That Inflammable Battle Between Fuel Depot Owners and the Cardoso Family

There is a strong allegation of threat to the eight petroleum depots and other oil and gas facilities at Kirikiri Town, Apapa, in Apapa Local Government Area of Lagos state. The dreadful plan of the adversaries, according to one of the senior workers, is to disrupt the movement of vessels supplying fuel to these depots. This, he stated matter-of-factly, would inevitably cause a major fuel crisis in the country.

The disposition of some stakeholders in the oil and gas industry is that the Federal and Lagos State governments must, as a matter of urgency and necessity, proactively intervene to prevent this looming crisis as the success of such a vicious sabotage would almost instantly plunge the country into a major fuel and security crisis.

To be sure, just two of the eight depots, Swift Oil Limited and BOVAS Group operate over 200 fuel outlets in the country with about 35million litres of fuel in the belly of their petroleum storage depots. This means that the gaseous hydrocarbons in the tanks of these two companies alone could serve the entire country for, at least, two or three days. It becomes easy then to visualise the ruinous impact that shutting down these two behemoths would have, how much more eight of them. This explains why both Lagos State and the Federal Government must not treat this threat with the usual mute indifference because it portends frightful consequences for the economy and security of the nation.

But it wasn’t as if these threats came as a total surprise. The tragic drama that played out on Tuesday, August 8, 2023, at the premises of these organisations, was a dismal omen of what was to come. On that day, Bailiffs and some officials of the High Court of Lagos State besieged Kirikiri Town and sealed off the eight depots belonging to these members of the Kirikiri Town Depot Owners’ Association as well as residential buildings in the community. The depot owners received this news of what looked like a judicial coup with an incredulous gasp. First, they were not in any legal tussle with anyone, neither were they a party to any suit over their titles. They therefore came to the grim conclusion that this must be one of those extortion rackets that have become the ordeal of many property owners in Lagos due to the unconscionable acts of some family outlaws and land grabbers backed by some mercenary Lawyers. But this one would even be much more complicated.  Perhaps an accentuated version by a more resolute group.

The Depot Owners  soon found out that a group of nine persons that claimed to be the great grandchildren and members of the family  of the original owner of the land they bought had gone to the court and shockingly obtained a Consent Judgement given by Honourable Justice Jumoke Pedro on Monday,  June 23, 2014 in Suit No. M/7/2014. The very Honourable Judge gave this far reaching judgement without giving those so gravely affected the opportunity of appearance to canvas their position. A suit that the outcome could mortally alter the economic  wellbeing of this country went through a full adjudication almost covertly without making those directly affected parties to the case. It is important to stress this acute omission because the judiciary cannot exist without the trust and confidence of the people. It is in fact the belief by the people that their Judges are fair and impartial that sustains and drives the judiciary.

Now, here is what happened.  Those nine people that claimed to be members of Cardoso family, the parties to the suit, split themselves into claimants and defendants over the Estate of late Lawrence Anthonio Cardoso,  the authentic owner of the Estate. This is a very familiar extortionist strategy that is prevalent in Lagos. It is commonplace. And true to the usual outcome, they were given a sweeping Consent Judgement that set aside all previous dealings in properties forming part of Lawrence Anthonio Cardoso Estate while the Administrator-General and Public Trustee of Lagos state was authorised and mandated to take possession of all properties in the estate.

The Lawyers to the depot owners felt strongly that the court was misled to give this horror inflicting judgement. And so they approached the court with an Originating Summons in suit No. LD/1679/LM/2017 to redress this judgement. But Justice O. O. Ogunjobi would not hear the case. Instead he referred them to the Lagos Multi-Door House for mediation. Expectedly, the judgement creditors, the group of nine allegedly demanded N500million from each of the eight organisations. The serious minded business moguls behind the depots could not take this barefaced brigandage. And so their Lawyers returned to the courtroom. But their

suit was dismissed by Hon. Justice O. O Ogunjobi in a judgement delivered on Monday, July 10, 2023. And pronto, on that same day, the Applicants obtained a warrant of possession for the execution of the judgement. This is despite the fact that the judgement contained no order for possession and was essentially declaratory and not amenable to execution.

Now, to appreciate the curious thing about this matter in issue, you need to understand the fact that none of these depot owners bought their land from Cardoso, the original owner of the estate who died on February 11,1940. For instance, it was only in 1977, about 37 years after Cardoso’s passing, that one Prince Jeremiah Cousin Mosheshe bought a parcel of land from the six biological children of the late Lawrence Anthonio Cardoso. The Prince, Mosheshe, did not forget to register this land with the Lagos State Land Registry and indeed perfected his title by obtaining Governor’s Consent.

In the next 20 years, more people would acquire varying parcels of land from the late Cardoso children and grandchildren, in the same manner that the children and grandchildren of this Prince Mosheshe also sold parcels of their land acquired from the Cardoso family. Among those that bought their lands from the Mosheshes were some of these fuel depot owners that operate under the aegis of Kirikiri Town Depot Owners’ Association. Having done due diligence and convinced they had a perfect title that paraded the signature item called Governor’s Consent, they commenced their capital intensive petroleum business on these lands.   For over 20 years they ran their businesses without any hindrance. But all that changed on that Tuesday, August 8, 2023, when some Bailiffs and court officials sealed off their properties and many residential buildings in Kirikiri Town.

In their counter affidavit, these purported members of Cardoso family, claimed that Lawrence Anthonio Cardoso died intestate and dispute subsequently arose among his children over the distribution of his property.  They further claimed that some of the children sold some parcels of land without obtaining Letters of Administration to administer the Estate. Then,  after over 75 years of Cardoso’s death, one faction of his family members suddenly instituted a suit against another faction and the final outcome was the sealing of eight depots through a process that may be viewed by the victims as deliberately opaque.

And now, in a publication on Monday, November 20, 2023, the Lawrence Anthonio Cardoso family, led by the Family Head, Chief Tunlese Cardoso,  came out to put up a disclaimer addressed to the Inspector General of Police and the general public describing the  nine judicial adventurists as the unscrupulous members of the family “who have been working with some notorious land grabbers in Lagos to deny people who genuinely bought and leased landed property from our family in Kirikiri Town for a long time, the right to own and enjoy their properties…”.

From this publication alone, it is clear that the owners of the sealed depots and other oil and gas facilities as well as residential buildings are mere victims of a conclave of predatory land owners and the ritual of extortion still pervasive in the acquisition or disposition of family estates in Lagos.

The Executive Governor of the State, Babajide Sanwo-Olu understands these convoluted transactions in his State. For this reason, he allegedly brokered a temporary truce that allows the depot owners to continue to carry out their businesses pending the determination of their appeal. But now, the group of nine and their agents are reportedly threatening to disrupt their business in breach of the deal reached with the Executive Governor. And this is why it is critical for the Executive Governor of Lagos State and, indeed, the Federal Government to make a crucial intervention that will bring about a lasting resolution to this dispute. And the time is now. Anything to the contrary is to set in slow motion a process that will culminate in an  economic catastrophe in Nigeria.

FG ruining our businesses with stevedoring, downstream sector players cry out

Some stakeholders in the Nigerian downstream oil and gas sector have expressed concerns about the inclusion of additional costs that were not originally included in their pricing template. They have singled out Stevedoring as one of the costs that were added without prior agreement.

According to the stakeholders, while stevedoring (the act of loading or offloading cargo to and/or from a ship) is a common practice in other sectors of the oil and gas industry, such as upstream and midstream, it cannot be accommodated in the downstream sector’s costing template at the moment.

Said one of the top Executives of an oil marketing company: “For the downstream business, which is where we are at, yes, the upstream business is slightly different. They run their transactions dollar-based. So I guess they can pay money in dollars. We (downstream players) run our transactions in Naira. Everybody knows that Premium Motor Spirit (PMS) is not deregulated yet; that is the truth, the reality. “

“So given the restriction there, it even makes it difficult to accommodate any other cost that is not within that pricing structure. The pricing structure is clear. It talks about vessels. It talks about anything that has to do with your vessel’s activity. It is specific. If you log on to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Petroleum Products Pricing Regulatory Agency (PPPRA) websites, you will see that there’s nowhere where stevedoring is mentioned,” added this stakeholder.

He noted further: “When they start to introduce those things into that cost structure, then we are unable to sell, or rather, it’s either you are selling at a loss because you are including costs that are not in regulated templates, or you can’t sell within the limitation of the regulated price.
I don’t know; sometimes I feel as if a lot of these things are done due to a lack of knowledge. So if you give Stevedoring to the upstream companies, their system is robust enough. It has a deregulated structure.
But we should always know that you can’t be saying you want us to reduce costs and, on the government side, keep increasing them. So yes, there’s an act guiding it.”

Given the prevailing uncertain situation, downstream sector stakeholders are calling on the Federal Government and regulatory agencies like Nigeria Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA) to involve major stakeholders before making rules and signing such policies and initiatives into law.

“First, the government should engage the stakeholders; people shouldn’t sit where they sit and just make rules around things they know very little about. So it is not just about what the downstream sector wants. Let’s engage so that you better understand our business”

He added, “At this point, with where we are with petroleum product in this country, Stevedoring should not be applied to us. Stevedoring is in dollars or cents per litre. You don’t denominate your business in dollars because whatever we sell, we sell in naira and kobo. So, you can’t apply the same laws that you apply to upstream or midstream to downstream. That’s why I said that there’s a lack of understanding.
So the first thing to do is to engage the stakeholders in that sector. When you engage, then we can make a decision. For us, the decision is that they need to take stevedoring out of our costing template. We can’t apply it as we speak.
We need to talk about it. Do you understand our business? Let us describe what we do to you, and when we describe it, the resolution will be clear. As we have said, you can’t apply stevedoring to the downstream sector.”

“The authority in charge of stevedoring is the NPA, and they are part of the government. We have to engage them extensively, and like all government parastatals, they do not listen; they just stick to the fact that it has been gazetted and is law,” a concerned stakeholder noted.

Meanwhile, the Maritime Workers Union of Nigeria, (MWUN) had in August said the level of engagement of indigenous Stevedoring firms on oil platforms across the country currently stands at 60 percent.

President General of MWUN, Comrade Adewale Adeyanju while speaking with newsmen said that most of the multi-national oil companies are beginning to engage stevedoring contractors.

Adeyanju, also said that although the NPA was yet to disclose the number of IOCs that are complying, there has been a steady increase in level of compliance.

“The level of compliance by the IOCs on the engagement of Stevedoring companies has reached 60 percent. The once powerful multi-national companies are now engaging Stevedoring companies.
And the Nigerian Ports Authority, has not been able to tell us the number of the IOCs that are complying, they should tell us how these IOCs are obeying the Stevedoring extant laws. The bulk of the matter lies with the NPA “.

Continuing, he adds, “For the Union, they have seen our reactions, if ExxonMobil, Texaco and those big multi nationals engage the services of Stevedoring contractor appointed by the NPA, the level of compliance will be getting better “.

Oil Industry watchers, however, posited that while OICs and other players in the Upstream and Midstream Sectors of the Oil Industry need to sign on to the Stevedoring Regulations, the same cannot be said of the downstream sector players who operate in peculiar circumstances where their businesses are denominated in local currency, Naira, in addition to the fact that such extra costs to be incurred could either lead to a hike in fuel prices or irrecoverable additional costs to the operators in the sector.

How FG is tackling fuel subsidy removal hardship

The harsh effects of the fuel subsidy removal on Nigerians may be remarkably ameliorated in the months ahead following the Independence Day broadcast of President Bola Tinubu where he announced far reaching measures to bring relief to the populace.

Tackling the issue of wage award, which the labour unions have requested pending the outcome of a new minimum wage being negotiated, the President announced an approval of N35,000 addition to the monthly pay of every worker for the next six months.

More crucial to confronting the hardships occasioned by the removal of fuel subsidy is transport fares, which have gone up by almost 100 per cent in many parts of the country, following the discontinuance of the fuel subsidy regime.

In the months ahead, the Federal Government said it would be deploying “cheaper, safer Compressed Natural Gas (CNG) buses across the nation”.

These buses, which are to be charged at a fraction of the current fuel prices, are expected to remarkably bring down the transportation costs, a move economic watchers describe as a masterstroke in the move by the government to rejuvenate the economy.

To ensure the success of this scheme, CNG conversion kits will soon start arriving the country, while training facilities and workshops are to be set up immediately to provide new vista of opportunities for transport operators and entrepreneurs.

It was also learnt that the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) may further be helping to ease transportation hardships through the donation of fleet of mass transit buses to the Federal Government.

When the association visited the President in Abuja 7th June, barely a week in the office, its Chairman, Dame Winifred Akpani disclosed to newsmen that DAPPMAN would be donating a fleet of mass transit buses to the Federal Government as a demonstration of the association’s support for the deregulation of the downstream sector of the oil industry, and to help cushion the harsh effects of fuel subsidy removal.

Sources close to the association said that many of those buses would be delivered to the Federal Government in the weeks ahead.

Said a source: “The DAPPMAN initiative is a commendable one that will go a long way in practical terms to ease public transport problem in Nigeria. Now that they are about to deliver, one can only hope that other associations and interest groups will borrow a leaf from the association’s gesture which is aimed to bringing down the transport costs in Nigeria”.

To further bring succour to the poor, starting from this month, the Federal Government said it would extend the social safety net through the expansion of its cash transfer programme to an additional 15 million vulnerable households.

In its June 2023 edition of the Nigerian Development Update, the World Bank disclosed that only about 19.4 per cent of Nigerians benefitted from the cash transfer scheme in the past year. With the World Bank estimating Nigeria’s population at 207 million, this meant that only about 40.21 million Nigerians benefitted from the scheme. From this month, the figure of beneficiaries is expected to rise to over 51 million mark, reaching about 25 per cent of the estimated over 200 million Nigerians.

An investment banker, Ahmed Hadi said: “This will be a good start to tackling poverty if the National Social Register comprising State Social Registers of Poor and Vulnerable Households is cleaned up and made to be a genuine list of this category of Nigerians. Given that the World Bank, in that report, indicated that about 40 percent of Nigerians lived on less than the national poverty line at the end of 2022, if the cash transfer programme of the present government can capture about 25 per cent of the vulnerable Nigerians on taking off, it will be a good way to start”.

The Tinubu administration seems to appreciate the fact that bailing the economy out of the challenges thrown up by the subsidy removal will require more than cash transfers to the vulnerable.

Real economic growth and poverty alleviation can only be achieved through production and employment generation. It is in this respect that the President, in his address to the nation, committed his government to providing investment funds for enterprises in order to boost employment and urban incomes. In the same vein, the government is increasing investment in micro, small and medium-sized enterprises.

Many Nigerians believe that, given the far reaching measures to tackle the fuel subsidy challenges as enunciated in the President’s Independence Day broadcast, labour union leaders may have good reasons to reconsider their planned indefinitely strike action, which is billed to commence on Tuesday.

Indeed, the President has extended the olive branch to the union leaders, giving indications that they earned his respect and he is ready to work with them.

He said: “I also thank members of our dynamic civil society organisations and labour unions for their dedication to Nigerian democracy. We may not always agree but I value your advice and recommendations. You are my brothers and sisters and you have my due respect”.