Marketers Begin to Import Petrol for Q1

Some oil marketing and trading (OM&T) companies that received import allocations for the first quarter of 2013 have started bringing in their cargoes of premium motor spirit (PMS). This development, which is coming amid increasing concern over the refusal of banks to give loans to some of the importers, however, has the potential to end the fuel supply shock experienced in the last couple of months.

The Petroleum Products Pricing Regulatory Agency (PPPRA) actually issued the allocations to the marketers in 2012 and not the beginning of 2013. The 32 participating companies are Nigerian National Petroleum Corporation (NNPC), Aiteo Energy, Ascon Oil, Avidor Oil and Gas, A-Z Petroleum, Bovas, Conoil Plc, Dee Jones Petroleum and Gas, Dozzy Oil and Gas, Folawiyo Energy, Fresh Synergy Ltd and Forte Oil Plc.

Others are: First Deepwater Discovery Ltd, Gulf Treasure Ltd, Heyden Petroleum, Ibafon Oil Ltd, Integrated Oil and Gas Industries, IPMAN Refining and Marketing Ltd, Mobil Oil Plc, MRS Oil & Gas Ltd, MRS Oil Nig. Plc, NIPCO Plc, Northwest Petroleum & Gas Ltd, Oando Plc, Obat Petroleum Ltd, RainOil Ltd, Rahamaniyya Oil Gas and Sahara Energy Ltd.

The list also includes Shorelink Oil Ltd, Swift Oil Ltd, Techno Oil Ltd and Total Nigeria Plc.

Fresh Subsidy scam: EFCC re-arraigns, Arisekola’s son, others

For the third time, Abdulahi, the son of the Ibadan based business tycoon,  Alhaji Abdulazeez  Alao Arisekola has been arraigned alongside four others in a fresh six-count N1.1 billion fuel subsidy scam.

Abdulahi was earlier arraigned before Justice Habeeb Abiru as well as Justice Adeniyi Onigbanjo on a nine count charge for subsidy fraud by the Economic and Financial Crimes Commission, EFCC, in July, 2012.

In this fresh six-count N1.1 billion theft charge brought against Alao,  he was accused alongside Opeyemi Ajuyah, Olanrewaju Olalusi and two companies; Majope Investment Limited and Axenergy Limited before Justice Lateefa Okunnu of the state  High Court, Ikeja. The defendants were arraigned on a six count charge bordering on conspiracy, obtaining by false pretence, forgery and uttering of  documents.

They were said to have conspired amongst themselves on February 14, 2011 to obtain the sum of N1,110,049,444.35  from the Federal Government of Nigeria by falsely claiming that the sum represented subsidy accruing to them under the Petroleum Support Fund, PSF, for the importation into Nigeria of 15,206.733 metric tons of Premium Motor Spirit (PMS), This according to EFCC is an offence contrary to Section 1 (3) of the Advance Fee Fraud and other Fraud Related Offences Act, 2006.

They all pleaded not guilty to the offences.  However, the court adjourned the case till  October 19, 2012 for hearing.

Fuel Subsidy Scam: EFCC Arraigns 13 Oil Marketers

The Economic and Financial Crimes Commission has arraigned eight more directors of oil marketing companies and five oil-marketing and trading firms before the Lagos High Court in Ikeja, for fuel subsidy fraud. Six directors and four companies were arraigned before Justice Habeeb Abiru on eight-count charges bordering on uttering, obtaining and falsifying documents. Two directors and an oil marketing firm were arraigned before Justice Lateefa Okunnu on 18-count charge bordering on uttering, obtaining and falsifying documents.

The directors and the companies arraigned before Justice Abiru separately in batches were Anosyke Group of Companies Ltd, Ifeanyi Anosike, Dell Energy Limited, Emeka Chukwu, Ngozi Ekeoma, Downstream Energy Sources Ltd, Alhaji Adamu Aliyu Maula, Rocky Energy Ltd, George Ogbonna and Emmanuel Morah, being the first batch. The EFCC accused them of fraudulently obtaining N1,537,278,880.82 from the federal government by falsely representing that the said sum represented subsidy accruing from the importation of 15,000 Metric tonnes of Premium Motor Spirit.

Similarly, also arraigned before Justice Abiru on an eight count charge for the second batch, were Downstream Energy Sources Limited, Alhaji Adamu Aliyu Maula, Rocky Energy Limited, George Ogbonna and Emmanuel Morah. They were also accused of fraudulently obtaining N789,648,329.25 from the federal government by falsely representing that the said sum represented subsidy accruing from the importation of 14,273,0227 litres of Premium Motor Spirit.

NUPENG, JAF Accuse FG of Plot to Increase Fuel Price

Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Joint Action Front (JAF) have alleged plot by the Federal Government to impose a new price regime for Premium Motor Spirit (PMS) otherwise known as petrol. Both groups in separate statements said the current scarcity being experienced across the country had led to a sharp increase in the price of fuel, which currently sells between N110 and N140 per litre as against the official price of N97.

NUPENG berated the Federal Government over its inability to address the scarcity of fuel stating that it could be another strategy by government to introduce deregulation of petroleum products through the back door. The union, in a statement issued by its Acting General Secretary, Mr. Isaac Aberare, argued that the reserve which the NNPC claimed could last for 45 days is a ruse as a litre of fuel now sells for over N110.00 due to persistent scarcity of the product. The union blamed the government for its current scarcity noting that repairs have not been effected at the vandalized pipelines at Arepo Ogun State due to the inability of the security agencies to recover the bodies of the Nigerian National Petroleum Corporation (NNPC) workers that were killed last month.

N8 billion Subsidy Claims: Integrated Oil petition PPPRA

Integrated Oil and Gas Limited through its legal firm, Tayo Oyetibo & Co. has written to the management of the Petroleum Products Pricing Regulatory Agency, PPPRA, over an outstanding claim of about N8.68billion owed the company for petroleum products importation under the Federal Government’s Petroleum Support Fund, PSF. In a 10-page letter tiled, “Demand for the Immediate Settlement of Outstanding Refunds Owed Integrated Oil and Gas Limited Under the Petroleum Support Fund Scheme,” the lawyers gave the breakdown of PPPRA’s indebtedness to its client to include:

i.    Outstanding Principal PSF refund  —N6.548 Billion

 ii.    PPPRA Advice not yet issued for Access Bank’s —N0.5 Billion balance cargo of Dec 2011.

 iii.    PPPRA’s earlier short payments on our claims —N0.98 Billion

 iv.    Outstanding Accrued Interest  —N0.651 Billion

The lawyers maintained that their client submitted a total of 38 documents for the claims verification, adding that “From the date our Client joined the operation of the PSF Scheme, it has dutifully and honestly performed its obligations by importing and supplying Premium Motor Spirit (PMS) to the Nigerian market based on the agreement it had with the PPPRA.” They further maintained that the inability of the PPPRA to honour its part of the agreements “has completely hampered our Client’s ability to honour the contractual obligations it owes to its financiers notably, Access Bank Plc.”