Nigeria Focus 06/13

>>>
Menas
Politically independent monthly news and analysis of strategic developments in Nigeria
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Energy industry 2
> Changes at the top
> OPL 321 and 323 dispute
> Total launches Egina
> Pipeline investment
> Panoro sells OML 113 stake
> CAMAC receives rig notication
Spotlight 1
> Minister focuses on marginal elds
Niger Delta 5
> Amaechi and Mbu in dispute
> Alarm over arms build-up
Politics & society 6
> APC names interim executive
> Mending fences?
> PDP appoints acting NWC
> Immigration chief appointed
> Jonathan toys with new strategy
Economy & nance 9
> Africas rst $20 billion man
> Afam and Kaduna bidders named
> Giving Nitel sale another shot
> Subsidy claims for 2013
Minister of Petroleum Diezani Allison-Madueke
is beginning a new initiative for a round of
marginal eld awards as the prospect fades that
the Petroleum Industry Bill (PIB) will be enacted
within the tenure of the current administration.
The initiative coincides with the appointment
last week of veteran indigenous companies and
local content expert George Abiodun Osahon
as the new director of the Department of
Petroleum Resources. Osahon replaces Osten
Olorunsola, who had struggled to organise
the marginal round amid disputes with licence
holders, incurring the wrath of Allison-Madueke,
the most powerful minister in the government.
The Ministry has shifted its priorities to favour
a marginal eld programme for 2014 because
time may be running out for the present
government to take advantage of key provisions
in the PIB.
Under the PIB 2012 version promoted by
Allison-Madueke, existing lease holders would
face a use-or-lose policy. One year after
enactment of the bill, undeveloped acreage
would be required to be surrendered to the
government for re-award after a year. Had
that version been passed by the House of
Representatives and Senate soon after its
introduction, the Ministry would have been
able to carry out a massive redistribution of oil
eld acreage, some of it onshore with known
discoveries.
The provision is particularly targeted at joint
ventures in which the Nigerian National
Petroleum Corporation (NNPC) is the majority
partner. Within NNPC there has been resistance
to the one-year timetable, and the NNPC
technical committee is seeking to change the
draft provision to two years after enactment,
which the Ministry opposes. Even with a two-
year limit, it is highly likely that NNPC joint
ventures would lose acreage, because the
corporation does not have the funds to explore
and develop on sufcient scale. The 2012 PIB
does nothing to resolve NNPC funding woes
the issue that originally spurred the bill.
For OMLs, within two years of the bill
enactment, companies are expected to convert
the following into separate PMLs:
>producing elds
>discoveries with development plans
>well discoveries within potential appraisal
areas
>signicant gas discovery areas.
The rest of the acreage would revert to the
Inspectorate pool and be converted into PPLs,
for which the erstwhile interest holder(s) can
apply with priority, subject to agreement on the
work programme.
As matters stand, the PIB is making little
progress in the Senate and neither it nor the
House of Representatives has the majority >>>
Minister focuses on
marginal elds as
PIB stalls
DIEZANI ALLISON-MADUEKE
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Spotlight 1 Niger Delta 5 Politics & society 6 Economy & nance 9 Energy industry 2
required to carry the bill. That could change, but
it would imply a sudden and signicant shift
in opinion, which is currently opposed not only
to the massive redistribution of oil eld assets
that would ensue but also to the proposed host
community tax.
Conceivably President Goodluck Jonathan
could bring back the PIB if re-elected in 2015,
but there is no guarantee on the outcome at
that time. Politics might dictate a change at the
Ministry of Petroleum and the legislature could
still be hostile.
So the marginal eld round is where current
interest lies. It is not without its problems,
however: out of the 24 marginal elds awarded
under the 2003 round, only 8 have some
production not a stellar track record.
Politics will nevertheless probably ensure there is
some kind of round. With elections approaching,
the government is seeking big favours.
ENERGY INDUSTRY
Changes at the top
President Goodluck Jonathan has approved the
appointment of George Abiodun Osahon as the
new director of the Department of Petroleum
Resources (DPR), replacing Osten Olorunsola,
who has headed it since 2011. There have
been other changes in the petroleum industry
administration and more are said to be
imminent.
Some observers have noted that the
redeployment of the Ministry of Petroleum
Resources permanent secretary, Abdulazeez
Musa, whose daughter recently married the son
of well-connected billionaire oil magnate Jide
Omokore in Dubai, may not be unconnected to
the administrations displeasure at the opulence
displayed at the wedding.
It is indeed curious that most of those
recently affected by changes at the helm of
the petroleum sector were in attendance,
Olorunsola among them.
Bola Ahmed Tinubu and some other opposition
leaders were in Dubai at the same time and
even stayed at the hotel where most of the
wedding guests were lodged. They were said to
have gone to Dubai to hold a strategic meeting.
From there, Tinubu proceeded to the United
Kingdom, where he attended a Chatham House
event and delivered a very scathing speech on
the excesses of the federal government under
Jonathan.
The presidency was apparently not very happy
that the wedding of a public servant in a core
ministry had created fodder for the opposition.
Interestingly Minister of Petroleum Resources
Diezani Allison-Madueke, who has been
closely linked with Omokore, the father of the
bridegroom, opted to attend the wedding of
the daughter of former Rivers State governor
Peter Odili in Abuja on the same weekend. The
president was also in attendance.
Meanwhile, sources reveal that both Bamanga
Tukur, the national chair of the Peoples
Democratic Party (PDP), and Edwin Clark, a
respected elder of the Ijaw tribe and close
condant of the president, are pushing for a
change in the Ministry of Petroleum Resources.
Specically, they are said to be lobbying for the
removal of Allison-Madueke.
Some of those apparently being considered for
the post are Minister for Aviation Stella Oduah
and Minister for Niger Delta Affairs Godsday
Orubebe. Industry insiders consider both to be
far worse than Allison-Madueke.
At the helm of the NNPC
Other changes seem imminent in the Nigerian
National Petroleum Corporation (NNPC), in
particular among group executive directors. >>>
>>>
Menas Associates
Nigeria Focus is published monthly
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Produced by Menas Associates staff
Managing Director: Charles Gurdon
Production Editor: Blakeley Words+Pictures
ISSN 1477-2426
2013All rights reserved
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For instance, GED of corporate services Peter
S. Nmadu has retired and Hamman Ahamdu
Sambo, the managing director of NNPC
pensions, has been acting in his stead. GED
for reneries and petrochemicals Anthony
Ogbuigwe is also due for retirement but it has
been resolved that he will not be let go until the
turnaround maintenance of reneries in Nigeria
has been completed.
Haruna Momoh, the managing director of the
Petroleum Products Marketing Company
(PPMC), may be appointed as the new GED
for commerce and investments, and Musa
Bamanga may become the substantive GED for
corporate services. Faruk Ahmed is apparently
also billed to return as managing director of the
PPMC.
OPL 321 and 323
dispute
The Korea National Oil Corporation (KNOC)
has engaged the services of American law
rm Covington and Burling to serve as
mediator in a dispute over the allocation of oil
prospecting licences (OPLs) 321 and 323. The
rm has already contacted all parties involved:
Emmanuel Ojei and his NJ Exploration, Tulip
Energy Resources Nigeria, and Oando/
Equator Exploration.
In a bid round in August 2005, a consortium
comprising Indian ONGC Videsh and Equator
Exploration submitted winning bids for the
two OPLs. The bids included signature bonuses
totalling US$485 million. Nevertheless, KNOC
exercised a right of rst refusal granted to it in
recognition of its commitment to implement a
downstream project. After discussion among
all parties, KNOC was awarded a 60 per cent
interest in the blocks and appointed as operator.
A 30 per cent interest was awarded to the
ONGC group and the remaining 10 per cent to
local content vehicles (LCVs) Tulip Energy for
OPL 321 and NJ Exploration for OPL 323.
ONGC declined its part of the award, allowing
Equator to take the allocated share. The
government of Nigeria and KNOC consented
to this, and Equator paid the government
US$161.7 million, a one-third share of the
signature bonuses.
In December 2008, however, the federal
government under Umaru Musa YarAdua
revoked the award of the blocks to KNOC,
igniting a legal battle that still persists.
In 2009, Oando acquired a majority interest
in Equator. The acquisition jumpstarted an
out-of-court settlement process for the blocks
but it has not been concluded yet. KNOCs
appointment of Covington and Burling is the
latest in a long line of attempts to bring the
almost eight-year dispute to an end.
Total launches Egina
Frances Total announced on 21 June that its
subsidiary Total Upstream Nigeria Limited
(TUPNI), operator of oil mining lease (OML)
130, and its co-venturers have obtained the
necessary approvals from Nigerian National
Petroleum Corporation (NNPC) to award the
main EPC contracts for the development of the
offshore Egina eld. The company is looking to
invest $15 billion.
The eld, discovered in 2003, is located in
water depths of around 1,600 m some 200 km
offshore Port Harcourt and 20 km southwest of
the Akpo eld, located on the same licence.
Egina is the second development of the OML
130 licence. Following Akpo, which was brought
on stream in 2009, it will add signicant value
to the partnership. With more than 21 million
man hours of local work, the project will make
a material contribution to the development of
Nigerian economy. After more than 50 years in
the country, we are condent that Nigeria will
continue to provide a suitable framework to
promote investments, commented Yves-Louis
Darricarrire, president of upstream at Total.
The eld development plan calls for 44 wells
connected to a 330 m oating production,
storage, and ofoading (FPSO) vessel with
a storage capacity of 2.3 million barrels. The
design of the FPSO includes capacity for future
development of nearby discoveries. First oil
is expected end-2017, with output reaching
200,000 b/d at plateau.
On 25 June, it was announced that TUPNI
had awarded a $3 billion contract for sub-sea
development of Egina to oil and gas industry
contractor Saipem. The subsidiary of Italian
oil giant Eni will carry out engineering,
procurement, fabrication, installation, and
pre-inauguration of 52 km of oil production and
water injection ow-lines.
The deal will also provide 12 exible jumpers,
20 km of gas export pipelines, 80 km of
umbilicals, and the mooring and ofoading
systems, with installation work to be carried out
in 2016 and 2017. Most of the fabrication work
will be done at Saipems Rumoulumeni Yard in
Port Harcourt, Rivers State, in line with Nigerian
local content requirements.
This very large contract conrms the leading
role of Saipem in the deep water activities and
in Nigeria, said a company statement. Saipem
[has been] present since the late 1960s and
has been involved in all the countrys major
developments as one of the few international
contractors able to operate maximising the local
content, ensuring business sustainability and,
therefore, fullling the country requirements.
The contract to build a new FPSO vessel for
Egina was recently awarded to South Koreas
Samsung Heavy Industries.
TUPNI has a 24 per cent interest alongside OML
130 partners NNPC, South Atlantic Petroleum
(Sapetro), China National Offshore Oil
Corporation (CNOOC), and Brazilian Petrobras.
Petrobras is looking to sell its equity in the
lease.
Panoro sells OML 113
stake
Panoro Energy ASA has announced that its
wholly owned subsidiary Pan-Petroleum Aje
Limited has entered into a sale and purchase
agreement (SPA) of US$30 million with >>>
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Lekoil 113 Nigeria Limited for the sale of
Panoros 6.502 per cent participating interest in
the offshore OML 113 licence.
Lekoil 113 is a subsidiary of Nigerian-owned
Lekoil Limited, which is listed on the London
Stock Exchange AIM.
Under the terms of the SPA, Lekoil 113 is
required to provide a US$3 million bid bond for
the transaction within 5 business days. Within
90 days, it is required to deposit into an escrow
account the cash consideration of US$30 million
plus certain costs incurred from 1 January 2013.
Once these funds have been deposited by the
buyer, Pan-Petroleum Aje will seek government
approval for the transaction and other required
consents.
In the interim, Panoro will continue to service
licence and joint venture commitments and in
parallel, the buyer will be required to service
the escrow account by the same amounts. On
completion of the transaction, the consideration
and working capital adjustment is to be
released to Pan-Petroleum Aje from the escrow
account.
OML 113, in which the Aje eld is located, is
operated by Yinka Folawiyo Petroleum (YFP)
and lies in the extreme western part of offshore
Nigeria, adjacent to the Benin border. OML 113
has other exploration prospects in addition to
Aje.
Aje eld was discovered in 1997, in water
depths ranging from 100 to 1,500 m. Unlike
the majority of Nigerian elds, which are
tertiary sandstones, Aje has multiple oil, gas,
and gas condensate reservoirs in the Turonian,
Cenomanian, and Albian sandstones, and as
such has more afnity with the recent Jubilee
and Tweneboa discoveries offshore Ghana.
Four wells have been drilled to date in Aje.
Aje-1 and -2 tested oil and gas condensate at
high rates. Aje-4, drilled in early 2008, logged
signicant pay and conrmed the presence of
four productive reservoirs. Aje eld has full 3D
seismic coverage. The Aje development is being
managed by Chevron, as technical adviser to
YFP.
There is a unique gas sales opportunity
available to the partnership, which also includes
Vitol and Providence Resources, via access to
the West Africa Gas Pipeline (WAGP). The WAGP
was commissioned in May 2009 to provide
Nigerian gas to end users in Benin, Togo, and
Ghana and is routed directly through OML 113,
only 5 km from the Aje eld.
The location of Aje just 43 km southwest of
Lagos may also provide a ready market for gas
and associated LPGs.
CAMAC receives rig
notication
Houston-based CAMAC Energy has announced
that its afliate Allied Energy Plc has received
the required notication of the proposed
assignment date of the Sedneth 701 rig, under
a previously announced deed of assignment
with a subsidiary of Transocean Limited
and the Nigerian Petroleum Development
Corporation (NPDC) itself a subsidiary of the
state-owned Nigerian National Petroleum
Corporation (NNPC).
The proposed date of assignment is 6 July.
NPDC will assign the rig to Allied for 60 days,
during which Transocean personnel will
continue to operate. Oyo well no. 7 drilling
operations are expected to begin immediately
following the assignment.
According to CAMAC senior vice-president of
exploration and production Segun Omidele,
With the rig assignment date set, we can now
focus on making our nal preparations to spud
the Oyo well no. 7 in July with the objectives
of increasing production from the Pliocene
and exploring the potential of the deeper
Miocene. >>>
Pipeline investment
The Shell Petroleum Development Company of Nigeria (SPDC) has concluded plans to invest
$3.9 billion on the Trans-Niger Pipeline Loop-line (TNPL) and GbaranUbie Phase II projects.
Shell is the operator of the joint venture with the Nigerian National Petroleum Corporation
(NNPC).
SPDC managing director Mutiu Sunmonu said, Todays announcements demonstrate our long-
term commitment to Nigeria by clearly signalling our intent for the strategic direction of Shell in
Nigeria. These investments will help to secure energy supplies for domestic and international
markets. The TNPL project demonstrates the tangible steps SPDC and its partners are taking to
tackle the scourge of criminal activity pipeline sabotage and crude theft in the Niger Delta
which is the cause of so much environmental and economic damage in this region.
The TNP is important for Nigeria, he asserted, as it pumps some 180,000 b/d of crude oil to
the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure, crucial for
continued domestic power generation (Afam VI power plant) and liqueed gas exports.
Total capital investment for the TNPL project bundle is expected to be $1.5 billion.
Sections of the TNP had been heavily affected by sabotage and crude oil theft. The design
of the TNPL includes improvements that make the pipeline better protected against crude oil
theft and sabotage, Sunmonu said, which should help to reduce pollution related to criminal
activity which was a key aspect of a 2011 United Nations Environment Programme (UNEP)
report on Ogoniland.
>>>
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NIGER DELTA
Amaechi and Mbu in
dispute
The simmering tension between Rivers
State Governor Rotimi Amaechi and state
commissioner of police (CP) Jospeh Mbu is
threatening to affect the already declining
security of the state.
Recently, matters came to a head when Mbu
accused Amaechi of being a tyrannical dictator.
Mbu was reacting to a statement credited to
Amaechi, implying that Mbu was incapable of
tackling the growing spate of kidnappings and
robberies in the state.
Mbu responded, The ofce of the governor is a
respected ofce. Sometimes, silence is golden
but sometimes it is misconstrued. I have respect
for Governor Amaechi but his attacks on me
are going beyond bounds. Our governor is very
tyrannical; he is a dictator. He wants everybody
to say Yes, sir to him and I said I will not say so.
I am a professional. The governor should please
stop playing politics with my name. I will tell
the whole world why the governor is against
me in the next interview. I will also tell you the
crime rate before I came to Rivers and what the
situation is now.
Amaechi for his part has vowed to lead a protest
march against Mbu, daring the commissioner
to shoot him if he can an allusion to an earlier
warning by the CP that no marches, rallies, or
other street protests can take place without
police approval.
Amaechi made this declaration of bravado on
25 June while receiving a delegation from the
Orashi region, comprising Abua/Odual, Ahoada
East, Ahoada West, and Ogba/Egbema/Ndoni
local government areas. The solidarity visit to
the state capital was led by Senator Wilson Ake
of the Rivers West senatorial zone, who claimed
that the commissioner of police had mobilised
forces to stop them from entering Port Harcourt
for the visit.
Reacting to the information, an enraged
Amaechi declared, You should have recorded
the incident so that we could show to the
world how much of a tyrant our commissioner
of police is. The commissioner cannot say he
banned protests (assuming you were coming
to protest) when it is part of your fundamental
human rights and fundamental human rights
are there in the constitution. So his order is now
superior to the constitution? And he stopped
people who want to merely express their views.
We have been suffering. We are now in a police
state in Rivers State if they block the entire
Orashi region [of] more than a million persons
And all the police put together in Rivers State
are not more than 17,000 and with their guns
they tried to stop you.
What you showed them is what we call
peoples power. That you came out despite the
fact that the police blocked the roads, looking
for persons in buses; that you still passed
them and got to this place means that you are
stronger and more courageous than me.
We are looking for a date to demonstrate
against what the federal government and the
commissioner of police are doing in Rivers State.
We have told our chiefs to get ready. Once we
get a date from people overseas and in Nigeria
who will join us, we will give you the date.
Amaechi attributed the crisis rocking the state
to his resolve to protect its oil wells and to
stand on the side of the people against those
from outside the state who wished to hijack its
resources.
Part of the ght we are having now is over our
resolve to protect our oil wells, he declared.
There are politicians who have not been part
of government, and [as a result] poverty has
set in.
The governor alluded to the role of the minister
of state for education and his former chief of
staff, Nyesom Wike, in the crisis bedevilling the
state. Wike, who used to be an Amaechi loyalist
and was in fact nominated for his ministerial
position by the governor, has since turned his
back, siding with the presidency in this apparent
battle for supremacy.
Amaechi noted, Our brothers who have
gathered in Abuja have been hijacked by
those who are not from Rivers State to cause
confusion in the state using just one weapon:
non-inclusive government.
He also made reference to the rumoured
ambitions of Wike to succeed him as governor,
making known his lack of support for the
idea. We will stop them. They can bring 20
commissioners of police, they can bring 20
Mbus, but the peoples power will resist them
the way you did this morning, he promised.
The face-off between Amaechi and Mbu has
been attributed to Amaechis woes with the
presidency. Instead of receiving directions
from Amaechi in his capacity as chief security
ofcer and governor, Mbu has apparently been
receiving instructions directly from the powers
that be in the Federal Capital Territory.
Alarm over arms
build-up
An ex-agitator in the Niger Delta region,
Kennedy West, has raised the alarm over
the heavy arms build-up there, warning that
another spate of violence could break out if
nothing is done. He called on UN Secretary-
General Ban Ki-moon and US President Barack
Obama to put pressure on President Goodluck
Jonathan to embark on the second phase of the
disarmament programme.
During a recent press conference West, who
describes himself as president of the Association
for Non-Violence in the Niger Delta >>>
RIVERS STATE GOVERNOR ROTIMI AMAECHI
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(ANND), remarked, When the late president
[Umaru Musa] YarAdua gave the Niger Delta
militants amnesty, we members of the ANND
made it known that there are a lot of renegades
who do not believe in the amnesty programme.
These people carted away the huge arsenals of
their bosses. For instance, John Togo we knew
how John Togo cartxxxxxxxed away the arsenal
of Tompolo [Government Ekpemekpulo]. He
became a renegade and later died.
There are other militant camps in the Niger
Delta where the same thing has happened. We
want to tell you that the [quantity of] arms in
the region is greater than what people think.
The arms now are twice what the militants from
various camps submitted in 2009 under the
amnesty programme.
Therefore, we are pleading with the secretary-
general of the United Nations, Ban Ki-moon,
we are pleading with Barack Obama, to impress
on President Goodluck Jonathan to do the nal
phase of disarmament in the Niger Delta, or else
there will be a problem.
West stated that the rise in oil theft despite a
pipeline surveillance contract awarded to some
former militant leaders was directly traceable
to the heavy arms build-up, and warned that if
things get out of hand, the Joint Task Force (JTF)
may not be able to contain the situation.
POLITICS & SOCIETY
APC names interim
executive
The new opposition forming under the aegis of
the All Progressives Congress (APC) has nally
named its interim national executive following
long months of negotiations and lobbying
among the parties involved in the merger:
the Action Congress of Nigeria (ACN), the All
Nigeria Peoples Party (ANPP), the Congress for
Progressive Change (CPC), and a faction of the
All Progressives Grand Alliance (APGA)
Coming to a consensus proved difcult as each
party attempted to hold on to some modicum of
power, for the fear of being sidelined within the
larger APC.
The submission of a request for registration to
the Independent National Electoral Commission
(INEC) made it imperative, however, for the
parties forming the APC to agree to an interim
executive. One of the requirements for
registration as a political party is the submission
of a list of core members of the national
executive.
On 24 June, after a long meeting, the parties
announced the interim national executive. As
was widely expected, ACN national chair Bisi
Akande was named national chair. Akande is
said to have received the backing of two key
gures, ACNs Bola Tinubu, and CPCs General
Muhammadu Buhari.
Tijani Tumsah, the incumbent ANPP national
secretary, was named interim national secretary
for APC. This move was apparently aimed at
placating ANPP, which had previously claimed
that it was being sidelined in the merger
negotiations. Former minister of the Federal
Capital Territory Nasiru El-Rufai of the CPC was
named deputy national secretary.
Former speaker of the House of
Representatives Aminu Bello Masari of the
CPC was named interim deputy national chair
(northwest). The minister of foreign affairs
during the Sani Abacha administration, Tom
Ikimi of the ACN, was named national deputy
chair (southsouth). Former Ekiti State governor
Niyi Adebayo of the ACN was named national
deputy chair (southwest). From APGA, Senator
Annie Okonkwo was named national deputy
chair (southeast).
ACN national legal adviser Muiz Banire was
named national legal adviser. ACN national
publicity secretary Lai Mohammed was also
retained as the national publicity secretary of
APC.
Other interim positions are as follows:
> Abdullahi Aboki national deputy chair
(north-central)
> Salisu Fagge national deputy chair
(northeast)
> Sadiya Farouq national treasurer
> Sharon Ikeazor national womens leader
> Abubakar Lado national youth leader
> James Ocholi national deputy legal
adviser
> Bala Jibrin national deputy auditor
> Emma Eneukwu national welfare secretary
> Shuaibu Musa national nancial secretary
> Munire Musa ex-ofcio member
> Yemi Sanusi ex-ofcio member.
Mending fences?
Nigerias ruling Peoples Democratic Party (PDP)
is making frantic efforts to mend fences and put
its house in order, following months of turmoil
and dissent within the top echelons of its
membership.
The party, and its leadership in particular,
has been embroiled in several disputes with
members, the most prominent of which have
involved the somewhat unpopular choice of
national chair, Bamanga Tukur.
Tukur, who enjoys the backing of President
Goodluck Jonathan, lacks national support,
and attempts to oust him by virtue of his
geopolitical allegiance to the northeast zone
emerged more or less from the beginning of his
tenure. >>>
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Tukurs travails
On 17 March 2012, a mere week before the
PDP national convention at which Tukur was
to be anointed national chair, his home zone
held its zonal congress and declared that Musa
Babayo, a crony of Bauchi State Governor Isa
Yuguda, had been elected as its representative
in the contest for PDP national chair. Tukur, it
was announced, had lost by a landslide, polling
2 votes to Babayos 14.
A suit instituted by some aggrieved PDP
members, led by the now infamous Ikenga
Imo Ugochinyere, also challenged Tukurs
candidacy, citing several reasons for his
unsuitability.
In spite of the obstacles, Tukur became national
chair on 24 March 2012. But the past year
has seen several upheavals in the partys top
echelons. Inghting and tension have been
reported between Tukur, his aides, and the
erstwhile national secretary of the party, former
Osun State governor Olagunsoye Oyinlola. This
reportedly led to Tukurs dismissal of his chief of
staff, Habu Fari, who was accused of usurping
the powers of members of the partys national
working committee (NWC).
A few months later, Oyinlola himself was
removed as national secretary, following a
court order declaring that he and several other
NWC members from the southwest zone had
not been properly elected. This was widely
viewed as a slap in the face of former president
Olusegun Obasanjo, as the affected members
were all Obasanjo loyalists.
The Amaechi angle
As this was going on, other feuds were
emerging, all of which have been said to involve
Tukur in more ways than one.
Tukur and Adamawa State Governor Murtala
Nyako, for example, are at loggerheads over
who will succeed Nyako when he rounds up his
tenure. Nyako is said to be angling for his son to
succeed him, while Tukur wants his own son to
get the post.
There is also the still on-going feud between
Rivers State Governor Rotimi Amaechi and
President Jonathan over the rumoured ambition
of the former for a vice-presidency slot on a
ticket with a northern presidential candidate:
an arrangement that is widely at variance with
Jonathans intention to contest in 2015.
Amaechi is rumoured to be in cahoots with
Jigawa State Governor Sule Lamido, Kano State
Governor Rabiu Musa Kwakwanso, and Niger
State Governor Babangida Aliyu. All three are
said to have designs on the presidency.
The feud between Amaechi and Jonathan
spiralled almost out of control, with Tukurs
very visible hand working behind the scenes to
orchestrate events in support of his benefactor
the president.
In a bid to check what was perceived as
Amaechis growing inuence, especially with
opposition party governors, Tukur and Akwa
Ibom Governor Godswill Akpabio formed the
PDP Governors Forum (PDP-GF). This was
apparently an attempt to water down Amaechis
inuence in the Nigerian Governors Forum
(NGF), over which he presided as chair.
Of the 36 state governors, 23 are PDP and 13
are from the opposition, as follows:
> Action Congress of Nigeria (ACN) 6
> All Nigeria Peoples Party (ANPP) 3
> All Progressives Grand Alliance (APGA) 2
> Congress for Progressive Change (CPC) 1
> Labour Party (LP) 1.
Even though PDP has the majority of governors,
however, the dissent within its ranks hasnt
allowed the PDP-GF to meet its objectives.
Some PDP governors Jigawas Lamido, Kanos
Kwakwanso, Nigers Aliyu, and Sokotos Aliyu
Wamakko have showed open support for
Amaechi, so the PDP-GF didnt get quite the
majority it was seeking.
A damning report
As the JonathanAmaechi feud was unfolding,
the PDP was blindsided by a report of the
Independent National Electoral Commission
(INEC) on the propriety or otherwise of its
March 2012 convention to select its national
executive: the NWC. The report, which was
released on 8 April, over a year after the
convention, called into question the election of
12 of the 16 committee members.
The INEC report held that the 12 members were
not validly elected because they ran unopposed
and without any votes being cast. The report
upheld Tukurs election, however, because even
though he was unopposed, votes were actually
cast to conrm his nomination.
This report caused no small measure of
upheaval. Some aggrieved PDP members asked
that the court enforce the report and remove
the affected NWC members.
A forum fracas
PDPs travails came to a head following a
scandal that broke after the NGF election as
two camps of PDP governors emerged, each
claiming to have been validly elected: one led
by the renegade Amaechi, and one ostensibly
led by Plateau State Governor Jonah Jang but
more likely orchestrated by Akpabio.
The fracas would inadvertently lead to the
suspension of Amaechi from the party and
rumours of an attempt to impeach him. Though
PDP denied that Amaechis suspension had
anything to do with the NGF election, its action
belied its words.
It is widely regarded as no coincidence that the
suspension came on the heels of the election
asco, especially considering that the action for
which PDP claims Amaechi was suspended was
not actually carried out by him but the Rivers
State House of Assembly. >>>
BAMANGA TUKUR
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Suspension for Wamakko
Barely a week after Amaechis suspension,
Sokoto State Governor Aliyu Wamakko was also
suspended from the party, apparently on the
orders of Bamanga Tukur.
Speculation was then rife that next in the
ring line would perhaps be Aliyu of Niger
State (supposedly for his rumoured presidential
ambitions, his revelation that Jonathan had
signed an agreement with governors not to
contest the presidency in 2015, and his tacit
support of Amaechi), along with House of
Representatives Speaker Aminu Tambuwal,
who has been accused of hobnobbing with the
opposition.
It has also been rumoured that Tambuwal was
planning to decamp to the opposition mega-
party All Progressives Congress (APC) as soon
as the registration process had been completed.
Tambuwal himself stoked the speculation when
he openly derided the PDP leaderships decision
to suspend Wamakko (Tambuwal and Wamakko
are from the same state) and participated
in an elaborate welcome motorcade for
Wamakko when he returned to his state shortly
thereafter.
Both men made deant statements such as We
will not be intimidated. Tambuwal asserted,
The purported suspension is of no effect and
there is no retreat or surrender ... Wamakko will
continue to be our leader even after he has
nished his term as a governor.
No more Mr Fix-It?
Attempts by PDP to reconcile its fractured
membership across the country have not
yielded desired results. If anything, the PDP
reconciliation tour across the six geopolitical
zones proved to be a massive op, recording
poor attendance throughout the country.
Perhaps it did not help that the reconciliation
train was being steered by Bamanga Tukur, a
man perceived by most to be at the crux of the
partys problems.
Not even efforts by the new chair of the partys
Board of Trustees, Tony Anenih, have quelled
the crisis, although his renown at xing pesky
political issues has earned him the sobriquet Mr
Fix-It.
Desperate measures
With the opposition party merger under the
aegis of the All Progressives Congress (APC)
picking up steam, however, the party has had
to do some thorough introspection and make
serious moves to arrest the downward spiral.
The presidency set up a committee headed by
Secretary to the Government of the Federation
(SGF) Anyim Pius Anyim to respond to the INEC
report. The committee submitted its report
to the presidency and recommended that all
affected NWC members resign immediately
and a new national convention be held to elect
members properly.
In keeping with the recommendation, the
members resigned ahead of the partys long-
awaited National Executive Council meeting in
Abuja on 20 June, leaving only national chair
Bamanga Tukur, who continues to enjoy the
solid backing of the president.
Furthermore, the party rescinded the decision
to suspend Wamakko and recalled him to the
party. This decision was apparently brokered
by Akpabio. The suspension of Amaechi still
stands, however, and the party has stated
that this is largely because he has led a suit
challenging it.
Akpabio has nonetheless said that the PDP-GF
will attempt to seek an out-of-court settlement
with Amaechi and work towards his recall.
PDP appoints acting
NWC
The Peoples Democratic Party (PDP) on 20 June
named former deputy speaker of the House of
Representatives Chibudom Nwuche to replace
deputy national chair Sam Jaja, who was sacked
at a meeting at which nearly 20 executive
members the national working committee
(NWC) also resigned.
The party passed a vote of condence on
President Goodluck Jonathan and retained
national chair Bamanga Tukur, outing
predictions that governors disgruntled by the
party leadership might seek Tukurs removal.
The National Executive Council (NEC) meeting
had been delayed for more than a year amid fears
the governors would seize an opportunity to pass
a vote of no condence on the chair, who enjoys
little support beyond that of the president.
The NEC meeting was not attended by
Governors Sule Lamido of Jigawa State,
Murtala Nyako of Adamawa, Gabriel Suswam
of Benue, Martins Elechi of Ebonyi, Sullivan
Chime of Enugu, or Ibrahim Shema of Katsina.
No reason was given for their absence, and
Lamido and Shema sent their deputies. Rivers
State Governor Rotimi Amaechi, who is
currently suspended, was also absent.
Ofcially, the party says that the NWC members
stepped down in response to a report by the
Independent National Electoral Commission
(INEC) that faulted their elections. But insiders
say the restructuring is informed by the
presidents effort to gain more control of the
party ahead of a re-election bid in 2015.
Members affected are the deputy national chair,
acting national secretary, national womens
leader, national treasurer, national youth leader,
eight deputies, and some ex-ofcio members
(see table on page 9).
The party announced it will hold a convention
on 15 July at which new ofcers will be properly
elected. The convention committee is headed
by former information minister Jerry Gana.
Akwa Ibom Governor Godswill Akpabio will
serve as the deputy. Deputy Senate President
Ike Ekweremadu is the secretary.
Immigration chief
appointed
On 10 June, the presidency announced the
appointment of David Paradang as comptroller
general (CG) of the Nigeria Immigration Service
(NIS). The announcement came >>>
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as a surprise, as most had expected acting
CG Rilwan Musa to get the post. Musa was
appointed acting CG following the sudden exit
of Rosemary Uzoma.
Paradang, who was an assistant comptroller
in charge of state coordination at the NIS
headquarters in Abuja, is an indigene of Plateau
State. His appointment has once again brought
to the fore accusations of northern alienation
under the administration of President Goodluck
Jonathan. Some northern politicians believe the
president is pursuing a strategy to divide and
conquer their region.
The way they see it, a Muslim northerner
(Rilwan Musa) has been sidelined in favour of
a Christian northerner from a minority tribe as
part of a deliberate policy to empower Christian
northern minority tribes with juicy government
appointments.
It has not escaped notice that two Christian
northerners from minority tribes have been
appointed back to back to head the Nigerian
National Petroleum Corporation (NNPC). The
immediate past NNPC group managing director
(GMD) Austen Oniwon was from Kogi State, in
the north-central zone. Current GMD Andrew
Yakubu is a Christian from southern Kaduna.
Quite apart from issues of tribal and religious
bias, however, Musa did not get along with
Minister for Interior Affairs Abba Moro
and apparently did not handle the conict
appropriately. A disagreement between the
minister and former CG Rosemary Uzoma
were reportedly part of the reason for her
unceremonious exit.
It is also said that that former head of state
General Yakubu Gowon (rtd) lobbied on behalf
of Paradang and was instrumental in his getting
the job.
Jonathan toys with new
strategy
According to insiders within the Nigerian
presidency, President Goodluck Jonathan
is working on a new strategy to overcome
growing political opposition to his
administration and especially to his plan to
stand for re-election in 2015. The strategy,
referred to as the New Majority in documents
circulating among the his advisers, is to build
a coalition between the southsouth and
southeast and Christian minority groups in
the largely Muslim north. One way to advance
the strategy, which has been discussed by the
president, is to appoint a number of Christian
leaders in the north to positions in the federal
government.
Northern Christian minority tribes will thus be
more amenable to Jonathan running again in
2015 and will not align themselves with the
core northern campaign to get a northerner for
president next time round.
ECONOMY & FINANCE
Africas rst $20 billion
man
A report by Forbes has named Aliko Dangote
as the rst person in Africa to hit the $20 billion
asset value mark. A report published on Forbes.
com website on 1 June indicated that Dangotes
status as the rst African entrepreneur to hit
such dizzying heights follows the exponential
rise in value of his largest company, Dangote
Cement.
The companys stock value has risen about 75
per cent since March and Dangotes 93 per cent
stake in Dangote Cement is now worth $19.5
billion. He also has controlling stakes in publicly
quoted companies such as Dangote Sugar and
the National Salt Company of Nigeria and
signicant shareholding in companies >>>

Acting NWC members
NAME POSITION
Chibudom Nwuche Acting Deputy National Chair
Remi Akintoye Acting National Secretary
Senator Emma Agboti Acting Deputy National Secretary
Yusuf Hamisu Abubakar Acting National Organising Secretary
Tony Ceaser Okeke Acting National Publicity Secretary
Simon D. Jok Acting National Legal Adviser
Tanko Beji Acting National Youth Leader
Oyibo Nwaneri Acting National Women Leader
Yau Kwadon Acting Deputy National Legal Adviser
Peter Adefunmilayo Acting Deputy National Youth Leader
Nasiru Ibrahim Birchi Acting Deputy National Auditor
Torkwase Ajoh Acting Deputy National Women Leader
Mohammed Dandari Acting National Treasurer
Onyemaechi Ikechukwu Jideofor Acting Deputy National Organising Secretary
Auwalu Gwalabe Acting Deputy National Financial Secretary
Augustine Lugbenwei Acting Deputy National Treasurer
Caleb Yahaya Acting Deputy National Publicity Secretary
Akin Taiwo Acting Ex-Ofcio
Tope Ademiluyi Acting Ex-Ofcio
Mike Akinfenwa Acting Ex-Ofcio
Gbenga Oduwaiye Acting Ex-Ofcio
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such as Zenith Bank, the UBA Group, and
Dangote Flour. An extensive real estate
portfolio and other assets and his current cash
position, which includes $300 million recently
paid as dividends from Dangote Cement,
constitutes the rest of his fortune.
Aliko Dangote thus now ranks among the 25
richest people in the world. He is wealthier
than Russias richest man, Alisher Usmanov,
and Indias Lakshmi Mittal and his fortune runs
parallel to Indias Mukesh Ambani. He is also
catching up with Googles billionaire founders
Larry Page and Sergey Brin.
The unprecedented surge in Dangote Cements
share price is attributed largely to market
response to impressive 2013 Q1 results.
Unaudited results for the quarter show pre-tax
prot of $339 million, an 80.6 per cent increase
over 2012 and a strong indicator of future
earning potential.
The results are also said to indicate a 79.5
per cent rise in earnings per share over the
corresponding period last year.
Carl Franklin, Dangote Cements head of UK
investor relations, revealed to Forbes that in
2013 Q1 the company saw a huge increase in
demand across Nigeria, gas supply improved
considerably, and capacity was ramped up.
Q1 was the rst sign of just how protable we
can be in Nigeria, said Franklin. The amazing
thing is that 66 per cent of our gas-red
production in Q1 was done at 84 per cent gas.
Imagine what would happen to margins if we
did the same amount at 95 per cent. This has
given investors a good sense of what we can
really do when everything goes in the right
direction.
Speaking about Dangote Cements current
market cap of $20.5 billion and its achievement
as the rst Nigerian company to achieve market
capitalisation of over $20 billion, he said, Its
certainly a landmark for a Nigerian company
and were proud to be the rst. Obviously
we are focusing on building long-term and
sustainable value for shareholders through our
investments in Nigeria and Africa. Nigeria is a
very entrepreneurial country and I can assure
you that other companies will follow us in
achieving this.
Dangote Cement currently accounts for more
than a quarter of the total market capitalisation
of the Nigerian Stock Exchange (NSE). The
second largest company on the exchange is
Nigerian Breweries, West Africas largest
manufacturer of alcoholic and non-alcoholic
beverages. The company has a market cap of
$8.5 billion.
Dangote debuted on the Forbes billionaires
list in 2008 with a fortune that was pegged
at $3.3 billion. That dropped to $2.5 billion in
2009 and plunged further to $2.1 billion in
2010. It then grew a staggering 557 per cent
in 2011 to $13.8 billion after he took Dangote
Cement public. He fell to $11.2 billion in last
years rankings but rebounded at $16.1 billion
this year. Since March, his fortune has jumped
another 30 per cent.
Afam and Kaduna
bidders named
The Nigerian federal government has
announced the list of preferred bidders for the
remaining two unbundled assets of the Power
Holding Company of Nigeria (PHCN), which
are being sold off as part of the governments
privatisation of the power sector.
On 27 May, Atedo Peterside, head of the
technical committee of the National Council
of Privatisation (NCP), announced that for the
Kaduna Distribution Company (DisCo), 7 out
of 11 bidders have scaled through the technical
evaluation stage and have been asked to put
forward a nancial bid.
The prequalied bidders for the Kaduna DisCo
are:
> Aiteo Consortium, led by Benedict Peters of
the Aiteo Group
> Axis Power Distribution Limited
> Copperbelt Consortium
> Incar Power Limited
> LEDA Consortium
> Nahco Consortium, led by Suleiman Yahaya
of the Rosehill Group of Companies
> Northwest Power Limited.
Incar Power was one of the entities in the
Sahelian Power SPV, which won the bid for
the Kano DisCo. It is said to be promoted by
Umbra Abdulmuttalab, former chair of First
Bank Nigeria and Dantata Investments and
Securities, owned by Aminu Dantata.
Northwest Power is led by Jamilu Gwamna
and Yusuf Hamisu Abubakar, both of whom
are close associates of Vice-President Namadi
Sambo, and also includes Kaduna-based
businessman Kashim Bukar.
All were also involved in the Sahelian Power
SPV. There they partnered with Turkish
electricity generation and distribution company
Kayeseri Ve Civari Elektrik T.A.S. (KCETAS).
They now have a new partnership with another
Turkish company for the Kaduna DisCo.
For the Afam Power Generation Company
(GenCo), 4 of the 9 companies that submitted
bids were successful and invited to the nancial
bid stage:
> Primeniza Energy
> Taleveras Group, led by Igho Sanomi of
energy trading rm Taleveras
> Forby Energy Limited
> TES Power Limited.
Explaining the bid process, Peterside stated
that for any bidder to scale through the
commercial bidding stage, it had to score
above 75 per cent. Stringent due process >>>
ALIKO DANGOTE
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measures were put in place to cross-check
information supplied by bidders, and if any
bidder supplied misleading information, it could
be disqualied even after being announced as
the bid winner.
Giving NITEL sale
another shot
The federal government has not given up
on the sale of the bankrupt state-owned
telecommunications company, Nigerian
Telecommunications Company (NITEL) and
its mobile arm, MTEL. The Bureau of Public
Enterprises (BPE) the agency responsible for
the privatisation of state-owned assets has
announced that three bidders have been invited
to put forward bids for NITEL/MTEL.
BPE director of public communications
Chigbo Anichebe revealed that following
National Council on Privatisation (NCP)
approval of the NITEL/MTEL privatisation
through a guided liquidation process, the
bureau received 35 expressions of interest
(EOIs) from prospective investors by the 14
August 2012 deadline.
After evaluation of the EOIs, eight investors
that scored above the 60 per cent threshold
were qualied to proceed to the request
for proposals (RFP) stage. Of the eight, only
ve then met the deadline for submission of
technical and nancial proposals. From the ve,
three have been invited to proceed to the next
stage.
This is the umpteenth time that the federal
government has tried to divest itself of the
moribund former telecommunications giant. All
previous attempts have been marred by one
controversy or the other.
The most recent attempt (before the guided
liquidation option was adopted) stalled in 2011
following the inability of either rst preferred
bidder New Generations Consortium or
reserve bidder Omen International to meet the
payment deadline for their bids.
Observers note, however, that the handwriting
should have been seen on the wall from
the outset because New Generations was
dogged by controversy over the status of
its partnerships with other companies. The
consortium had named China Unicom as one
of its technical partners but shortly after it
was announced as the preferred NITEL/MTEL
bidder, China Unicom dissociated itself from the
partnership.
It is hoped that the adoption of a guided
liquidation will end the jinx on the sale of the
state-owned telecommunication assets.
Subsidy claims for 2013
The Nigerian federal government has yet to pay
oil marketers/importers their subsidy claims for
the 2013 scal year, according to a statement
on 7 June by Reginald Stanley, executive
secretary of the Petroleum Products Pricing
Regulatory Agency (PPPRA), during a meeting
with the Senate Committee on Petroleum
Resources, Downstream.
Stanley attributed the delay to the marketers
inability to sort out foreign exchange claims at
the federal Ministry of Finance.
The federal government allocated 971.138
billion for fuel subsidy in the 2013 budget
and 888.1 billion in 2012. The allocation,
as captured on page xvii of the 2013 Budget
signed by President Goodluck Jonathan on 26
February, indicates that the 971.133 billion
is for domestic fuel subsidy (marketers) (carry-
over from 2011 and 2012 provision for partial
subsidy).
Between 2006 and August 2011, total
government expenditure on petroleum subsidy
amounted to 3.7 trillion. Expenditure on
subsidies increased from 261 billion in 2006
to 673 billion in 2010, which represents
an increase of about 160 per cent, Stanley
disclosed.
Additionally, there have been unprecedented
payments in 2011 that so far amounted to
1.4 trillion due, in part, to two key factors:
increase in subsidy per litre as a result of rising
global oil prices, and large arrears due NNPC for
household kerosene imports.
Stanley noted, however, that the PPPRA
had succeeded in cutting the number of oil
marketers from 142 to 38 as of December
2012. Local consumption of PMS has also been
brought down from 60.25 million litres/day in
2011 to 40 million litres.
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