President Bola Tinubu has ordered the Attorney-General of the Federation, Lateef Fagbemi (SAN), Minister of State for Petroleum Resources, Heineken Lokpobiri, and other agencies of government to clear all court cases around the $1.3bn deepwater OML 245 oil block located in southern Niger Delta.

Other agencies that also received the order include the Economic and Financial Crimes Commission, Nigerian Upstream Petroleum Regulatory Commission and Nigerian National Petroleum Company Limited.

Lokpobiri disclosed this in Abuja on Wednesday, as he revealed that parties in the deal were currently negotiating to end the over 28 years crisis and litigations surrounding the prolific oil block in the next one month.

The Malabu OML 245 deal and subsequent litigations with the Nigerian government is a complex and long-standing saga involving allegations of corruption, fraud, and legal battles.

The oil block in question, OML 245, is considered one of Nigeria’s most prolific oil blocks. In 1998, Malabu Oil and Gas, a company with links to former Nigerian Minister of Petroleum, Dan Etete, acquired the block for $2m.

In 2001, the Federal Government under former President Olusegun Obasanjo revoked Malabu’s license due to “questionable practices.”

In 2006, Malabu challenged the revocation in court, eventually reaching an out-of-court settlement with the government under former President Umaru Yar’Adua.

In 2011, Shell and Eni, two major oil companies, acquired the block for $1.3bn from Malabu in a deal approved by the Nigerian government.
But since then there have been allegations and litigations, as Transparency International and other anti-corruption groups alleged bribery and corruption in the deal, with funds allegedly funneled to Nigerian government officials.

This resulted in litigations involving Nigeria versus Eni and Shell, as the Nigerian government under former President Muhammadu Buhari pursued legal action against Eni, Shell, and Malabu, alleging corruption in the deal.
Commeting on the issue, Lokpobiri said,

“The previous administration initiated most of the cases that we are talking about today, and they took us to court, while we took Eni, Malabu, others to different courts in Europe, Canada, etc, but we didn’t win any of the cases.

“To even shock you, there is one that got us a penalty of over 70 million pounds. How did that happen?”
He explained that JP Morgan sued the government for trying to dent its image in the saga, adding that the penalty was now binding on Nigeria.

“So we have been fined over 70 million pounds by the court. Who will pay that? You and I will pay that, or our children will pay, because it is a judgement debt. And in all the ones that we pursue both in Switzerland and other locations, we have no evidence to get conviction.

“And so it makes sense for this government to come and say that for 28 years, this block has been idle. This block is a prolific block that will add so much value to our economy, so let’s see how we can resolve the problem.

“So we are talking to Eni and Shell, and saying let’s sit down and see how we can resolve all the problems. We have taken you to court on multiple occasions, you have also taken us to court, but let’s see how we can resolve these problems,” the minister stated.

The Nigeria Customs Service generated a total sum of N3.21 trn in the year 2023, Comptroller General of the Service, Bashir Adeniyi told members of the House of Representatives Committee on Customs and Excise on Wednesday.

Adeniyi who appeared before the committee accompanied by top officials of the NCS told the lawmakers that though the service targeted the sum of N3.67trn in the outgone year, it was only able to generate N3.21trn owing to a combination of factors.

This is even as he stated that all things being equal, men and officers of the NCS will work diligently to generate N5.08trn for the nation in 2024.

He said, “In 2023, the revenue target for the service was N3.67tran and remarkably, the service collected a total revenue of N3.21trn from January to December 2023.

“When we compare what we collected in 2023 to what was projected as our targets, there was a negative variance of N462.9 bn, which represents 12.62 per cent of what was approved as revenue targets.

“Though we didn’t achieve what we projected, but we want to say with all sense of modesty that we did our best. And when we consider all factors, we will appreciate the fact that we at NCS did the best we could.”

The Nigerian Government has said the Port Harcourt Refining Company was still being test-run, adding that refined petroleum products from the plant would hit the market soon.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, told journalists on Wednesday that the plant was still being test-run.

Speaking at a briefing in Abuja, Lokpobiri, said the mechanical aspect of the refinery has been completed

According to him, the Port Harcourt refinery is one of the projects that were very fundamental to the survival of the country economically.

“I believe that very soon products will start coming from there…and the Warri refinery is in top gear.

“So I believe that very soon the Port Harcourt refinery and the other refineries will all come on stream,” he said.

The Central Bank of Nigeria (CBN) hit the nail on the head yesterday.
It accused commercial banks of hoarding over $5 billion in foreign currencies against the threshold approved by the apex bank.

CBN blamed the prevailing forex scarcity and naira’s free-fall against the dollar on the actions of the Deposit Money Banks (DMBs).

The accusation came a day after the apex bank expressed concern about banks’ excessive forex exposure.

At the close of the market yesterday, the naira exchanged N1,450/$ at the parallel market.

It was a substantial gain (N70) against the dollar, having closed on Wednesday at N1, 520/$.

“Consequently, the CBN has mandated these banks to release any excess foreign currency they hold to individuals and businesses in need of foreign exchange by today’s deadline.

“Failure to comply with this directive will result in sanctions in accordance with existing rules and regulations.”

To show how serious the CBN is about this directive, the official said that “teams of examiners have been deployed to all commercial banks heavily engaged in FX transactions to monitor compliance with the directive.”

The CBN has moved to address the biting scarcity of foreign currency.

By releasing the surplus foreign currency, it is expected that the market will experience increased liquidity, and subsequently alleviate the strain on naira’s value, it was learnt.

Initial market response to the CBN directive, the official said, can be described as mixed.

Some banks have swiftly adhered to the directive, ensuring they meet the deadline for releasing the excess dollars.

The approach is seen as a positive step towards easing the pressure on the naira and promoting a more favourable exchange rate.

On the other hand, some financial institutions, the source said, “are cautious about revealing their exact dollar reserves and are treading carefully before fully complying”.

Their hesitation might stem from concerns about potential disruption to their operations and the potential impact on their customers.

“Just as some Nigerians prefer to keep their money in dollars because the naira is not a good store of value, banks also hold excess dollar liquidity to make gains. They do their own at the institutional level.

“What the CBN is saying with this new circular is that you cannot hold excess dollar liquidity again.

“Any foreign exchange you are holding must be committed to something, a transaction or obligation you can prove.

“Banks have made a lot of revaluation gains. Some banks, I believe, got approval under the last administration to hold more dollars than the requirement.

“The idea is that if banks sell all these excess dollars, there will be liquidity and the exchange rate will stabilise. Foreign investors will come in,” the top banker explained.

The source added: “The CBN remains resolute in its stance and all banks must cooperate to stabilise the naira and address the foreign currency shortage.

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“The apex bank aims to ensure adequate foreign exchange supply for critical sectors such as manufacturing, agriculture, and essential imports.”

What the expert says:

Dr. Wahab Balogun of Ambosit Capital Managers sees potential benefits and drawbacks in the CBN directive.

He said: “While increased FX liquidity and a stabilised Naira are desirable, managing potential disruptions to banks, inflation, and other sectors is crucial.

“Careful monitoring, adjustments, and communication from the CBN and banks will be vital for navigating the complexities of this intervention and achieving its intended positive outcomes.”

Balogun highlighted the positive implications of the development to include: increased FX liquidity as releasing excess foreign currency into the market can alleviate the current shortage, leading to smoother transactions and potentially stabilizing the naira’s exchange rate.

He argued that “businesses reliant on foreign exchange, especially critical sectors like manufacturing and agriculture, could benefit from easier access to funds for imports and operations”.

The directive to the banks by the CBN, he noted, will encourage “banks to adhere to regulations and avoid excessive foreign currency holdings, potentially promoting a more efficient and transparent FX market in the long run.”

“Addressing the FX shortage and stabilizing the Naira can contribute to overall financial stability, boosting investor confidence and economic activity.”

On the negative side, Balogun stated that releasing large amounts of foreign currency might cause temporary operational challenges for banks, which in turn would impact their liquidity and financial ratios.

He said: “Banks earn income through foreign exchange transactions, and a sudden decrease in their holdings could affect their profitability. Most importantly, increased liquidity could fuel inflation if not managed carefully, especially if demand for goods and services rises faster than supply.

Balogun noted that “the sector’s heavy reliant on a weaker naira (e.g., exports) could face challenges if the exchange rate strengthens significantly and the reaction of foreign investors and speculators to the increased FX liquidity could influence the exchange rate and market stability”.

As part of his support towards reclaiming the country’s reputation, the Minister of Information and National Orientation, Alh. Mohammed Idris Malagi, has unveiled the action plan on the National Spokespersons’ Summit being organised by the Nigerian Institute of Public Relations (NIPR) in partnership with the Federal Ministry of Information and National Orientation Agency.

The Minister who commended the Institute during the unveiling ceremony today in Abuja said the NIPR’s initiative to equip spokespersons with the right skills aimed at repositioning the nation’s reputation is commendable move, noting that spokespersons play key roles in the development of any society.

“Whenever you have a spokesperson who is not properly trained or who shouldn’t be there, talking about his organisation or the government entity he represents, then there is a big challenge. That is why this effort by the Nigerian Institute of Public Relations (NIPR) to address that is very critical. It is also part of the vision of President Bola Tinubu to see that the correct narratives come out of Nigeria, without which the shared prosperity the President is campaigning for will not happen”, he said.

He therefore, charged all leaders at public, private and civil society organizations to subscribe to the Summit with the theme, “Change Narrative, Change Society”, which is scheduled to hold on 25th – 28th March, 2024 at International Conference Centre Abuja, Nigeria’s capital.

The Minister’s unveiling of the Summit’s action plans and award component marks a milestone in the life of this project.

In attendance at the event were: the Institute’s Acting President, Prof. Emmanuel Dandaura, Chairman, National Planning Committee, Dr. Sule Ya’u Sule, Council Member representing the Federal Capital Territory (FCT), Mrs. Olubunmi Badejo, among others.

Stanley Ogadigo
Director, Public Relations
1-2-2024

Aviation and Aerospace Development Minister Festus Keyamo has revealed why the FG is intent on relocating the headquarters of the Federal Airports Authority of Nigeria (FAAN) from Abuja to Lagos

According to Keyamo, Nigeria would be saving more than N450 million in airfares that would have been spent by officials on trips from Abuja to attend meetings in Lagos in one year.

The Niger Delta Development Commission, NDDC, says it will soon commission the 9-kilometre Obehie/Oke-Ikpe Road in Ukwa West Local Government Area of Abia State, as part of its efforts to ensure the sustainable development of the Niger Delta region.

Speaking during an inspection of the road linking Abia and Akwa Ibom states, the NDDC Executive Director, Projects, Sir Victor Antai, said the Commission was making efforts to complete all its projects across the Niger Delta region.

The Executive Director, who was accompanied by other NDDC Directors and engineers, said several communities in the area would benefit from the project, which links Abia and Akwa Ibom States.

In a statement by Director, Corporate Affairs, Pius Ughakpoteni, he stated that NDDC would continue to embark on landmark projects that would make the Niger Delta region a destination of choice, adding that the road would increase the economic and social activities between Ukwa West people and their neighbours.

He commended the contractor for doing a good job, stating: “We are impressed with the level of work done by the contractor and I will like to commend him for a job well done. The asphalt overlay is of good quality and the drainage is solid. From what I have seen, in no time, I will urge the Managing Director to come in and commission this road.”

Antai commended the community for appreciating the efforts of the Commission, noting that the administration of President Bola Tinubu would continue to execute projects that would enhance the living conditions in the Niger Delta communities. .

The Executive Director, Projects had earlier addressed staff of the Abia State office, where he urged them to always put in their best towards the development of the Niger Delta region.

“I am happy with the administrative style of the Managing Director, Dr. Samuel Ogbuku. He is working in tandem with the Governing Board, to change the narrative of the NDDC and the Niger Delta.

“I want to encourage every staff of this Commission to be up and doing. It is important to monitor our projects to be sure that the contractors meet our set standards.”

In his remarks, the Representative of Abia State on the NDDC Board, Chief Dimgba Eruba, observed that the road had been in deplorable condition for many years, leading to loss of several man-hours, with the resultant negative effects on the socio-economic activities in the area.

Eruba noted: “The road provides a safe and preferable shortcut for our brothers and sisters in Imo, Ebonyi, Enugu, Cross River and Akwa Ibom states to Rivers and Bayelsa states.”

He observed that the road had been in deplorable condition for many years, leading to loss of several man-hours, with the resultant negative effect on the socio-economic activities of the area.