NDM DEMOCRACY WATCH 01: Oil Contracts, Diplomatic Postings and , Other Matters

[Mobolaji E. Aluko]

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THE NIGERIAN DEMOCRATIC MOVEMENT (NDM)
Committed to a United and Democratic Nigeria

NDM DEMOCRACY WATCH 01
'That The World May Know'

Press Reports: Oil Contracts, Diplomatic Postings and Other Matters

April 13 1999
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AFRICA CONFIDENTIAL 2 April, 1999
Vol. 40, No. 7

NIGERIA

MUDDY WATERS

Friends of President-Elect General Olusegun Obasanjo say he is incensed by
the decision of the outgoing miltiary regime under General Abdusalami
Abubakar to award 11 oil exploration blocks and eight oil lifting
contracts to a group of well-connected military officers and local
businessmen. The lack of accountability in the awards of some of West
Africa's richest exploration acreage (alongside blocks where Shell, Texaco
and Agip have made major discoveries) may have cost the treasury millions
of dollars.

Some Western officials say the awards and the associated mismanagement of
public funds could damage Nigeria's chances of securing debt relief.

How Obasanjo tackles this issue will be an early indicator of his ability
and determination to make the oil business more accountable. Abuja
insiders expect him to take personal charge of the oil sector after his
scheduled inauguration on 29 May and to appoint a high-level oil advisor.

A former chairman of the Berlin-based anticorruption lobby Transparency
International, Obasanjo's reported ire is understandable. The awards were
finalised during his triumphal post-election overseas tour to re-establish
Nigeria's diplomatic and financial credibility. The state-owned Nigeria
National Petroleum Corporation (under the control of Abubakar and the
Provisional Ruling Council) didn't open a public competitive tender; only
one of the 11 exploration blocks has been granted to a local oil
exploration and production group with a proven track record, Amni
International. The Chairman of Amni is Sani Bello, whose son Abu is
married to Abubakar's eldest daughter, while economic adviser for the
victorious People's Democratic Party Emmanuel Edozien is a director of
Amni.

Arousing greater suspicion in oil company circles are the powerful figures
associated with the other 'virtual' oil companies. Under the terms of the
contracts, the recipient companies must pay signature bonuses of US$20 mn.
Each to NNPC by 7 April. They must also assure NNPC's exploration
division they are capable of development. Apart from Amni's block,
foreign companies are lifely to be brought in both to pay the signature
bonus and an additional 'joining fee' of a further $10-20 mn.

Nigerians associated with the other ten awards include the glitetterati of
military-business circles:

OPL (oil prospecting licence) 215 - Anchorage Petroleum (Chief of Defence
Staff Air Marshal Al-Amin Daggash)
OPL 242 - DajoOil (Chief of Army Staff Gen. Ishaya Bamaiyi and leading oil
trader Mike Adenuga)
OPL 243 - Ozeko Energy Resources (Chief of General Staff, Vice-Admiral
Mike Akhigbe)
OPL 244 - Totex Oil (Brigadier Anthony Ukpo and Texaco)
OPL 245 - Malabo Oil (former Oil Minister Dan Etete who uses his Ghanaian
name Kweku Amafegha on company documents and senior diplomat 'Alhaji
Aminu')
OPL 247 - Heritage Oil and Gas;
OPL 248 - Zebra Oil and Gas (trader Leni Adesanya of Lenoil has
approached Mobil);
OPL 249 - Oil and Gas Petroleum Limited;
OPL 314 - Paragon Group of Companies (Prince Oladoyin)
OPL 315 - Lagoon Petroleum (Gilbert and Jack Chagoury)

Foreign exploration companies are sceptical about whether awards will
stand. Concern that Obasanjo migh rescind the contracts on taking office
deters them from teaming up with what they regard as Nigerian front
companies. Even those who believe the wards were part of an agreed
'golden parachute' plan for the outgoing military and their business
allies believe that most of the companies won't deposit the necessary $20
mn signature bonus by 7 April.

Some Abuja watchers detect a wider pattern. The Abubakar regime announced
41 senior diplomatic appointments this month. Although all 41 are career
diplomatic posts, some are said to have made way for political
appointments, such as former Internal Affairs Minister Babagana Kingibe to
head the Embassy in Spain and serving Information minister John Nwodo to
become High Commissioner to Britain. Perhaps most significant was the
statement by Defence Chief Gen. Daggash that while Gen. Abubakar and
Vice-Admiral Akhigbe would retire on 29 May because they were political
appointees, the service chiefes (including himself and Chief of Army Staff
Gen. Bamaiyi) would stay on, with Chief of Naval Staff, Vice Admiral
Jubril Ayinla and Chief of Air Staff Air Marshal Nsikak Eduok.)

As an afterthought, Gen.Daggash added that any subsequent redeployment of
officers would be, of course, the prerogative of the incoming civilian
government.

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Guardian 4/13/99

Govt accredits 52 envoys, sets agenda

>From Oghoghor Obayuwana,Abuja

ELEVEN more principal representatives of Nigeria's foreign missions have
been appointed, bringing to 52, the envoys so far named in current efforts
to lift the country out of international isolation.

They were told yesterday by Gen. Abdulsalami Abubakar to ensure that
Nigerians abroad are henceforth treated with "dignity, understanding,
respect and compassion."

Handing the envoys, including the 41 earlier named, their letters of
credence, the Head of State told them: "You should demand of your host
authorities, fair and humane treatment, for all our nationals, whatever
the circumstance."

Envoys presented with letters yesterday, and their postings, include Mr
Titilayo Odegbile (Algeria), Ambassador Dahiru Muhammed Abubakar
(Argentina), Ambassador Mustapha Sam (Australia), Mr Mahmud M. Bauchi
(Benin Republic), Miss Olajumoke Oladayo Harrison-Obafemi (Botswana), Mr
Lawal Mohammed Munir (Burkina Faso), Mr Augustine Aba Agada (Cameroun),
Alhaji Abdul Aziz-Garuba (Canada), Miss Agnes Abake Ilemia (Central
African Republic), Ambassador Kabiru Ahmed (China), Mr Ganiyu Oladapo
Akanbi (Congo Republic), Mr Kehinde Onwazu Olisemeka (Cote d'Ivoire), Dr
Philip Obioma Oparah (Cuba), Miss Julie Joke Ayorinde (Czech Republic),
Ambassador Eineje Egbadekwu Onobu (Ethiopia, the Organisation of African
Unity and Economic Commission for Africa), Mr Lazarus Chukwuma Chigewe
(Equitorial Guinea), Mr Samuel Adeleke Olusola Owoeye (Guinea, Conakry),
Mr Emmanuel Agum (Hungary), Mr Habib O. Elabor (India) and Dr Nurudeen
Aliyu (Iraq).

Others include Mr Edward Egbara (Israel), Ambassador Gabriel Sam Akunwafor
(Italy), Mrs Florentina Adenike Ukonga (Jamaica), Ambassador Edward
Abiodun Aina (Jamaica), Ambassador Nkemjika Ulaku Odaru Wadibia-Anyanwu
(Kenya), Mr Adoga Onah (North Korea), Mr Olanrewaju Falola (South Korea),
Alhaji Idris Kuliya Alkali (Kuwait), Mr Abdul-Kabeer Ali Assayouti (Mali),
Alhaji Mohammed Saleh Abdul-Wahab (Morocco), Mr Ezekiel Olaniyi Oladeji
(Mozambique), Alhaji Bala Sokoto (Niger Republic), Mr Abba Abdulkadir
(Pakistan), Prince Ademola Olugbade Aderele (Philippines), Mr James Ladan
Umaru (Poland), Mrs Mandu Ekpo Ekong (Portugal), Mr Uchenna Onyekwe Okeke
(Romania), Mr Emeka Ayodele Azikiwe (Russian Federation), Mr Sam Joe Edem
(Senegal) and Mr Olufemi Aina Owoaje (Sudan).

The rest are Ambassador Simeon Adewale Adekanye (Switzerland), Mr Jones
Ayo Ajayi (Togo), Ambassador Abubakar Udu (Tunisia), Mrs Adeyombo Olubunmi
Oyesola (Venezuela), Mr Samuel Adelana Otuyelu (Yugoslavia), Mr
Abdul-Kadir Bin Rindap (Zambia), Ambassador George Ochekwu Ajonye
(Zimbabwe), Alhaji Abdullahi Madaki Bage (Nigeria/Niger Joint Commission),
Ambassador Pius Ikefuan Ayewoh (United Nations Office, Geneva), Mr Godfrey
Bayour Preware (Ambassador In-Situ, Alhaji Mamu Sanusi (deputy high
commissioner, United Kingdom of Great Britain) and Mr Kennedy Folorunsho
Felix Apoe (deputy permanent representative, United Nations Office, New
York).

Diplomatic sources told The Guardian shortly after 41 envoys were
appointed in March that about 30 more would be named after securing
agrement from proposed host countries.

Gen. Abubakar himself said recently that more envoys were to be appointed
as agrement from respective host countries trickled in.

He charged the envoys yesterday to reassure their host authorities of
Nigeria's determination to entrench a stable democratic system. According
to him, as the Federal Government expects them to defend Nigeria's
interest abroad, the envoys are also to vigorously pursue measures that
will facilitate the country's economic regeneration and growth.

Success in this regard, he said, would be measured by "how much investment
and business you are able individually and collectively to attract to
Nigeria ... Your efforts must take due cognisance of our policy of
commercialisation and privatisation ... In an increasingly interdependent
world, it is imperative that our foreign policy must adapt to these trends
if the prosperity of our country and the welfare of our people are to be
assured."

The Head of State added: "The climate in which you will function as
principal envoys of our country is a considerably favourable one. This has
been due largely to the policies of the administration which have been
anchored on the pursuit of national reconciliation and democratic reforms
at home, as well as repairing strained relations and winning friends
abroad for our country. Indeed, your appointment is an integral part of
the transition programme which has now been virtually concluded ..."

Observing the large number of female ambassadors-designate accredited
yesterday, he said it reflects the administration's deliberate policy and
commitment to the promotion of equal opportunity for all Nigerians to
attain the pinnacle of their profession irrespective of gender."

Foreign Affairs Minister, Ambassador Ignatius Olisemeka, at the brief
ceremony, said he was making the envoys' presentation with a deep sense of
pride and satisfaction, "given the auspicious circumstances of our nation
and the unmistakable commitment of government to restoring the country to
its traditionally robust and positive role in world affairs." He declared
in a breath full of satisfaction: "Ours is a mission accomplished."

The minister assured that the newly appointed envoys - most of them career
officers - have had at least 25 years of working experience at the Foreign
Affairs Ministry. Even the non-career appointees, he noted, "are persons
of no less experience."

"I assure you (Head of State) that they have been properly trained and
(they) possess the requisite and professional skills and competence to
represent the country and project, in a non-partisan manner, the policies
of any administration and government," he added.

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Bamaiyi orders re-orientation of troops towards democracy

By Madu Onuorah, Defence Correspondent

ALL army commanders must begin immediately the reorientation of their
troops towards democracy, the Chief of Army Staff, Lt.-Gen. Ishaya
Bamaiyi, ordered in Lagos yesterday.

They are also to ensure that all units give total support to the Federal
Government in its resolve to quit governance on May 29, 1999.

Lt.-Gen. Bamaiyi, represented by Chief of Administration Army
Headquarters, Maj-Gen. Mishak Odaro, at this year's Training Week of the
Army's Joint Combat Support Units, enjoined military to service
operational facilities in their care so as to earn the confidence of the
nation whose tax payers money is used to acquire them.

The army chief stressed the need for participants to come up with sound
ideas to realise the corporate objective. He told them: "Your training
together will readily expose a lot of areas in which there can be
co-operation and pooling of resources to support the Nigerian Army in
operations within and outside the country. The effective utilisation of
available resources will ensure the attainment of desired goals."

According to him, the Army leadership is prepared to ensure ready supply
of equipment "within available resources." He added : "The Army is also
not out to ask you to provide the much desired services in a vacuum. The
provision of logistics stores has continued to occupy an important place
in the current effort to re-equip the Army."

Lt.-Gen. Bamaiyi charged other logistics corps to start local manufacture
of military items, so as to have a self-reliant force. He added: "The
transition is almost concluded, and the resolve of this present
administration to return the country to democratically elected civilian
government on May 29, is real. I, therefore, want you to enlighten your
troops on the need to support the Federal Government towards the
achievement of the set objectives."

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>From Saxone Akhaine, Kaduna

FORMER Kaduna State Governor, Alhaji Balarabe Musa, has joined critics of
government's plan to retain all service chiefs beyond the May 29 handover
date.

Speaking yesterday in Kaduna, Musa said the presence of the service chiefs
in a civilian dispensation would make excesses of the military difficult
to curtail.

He advised the President-elect, Olusegun Obasanjo, to learn from last
week's incident in Niger Republic where former President Ibrahim Bare
Mainasara was killed by members of his guard.

Describing as genuine and legitimate fears that the present service chiefs
have been politicised, he said: "It is well known that they have served
past military regimes in various capacities and we know what the military
governments have now led us into.

"And we know that whoever is the president of Nigeria, whether military or
civilian, will have to take into account what has happened in the country
since 1960 particularly within the military and therefore what corrective
measure he should take."

Advancing reasons why the service chiefs will constitute a stumbling block
to the next civilian administration's quest for reforms, he said:
"Assuming Obasanjo wants to take corrective actions, which I believe he
must, and these are actions to expose previous military regimes in the
mismanagement of the economy, obviously it would be revealed that those
service chiefs participated in most policy decisions.

"And if they remain, they may try to stop any action directly against the
past regimes of which they served. So I think it is safer really to
replace the service chiefs."

The former second republic governor who expressed confidence in the
ability of Obasanjo to handle such a crisis situation, however, said: "Of
course, I have been aware of the fact that even if you replace them (the
service chiefs) with their subordinates who also may have understood what
was on the ground, they may have the desire to protect themselves or their
bosses."

He advised Obasanjo to avoid lopsided appointments into sensitive posts
especially in the military, saying federal character should be given
utmost priority.

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1999 Constitution will shock Nigerians, says Falana

>From Ifedayo Sayo, Osogbo

NIGERIANS will be disappointed by the contents of the yet - to - be -
released 1999 Constitution, Lagos lawyer Mr. Femi Falana has predicted.

Speaking at the quarterly lecture of the Committee for the Defence of
Human Rights, Ondo State University, Ado-Ekiti branch, at the weekend,
Falana said the constitution was being kept away from Nigerians because of
certain provisions which are likely to generate heated debate.

Essentially, the constitution, according to Falana, will contain
provisions that will forbid the in-coming civilian government from probing
the past military administrations.

This provision, he said, was crafted to save the regimes of Generals Sani
Abacha and Ibrahim Babangida from public scrutiny.

He continued: "I can assure you that by the time the constitution is
handed over to the civilians, its contents will shock Nigerians.

"They will discover that it contains a provision which stipulates that the
civilians cannot probe any military man who held political appointment
between December 31, 1983 and now."

Falana also described the accusation of Chief Olu Falae, the defeated
presidential candidate of All Peoples Party (APP), that General Olusegun
Obasanjo was an Ogboni cultist, as a diversion.

As far as he is concerned, Falae should have concentrated on the
frightening statistics of enormous rigging allegedly committed during the
election.

The on-going transition programme, according to the lawyer, arose from the
injustice done to Chief Moshood Abiola, whose victory in the June 12, 1993
election was annulled.

He then called for an independent probing of the death of Abiola in
detention in July 7, last year, saying poison could not be overruled as
the cause of his death.

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VIGILANCE - KEYWORD FOR NIGERIA

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