Nigerian Striking Oil Workers Shut NNPC, Lock Out GMD
Nigeria Daily Trust
Oil workers yesterday morning shut down official and business activities at the headquarters of the Nigerian National Petroleum Corporation (NNPC) in Abuja.
Group Managing Director of the corporation Dr. Joseph Dawha was among top management staff of the NNPC that was denied entrance to the tower.
When the union workers prevented the GMD's convoy from gaining entry, he returned back home.
The workers donned mostly in red t-shirts and bowler hat, stormed the towers early morning and barricaded the main entrance.
Business activities in the tower were crippled as staff and other users of the complex could not gain access to carry out their various commercial transactions.
The oil workers' union said the action was to object the transfer of the operatorship by the government of onshore oil block OML 42, sold by Shell, to an indigenous company, Neconde Energy.
The workers, under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said they are calling for the reversal of the award of the operatorship to Niconde.
When asked for an interview with the leader of the striking union, the workers declined to identify their leader or to talk to the press but one worker who agreed to speak but asked not to be named told our reporter that they have resolved the issues and would be dispersing from the gate before evening.
He said there was no need to talk to the press because, "We have called the GMD back, very soon you won't see anybody here but if we have any course to come back tomorrow, I will let you know" he said.
Sources in the corporation told our reporter that work for the day was over as at 12 pm until today (Thursday) because they would not return when the gate would be eventually opened.
One staff told our reporter, "As I talk to you am already at home, if the GMD was not allowed entrance, then who am to go in. It's past one, even if the GMD comes back, for me, I have closed for the day".
Meanwhile, the actions by the workers over the transfer of ownership of OML 42 to two indigenous companies has been condemned by some stakeholders in the industry.
One of the stakeholders, who pleaded anonymity, claimed that the industrial action is very insensitive, and is fueled by some disgruntled senior management staff of the NPDC, who are not happy that the operatorship rights to the JV assets are being transferred to the indigenous companies who all have a 45% stake in the assets.
Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) on Wednesday is threatening economic activities nationwide. The protesting union members barricaded the entrance of the headquarters of Nigerian National Petroleum Corporation (NNPC) in Abuja thereby preventing the employees from resuming in their efforts to get its management to attend to their demands.
Specifically, PENGASSAN called for a declaration of emergency in the oil and gas sector and urged the incoming government to do everything possible to address the plethora of issues bedevilling the sector in order to ensure its efficiency.
PENGASSAN’s President, Mr. Francis Johnson said in a statement that there were many issues requiring urgent attention from the incoming government to reposition the industry for efficient and effective delivery of its benefits to Nigerians.
For NUPENG members, the Federal Government should assess more critically how the Nigerian Petroleum Development Company (NPDC) was being managed with a view to ensuring that the guiding laws and rules relating to the operations of the company are subverted.
The Assistant General Secretary of NUPENG, Mr. Adamson Momoh, said that the strike against NPDC, which is an arm of NNPC, would continue until the management sees reasons with the workers.
In Lagos, the effects of the strike started manifesting as long queues, which had abated since Monday, became more pronounced in filling stations as motorists renew their struggles to buy fuel.
The unions had given a notice, which expired last weekend, urging the Federal Government to reverse the transfer of operatorship of the Joint Venture, JV, partnership in OMLs 40 and 42 to Neconde Energy Nigeria Limited and Elcrest Exploration and Production Limited.
A statement from the JV partners said the shut-in has affected all NPDC operated assets in joint venture with indigenous companies that had applied for operatorship, except Neconde, which, prior to the crisis, had been awarded the operatorship of OML 42, and immediately got the Joint Task Force (JTF) to secure the assets.
Elcrest (OML 40), which is next in line to be awarded operatorship, Shoreline OML 30 and FHN/Afren (OML 26) have now been shut as oil evacuation is hampered from OML 34 which relies on the OML 30 pumping station.
Nigeria: Strike by two oil unions threatens economic activities
May 21, 2015 at 12:55 pm
The strike by Nigerian oil workers under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) on Wednesday is threatening economic activities nationwide. The protesting union members barricaded the entrance of the headquarters of Nigerian National Petroleum Corporation (NNPC) in Abuja thereby preventing the employees from resuming in their efforts to get its management to attend to their demands.
Specifically, PENGASSAN called for a declaration of emergency in the oil and gas sector and urged the incoming government to do everything possible to address the plethora of issues bedevilling the sector in order to ensure its efficiency.
PENGASSAN’s President, Mr. Francis Johnson said in a statement that there were many issues requiring urgent attention from the incoming government to reposition the industry for efficient and effective delivery of its benefits to Nigerians.
For NUPENG members, the Federal Government should assess more critically how the Nigerian Petroleum Development Company (NPDC) was being managed with a view to ensuring that the guiding laws and rules relating to the operations of the company are subverted.
The Assistant General Secretary of NUPENG, Mr. Adamson Momoh, said that the strike against NPDC, which is an arm of NNPC, would continue until the management sees reasons with the workers.
In Lagos, the effects of the strike started manifesting as long queues, which had abated since Monday, became more pronounced in filling stations as motorists renew their struggles to buy fuel.
The unions had given a notice, which expired last weekend, urging the Federal Government to reverse the transfer of operatorship of the Joint Venture, JV, partnership in OMLs 40 and 42 to Neconde Energy Nigeria Limited and Elcrest Exploration and Production Limited.
A statement from the JV partners said the shut-in has affected all NPDC operated assets in joint venture with indigenous companies that had applied for operatorship, except Neconde, which, prior to the crisis, had been awarded the operatorship of OML 42, and immediately got the Joint Task Force (JTF) to secure the assets.
Elcrest (OML 40), which is next in line to be awarded operatorship, Shoreline OML 30 and FHN/Afren (OML 26) have now been shut as oil evacuation is hampered from OML 34 which relies on the OML 30 pumping station.
NIGERIAN OIL WORKERS DOWN TOOLS OVER SALE OF OML 42
By: Thabile Manala
22 May 2015|16:47 GMT
OML 42 sale causes Nigerian oil workers to shut down official business and activities at the headquarters of the corporation.
These employees are demanding the reversal of the transfer to the Nigerian Petroleum Development Company (NPDC). They are against the operatorship of OML 42 by Shoreline Group and Neconde Energy Ltd.
Emmanuel Ojugbana, the spokesman for white-collar oil union Pengassan, told Reuters on Tuesday, "the shut down has not been done yet," but that they would take action if the government had not met with them by the end of the week.
According to CEO of Shoreline Group, Kola Karim, “There was never any sale of OML, the true position is very simple… NPDC, as the operating arm of NNPC, had some assets novated to them to take on the operations about three years ago."
“Benchmarking that to what is happening today, those assets have not been operated efficiently nor does NPDC have the required funding to make sure these assets are performing."
Karim argues that the unions were aware that assets which belong 100 per cent to NPDC, were not being adequately looked after therefore, why was the focus of their strike against assets divested to Shoreline.
He said that a company like Shoreline had the required technical ability and financial capacity to produce royalties and revenues for the government even in the face of dropping oil prices. However, it is “shocking” that unions do not want that.
According to reports, the Trade Union Congress of Nigeria has been pleading with the government to stop the continued scarcity of petroleum products.
TUC further advised the government to take concrete steps on the issue of local refining to put a stop to the problem of importation of petroleum products and payment of subsidy.
With the current decline in the oil price and Nigeria’s debt woes, Karim said that the government stands to gain more from this.
“Government needs to step in and see the reality,” emphasised Karim.
He cited an example of SEPLAT Petroleum Development Company.
“When picked up, the asset production was less than 15 000 barrels a day. With SEPLAT's technical positioning and financial capacity this asset is creating over 70 000 barrels a day.”
There seems to be a mismatch in the opportunities at hand and Nigeria being able to exploit the assets in building its cash reserves.
Shoreline has been closed down for days now and according to Karim the government has no choice because, “The domestic gas obligation is not being met which in turn tells you the power situation is going to get worse in parts of Nigeria”.
Strike by Oil Station Staffers Complicates Nigeria Fuel Shortage
Sun May 24, 2015 5:12AM
presstv.ir
A strike by Nigerian oil workers has added fuel to the fire in Africa’s biggest oil producer, Nigeria, amid months of an ongoing fuel shortage.
Unpaid staffers at oil stations refuse to work, gas stations are closed across the country, and roads have gone almost empty of cars.
Black market profiteers are selling the fuel at roadsides at four times the regulated 87 naira (40 cents) a liter.
Flights are being canceled at the Murtala Muhammed International Airport in the most populous city of Lagos one after another because no fuel is available this week.
At bus stations, out-of-fuel vehicles stand idle creating a challenge for staggering passengers.
Radio stations have also stopped their programs as well due to frequent power outages and the lack of fuel for generators.
Unpaid oil tanker drivers had already gone on strike earlier this month; other industry workers joined them earlier this week.
Nigeria produces more than two million barrels of petroleum a day but imports refined fuel because it does not have enough functioning refineries. The country regularly suffers fuel shortages, but the current countrywide crisis has been unprecedented.
Some critics say the fuel shortage in the oil-rich country is a scam to benefit oil suppliers and ‘corrupt’ government officials.
Nigeria Grounds Flights as Fuel Crisis Deepens in the Largest Oil Producing Nation in Africa
BY BENZAMIN
MAY 24, 2015
Majority of Nigerian airlines grounded flights as Africa’s largest oil producing nation comes to a virtual standstill due to the ongoing fuel crisis.
Nigeria is a nation that produces more than 2.5 million barrels of crude oil every day and yet this country is facing one of the most severe fuel shortages witnessed in recent times. According to the Nigerian National Petroleum Corporation, the country is actually producing more oil than it needs, but is still being forced to import fuel. This is because the country lacks adequate refineries to process the millions of barrels of crude oil it produces daily into fuel, to meet the needs of the 150,177 people residing in the country. “We are an oil producing country, very rich, a giant in Africa,” commented Seun Olewaleon, one of the many drivers carrying empty fuel cans in the streets of Lagos in hopes of ‘striking oil’. “But the experience we are getting now is so hard”.
Fuel in Nigeria is a very precious commodity as it is not used for cars and transport services only. Most Nigerians rely on fuel to power their generators for homes and businesses alike, since the country gets only a few hours of electricity a day. The crisis has been going on since March, as fuel importers claim that the Nigerian government is holding off from clearing their dues. The oil suppliers claim that they are the real ‘victims’ here, as they have been hit by multiple fronts simultaneously. With the Nigerian credit policy being tightened coupled with the low international oil prices and add to that massive amounts of unpaid government dues, which they claim to be around $ 1 billion, the oil tanker drivers had no choice but to go on strike.
The Nigerian government claims that the oil importers are using this shortage in fuel, to press home their demands of getting paid without letting the concerned authorities go through standard protocols to verify their claims before disbursing payment. “You have to verify the claims of the marketers before they are paid, and because the government is coming to an end, they are getting quite nervous,” commented Ngozi Okonjo-Iweala, Nigerian’s finance minister. She however insists that the government will not succumb to these lowly tactics and will ensure that the proper verification is done before paying the suppliers.
It remains to be seen what steps the Nigerian government takes to end the ongoing crisis that is crippling life in Lagos.
Nigeria's leading cellphone provider urgently needs diesel to prevent countrywide shut-down
May 24, 2015 | 2:16 p.m. EDT
By MICHELLE FAUL, Associated Press
LAGOS, Nigeria (AP) — Nigeria's leading cellphone provider said Sunday it urgently needs diesel to prevent shutting down services countrywide — the latest business hit by a months-long fuel crisis in Africa's biggest oil producer.
Many aircraft have been grounded with foreign airlines diverting to other African countries to fuel for flights abroad.
Some radio stations have been silenced.
Nigeria's woefully erratic electricity supply keeps businesses dependent on diesel generators. Nigeria produces more than 2 billion barrels of petroleum a day, but imports almost all refined fuel because its refineries aren't maintained.
The party of President-elect Muhammadu Buhari on Sunday accused President Goodluck Jonathan's government of deliberately wrecking the economy.
"The whole scenario reeks of sabotage," spokesman Lai Mohammed said in a statement. "Never in the history of our country has any government handed over to another a more distressed country: No electricity, no fuel, workers are on strike, billions are owed to state and federal workers, 60 billion dollars are owed in national debt and the economy is virtually grounded."
Buhari takes office on Friday.
MTN Nigeria, which has 50 million-plus customers, tweeted that cellphone service will start deteriorating in 24 hours if it doesn't find diesel. Some customers already are experiencing problems and Nigeria's landline network collapsed years ago.
"MTN's available reserves are running low and the company must source for a significant quantity of diesel in the very near future to prevent a shutdown of services across Nigeria," corporate services executive Akindale Goodwill tweeted.
The crisis began when oil suppliers, hit by tightened credit lines and unpaid interest, said the government owes them as much as $1 billion for fuel and subsidies going back to October 2014. They said they could no longer afford to supply fuel.
Oil tanker drivers unpaid by the suppliers started striking last week and were joined Thursday by other oil workers.
The government, reeling from halved international prices for petroleum that provides more than 80 percent of its revenue, is so cash-strapped it is borrowing to pay salaries, the finance minister said earlier this month.
Minister Ngozi Okonjo-Iweala denied the debt on Friday, telling journalists the suppliers are asking the government to pay their foreign exchange differential losses caused by the naira's slump from about 160 to the dollar in December to today's 218.
She accused oil suppliers of holding Nigerians to ransom and said she has asked the Central Bank of Nigeria to verify the figures because "there has been so much fraud allegations and scams in this business of oil marketing."
Oil workers yesterday morning shut down official and business activities at the headquarters of the Nigerian National Petroleum Corporation (NNPC) in Abuja.
Group Managing Director of the corporation Dr. Joseph Dawha was among top management staff of the NNPC that was denied entrance to the tower.
When the union workers prevented the GMD's convoy from gaining entry, he returned back home.
The workers donned mostly in red t-shirts and bowler hat, stormed the towers early morning and barricaded the main entrance.
Business activities in the tower were crippled as staff and other users of the complex could not gain access to carry out their various commercial transactions.
The oil workers' union said the action was to object the transfer of the operatorship by the government of onshore oil block OML 42, sold by Shell, to an indigenous company, Neconde Energy.
The workers, under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said they are calling for the reversal of the award of the operatorship to Niconde.
When asked for an interview with the leader of the striking union, the workers declined to identify their leader or to talk to the press but one worker who agreed to speak but asked not to be named told our reporter that they have resolved the issues and would be dispersing from the gate before evening.
He said there was no need to talk to the press because, "We have called the GMD back, very soon you won't see anybody here but if we have any course to come back tomorrow, I will let you know" he said.
Sources in the corporation told our reporter that work for the day was over as at 12 pm until today (Thursday) because they would not return when the gate would be eventually opened.
One staff told our reporter, "As I talk to you am already at home, if the GMD was not allowed entrance, then who am to go in. It's past one, even if the GMD comes back, for me, I have closed for the day".
Meanwhile, the actions by the workers over the transfer of ownership of OML 42 to two indigenous companies has been condemned by some stakeholders in the industry.
One of the stakeholders, who pleaded anonymity, claimed that the industrial action is very insensitive, and is fueled by some disgruntled senior management staff of the NPDC, who are not happy that the operatorship rights to the JV assets are being transferred to the indigenous companies who all have a 45% stake in the assets.
Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) on Wednesday is threatening economic activities nationwide. The protesting union members barricaded the entrance of the headquarters of Nigerian National Petroleum Corporation (NNPC) in Abuja thereby preventing the employees from resuming in their efforts to get its management to attend to their demands.
Specifically, PENGASSAN called for a declaration of emergency in the oil and gas sector and urged the incoming government to do everything possible to address the plethora of issues bedevilling the sector in order to ensure its efficiency.
PENGASSAN’s President, Mr. Francis Johnson said in a statement that there were many issues requiring urgent attention from the incoming government to reposition the industry for efficient and effective delivery of its benefits to Nigerians.
For NUPENG members, the Federal Government should assess more critically how the Nigerian Petroleum Development Company (NPDC) was being managed with a view to ensuring that the guiding laws and rules relating to the operations of the company are subverted.
The Assistant General Secretary of NUPENG, Mr. Adamson Momoh, said that the strike against NPDC, which is an arm of NNPC, would continue until the management sees reasons with the workers.
In Lagos, the effects of the strike started manifesting as long queues, which had abated since Monday, became more pronounced in filling stations as motorists renew their struggles to buy fuel.
The unions had given a notice, which expired last weekend, urging the Federal Government to reverse the transfer of operatorship of the Joint Venture, JV, partnership in OMLs 40 and 42 to Neconde Energy Nigeria Limited and Elcrest Exploration and Production Limited.
A statement from the JV partners said the shut-in has affected all NPDC operated assets in joint venture with indigenous companies that had applied for operatorship, except Neconde, which, prior to the crisis, had been awarded the operatorship of OML 42, and immediately got the Joint Task Force (JTF) to secure the assets.
Elcrest (OML 40), which is next in line to be awarded operatorship, Shoreline OML 30 and FHN/Afren (OML 26) have now been shut as oil evacuation is hampered from OML 34 which relies on the OML 30 pumping station.
Nigeria: Strike by two oil unions threatens economic activities
May 21, 2015 at 12:55 pm
The strike by Nigerian oil workers under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) on Wednesday is threatening economic activities nationwide. The protesting union members barricaded the entrance of the headquarters of Nigerian National Petroleum Corporation (NNPC) in Abuja thereby preventing the employees from resuming in their efforts to get its management to attend to their demands.
Specifically, PENGASSAN called for a declaration of emergency in the oil and gas sector and urged the incoming government to do everything possible to address the plethora of issues bedevilling the sector in order to ensure its efficiency.
PENGASSAN’s President, Mr. Francis Johnson said in a statement that there were many issues requiring urgent attention from the incoming government to reposition the industry for efficient and effective delivery of its benefits to Nigerians.
For NUPENG members, the Federal Government should assess more critically how the Nigerian Petroleum Development Company (NPDC) was being managed with a view to ensuring that the guiding laws and rules relating to the operations of the company are subverted.
The Assistant General Secretary of NUPENG, Mr. Adamson Momoh, said that the strike against NPDC, which is an arm of NNPC, would continue until the management sees reasons with the workers.
In Lagos, the effects of the strike started manifesting as long queues, which had abated since Monday, became more pronounced in filling stations as motorists renew their struggles to buy fuel.
The unions had given a notice, which expired last weekend, urging the Federal Government to reverse the transfer of operatorship of the Joint Venture, JV, partnership in OMLs 40 and 42 to Neconde Energy Nigeria Limited and Elcrest Exploration and Production Limited.
A statement from the JV partners said the shut-in has affected all NPDC operated assets in joint venture with indigenous companies that had applied for operatorship, except Neconde, which, prior to the crisis, had been awarded the operatorship of OML 42, and immediately got the Joint Task Force (JTF) to secure the assets.
Elcrest (OML 40), which is next in line to be awarded operatorship, Shoreline OML 30 and FHN/Afren (OML 26) have now been shut as oil evacuation is hampered from OML 34 which relies on the OML 30 pumping station.
NIGERIAN OIL WORKERS DOWN TOOLS OVER SALE OF OML 42
By: Thabile Manala
22 May 2015|16:47 GMT
OML 42 sale causes Nigerian oil workers to shut down official business and activities at the headquarters of the corporation.
These employees are demanding the reversal of the transfer to the Nigerian Petroleum Development Company (NPDC). They are against the operatorship of OML 42 by Shoreline Group and Neconde Energy Ltd.
Emmanuel Ojugbana, the spokesman for white-collar oil union Pengassan, told Reuters on Tuesday, "the shut down has not been done yet," but that they would take action if the government had not met with them by the end of the week.
According to CEO of Shoreline Group, Kola Karim, “There was never any sale of OML, the true position is very simple… NPDC, as the operating arm of NNPC, had some assets novated to them to take on the operations about three years ago."
“Benchmarking that to what is happening today, those assets have not been operated efficiently nor does NPDC have the required funding to make sure these assets are performing."
Karim argues that the unions were aware that assets which belong 100 per cent to NPDC, were not being adequately looked after therefore, why was the focus of their strike against assets divested to Shoreline.
He said that a company like Shoreline had the required technical ability and financial capacity to produce royalties and revenues for the government even in the face of dropping oil prices. However, it is “shocking” that unions do not want that.
According to reports, the Trade Union Congress of Nigeria has been pleading with the government to stop the continued scarcity of petroleum products.
TUC further advised the government to take concrete steps on the issue of local refining to put a stop to the problem of importation of petroleum products and payment of subsidy.
With the current decline in the oil price and Nigeria’s debt woes, Karim said that the government stands to gain more from this.
“Government needs to step in and see the reality,” emphasised Karim.
He cited an example of SEPLAT Petroleum Development Company.
“When picked up, the asset production was less than 15 000 barrels a day. With SEPLAT's technical positioning and financial capacity this asset is creating over 70 000 barrels a day.”
There seems to be a mismatch in the opportunities at hand and Nigeria being able to exploit the assets in building its cash reserves.
Shoreline has been closed down for days now and according to Karim the government has no choice because, “The domestic gas obligation is not being met which in turn tells you the power situation is going to get worse in parts of Nigeria”.
Strike by Oil Station Staffers Complicates Nigeria Fuel Shortage
Sun May 24, 2015 5:12AM
presstv.ir
A strike by Nigerian oil workers has added fuel to the fire in Africa’s biggest oil producer, Nigeria, amid months of an ongoing fuel shortage.
Unpaid staffers at oil stations refuse to work, gas stations are closed across the country, and roads have gone almost empty of cars.
Black market profiteers are selling the fuel at roadsides at four times the regulated 87 naira (40 cents) a liter.
Flights are being canceled at the Murtala Muhammed International Airport in the most populous city of Lagos one after another because no fuel is available this week.
At bus stations, out-of-fuel vehicles stand idle creating a challenge for staggering passengers.
Radio stations have also stopped their programs as well due to frequent power outages and the lack of fuel for generators.
Unpaid oil tanker drivers had already gone on strike earlier this month; other industry workers joined them earlier this week.
Nigeria produces more than two million barrels of petroleum a day but imports refined fuel because it does not have enough functioning refineries. The country regularly suffers fuel shortages, but the current countrywide crisis has been unprecedented.
Some critics say the fuel shortage in the oil-rich country is a scam to benefit oil suppliers and ‘corrupt’ government officials.
Nigeria Grounds Flights as Fuel Crisis Deepens in the Largest Oil Producing Nation in Africa
BY BENZAMIN
MAY 24, 2015
Majority of Nigerian airlines grounded flights as Africa’s largest oil producing nation comes to a virtual standstill due to the ongoing fuel crisis.
Nigeria is a nation that produces more than 2.5 million barrels of crude oil every day and yet this country is facing one of the most severe fuel shortages witnessed in recent times. According to the Nigerian National Petroleum Corporation, the country is actually producing more oil than it needs, but is still being forced to import fuel. This is because the country lacks adequate refineries to process the millions of barrels of crude oil it produces daily into fuel, to meet the needs of the 150,177 people residing in the country. “We are an oil producing country, very rich, a giant in Africa,” commented Seun Olewaleon, one of the many drivers carrying empty fuel cans in the streets of Lagos in hopes of ‘striking oil’. “But the experience we are getting now is so hard”.
Fuel in Nigeria is a very precious commodity as it is not used for cars and transport services only. Most Nigerians rely on fuel to power their generators for homes and businesses alike, since the country gets only a few hours of electricity a day. The crisis has been going on since March, as fuel importers claim that the Nigerian government is holding off from clearing their dues. The oil suppliers claim that they are the real ‘victims’ here, as they have been hit by multiple fronts simultaneously. With the Nigerian credit policy being tightened coupled with the low international oil prices and add to that massive amounts of unpaid government dues, which they claim to be around $ 1 billion, the oil tanker drivers had no choice but to go on strike.
The Nigerian government claims that the oil importers are using this shortage in fuel, to press home their demands of getting paid without letting the concerned authorities go through standard protocols to verify their claims before disbursing payment. “You have to verify the claims of the marketers before they are paid, and because the government is coming to an end, they are getting quite nervous,” commented Ngozi Okonjo-Iweala, Nigerian’s finance minister. She however insists that the government will not succumb to these lowly tactics and will ensure that the proper verification is done before paying the suppliers.
It remains to be seen what steps the Nigerian government takes to end the ongoing crisis that is crippling life in Lagos.
Nigeria's leading cellphone provider urgently needs diesel to prevent countrywide shut-down
May 24, 2015 | 2:16 p.m. EDT
By MICHELLE FAUL, Associated Press
LAGOS, Nigeria (AP) — Nigeria's leading cellphone provider said Sunday it urgently needs diesel to prevent shutting down services countrywide — the latest business hit by a months-long fuel crisis in Africa's biggest oil producer.
Many aircraft have been grounded with foreign airlines diverting to other African countries to fuel for flights abroad.
Some radio stations have been silenced.
Nigeria's woefully erratic electricity supply keeps businesses dependent on diesel generators. Nigeria produces more than 2 billion barrels of petroleum a day, but imports almost all refined fuel because its refineries aren't maintained.
The party of President-elect Muhammadu Buhari on Sunday accused President Goodluck Jonathan's government of deliberately wrecking the economy.
"The whole scenario reeks of sabotage," spokesman Lai Mohammed said in a statement. "Never in the history of our country has any government handed over to another a more distressed country: No electricity, no fuel, workers are on strike, billions are owed to state and federal workers, 60 billion dollars are owed in national debt and the economy is virtually grounded."
Buhari takes office on Friday.
MTN Nigeria, which has 50 million-plus customers, tweeted that cellphone service will start deteriorating in 24 hours if it doesn't find diesel. Some customers already are experiencing problems and Nigeria's landline network collapsed years ago.
"MTN's available reserves are running low and the company must source for a significant quantity of diesel in the very near future to prevent a shutdown of services across Nigeria," corporate services executive Akindale Goodwill tweeted.
The crisis began when oil suppliers, hit by tightened credit lines and unpaid interest, said the government owes them as much as $1 billion for fuel and subsidies going back to October 2014. They said they could no longer afford to supply fuel.
Oil tanker drivers unpaid by the suppliers started striking last week and were joined Thursday by other oil workers.
The government, reeling from halved international prices for petroleum that provides more than 80 percent of its revenue, is so cash-strapped it is borrowing to pay salaries, the finance minister said earlier this month.
Minister Ngozi Okonjo-Iweala denied the debt on Friday, telling journalists the suppliers are asking the government to pay their foreign exchange differential losses caused by the naira's slump from about 160 to the dollar in December to today's 218.
She accused oil suppliers of holding Nigerians to ransom and said she has asked the Central Bank of Nigeria to verify the figures because "there has been so much fraud allegations and scams in this business of oil marketing."
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