Kachikwu asks NNPC, DPR, PPPRA bosses to reply Falana

The Minister of State for Petroleum Resources, Ibe
Kachikwu, has ordered the Group Managing Director, Nigerian
National Petroleum Corporation, Maikanti Baru; the Director,
Department of Petroleum Resources, Modecai Ladan; and Executive
Secretary, Petroleum Products Pricing Regulatory Agency, Saidu
Abdulkadir, to provide the information being sought by a human
rights lawyer, Femi Falana, SAN, on fuel importation and sundry
matters.

In his April 17, 2018 letter to the minister, Falana raised
several concerns about the oil industry and asked Kachikwu to
respond, pursuant to the Freedom of Information Act, adding that
“your reply should be received within seven days of the receipt of
this letter.”

Kachikwu told Falana in a letter dated April 21, 2018, with
reference number, HMS/MPR/085/VOL.1/389, which was made available
to our correspondent in Abuja on Wednesday, that he had directed
the chief executives of the NNPC, DPR and PPPRA to furnish the
lawyer with the information he requested, subject to the limits of
the firms’ contractual, legal and business confidentiality.

In the response, which was personally signed by Kachikwu, he
stated that he never said the Federal Government was spending
N1.4tn monthly as payment for under-recovery on Premium Motor
Spirit, popularly known as petrol.

He, however, commended Falana for seeking proper information on
the issue and stated that he had directed the heads of the selected
agencies under the Federal Ministry of Petroleum Resources to
furnish the lawyer with the requisite data.

Our correspondent observed that Kachikwu’s response to Falana
was copied to the heads of the three agencies, as their names and
designations were clearly outlined in the minister’s letter.

Kachikwu wrote, “I thank you for your continued interest in
seeking the proper information on this issue. I have forwarded your
letter to the GMD of the NNPC, the director of the DPR and the
executive secretary of the PPPRA, the corporation and agencies who
under their establishing laws are the managers of the Federal
Government’s downstream commercial business and the ones in the
best position to provide you with the correct data.

“I, therefore, have directed them, working through the GMD of
the NNPC, to furnish you with such information as you have
requested, subject to the limits of their contractual, legal and
business confidentiality.”

The PUNCH reported on April 18 that Falana had told the minister
that his (Kachikwu) daily petrol consumption claim was
untenable.

The lawyer had said, “In December 2017, the management of the
NNPC disclosed that the nation’s consumption rate of fuel was 28
million litres per day and that subsidy cost was N726m per day,
i.e., N261.4bn per annum. But on March 5, 2018, the Group Managing
Director of the NNPC, Dr. Maikanti Baru, claimed that the figure
had metamorphosed to 50 million litres per day and that the NNPC
had spent $5.8bn (N1.7tn) on fuel importation in January and
February 2018.

“Furthermore, at a public forum held in Abuja two weeks ago, you
(Kachikwu) stated that the consumption rate of fuel had skyrocketed
to 60 million and that the cost of subsidy was N1.4tn! We are not
unaware that the increasing consumption rate has been blamed on the
smuggling of imported fuel from Nigeria to neighbouring countries
by some economic saboteurs.

“Assuming without conceding that the story of smuggling is true,
the total volume of fuel consumed by Benin, Togo, Cameroon, Niger,
Chad and Ghana is said to be less than 250,000 litres per day. You
will agree with me that this does not explain the difference of 32
million litres per day between the consumption rate of imported
fuel in December 2017 and March 2018.”

But Kachikwu distanced himself from ever saying that
under-recovery on PMS was N1.4tn monthly, adding that the ministry
had also denied the statement.

The minister said, “Your request to me is predicated on a
statement purportedly credited to me to the effect that the Federal
Government is spending N1.4tn monthly on payment for under-recovery
on PMS. Let me, for the umpteenth time, state that I made no such a
statement and a previous rebuttal has clarified this. The
information you quoted is both incorrect and alarmingly
speculative.”

Other requests by the human rights lawyer, as contained in the
letter he sent to Kachikwu, included Bill of Laden and the DPR
certified Cargo Discharged Certificates of the imported subsidised
petroleum products into the country from December 2017 to March
2018; and Offshore Processing Agreements pertaining to the sale of
the 445,000 barrels of crude oil per day plus any additional crude
barrels approved for domestic consumption from December 2017 to
March 2018.

The Minister of State for Petroleum Resources, Ibe
Kachikwu, has ordered the Group Managing Director, Nigerian
National Petroleum Corporation, Maikanti Baru; the Director,
Department of Petroleum Resources, Modecai Ladan; and Executive
Secretary, Petroleum Products Pricing Regulatory Agency, Saidu
Abdulkadir, to provide the information being sought by a human
rights lawyer, Femi Falana, SAN, on fuel importation and sundry
matters.

In his April 17, 2018 letter to the minister, Falana raised
several concerns about the oil industry and asked Kachikwu to
respond, pursuant to the Freedom of Information Act, adding that
“your reply should be received within seven days of the receipt of
this letter.”

Kachikwu told Falana in a letter dated April 21, 2018, with
reference number, HMS/MPR/085/VOL.1/389, which was made available
to our correspondent in Abuja on Wednesday, that he had directed
the chief executives of the NNPC, DPR and PPPRA to furnish the
lawyer with the information he requested, subject to the limits of
the firms’ contractual, legal and business confidentiality.

In the response, which was personally signed by Kachikwu, he
stated that he never said the Federal Government was spending
N1.4tn monthly as payment for under-recovery on Premium Motor
Spirit, popularly known as petrol.

He, however, commended Falana for seeking proper information on
the issue and stated that he had directed the heads of the selected
agencies under the Federal Ministry of Petroleum Resources to
furnish the lawyer with the requisite data.

Our correspondent observed that Kachikwu’s response to Falana
was copied to the heads of the three agencies, as their names and
designations were clearly outlined in the minister’s letter.

Kachikwu wrote, “I thank you for your continued interest in
seeking the proper information on this issue. I have forwarded your
letter to the GMD of the NNPC, the director of the DPR and the
executive secretary of the PPPRA, the corporation and agencies who
under their establishing laws are the managers of the Federal
Government’s downstream commercial business and the ones in the
best position to provide you with the correct data.

“I, therefore, have directed them, working through the GMD of
the NNPC, to furnish you with such information as you have
requested, subject to the limits of their contractual, legal and
business confidentiality.”

The PUNCH reported on April 18 that Falana had told the minister
that his (Kachikwu) daily petrol consumption claim was
untenable.

The lawyer had said, “In December 2017, the management of the
NNPC disclosed that the nation’s consumption rate of fuel was 28
million litres per day and that subsidy cost was N726m per day,
i.e., N261.4bn per annum. But on March 5, 2018, the Group Managing
Director of the NNPC, Dr. Maikanti Baru, claimed that the figure
had metamorphosed to 50 million litres per day and that the NNPC
had spent $5.8bn (N1.7tn) on fuel importation in January and
February 2018.

“Furthermore, at a public forum held in Abuja two weeks ago, you
(Kachikwu) stated that the consumption rate of fuel had skyrocketed
to 60 million and that the cost of subsidy was N1.4tn! We are not
unaware that the increasing consumption rate has been blamed on the
smuggling of imported fuel from Nigeria to neighbouring countries
by some economic saboteurs.

“Assuming without conceding that the story of smuggling is true,
the total volume of fuel consumed by Benin, Togo, Cameroon, Niger,
Chad and Ghana is said to be less than 250,000 litres per day. You
will agree with me that this does not explain the difference of 32
million litres per day between the consumption rate of imported
fuel in December 2017 and March 2018.”

But Kachikwu distanced himself from ever saying that
under-recovery on PMS was N1.4tn monthly, adding that the ministry
had also denied the statement.

The minister said, “Your request to me is predicated on a
statement purportedly credited to me to the effect that the Federal
Government is spending N1.4tn monthly on payment for under-recovery
on PMS. Let me, for the umpteenth time, state that I made no such a
statement and a previous rebuttal has clarified this. The
information you quoted is both incorrect and alarmingly
speculative.”

Other requests by the human rights lawyer, as contained in the
letter he sent to Kachikwu, included Bill of Laden and the DPR
certified Cargo Discharged Certificates of the imported subsidised
petroleum products into the country from December 2017 to March
2018; and Offshore Processing Agreements pertaining to the sale of
the 445,000 barrels of crude oil per day plus any additional crude
barrels approved for domestic consumption from December 2017 to
March 2018.