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Technical Audit On Ajaokuta Steel Firm, Starts February, Says Minister …as National Assembly Asks Ministry To Return N2bn To Agencies

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NASS chamber

 

The Minister of Steel Development, Mr. Shuaibu Abubakar Audu, yesterday assured the nation that the technical audit on the Ajaokuta Steel Company Limited will start in February.

The technical audit would pave the way for the rehabilitation, completion and operation of the steel plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State, Nigeria.

The Minister gave the assurance when he appeared the National Assembly Joint Committee on Steel Development to defend his ministry’s 2024 budget expenditure and the 2025 Appropriation.

The Federal Government signed the Memorandum of Understanding (MoU) with the original builders of the Ajaokuta Steel Plant Messrs, Tyazhpromexport (TPE) and members of their consortium Messrs Novostal M and Proforce Manufacturing Limited to carry out the technical audit since September last year.

A member of the joint panel, who is the senator representing the Kogi Central Senatorial District, where the project is situated, Natasha Akpoti-Uduaghan, asked the Minister to give a definite date for the commencement of the technical audit.

Akpoti-Uduaghan said, “Hon Minister Can I ask a question, please? When was the MOU entered into? Which month? Can you tell us the month that the MOU on Ajaokuta was entered? “

The Minister responded by telling the panel that the document was signed in September last year.

Akpoti-Uduaghan then wondered why the Ministry hasn’t done anything four months after the MOU was duly signed.

She said, “We are now approaching the end of January. When will the technical audit start? When will it start? Because to me, I believe we should tackle that project wholesomely. Yeah. We need to start with a technical audit so that the buildup of repairs will commence immediately.

“Can you tell us when we would expect the Russians with their partners to commence the technical audit because time is going.”

Replying the Minister said, “I had a conversation with the Permanent Secretary this morning Wednesday) on the commencement date.”

He then directed the Permanent Secretary, Dr. Chris Osa-Isokpunwu to address the panel on the commencement of the technical audit.

Osa-Isokpunwu said, “Immediately after the signing of the Memorandum of Understanding, the Ministry commenced the procurement process for the technical and financial audit.

“Advertisements were made, time was given. The stage we are now is preparation to present it to the Federal Executive Council for approval.

“Once that presentation is made and the Federal Executive Council approves that project, then the technical audit will start.”

Not satisfied with the Permanent Secretary’s submission, Akpoti-Uduaghan interjected and demanded a definite date of commencement.

She said, “The Federal Executive Council sits every week. Are you guaranteeing Nigerians that at the next Federal Executive Council, the technical audit proposal will be approved?”

The Permanent Secretary replied, “What I would say at this point is that as soon as we get the ‘no objection’ to proceed to the Federal Executive Council by the Bureau of Public Procurement, we will take the memo to the Federal Executive Council.

“That will be based on the availability of slot for the presentation of memos at FEC. I do not run the Secretariat of FEC.

“However, once the Bureau of Public Procurement issues us the certificate of no objection, within 48 hours after, the Honourable Minister will transmit the memo to the Secretariat of FEC.”

Akpoti-Uduaghan asked him when the BPP would send the ‘no objection’ to the Ministry and the Permanent Secretary said only the Director General of the BPE, Ayodeji Ariyo Gbeleyi, could answer the question.

Still not satisfied with the answer to her question, Akpoti-Uduaghan said, “How long have you been expecting that no objection from BPP?”

“I need to know the timeline. How long has it been? Did you just submit the proposal last week? Or last month? Or two months ago? We need to know. Maybe it’s BPP we are going to hold responsible for delay of process.”

Osa-Isokpunwu said, “I’m not familiar with the processes of the Bureau of Public Procurement. We submitted our request for ‘no objection’ about two months ago. So Chairman, I don’t know if I can help you.”

The submission of the Permanent Secretary infuriated members of the joint committee and accused him of being lackadaisical with his approach to the whole issue.

The Minister quickly came to the rescue of the Permanent Secretary by accepting that the Ministry has been too slow on the matter.

Audu said, “Mr. Chairman and distinguished members, I think the feedback from the joint committee is loud and clear. The speed at which we are going through the process of getting a ‘no objection’ from BPP is too slow.

“I think that is the message that I’m hearing from the committee members. The feedback has been heard very loud and clear. I can assure you that I’ll continue to put the permanent secretary under a lot of pressure for us to get out the ‘no objection’.

“Perhaps, the methods and the way we’ve been following up is inadequate. We are going to put more gas to the pedal to ensure that the ‘no objection’ comes out.

“This is because it’s very, very important to Nigerians for the technical audit to start, particularly with the original builders and their Nigerian representatives.

“We have a lot more work to do in that regard. The Perm Sec has heard, directors of the ministries have heard very loud and clear that the joint committee on steel is unhappy with the pace at which we are processing the ‘no objection’ from BPP. So I want to appeal to your further patience.

“In the next few days, I can assure you that we’re going to ramp up efforts to at least get out the ‘no objection’. Today is 22nd of January. I believe before the end of the month we will get it.

“I’ll do everything humanly possible to ensure that it comes out so that we can get these things going. So I want to assure you that I’ll put the ministry under pressure. I’ll continue to put the Permanent Secretary under pressure.

“Everybody can hear me. Nigerians can hear me. The directors are all here. The person that liaises with BPP is here. The Permanent Secretary is here. All the most senior memberships are here.

“The pace at which we are getting, we are processing this BPP ‘no objection’ is too slow. We need to bring it out, latest by the end of January and we hope to get the FEC approval immediately.”

Meanwhile the Co-chairman of the joint panel, Hon. Zainab Gimba, said it was wrong of the Ministry to hold on to the funds of the agencies under it.

She subsequently directed the Minister to return the N2bn it was holding on behalf of the agencies under it, to them to avoid misappropriation.

Business & Economy

Pastor Reuben Initiative extols founder’s philanthropic gesture

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Pastor Reuben Wilson

 

By Idibhar Agadaga, Baylesa

The Director General Pastor Reuben Initiative for Good Leadership and Accountability (PRIFGLA), Eseimokumo Frank Soko has commended Pastor Reuben Wilson’s selfless contributions to the development of Bayelsa State and the Niger Delta region.

Speaking on an enlighment program on Royal FM, 95.5, Eseimokumo Frank Soko, highlighted Wilson’s commitment to education, noting that he has sponsored over 200 students across various universities in the region.

According to Soko, Wilson’s philanthropic efforts extend beyond education, as he has also provided monthly stipends to members of the Initiative ànd numerous individuals in need.

He particularly extolled Wilson’s selfless and sacrificial lifestyle which have positively impacted the lives of many Bayelsans.

He emphasized that Wilson’s charitable works is not limited to any particular political party or affiliation as beneficiaries come from diverse backgrounds including PDP, APC and Labour Party members.

On his part, PRIFGLA’s National Secretary and Special Adviser on Student Matters and Scholarships, Ogbomo Erepamowei, shared Wilson’s inspiring personal story, which has driven his passion for helping others.

Ogbomo noted that despite facing challenges in his own educational journey, Wilson has demonstrated remarkable resilience and generosity, supporting students in various institutions across the Niger Delta.

He added that over 200 students are under scholarship sponsored by Pastor Reuben Wilson in various universities across the Niger Delta region.

In a final statement, Soko expressed gratitude to Wilson, describing him as a “sacrificial leader” who has positively impacted the lives of those working with him.

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Business & Economy

Three Oil Coys admit owing FG over $5.5m  *As Reps Issue 2-Weeks Ultimatum For Payment

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By Our Reporter
Following the ongoing efforts by the National Assembly to generate revenue for the federal government, three major oil companies operating in Nigeria Chorus Energy, Dubril Oil company limited, and Belema Oil have all admitted to owing $5,543,491.45 to the Nigeria’s Federation Account.
This revelation came during Tuesday investigation by the House of Representatives Committee on Public Accounts prompted by the Auditor General’s annual report.
The committee heard detailed testimonies from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), presented by Mr. Balarabe Haruna, which outlined the outstanding debts of the companies.
According to NUPRC, the debts are as follows: Chorus Energy owes a total of $814,680.06 and N181,954,238.43, comprising $396,907.76 for crude oil by price and $417,772.13 for crude oil by production.
Dubri Oil owes $3,025,193.71, which includes $646,605.55 for crude oil by production and $2,378,588.15 for gas flare.
Eroton Exploration & Production owes $78,486,333.27, made up of $45,094,125.31 for crude oil by production, $33,392,207.96 for gas flare, and $916,027.00 for concession rentals.
Belema Oil owes $1,703,617.68, including $977,793.54 for crude oil by price, $511,870.14 for gas flare, and $213,954.00 for concession rentals.
In response, the Chief Financial Officer of Chorus Energy, Mr. Oluseyi Simon, explained that the company’s debt arose after an increase in the crude oil price rate from 0.5% to $3.5.
He noted that the company has consistently paid its liabilities and that it had already paid $5.3 million in 2024 alone.
Simon assured the committee that the remaining balance would be cleared before the end of the month.
Meanwhile, Mr. Clement, the Acting Managing Director of Dubri Oil, acknowledged the debt and explained that the company’s financial difficulties stemmed from a decline in production during the first quarter of 2024.
He emphasized that the company had been trying to mitigate the situation through workovers on its wells, but the efforts were unsuccessful.
However, Clement assured the committee that Dubri Oil planned to begin drilling new wells and, once production increased, would settle the outstanding debt.
He further revealed that Dubri Oil had been in discussions with the Economic and Financial Crimes Commission (EFCC) and had agreed to a payment schedule, with an expected resolution by the third quarter of 2025.
Belema Oil also confirmed the debt, citing operational challenges as the cause of the indebtedness.
According to the company’s Managing Director, Ahmad H. Sambk said Belema Oil had been unable to meet its production targets since August 2022 due to issues with the evacuation pipeline system, which had experienced significant leakages, leading to the loss of nearly 5 million barrels of crude oil.
These challenges had resulted in a complete shutdown of operations, preventing the company from fulfilling its financial obligations.
Chairman of the investigation sub-committee, Hon. Akinlade Isaq, expressed anger over the failure of oil companies to meet their financial obligations and stressed the urgency of retrieving the owed funds.
“Paying off these outstanding debts is not just a matter of financial responsibility, it is a critical step toward improving governance in Nigeria,” Isaq stated.
The committee then unanimously gave the oil companies a strict two-week ultimatum to settle their debts.
The committee also issued a warning to any oil companies that failed to respond to invitations for hearings, stressing that non-compliance would lead to severe repercussions.
In addition to the aforementioned companies, the committee also disclosed the indebtedness of other oil operators that failed to appear today as follows;
“For Conoil Producing, the company owes $3,884,308.56 for crude oil by production and $708,600.06 for Gas flare and $475,785.40, bringing the total to $4,592,908.62.
Continental Oil has a total debt of $57,053,842.22, which includes  $44,519,936.05 for crude oil by production, $12,533,906.17 for gas flare and $250,650.00 for concession rentals.
Enageed Resources owes a total of $15,001,089.91, consisting of $11,647,300.01 for crude oil by production, $3,353,789.90 for gas flare and $469,552.00 for concession rentals.
Energia limited owes a total of $19,260,982.13, made up of $6,675,524.25 for crude oil by price, $9,768,926.81 for crude oil by production,$10,208.89 for gas sales, $2,806,322.19 for Gas flare and $305,995.40 for concession rentals.
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Business & Economy

New Bayelsa Secretariat: Govt Appeals To Host Communities To Maintain Peace

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Gov Douye Diri of Bayelsa

 

By David Owei, Bayelsa
The Bayelsa State Government has appealed to the people of Yenagoa and Ovom communities currently locked in a dispute over ownership of the land, where the new 9-storey secretariat is sited, to sustain their age long unity and peaceful coexistence.

The Deputy Governor, Senator Lawrence Ewhrudjakpo, made the appeal at separate meetings with the leaders and critical stakeholders of both communities in Government House, Yenagoa on Tuesday.

Senator Ewhrudjakpo, in a statement by his Senior Special Assistant on Media, Mr Doubara Atasi, pointed out that there was no need for both communities to feud over the land as government had acquired it for development purposes several decades ago.

According to the Deputy Governor, every land acquired by government with compensation paid becomes its property, stressing that all the communities lying within 15-kilometre radius from Yenagoa make up the Bayelsa State capital.

While acknowledging the sacrifices being made by the communities hosting the state capital, he assured that government would continue to protect their interests by performing its corporate social responsibility.

Senator Ewhrudjakpo, however, warned that the present administration would not fold its arms and watch any community or group of people cause crisis to disrupt the prevailing peace in the state for whatever reason.

He particularly cautioned the youths of Ovom against the alleged unwholesome practice of going to ministries, departments and agencies to demand a change in the letterheads and signboards of MDAs to reflect Ovom.

His words: “There is no long-term benefit in conflict. People can disagree, but they can reconcile their differences through the roundtable.

“Yenagoa and Ovom communities have a long history of peaceful coexistence as two sister communities in the Atissa Kingdom in the Yenagoa Local Government Area.

“As communities in the epicenter of the state capital, Ovom and Yenagoa have made huge sacrifices, and they cannot afford to fight themselves over land already acquired by government.

“Our position is that none of the communities own the land of the project site for the new state Secretariat; the ownership of that land now belongs to the Bayelsa State Government by virtue of the Capital City Development Law.

“However, government will continue to protect the interest of the communities who have donated the lands for public use and development.

“We are also receiving reports that some youths of Ovom are going to ministries, departments and agencies demanding for a change of address to reflect Ovom. That attitude is not right, and therefore, must be stopped forthwith.

“We should all know that like any other capital city in this country, the name of Yenagoa has influence over all other communities lying within the 15-km radius of the state capital, and as such Yenagoa is reflected in all addresses.”

In her remarks, the Member representing Yenagoa Constituency 1 in the State House of Assembly, Hon. Ayibanengiyefa Egba, expressed gratitude to the state government for its swift intervention and called on the communities to embrace peace as brothers to foster development and progress.

Others who spoke briefly at the two meetings include the former Technical Adviser to the Governor on Conflict Resolution, Chief Boma Spero-Jack, Hon. Markson Fefegha, Chief Couple Anyamalem, Chief Stephen Abaribote, and Chief Loveday Abaribote.

Top government functionaries present included the commissioners for works, information, marine and blue economy, lands and survey, and that of community development.

Also in attendance were the Chairman of Yenagoa Local Government Area, Hon. Bulodisiye Ndiware, the Acting Surveyor General of Bayelsa State, Geku Tonye Margareth; the Technical Adviser to the Governor on Boundary Matters, Hon. Salem Vote, among others.

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