Photos: Kate Henshaw stuns for Made Magazine new issue

Actress Kate Henshaw is the cover girl for the new issue of Made magazine in stunning photos shot by famed photographer, Paul Ukonu. More photos after the cut..

Photos: 100 killed after Indonesian military plane crashes into residential area

No fewer than 100 people were killed after an Indonesian military plane, C-130 Hercules carrying 113 passengers crashed into Medan, the third largest residential area in Indonesia.

According to Indonesia's Air force chief, Air Marshall Agus Supriatna, the pilot told the control tower that the plane needed to turn back because of engine trouble. "The plane crashed while it was turning right to return to the airport," Supriatna said.

Also speaking, police chief of Medan city Mardiaz Dwihananto, said several bodies had been recovered from the wreckage.

"The bodies were in the debris of the plane and buildings...we are taking the bodies one by one by ambulance to Adam Malik hospital. We haven't managed to evacuate all of the bodies," Dwihananto said.

The C-130 accident is the second time in 10 years that an airplane has crashed into a Medan neighborhood.

In September 2005, a Mandala Airlines Boeing 737 crashed into a crowded residential community shortly after takeoff from Medan's Polonia airport, killing 143 people including 30 on the ground. Medan, with about 3.4 million people, is the third most populous city in Indonesia after the capital, Jakarta, and Surabaya.

More photos: BVN palaver around Nigeria...(photos)

Last minute rush around Nigeria...more photos after the cut...

Full Details Of The Powerful Forces Behind APC Crisis

After winning the last presidential election, monitors say the crisis currently rocking the All Progressives Congress (APC) was expected given its popular tag as a “marriage of strange bedfellows”. EDEGBE ODEMWINGIE reports that the crisis is fueled by a supremacy battle among three political power blocs struggling to shape the workings of the present administration vis-à-vis political posturing towards 2019

The defeats suffered by the ‘anointed’ candidates of the ruling All Progressives Congress (APC) in the June 9 National Assembly elections highlighted the major cracks in the political party coalition that brought President Muhammadu Buhari to power last month.

Despite APC holding majority seats in the Senate and House of Representatives, candidates backed by the opposition Peoples Democratic Party (PDP) managed to get elected.

“This party is a coalition of several other parties. So, these little squabbles must always be there. But the overriding interest of the people is what we are pursuing and the people who have agreed to be one, they have no choice but to be one,” a member of the APC Board of Trustees, Chief Sam Nkire said on the party’s crisis.

In spite of these comforting words from Nkire, the APC crisis is worsening and the party is increasingly polarised.

As it stands, the struggle for power within the party is being fought by three political power blocs: the Buhari/defunct Congress for Progressive Change (CPC) caucus; Bola Tinubu/defunct Action Congress of Nigeria (ACN)/South West caucus and the Atiku Abubakar/Bukola Saraki/nPDP caucus. Another school define the political tussle as a straight fight between the party’s northern elements/nPDP against South West interests led by APC’s National Leader, Bola Ahmed Tinubu.

Meanwhile, the tussle is not unconnected to the different political power blocs posturing towards the 2019 elections. Even though President Buhari has not publicly declared that he will not seek re-election in 2019, political alignment by at least the Atiku Abubakar/Bukola Saraki/nPDP caucus has been reported.

At the APC presidential primaries held in Lagos, Tinubu backed President Muhammadu Buhari over Atiku to emerge flagbearer. Tinubu had also single-handedly picked now vice-president, Yemi Osinbajo as Buhari’s running mate.

Recall that Atiku came third in the APC presidential primaries after the former Kano state governor, Rabiu Kwankwaso clinched the second highest number of votes. However, the John Odigie-Oyegun-led APC got signed commitments from all the party’s presidential aspirants to work for the winner of the presidential primaries, despite the outcome of the result.

After the presidential election, Atiku forged a new alliance with other power blocs within the APC – G5 governors; immediate past Speaker, Aminu Waziri Tambuwal and other politicians that decamped from PDP to APC in 2013 to present a parallel power arrangement within the party.

The politicians had a common adversary – Tinubu. They plotted to cut him to size and they did. The newly formed political bloc decided to throw up Bukola Saraki as Senate President and Yakubu Dogara as House of Representatives Speaker to thwart Tinubu’s inroad to the National Assembly. Atiku’s bloc has taken Saraki and Dogara’s emergence as its own share in the APC 2015 election victory.

Party insiders report that Atiku and his loyalists are working to check Tinubu’s grip on the party’s National Working Committee (NWC), as presently constituted.

Atiku’s camp has not stopped there. Last week, the new leaderships of the Senate and House of Representatives rejected APC’s National Working Committee (NWC) approved list of principal officers which included candidates backed by Tinubu, viz: Ahmed Lawan and Femi Gbajabiamila. Recall that Lawan and Gbajabiamila failed in their respective bids to emerge Senate President and House of Representatives Speaker, respectively.

Despite protests by some members of the Senate APC caucus, Senate President, Bukola Saraki refused to rely on the APC NWC list but opted for nominations brought by Senate zonal caucuses to appoint principal officers.

In the House of Representatives, the violent scenes that played out in the chamber last week Thursday over the selection of principal officers startled Nigerians including a group of secondary school students on excursion to the National Assembly at the time of the commotion.

On Thursday, proceedings in the House of Representatives turned rowdy and almost bloody after an attempt by a lawmaker from Sokoto State, Abdullahi Balarabe Salame, to snatch the Mace – the symbol of authority- threw the House into a free-for-all fight.

The constitution of the House APC caucus principal officers was deadlocked following the fracas. A fresh attempt to constitute the principal officers will be when the National Assembly reconvenes on July 21.

There were early signs prelude to Thursday’s fracas. Reports filtered in early last week that the APC House caucus had broken into factions over the choice of candidates to fill four vacant principal officers positions in the newly inaugurated 8th House.

It was learnt that the two APC House factions communicated to the party’s leadership on how the positions should be shared.

One faction loyal to the House Speaker, Yakubu Dogara insisted that the principle of federal character as enshrined in the constitution must be adhered to in appointing the four vacant positions.

By this position, the North East and South West have been settled with the Speakership and Deputy Speakership positions respectively.

The other faction “Loyalists Group” loyal to the former Minority Leader and Speakership candidate in the June 9 House elections, Femi Gbajabiamila (Lagos/APC) insisted that the principal officers must emerge on the basis of popularity within the House APC caucus.

According to the 1999 Constitution (as amended) and the Standing Orders of the Senate and House of Representatives, the political party with majority seats (APC) produces the House Leader, Deputy House Leader, Majority Whip, Deputy Chief Whip.

Zoning debacle

Since the presidential election, the APC on the directive of its National Chairman, John Odigie-Oyegun announced that the party would zone vacant political positions. Led by the former chairman of the defunct ACN, Bisi Akande, other Tinubu supporters including the party’s NWC, Oyegun’s zoning directive was overruled. The party conducted a contentious mock election to “select” its candidates for Senate President and House Speaker. The candidates lost.

Again, when the issues of National Assembly principal officers came up, Oyegun reiterated his call for zoning. The APC chairman’s call fell on deaf ears. Backed by the party’s NWC, some APC governors led by Adams Oshiomhole of Edo state brought seperate letters containing the party’s list of principal officers in the Senate and House of Representatives. Again, Oyegun, it was gathered, was forced to sign the letter when the team insisted that it was the decision of the party.

On Wednesday, the APC North Central and South East House caucuses rejected the party’s nominees to occupy the four vacant principal officers positions.

The zonal caucuses which were excluded from the APC nominations, insisted that the principle of federal character as enshrined in the constitution must be adhered to in occupying the four vacant positions.

Monitors say the party leadership’s inability to rise above personal interest which has been characterised by imposition of candidates and weak internal party democracy has triggered the costly divisions the party grapples with lately.

A member of the APC in Kogi State, Oyisi Okatahi traced the party’s problem to the fact that it was built on faulty foundations and selfish interests.

His words: “What is happening to APC is a result of building a party on faulty foundations. There is no perfect society or party but parties that have stood the test of time are built on core values. For APC, this is not the case, rather it is “the survival of the fittest”, because many decisions are based on the interest of the day and not on any core value or principle.”

Oyegun has now assumed the role of the fallen guy. He has been blamed for the recent political misfortunes in the APC, leading some governors and party faithful to call for his sack. The Tinubu camp accused Oyegun of not doing enough while the Atiku/Saraki camp accused Oyegun of acting Tinubu’s script. President Buhari has repeatedly said he would not be drawn into the political face-off typified by the National Assembly leadership tussle between the power blocs within the party.

Also, not a few political analysts are of the view that the call for Oyegun’s resignation is uncalled for, premature and diversionary.

“Honestly APC is going the politically wayward ways that led to the ouster of PDP from power. Must the chairman of the party be sacked anytime there are challenges within the party? How will such actions resolve the crisis? Oyegun is about the best the party can have for now as his track records of public service is outstanding. He is a seasoned technocrat; progressive politician and knowledgeable administrator," an APC stalwart stated.

Political drawbacks

Although Buhari has maintained his neutrality in the APC crisis and expressed readiness to work with Saraki and Dogara, it may not be a given. Since 1999, Nigeria’s attempt at constitutional, electoral, anti-corruption, judicial, health, power, federal structure, security and oil and gas reforms have suffered, largely due to political drawbacks.

President Muhammadu Buhari’s proposed reforms in governance, economy and security sectors will require legislative approval from the newly inaugurated 8th National Assembly which is led by Buhari’s political party but backed by the opposition, Peoples Democratic Party (PDP).

Monitors say having opponents in powerful positions in the legislature will not make Buhari’s job any easier.

For now, most Nigerians are watching with keen interest if APC will fritter such historic opportunity or deliver on its promise of change.

Written by Edegbe Odemwingie for Leadership

Amber Rose, her man and Blac Chyna in adorable photo

Amber Rose shared this photo of her laughing with her bff,Blac Chyna and her new man,Machine Gun Kelly..She obviously loves this boy!

Nicole Scherzinger flashes her underwear while twerking in the street

Nicole Scherzinger enjoyed a wild night out with friends, including Prince Andrew’s pal Caroline Stanbury and footballer Patjim Kasami in Mykonos, Greece on Sunday night to celebrate her birthday.

Nicole and her close pals appeared to be reenacting one of her music videos as they strutted their stuff in the street. Nicole started spinning and dancing around with no shoes on after her birthday celebrations. The singer pulled up her minidress to reveal a flash of her bright pink underwear as things got raucous.

Nicole's bright pink underwear was firmly on show as she twerked her stuff.
The girls held hands after dancing around and playing in the middle of the street in Mykonos.

Shocker: How We Strangled Our Boss, Ex-VC Albert Ilemobade Killers Confess

Two domestic staff persons employed by the late former Vice Chancellor of the Federal University of Technology Akure (FUTA), Prof. Albert Ilemobade, on Monday confessed to killing their boss.

The staff, a former driver, Olayemi Bamitale, and the security night guard, Daniel Ita, confessed about how they purposely killed the former university don in cold-blood at his private residence in Ijapo Estate, Akure, the Ondo state capital.

The killers, who looked stern in their confessional statement at the headquarters of the Ondo State Command of the Nigeria Police Force in Akure, narrated the way they “strangulated” their boss to death with the aim of stealing and selling off his recently purchased Red Toyota RAV 4 Jeep.

Confessing his crime, the former driver, Bamitele, said after working with the late Professor Ilemobade for several years and then eventually running away from the family, he was called from Ado Ekiti by the security night guard.

“He [Daniel] called me that he had already arranged how we are going to steal baba’s [Prof. Ilemobabe] vehicle. I was surprised but I told him am not presently in town that am in Ado Ekiti. He told me I should enter a commercial transport and come to Akure immediately. I don’t even have transport fare but he said I should enter into any vehicle and when I get to Akure he would pay for it.

“I got to Akure, I called him and he came to meet me at the popular Oba’nla junction where he gave me N1000 to pay for the transportation fare, and afterward he collected a change of N500 from me after paying the transport fare and he told me I should come to Baba [Prof. Ilemobabe] house by 9 pm at Ijapo Estate and I still know the location, is a place I have worked as a driver to the late deceased”.

Bamitele explained further, “I got there at exactly that time same day, and he told me he had consulted a herbalist who told him that if we really mean business in stealing Baba’s vehicle, we should strangulates him [Prof. Ilemobabe] to death and evacuate the vehicle out of the compound. He also told me that the herbalist made it clear that we should take along some piece of sand so that we would not be caught.”

The thirty-six year old former driver added that the security night guard [Daniel] lied to the Professor that there was an electric outbreak in the compound and they immediately bounced on him by strangulating him to death.

“I asked him how did he want to carry out this evil act since Baba is already asleep on the bed. He said I should not worry that he would wake him up and lied that there was an electrical fire outbreak in the sitting room and through that process we would quickly strangulate him to death and run away with the vehicle.”

“Truly, he went to the side window room of Baba and called him out that there was an outbreak. Baba too quickly woke up and passed through the kitchen and immediately we bounced on him and strangulated him to death.”

“He now said we should put his dead body inside the pantry close to the motor garage and lock him up. We immediately proceeded into the main compound and busted into the room where we searched for the key to the vehicle and made away with two big small bags, laptop, two mobile phones, an Ipad and N7000 belonging to the deceased. 

“We passed through the main entrance to the gate of the Estate and even saw some policemen who flashed their torchlight at us but said we should go without even questioning where we were heading to at the night. We made our way outside the estate and headed to the house of his relatives along Arakale road, but none of them picked our calls.”

“According to him, they passed the night somewhere and by 4 am in the morning; Daniel said they should head to Calabar in Cross River State [his hometown] to sell the vehicle.”

“But I told him, the petrol inside the vehicle cannot get to Calabar. I said we should go to Lagos to sell the vehicle. I took him to where I knew in Lagos but on getting there, I explained to the buyers how we came about the vehicle, and they said they cannot buy it.”

“We left there and proceed to Ijebu Ode, but unfortunately officers of the Federal Road Safety Corps (FRSC) stopped us and said that our vehicle particulars are not complete and they immediately impounded the vehicle and booked us N3000 to pay the fee into first bank and we didn’t have any money on us. We left the vehicle in their custody and came back the second day to pick other stolen items inside the vehicle such as the phones and laptop.”

“We took it to Epe so that we could sell them to bail out the vehicle. Nobody could buy from us unless they flashed it and someone told us flashing it is risky. We now later jammed someone who spoke the same language as Daniel speaks. It was that person that gave us N3000 to go use it and bail out the vehicle while we gave him the phones.

“We later bailed out the vehicle and went to Ijebu Ode around Iloti to sell it off, it was the person we contacted that implicated us by calling the Police to arrest us”, he said.

In Daniel Ita’s, the late professor’s security night guard, confessional statement he claimed that Bamitale masterminded the killing. He also noted that he was scared to join Bamitale to perpetrate the crime.

“Bamitale had firstly stolen Oga’s [Prof. Ilemobade] vehicle and it was later recovered but not without selling off its extra tire. We made a manhunt for him through the police but he ran to Edo State to hide. Later, he called me that he is Edo to look for buyers who would buy Baba’s vehicle.”

“I told him the first attempt you made was not successful and now you are planning another one and want to put me into trouble. He [Bamitale] said I should not worry that it is a normal thing to do and we would even kill Baba. I rejected and said we could carry money or any other thing like money or even tie him down and run away, but not kill the old man.”

“Since, I was born I have not killed, but Bamitale rejected that we would have to kill the man because he would be looking for our whereabouts. I bluntly told him, I couldn’t do it.”

“He now said he wants to come down to Akure, but he doesn’t have transport fare and that I should give him transport fare and I said there is no problem he should come and I would give him. He came and I gave him the money. He later came into the house around 9 pm and stayed at the gate where he called me to open them for him.”

According to him, “I immediately told him that I still hold up to my words that I won’t join him in killing the old man because the professor is a father to us all. I later asked him again, how are we going to go about it?”

“Although, I told him that there was electric outbreak in my security room, but the electricity was restored.”

“He now said I should use that opportunity to call out the baba to check it out so we could quickly carry out the act. If Baba comes out he too would stand in a corner and press baba’s neck and I agreed with him.”

“I called out the old man through his window and he passed out through his kitchen. I pointed a touch light to the ceiling where the outbreak occurred and immediately Bamitale bounced on him and pressed him till he died. We later dropped his dead body at the store near the motor car park so that people will not see”

“I felt bad and I was worried, but Bamitale said the deed had already been done and that’s not the first time he would carry out such dangerous act. He entered into the compound and brought out money and stolen items because he had worked here before. We then ran away,” Daniel said.

President Buhari Restores Accreditation of Journalist in Aso Rock

On Monday, June 29, President Muhammadu Buhari ordered that the accreditation tag of Mallam Ubale Musa, the correspondent of Radio/TV Deutsche Welle which was withdrawn by the administration of former President Goodluck Jonathan be restored with immediate effect.

Musa’s accreditation was withdrawn on provocation that he asked visiting President of Chad, Idriss a question the former president and his men felt was embarrassing. While restoring his accreditation and re-issuing him with a new press tag, presidential spokesman, Mr. Femi Adesina said the re-accreditation of Musa was in keeping with Buhari’s commitment to correcting the wrongs of the past.

He said, "On the directive of President Muhammadu Buhari, the Villa Press Pass of the Radio/TV Deutsche Welle State House Correspondent, Mr. Ubale Musa, which was withdrawn in the last days of the Jonathan Administration, was restored to him today. Part of the change promised by President Buhari is correcting things that were wrongly done before. Mr. Ubale Musa’s accreditation was wrongly withdrawn. To redress the wrong done to him by the withdrawal, we have returned his Villa Press Pass to him so that he can continue his work without hindrance".

Madam Okonjo-Iweala Spent $2.1 billion Without Approval

The National Economic Council, chaired by Vice-President Yemi Osinbajo, on Monday accused a former Minister of Finance and Coordinating Minister of the Economy under Goodluck Jonathan, Dr. Ngozi Okonjo-Iweala, of spending $2.1bn from the Excess Crude Account without authorisation.

“We looked at the numbers for the Excess Crude Account. The last time the former Minister of Finance and Coordinating Minister of the Economy, Mrs Ngozi Okonjo-Iweala, reported to the council, and it is in the minutes, she reported by November 2014 that we had $4.1 bn. 

“Today, the Accountant-General Office reported we have $2.0bn. Which means the honourable minister spent $2.1bn without authority of the NEC and that money was not distributed to states, it was not paid to the three tiers of government,” 

Edo State Governor Adams Oshiomhole told State House correspondents after the NEC meeting in Abuja.

The ‘unauthorised’ spending, according to the economic council, is among the several anomalies discovered in the management of the nation’s economy between 2012 and May 2015.

Within the period, the Nigerian National Petroleum Corporation was said to have earned a total of N8.1 tn but remitted only N4.3tn.

Consequently, the Federal Government has constituted Oshiomhole, Governor Nasir el-Rufai; Governor Udom Emmanuel Governor Ibrahim Dankwambo, into a panel to probe the NNPC and the ECA between 2012 and May, 2015.

Kim Jong Un executes airport architect because he didn't like the airport design

North Korean leader Kim Jong Un has executed the chief architect of  the  new international Pyongyang airport...This news comes after he was pictured touring the building with his wife last week.
According to reports, the architect was executed because Kim didn’t like the design.
The project is the country’s latest bid to appeal to potential tourists since Kim ascended to power in North Korea three years ago and features a jewellery store, coffee bar, a pharmacy, a chocolate fountain and other luxury amenities.

Until his disappearance last year, Ma Won Chun, was North Korea’s director of the Designing Department of the National Defence Commission. His execution was confirmed when he was noticeably absent from the press photos.

Chun was the chief architect behind North Korea’s biggest government projects when he, along with five other high-level officials, were reportedly killed during one of Kim’s purges.

Ma was executed in November 2014 “For corrupt practices and failure to follow orders,” according to an Asian news outlet.

His death coincided with a report explaining that airport renovations were being suspended because of Kim’s dissatisfaction.Defects were manifested in the last phase of the construction of the Terminal 2 because the designers failed to bear in mind the party’s idea of architectural beauty that is the life and soul and core in architecture to preserve the character and national identity,”

Okonjo-Iweala Spent $2.1bn From Excess Crude Account Without Authorisation…

The National Economic Council, chaired by Vice-President Yemi Osinbajo, on Monday accused a former Minister of Finance and Coordinating Minister of the Economy under ex-President Goodluck Jonathan, Dr. Ngozi Okonjo-Iweala, of spending $2.1bn from the Excess Crude Account without authorisation…

Edo State Governor Adams Oshiomhole, while speaking to State House correspondents after the NEC’s 58th meeting in Abuja, said:

“We looked at the numbers for the Excess Crude Account. The last time the former Minister of Finance and Coordinating Minister of the Economy, Mrs Ngozi Okonjo-Iweala, reported to the council, and it is in the minutes, she reported by November 2014 that we had $4.1 bn.
“Today, the Accountant-General Office reported we have $2.0bn. Which means the honourable minister spent $2.1bn without authority of the NEC and that money was not distributed to states, it was not paid to the three tiers of government.”

Consequently, the Federal Government has constituted Oshiomhole, Kaduna State Governor, Nasir el-Rufai; Akwa Ibom State Governor, Udom Emmanuel; and Gombe State Governor, Ibrahim Dankwambo, into a panel to probe the NNPC and the ECA between 2012 and May, 2015 – Zamfara State Governor, Abdulazeez Yari, said:

”The four-man committee will check the books of the NNPC, most especially the issue of excess crude and what is not remitted into the Federation Account.
“The Federal Government, in conjunction with the Central Bank of Nigeria, will look inwards to see how to support and how much they will give to states, especially on the issue of outstanding salaries owed by the states and even the Federal Government.”

The Edo governor said;

“We are talking about transparency; we are talking about change. And what we saw from those numbers, which I believe that Nigerians are entitled to know, is that whereas the NNPC claimed to have earned N8.1tn, what NNPC paid into the Federation Account from 2012 to May 2015 was N4.3tn.
“What it means is that the NNPC withheld and spent N3.8 tn

Hmmm!!!

Local Content Law Implementation: A Call for Retaining Oil Swap and Subsidy Removal

Both legal and oil experts have advised that the Nigerian independent oil operators should be considered first in the award of Oil and Gas contracts. Nigerian service companies should also be considered for contracts and services in line with the local content law just as they called for subsidy removal.

 

A legal expert Bar. Ayo Samuel noted that the “Local content Law specifies that Nigerian independent operators be given “first consideration” in the award of Oil and Gas focused contracts and Nigerian service companies be given “exclusive consideration” for contracts and services. This is the dilemma that the government is facing. Experts say that an agreeable compromise will be a scenario where Nigerian Companies are allowed to participate, along International Oil Majors”.

President Muhammadu Buhari’s cash strapped government may have to do away with fuel subsidies in order to channel scarce resources to capital project development in Nigeria. This is in line with the views of Industry experts and Global Investment banks who agreed that a solid structured and transparent swap arrangement will ensure product availability even as NNPC refineries are operating below their plate capacity.

“Subsidies are expensive, accounting for an average of 2.5 percent of the gross domestic product from 2006-2012, according to the IMF. The government set aside N914 billion ($4.6 billion) for it in 2014. Nigeria’s national oil company the NNPC currently receives about 450,000 barrels per day for its refineries to process for domestic crude consumption.

However Nigeria is almost wholly reliant on imports for the 40 million litres per day of gasoline it consumes, as most of the NNPCs four refineries produce at less than 20-60 percent of their name plate capacity. The NNPC has often had to engage in crude for oil (swap) and offshore processing contracts and direct importation of products to bridge about 50 percent of the supply gap.

The Managing Director and Head – Africa Macro Global Research at Standard Chartered, Razia Khan said: “Having contracts directly with the oil majors for refined product would be a big win, said Razia Khan, adding, “Ultimately, the healthiest development would be to sell the refined product to end-users at cost-reflective prices.

“Any savings from a fuel subsidy could increase the amount that Nigeria spends on social safety nets – so that the poorest, most vulnerable Nigerians benefit directly,” Khan said.

This view was corroborated by members of the Independent Petroleum Marketers Association of Nigeria (IPMAN); they stated in recent news report that the Oil Swaps is a better option for Government to end scarcity and keep off subsidy payment. The association further made a case to government for IPMAN members to partake in the Crude Oil Swap Arrangement.

While many Nigerians may believe that the Crude Swap/ OPAs was a recent arrangement under the immediate past administration, our source within the NNPC stated that Crude Swap/ Offshore Processing Arrangements have been a Federal Government initiative since 1977 in partnership with International Oil companies (IOCs).

The anonymous source reiterated that “Nigerians must know that the supposed interim policy of the NNPC to bridge the gap between petroleum products demand and supply was initiated over three decades ago between 1977 and 1986 when Nigeria needed heavy crude from Venezuela to feed the Kaduna refinery. We as a nation swapped Venezuela heavy crude for Nigeria’s light crude”.

He further stated that: “the scope of crude swap was later broadened specifically because our refineries began to produce below their stipulated name plate capacity. In addition, NNPC/PPMC from late 1990s-2010, imported Petroleum Products on an Open Account backed by a PPMC Payment undertaking stating that payment will be made 45 days after imported vessels arrive, this payment timeline was never met with payment delays running to 400 days late in backlogs.

Our research findings indicated that NNPC has an outstanding debt to Importers and Bankers of close to USD 2 Billion currently standing at 7 Years late payment. Consequently, for any NNPC/PPMC import project to receive a nod, the financing bank will need to see and verify a “Solid Bankable Security or Guarantee” in order to finance such project.

NNPC/PPMC usually rely on refineries un-utilised Crude oil barrels to fund these open account Payment Batches. However, the foregoing challenge posed a problem to 50% of fuel supply into Nigeria around 2009 and 2010. In order to close the supply gap and avert scarcity crisis, NNPC/PPMC advertised in 2009 inviting for proposals for Offshore Processing Arrangement and other proposals to guarantee fuel supply to Nigeria.

Thus crude Swap/ OPAs concept widened to include crude for refined products, which had been in practice with Oil Majors more than two decades; at the time, British Petroleum and SIR refinery of Ivory Coast were engaged to swap crude for refined products under very shadowy terms. Yet no one complained, this begs the question: why the outrage when Nigerian companies were engaged to deliver same service to the NNPC/PPMC?

Perhaps it is easier to become outraged when the government of Nigeria, partners with indigenous oil and gas companies towards promoting local content laws than be dismayed by the many years of International Oil Companies (IOCs) under cutting Nigerians in disguise of service to a people.

Nonetheless, the industry is witnessing increased participation of Nigerian oil and gas companies and expressed concerns on the direction the new administration may take while being optimistic that our government will deepen the gains in the oil and gas sector as a result of promoting local content development.

According to verifiable data, Nigerian companies now control over 35% of upstream business activities in Nigeria. This significant bump from less than 10% in 2010 is as a result of passing the local content act into law; driven by the Nigerian Content Development and Monitoring Board (NCDMB).

Sadly, these local companies are faced with herculean task of dealing with various challenges associated with doing business in Nigeria. This has been recently demonstrated when perceived ANTI-LOCAL CONTENT AGENTS conspiring with International News and Reporting Policy analyst, unleashed a media onslaught against indigenous companies participating in the Crude for Products Exchange Agreement, that is aimed to provide petroleum products to the everyday Nigerian.

It is very curious to see all of these negative reports and also the exclusion of the names of Foreign and International Companies that have for many years taking part in these SWAP and Offshore Processing Contracts absent from all of these negative reportage. These Foreign companies create wealth and employment for their Countries, why can’t Nigeria do the same with its own people and companies?

Our findings indicates that the Crude Swap/OPAs arrangement entails the allocation of crude oil by NNPC for processing in a refinery, depending on the crude type and yield pattern resultant refined petroleum products mainly Gasoline and Kerosene are delivered by the contract operators into the country. The by-products not required are paid in cash to NNPC. A refining fee is paid for this refining.

The Contract Operator places a “Bank Stand by Letter of Credit” before it is allowed to lift the crude, as a form of security. The SWAP is a very straight forward arrangement, which simply means you load the Crude Oil and you deliver refined petroleum products on a value to value based contract.

Approximately, for a standard Nigerian cargo of 950,000+/- 5% Barrels (950kb) of Crude Oil loaded, the resultant volume for refined products (PMS and DPK which formed the subject matter of this Agreement) is 3 cargoes of 30,000mts +/- 10%.

The SWAP Agreement stipulates that a revolving Standby Letter of Credit (SBLC) is established in favour of PPMC, before the Supplier’s vessel is cleared to load any volume of the crude oil nominated and programmed for this purpose. This in effect guarantees that there is no exposure to PPMC for the Crude Oil lifted at any point in time during the Agreement, as this SBLC can be encashed, in the event of default.

Curiously, verifiable facts indicated that the terms on which the Federal government engaged local players where far more strenuous than the terms of engagement with the International Companies that partnered with the Federal Government. This in itself was a paradox…

It is on record tha when foreigners were handling crude swap and delivering Petroleum Products on Open Account for Nigeria, our government was buying refined products at PLATTS plus $136-180/metric from these multinationals. Government was equally required to pay interest to the multinationals on delayed receivables. Government incurred the cost of logistics and handling.

Unlike the arrangement where we have local players participating, only the principle of exchanging crude for refined product remained the same. Local companies sell at PLATTS plus $82/metric Ton. Government does not pay interest on delayed receivables. Yet, the local players remained steadfast towards supporting the Federal Government of Nigeria on making sure that finished products are available and accessible by Nigerians without hassle.

Unfortunately, instead of applauding the doggedness of local entrepreneurs, some unscrupulous elements in Nigeria are making frantic efforts to hound and frustrate growth driven by local companies in the sector. This is our quagmire as a people. Accordingly, the implementation of the Local Content Law is one that must be encouraged. Certainly without doubt, the above well documented procedure ensures compliance and discredits the unguided and unfounded opinion of those calling a dog a bad name in order to kill it.