AFR Business

FIRST E&P Celebrates Landmark Transaction as Consortium Led by Renaissance Africa Energy Company Limited Acquires SPDC
January 16, 2024
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FIRST Exploration and Petroleum Development Company Limited (FIRST E&P) is thrilled to announce its role as a member of the Renaissance consortium in the acquisition of The Shell Petroleum Development Company of Nigeria Limited (SPDC).

In a landmark transaction, the Renaissance consortium which consists of ND Western Limited, Aradel Holdings Plc., the Petrolin Group, FIRST E&P, and the Waltersmith Group, has successfully signed a landmark agreement with Shell to acquire its entire shareholding in SPDC. Completion of the transaction is subject to the requisite regulatory approvals.

This acquisition stands as a significant milestone for Renaissance, solidifying its strategic position in the Nigerian market. As with the entire consortium, FIRST E&P is committed to ensuring a smooth transition and looks forward to leveraging the consortium’s collective expertise, in partnership with SPDC’s industry-leading staff and working in partnership with all the stakeholders in the SPDC-JV to drive continued growth and success in Nigeria and beyond.

Speaking on the acquisition, FIRST E&P’s Managing Director, Ademola Adeyemi-Bero commented “This marks a momentous achievement for us at FIRST E&P, and we are excited about the strategic implications it holds for the energy landscape in Nigeria. Our collaboration as a member of this consortium is testament to the power of cooperation and shared commitment to excellence. We believe that this acquisition not only strengthens our position in the Nigerian market but also sets the stage for transformative growth and innovation in the country’s oil and gas sector.”

The company expresses gratitude to its partners, stakeholders, and regulatory bodies for their support throughout this process.

For Shell International Plc Press Release: Shell agrees to sell Nigerian onshore subsidiary, SPDC

FIRST Exploration and Petroleum Development Company Limited (FIRST E&P) is a leading independent Exploration and Production company with delivery capacity across the upstream oil and gas value chain, including drilling, well completion, well testing, and production operations. Established in 2011, the company officially commenced operations on July 1, 2012, initially focused on the acquisition, exploration, and appraisal of the assets it acquired.

FIRST E&P achieved its first oil production from the Anyala field in OML 83 (a joint venture with NNPC) on October 21, 2020, and the JV recorded its first export lifting on January 10, 2021. The company currently produces over 40,000 bbl/d from this field and remains focused on growing its daily production to 60,000 bbl/d.

With the vision of establishing itself as the most admired independent exploration and production company contributing to the well-being of Nigerians, FIRST E&P aims to set up a shallow offshore-based midstream gas business and that will be fully operational by 2025.

IBB Library of Drama, Greed, Assassination, Deceit, Bribery, Looting and The Godfather.

By Rufai Oseni

February 24, 2025

*N.B* _Most allegations can’t be independently verified_

Akilu had just returned from a military training in India at the time and Babangida recommended him for appointment as the head of the Secret Service. Idiagbon by-passed Akilu and slighted Babangida by not consulting with him to confirm the new head of the Secret Service from the army.

Gloria Okon was arrested at the Murtala Mohammed Airport trying to smuggle cocaine out of the country. Gloria claimed to be a courier for the family of one of the two high ranking military officers deeply involved in the Supreme Military Council’s palaver. Gloria was quickly smuggled out of the country and a carcass burnt beyond recognition of a human body, was left in her prison room to deceive the authorities. As Gloria’s drama was playing out, Abiola brought a large consignment of banned newsprint into the country, forcing Idiagbon to insist on the arrest of Chief M.K.O Abiola.

All sorts of calamitous events kept rolling out at the time, including the arrest of one Ikuomola for trying to smuggle a large consignment of cocaine out of the country. He indicted a son of one of the Dantatas and they were both tried and sentenced to death. The Dantata family mounted pressure on the Supreme Military Council to commute the sentence to life. The issue heightened the division among the Supreme Military Council members, with the Gloria Okon’s high ranking military benefactor, siding with the Dantatas naturally.

Idiagbon insisted that if poor people found with cocaine could be punished with death sentence, why should the rich and affluent be spared? Idiagbon also wanted the lawyer, (a Rivers state chap who had received some four million naira as legal fees on the case at the time), to be shot along with the drug barons for benefiting from the evil.

The schism between Idiagbon and Babangida totally paralyzed the Supreme Military Council and it could no longer function. Idiagbon forced compulsory leave on Babangida, under close surveillance with tapped telephone lines and all. Chief M.K.O Abiola saw the opportunity to save his neck from the newsprint saga by teaming up with his friend, Babangida, and he provided the seed money for a coup.

Through the facilities of Abiola and the Dantatas, Yar Adua was brought into the picture to help influence the Saudi Arabian monarch to extend a special invitation to Idiagbon as a guest of the monarch, to perform the 1985 Lesser Hajj in Mecca. Idiagbon felt greatly honoured by the invitation and took with him to Mecca, most of his supporters on the splintered Supreme Military Council, including Mamman Vasta.

With Idiagbon (who was the head of the Buhari’s regime in every sense of the word, and was very popular because of his transparent honesty, patriotism, and discipline), out of the way, Buhari (who was ready to vacate office anyway), was picked up like a helpless chicken at Doddan Barracks, and dumped in jail. Idiagbon, against the coupists’ advice, returned home a people’s hero, although locked up for several months too by Babangida.

Luckily, it did not take too long for Babangida to begin to reveal his secret agenda. He had removed Idiagbon/Buhari from power to douse the heated allegation at the time about illegal drug links and to help the IMF/World Bank ruin the naira and open up the Nigerian market as dumping ground for American and European junk and decadence. The marginalization of the naira suited Babangida’s Machiavellian streak to blunt prospects of mass protests with abject poverty, hunger, and basic survival pre-occupations. For example, the terroristic power of massive foreign exchange loot in a private hand, is limitless as a tool for forcing pauperized populace to acquiesce to the self-perpetuation antics of a potential despot.

Babangida’s first pronouncement in power was to shock the nation by adopting the civilian title of president. He did this because of a secret personal ambition kept to himself, to transit into life president in the mould of Presidents Nasir of Egypt and Eyadema of Togo, and also because of his agreement to make Chief Abiola his Vice President for collaborating over their 1985 coup. Abacha kicked against Abiola becoming Vice President because he was eyeing Babangida’s seat in a possible future coup of his own and wanted to remain the defacto next in command, in military terms, for eventual easy take over excuse.

Babangida promised Yar Adua a short-lived military transition after which he would hand over power to Yar Adua. That was why Yar Adua kept boasting during the early stages of Babangida’s regime, that no force on earth could stop him becoming the next president of Nigeria. This prompted Obasanjo’s statement at the time that Yar Adua must have forgotten something at the state house.

Babangida was so single minded, self-centered, and power-drunk, he single-handedly forced OIC membership on Nigeria without respect for our supposed religious secularity. He used every means imaginable to assert his power. Spiritual, criminal, everything was fair in his ruthless power game. The gods of the Marabouts became privileged guests at Aso Rock, lacing it with severe witchcraft, which was later vigorously sustained by Abacha.

If the physical failed, the metaphysical was handy in the human blood bath for power. Blood was the language in the cultish game for total control. Fear gripped the land. Who was going to be the next victim? Life was scary and worthless. I bet, corridor of power social acolytes of the time like the Arisekolas, Adedibus and the Akinyeles, could write blood-cuddling masterpieces on the mysteries of the season. Assassinations were rampant, sophisticated and comprehensive, incorporating bombings and dare-devil forages. Media houses were burnt or closed down, and critics of government were murdered, incarcerated or hounded into exile. Plane loads of promising young army officers lost their lives in questionable circumstances. Others appeared to have been sacrificed in distant land civil wars.

The Ejigbo military Hercules crash that killed an elite corp. of army captains and majors returning to their Jaji training base, is a typical example of the terrible human carnage visited upon us at the time by a desperate tyrant bent on holding on to power indefinitely at all costs. The plane was doctored and it crashed a few seconds after take-off from the Murtala Mohammed airport. No rescue attempt was ordered or made until 24 hours after the crash and even then, the inadequate facilities of a private company, (Julius Berger), were relied upon. Forty-eight hours after the crash, a warm body was still found suggesting that some lives could have been saved if rescue operations had commenced minutes after the crash.

Apart from the needless assassinations of possible opponents and rivals for power, there were totally senseless ones too, such as the death of Murtala Mohammed’s first son immediately after visiting the seat of power. It was generously reported in the press at the time. The allegation was that during the friendly, private visit, the young man was asked if he would be prepared to do a job. The young chap said he could not say until he was told what the job was. When told that he was to help facilitate the elimination of Chief Abiola, the young man said he couldn’t because Abiola was like a father to him. The host then quickly dismissed the suggestion as if it had been a joke and asked how the young man travelled to the state house. “By private car,” the young man said. “You are going about without security?” the host asked, pretending to look alarmed, and detailed some security officers to escort the young man to his Minna destination. The body of the young man was later that day found in his car on the route between the seat of power and Minna.

One of the documents we received was on Gloria Okon. We could not use the information in Nigeria at the time because no newspaper would dare publish it, so I arranged for Ejike Nwankwo, my bosom friend, to take the documents to his senior brother, Chief Arthur Nwankwo, who was in political exile in London at the time. The idea was for Arthur Nwankwo to have the Gloria Okon’s story published in the Manchester Guardian, but Arthur decided to delay publication until he could use the immunity of the Nigerian Senate, which he was aspiring to join in Babangida’s best time as a member, to make the story public.
Senior members of the Ministry of Information, and of the Daily Times at the time, and a director of Newswatch, were not totally ignorant about what was going on in Babangida’s government. In fact, Abacha at a point, asked the boss of the Ministry of Information to frame up Dele Giwa. The boss being a principled and die-hard journalist, argued that it was difficult to frame up journalists.

Babangida’s boys went ahead to frame up Giwa anyway. Three days before they killed Dele Giwa, Col. A. K. Togun, the deputy Director of Babangida’s State Security Service (the SSS), invited Giwa to his office and accused him of involvement in the importation of arms while linking Giwa with other persons alleged to be trying to stage a socialist revolution in Nigeria. At the meeting, agreement was reached, and Babangida, through his emissaries, promised to meet Giwa’s terms. Two days before Giwa’s murder, Akilu allegedly phoned Giwa’s home to ask for direction because Babangida’s ADC “has something for him, an invitation or something.”

Dele Giwa allegedly invited the overseas editor of Newswatch at the time to be around. Obviously, Giwa took the president’s promise more seriously than his colleagues at the Newswatch. This was why, when Giwa received the parcel and confirmed that it was from the President, his guest’s first reaction was to dash off to take cover in the toilet adjacent to the room where Giwa opened the parcel bomb. The guest escaped death by the whiskers and blasted eardrums. Tagum, when asked by Airport Correspondents on October 27, 1986, about Giwa’s bombing inadvertently confirmed the blackmail reason for Giwa’s death when he said: “We came to a real agreement and one person cannot just come out and blackmail us. I am an expert on blackmail. If a motorcycle man suddenly dashed in front of a car and the driver kills the motorcycle man, another motorcycle man who was there would not say the motorcycle man who dashed in front of the car was wrong.
He would say the driver killed him, not that he killed himself”

An Arab terrorist, who was recruited to collaborate with a University of Ibadan chemistry don especially for the task, produced the bomb. The terrorist is alleged to have gone with Major Buba Marwa, Ogbeha and Gwazo, in a Peugeot station wagon car with fake license plate numbers, to deliver the bomb at Dele’s home. On arrival, they were told that Dele was not in, so they laid ambush near-by to watch movements in and out of Giwa’s premises.

As soon as Giwa was spotted entering his house, the allegation continues, the Arab terrorist offered to go and deliver the bomb, but his colleagues in crime stopped him on the grounds that a white man would look too suspicious for the job. Marwa, accompanied by Ogbeha, are alleged to have delivered the bomb to Dele’s son at the door, after which the crime team drove off to Mafoluku where they burned their delivery car. The same day, the Arab terrorist was flown out of Lagos, first to Kano, and eventually out of the country.

Major Buba Marwa was at the time rewarded with the rank of Lt. Col. and posted to the Nigerian Embassy in Washington, USA, as the new Military Attaché. His rise in the Army was extremely rapid and as Col. returned home to be Governor of Lagos State. Armed robbers welcomed him to his new office with the kind of daredevilry never before experienced in Nigeria. Violence begets violence they say. The armed robbers raided from Mile two to Ikeja, even as he was passing by. Marwa panicked, so Babangida pumped unusual resources into Marwa’s coffers to ensure his success, which is the genesis of his tramping around as an achiever today. His private life does not suggest that he suffered in fool’s paradise.

Marwa, Ogbeha, and Gwazo, have since denied their alleged involvement in Dele Giwa’s murder. Marwa, who now owns an airline and, therefore, knows that it takes less than eight hours to fly across the Atlantic to Nigeria, argued that he was studying in the USA at the time. The implication of this, of course, was that it was impossible to take a few days off his studies.

Marwa, who rose to fame through IBB’s benevolence, is considered in military circles as one of the IBB boys, made up principally of the trusted cronies of the retired dictator. Accused of laundering money for IBB, Marwa again relied on the puerile argument that he was the Borno state governor in 1990, as if state governors are too busy governing diligently to travel out of Nigeria for a day or two, or even a week, on private businesses.

In December, 2005, when Marwa was detained for a couple of weeks by the EFCC, for laundering money for Abacha, he allegedly admitted that he had no choice in the matter as a military officer. He was only doing his duty. Of course, doing illegal duties loyally often goes with silencing, mouth-watering pecks, if nothing else.

In the area of managing the national economy, Babangida bestowed his adroitness and moral degeneracy. His economy was dominated by male-wives, particularly in the banking and oil sectors. Women often brag about the efficacy of ‘bottom’ power. Feminine men sometimes flaunt it too as their passport to economic liberation. Between them and the suddenly very lucrative 419 business of the time, industry was complete. IBB’s chiefs, allegedly colluded with 419 criminals to create the over-night semi-illiterate money-bags without class or shame, (including the 150 members of the National Assembly, that in 2005 sent IBB a birthday card), and who together now form the bulk of his supporters and campaigners, to return him to power.

Babangida (sapped) or totally wiped the middle class out of existence with the destruction of the naira, which he did by fiat in 1985, when he down graded the naira exchange rate from about N2 to N18 to the dollar. By the time he was forced out of office in 1993, the naira was exchanging at N60 to the dollar. Society was now reduced to two social classes of either the very poor or the rich rogues.

Babangida first concentrated on pulverizing his military base by tinkering with the 1985 Decree 17, to give himself sole authority to fire his military chiefs, including the chief of general staff; chairman, joint chiefs of staff; service chiefs, and the inspector general of police. General Domkat Bali said at the time: “Babangida must have known what he was aiming at if you now take those powers of the President as civilian, and you now put them on any army officer who then sits with other army officers, in the name of Supreme Military Council, SMC, who are useless to him, whom he can change tomorrow, that means that name is not Supreme at all.”

Bali was provoked to leave the government when he was demoted from the position of Minister of Defence to that of Internal Affairs. Ukiwe, a senior naval officer, who was IBB’s deputy, was forced to retire even before Bali did, for demonstrating patriotic zeal in defense of team spirit, over our IOC membership saga.

Gideon Orkar’s failed coup of April 22, 1990, provided Babangida with the opportunity to further purge the military. With total control over the military, IBB was ready to pursue his President-for- life agenda, (starting) by dismissing his S. J. Cookie’s Political Bureau programme for the return to civil rule by 1990.

For over eight years, Babangida kept shifting his handing over date and juggling his transition programme by arbitrarily banning and unbanning politicians, particularly the known opponents of military rule. He spent N40 billion on his endless transition programme, and bribed all and sundry, including the NLC with N50 million, NUJ with N20 million, PMAN with N30 million, and so on, to try to silence them. He attempted to compromise some vocal critics by settling them, and those he could not recruit, he sacked where possible, or detained, or killed, or hounded into exile.

Less than two years into his rule in 1987, IBB announced that he was planning to bequeath a lasting legacy of civil rule, through a gradual learning political process. Four years into his regime in 1989, he lifted for the first time his ban on partisan politics, and set up two political parastatals. One was called the Social Democratic Party (SDP), and the other was the National Republican Convention (NRC).

The handing over date to civilian government was postponed once again from late 1990 to the 1st of October 1992. He allowed elections to be held into the local governments in 1990, and in 1991, Babangida instigated intra party squabbles to find excuse to ban 12 of the candidates participating in the governorship elections. Candidates replacing the disqualified ones had barely one week to campaign.

Elections into the State Assemblies miraculously held without too much acrimony, followed shortly afterwards by elections into the National Assembly. In all the elections, known individuals strongly against Babangida or the military in power were sidelined, banned, or hounded into exile, prominent among whom were Ibrahim Tahir of the NPN, Sam Mbakwe, Chris Okolie, Wahab Dosumu, Ebenezer Babatope, etc.

Allegation of massive rigging was invoked on 17 November, 1992, to ban Adamu Ciroma and Shehu Musa Yar Adua, who had emerged from party primaries as presidential candidates for the NRC and the SDP respectively, and 21 other presidential aspirants, (including Chief Arthur Nzeribe, Chief Olu Falae, Alhaji Lateef Jakande and Alhaji Umar Shinkafi), from participating in the scheduled August 1992 presidential election, and all other future elections. The trick was that Babangida was gradually narrowing the field of potential presidential materials to himself. Remember that Babangida had promised Yar Adua the Presidency when Yar Adua helped to actualize the 1985 coup that brought Babangida to power. The ban did not go down well with the political elite in general, and particularly with Yar Adua who had assumed he would take over leadership from Babangida.

With the ban, Babangida once again postponed his handing over date from October 1st 1992, to Dec 5, 1992. Soon after, Babangida mandated the National Electoral Commission (NEC), to conduct the presidential primaries of the political parties, and he again fixed a new date of January 3, 1993, for the handing over of the reigns of power to a civilian government. Bribery, thuggery, rigging, ethnic cleavages, etc., ruined the NEC supervised political parties’ presidential primaries, resulting in the dissolution of party executives, who were replaced by Sole Administrators, and National Coordinators. Handing over date was once again postponed to August 27, 1993.
Baba Gana Kingibe, who was the SDP chairman before the dissolution of the party executives, and was then supposed to be managing the affairs of Yar Adua, was alleged to have received Babangida’s backing and financial support to aspire as presidential candidate obviously to cause confusion in Yar Adua’s political camp. Kingibe pasted his campaign posters all over the place, causing bad blood between himself and Yar Adua, which spilled into the Jos SDP convention of 1993.

In the meantime, Babangida was busy creating anarchy in the ranks of the politicians by introducing his modified open ballot system, and insisting that presidential aspirants go through tedious ward, local government, and state congresses. This eventually produced two presidential aspirants for each of the states, plus two for the FCT, and the unwieldy 62 presidential aspirants had to go through further elimination processes, at various national congresses, before the Jos (SDP), and Port-Harcourt (NRC), conventions of 1993.

Several irregularities were observed at the party conventions and a lot of money changed hands.

Alhaji Bashir Tofa for the NRC, and Bashorun M.K.O Abiola for the SDP, emerged as the presidential flag bearers. Babangida who was unhappy that progress was being made in the presidential election process was further pissed-off when his nominee, Pascal Bafyau, the ex-NLC president, as Abiola’s running mate, (to spy on and undermine Abiola), was rejected by Abiola. Abiola also upset Yar Adua’s calculations, by not accepting Abubakir Atiku as his running mate, and choosing Baba Gana Kingibe instead.

Of course, the emergence at last of promising presidential candidates for both parties was not a very palatable option for Abacha too who was still nursing the dream to succeed Babangida although pretending to be on the side of Babangida. Abacha misled Babangida to think of him as a possible ally, so the scene was set for Babangida to feel that if he annulled the election, he would have the support of Abacha, Yar Adua and other perceived, powerful enemies of Abiola, including a leading traditional ruler in the South-West.

Babangida, in his determination to scuttle the presidential election at all cost, promulgated Decree 13, forbidding the presidential flag bearers of the two political parties from doing anything whatsoever that would influence members of the public to vote for them at the election scheduled for June 12 1993. Then Babangida empowered NEC to disqualify any of the candidates at will, and as a (final) fall back strategy, to scuttle our democratic dream, he set up his Association for Better Nigeria (ABN) party, using Senator Arthur Nzeribe as proxy.

On June 10, 1993, at the unholy hour of 9.30 pm, late Justice Ikpeme, who was appointed a few days earlier and hurriedly transferred from Lagos to Abuja, granted a court order to the ABN, restraining the NEC Chairman Humphrey Nwosu, from conducting the Presidential election on June 12, 1993.

The Director of the United States Information Service (USIS) in Nigeria at the time, Mr. O’Brien, warned that the US government would not be happy if the June 12 election was cancelled. Babangida panicked, and although he declared O’Brien persona non grata and ordered him out of the country in his personal interest, Babangida allowed Nwosu to go ahead with the election.

The election was adjudged by the international and local observers monitoring it and by the two political parties involved, as the fairest and freest in the history of Nigeria. By the evening of June 14 1993, more than 50% of the election results had been authenticated and released by NEC, showing that SDP’s Moshood Abiola had swept the polls.

To everyone’s surprise, Babangida suddenly ordered NEC not to release any more results. On June 23, 1993, Babangida gave an unsigned statement to Nduka Irabor, his press secretary, announcing the cancellation of the presidential election on the radio. The unsigned statement was a strategy to allow Babangida to deny its authenticity, should Nigeria begin to boil over the announcement. Nigerians had become too hungry and docile to react.

Babangida annulled the June12 election entirely on his own, based on his selfish, personal agenda to rule indefinitely. Before annulling the election, he rallied the connivance and support of some critical Emirs and a leading Yoruba traditional ruler known to be antagonistic to Abiola’s political ambition, and the signatures of a bunch of political and military apologists (or jobbers), tagged the G-34, on a document entitled ‘Peace Pact,’ in endorsement of his annulment of the June 12, 1993, elections.

The G-34 comprised of the following members of the military junta and leaders of the two political parties, the SDP and the NRC: Admiral Augustus Aikhomu, Chief Earnest Shonekan who eventually headed Babangida’s contraption called the Interim National Government (ING), General Shehu Musa Yar’ardua, Alhaji Sule Lamido, Alhaji Adamu Ciroma, Amb. Dele Cole, Chief Tony Anenih, Chief Jim Nwobodo, Brig-Gen David A. B Mark, Alhaji Abubakar Rimi, Alhaji Olusola Saraki, Chief Dapo Sarumi, Chief Joseph Toba, Chief Bola Afonja, Dr. Hammed Kusamotu, Dr. Okechukwu Odunze, Prof. Eyo Ita, Y. Anka, Alhaji Bashir Dalhatu, Chief Tom Ikimi, Barrister Joe Nwodo (who signed with reservations) , Dr. Bawa Salka, Alhaji Abba Murtala Mohammed, Alhaji Abdulrahman Okene, Lt. Gen Joshua Dongoyaro, Lt. Gen Aliyu Mohammed Gusau, Brig-Gen John Shagaya, Brig-Gen Anthony Ukpo, Halilu A. Maina, Alhaji Bawa Salka, Mr. Amos Idakula, Mr. Theo Nikire, Alhaji A. Ramalan, Alhaji A.
Mohammed. Many of these traitors are still making decisions for Nigeria today.

Babangida’s military constituency, by and large, was against the annulment. Abacha saw his opportunity to act, and with the backing of the armed forces of Nigeria, warned Babangida that he would be entirely on his own after the August 27, 1993, handing over date. Babangida in fear, concocted and swore in an illegal arrangement he called the Interim National Government, ING, to take over office from August 27, 1993. After swearing in his ING on August 26, 1993, Babangida who was supposed to be pulled out of the army in the military tradition, played all sorts of pranks to delay the event from 11.am to 1.00pm and then to 3.00pm, when the Nigerian army removed Babangida’s guards from the Eagle Square to warn him that his time was up.

There is this strong allegation among the rank and file of the armed forces, and members of the defense correspondence of our newspapers attached to the seat of power, that Babangida arranged, in the last couple of weeks before leaving office, for several armoured vehicle loads of newly printed naira notes to be delivered daily to his new Minna palatial abode obviously with the connivance of Abacha, perhaps as his mentor’s retirement benefit.

Abacha and Babangida had several serious financial problems with Abiola but one of them takes the cake. It was over some foreign war booty amounting to US$215m. It is alleged that Babangida had asked Abiola to help launder it when Babangida was in office but Abiola was not interested.

Babangida allegedly side-stepped Abiola and eventually prevailed upon a member of Abiola’s family in the custom of family friendship, to rescue the situation. Then the person suddenly died. It is further alleged that Abiola was asked to return the money and he truthfully and honestly said he knew noting about it and even if there was such a thing, he had no authority over the matter. Then he was asked to pressurize the children of the deceased to play ball.

Abiola refused, arguing that he had no legal or moral right to do so. The kids of the deceased wanted Abiola released but Abiola was too principled to succumb to blackmail so the powers that be decided early after his arrest, that he would die in detention for declaring himself president.

The Gulf war oil windfall is Babangida’s often-referenced loot. Abacha set up a panel headed by the highly respected economist, Pius Okigbo, in October, 1994, to reorganize the CBN. Okigbo’s panel discovered that $12.2 billion of the $12.4 billion accruable from the Gulf War excess crude oil sales was frittered away or unaccounted for, through nebulous or phantom projects that could not be traced. Only $206 million was left in the account. According to Okigbo, “disbursements were clandestinely undertaken while the country was openly reeling with crushing external debt overhead. These represent, no matter the initial justification for creating the account, a gross abuse of public trust. “

When Obasanjo in 2001, decided to look quietly into the missing NNPC’s US$12.2 billion Gulf war oil windfall linked to Babangida, it was found that the documents pertaining to the fraud had disappeared from the volts of the Central Bank. The brilliant, highly respected economist, Pius Okigbo who handled the investigations into the scam had private copies. Before he could deliver, he insisted on travelling to London against strong, wise, private, counsel, and he was wasted. Other members of the Okigbo panel had copies of the report anyway and were still alive.

Government miraculously found the CBN documents when it suited it, and aspects of the documents concerning IBB, were published during the threat by members of the House of Representatives to impeach President Obasanjo in July, 2005, because of speculations that IBB was one of the Northern elites fanning the plot.

Babangida was ruthless in the way he amassed his colossal wealth. First is the illegal self-allocation of free oil, sold on the spot market. Then he initiated the corrupt culture of maintaining a huge monthly security vote virtually as personal pocket money. Rather than repair our refineries, let alone to work at maximum capacity, IBB built private refineries in Cote d’Ivoire and the Republic of Benin, where he took our crude to refine and sell back to us as fuel.

John Fashanu, in a private investigation published in African Confidential early in Obasanjo’s current regime, discovered an alleged $6 billion debt buy-back scam by IBB between 1988 and 1993. Another $14.4 billion disappeared into off shore accounts as currency stabilization and debt buy-back scheme that actually cost $2.5 billion. One of the front-companies used, Growth Management, based in London, bought the debt for 10 cents per dollar and resold to the government at 45 cents to steal 35 cents per dollar. Fashanu was trying to recover about $17 billion for the Nigerian government only for the CBN to say they had no records of the deals. The records are out there abroad but cleaned out at home to conceal the (theft) deals.

The Wolfsberg Principles, an initiative of 11 banks and institutions across the world to fight serious international financial crimes, traced another $3 billion of our stolen money to Babangida’s accounts abroad, and $4.3 billion to Abacha’s.

Although Babangida used mostly fictitious names for his numerous accounts abroad, EFCC could zero in on some of the accounts by following up on the dusts raised early in 2003 over the financing of a leading Nigerian telecommunications project in which Babangida is alleged to own 75% shares. Mohammed fronts for his father on the authentic board of the company. Those claiming to have borrowed from foreign banks in the heat of the EFCC’s revelations at the time have not identified the collateral or sortie used. Documents on the loan supposed to have been granted on 9 February, 2001, was dated 28 August, 2006. The original ‘loan’ letter has not been presented. Apparently, Paribas Bank, based in Paris, was managing a slush fund from which investments in excess of US$400 million was made to buy into Alcatel, (the telecommunications’ partner technical partners), Bouygues Telecoms, Peugeot and Total finaelf.

Alcatel and Parabel National of France were worried at the time that their invoices for the telecom project were being inflated to launder funds by the supposed private owners of the sources of funds and that private cheques were being issued to finance the staggering project without recourse to borrowing from banks. They suspected illegal laundering of funds and threatened to withdraw collaboration on the project while alerting Interpol to investigate the sources of the private cheques being issued to finance the project.

IBB could not participate in Obasanjo’s 2003, inauguration ceremonies, because he was allegedly out of the country sorting out the Interpol queries on the Alcatel’s slush account alert, at the time. Even now, the telecoms’ financing details through Siemens etc, could be investigated by the EFCC tracing ghost cheques to issuing private sources of funds and their local and international banks to unravel possible laundering of funds.

Luscious contracts for the construction of Abuja were awarded to front-companies of his and his cronies, including Julius Berger and Arab Contractors that between them virtually single-handedly handled the construction of the new Federal Capital. The security danger of foreign companies solely constructing a country’s capital and having access to its structural secrets, including possible Presidential underground escape routes and military arsenal volts, is mind boggling to say the least, but that is an issue for another day.

The largest, most prestigious housing estate in Alexandra, Egypt’s leading holiday resort town, is alleged to belong to Babangida. Even Egyptians cannot afford his rent, which is alleged to be in dollars. All his tenants are rich foreigners and the staff of multi-national companies operating in Alexandra. The estate is alleged to have its own airport, which Babangida uses when he visits.

Babangida is alleged to own several other housing estates around the world, including houses on Bishop Avenue in London. He uses his London houses, it is alleged, as guest houses or gifts for people on his compromise list. He is considered generous with gifts of cars with their boots stuffed with naira notes when he wants some jobs done.

Perhaps you would want to join me to play the prude accountant, generous with figures. Let’s pretend that Babangida was a General throughout his service years in the Nigerian army. Again let’s assume he spent 30 years in the army and was paid N100,000 monthly (actually, salaries of Generals were less than N10,000 a month until recently) and he saved every kobo of his salary. He would be worth about N35,000,000 plus interest in the bank today. But Babangida’s 50 bedroom palatial abode in Minna is alleged to be conservatively worth billions of naira and he does not owe any bank on it.

In 2003, he threw a wedding party for his first daughter, which numbed the nation. Some 28 governors were in attendance, and in June 2004, he treated us to another dream-like political carnival during his son’s wedding. No one dared to ask where the money came from to set up such a palatial abode or scandalous and intimidating wedding carnivals in our jungle of abject poverty and hunger. Nigerians revelled in the lavish show of shame, hoodwinked by the audacity, the sumptuous food, the ambience, the vulgarity….. At least we saw our fellow Nigerians (albeit a handful of them), living it up on the money that could have guaranteed millions of Nigerians, active, regular employment indefinitely.

Almost all the principal characters involved in leadership tussles with Babangida since 1985, Abiola, Yar Adua, Idiagbon and even Abacha, have all died through induced cardiac arrest, lethal injection, poisoned food, gassed telephone handset, etc, etc, and my fear is whether Nigeria would survive the Godfather himself?

DANGOTE REFINERY: THE DANGER OF A SINGLE NARRATIVE -SIFTING THE FACTS FROM EMOTION by Richard Akinnola

When the Dangote refinery issue controversy blew up, naturally as someone wired to support anyone l perceive to be oppressed, this time, Dangote, l lined up in support of the richest man in Africa.
I perceived he was being unduly treated by the Downstream and Midstream regulators, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). For days, l had heated arguments with people with opposing views on this matter. However, Ademola Adigun, one person l respect on this app, cautioned that people should not be too emotive on this matter but seek knowledge. I took that as a challenge.

Subsequently, in an attempt not to look foolish out of emotive consideration, l opened my mind to critically study the issues involved and even the nitty gritty technical details of the oil and gas system. And because l owe an obligation to educate people, l had to open up myself to information, researching on this issue and the petroleum sector, devoid of emotion.

While several groups of people, including one of my constituencies -the Civil society, have made pilgrimages to the humongous site of the Dangote refinery, unarguably, the largest private refinery in World, l decided, what in my opinion, was sifting facts from emotion. The issue has even reverberated in the hallowed Chambers of the House of Representatives, where the adhoc committee set up to investigate the issue, among other issues in the upstream and midstream petroleum section, was dissolved yesterday.
In a report today by Daily Nigeria, the Speaker, Abbas Tajuddeen, dissolved the committee over alleged compromise by some members of the committee who had exculpated the richest man in Africa, even before the assignment kicked off.

From my findings, there are three major critical issues that are affecting the operations of Dangote Refinery

1) CRUDE SUPPLY-FEEDSTOCK

It does appear that when Dangote was building the refinery, there were no proper arrangements on ground on how he will get feedstock for the refinery. His refinery is the largest single train refinery in the world.
Nobody builds and opens a refinery of this magnitude without refinery agreement to get feed stock. Dangote didn’t have a feedstock agreement for his refinery.

I have read where some people claimed that he has an agreement with NNPC Ltd but that arrangements was not a feed stock agreement. What happened with the NNPC arrangement was that during the project building phase, Dangote Refinery project got stuck and NNPC Ltd got the approval of the President to take equity.
Subsequently, the NNPC got a loan and paid $1bn as part of the 20 per cent equity while the rest was to be paid in crude supply.

The lack of feedstock was part of Dangote’s problem and he is now sourcing feedstock when the refinery is powered. So far, NNPC Ltd has given him 39 cargoes.

2) CRUDE OIL PRICES
Dangote’s claim that IOCs are selling crude oil to him at $6 per barrel above international price doesn’t seem to be true. What l discovered is that Crude oil has different grades. What he got from the US is WTI and the price is not the same as others.
Another key issue under pricing is that the margin of sale of crude oil is different because it is an international business. There is what is called market margin and it is usually from $1.5 to up to $20 per barrel.

There are several crude grades and Dangote Refinery uses different grades of crude to blend. So, when Dangote said he is importing from the United States, it is because he needs it as part of the grades to be used to blend in his refinery to produce petroleum products. His refinery needs several percentage of Bonny light, WTI and others to be able to blend very well. But he is using the fact that he imports from US to give the impression that he is importing from US and other countries, when in actual fact, is that he is sourcing different crude grades to blend.

Another critical point of under pricing is that the marketers buy this crude grades and add their own margin which ranges from $1.5 to $20 but the Nigerian government is giving it to Dangote at a margin of $0.5 per barrel which to me seems to me to be a good deal for him.

One other contentious issue is that Dangote is also persuading the regulator, to persuade the International Oil Companies to give him crude but the IOCs cannot do that because they have Production Sharing Contract (PSC) with the Nigerian government. Through the PSC, the IOCs produce, give Nigeria government its share and take the share of their crude and sell to marketers. Dangote didn’t enter any agreement with the IOCs to give him feedstock. What people must also know is that these IOCs borrow money from banks, invest in equipments, drill the oil fields, give government its share and take theirs, sell, recover their costs and make further investments.
Also, Dangote wants to use the local refinery obligation to obfuscate issues but this is not working for him because the local refinery obligation, according to the PIA, is based on a willing buyer and willing seller arrangement. This means the product must be available, and the parties must agree on the price in line with Section 109 of the PIA, which deals with the National Crude Oil Requirement of Refineries. The section states that the Nigerian Upstream Petroleum Regulatory Commission shall base the allocation of the domestic crude oil supply obligation applicable to the respective lessees on the National Crude Oil Demand requirement supply curve, which is the supply curve of crude oil or condensate that can be supplied on a voluntary basis at the prevailing international market price.

3) DOWNSTREAM
On the controversial issue of licensing of Dangote Refinery, while it has the license to build the plant, the refinery does not have license that covers other parts of its operations.
For monopoly, Dangote is asking the regulator to direct all oil marketers to get petroleum products from his refinery. But the question to ask is: Can Dangote guarantee Nigeria three billion liters of petroleum products per day in strategic national reserves for 32 days and not sell it? As a business entity, for Dangote to keep these products in strategic national reserves without selling them will lead to huge losses for him.
For the regulator to give Dangote that monopoly that he asking means that the business of other oil marketers would be killed and this is against the policy of deregulation because marketers should be allowed to import so there can be healthy competition.

Another critical point to note is that Dangote Refinery operates in a free trade zone and he will be exempted from paying tax to government. This is a loss of revenue to the government. The petroluem products from the refinery would be sold in foreign currency instead of naira to Nigerians as oil marketers who want to buy from there will fill form M (Importers form) in the bank.

Another contentious issue is the sulphur content in the petroluem products. It was reported in the media that the NMDPRA has minimum of 11 staff members in Dangote Refinery and all other local Refineries. The test of the petroluen products from the refinery are done daily and sent to the regulator. This means the regulator knows what they are saying when they stated that the product is inferior.

One worrisome aspect of the whole arrangement is that Dangote will need a minimum of $1.8bn working capital to operate the refinery and no bank would be willing to give it to him because he appears to be at a financial tight corner.
This was further confirmed with yesterday’s International Fitch ratings which downgraded the Dangote industries Limited, reflecting the precarious liquidity position of the business conglomerate.
The report stated inter alia that the group’s liquidity position, “followed lower than expected disposal proceeds, operational and financial underperformance compared to our prior expectations, also affected by local currency devaluation, and lack of contracted backup funding to repay its significant debt facilities maturing on 31 August 2024….We view the lack of DIL’s audited accounts for 2023 as a corporate governance issue. The RWN reflects uncertainty related to the group’s ability to refinance maturing debt.

“Lack of tangible steps to refinance or repay the maturing debt would lead to further downgrade while we do not expect a positive rating action until the company’s liquidity position improves substantially.”

I love Dangote and his can-do spirit, the reason l initially was emotive when this controversy broke when l felt he was being unduly treated but my study of the whole scenario has changed my perspective. I want him to succeed but he too has to do the needful. The monopolist mindset which he carried from his cement business cannot work in the deregulated petroleum sector. More importantly, he needs a pragmatic approach to solve his liquidity challenges in this petroleum sector, which, with the benefit of hindsight, he underestimated, based on the seeming hand-in-gloves relationship he had with the previous leadership of the CBN, where it appeared he had “easy” access to funds.

Soji Adekunmbi, an Abuja based public policy analyst, in an article in The Cable, proffered solutions to Dangote to enable him navigate the humongous financial quagmire he seems to have found himself, when he posited:
“A few options are available to Dangote but the most viable of them is that he should consider divesting some of his shares in the refinery. It may seem a difficult option but it is the best for him given the circumstances.

There are business entities who took a similar path when confronted with some of the challenges seemingly facing Dangote. In Saudi Arabia, the Saudi government sold Aramco, the national oil company to the public when it faced difficulties.

Even Microsoft founder, Bill Gates sold off a majority of his stake in the company retaining a mere five percent interest in the business. Gates took that route after facing anti-trade court cases following Microsoft’s monopolistic nature, which had caused the collapse of several IT companies.

Dangote should do the needful by selling shares to Nigerians as it is obvious given the intricate nature of business in the oil and gas sector particularly the huge capital outlay required to keep a business going, he cannot pull it off alone.”

The recent reported attacks and disruption of the business activities of Bureaux de Change (BDCs) operators in different urban centers across the country by Government Agencies, are ill-advised and wrongly directed.

Rather than solve the problem, the action will further escalate and worsen the exchange rate situation in the country. The BDCs are not the primary suppliers of forex nor do they create demand. They only provide a market to sellers and buyers of foreign currency.

They are part and parcel of every economy and can be found even in the developed economies of the world. To think that the BDCs are the cause of the declining value of the Naira is a smack on rational economic thinking.

The only way to shore up the value of our currency is to move the country from consumption to production, especially export-led production, and fight corruption, which allows unproductive money to pursue the available supply of foreign currency.

As long as Nigeria remains an unproductive economy and corruption continues unfettered with people in possession of unproductive excess cash, the value of our currency will continue to depreciate.

It’s important therefore that government authorities properly understand the workings of a modern economy and channel their efforts accordingly.

#PeterObi 🇳🇬

PRESS RELEASE

PDP Governors: It’s time to do the work you were elected for

The Minister of Information and National Orientation, Mohammed Idris, notes the statement by the PDP Governors Forum, directing a call for resignation at President Bola Ahmed Tinubu GCFR.

The call is nothing but an attempt at distraction by people who should instead be busy supporting the President’s efforts at bringing economic relief to the Nigerian people. It is our considered view that the PDP and its Governors should not be seeking, through the back door of intimidation, what they have consistently failed to achieve by democratic means, since 2015.

Those who could not bring transformational change when they had a lengthy chance to, should not seek to interrupt or distract those who are busy at work on the presidential vision that Nigerians elected them to implement.

*The administration of President Bola Tinubu has also, since inception, generously extended financial support to all the State Governments, regardless of partisan affiliation. In addition, the removal of the petrol subsidy—which, incidentally, was one of the main planks of the PDP presidential campaign—has swelled the revenues of all States, including the PDP States. To whom more has been given, more is therefore expected.
*
The President and his administration recognise the unfinished business of revamping our national economy kickstarted by the administration of President Muhammadu Buhari, through programmes focused on large-scale infrastructure, social welfare, prioritizing the equipping and welfare of the military and security agencies, and reclaiming Nigeria’s strategic place in the comity of nations. Boko Haram and its affiliates, on the ascendancy in 2014/2015, have since been decimated, and similar bold gains are now being made with bandits and other criminals.

Nigerians have not forgotten that it was the APC administration that cleared several liabilities left behind by the PDP government, such as subsidy claims by oil marketers, Paris Club Refunds, unpaid pensions, gratuities, and salary arrears owed various categories of pensioners from liquidated and existing State-Owned Enterprises.

Major oil sector reforms that the PDP touted for years but could not deliver – passage of the PIB, new refineries, as well as the revamp of existing ones, and so on – are the very real and continuing legacies of the ruling All Progressives Congress (APC).

All of these have been accomplished without access to the oil windfall that the PDP government enjoyed for much of the time that it was in power, and also against the backdrop of the most devastating global shock since the Second World War: the COVID-19 pandemic.

We must continue to state these facts so Nigerians will know where we are coming from, and appreciate what is being done in its full context.

President Tinubu is not and will never be overwhelmed by the current challenges the country is facing. He will not abdicate his responsibilities. He will courageously continue to wrestle with the challenges and surmount them, laying a durable foundation for the new Nigeria that is emerging.

He has also never shied away from acknowledging the pain of ongoing reforms, and has seized every opportunity to assure Nigerians that inside the pain of the reforms lie the seeds of lasting prosperity and national development.

To the PDP Governors, let us reiterate: This is not the time for distraction. It is time instead for the rolling up of sleeves, to support and complement the hard work of the President and his administration.

Rabiu Ibrahim
Special Assistant (Media) to the Honourable Minister of Information and National Orientation

February 18, 2024