*

A crack may have broken the overt cordial relationship between the states of the South South zone and the Federal Government of Nigeria. Words from the governors of the zone currently meeting in Asaba, Delta State capital, indicated last night they would shun the Federal Government's amnesty deal for militants. The helmsmen, according to a statement, late last night by Delta State Commissioner for Information, Mr. Oma Djebah, hinged their decision on cardinal points relating to the oil industry bill, the relocation of the Warri Petroleum University to Kaduna and alleged anti South-South disposition of the nation's petroleum minister, Rilwanu Lukman. The brief statement read: "The governors of South South may pull out of amnesty programme for:-

* proposed Petroleum Industries Bill which is anti communities and is a slap on the oil producing areas;

* movement of the University of Petroleum from Effurun to Kaduna;

* no definite post-amnesty plan for the region; and

* anti South-South posture of petroleum minister."

Meanwhile, a strong indication emerged yesterday that Nigeria may cut down its quantity of oil production amid fears of a looming fuel scarcity caused by aggrieved tanker drivers.

In fact, Petroleum Resources Minister, Dr. Rilwanu Lukman, said that it would profit the nation to preserve the oil reserve instead of producing it at unprofitable cost.

The minister who made the statement when the House of Representatives committee on gas resources led by its chairman, Igo Aguma, visited the headquarters of the Nigerian National Petroleum Corporation (NNPC) on oversight function, also called for a new fiscal regime that would yield more revenue for the oil sector.

Addressing the lawmakers, the minister lamented over-dependence on the sector by Nigeria and advocated diversification of the economy so as to reverse the situation. He also drew the attention of the lawmakers to the development in the international market which had affected the price of oil and said instead of wasting the product at cheap prices almost lower than the cost of production, it was better to leave it intact for future generation of Nigerians.

He said the United States of America (USA) which is one of Nigeria's largest oil markets had expressed intention to go for alternative to oil and that would further affect the market, therefore, it was time for the country to diversify into agriculture and other sources of income. He appealed to the National Assembly to consider some legislation in this regard.

"The situation in the oil market has become highly unpredictable. It is better to keep the oil in the ground for future Nigerians. The U.S. is trying to run away from carbon and they are talking of alternative sources. Our hope is that through legislation, we should be able to diversify the base of our economy, it is a responsibility you have to discharge. We have to diversify to agriculture, manufacturing, tourism and others," he said.

On the financial strait in the ministry and inability to execute some crucial projects required in some areas such as at NNPC, the minister said the ministry was contemplating a new fiscal regime that might increase some fees being paid by oil companies.

He specifically mentioned Petroleum Profit Tax (PPT) and royalties as possible areas that would be affected. The essence of increase in the taxes, according to the minister, was to earn more income for the smooth operations of the oil industry.

"We should introduce new fiscal regime for the oil companies to pay sufficient royalties and Petroleum Profit Tax so as to maximise income from the oil sector and this will go a long way to assist the industry," he said.

Lukman expressed concern over the violence in the Niger Delta and its negative consequences on oil production and appealed to the National Assembly to do something urgent to address the matter.

Aguma faulted the ministry over the implementation of the 2009 budget. Quoting copiously from the Public Procurement Act, the chairman pointed out that the Act specifies a maximum of two months for all processes of executing projects to be concluded after the passage of the budget. He maintained that the 2009 budget was passed in March this year and the period allowed by the Act had elapsed and therefore, the minister had no option than to comply, failing which the House would invoke the penalty provided by the Act.

"We are irked that the ministry of petroleum has not met the time lines provided by the Public Procurement Act. The procurement planning should be two weeks as provided by the Act and from advertising to Certificate of no Objection should all be within two months with a grace period of two weeks if there are some areas of clarification. The budget was passed in March this year and up till now, decisions are not being taken in that regard. It is unfortunate," he remarked.

Aguma said the committee was on the oversight function to insist that the Permanent Secretary who is recognised by the Act as the implementing officer must ensure that everything was put together for the projects to be implemented immediately. He also noted that part of the reason for the delay was that the ministry was giving preferential treatment to some contractors and warned that such action could eschew disaffection.

"The committee demands immediate forwarding of all items approved in the budget to Bureau of Public Procurement and if observe lapses again, we will not hesitate to invoke the relevant laws of the land by passing a vote of no confidence on the officer concerned," he added.

The minister assured that steps would be taken to correct the situation.

The House of Representatives recently passed a motion urging President Umaru Musa Yar'Adua to implement the 2009 budget as passed by the National Assembly or face impeachment. The chamber also asked all standing committees to take oversight functions more seriously to ensure strict compliance with the appropriation law.

There are also indications that another round of fuel scarcity may soon hit the nation, as Petroleum Tankers Drivers (PTD) yesterday halted lifting of the product from depots.

The decision, The Guardian learnt, was to protest the "illegal arrest" of some tankers and detention of two members of the association by the Economic and Financial Crimes Commission (EFCC).

Speaking with The Guardian in a telephone interview, the executive secretary of PTD, Lagos zone Alhaji Tokunboh Korodo, confirmed that fuel lifting had been suspended, stressing that the members have resolved not to resume until the issue was resolved.

He explained: "The alleged persons lifted fuel at Folawiyo Depot in Apapa late Wednesday night, because the company's officials were not around to issue waybills, the drivers had to find a parking space, pending when the document would be available.

"They decided to move down to Ogere in Ogun State for a better parking lodge while the men of the Civil Defence accosted them and arrested the tankers with their motor boys for not having due documents to convey products.

"Immediately we heard, we secured the waybill, which was taken to them so as to get them released, but the Civil Defence official was adamant and insisted on taking them to EFCC. Now the boys have been detained in the custody of EFCC, which has also insisted on conducting further investigations on the matter.

"Irked by this, their colleagues have resolved to withdraw services until the issue is resolved. As I am talking to you, no single drop of fuel is being lifted by any tanker driver whatsoever."
http://www.ngrguardiannews.com/news/article01//indexn2_html?pdate=240709&ptitle=South%20South%20govs%20battle%20FG,%20threatens%20to%20dump%20amnesty%20deal

Now the South South governors are ready to talk.


Lukman is not anti- Niger delta. He is only an old man who needs retirement.

Is d badly conceived amnesty offer of yaradull for south south governors or for militants?

They are crying over pti's relocation,soon yaradull will move NDDC to Gusau.

It still baffles me what the OLD -LADEN ANIMAL Called Lukeman is still doing in Gov.
Is he better than Intellectuals in this country.

i may not understand nigerian politics very well but i need to know why is the govt relocating PTI from warri to Kaduna? why?

@ Nairalanders,is that Old boy called Lukman the only person that can handle the Petroleum ministry? He is a BIG DISEASE to Nigeria,i don't blame him i blame the senators that screened him.

is the part of the amnesty?,
relocation of skools, i wonder wetin dis guy wan turn ND to be, Dem Papa,

Afta ATlas Cove,
Next is Muritala Airport,