BOKO HARAM ON GOVS PAYROLL?

The Vanguard Newspaper reported a story on 24 January 2012 to the effect that the Boko Haram islamic sect has claimed being on the payroll of several northern Nigerian States Governors. Since the report came out, none of the indicted Governors has issued a rebuttal. Is this a tacit acceptance of complicity?

My Member in the House of Representatives, Hon. Bitrus Kaze, (Picture rght) commented on this news item on his facebook page as follows:

"I join many all well-meaning Nigerians in sympathizing with the people of Kano. But frankly speaking, the report that Boko Haram's favourite training camps are in Bauchi State cannot be breaking news!
Recall my advertorial on The Nation newspaper of 25th March 2010? I had said, "Some of the Fulanis who were arrested in Jos East confessed they were fleeing back to their training camps in Bauchi State... In perilous times such as now, signals emanating from Bauchi State may not be that of an enemy, they are surely not that of a friend either."
The Punch Newspaper of 25th Sept, 2011 report that "Men of the Bauchi State Police command have raided a terrorist training camp in the Toro Local Government Area of the state, arresting 10 men and recovering arms and ammunition. The leader of the camp was in the process of recruiting another 35 people for training before the camp was invaded by the police."
Any wonder why the Sultan is not blaming political leaders for the Kano multiple bombings? Gov Mu'azu Babangida Aliyu of Niger State has not convened an emergency meeting of Northern Governors over Madalla or Kano bombings neither has he reacted the Vanguard newspaper reports that some Northern Govs pay millions to the Boko Haram on a monthly basis!
Had the sordid events Madalla or Kano occurred in Jos, would they have kept silent? Are Jos Plateau people not being vindicated by the day! Is anyone surprised that Jos is returning to its original status of hosting refugees from crisis zones?"

TISHAU OF BOKO HARAM SPEAKS

The Punch Interview: "I Told The Inspector General Of Police In Advance That Abuja Would Be Bombed," Says Boko Haram Leader

SAHARA REPORTERS: Posted: September 21, 2011 - 05:20

What is Boko Haram about?


Our aim is to spread Islam all over Nigeria, that is our mission and I want people to understand that our correct name is Jama’atu Ahlis Sunna Lidda’awati wal-Jihad. Those calling our group Boko Haram do so to discredit the group and its ideas. It was formed at three fundamental levels.

The first level from which our group emerged was from people in this country who, for selfish reasons, recruited young people and sometimes children and sent them overseas for education. In reality, these people are totally ignorant of the reasons why these big men take them abroad. In the name of education, these young men are taken to mostly Arab countries and turned into militants who respect only those who sponsored them abroad. Those big men who sponsor these youths don’t have any conscience and no love for this country. 

It all started in 2004 when the Government of Mauritania fell.


It is similar to what is happening in Libya now, though slightly different. When the government in Mauritania fell in 2004, some individuals from that country came into Nigeria to recruit some youths as mercenaries to join forces with them to overthrow the government in power.


The second level of our membership is made up of young men who were recruited by our late leader, Mohammed Yusuf. Yusuf was approached by some people from Mauritania to recruit more Nigerians to continue with the struggle in Mauritania. The grounds were that these young people were being recruited to further their Islamic studies. They were to serve as a support group to the Mauritanian army. But our leader Mohammed Yusuf rejected the plan. But a number of Nigerian big men who were involved in the Mauritania struggle were angry with Yusuf. This led to a disagreement which pitched the young men loyal to Yusuf against those backing the big men. Yusuf, however, insisted on genuine Islam whereas those opposing him were mercenaries who were willing to serve their master’s interest in Mauritania.


At what point did they leave perfect Islam and become violent? 


Whatever I am telling you now I have already made available to the SSS when they arrested me. There was a misunderstanding within the group and this disagreement was between those who received military training in Mauritania and those who were loyal to Yusuf. The SSS infiltrated our ranks and began to arrest many of those who were militants. However, as they were arrested some big men moved in to ensure that the court released them and they came back causing more problems within our group.


In 2009 the disagreement developed into a crisis in areas where our group was spreading Islamic ideals. I was in charge of our operations in Bauchi, Gombe and Plateau. The crisis was more in Bauchi State, in two locations and in Kano in one location. In Bauchi, a group began to lay claim to a mosque that was built by our group. This caused a major crisis again and a young girl was kidnapped in Bauchi and taken to Borno State. Our group was fingered but we told one intelligence officer, Bala, who was investigating the case that her relations took her to Borno and if the issue was not handled well it could cause a crisis. The SSS directed us to contact the Commissioner of Police in Borno State to secure the girl’s release. We were still in the process when the Bauchi State governor directed that members of our group should be driven away from the state. That was how our people started to resist the forced evacuation and the crisis with the government spread to Borno State. In fact, the crisis began in Bauchi and not Borno.


Anytime there is a bombing in Nigeria Boko Haram claims responsibility, for example, four times in Borno Police headquarters and the UN office in Abuja.


Yes, we bombed some of those places you mentioned. Remember I told you that some of our members were recalled from military training in Mauritania. Among them were three specialist in bomb making.


When this crisis began I made a move to the authorities advising that the arrest of Boko Haram members would not bring an end to the crisis. I suggested that the government should stop the arrest and release those already arrested. Let me repeat it today, government should rebuild houses, mosques and schools demolished in Bauchi and Borno states. Government should not interfere in the genuine worship of our group and ensure justice for all. If these are not in place, I predict that the Nigerian situation may become like what is happening in Somalia.

I give this warning because many of those young men who went to Mauritania are being attracted back home because of the violent situation brought by the present crisis.


When I gave my advice, the police chased and arrested me, and kept me in detention. Before I was detained, I gave the police the video recordings of how some of our members were being given military training, but the IGP ordered that I should be detained. I was left in detention for 10 months. 


But those things that I warned about are playing out today. While I was in detention, I was in contact with our people and I still gave forewarnings to the authorities about attacks. I even told them beforehand whenever an operation was to take place. The bombing of the police headquarters had been planned and on many occasions I had always told them in advance.


In fact, Bala had helped the police because each time I got in touch with him he worked to avert the attacks. If not, the police headquarters would have been bombed before now. Three days before the attack I warned the police that there would be an attack in Abuja that would embarrass the security authorities. Also, after the bombing of the police headquarters, I was summoned before the IGP and given a GSM phone. I called the person who planned and led the attack and we spoke right in front of the IGP. So, all these terror attacks are caused by the negligence of government.


Since I was released from detention, I have rejoined my group and some of us have warned our members to stick to the original ideals of our leader, Yusuf. He did not tell us to kill innocent people or to break into and steal from banks. If there is a conflict between the faithful and the authorities our opposition should be against the authorities and not the talakawas.


There are allegations that Boko Haram is being sponsored by some top level politicians, is it true?


The truth is that politicians are the root cause of this Boko Haram problem. For instance, in Borno State, the governor sponsors a group of armed youths known as ECOMOG. It is this ECOMOG that the governor formed and looks after, above the police, SSS and other security agencies. In Gombe State, the governor has the Kalari. I was once contacted by a governorship candidate to kill an opponent for a fee. The security agencies know what I am telling you.


In Bauchi there is the Tarafuka, an armed group sponsored by the government, and the government watches on, even when we have the SSS and police. That is why our new leader, Mallam Abubakar Shekau, is calling on the youths to disregard all government in the country – a call that has brought him and the group into conflict with the government. Some politicians are now taking the advantage of the conflict between the Boko Haram leadership and the authorities to execute their own agenda.


Did Boko Haram bomb the United Nations Office in Abuja?


I would not answer the question of whether Boko Haram bombed the UN building or not for some reasons.


Did Boko Haram bomb the Police headquarters in Abuja?


Yes, we bombed the police headquarters in Abuja. I told you earlier that when the bombing of the Police headquarters happened I called the person who led the attack, I was in front of the IGP. Yes, we bombed the police headquarters in Abuja. They asked me why we bombed the police headquarters and I told him (IGP) in his presence that it was because of his statement in Maiduguri that the days of Boko Haram were numbered.


Why does Boko Haram bomb army barracks and attack police and security operatives? What do they do to affect Islam or the work of Boko Haram?


It is because of the indiscriminate killing of our members and innocent people by the police without trial. They arrest innocent people harass and shoot them and the authorities do nothing about it. Why should we then leave the police?


Boko Haram is asking for Sharia in all the Northern states, and the states have Sharia, so what is the problem again?


I have been waiting for this question. I was in detention when it was said that Boko Haram had threatened to turn the entire North of the country into a Sharia state. Since I came out of detention have you heard that Boko Haram is threatening to turn the whole of Nigeria into an Islamic nation? The truth is that those spreading such information are just lying against us. What we are demanding is that those states that have independently declared their states Sharia states should implement it to the letter. Have you seen Sharia cut the hand of someone who steals a cow head, while someone who corruptly enriches himself is left to go free? They have chased away local prostitutes and brought in international red light prostitutes to replace them. They have also banned local alcoholic drinks, yet they drink imported spirits in their respective government houses. Is that Sharia? They are insincere, so they must be effective in the implementation of Sharia. Sharia is being abused. I pity this country. Mauritania does not have any wealth they exported Boko Haram into Nigeria. Now, Libya has money and wealth but have collapsed. Who says that these countries would not bring something worse than Boko Haram into Nigeria?

FANNING THE EMBERS OF RELIGIOUS INTOLERANCE

Little did I expect that the Nigerian northern Muslim elite would go this far in their scheming? When Malam Nasir El-Rufai, the intellectual and politician, said Boko Haram could not have worn jeans; they wear kaftans, I wondered where he was heading. Then a few days later, Dr. Aliyu Tilde, the veterinarian/political scientist/blogger, released his article titled, “Jonathan and the Security of Nigerian Christians”. I was further baffled. Why are the northern Muslim elite suddenly anxious to re-craft the picture created by the nebulous Boko Haram Islamic sect?

When the Arewa Consultative Forum (ACF) held its so-called peace conference in Kaduna in December 2011 without a proper representation of Middle Belt Christians, one Kaduna-based Barrister Yahaya Mahmood said that until the Government of Plateau State created an Emirate for the Hausa settlers in Jos, that State would see no peace. Shortly after that, Professor Jubril Aminu released his own elderly and intellectual take by calling for the proscription of the Christian Association of Nigeria (CAN). In his reasoning, if Muslims formed a Muslim Association of Nigeria (MAN), it wouldn’t augur well for peaceful co-existence in the country.

Earlier on in December 2011, Boko Haram gave all southerners and Christians residing in the northern States three weeks within which to relocate or face their wrath. True to their word, when the time allowed expired in the first week of January 2012 they struck on daily basis for 9 consecutive days. Their campaign against Christians actually started on Christmas day with the bombings at St. Theresa’s Catholic Church, Madalla, Suleja, Niger State. They kept up their deadlyl attacks on churches and Christians in Damaturu, Yobe State shortly after President proclaimed a State of Emergency in some Local Governments in four States, Damaturu inclusive. The wanton taking of lives through the use of fire arms and explosives moved to Mubi, Jimeta and Yola in Adamawa State. It is estimated that in the first ten days of this year alone, Boko Haram insurgents have murdered about 115 people, mainly Christians and Policemen.

Tilde in his article tried hard to prove that Boko Haram is actually more linked to Christians than Muslims. He cited the Prof. Jerry Gana and Yakubu Bitiyong cases, which have never been proved, as his evidence. He said Gana has never denied the accusation while Bitiyong was paraded by the SSS as a suspected potential church bomber. Tilde attempted another Christian-Boko Haram link through former Borno State Governor, Modu Sheriff, whom he referred to as a Boko Haram sponsor and an Obasanjo lackey. He said that shortly after Sheriff visited late Boko Haram Leader, Yusuf Mohamed, in a Police cell and spoke to him in Kanuri dialect, he was summarily executed by the Police. He thus insinuated that former Christian President Obasanjo must have remotely masterminded the extra-judicial murder of Yusuf.

Tilde was not done yet. He enumerated how past Muslim Presidents had dealt decisively with similar insurgents in the past whereas Christian President Jonathan, for curious reasons, prefers to keep the crisis on some unclear Christian advantage. Tilde accused CAN leadership of beating the drums of war through their President’s declaration that Christians would defend themselves if Nigeria’s security agents did not do so quickly. CAN leadership should therefore be held responsible for any religious war in the country.

The title of Tilde’s article alone speaks volumes; “President Jonathan and the Security of Nigerian Christians”. It suggests that President Jonathan is a President for Christians alone and so must ensure their security. By extension, Nigerian Muslims have no business with him. Their security must be provided from elsewhere. Could this ‘elsewhere’ be the Boko Haram war chest? I would like readers to note that twice in his article, Tilde referred to northern Muslims as a ‘helpless lot’ thus attesting to their lack of confidence in President Jonathan.

One Aisha Umar-Yusuf reported in the Daily Trust newspaper of September 11, 2011 after the suicide bombing of the UN building in Abuja under the heading, “When is Boko Haram Not Boko Haram?”, as follows; “It is now apparent to discerning Nigerians that certain faceless terror groups are using the Boko Haram tag to perpetrate their evil. We now know for sure that some of the arrests made in connection with bombings or attempted bombings in Northern Nigeria were not of Muslim individuals or groups. Here we call to mind the case of Yakubu Bitiyong of Kaduna, Lydia Joseph, who set St. John’s Cathedral in Bauchi on fire and the three Christian women arrested in connection with the bomb blast at the Mammy market in Bauchi last July. Needless to say, the reach and sophistication of their methods goes beyond the capability of the rag-tag militia left behind by Mohammed Yusuf. But certain orchestrated events led to the present state of insecurity in Nigeria. We must study them to be able to know the forces at work against us.”

Aisha would like to exonerate northern Muslims from any involvement with Boko Haram. Instead, faceless Christians should be suspected because she has been able to name five probable Christians being held as suspects by security agents. Has she cared to find out the religious affiliations of the literarily hundreds of other suspects also in detention for being associated with the activities of Boko Haram? Didn’t she read the Vanguard newspaper report of August 30, 2011 written by one Suzan Edeh saying that Lydia Joseph was a professional prostitute whom the members of the St. John’s Cathedral were trying to convert to Christianity so she could renounce her trade? Was Lydia Joseph’s method really that sophisticated when she attempted to burn the church at 12:30 pm using a gallon on petrol and ordinary matches? Can the remotely detonated and time bombs and suicide missions of late Mohammed Yusuf’s militia really be termed ‘rag-tag’?

Yet another Aisha Yolah has been running a series in the papers with the title, “Theories of Boko Haram – War Mongers”. She came up with 4 theories as to who or what is Boko Haram is. The bottom line is that she wants to dispel the thinking that Boko Haram is a northern Nigerian Muslim thing.

Certain voices from the northern Muslims have also expressed disappointment at their own Sanusi Lamido Sanusi, the CBN Governor, for championing the fuel subsidy removal agenda of the Jonathan administration. I admire the objective, straight-talking and no-nonsense stance of Sanusi on this policy.

Then came the eye-opener via a New York Times article written by Miss Jean Herkovits. Osita Ebiem dissected that article well in his write up titled, “Problem with Nigeria; Still on Jean Jerkovits’ Article in the New York Times”, which was published in elombah.com on January 11, 2012. Ebiem said,

“In the past few days some concerted and vigorous efforts are being made by leaders of the Islamic North of Nigeria to change the world's opinion as to what constitutes the truth about the Islamic fundamentalist group, Boko Haram. The campaign statements of these leaders have been so loud such that in just a few days listeners' ears are almost deafened and the air waves so inundated. Now people are beginning to ask why the sudden shift from deafening silence and, on many occasions even egging on the group, to such a high pitched dissociation or differentiation and explaining. What changed? Before now the rest of the world has continued to ask, what does the Northern leaders say about the excessive Islamic killings and other abhorrent activities of the group which the world community has unanimously classified as an Islamic terrorist group based out of Nigeria's North and modeled after the Taliban terrorist cell of the Middle East/Southeast Asia and North Africa.

“Now what you are hearing from the Northern leaders is a complete volte-face of what had been and what the people were used to. It is even being reported that Boko Haram is now disclaiming all their former claims in the recent time, such as the Madalla Church and other churches bombing and machine-gunning of Christians across Northern Nigeria. What a smart move. Jean Herskovits and the rest of them are proving to be smart political strategists but in this case they are a little step behind. The cat is already out of the bag. They will need to try harder to sell this ice to the Eskimos. The script they are reading from is simple enough and does not need much sophistication to unravel.

“The script according to Ms. Herskovits and co says to the Muslim North; do not make this battle appear as a fight between Christians and Muslims even though everyone knows that it is. It doesn’t matter, the majority of the people is gullible and will always sincerely believe only what you want them to believe. Even when they see, hear and know a different reality, they will only believe what you tell them to believe especially if the telling is coming from foreign ace pundits and news media. Use reputable foreign media outlets like the New Times and tell the world that Boko Haram of the North of Nigeria is fighting injustice.”

The cat is indeed out of the bag. The impression that Tilde tried to create was thoroughly bashed by the Boko Haram video released on Youtube on Wednesday 11 January, 2012. In the said video, the self-acclaimed new leader of the sect, Imam Abubakar Shekau, said they have declared war on Nigerian Christians without mincing words. He poured vituperations on President Jonathan and CAN President, Ayo Oritsejiofor, personally for their ‘disparaging’ remarks about the sect. Tilde does not to educate anyone anymore as to who is the aggressor or what his grouse is in the current religious pogrom. It is religious cleansing being perpetrated by northern Nigerian Muslims using Boko Haram as an arrowhead.

The northern Muslim elite have decided to embark on a game of political deceit and the illicit conversion of facts. Give cover to Boko Haram subtly while the public is made to believe that Christians are the aggressors with a leadership bereft of ability to manage their own or the country. The question is what is to be gained at the end of the day by such a campaign? We wait to see, that is, if they succeed.

President Godluck Jonathan would be well advised to ‘shine his eyes’ and learn to read between the lines. Nigerian could easily go the way of former Yugoslavia – into 6 new countries. Former President Obasanjo could have saved Nigeria all these troubles if he had checked the first adoption of Sharia jurisprudence in Zanfara State.

John Campbell, a former US ambassador to Nigeria and now senior fellow for African Studies at the Council on Foreign Relations in New York, after watching the Imam Shekau video, said on VOA, "But it is important because it fits into the wider picture people have about the government - that it is not working." Campbell has never been an admirer of Jonathan administration anyway.

However, I must acknowledge the fact that Dr. Tilde made a valid point in his article, that President Goodluck Jonathan has not been decisively enough in his handling of the Boko Haram scourge. He has treated the insurgents with kid’s gloves thus far, even to the point of allowing his government to pay the family of the slain leader compensation of N100 Million. Also, admitting publicly that Boko Haram operatives have infiltrated all agencies of his government is a poor strategy and not an excuse. He has left room for all kinds of insinuations and innuendos to be manufactured by whoever cares to. He needs to be ruthless with the insurgents now and save us from further trouble. Nigeria will come out of this a stronger nation.

HON BITRUS KAZE ON THE STATE OF EMERGENCY PROCLAIMED BY JONATHAN ON 31 DEC 2011

"In had asked if there was any guarantee that Boko Haram will be patient enough to wait for almost two weeks without launching any attacks, Maiduguri and Gombe have just suffered attacks despite the emergency rule!

"It's not really clear to me what yardstick was used in declaring emergency rule in some States but I wondered aloud why FCT, Kaduna Metropolis, Gombe and Bauchi were excluded. In debating a Matter of Urgent National Importance on the floor of the House, the rules require that the matter be taken the next Legislative day but if the matter is considered very urgent, all relevant rules are suspended so that it can be taken there and then.

"An emergency rule was declared on 31st Dec last year, it is awaiting ratification by the National Assembly now on recess till 10th Jan, 2012. To me waiting for a whooping 10 days defeats the sense an 'emergency.' In the face eminent danger envisaged under section 305 of CFN 1999 (as amended) the National Assembly would have convened an extra ordinary session."

STATE OF EMERGENCY IN 4 LGs IN PLATEAU STATE

State of emergency: Inclusion of 4 LGs in Plateau politically motivated - Lawmakers

TRIBUNE, Written by Isaac Shobayo, Jos, Friday, 06 January 2012

Piqued by the proclamation of a state of emergency on four out of the 17 local government areas of Plateau State, the 10 National Assembly members from the state have declared that the inclusion of the four council areas under the state of emergency is politically motivated rather than a solution to the crisis in the state.

Addressing newsmen on Thursday in Jos, the spokesman of the federal lawmakers, Senator Gyang Dantong, said from the perception of the people of the state, the four local government areas were included to placate certain vested interests, adding that the state was a victim of terrorists acts organised, sponsored and executed by external forces.

According to him, the suspicion was confirmed by the statement credited to the Sultan of Sokoto, Alhaji Saad Abubakar, demanding for the implementation of Chief Solomon Lar’s report on Jos crisis as if it had any immediate connection with the Christmas Day outrage, adding that such a link distorted the reality of the security challenges in the country.

“Now with the state of emergency, the same CDS and the Inspector General of Police are to take charge of the control and management of security in the affected local government areas. Does this suggest an improvement? Or is it merely running round in circles?”

“As you are aware the National Assembly is on recess. We are yet to have the details of the proclamation. Still, after due consultation with our constituents, our people tell us they smell a rat. They believe that they are being unjustly targeted for punishment” the lawmakers said.

3 KILLED 2 DAYS AFTER CHRISTMAS DAY BOMBING

An attack at Kuru station, Wereng in Riyom LGA of Plateau State has left three members of a family dead. Their names were given as Phillip Francis 37, Simi Francis, 28 and Nerat Francis who was only a few months old. From the reports of the villagers who saw it happen, suspected fulani herdsmen are said to have carried out the attack.

The killings comes hours after the leaders of the Christian Association of Nigeria and the Jama’atu Nasiru Islam met at the Jos Central Mosque to discuss ways of maintaining peace in the crisis-ridden state.

Every one knows the truth behind these attacks, yet no one is willing to say it. There is leadership failure in Nigeria at the moment. When the common people are pushed to their tolerance limit they will surely fight back. It looks as if that day is not far away. Can Nigeria withstand a religious war?

THE REAL COST OF NIGERIAN PMS

THE REAL COST OF NIGERIAN PETROL BY DR. IZIELEN AGBON

An article titled, “The Real Cost of Nigerian Petrol” by one Dr. Izielen Agbon was published by Sahara Reporters, an online newspaper, on 15 December, 2011. After reading the article three times I wondered why a PhD holder with over 20 years teaching experience should decide to do his country such a disservice. His “simplest economics” turned out to be so flawed that I think he deserves a rejoinder.

One online commentator, Ifeanyi-Democracy 4ever, gave him the best immediate response on 16 December 2011. He wrote,

“Dr Izielen's calculation of N33.36 per litre of fuel is FATALLY wrong. This is surprising especially coming from a 'Dr' and former HOD and ASUU chairman. Only God knows how many generations of students this 'Dr' has fed with the wrong stuff. These are some of the persons causing UNIMAGINABLE damage to the system then turn around to blame Govt even for their inability to impregnate their wives.

“Back to 'Dr' Izielen's flawed calculation. According to him the cost of development, storage and transport of crude is $5 per barrel. Refining cost is $12.6 per barrel, pipeline distribution $1.5 per barrel while other distribution margins $16.6 per barrel. Assuming these estimations were right, which I doubt, what about the cost of the crude oil itself, which is $107 per barrel (international market price)? This could only be likened to someone doing an estimate of the cost of producing 'suya meat' without taking into consideration the cost of the starting raw material, which is raw beef.”

I entirely agree with Ifeanyi as explained below. According to the Department of Energy Information Administration, which issues the official United States’ energy statistics, the average cost of the pump price of PMS refined in the USA is as follows: 74% Crude Oil, 10% Refining Costs, 11% Taxes (Fed & State) and 5% Distribution and Marketing. These are Government figures.

A private researcher calculated independently and arrived at the following averages for the 150 refineries in the USA who jointly refine 17.6 million barrels per day: 69% Crude Oil cost, 7% Refining costs and refinery profits, 13% Federal and State Taxes and 12% Marketing and Distribution Costs. The margin of difference between these figures and the official figures is just 3% or less.

Dr. Agbon’s suggestion that in Nigeria, 1 barrel of PMS is refined at $5 for Crude, $12.6 Refining Costs, $1.5 Pipeline & Distribution and $16.58 Distribution Margins, giving a total of $35.7, is a huge departure from US averages and a monumental misinformation to the public. The percentages arising from Dr. Agbon’s figures are 14% for Cost of Crude, 35.3% for refining, 4.2% for Pipeline distribution and 46.5 % Distribution Margins.

PMS SHARE % IN COST OF REFINING 1 BARREL OF CRUDE OIL

US GOVT STATS (%) INDEPENDENT RESEARCH (%) AGBON’S NIGERIAN STATS (%)

CRUDE 74 69 14

REFINING 10 7 35.3

TAXES 11 13 4.2

DIST/TAX 5 11 46.5

TOTAL 100 100 100

Please note that refining processes do differ a lot. We are therefore being very simplistic here and dealing only with averages. However, the catalytic processes adopted by Nigerian refineries are very similar to those of US refineries.

1. Cost of Crude at 14% instead of 69% to 74% is totally unrealistic. Before 2003 Nigerian refineries were supplied crude by NNPC at reduced rates. However, from 2003, they started paying for the 445,000 barrels supplied them per day at international rates. As Ifeanyi aptly exemplified, it’s akin to a ‘suya meat’ producer who does not cost the raw beef he will use because he bred the cow in his house.

2. Was Dr. Agbon right when based all his computations on locally produced PMS and then extended his conclusions to cover imported products? For his information, the Group MD of NNPC recently told the Senate Committee on Petroleum that they sell the remaining crude they cannot refine at international prices. Also, that they don’t run any refinery at less that 60% capacity. Dr. Agbon’s capacity utilization figure of 38.2% (efficiency?) should be clarified. Note that all Nigerian PMS is refined at international costs and must be so priced. There is nothing like a Nigerian price today.

3. After using ‘netback calculation method’ and deducting the cost of ‘swapped petroleum products’ (whatever these mean) Dr. Agbon arrived at $36.86 per barrel for Nigerian PMS which translates to N34.45/lit or $0.22/lit. Does it make sense to say we started with $5 worth of crude and that we should sell the refined product for $0.22? Note that he mixed barrels, gallons and litres in his computations to confuse the reader, not me.

4. Dr. Agbon correctly states that PMS today is sold in the US and Nigeria at $3.52/gallon or N138 per litre. Therefore, at the artificially fixed pump price of N65/litre, there is a subsidy in place right now. Dr. Agbon and Prof. D. West, whom he quoted, are therefore both wrong to say that there is no subsidy on PMS pump price in Nigeria today.

5. Dr. Agbon also did not tell us how many liters of PMS are obtained when 1 barrel of crude oil is refined. He only told us that 1 barrel is equivalent to 142 gallons or 138 litres. The truth is that we only obtain 75 litres of PMS from 1 barrel of crude. Did he factor this into his calculations? He only said the cost of refining 1 barrel in Nigeria is $36.86.

6. Dr. Agbon goes further to assert that the Federal Government of Nigeria is actually charging tax on PMS at the rate of 91.2%. A little arithmetic tells me that this means that whenever I pay N65 for a litre of PMS, the Nigerian Government earns N59 from it. I leave the reader to judge the rationale of this assertion.

Dr. Agbon makes a final suggest ion that labour should not accept Government’s ‘economic fallacy’ of trying to sell us crude oil which Government got for free. Really?

Dr. Agbon finally concludes by calling all Nigerians out to settle this perceived dispute on the streets. He made this call only because his wife, children, house, car and other belongings are safe in Dallas, Texas, USA, where he resides. Is there no better way to resolve this issue?

I believe President Jonathan and his Finance Minster, Okonjo-Owealla, that our Government will spend about N1.4 trillion in 2011 settling bills coming from PPPRA. Why those bills arose in the first place, needs to be verified and stopped if not justified. If Government was subsidizing my fuel purchases to that tune, then I suggest Education be allocated the amount instead and not N400 billion in the 2012 Budget. ASSUU’s demands translate to only N109 billion additional costs according to the Education Minister. We can easily meet ASSUU’s requests.

Subsidy on PMS and Kero in Nigeria is real. Government cannot sustain it any longer because huge corruption has been introduced into its administration and the intended beneficiaries have been outsmarted by a wicked cabal that won’t let the system work. They are among the ruling class. President Jonathan is very brace to plan to end their billion Naira scheme. Please support the removal of all fuel subsidies in Nigeria by 2011 end.

James Pam (jamespam2004@yahoo.com) 18 December, 2011