Between the government and oil marketers

Mrs Okonjo Iweala’s latest speech explaining Nigeria’s debt to the oil companies and how marketers despite being spoken to still shut down the country is an interesting one.

So, the main reason Nigerians have been subjected to long queues at the filling station was because government owed oil marketers ₦200billion, ₦159 of which is for foreign exchange differential – Whao, what a country indeed!

I think Mrs Okonjo-Iweala has sacrificed a lot but there is something seriously wrong here. Just listening to the video clip makes one cringe that there is a way that Nigeria turns smart, honest people to a complete joke.

Mrs Okonjo-Iweala claimed the government has not done anything wrong. In the same vein, she acknowledged that there was a fraud going on in the oil industry (well, Nigeria foetus knows that). But why do we let this lie for such a long time?

And for a country who chose to refine its oil overseas, why did no one thought of the impact of exchange rate before naira was devalued?

Then it makes me wonder, how many people in the government are involved in this oil business in the first place, just seems we are going in circles.

Enjoy the clip: 0 to 6:43 is worth the time I think.

 

 

 



Categories: Nigeria, Politics

Tags: , ,

8 replies

  1. The time when the price of oil was considerably higher, the government had ample opportunity to brake the stranglehold of the oil marketers. This is a key question that needs to raised and deserves an answer. Jonathan is not the only leader guilty of this, but now another crisis has surfaced during his presidency.

    I read that China has agreed to build 3 new refineries
    http://www.bbc.co.uk/news/10116945

    So with all these 3 refineries, people are saying this is not enough to fulfill the domestic need.
    – If this isn’t the case why can’t government look at innovative solutions to reduce domestic consumption?
    – Which sectors of the economy are consuming the most?
    – Why is this the case?
    – Can a solution be found to cut consumption?

    Uncontrolled and unplanned construction of oil refineries should be discouraged. The idea is to maximise the amount for export to optimise revenue. As things stand it appears not to be the case.

    Can Nigeria not build at least one refinery by itself? This is a matter of urgency, and yet we get pathetic excuses for chronic under performance.

    Minister Okonjo-Iweala is playing victim at the hands of the nameless and faceless marketers. The Jonathan administration should have had enough foresight and conviction at the beginning of it’s tenure, to construct domestic refineries as a matter of priority to stem the loss of revenue and free the country from being held to ransom at the hands of oil marketers. Instead they failed to do this and are crying foul, when the marketers are growing in confidence and greed. What did they expect? Failure to deal with a problem will only mean it will get worse, and this has surely happened.

    What we are seeing is mismanagement which has occurred before. Despite Nigerians being “well educated”, something as precious and finite as this resource is being abused for personal gain. The whole thing needs to be restructured and competent and honest people should run the oil industry.

    Liked by 1 person

    • Oh yea, Nigerians are aware that our problem did not start with Jonathan’s administration but I think the guy broke all the rules by inactivity on many serious issues – hope is that the new administration finds smart ways to get those with serious issues with pubic fund mismanagement to give accounts – things like this is never straight forward as it will be ‘gburu.’

      Nigeria, a few years ago bought back the refineries in PH previously sold to Dangote & Otedola – we can repair these and then expand the capacity, I think. Am sensing it is probably been left for too long that all the equipment there have been emptied out.

      Don’t understand many of the reasoning behind the oil transactions but just seem a bit odd that we had to leave others to refine our oil.

      I suppose we’ve shut ourselves on the foot given all of our offices and household depends heavily on imported diesel to run generators, same for the few manufacturing Co.

      Like

      • Do you think the government learned any lessons from re-purchasing it’s own refineries? I’m sure they must have made a massive loss. Has the government declared any measures to ensure that government assets are not sold so foolishly to enrich the mega-rich? I’m quite sure whoever was responsible for the bungle didn’t get sacked not to mention be thrown into prison.
        When government sells assets it sold ensure that there is a time-line by which those assets have to be utilised for the benefit of the state.
        In Australia you can buy residential land, and you can hold it for a period of time, after which if you’ve not built on that land it is seized by the local authority. I think Nigeria should look at this in regards to selling-off of public assets.
        One would have thought in this day and age, with all the education, this would be common knowledge to those in government, apparently not. It appears this lesson has not been learned.

        Liked by 1 person

        • Nah, no lesson learned. Otherwise we wouldn’t be in this state.

          And you are right with education, we like to dig for people with highest paper degrees but yet they all tend to have similar traits. I suppose where there is no accountability, easy to get away with mismanagement of public assets.

          Like

  2. I can’t wait for Buhari…. I am thinking of keeping a diary for the first time in my life

    Liked by 1 person

  3. Fola, the oil belongs to the Nigerian people. The government should be collecting royalties for it to benefit your country. Thank you again. It is good that you are bring this out for everyone to see.
    Leslie

    Liked by 1 person

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