sweetcrude may 2013

LabourLabour 442013 May, SweetcrudeReports

WORKERS i n Nigerias Oil and G a s industry have raised alarm that no new investment has taken place in the Petroleum industry in the last five years because of non-passage of the Petroleum Industry, Bill, PIB, warning that Nigeria stands the risk of losing out as there a re new o i l discoveries all over Africa t h a t a r e d r aw i n g i n investors.The workers under the

aegis of the National Union of Petroleum and Natural Gas Workers, NUPENG, and its Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, counterpart, said Nigeria cannot afford the luxury of t ime while pol i t ic ians indulge in unnecessary bickering over such an important bill on a sector that accounts for over 90 per cent of the nations foreign exchange earnings among others things.At a joint briefing under the

u m b r e l l a o f NUPENGASSAN, a fusion of N U P E N G a n d PENGASSAN, the two bodies said PIB represented a great opportunity for Nigeria to ensure a solid foundation on which the future o f o i l and gas operations in the country would rest. Speaking on behalf of

NUPENGASSAN, President of PENGASSAN, Comrade Babatunde Ogun, recalled that the latest PIB was presented to the National Assembly first in July 2012, lamenting that from then till now, almost one year after, not much had been done by the lawmakers.According to him, the bill

was recently referred to ad-hoc committees after passing the second reading stage in both houses of the National Assembly. Even the Senate is yet to inaugurate its ad-hoc committee on the PIB w h i l e t h e H o u s e o f Representatives ad-hoc committee is still making preparations for public h e a r i n g . M e a nwh i l e , investors have continued to adopt a wait and see

Oil workers lament lull in petroleum industry over PIB

Eluonye KOYEGWAEHI

attitude, refraining from making any new investment pending the passage of the bill. Since 2009 when the YarAdua government first introduced the PIB, no new Final Investment Decision (FID) has been taken on any oil and gas project in Nigeria, not even on the government-promoted, Brass LNG project.While we are dithering in

Nigeria, there are new oil

discoveries all over Africa, drawing in investors just as new technology is making hitherto unreachable and uneconomic hydrocarbon deposits accessible in Europe and North America, thus attracting investors to those environments . Niger ia therefore cannot afford the l uxury o f t ime wh i l e po l i t i c ians indulge in unnecessary bickering over

such an important bill on a sector that is the main stay of our economy accounting for over 90 per cent of our foreign exchange earnings, about 40 per cent of the Gross Domestic Products (GDP) and 80per cent of government revenue.He said We believe that

the PIB represents a great opportunity for Nigeria to ensure a solid foundation on which the future of oil and gas operations in the country will rest. Also, that the petroleum resource which Nigeria have been endowed, work for the benefits of the Nigerian p e o p l e . A s c r i t i c a l stakeholders, NUPENG and PENGASSAN demand that the National Assembly expedite action on the passage of the bill. We can no longer wait. We believe that the objectives of the PIB and Nigerias national interest are best secured through transparency and

accountability, fiscal terms, institutional framework especially the role of the Minister, National Oil Company, NOC, Petroleum Host Community Fund, PHCF, and regulator ; r e f i n e r y a n d o t h e r Downstream Activities and L a b o u r I s s u e s a n d membership of Institutions, Boards and Committee.One of the major areas of

g r a v e c o n c e r n a b o u t Nigerias petroleum industry has been the opaque nature of the industry. Many processes and activities are shrouded in mystery that controversies usually arise even amongst government agencies on matters such as t h e c o u n t r y s d a i l y production or revenue arising there from. We have also had occasions when Nigerian Presidents and their Petroleum Ministers award lucrative oil blocks to themselves or their cronies.

An oil worker

We believe that the PIB represents a great opportunity for Nigeria to ensure a solid foundation on which the future of oil and gas operations in the country will rest


NATIONAL U n i o n o f Petro leum and Natural G a s Workers, NUPENG, has expressed concern over the worsening security situation in the country, lamenting incessant force majeure being dec lared by major o i l companies in the country, is unhealthy for Nigerias socio-e c on om i c g r ow th a nd stability.The union called on the

Federal Government to safeguard the lives and property of its citizens by putting a halt to the wanton l oss o f innocent l ives occasioned by terrorists insurgency and among others, arguing that these killings have not only dented

NUPENG expresses concern over force majeure by oil majorssays Nigeria degenerating into a jungleEluonye KOYEGWAEHI the image of the country

abroad, also, scaring foreign investors from Nigeria.NUPENG in a statement by

its President, Comrade Igwe Achese, said Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), i s worried about the incessant force majeure been declared by oil majors, especially Shell Petroleum Development Company and recently by Agip Oil Company in its oil fields in the Niger Delta due to illegal bunkering. The union read wi th consternat ion the shutting down of Italian Oil Firm, Agip swamp area oil f ields in Bayelsa which produces about 40,000 barrels of crude oil daily due to incessant wave of illegal bunkering and pipelines vandalism. The union adds that it is sad that Agip Oil Company was losing about

7,000 barrels of its crude production daily to oil thieves in Bayelsa State. NUPENG condemns the act of illegal bunkering and theft of crude oil as it is robbing the nation of the needed foreign exchange that should be used for developmental

purposes.The union re-iterates that

the f t o f the nat ion s resources, like crude oil is unpatriotic, criminal and fur ther degrades the environment, as they often leave the crude to spill into farmlands and waters. It

has been discovered that the destruction of the ecosystem in the Niger Delta region is as a result of wanton theft through bursting of oil p i p e l i n e s . T h e u n i o n vehemently condemns the illegal bunkering activities which have led to loss of colossal monies that should have gone into the federation account. The union calls on the federal government to overhaul the Joint Task Force operations (JTF), in its f i ght t o check i l l ega l bunkerers through a change of tactics. The traditional method of chasing and des t roy ing the s t o l en products has not reduced their activities, with the numerous pipelines that traverse the nooks and crannies of the Niger Delta region.According to Achese, the

union calls for effective surveillance and use of the l o ca ls t o moni tor the pipelines. The union also w a n t s t h e f e d e r a l g o v e r nm e n t a n d t h e International oil companies to engage modern day technology in monitoring areas where pipelines are tampered with and respond fast before any damage is done to the environment. The union appeals to the federal government to address the n a g g i n g p r o b l e m o f unemployment i n t he country, which is the major cause of their nefarious activities. It notes that for many years, the pipelines were there and nobody tampered with them, but, when we began to have an army of educated people without jobs, they turned to illegal activities.Apart f rom tackl ing

unemployment, the union wants the government to open up the region with good roads, bring in modern infrastructures to make the people have a sense of belonging, that they are not just been exploited, with noting to show for the oil that is on their soil. The union c a l l s o n t h e f e d e r a l government to engage the public private partnership scheme to establish factories, cottage industries that will keep the restive youths busy. I t a l s o a d d s t h a t empowe rmen t s c h eme should be launched and p r om o t e d b y t h e o i l multinationals and states governments to make some of t h e m g o i n t o s e l f -employment.

Comrade Igwe Achese stressing a point

The union called on the Federal Government to safeguard the lives and property of its citizens by putting a halt to the wanton loss of innocent lives occasioned by terrorists insurgency


THE umbrella b o d i e s f o r w o r k e r s i n N i g e r i a s p e t r o l e u m sector; National Union of Petroleum and Natural Gas Workers, NUPENG, and the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, have set up a joint Petroleum Industry Bill, PIB, committee to protect the interest of workers, push through the views the workers among others. Disclosing this, President of

PENGASSAN, Comrade Babatunde Ogun, said before PIB bill was forwarded to the N a t i o n a l A s s e m b l y , NUPENG and PENGASSAN had set up their separate PIB committeesAccording to him during

the Joint National Executive Council, NEC, meeting of NUPENG and PENGASSAN in November 2012 in Calabar, t h e s e s e p a r a t e P I B Committees of NUPENG and P E N G A S S A N w e r e consolidated into one body known as NUPENG and P E N G A S S A N J o i n t Committee on the Petroleum Industry Bill. The NUPENG and PENGASSAN Joint Committee on PIB together with the leadership of NUPENG and PENGASSAN have met with the Nigeria N a t i o n a l P e t r o l e u m Corporation, NNPC, and the p r o du c i n g c ompan i e s , organised an engagement session with all stakeholders to collate views and even had the benefit of working with consultants. We have done our work and we implore you to partner with us in propagating these proposals f o r the benef i t o f a l l Nigerians. Now it is time for the National Assembly to do its own work. Nigeria and Nigerians can no longer wait.Ogun said labour was the

most critical factor in the production process as such t h e P I B m u s t m a k e provisions that recognize and uphold the interest and welfare of workers, saying the PIB must accommodate

NUPENG, PENGASSAN set up PIB Committee on workers views, othersEluonye KOYEGWAEHI

the f o l l owing minimum requirements with regards to labour issues to garner NUPENGASSAN s f u l l support; ensure the mandatory recognition of the right to freedom of association and effective collective bargaining by all companies operating or doing business in the Nigeria o i l a n d g a s i n d u s t r y irrespective of where they are located, ensure that all companies operating in the Nigerian oil and Gas industry comply with all international labour conventions that have been ratified by Nigeria; the collective agreements with the labour unions and the extant labour laws as a minimum in all their dealings with the Nigerian workers and their representatives, ensure all workers in the NNPC and all other government agencies to be impacted by the PIB shall t r a n s i t t o t h e n e w companies/agencies on terms and c ond i t i ons no l e ss favourable than their present conditions. This is crucial to the successful takeoff of these agencies, the NOC and the PIB itself.

The PIB must also ensure proper arrangements be made that the liabilities of the NNPC and other agencies to their staff such as pensions to retired and existing employees are adequately provided for prior to the effective commencement date of the PIB and ensure that companies operating in the oil and gas industry do not use the PIB as a ploy to disengage Nigerians. To this end, the PIB should give the

regulatory agencies the power to protect the jobs of Nigerians working in the oil and gas industry such that no Nigerian will be relieved of his/her job without the approval in writing of the regulator. It should ensure all workers in the oil industry to be impacted by the PIB shall not be asked to leave service until a minimum of five years after transition.In addition after five

years, the Union must be involved in re-organization/ right-sizing cum negotiation of exiting staff. The PIB must ensure strengthening of the Nigerian Content Act and policies, especially as relates to labour, training and manpower development. A severance Fund should be set with NUPENG and PENGASSAN being part of the fund managers in the event of job losses which might arise at the onset of the PIB implementation. You will recall during the banking reforms process that government, especially the Minister of Finance and C B N g o v e r n o r s a i d emphatically that jobs wont be loss. But after the reform, the earlier assurances evaporated.With r espect t o the

membership o f boards created under the PIB, provision must be made for representation of one person each of PENGASSAN and NUPENG in all the boards and committees set up in the PIB.

The PIB must ensure strengthening of the Nigerian Content Act and policies, especially as it relates to labour, training and manpower development

Oil workers

LabourLabour 47

Eluonye KOYEGWAEHI

2013 May, SweetcrudeReports

The F e d e r a l G o v e r nm e n t says it will by June this year r e g i s t e r t h e ratified Maritime Labour Convention 2006 in Geneva, i n r ea l i sa t i on o f the designation of Nigeria as an exemplary maritime nation.Permanent Secretary in

the Federal Ministry of Labour and Productivity, Dr. Clement Illoh, dropped the hints when a delegation of the International Labour Organisation, ILO, led by its Country Director in Nigeria, Mrs. Chuma Mkandawire, visited the Ministry in Abuja.I l l oh , who spoke o f

government's commitment to the registration of the ratified Convention, said: "The Maritime Labour Convention 2006 is a convention that is very dear to us because it has to do with our seafarers and Maritime workers."The Maritime sector will

be a beehive of activities in view of the discovery of oil and gas in the sub-region. The earlier we push ahead to ratify this convention the better for all of us. Our work plan is to register the instrument in Geneva by June in realisation of the designation of Nigeria as an e x emp l a r y M a r i t im e Country".Appreciating the show of

solidarity of ILO team in visiting the Ministry, Illoh, who was recently deployed t o t h e L a b o u r a n d Productivity Ministry as Permanent Secretary, said he saw his deployment as a challenge to contribute his quota to the development of the Ministry and the r e a l i s a t i o n o f t h e Transformation Agenda of P r e s i d e n t G o o d l u c k Jonathan."My appointment as a

Permanent Secretary and deployment to the Ministry of Labour to me is kind of divine providence; I have a mission to achieve in this Ministry. I want to make some positive impact in spite o f the chal lenge," he asserted. Illoh called on the ILO and

stakeholders in the labour sector to assist in mobilising support for the passage of the Labour Bills, which had been in the National Assembly for years now, arguing that the passage of the Bills would help in addressing most of the developmental issues in the labour sector, and create the enabling environment for industrial harmony and job creation.Mrs. Mkandawiren, in her

s pee ch , d i s c l o sed p l ans b y t he international organisation to work with the Ministry of Labour and Productivity, towards reviewing the Policy on HIV/AIDS in Nigeria in line with Recommendation 200, aimed at preventing mother to child transmission.According to her, "the International

Labour Organisation in Geneva has recommended the review of the policy on HIV/AIDS to align with Recommendation

200 of ILO, in this regards our expert will be working with the Ministry. The f o c u s o n H I V / A IDS especially in Nigeria and other Africa countries is the prevention of mother to child transmission, at ILO we believe that mothers are not only in the house as there are working mothers, we like to see how the policy can address the issue as it affects working mothers".Continuing, the ILO

C o u n t r y D i r e c t o r commended the support of the Ministry, under the leadership of the Minister of Labour and Productivity, Chief Emeka Wogu, in terms of the Ministry's involvements in mutually beneficial projects to the country and the United Nations."I want to thank the

Ministry officials for their support and leadership in terms of involvement in

projects that are of benefit to both the Country and United Nations, major among which is the Flood Disaster Need Assessment. I am very proud to say that the Ministry played a crucial role and the report is now ready and has been submitted to the United N a t i o n s f o r o nw a r d submission to the Federal Government of Nigeria," she said.Mkandawire sought

a r e a s o f f u r t h e r collaboration that would enhance not only the Ministry 's soc ia l and economic mandate, but also in terms of programmes that were of mutual benefits to the Organisation and the Ministry, adding that the appointment of Dr. Illoh as Permanent Secretary in the Ministry was a step in the right direction in view of his expert knowledge of the Ministry.

Ship on the sea

Govt to register ratified Maritime Labour Convention 2006

The International Labour Organisation in Geneva has recommended the review of the policy on HIV/AIDS to align with Recommendation 200 of ILO, in this regards our expert will be working with the Ministry


Eluonye KOYEGWAEHI

NATIONAL U n i o n o f B a n k s , Insurance a n d F inanc ia l Ins t i tut ions Employees, NUBIFIE, says it has perfected plans to take on banks and other financial inst itutions that have developed penchant for unfair policies and practices, especially refusal to allow union and retrenchment w i t h o u t r e c o u r s e t o s ubs i s t i ng p r o c edura l agreement and labour laws and standards. NUBIFIE named Union

Bank of Nigeria, UBN, Plc Ecobank Plc, First Bank of

Labour threatens banks over unfair practices

Nigeria, FBN, Plc, among others, as well as insurance companies and other financial institutions as failing in this regard, saying it would confront them should they fail to jettison their perceived unfair labour practices. At a briefing in Lagos,

President of the union, Danjuma Musa, lamented that the union had for some times been having a number of challenges confronting it. He noted that some of the chal lenges were d i rect government policy induced consequences, while others were cumulative effects of inefficient supervision by regulatory authorities thus, encouraging or creating enabling environment for corporate mis-governance and

other In specific terms, denial of

workers their rights to freedom of association and to u n i on i sm , c o n t i nuou s arbitrary retrenchment of workers without recourse to collective agreement and

consultation with the union, deliberate subversion of reconstitution of the Joint Negotiation Council, JNC, by withholding support to N i g e r i a E m p l o y e r s Association o f Banks, Insurance and A l l i ed

Institution (NEABIAI) an umbrella organization for Employers in the Industry, exerting undue pressure on workers to meet-up with unrealistic deposit drive target, in the process and in some cases rendering or exposing workers to abuse and dehumanization with the attendant psychological trauma, have all become the hallmark of management practices in trying to achieve their corporate goals. Musa further lamented:

The understanding the union has always displayed i n t h e f a c e o f t h e s e challenges and more, has unfortunately emboldened various management to embark on various forms of unpopular policies against workers, on erroneous assumption that the union could not do anything in the face of the provocations. This is quite regrettable and, nothing could be further from the truth than this assumption. If the unions d e m o n s t r a t i o n o f understanding and maturity has been taken for granted by management the union is s e r v i n g n o t i c e t o management that the union is unequivocally committed to defend the rights of workers. In this regard, the wish to

s e r v e n o t i c e a l l m ana g emen t s b u t i n particular the following the managements; Union Bank Plc, Eco Bank, Plc, First Bank of Nigeria, Plc, to stop any further retrenchment of workers in the guise of per formance appraisal scheme, which is considered as defective and subjective by the Union. Review, in consultation

with the Union the cases of those workers that lost their jobs under the scheme. Stop forthwith any further sack of workers under the guise of performance appraisal.He added that all affected

banks should review the cases of those already retrenched under the policy, in consultation with the union. All other banks and insurance companies are advised in their own interest not to embark on any form of policy that would involve loss of jobs without recourse to collective agreement or consultation with the Union, failing which appropriate action would be taken against them.

All other banks and insurance companies are advised in their own interest not to embark on any form of policy that would involve loss of jobs without recourse to collective agreement or consultation with the Union

Banking hall

Solid MineralSolid Mineral 492013 May, SweetcrudeReports

The Fed e r a l Government has vowed to curtail illegal m i n i n g activities around the country in order to ensure more revenue accruing from the sector as well as enhance the position of solid minerals mining in the country. To this extent, the Ministry

o f M i n e s a n d S t e e l Development has procured a n d d i s t r i b u t e d s i x surveillance vehicles to enhance the monitoring activities of mines officers at different mines sites across the country.The Minister of Mines and

Steel Development, Arc. Musa Mohammed Sada who c ommiss i oned t he s i x s u r v e i l l a n c e v e h i c l e s

Govt moves to curb the activities of illegal miners

yesterday in Abuja said that the Landrover vehicles which were purchased at the rate of 8.5 million naira each can access mines sites which other vehicles cannot get into.Arc. Sada said, The purpose

of the vehicles was the fact that they were the standard mining vehicles anywhere in the world, and there was the need to have one in each state of the federation to ensure proper monitoring.He noted that one of the

p rob lems h inder ing the regulatory operation in the minerals and metals sector was the inability of mines officers to get into the far and remote areas where illegal mining operations are prevalent, adding that if we are able to get any fund intervention from the government, we will be able to buy a large number of vehicles so that every state of the

federation can have one.While fielding questions

from newsmen, the Minister a s s u r e d t h a t p r o p e r maintenance of the vehicles had already been put in place with the maintenance agreement reached with the company that supplied those

vehicles.While presenting the

bunch of keys to the surveillance vehicles to the Southwest Zonal Mines C o o r d i n a t o r , E n g r . Emmanuel Alagada on behalf of other beneficiaries, the Permanent Secretary in

the Ministry, Mr.Linus Awute said the Ministry appreciated the herculean task faced by Mines officers in reaching the mines sites in order for them to carry out the monitoring of mining activities.T h e P e r m a n e n t

Secretary said efforts of the ministry are in top g e a r i n p r o f f e r i n g s o l u t i o n s t o t h o s e militating problems facing the mining operations in t h e c o u n t r y .He added that this gesture was aimed at increasing the revenue accruable to government from the m i n i n g o p e r a t i o n s , enhancing the regulatory f u n c t i o n s o f t h e government as well as reducing the rate of illegal mining operations in the country.He expressed optimism

that more surveillance vehicles were coming and that the ministry was being properly positioned t o w a r d s t h e diversification of the economy of Nigeria.The South West Zonal

Mines Coordinator, Engr. Emmanuel Alagada who received the bunch of keys to the vehicles on behalf of o t h e r b e n e f i c i a r i e s thanked the government for the kind gesture.He said that illegal

miners are in trouble and the presentation of the vehicles would go a long w a y a t p r o m o t i n g operational activities at the sites, increasing revenue generation while t h e m o n i t o r i n g o f explosive storage facilities will also be enhanced.The first batch of mines

surveillance vehicles were distributed to Zamfara and Ogun States and Federal Capital Territory, Abuja.

Illegal miners

OSCARLINE ONWUEMENYI Illegal miners are in trouble and the presentation of the vehicles would go a long way at promoting operational activities at the sites, increasing revenue generation while the monitoring of explosive storage facilities will also be enhanced


With th e r e c e n t launch of the Road Map for the Development of solid minerals and metals sector document by the Minister of M i n e s a n d S t e e l Development, Arc. Musa Mohammed Sada, all seems set for an upward trajectory for the sector which has hitherto played second fiddle to oil and gas as a major source of revenue and contributor to growth of the national economy.The launch came barely a

year after the minister p r e sen ted t he M in ing Regulations document and commissioned the new headquarters of the Mining Cadastre Office, which is c o n s i d e r e d t h e ma j o r administrative hub for mining operations in the

Solid minerals industry charts way forward

country. Indeed, the flurry of activities

within the sector may smack of an attempt to impress, but there is no doubt that these events would mark the beginning of a long process to overhaul the sector and place the country among the elite mining countries in the world.According to government

o f f i c ia ls , the des ire f or diversification of the national

economy away from over-dependence on oil and gas as the pr incipal revenue sources gave rise to the evolution of the Road map, with a view to transforming the minerals and metals sector into a catalyst for growth.Some of the targets of the

R o a d m a p i n c l u d e increasing the sectors contribution to the nations

GDP from the current 0.4 per cent to at least 5 per cent in the next couple of years and 10 per cent by 2020. It also aims to create about 3 million direct and indirect jobs by the year 2015 by facilitating the production of coal needed to fire coal-fired power plants that are expected to contribute about 30 per cent of the nations power generation by 2020.Other targets are to

revitalize the entire steel sector for the operation and production of 3 million tons of liquid steel per annum by 2015 and 12.2 million tons of liquid steel per annum by 2020. Also, if implemented faithfully, the nation may hope to become a regional and global producer of a lumin ium and s t ee l products with a target of 100,000 tonnes per year of primary aluminium and 3 million tons per year of steel

products by the year 2015.It also aims to achieve

enhanced capacity to supply 50 per cent of the skilled manpower required for all segments of the minerals and metals sector, as well as produce geological maps on a scale of 1:100,000 covering the entire nation by the year 2020.By the launch of the

document in Abuja the F e d e r a l G o v e r nmen t seemed to have signalled its determination to chart a veritable course for the growth and expansion of m inera l s and m in ing activities in the country may have removed al l the encumbrances militating against investment in the mining sector with the unve i l i ng and pub l i c presentation of the 2011 m i n i n g r e g u l a t i o n s document. In the words of the Minister of Mines and Steel Development, the Road map would streamline activities in the mining sector. Furthermore, Sada noted

that stakeholders within the industry need not blame the banks and investors who had been reluctant to offer credit facilities to investors, explaining that the absence of clear guidelines which would coordinate activities in the industry was until now, lacking. All our efforts t o r e f o rm the s e c t o r including the launch of this d o c u m e n t a n d t h e introduction of new mining regulations are to ensure t h a t i n d i s c r i m i n a t e decisions do not exist. The R o a d m a p a n d t h e regulation document are both requirements if the sector must move forward with boldness. Thus, you cannot blame investors and banks for developing cold feet because the rules of the games are not clear, he said. H e a d d e d t h a t t h e

unveiling of the document would restore confidence in the mining sector, adding that the issues of illegal mining were largely due to absence of the mining Road map which explains what to do. Sada further explained that although the country had the Minerals and Metal Act since 2007, there was no i n s t r u m e n t o f implementation. We have realised that the regulation was one of the things the investors were clamouring for, he noted.

Local miners tunnel

Some of the targets of the Road map include increasing the sectors contribution to the nations GDP from the current 0.4 per cent to at least 5 per cent in the next couple of years and 10 per cent by 2020


The World Bank has declared as satisfactory the implementation of about $120 m i l l i o n S u s t a i n a b l e Management of Mineral Resources Project for the revitalization of Nigerias minerals and metal sector.The Bank, with all it's

meticulous vetting and a s s e s s m e n t o f i t s programmes and projects in d e v e l o p i ng c o un t r i e s , u n a b a s h e d l y p r a i s e d Nigeria's shot at a mining renaissance three decades after the demise of the sector. But, the commendation was largely anchored on what the bank regards as the prudent and judicious use of a $120 million grant it had extended to Nigeria as an incentive to resuscitating Nigeria's solid minerals sector.The grant, known as the

Sustainable Management of Mineral Resource Project (SMMRP), is a home-grown intervention which was conceptualized after a National mining Policy dialogue in 2004. It became effective in April 2005 and was implemented through a seven-year period with an original closing date of June 2010. But the World bank granted an extension as compensation for some implementat ion de lays which occurred earlier in the life of the project.The $120m credit which has

a 30-year repayment term w i t h a 0 . 7 5 p e r c e n t commission was taken as p a r t o f g o v e rnmen t s emphasis on developing the non-oil sector to diversify the economy. It also conforms to the World Bank Group 2004 Joint Interim Strategy for Nigeria which was aimed at i m p r o v i n g e c o n o m i c governance, creation of conditions for rapid private sector-led poverty reducing growth and enablement of local communities to take c h a r g e o f t h e i r o w n development.However, according to the

agreement, the Federal government is expected to pu t i n $7 m i l l i on a s counterpart funding, which sadly, till date, it has not.In a document entitled:

I m p l e m e n t a t i o n , Completion and Results Report, the global bank noted that in all the 15 financial and procurement

World Bank appraises Nigerias application of $120m mining credit

Oscarline ONWUEMENYI

audits conducted between the inception of the project in 2005 and its conclusion in May 2012, the SMMRP was satisfactory in all except the audit conducted in March 2007, in which it was rated moderately satisfactory.The document jointly signed

by the Vice President of the World Bank, Muktar Diop, Nigerian Country Director, Marie Nelie, Sector Manager, Christopher Sheldon, Project Team Leader, Ekaterina Mikhaylova, and the Primary Author, Sabine Cornelius,

de fended the overa l l satisfactory rating of the Federal Government s Project Management Unit (PMU) which handled the p ro j e c t , n o t ing tha t , Despite the multiple d i s r u p t i o n s a n d considerable constraints, the Project continued to function well.It further revealed that in

the financial management of the credit, all audits were unqualified and cases of fraud were uncovered,

a d d i n g t h a t d u r i n g implementation of the procurement, two-thirds of p ro ject s procurement performance ratings were mostly satisfactory.The report commended the

Federal Government for taking over the funding responsibility of SMMRP-supported projects such as the Mining Cadastre Office and the Nigerian Institute of Mining and Geosciences, NIMG, Jos.The Project which was

flagged off in April 2005 had two main objectives, namely to increase governments long-term institutional and t e chnica l capac i ty t o manage Nigerias mineral resources in a sustainable way, and to establish a basis for poverty reduction and rural economic renewal in selected areas of the country through the development of i n c o m e g e n e r a t i n g opportunit ies through small-scale and artisanal mining and diversifying

away from oil sources of income.According to the report, the

project achieved improved g o v e r n a n c e a n d transparency outcomes in the well-performing state-of-the-art cadastre system, efficient management of m i n i n g l i c e n s e s , strengthened institutional and technical capacity, legal and regulatory framework as well as private sector-led development, increased mining ac t iv i t ies and increased annual royalty collection value among others.The bank observed that the

SMMRP has strengthened t h e c a p a c i t y o f k e y government institutions to better manage the sector. It h a s a l s o i m p r o v e d g o v e r n a n c e a n d transparency which is largely responsible for the commendable inflow of foreign investments into the sector.

The bank observed that the SMMRP has strengthened the capacity of key government institutions to better manage the sector. It has also improved governance and transparency which is largely responsible for the commendable inflow of foreign investments into the sector

Mine site


Pr e s i d e n t G o o d l u c k J o n a t h a n , Thursday, said t h e F e d e r a l Government has worked out an industrial blue-print that will see to the complete development of the nations iron and steel industry.This, he said will serve as a

catalyst for the industrial development of the country.Jonathan, who spoke at the

commissioning the 700,000 tonnes 5-Stand Tandem Cold Rolled Steel Plant, built by Wempco Steel Mill Limited at Ibafon, Ogun State, said the country would be producing about 12 million tonnes of liquid steel by 2020.According to him, steel was

one of the most important materials used widely for both domestic and industrial purposes throughout the world, and that was why the government planned to d e v e l op t h e c omp l e t e ecosystem of this sub-sector.He disclosed that his

a d m i n i s t r a t i o n h a s approved the Minerals and Metals Development Road Map, which was recently presented to the public st ipulating t ime-bound targets for the sector, and p o i n t ed o u t t ha t t h e strategies to be adopted w o u l d s e e t o t h e accomplishment of the set objectives of increasing steel production of three million tonnes of liquid steel by the end o f th i s year and progressively increase to 12 million tonnes by 2020.He described the new steel

plant as the single largest private sector investment in the steel sector, and a another milestone in our determination to reposition our steel sector to play a pivotal role in our match towards industrialisation a n d n a t i o n a l transformation.H e c o mm e n d e d t h e

management of WEMPCO for its efforts in building the plant. By constructing this 700,000 metric tonnes per annum cold rolled steel here to compliment your existing investments in the country, Wempco has demonstrated strong belief and confidence in our economy. I thank you for keeping faith in our country.Steel is at the heart of any

n a t i o n a l e c o n o m i c development endeavour. As we all know, a vibrant steel

Nigeria to produce 12m tonnes of liquid steel by 2020

sector contributes to GDP growth, facilitates exploitation of natural resources and generates economic activities in downstream industries, the president said.He continued: It also

promotes job creation, the acquisition of technical skills, transfer of technology and the provision of machine parts and tools. In fact, no nation can industrialise without a vibrant iron and

steel sector. W i t h i n c r e a s i n g

g lobal isat ion and the g r o w i n g s t r a t e g i c importance of Nigeria as a key emerging market, we are determined to provide

the necessary incentives and support for the growth of the private sector. The steel sector o f fers immense economic opportunities for our country, which we have not fully exploited.

Liquid steel

he Minister of M i n e s a n d TS t e e l

Development, Alhaji Mohammed Sada, said that the Ajaokuta Steel Company would s o o n r e s u m e production.The minister made

this known at the Ministerial Briefing of m em b e r s o f t h e Peoples Democratic

Ajaokuta Steel Company will resume production soon Minister

Party , PDP, Nat iona l Working Committee, NWC, on the ministry`s activities in Abuja On Thursday.The minister, who said he

met nothing on ground when he assumed office, said that the ministry generated N60 billion as revenue through mining activities.He said that 34 mineral

types existed in different locations in the country, adding that there was no

local government in the country that did not have mineral deposit.Sada further said that

Nigeria had coal estimate reserves of over 2.7 billion, I r on O r e 1 0 b i l l i on , limestone 3 trillion tonnes and one million ounces of gold.The minister, however,

said that funding was a constraint to the ministry, adding that the ministry got

only N1.6 billion out of the N2.16 billion budgeted for it in 2012.H e a l s o s a i d t h a t

inadequate manpower, lack of adequate mining special p u r p o s e s u r v e i l l a n c e equipment for field work and revenue collection and monitoring were other challenges facing the sector.Other challenges, he said,

w e r e i l l e g a l m i n i n g activities; smuggling of minerals and lack of legal and regulatory framework for the steel sector.

FreightFreight 552013 May, SweetcrudeReports

The N i g e r i a C u s t o m s Service, NCS, h a s c o mm e n c e d enforcement of the use of Tax p a y e r I d e n t i f i c a t i o n Number, TIN, and the Nigeria Integrated Customs Information System, NICIS, trade portal for the purpose of clearing cargoes at the port.But, the development has

generated confusion and mixed reaction at the port, mostly due to the non-preparedness o f many importers who are yet to get their TIN.S w e e t c r u d e R e p o r t s

gathered that many freight forwarders whose importers do not have the TIN number have had their business stalled at the port since the enforcement began, and consequently could not clear their cargo from the port.It would be recalled that the

Nigeria Custom Service had a l s o r e c en t l y wa rned importers and issued a deadline of March 31, 2013 for those who are yet to get the TIN.S p e a k i n g w i t h o u r

c o r respondent , f o rmer chairman of the PTML chapter of the National Association of Government A p p r o v e d F r e i g h t Forwarders, NAGAFF, Mr. Ugochukwu Nnadi, said that there is anxiety at the port because the new portal by the Federal Inland Revenue Serv ice , F IRS, i s no t accepting declarations and Customs is finding this difficult to deal with.Nnadi sa id that the

situation has slowed down the pace at which cargoes are being exited from the port since the commencement of the enforcement of the TIN.For most part of the day,

the system could not access any declaration at the port,

Confusion, mixed reactions as Customs begins enforcement of TIN

Toju VINCENT

the FIRS portal was not opening and everybody was being asked to produce TIN, he said of the experience on a particular day, recently.He stated that instead of

placing a blanket ban on everyone who does not have

TIN, the rule should be enforced only on corporate organisations and that the Value Added Tax, VAT, should be the basis for any individual transactions.He narrated a particular

experience: A student from

abroad sent in a car and I wanted to clear it, but they are insisting that she must have TIN. She is a student abroad, how can she be forced to get TIN.The second incident

concerns a widow whose

family in the UK was sending a car for her convenience. Where will she get TIN? he queried.However, in his reaction,

former chairman of the Tin C a n C h a p t e r o f t h e Association of Nigerian Licensed Customs Agents, ANLCA, Mr Kayode Farinto, threw his weight behind the government on the issue of TIN registration.You cannot use my TIN if I

am not the importer . Wealthy Honey has its TIN and I have my own as an i nd i v i dua l . C o rpo ra t e organisations have theirs, and individuals have theirs. If I am not the importer, I will be stupid to use my TIN for somebody elses cargo when I dont even know what is ins ide the cargo , he explained.Farinto said that the

introduction of TIN was the best thing for the Nigerian economy despite the teething problems that are currently being experienced with it. He also said that the processing fee of N1,500 for the e-form M is acceptable compared to what was obtainable in the processing of the manual form M.

i g e r i a s import b i l l Nexperienced a

43 per cent drop to $35.4 billion in the last one year , according to Renaissance Capital, RenCap.The investment and

finance firm said in a report that the import bill was equivalent to 13 per cent of the national G r o s s D o m e s t i c

Nigerias import bill drops 43%With agency report Toju VINCENT Product, GDP, for last year.

The decrease in imports, according to the firm, was across all sections, as machinery and transport equ ipment , N iger ia s biggest import segment, declined 63 per cent, following modest growth of two per cent in 2011.RenCap stated that the

data showed a slowdown in f ixed investment and g r owth , n o t i ng t ha t Nigerias trade surplus surged 75 per cent to $105.9

billion, which is 39 per cent of GDP, based on the National Bureau of Statistics, NBS, trade data.The firm posited that the

surge in trade surplus largely explains the increase in the nations current account surplus to 7.5 per cent of GDP in September 2012, as against 3.6 per cent in 2011.RenCap stated: We expect

revisions to the import numbers. We find it odd that while imports declined

a c ross a l l c a tegor i es , unspecified imports swelled 600 times to $12 billion in 2012. Unspecified imports surged from less than one per cent of total imports in preceding years to 31 per cent in 2012.We are likely to see a

s ignif icant revision of imports by categories as seen in the downward revision of the errors and omissions negative balance in the 2010 balance of payments.

Comptroller-General Dikko Abdullahi


The prevailing dire security s i tua t i on i n N i g e r i a h a s i n s p i r e d a parley in Lagos between the Nigerian Ports Authority, NPA, Security Department and the Ports Authority Police Command, PAPC, aimed at fashioning out ways to ensure adequate security for Nigerian ports, the famed gateway to the nation's economy.Executive Director, Marine

and Operations, NPA, Engr. David Omonibeke, who presided over the meeting as chairman, said the authority appreciated the crucial roles of the PAPC, and will c on t inue t o cu l t i va te , maintain and sustain a mutual working relationship with the command.No t ing t ha t w i thou t

security, lives and property w e r e a t g r e a t r i s k , Omonibeke assured the PAPC that the NPA would continuously support the command by providing

TERRORISM SCARE: NPA security, police close ranks to secure portsnecessary logistics to enhance its operations.Omonibeke, who commended

the new Commissioner of Police, PAPC, Mrs Sherifat Disu Olakoju, for her inspiring actions since assuming office, said that a remarkable change has been noticed at the ports since her coming.In his remarks, the General

Manager, Security, NPA, Col. Jamil Tahir (rtd), explained that the NPA management convened the meeting to map out strategies to confront the present security challenges facing the country. Tahir asserted that, while

the nation's seaports had not witnessed terrorists attack,

owing, according to him, to the vigilance of security agencies, there was need for synergy among security agencies in order to prevent any security breaches.Also speaking, the Ports

Police Commissioner said that she toured the Lagos ports shortly after her assumption of duty and discovered that a lot needed to be done to improve security at the facilities. She solicited NPA's support in t h e a r ea s o f ma r ine training, provision of patrol vehicles, accommodation, communication gadgets, sniffer dogs, among others.Also at the meeting from

the NPA were the General Manager, Western Ports, Ms. Adenike Sonaike; General Manager, Eastern Ports, Engr. Sunny Nwobi; Assistant General Manager, Security, Western Ports, Mr. Sam Asamage; and heads of security from the various ports.A p a r t f r o m t h e

commissioner, the PAPC team comprised the Deputy Commissioner of Police, two Assistant Commissioners of Police and all the Divisional Police Officers, DPOs, from the various ports.Industry analysts aver

that the synergy between t h e N P A S e c u r i t y

Department and the PAPC may yet put lie to the assertion by the Consular-General at the United States Embassy , Mr . J e f f r ey Hawkins , a t the just -concluded Nigeria Maritime Expo, NIMAREX, 2013, that t h e r e i s n o e f f e c t i v e collaboration mechanism for the various actors in the Nigerian maritime industry at both the strategic and tactical level.Hawkins, who harped on

what to him was the poor state of security of Nigeria's mari t ime domain, had lamented that "when players on the same team don't talk with each other, nothing p r o d u c t i v e c a n b e accomplished."

h e N iger ian Mar i t ime Administration and Safety TAgency , NIMASA, has

warned the public against a web-based syndicate using its name to defraud unsuspecting Nigerians by inviting employment applications from the public to fill vacancies in the agency.The Agency dissociates itself from

the unauthorised syndicate and all internet-related activities of the group, including the payment for employment forms and processing fees, NIMASA said in a public notice.The agency said that its recruitment

exercises were always advertised in the national dailies, its in-house newsletter and website.Any person or group of persons

patronising this unauthorised syndicate do so at his or her own risk as the agency has not commissioned any persons/consultants to conduct recruitment exercise on its behalf at this time.Members of the public are also

informed that there is no organisation or agency under the Federal Ministry of Transport known as Nigerian Maritime Security Agency, the NIMASA public notice stated.

Fake recruitment agency hitsNIMASA

Terrorism act


The Niger ian C h ambe r o f Shipping has u r g e d l o c a l players in the oil and gas industry to arm themselves with as much knowledge as possible so as to compete favourably with foreigners operating in Nigeria.Speaking at a four-day

w o r k s h o p t i t l e Understanding the Cabotage and the Local Content laws in the Nigerian Oil and Gas industry, the Chambers President, Mrs. Ify Akerele Anazodo said that having a good knowledge of laws and t h e i r a p p l i c a t i o n t o operations in the oil and gas industry will make it easy for local operators to operate

Chamber of Shipping harps on knowledge for better performance

Toju VINCENT more effectively in the sector. A c c o r d i n g t o h e r ,

government could ensure that jobs that were available in the industry were made more easily accessible to local companies without problems.She advised that these jobs

could be done in such a way that the foreigners in the industry were not affected in any way.Government can in subtle

manner make sure that Nigerians are exposed to jobs that are available. That is how government can help, but you do not impose it. These foreigners are joint venture partners, but with the local c o n t en t , y ou c an g i v e Nigerians the right of first refusal.For Nigerians to do well

upstream they need a lot of knowledge, patience and perseverance, we have the

laws that are protecting us within the medium scale area, that is the local content law, it is picking up, Nigerians are beginning to manufacture things that the International Oil Companies are buying, she said.A l s o s p e a k i n g , t h e

chairman of the Onne Oil and Gas Free Zone, Dr. Chris Asoluka, said the f undamenta l s o f t h e industry was currently in favour of Nigeria, adding that it would be in the interest of Nigerians to take advantage of the situation

and make the best of it.H i s w o r d s : T h e

fundamentals tend to favour us. We are a maritime nation with over 853 miles of coastal waters , a very young population, good market, and we are a great importing nation as well.A lot of activities go on in

the oil and gas industry, some of these activities will require e i ther coastal shipping or ocean bound shipping.The policy framework is

being established, it is not perfect for now, but, I am also challenging the stakeholders to bond together so as to make their voices heard because at the policy level, there are many competing interests. The earlier you started to make your interest look important, the better for everybody

Cargo Ship

A lot of activities go on in the oil and gas industry, some of these activities will require either coastal shipping or ocean bound shipping


We never dreamt well do well in Nigeria Nationwide Group

The Nationwide G r o u p h a s assisted the growth of the N i g e r i a n economy with $600 million (N57 billion) in loans to operators in the maritime and oil and gas industries for the purchase of vessels for the execution of various p ro jec ts . The Group ' s President, Mr. Ed Kostenski, in this interview with Toju Vincent says doing business in Nigerian has been very exciting

Excerpts:You are involved in

virtually every sector of the Nigerian economy, w h i c h p a r t o f t h e e c o n o m y a r e y o u strongest?The people who help us to

run our operations in Nigeria are our strongest asset, but, I will say that for Nigeria and Nigerian business, finance is a leading factor for strength here because we are adding growth to the country by providing interest on loans at single digit for companies to be able to grow their businesses and enterprises.I think that is the most

important thing the country needs to take into the next century in a way that everybody benefits not just a few.

How much has the Nationwide Group spent in assisting the growth of the Nigerian economy?We have not done too badly.

We have raised over $600 million (N57 billion) in five years in fresh fund capital. We brought that much into Nigeria to invest into projects in low interest loans to the oil and gas sector, to the agricultural sector, the construction sector, hotel and tourism, aviation and maritime sectors.How involved is the

Group in the maritime sector?We are involved in the

maritime sector as much as we are in oil and gas. I must say we are pretty open for any opportunity in the maritime sector. We provide finances for companies that want to acquire marine vessels, tug boats, security boats barges, oil tankers, work boats and crew boats, and whatever they need to facilitate, whatever projects that they have.We will help them to get the

contracts financed if the

contracts are strong enough on paper or they give us a reasonable assurance of re-payment, then our Group will take a risk and make loans available for the acquisition of sea-going marine vessels.We are a very important part

of the maritime sector because we are bringing money and guaranties they are not able to get anywhere else.What in formed your

decision to come into Nigeria, considering the risks?Well, I can answer that

question in two ways. One is that we hear about Nigeria as an opportunity, but, one is afraid to come to the country because it is about nine thousand miles away from Florida, where I come.You consider the bad publicity

about Nigeria, you consider the scams, you are not sure and people who come here for the first time is not sure which way is left or right.So, Nigeria can be a confusing

place to an entrepreneur that is used to playing in a more structured economy, so, if he is not creative or a risk taker, and

not someone who has an open mind, he probably will not make it here in Nigeria because doing business in Nigeria is not for the faint or the weak .It is for people who

understand that if you want

to make it, you have to take some calculated and stupid risks. We have not lost any money so far because we check people out before we give them our monies.If you are working with

good people, you will be in safe hands and you learn as you go, and if you do not do a good job , people wi l l naturally not patronise you, whether you are in China or South Africa or Hawaii.Nigeria is not a dumping

ground for junk, for people who want to make quick dollar, it will not work, but, if you have that willingness and concern for the people to provide goods and services, you will be surprised that

you will grow and rise as the economy grows and rises, and you will prosper here.It is astonishing to know

that we have done so well; we never dreamt that we will do so well in Nigeria.At a point the business in

Nigeria was one per cent of our total revenue, but, it is five per cent of our revenue and the main reason why the Nationwide Group has prospered is because of our commitment to Nigeria and the willingness to stay in here.Like I said, it is not the

easiest place, but it is a fun place to do business, the people are humorous, they are beautiful and the most thing I like about Nigerians is that they have a lot of faith and they do have faith in each other and they believe nothing is impossible.And when you have enough

people agreeing to that, then nothing is impossible.Is Nigeria the only

c o u n t r y w h e r e Nationwide operates in Africa?No, the Group currently

operates in over 70 countries of the world in the last 30 years. Asia was a very big market for us in the 1980s, then in the 1990s we focused on the United States economy because it was very robust and strong and at the turn of the century, we s t a r t e d s e e i n g s om e prospects in Africa, and started devoting more time and energy on the emerging markets in Africa.But, there is something

about the Nigerian market. I must say that I have been to 25 countries in Africa, there is quite a difference in the Nigeria market when you compare them.To me as an American, as a

person who is used to a structured economy, it is easier to do business in Nigeria than other countries in Africa.

Mr. Ed Kostenski

We are a very important part of the maritime sector because we are bringing monies and guaranties they were not able to get anywhere else


Ugand a i s seeking to participate i n management of Mombasa port and other ports in the East African C ommun i t y , a s e n i o r government official has said.The Permanent Secretary

Ministry of East African Community (EAC) Affairs, Edith Mwanje said Thursday that Uganda should have a say in the management of ports because of "the too many delays" at the ports, which she said affect trade."Let us be recognized as full

s t a k e h o l d e r s i n t h e management of ports. The ports should be managed collectively as EAC," Mwanje s a i d a t a ' v a l i da t i on workshop on Uganda's country position on the single Customs Territory' held in Kampala.At the workshop a draft

report on "Uganda's position on the negotiation for a single Customs Territory", which w a s a u t h o r e d b y Development Economist, Pau l Bagabo and h i s colleague Lawrence Othieno was released and discussed by various stakeholders.T h e t w o w e r e

c ommi s s i o n ed b y t h e Ministry of Finance to undertake a study and develop a position for Uganda for the negotiations

he Nigerian g ove rnment Thas contracted

the World Bank to audit operation of the destination inspection scheme before handing it over to the Nigeria Customs Service, NCS.The De s t i na t i on

Inspection Scheme, which stipulates that all goods coming into the country must be e x am i n e d a t t h e

Uganda wants to run Mombasa Portfor a fully-fledged Customs Union. Their report will inform Uganda's negotiating team.They study is meant to

enable the High Level Task Force to develop a mechanism for engagement in the negotiations for a single

customs territory and ensure that Uganda is not d isadvantaged, among others.The S ing l e cus toms

Territory provides for free movement of goods in the EAC partner states, non-payment of tax of the good

that are circulating in the states and imposition of a common tax on goods coming from outside the t e r r i t o r y , M w a n j e explained.She said that apart from

the issue on ports, there are still administrative barriers

and problems of corruption which should be addressed.She advised that Uganda

and the partner states should watch out for goods imported into their countries and re-packaged to look as if they are made in EAC and end up evading taxes. Uganda, she said, needs a strong law to monitor such anomalies.

World Bank to audit Nigeria's Destination Inspection Scheme

nation's ports, elapsed last year before it was extended for another six months.It was gathered that the

government through the Minister of Finance, Ngozi Okonjo-Iweala, late last year, contracted the World B a n k t o a u d i t t h e performance of the three Service Providers, Cotecna D e s t i n a t i o n N i g e r i a Limited, SGS and Global Scansystems, as well as the preparedness of the NCS to

take charge of the scheme."FG brought in the World

Bank to audit the system to see if there is need for transition or intervention; and to determine the kind of c o l laborat i on that i s required," a ministry of finance official disclosed.On the widely held claims

that the World Bank officials were brought in by the Customs, the official said "It was the minister that brought in the World

Bank; what the Customs did was to muscle in and you know those oyinbos (whites), they will just be smiling but what they are going to say is in their mind."It would be recalled that

Ramesh Siva, who led the World Bank team after visiting many commands to assess facilities of the service, had said "Customs is r e a d y t o t a k e o v e r Destination Inspection Scheme.

Mombasa Port

MotoringMotoring 612013 May, SweetcrudeReports

he EPA has listed the ten most fue l -T

efficient 2013 cars on sale in America but are they cars you would actually want to drive? This list of the ten most fuel-efficient US-market cars goes beyond the numbers and tells you which ones are

10 most fuel-efficient cars of 20131

2Toyota Prius C:EPA estimates: 53 MPG city/46 MPG highway/50

MPG combinedPrice range: $19,875 - $25,700The Prius c (for compact) is the smallest and least-

expensive member of the Prius family. Its cute outside and spacious inside, but most importantly and just like every Toyota hybrid it does exactly what it promises, easily exceeding 50 MPG in city driving. Its truncated hatchback shape means its not as aerodynamic as the regular Prius, hence the lower highway MPG figure. That said, it still beats its chief rival, the Honda Insight, and by keeping to a patience-

Toyota Prius: EPA estimates: 51 MPG city/48 MPG highway/50 MPG combinedPrice range: $24,995 - $35,515Here it is, Ol Reliable, the 800 lb gorilla

of the hybrid market and Ill tell you what, the Prius deserves all the praise thats been heaped upon it. The Prius has all the room a family of four will need, and it should get at least 48 MPG in mixed driving week in and week out. Thats pretty darn impressive for such a roomy family car. On the downside, the fun-to-drive factor is almost nil unless saving fuel and reducing pollution is your idea of fun, in which case youll have a jolly ol time.

worth buying and which ones are best left at the showroom. Here they are, ranked lowest-to-highest by EPA combined fuel economy. (NOTE: This list excludes electric cars and plug-in hybrids, since real-world MPG varies so much.)

3

EPA estimates: 47 MPG city/47 MPG highway/47 MPG combinedPrice range: $25,995 - $33,710The C-Max is a handy cross between an

SUV and a wagon plucked directly from Fords European lineup. Ford is pitching the C-Max Hybrid as a rival to Toyotas Prius v. Its certainly quicker and marginally more interesting to drive, though its heavy weight and economy-minded tires zap most of the handling fun of its Focus-based chassis. But its fuel economy that counts, and while the C-Maxs numbers are higher than the Prius v, achieving those numbers in the real world is another story I had no problem making 46 MPG in the Toyota, but barely managed 39 MPG in the C-Max.

Ford C-Max Hybrid (tie):

3 EPA estimates: 47 MPG city/47 MPG highway/47 MPG combinedPrice range: $27,995 - $38,170Theres a lot I like about the Ford Fusion

Hybrid heck, theres a lot to like about every version of the new Fusion. Each and every one is beautifully styled with a high-lux interior and lots of passenger space. Ford has even managed to package the hybrid battery in the Fusions trunk while still leaving plenty of storage space. But as with the C-Max Hybrid, Im skeptical about those fuel economy ratings in a week of careful driving, I was only able to achieve 37 MPG. Thats very good for a roomy sedan, especially one that performs this well but its not 47 MPG.

Ford Fusion Hybrid (tie):

sapping 60 MPH, I was able to nurse one up to 60 MPG on a flat stretch of freeway.

*Aaron Gold, About.com Guide

6MotoringMotoring 622013 May, SweetcrudeReports

EPA estimates: 45 MPG city/45 MPG highway/45 MPG combinedPrice range: $36,820 - $48,555I havent had the opportunity to drive the

MKZ, but its based on the Ford Fusion, listed below, so I imagine that it drives pretty well but I also imagine that, like the Fusion, it struggles to meet its EPA fuel economy estimates. Ill have more to say once Ive had a chance to drive it.

4 Lincoln MKZ Hybrid:

10 most fuel-efficient cars of 2013

EPA estimates: 42 MPG city/48 MPG highway/45 MPG combinedPrice range: $25,790 - $31,795If youre a car nut who is dismayed that all the cars on

this list are hybrids, the Jetta may well be the one bright spot on this list. Yes, its a hybrid, but the Jetta doesnt drive like one its hybrid powertrain is relatively unobtrusive, at least when you are accelerating; unfortunately the braking is pretty lousy VW hasnt perfected their regenerative braking system, and you never know quite what sort of response

Volkswagen Jetta Hybrid:

5

EPA estimates: 44 MPG city/44 MPG highway/44 MPG combinedPrice range: $25,150 - $27,850Honda gave us an all-new Civic

in 2012, and an updated version for 2013. Now, I never had much luck matching the old Civic Hybrids EPA fuel economy estimates; the new Civic is designed for better and easier-to-achieve MPG, and while I go closer, I still came up short 42.1 MPG, despite gentle driving and liberal use of the ECON mode. I do like the Civic Hybrid for its roomy back seat and day-to-day livability; still, lets not forget that Honda now makes the conventionally-powered Civic HF, rated at 29 MPG city/41 MPG highway. With a price tag of $20,555, it will probably save you more money in the long run than the Civic Hybrid.

Honda Civic Hybrid:youll get when you step

on the brake. But the J e t t a , l i k e o t h e r Volkswagens, is good fun in the curves, it has plenty of interior space, and it delivers on its promised E PA f u e l e c o n omy estimates. (VW shoppers should also check out the diesel-powered Jetta TDI, known for exceeding its EPA es t imates and getting 50 MPG or better on the highway.)

EPA estimates: 44 MPG city/40 MPG highway/42 MPG combinedPrice range: $27,445 - $37,135The Prius v comes straight from Toyotas Really

Good Idea Department. Essentially a Prius with a station-wagon butt grafted on, the Prius v offers the cargo capacity of a small SUV with roughly double the gas mileage. EPA fuel economy estimates are far lower than the regular Prius, but I had no trouble averaging well over 46 MPG, with numbers as high as 55 MPG in town. Remarkable. The only downside is the price: Add on a few options, and the Prius v gets seriously expensive.

Toyota Prius V:7

10

9

8

MotoringMotoring 632013 May, SweetcrudeReports

10 most fuel-efficient cars of 2013EPA estimates: 43 MPG city/40 MPG

highway/42 MPG combinedPrice range: $32,945 - $39,000The CT 200h combines the powertrain of

the Prius with a small 5-door hatchback body designed for European buyers (who, by the way, are the CTs actual target market). The CT lacks the Prius extreme aerodynamics, which accounts for the lower fuel economy -- but 42 MPG is easy to achieve in mixed driving, and like the Prius, the CT 200hs fuel economy skyrockets in slow stop-and-go traffic. And the fact that its the least-expensive Lexus doesnt hurt much, either. When I first saw the CT, I didnt know what to make of it, but after spending time behind the wheel, I grew to like it though its not as spacious nor as fuel-efficient as the Prius, its still a great mix of luxury and fuel economy.

Lexus CT 200h:

EPA estimates: 41 MPG city/44 MPG highway/42 MPG combinedPrice range: $19,390 - $24,850I seem to be the one of the only

journalists who genuinely likes the Insight; maybe thats because Ive lived with one . Still, now that Toyota has introduced their own small, inexpensive hybrid, the Prius c, it is more difficult to make a case for the Honda. The Insight is still the least-expensive hybrid, undercutting the Prius c by a scant $485, and its trunk is a bit more usable. But the Prius c has a bigger back seat, its built of more substantial materials, and m o s t i m p o r t a n t l y , i t g e t s significantly better fuel economy. Given all that, its hard to make a case for the Insight... but I still like it.

Honda Insight Ex:

EPA estimates: 43 MPG city/39 MPG highway/31 MPG combined (LE), 40/38/40 (XLE)Price range: $26,810 - $34,945The Camry Hybrid has always been a

good car, but last years redesign has transformed it into a great car. For one thing, fuel economy estimates are way up 41 MPG combined is pretty darn impressive for a car this size. (I havent had enough seat time to get a real-world figure, but in my experience, Toyota hybrids easily meet or exceed their EPA estimates.) And the interior once a cocoon of blobby, nondescript plastic has finally been given a little personality. One curious note: The nicer version of the Camry Hybrid, the XLE, gets worse gas mileage due to its greater weight. Other than that, theres really not a lot to complain about.

Toyota Camry Hybrid:

TechnologyTechnology 64

CONTINUES ON PAGE 65


Surface engineering company, MesoCoat, will this year launch l a r g e - s c a l e c omme r c i a l production of clad pipe that involves a manufacturing process that company officials say is faster, more efficient and can meet the growing demand for clad pipe in the global oil and gas industry.

Euclid, Ohio-based MesoCoat, a subsidiary of Miami-based Abakan, will begin operations in September of this year at a new clad pipe manufacturing facility which will utilize its CermaClad process. MesoCoat has been recognized by The Wall Street Journal and Forbes for this cladding manufacturing process, which company officials say can meet the growing need for clad pipe as oil and gas producers pursue oil and gas reserves in highly corrosive and extreme environments.

By year-end 2013, the company expects to be capable of producing more than 1.1 million square feet (100,000 square meters) of CermaClad clad pipe, plates, and other components each year.

How Cermaclad worksCladding is a process in which a corrosion-

resistant alloy or composite surface layer is bonded integrally and permanently onto another dissimilar metal, or substrate, to enhance its durability or appearance. Cladding protects oil and gas pipes from heat, pressure and corrosion. Carbon steel is one of the most common substrate metals used in clad products today.Most clad products have a substrate

comprised of a carbon steel structural material with aluminum, nickel, nickel

MesoCoat offers new process for Clad pipe manufacturing

alloys, titanium, and/or stainless steel as the clad l a y e r t o p r o t e c t t h e structural material from corrosion, while tungsten carbide, chrome carbide and/or hardness steels are used for resisting wear and erosion.The CermaClad process

utilizes a superhot plasma arc lamp essentially an artificial sun which rapidly fuses corrosion-resistant alloys to metal surfaces at a round 2 ,400 degrees Fahrenheit. By using the lamp, which stands 8 to 10 inches in length, alloys can be bonded on a pipe in a much wider swatch. While laser/weld cladding systems cover approximately .7 centimeters to 1 centimeter at a speed of 400 millimeters per minute, CermaClad can cover an area of around 12 to 30 centimeters, around 30 to 40 times wider at the same pace.By using an arc lamp

versus laser cladding or weld overlay, which are two predominant metallurgical c l a d d i n g t e c h n i q u e s , Abakan can produce an i m p r o v e d c o r r o s i o n -resistant metal 15 to 100 times faster than the current c l a d d i n g p r o c e s s e s . MesoCoats primary product offering is a corrosion-resistant seamless clad pipe for use as risers and flowlines in deepwater oil and gas projects, where fields high corrosiveness requires the use of high quality corrosion-resistant pipes.The resulting product also

lasts three to six times longer than traditional weld and laser technologies, which can save oil and gas companies 20 percent in lifetime costs. Additionally, t h e s e n an o - e nhan c e d products also have been shown to be safer and more ecofr iendly than hard chrome coatings.MesoCoats clad pipe

process can provide pipe for

By year-end 2013, the company expects to be capable of producing more than 1.1 million square feet (100,000 square metres) of CermaClad pipe, plates, and other components each year

CermaClad pipe cladding set-up for production of corrosion-resistant clad pipes

CONTINUED FROM PAGE 64

TechnologyTechnology 652013 May, SweetcrudeReports

New process for Clad pipe manufacturingthe production not only of wet and sour gas fields, but oil sands as well. The oil sand mining process involves a lot of iron ore processes, which can scour the inside of a transport vessel. This wear a n d t e a r d r i v e s u p m a i n t e n a n c e a n d replacement costs, and is one of the reasons that oil sands

extraction costs are high, said Robert Miller, member of Mascots board of directors and CEO of Abakan.The technology on which the

CermaClad process is based was originally developed by the U.S. Department of Energys Oak Ridge National L a b o r a t o r y . M e s oC o a t secured a research and development license for the technology in 2009 and

s e cured an e x c lus i ve commercial license for the technology in 2010.Clad pipe demand to grow in O&G industry

The need for clad pipe in the oil and gas industry is expected to grow as the w o r l d s r e m a i n i n g unproduced oil and gas reserves exist in highly

corrosive environments. Abakan officials say they are seeing a 10 percent per year increase for clad pipe demand. They also point to In ternat iona l Energy Agency estimates that over 70 percent of the worlds remaining oil and gas r e s e r v e s a r e h i g h l y corrosive this percentage would be higher if newfound

energy resources such as oil sands, shale and pre-salt resources were included. Of the 225 oil and gas fields now being developed across the g lobe, 158 are h ighly corrosive.

The increasing remoteness of offshore oil and gas fields


TechnologyTechnology 662013 May, SweetcrudeReports

CONTINUED FROM PAGE 65

Company hopes to expand offerings tooil sandis partly drivingthe oil and gas industrys acceptance of avoiding maintenance and liability risk by making an i n i t i a l h i gher c ap i ta l investment in clad pipe. F o l l o w i n g t h e 2 0 1 0 Deepwater Horizon incident, the liability for equipment failure has grown, meaning more resilient front-end engineering is required.

The more difficult is it to service and inspect a pipe makes the risk of failure higher, said Miller.

MesoCoat had initially looked the technologys application for propulsion s h a f t s f o r n u c l e a r submarines before Abakan acquired a 71 percent

interest in MesoCoat in late 2009. MesoCoat officials switched their focus to oil and gas after learning about the industry from an Abakan board of director member; the more MesoCoat officials learned, the more it realized it had a significant market opportunity.

The wait time is long for oil and gas companies to obtain clad pipe, which is only manufactured by a few c omp a n i e s w o r l dw i d e . MesoCoat officials attribute this to the fact that the same laser and welding technologies that havent changed in 50 years are still being used, which makes the cladding pipe process s low. MesoCoat officials say they have also been approached by operators of fields offshore Australia who

say they have seen long lead times for ordering clad pipe.

Even if they order it three years ahead of time, they may still not get it in time, Miller commented.

Two companies currently manufacture clad pipe, including Japan Steel Works which dominates the market with 70 percent market share. To increase capacity, manufacturers would have to increase manufacturing space. The cost of expanding an existing facility varies with the technology. A lined pipe or metallurgical clad pipe facility expansion costs anywhere in the $150 million to $300 million range, while expanding a rolling mill facility for the production of roll bonded clad plate costs

approximately $1 billion, Miller noted.

During each year of the past decade, 1,118 miles (1,800 kilometers) of clad p i p e h a v e b e en l a i d w o r l d w i d e , M i l l e r commented. Given the high-pressure, high temperature deepwater projects that oil and gas companies are pursuing, long-lasting pipe with a low risk of failure means less maintenance and lower inspection costs is a necessity. The costs associated with nickel alloys for clad products represent half the project costs for a number of field development projects. World crude steel production in 2011 was estimated at a record 1,527 million metric tons. The U.S. steel industry each

year ships over $70 billion of material. However, global costs of corrosion are exceeding $2.2 trillion each year, stronger steel products that are less susceptible to corrosion, wear and other forms of stress are needed.

Company seeks expansion overseasThe company has firm

plans for three cladding plants over the next few years, with options for three more, including the existing facility in Ohio, Brazil and Indonesia. This does not include acquisitions/start-up of job-shop component manufacturing and repair facilities, which would bring

CermaClad-process


CommunityCommunity 682013 May, SweetcrudeReports

It is a typical case of the oil curse. Two n e i g h b o u r i n g communities in Kogi a n d A n a m b r a borders have taken up arms against each other on account of the new-found black gold believably trapped in the earth somewhere around the A n amb r a - K o g i - E n u g u borders.All three states are laying

claim to the golden treasure, but Anambra State have gone ahead to arrogate to itself sole ownership of the four oil wells located in disputed area close to the Anambra town of Aguleri-Otu. The state has since set up Orient Petroleum Ltd to exploit the oil resources. P r e s i d e n t G o o d l u c k Jonathan literally gave Anambra sole ownership of the oil wells last year, when he visited the state for the official inauguration of the Orient Petroleum refinery in Aguleri-Otu. At that event, the president declared Anambra, Nigeria's nineth oil producing state.Now, Kogi has moved to

have Anambra relinquish its sole claim to the discovered oil. At least seven persons have been killed and 52 houses burnt in f ight between the people of Enugu-Otu Aguleri in Anambra East Local Government Area of A n a m b r a S t a t e a n d Ashonwo/Odeke in Ibaji Local Government Council of Kogi State over the disputed land on the oil-rich borders.According to a community

leader in Enugu-Otu Aguleri, Chief Anekwe Arinze, the people of Ashonwo/Odeke allegedly invaded their community on Sunday, March 31, at about 1:30am when they had all gone to bed.Said Arinze: We were

sleeping when suddenly we started hearing gunshots everywhere and when some of us came out to know what was happening, we saw our houses on fire.Our children and women

who tried to escape were shot and many were wounded. We heard them saying the land belongs to them and that we cannot take it. That was when we knew it was Kogi people.

Anambra, Kogi in oil war

Chuks ISIWU

Some of our men who summoned the courage to pursue them could not get them because when they noticed our prompt response, they ran away. Already we have counted seven corpses. They also kidnapped three men. But we cannot fold our hands while they kill our people. They must release them to us hale and hearty.On its part, Kogi State has

alleged killing of four people and abduction of two others in attacks on its Odeke and Echeno communities in Ibaji Local Government Area by unidentified persons.S p o k e s m a n f o r t h e

communities , Mr Daniel Omatola, while briefing the state governor, Idris Wada, said four of their people were killed in series of attacks recently launched by some persons suspected to be from Anambra.

He also said that two other p e r s o n s f r o m t h e communities were abducted by the attackers whom he said had also destroyed homes and farmlands, t h e r e b y d i s p l a c i n g hundreds of people from their homes.Omatola called for urgent

intervention of the state

government, saying that his people were finding it increasingly difficult to stand the unwarranted attacks and killings of their kinsmen.Wada and his Anambra

State counterpart, Peter Obi, has since met over the crisis. Rising from the meeting, which held in

Abuja, the two governors called for peace in the two warring communities.They said in a joint

communique after the closed door meeting: For emphasis, neither Kogi nor Anambra state reported any loss of life, contrary to media reports that 57 lives were lost. Only about four motorcycles were destroyed during the fracas".The communique further

stated that "both governors sued for peace in Odeke and Aguleri-Otu communities and appealed to them to ensure good neighborliness as the issues in contention are being given due attention by the National Boundary Commission on the directives of the President of the Federal Republic of Nigeria, President Goodluck Ebele Jonathan.

Oil well

Some of our men who summoned the courage to pursue them could not get them because when they noticed our prompt response, they ran away


P O R T HARCOURT - Niger Delta youths, under the aegis of the N i g e r D e l t a Y o u t h Parliament, NDYP, have rejected the proposed death penalty by the Senate President, Senator David Mark, for those involved in illegal bunkering.The youths described the

suggestion by Mark as unfortunate and a mark of insensitivity to the plight of youths in the oil- rich region.National Coordinator,

NDYP, Mr. Imoh Okoko, regretted that rather than make laws that would encourage the provision of employment opportunities for youths, the Senate President suggested death penalty for the people of the regionOkoko, who explained that

NDelta Group rejects death penalty for oil theft

the people of Niger Delta had been facing environmental degradation and acute lack of infrastructure, noted that death sentence would worsen the peples plight and would amount to an attempt to wipe out some of the youths in the area.He urged the National

Assembly to look into the root cause of oil bunkering and tackle it, advising that only an effective youth employment programme would stop oil bunkering in the area, and not threat of death sentence.Okoko said, Why would

Mark make such a suggestion? From his utterances, the Senate President and most members of the National Assembly are not interested in the oil spills and other form of environmental degradation affecting the people of Niger Delta.It is insensitive of anybody to

prescribe death penalty for

those involved in oil bunkering. The best step the National Assembly would have taken is to make a law that would ensure that youths in the Niger Delta region are employed. W i t h g a i n f u l

employment, no youth in the Niger Delta will have the time for oil bunkering. It is an irony that while some people are suggesting amnesty for Boko Haram members, our Senate President is prescribing death sentence for oil bunkerers.He, however, expressed

regret that while members of the National Assembly earn jumbo salaries from Niger Delta resources, they could still think of seeking death for the suffering youths of the area.Okoko urged members of

the National Assembly to

move a motion for their salaries to be slashed in order to pave the way for Nigerian youths to earn a living.

Order Shell to clean up impacted environment, Ogoni tells govt

In a related development - Goi, one of the Ogoni communities affected by S h e l l P e t r o l e u m Development Companys operations in Rivers State, has called on the Federal Government to prevail on oil giant, Shell, to return to c l e a n u p i m p a c t e d environment.Mr. Stephen Kobani, a

community leader, said, while inaugurating a new leadership for Goi, that, years after fire from Shells operations forced the community to abandon their homes, neither the

government nor Shell had deemed it necessary to clean up the environment.Also, no compensation was

paid to the people for the damages caused, he said, adding: As far as Shell is concerned, we do not exist; that is why since we have been crying out over the sacking of our community b y t h e c o m p a n y s operations, they have continued to ignore and neglect us.Also speaking at the event,

Mrs. Veronica Kobani, Goi Women Leader, said the incident which destroyed farmlands, rivers and fish ponds, had pushed the community into severe poverty and suffering.Shell and government

shou ld c l ean up t he environment to enable us come back to our ancestral homes, she said.

Niger Delta community


THE Niger Delta Development Commiss ion, NDDC , h a s inaugurated 20 projects in Cross River State.The projects, acknowledged

by leaders of beneficiary communities as having i m p r o v e d t h e l i v i n g conditions of the people include roads, classroom blocks, electrification and solar-powered water supply.Inaugurating the projects,

NDDC Managing Director, D r . C h r i s t i a n O b o h , represented by Cross River State Representative on the Board of the Commission, Dominic Edem, said the Commission was determined to complete its projects.Dr. Oboh said gone were the

days when children learn under trees and trek long distance to fetch water from the streams, disclosing that NDDC will bridge the gap by ensuring that the people have adequate classrooms to learn and potable water to drink.In his remarks, Head of

Akim Akim Qua clan in Odukpani Local Government Area, Chief Francis Omin, thanked the Commission for bringing the projects to the community.We really thank the NDDC

for their intervention. The light will attract investors and open the way for economic activities.Speaking on behalf of the

Chairman of Abi Local Government Area, Hon. Emmanuel Elemi thanked the Commission for finding his community worthy of the p r o j e c t s , and p l edged maximum utilization.The Paramount Ruler, Ikot

Ansa Community, Barr. Patrick Oguagbo while thanking the NDDC said the road will reduce traffic congestion and open up the state for development.On his part, Rev. Fr. David

U

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