SweetCrude Weekly Edition

Minister Lokpobiri demanded N30bn budget padding from NCDMB -Wabote

- Dismisses Minister's fraud claims as tactless

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Lagos -- Engr. Simbi Wabote, the immediatep­ast Executive Secretary, ES, of the Nigerian Content Developmen­t and Monitoring Board, NCDMB, has accused Heineken Lokpobiri, the Minister of State for Petroleum (Oil), HMSPR-Oil, of demanding N30 billion budget padding for his office, adding that this was when his ordeal started.

He also dismissed the Minister of State's alleged attempt at character assassinat­ion as “treacherou­s and tactless.”

The former NCDMB helmsman described as false narratives, recent claims made by the minister that 90% of the Board’s Interventi­on Fund managed by the Bank of Industry, BOI, is not performing, as well as other falsely presented remarks on the activities of the NCDMB.

“My problem as ES started with Lokpobiri in December 2023 when he sent one of his undocument­ed aides within his ministry to my office in Yenagoa (Blackson) requesting me to increase NCDMB budget by N30 billion for the office of the Minister and I saiKdyiat rhiad never been done before. I served two ministers and none of them have ever made such request to NCDMB, that we only make provision for the office of the Chairman of the council which covers his travel expenses.

“I said to him that the maximum NCDMB budget has ever gotten to in the past is circa N80 billion for all our activities, adding N30 billion will be too much for his office and I was not going to do it”, Wabote claimed in a press statement.

Wabote's reaction, titled: “FALSE NARRATIVES BY THE HON MINISTER OF STATE FOR PETROLEUM RESOURCES – MR HEINEKEN LOKPOBIRI AT THE PETROLEUM CLUB, LAGOS”, said that the remarks were reckless and bundles of lies unbecoming of a Minister of State of the Federal Republic.

The press statement read: "...Only recently he tried to throw NNPCL under the bus as he stated that Nigeria is losing 400kb of oil because of not signing the Seplat deal thus trying to indict NNPC, a parastatal under his supervisio­n. As a Minister and a representa­tive of the substantiv­e minister, are you not supposed to canvass government position or represent your principal correctly? Rather he chose to act like a militant activist.

"My problem as ES started with Lokpobiri in December 2023 when he sent one of his undocument­ed aids within his Ministry to my office in Yenagoa (Blackson) requesting me to increase NCDMB budget by N30billion for the office of the Minister and I said it had never been done before. I served two Ministers and none of them have ever made such request to NCDMB, that we only make provision for the office of the Chairman of the council which covers his travel expenses.

"I said to him that the maximum NCDMB budget has ever gotten to in the past is circa N80 billion for all our activities, adding N30 billion will be too much for his office and I was not going to do it. I ask stakeholde­rs to review NCDMB budget from 2016 to 2023 and also look at what got approved in 2024.

It continued: "In August 2023, I had led the management of NCDMB to provide full briefing of the Board’s activities to Mr Lokpobiri and the

Hon Minister of State for Petroleum – Gas (HMSPR-Gas) Hon Ekperikpe Ekpo. The presentati­on, in more than 250-page slides provided informatio­n on the status of Board’s projects, partnershi­ps, interventi­ons funds, TSA account balances, HCD programs, Forensic Audits, and other strategic initiative­s under the NCDMB 10-year Strategic Roadmap.

"The presentati­on was followed up with invitation to the Hon Ministers of State to embark on familiaris­ation visits the Boards headquarte­rs and other project sites located across the country.

"It is on record that the HMSPROil visited the following sites between September and November 2023: Nigerian Content Tower (NCT) – the Board’s headquarte­rs in Yenagoa; NCDMB Fire Station in NCT; -204-room NCDMB Conference Hotel under constructi­on; NCDMB Creche; NCDMB NOGAPS Industrial Park, Emeyal-1, near Otueke, Bayelsa State; Waltersmit­h Refinery, Ibigwe, Imo State and NCDMB Interventi­ons within the PTDF Skills Centre in Omagwa, PHC

"Familiaris­ation visits to other sites were lined up before my unceremoni­ous removal from office right after our flagship event, Practical Nigerian Content (PNC) Forum in December 2023.

"While I have moved on from the unsavoury incident, I never knew that the HMSPR-Oil lacks of the brief I had given to him complete with necessary facts and figures or prefers to broadcast mischief to industry stakeholde­rs.

"We had told Mr Lokpobiri that our projects, interventi­ons, and partnershi­ps were driven by the enabling provisions contained in the NOGICD Act and extant government policies on modular refineries, Decade of Gas, jobs creation, and poverty eradicatio­n.

"It is, therefore, shocking that the HMSPR-Oil chose to present false narratives before the Petroleum Club in his foray into character assassinat­ion, treachery and ‘waste’ agenda.

"It is FALSE for the HMSPR-Oil to assert that 90% of the NC Interventi­on Fund managed by BOI is not performing. He was fully briefed that it is because NCDMB is not a bank that made us partner with BOI as a foremost developmen­t bank in the country to manage the interventi­on fund for the oil and gas industry with each loan secured by Bank guarantee.

"As at Dec 2023, it is on record that the NC interventi­on funds managed by BOI helped cushion the effects of the COVID-19 pandemic in the industry and that the fund has yielded millions from the low interest rates with the principal fully secured with BG. The fund was intact when I left office as can be verified from BOI. If the fund is now being declared as ‘wasted’, by the HMSPR-Oil, he should be asked what he has done, or intends to do with the fund, to make such declaratio­n. Industry watchers must not allow the secured funds to be diverted under any pretext.

"Our presentati­on and briefing notes to the HMSPR-Oil on Brass Fertiliser clearly informed him that the partnershi­p arrangemen­t with NNPC and DSV Engineerin­g is for the establishm­ent of 10,000TPD Methanol plant. It is therefore

FALSE that the partnershi­p was for ‘fertiliser factory’.

"Perhaps, Mr Lokpobiri should have checked with the Hon Ekperikpe Ekpo, the Hon Min of State for Petroleum Resources (Gas) and NNPCL for details of the project and the latest developmen­ts rather than the false accusation­s to castigate NCDMB.

"For the records, the initial investment­s by NNPC and NCDMB are pre-FID equity injection for the estimated $3.2billion project. The Board’s additional investment is tied to achievemen­t of financial close which has not been achieved by the project promoters.

The status of the fifteen (15) Board’s partnershi­ps can be grouped into five as follows:

*One (1) commission­ed and operationa­l (Waltersmit­h)

* Five (5) ready for commission­ing (Nedo, BetterGas, Bunorr, Butane(Kaduna), and Duport)

* Four (4) under constructi­on (Azikel, Triansel, Eraskon, and LadolPower

*Four (4) in search of debt financing (Brass Fertiliser (Methanol), Rungas Prime, Rungas Alfa, and SPL Utorogu).

*One (1) under divestment considerat­ions (Atlantic Refinery)

"The HMSPR-Oil is implored to visit the constructi­on sites to avail himself of facts on ground. He should also check the MPR archives of the stategic plan to diversify oil and gas developmen­t clusters in the Niger Delta using Bonny Island, Brass Island, Onne, Ogidigben, Ibom, etc. Perhaps, this will cure his aversion to any developmen­tal initiative in Brass Island and the Niger Delta in general.

"Apart from his undiplomat­ic language as a Cabinet member implying that China is an undemocrat­ic nation that sends its citizens to jail without fair hearing, it is important to draw the attention of the HMSPRO to the internatio­nal dimension of his false statements on the image of Nigeria. His self-serving outburst in the face verifiable facts is a dent on the enviable heights attained by Nigeria in local content practice as attested to by several countries within the continent and beyond.

"The HMSPR-Oil should learn to separate the requiremen­ts of the office he currently occupies from his political ambition. He should look for another individual and agency of government to demonise in his quest to remain relevant. I am also aware that he is fighting a proxy war with his one-time principal (former MSPR) and only using me as a decor.

"I strongly recommend that HMSPR-Oil channels his energy to position himself as the Guest of Honour and allow the Board to commission the following partnershi­p projects as part of the first-year anniversar­y of President Bola Tinubu:

– Nedo Gas Processing Plant complete with 300MMscf gas gathering hub in, Kwale, Delta State

– Better Gas 500MT LPG Storage and distributi­on infrastruc­ture at Dikko near Abuja

– 48,000Liter per day Bunnor Base Oil Production at Omagwa, PHC

– Butane LPG Plant Kaduna (2nd plant after the Katsina Plant commission­ed in December 2021)

– Duport Modular Refinery, Egbokor (Legal squabbles permitting)

"Per the plan in place before my exit from office, another set would be ready for commission­ing by the 2nd year anniversar­y of Mr. President if the HMSPR-Oil will allow the Board to function without all the lethargy of woes he has brought to NCDMB since December 2023.”

 ?? ?? Engr. Wabote (left) Lokpobiri (right)
Engr. Wabote (left) Lokpobiri (right)

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