bringing Nigeria into being was signed there and a number of colonial relics scatter all over the town.  The first Nigeria’s indigenous Governor-General, Dr. Nnamdi Azikwe, Ikemba Nnewi, Chief Odumegwu Ojukwu and the incumbent Senate President, David Mark, were all born there, yet the historic community, which ought to be a tourist centre, begs for development. ADELOWO OLADIPO reports.
LITTLE was known about it prior to the advent of the British colonialists who were undoubtedly looking for a conducive place to settle down. With its clement weather and proximity to Kaduna River, Zungeru, a historical town in Niger State where the Northern and Southern protectorates of Nigeria were later amalgamated, easily caught the attention of the colonialists who used the town as their operational base.
The colonialists, some of whom employees of the Royal Niger Company, had combed towns and villages in a place later to be named Nigeria, prospecting for the company. Lord Lugard, the Governor-General of Nigeria between 1914 and 1919, for instance, was in Jebba and Lokoja where he settled down for a while before he later shifted his base to Zungeru, the then emerging trading point in Nigeria.
With the coming of the colonialists, Zungeru, an erstwhile Gwari-Nupe settlement, shot into limelight and drew people from the length and breadth of the country who settled down there. Being an emerging base of a yet-to-be-created nation and the European lifestyle as well as the desire of many to seek a greener pasture outside their towns and villages, people from different parts of the country were motivated to migrate to the town.
Zungeru served as the birthplace of the Nigeria’s first indigenous Governor-General, Dr. Nnamdi Azikwe, the late Biafran leader, Chief Emeka Odumegwu Ojukwu, the incumbent Senate President, Senator David Mark and many other Nigerians who later rose to stardom in the country. The town is home to European military cemetery, a colonial market,  the amalgamation office, colonial prison, colonial Government House and a bridge built by colonialists as well as many other historical centres.
Sunday Tribune visited the town recently and discovered that Zungeru has been abandoned. All the structures have either collapsed or taken over by the federal highway that passes through the community. However, some of these colonial buildings, though collapsed, still have their foundations intact, except that during the raining season, they are usually overgrown with weeds.
According to Alhaji Abubakar Yusuf, the spokesman of the community, Zungeru has become the shadow of its former self. He said the problem of the town started when late Queen Elizabeth of England instructed Lord Lugard to leave Nigeria for India and Hong Kong with a view to introducing indirect rule in those two countries.
“Thereafter, somebody came to take over from him in Nigeria and the person was Brigadier Thomson Wallace, also of blessed memory. It was this man that complained of harsh weather as well as saying that so many members of the then Armed Forces were falling sick as a result of malaria caused by mosquito bites.
“He was asked to select other suitable places in Nigeria at the period and he chose Kaduna. That was exactly the foundation of what has led to the abandonment of Zungeru till date. Thereafter, Lord Lugard moved to Kaduna, after the completion of his action plan in 1916.”
He stressed that the British military cemetery in the community contained the remains of the first detachment of soldiers of the West African Frontier Force who were buried there, especially those who fought in the World War II. The military cemetery, according to him, consists 50 burial grounds of foreign soldiers and five Nigerians that were buried close to the enclosed cemetery. The Nigerian Railway Corporation (NRC), he said, started in Zungeru.
“We used to have a locomotive engine called Wushishi, now at Minna railway station. We also had a town hall where Lord Lugard used to assemble the community members, which is now a market square in the middle of the town,” Alhaji Yusuf added.
A prominent researcher resident in Zungeru, Malam Mohammed Jibrin, stated that the parents of late Emeka Odumegwu Ojukwu worked with the colonial masters for several years as clerks before leaving for Lagos in 1918 after the white men left for Kaduna in 1916.
Malam Jibrin, who took this reporter to the relics of the family compound where late Emeka Ojukwu was born, said even though (he) Emeka and his parents did not come back to Zungeru since they left the town, the fame the family brought to the town and even Nigeria as a whole was enough for the people of the community to identify with him even in death.
“Let us not deceive ourselves; Emeka played an important role in Nigeria and across. I remember him with this simple quotation, ‘How can we be immigrants in our father’s land? We fought to unite, why should we fight again to disunite?’”
He lamented the abandonment of the town, noting that the relics of the colonial buildings in Zungeru ought to have been rebuilt and turned into tourist centres for people within and outside the country.
He said the office where the amalgamation took place in 1914 was still there and not renovated.  According to him, “Zungeru is the home of Nigeria, but unfortunately it has been disowned by its own people. The British High Commissioner to Nigeria, Andrew Lloyd, was here recently. His counterpart from Australia, Ian Mccogvilce, also visited this town to inspect the relics scattered all over Zungeru. Some people from the United Kingdom came back to Zungeru with enthusiasm to inspect the tombs of their grand parents who died during the colonial days in the town. So, you can see the role this town played and can still play as a tourist centre for both Nigerians and foreigners alike if properly developed.”

Posted in Nigerian News, Relocating to Nigeria, Tourism0 Comments

Police investigate alleged exam fraud by lawmaker


GEORGE OPARA

Chetachi Obi, an aide to Hon. Nkiruka Onyejiocha Chidubem, representing Isuikwuato/Umunneochi Federal Constituency in the House of Representatives, has said her arrest last week for allegedly writing the Nov/Dec NABTEB examinations for her boss was a set up by political opponents of the lawmaker. Meanwhile, the Abia State Criminal Investigation Department (CID) has said investigation into the matter is on going as a team of police officers have been dispatched to Benin office of NABTEB to find out among other things, if the legislator was registered for the examination or not.

This is consequent upon denial by Obi that she was writing examinations as at time she was arrested by the police as her boss did not have need for such documents, having already obtained diploma and masters degrees from recognised educational institutions. Police source revealed that since the examination body has no office in Abia, it dispatched a team to Benin, Edo State, to cross-check facts regarding the allegations against Obi even as she has been released on bail. “We don’t want to be seen to be trading words with the suspect. This is not the first paper she is writing in the examination. You know politicians; they are only trying to launder their image. We are still investigating the matter. NABTEB has no office in the state. We are going to Benin to carry on with investigations”, it said.

Meanwhile, Obi has denied allegation of writing examination for her boss, stating that she was a victim of bitter political intrigues. She claimed an unknown person had earlier called her on phone to come to Unique Comprehensive High School, Isuochi in Umunneochi Local Government Area of Abia State, venue of the examination where she was subsequently arrested by policemen who took her to the state CID Umuahia, even as she said those who witnessed the event thought she had been kidnapped. “What happened was very unfortunate. The incident revealed the length some people who are desperate for political power can go. I was at Abia State University to complete the registration for my admission into the law faculty, when someone called that I should come to Unique Comprehensive High School for an urgent message from my boss.

When I got there, someone came out from the exam hall and asked me to wait for the message. Later, some police officers came and in threatening manner asked for my car key, which I gave to them. They drove me in a white Mercedes Benz car to Umunneochi Police Station and then to the state CID in Umuahia, where I was shown a letter from the Police Commissioner, purportedly written by some indigenes of Isuochi against my boss. When I asked to see the petitioner, they refused, saying it was a fight between two elephants and I am the grass,” Obi narrated. Asked why she answered a call from an unknown person, Obi said she usually receives calls from all manner of persons given the nature of her job in the constituency, even as she denied that her boss entered for NABTEB examinations, having obtained WASC, diploma, and masters degrees from Imo State University.

“Her first degree was on religious study, after obtaining a diploma that qualified her for direct entry for the degree programme” she said. The political aide said she was shown a petition at the state CID allegedly written by a ‘Concerned Citizens’ of Umunneochi, even as it bore no names and signatures, blaming it as handiwork of the lawmaker’s political enemies. She alleged the examination admission card with the name and photograph of the law maker was fake, saying as a public figure, the lawmaker’s photographs can easily be obtainable.

On close examination, it was discovered the lawmaker obtained only a pass in English Language and failed Mathematics when she sat for the West African School Certificate Examinations WAEC, in 1984 at Ovim Girls Secondary School, Afikpo,Abia State. However, investigations revealed that the, ‘Candidate Photo Card’ had names and passport photo of one Onyejiocha Nkiruka Chidubem , suspected to be those of the lawmaker, who entered for the Nov/Dec examination at the centre code 01060, with Candidate Number, 01060085 at Unique Comprehensive High School Isuochi, while other subjects for the examination are, 413-Office Practice, 001-English Language, 002-Mathematics, and five others.

2 people like this post.

Posted in Crime, Nigerian News0 Comments

Nigeria gets £150m for green transportation programme


Written by Alex Abutu

The United Kingdom has pledged to support the development of low emission urban transport system in Nigeria with £150 million, its Minister of State for Climate Change, Mr. Gregory Barker has disclosed.

A statement issued by the ministry said that Barker made the pledge at a meeting with Nigeria’s Minister of Environment, Mrs Hadiza Ibrahim Mailafia at the ongoing climate change conference in Durban.

Barker according to the statement said that the pledge was part of a UK vote of 2.9billion pounds to aid adaptation projects in the developing countries.

Barker urged Nigeria to use its international influence to get some hard-line countries in the developing countries to back positive climate agreements in Durban.

Mailafia who also head Nigerian Government Delegation to the Conference said that it was important countries bridge the divide and come up with a concrete climate agreement that would lead to remarkable emission cuts.

She said that a failure in Durban by countries to agree on how to tackle climate change would have a devastating impact on Nigeria considering the loss and damages the country was already suffering.

According to Mailafia, “we have 23 per cent of our Arable land lost to desertification thereby affecting food security while unpredictable pattern of rainfall has subjected a whole region of the country to huge gully erosion. The impacts of climate change in Nigeria are indeed index of insecurity and this is why we are anxious to have positive agreement here.”

“We must do something here. It is obligatory now more than ever before because disasters are aggravating. Nigeria is witnessing this already as there are floods everywhere and we are also faced with the dumping of electronic waste in our country,” she added.

The meeting between Nigeria and United Kingdom was part of the series of bilateral talks being held by Nigeria to facilitate broad consultations towards a positive outcome for the Climate Change negotiations

Posted in Nigerian News0 Comments

US Government in support of fuel subsidy removal in Nigeria


The United States Ambassador to Nigeria, Terence McCulley has said that  his country’s government is in support of the planned removal of fuel subsidy in the country.
The ambassador made the statement in Abuja on Monday during a visit to the Minister of Labour and Productivity, Chief Emeka Wogu.
A statement signed by the Assistant Director for Media in the Ministry, Samuel Olowookere, said the visit was to enable the ministry to sensitise the U.S. embassy on the challenges  facing the Federal Government with regards to job creation and to  seek ways to collaborate in solving them.
The U.S. ambassador said the creation of jobs through diversification of the economy was a welcome development.
‘’We will look for ways to partner with you to bring in the U.S business people to invest in this area and create jobs as Nigeria is central to President Barack Obama’s National Export Initiative designed to export goods and machinery to the country . This  would benefit the Nigerian economy,’’ the News Agency of Nigeria quoted Mr. McCulley as saying during the visit.
Wogu said although unemployment was  not peculiar to Nigeria, ‘’job creation and employment generation is at the fore-front of the transformational agenda of President Goodluck Jonathan.
‘’Unemployment is a global thing and the U.S government is also battling it the same way we are tackling this problem in Nigeria’’.
According to him, the removal of fuel subsidy would create revenue for capital projects which would result in job creation.

Posted in Nigerian News, Relocating to Nigeria0 Comments

Page 1 of 912345...Last »


Watch Channels TV Nigeria (Please click the volume sign below the visual area to unmute audio)




SocialTwist Tell-a-Friend




Lagos Live Traffic Report

(Updated every few seconds!)

click here to monitor traffic report


Podcast

  • Identification