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B N W: Biafra Nigeria World News |
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Council of State grants Obasanjo power to crush rebellion
THE National Council of State (NCS) yesterday showed its deep concern over the state of the nation and gave President Olusegun Obasanjo power to use all legitimate means to crack-down on all groups threatening the security of the country.
Military authorities also yesterday warned that it would move against all insurgents, particularly the group currently carrying out violent attacks on oil installations in Rivers State.
Already, the crisis in the region, as well as the instability in the Middle East and the damage to the United States (U.S.) production from Caribbean's hurricanes, yesterday pushed crude oil prices above $50 (N6,650) per barrel. The prices slipped back marginally before press time yesterday.
The Presidency has invited the Chief Executives of oil companies operating in the country.
The Council of State, an advisory body of all the 36 state governors, former Heads of State and presidents, former Chief Justices of the Federation, Senate President and Speaker of the House Representative, has President Obasanjo as chairman.
The Council also laid to rest the lingering controversy over the revenue windfall from excess crude, agreeing on a sharing formula for the about N629 billion earnings expected from excess crude oil sales. While 50 per cent of the expected proceeds, amounting to N318.5 billion, will be saved as stabilisation fund, in case there is a future fluctuation in the international price of crude oil, the remaining 50 per cent is to be shared among the three tiers of government.
The Council also approved the conferment of national honours on 187 Nigerians and some foreigners.
Governors Olagunsoye Oyinlola (Osun), Alli Modu Sheriff (Borno), Sam Egwu (Ebonyi) and Chris Ngige (Anambra) who briefed State House journalists after the meeting, said that the Council did not take kindly threats by groups against the security of the country.
Egwu said: "The Council discussed threats by groups against state security. The Council asked the President to take adequate measures to deal with anybody threatening our country. The President has our full backing. We are not playing with that at all."
In recent times, there have been threats from some interest groups against the sovereignty and peace of the nation with some youth groups threatening to blow up pipelines in the Niger-Delta. This has resulted in the rise of crude oil prices in the international market.
Already, the military has been placed on full alert in the area. The aim is to root out the militants who have been perpetrating persistent killings and instability in the region. But the operational bases of the militants are in the remote creeks, which are still outside the reach of the Navy or Army troops. Also, the terrain is very treacherous and the re-supply of such troops inside the creeks usually poses logistical problems and is difficult without full-scale operations authorised by the military high command.
On the excess of oil revenue, Oyinlola stated that 13 per cent of the sum would go the oil producing areas as derivation fund, while 37 per cent would be distributed by the three tiers of government. Giving the details, the governor disclosed that N318.5 billion would go to the stabilisation fund, the remaining N318.5 billion would be distributed thus - the 774 local councils N57 billion; the 36 states N74 billion, Federal Government N146 billion, and derivation for the oil producing states N41 billion.
The Council also agreed that the effective date for sharing the earnings would be January 2005 to enable buyers of Nigeria's crude fully credit the nation's account.
It also agreed that the sharing would take place during the monthly Federation Account Allocation Committee meeting on a pro-data basis to stall negative inflationary impacts on the economy.
Egwu said the money would be spent only on capital projects in the areas of re-equipping the defence sector, power and steel, security, agriculture and the provision of infrastructure.
Though details of the number of deserving awardees were not yet available, the list shows that one person would receive the GCFR. Others include CFR (five), CON (23), OFR (49), OON (55), MFR (44) and MON (13).
President Obasanjo also briefed the Council on the service delivery unit (Servicom), advising the states to adopt the programme to give a new face to public service delivery in the country.
Present at the meeting were Vice President Atiku Abubakar, former President Alhaji Shehu Shagari, former Head of State, Gen. Yakubu Gowon; former military President, General Ibrahim Babangida; former chairman of the Interim National Government, Chief Ernest Shonekan; former Chief Justice, Mohammed Bello; Speaker of the House of Representatives, Aminu Masari and about 30 governors.
And piqued by fresh threats from armed youths to attack oil companies operating in the Niger-Delta, the Nigerian Army yesterday vowed to crush the insurrection.
The Nigerian Army's action was prompted by a threat by the Niger-Delta People's Volunteer Force (NDVF) led by one Mujahid Dokubo-Asari to begin mass attacks on oil companies from October 1, when Nigeria will mark its 44th Independence anniversary.
The Joint Military Task Force (JTF) set up by the Federal Government to quell all acts of armed struggle by militia groups operating in Rivers State said it had been catalysed to embark on full military operations in the creeks.
The task force now on a mission code-named Operation Flush Out warned Dokubo-Asari to stop stirring internal insurrection.
In a statement by the Army Public Relations Officer, 2 Brigade, Port Harcourt, Captain O.G. Kanu, the military said that since inauguration early this month, it had been using kids' gloves in dealing with the gangsters because of past antecedents of military involvement in internal security operations and the resultant public opinion. He, however, said that with unguarded threat from the leader of the NDVF, the military had no other option than to deploy its might against the insurgents.
"The JTF is therefore cautioning Dokubo-Asari and his likes to stop stirring internal insurrection in the state. The entire citizens of Rivers State and expatriate oil workers are advised to go about their usual businesses. The JTF has instituted a 24-hour patrol in Port Harcourt and its surrounding creeks. There are also crack teams of standby troops to reach any part of the state on short notice," he said.
Kanu dared the armed youths who doubt the military's resolve to attack any installation first. The military has been involved in series of attacks on suspected bases of the militiamen. The Ijaw National Congress (INC) recently accused the military of using chemical weapons in its operation, an allegation, which the Army denied.
The military's assurances notwithstanding, Shell Petroleum Development Company (SPDC) has evacuated its non-essential workers from some of its oil installations in the state, particularly those in the creeks such as Soku, Ekulama and other areas, which the company suspects there was tension. Shell's Manager, Public Affairs East, Mr. Bobo Sofiri Brown, in a telephone interview, disclosed that because of the growing tension in these areas, SPDC had sent a report to both the Rivers and Bayelsa state governments that it is no longer safe for it to maintain the same level of operation as it would not want to expose the workers and communities in its areas of operation to danger.
Brown said that Shell had not been directly warned by the youths but given the heightened tension in the area, it would be preposterous to expose people to danger. Shell, according to him, had reduced the volume of traffic to its installations inside the creeks of both Rivers and Bayelsa.
In a response to Dokubo-Asari's allegation that it provided helicopter to support the security agencies during recent attacks on some of his suspected bases in Rivers State, Nigeria Agip Oil Company (NAOC) flatly denied if. The firm's General Manager Public Affairs, Akin Aruwajoye said that the company had neither received any request for nor provided any helicopter for use by any security agency in the Niger Delta or any other part of the country.
"All our helicopters are licensed for civil use and are deployed exclusively for the business of oil and gas exploration and production", he said.
Rivers State Governor Peter Odili has also denied supporting any of the rival gangs in the state. Odili said the recent insurgency was carried out by a group of criminals stealing the country's oil to cause mayhem.
In a chat with the British Broadcasting Corporation (BBC) yesterday, the governor described the threat by Dokubo-Asari to launch full-scale war in the areas as an empty threat.
"I am one of the most peaceful politicians in the country. I have been in politics for 14 years and you cannot associate me with any form of violence in any state. I have no need for it. Before the elections, I had long been declared unchallenged. So, there was clearly no need for us to need the support of criminals. It has nothing to do with politics. It is illegal bunkering of Nigeria's oil, that is the economic root of it all.
Turning to the armed gang, Odili said: "Let them try and they will see the might of Federal Republic of Nigeria."
But Saudi Arabia, the world's largest petroleum exporter, is already working for lower prices. One of its senior oil officials said yesterday that the country would raise its production capacity by nearly five per cent to calm prices.
Nigeria, Africa's top oil exporter and the seventh in the world, is also taking steps to keep its production lines working despite threats by the Ijaw youths to disrupt production.
Acting on the assurances of the Federal Government on their safety, the major oil companies have said they would not quit the region.
In response to the increase, Saudi Arabia announced it would raise its oil production capacity from 10.5 million barrels a day to 11 million barrels in order to "stabilise" prices. It is currently producing about 9.5 million barrels daily.
By increasing capacity, Saudi Arabia will be able to raise production when it wants. A Saudi oil ministry official, speaking on condition of anonymity, said that the Kingdom would increase production "depending on demand."
The capacity increase will go into effect within weeks, using new fields where production has just begun, Oil Minister Ali Naimi said.
"The fields of Abu Safa and al-Qatif, which have just started production, will be used to increase the Kingdom's production capacity in the coming few weeks to 11 million barrels per day," the minister said in a statement.
"In light of the recent developments in the oil market and the increase in prices that exceeded $50 ... Saudi Arabia is closely monitoring the various developments in the international oil market and is working on stabilising that," he said.
By mid-afternoon yesterday in Asia, light sweet crude oil for delivery in November traded at $50.47 per barrel, up 83 cents from the close of Monday's regular session in New York. Later, November crude was up 41 cents a barrel at $50.05 in electronic trading in advance of the Nymex opening yesterday.
Oil prices rose despite assurances from Purnomo Yusgiantoro, the president of the Organisation of Petroleum Exporting Countries (OPEC). He said producers are trying to bring prices down after an announcement two weeks ago that the cartel would boost its production target by one million barrels a day failed to move the price lower.
"The latest spark was the reported increase in fighting in Nigeria," said ANZ Bank energy analyst Daniel Hynes from Melbourne, Australia. But the damage from Hurricane Ivan "certainly paved the way for the latest surge."
Some armed youths in Nigeria continue to battle for control of the vast southern oil fields in the world's seventh largest exporter.
That rattled markets, even though Nigeria's military dismissed the threat and Senior Adviser to the President on Petroleum Matters, Edmund Dakouru, told Dow Jones Newswires he is confident that foreign oil companies won't succumb to threats by militiamen that they must halt production.
"We have had these kind of threats before and nothing has happened," Dakouru said. "And I am not concerned that Nigeria's oil industry will suffer as a result of these threats."
Shell's spokesman, Mr. Don Boham, had earlier said that "we are not in any way moved by the threat. We believe the Nigerian security forces are equal to the task of safeguarding oil installations and protecting workers." An official for Agip said the company would continue with business as usual.
"We will not halt production because of the threat. We are still up and running. We know the Nigerian government will not close its eyes and allow disgruntled elements to disrupt its main source of livelihood."
Also, a spokesman for French oil group Total said in Paris that the threat would have no impact on the firm's production in Nigeria, but added: "We are closely watching to see how the situation develops."
Defence spokesman. Colonel Ganiyu Adewale who also dismissed the threat said: "It is an empty threat that should be ignored. The military are in control of all oil facilities in Nigeria. The Nigerian military will never allow any armed gang or a group of bandits to toy with the nation's destiny."`
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