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AfDB Develops Mechanism for Revenue Generation in Extractive Industry

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Extractive Industry

By Adedapo Adesanya

The African Development Bank (AfDB) has developed a three-year project in response to demands by member countries for technical assistance to monitor revenues generated from their extractive industries.

The AfDB made this known during a virtual inception workshop for the Financial Modelling Project in the Extractive Sector (FIMES) organised by the African Natural Resources Centre (ENRC) of the bank in Abidjan, Cote d’Ivoire.

According to the project report, FIMES will be implemented in eight transitional countries – Guinea, Liberia, Mali, Madagascar, Niger, Sierra Leone, South Sudan and Zimbabwe from 2020 to 2022.

The project, which is the first of its kind for the bank, is aimed at enhancing the abilities of the focal countries to improve domestic resource mobilisation from the extractive sectors.

Presenting the background information on the FIMES project, Mrs Vanessa Ushie, Division Manager, Policy Analysis, (ENRC, AfDB) said the project was aimed at the overall economic resilience of the continent.

Mrs Ushie also said that the scheme would build the capacity of government institutions to elaborate and use financial modelling of extractive projects to inform strategy setting and negotiate contracts and concessions.

She said: “20 government officials in each beneficiary member country will participate in the training, learning and knowledge activities as national beneficiaries, that is, 180 officials in the eight countries.

“Set criteria for selection of beneficiaries in the national cohort to include relevance to primary job function on extractive revenue management, knowledge of extractive sector fiscal issues’ potential multiplier effects (trainer-of-trainers approach) and IT proficiency.

“The project commits to at least 40 per cent of beneficiaries in the eight countries to be women.

“National Focal Point (NFP) main coordinating actor in each beneficiary country must be nominated by the national government to play this role.’’

She said the NFPs coordinate the national government’s engagement on the project, interface with the AfDB and other stakeholders and manage the selection of project beneficiaries.

Mrs Ushie added that the project components would focus on capacity building, peer learning and knowledge exchange, and FIMES’ Virtual Knowledge Hub.

In his contribution, Mr Yero Baldeh, Director, Transitional States Coordination Office, AfDB said the project was “competitively selected from the 2019 proposals’’.

He said the selection was done with a view to building capacity for the financing model and in turn, strengthen domestic resource mobilisation, institutional capacity and resilience in the selected transition member countries.

“The goal is to improve efficiency, sustainability and employer management practices in the artisanal and small scale mining sector in the selected transition countries.

“Through this project, the bank is strengthening the human capacity of government regulatory agencies among others to facilitate the formalisation of artisanal and small scale mining to generate employment and improve economic scales of several stakeholders, especially those along the artisanal and small scale mining value chain.’’ He added.

He reaffirmed the bank’s commitment to collaborate with member countries and its centre to proactively set up joint efforts to increase inclusiveness and accelerate development and support for policy reforms in the extractive sector.

In another contribution, Mrs Marie-Laure Akin-Olugbade, Director-General, West Africa Region, AfDB said the project would help the capacity of member governments to use financial modelling for optimising revenues from the extractives sector.

“This is a priority of the bank and is part of the strategy of the bank in putting together policies to strengthen resource mobilisation, industrialisation and the development of infrastructure,’’ she said.

Mr Akin-Olugbade noted that the Covid-19 pandemic had affected economies of member countries severely, and added that governments needed to strengthen economic resilience in order to recover.

Also, Mrs Josephine Ngure, Acting Director-General, Southern Africa Region, AfDB, said it was important for countries to have a robust and evidence-based framework to process the impact of policy decisions on extractives projects.

Mrs Ngure, who was represented by Mr Pietro Toigo, Country Manager, AfDB Office in Mozambique, added that countries should estimate the amount to which they secure fair shares of resources over the course of the project.

“This is particularly important because robust modelling gives you a sense of the impact over the whole lifespan of a project and helps policymakers not to concentrate on short term gains that may impair the ability of the state to generate revenue in the future,’’ he said.

She called for coordination and leadership across the departments in ministries that were charged with the various aspects of extractive projects.

However, Mrs Nnenna Nwabufo, Acting Director-General, East Africa Region, AfDB, lamented that most African countries exported extractive resources as raw materials with little value-added.

She noted that exportation of raw mineral resources was not beneficial to the sustainable economic development of the continent.

“We look forward to FIMES leading to increased transparency and accountability in the management of financial gains for the benefits of the countries rather than personal agenda of individuals or political interest groups,’’ she said.

She added that there was also the need to create an enabling environment that fostered linkages between projects in the extractives industry and the broader economy thereby contributing to inclusive and sustainable development.

The Director then called on the bank and it’s development partners to support member countries to build strong democratic institutions.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Dangote Petitions ICPC, Seeks Farouk Ahmed’s Prosecution

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dangote farouk ahmed

By Aduragbemi Omiyale

A petition has been filed against the chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Ahmed Farouk.

The petition was written by the president of the Dangote Group, Mr Aliko Dangote, to the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

Mr Dangote asked the agency to look into the finances of the head of the petroleum industry regulator, alleging the man is living far above his legitimate means as a public officer.

In the protest letter filed by his legal counsel, Mr Ogwu Onoja (SAN), the businessman claimed the NMDPRA chief spent over $7 million to educate his children, four in number, in Switzerland.

The petition, dated and submitted on Tuesday, December 16, 2025, and received by the office of the ICPC Chairman, also claimed that Mr Ahmed paid upfront for a six-month period, without any lawful source of income to justify such expenditure.

It also alleged that NMDPRA boss used his office to siphon and divert public funds for personal gain and private interests, actions which he claimed had fuelled public outrage and recent protests by various groups.

“That Engr Farouk Ahmed has grossly abused his office contrary to the extant provisions of the Code of Conduct for Public Officers and, in doing enmeshed himself in monumental corruption and unlawful spending of Public funds running into millions of dollars.

“That Engr Farouk Ahmed spent without evidence of lawful means of income humongous amount of money of over 7million dollars of Public funds, for the education of his four children in different schools in Switzerland for a period of six years upfront,” a part of the petition read.

“It is without doubt that the above facts in relation to abuse of office, breach of the Code of Conduct for public officers, corrupt enrichment and embezzlement are gross acts of corrupt practices for which your Commission is statutorily empowered under Section 19 of the ICPC Act to investigate and prosecute,” another part added.

“Any public officer who uses his office or position to gratify or confer any corrupt or unfair advantage upon himself or any relation or associate of the public officer or any other public officer shall be guilty of an offence and shall on conviction be liable to imprisonment for five (5) years without option of fine,” it reminded the ICPC, urging it to act decisively by investigating the allegations against Mr Ahmed and prosecuting him if found culpable, stressing that the matter is already in the public domain, as this would help uphold justice and protect the image of the administration of President Bola Tinubu.

Mr Dangote promised to provide evidence to substantiate his allegations of corrupt enrichment, abuse of office and impunity against the NMDPRA chief when required.

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Former Chief Justice of Nigeria Ibrahim Tanko Muhammad Passes Away at 71

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Ibrahim Tanko Muhammad

By Adedapo Adesanya

A former Chief Justice of Nigeria (CJN), Justice Ibrahim Tanko Muhammad, has died at the age of 71.

Justice Muhammad reportedly passed away at a hospital in Saudi Arabia, about two weeks before his 72nd birthday, which would have fallen on December 31.

His death was confirmed on Tuesday in Abuja by the Bauchi State Governor, Mr Bala Mohammed, in a condolence message issued on Tuesday by his Special Adviser on Media and Publicity, Mr Mukhtar Gidado.

Governor Mohammed noted that Justice Muhammad was a distinguished son of Bauchi State whose life and career were marked by dedication, integrity, and an unwavering commitment to the rule of law.

“The late jurist was a venerable and accomplished legal icon who rose through the ranks of the judiciary with diligence and distinction, serving as a Judge of the High Court, Justice of the Court of Appeal, Justice of the Supreme Court, and ultimately as Chief Justice of Nigeria from 2019 to 2022,” he said.

According to the governor, Justice Muhammad was widely respected for his legal acumen, discipline, and immense contributions to the growth and development of Nigeria’s judicial system.

He added that the conferment of the national honour of Grand Commander of the Order of the Niger (GCON) on the late jurist was a testament to his outstanding service to the nation.

Mr Mohammed extended heartfelt condolences to the family of the deceased, his friends, colleagues in the legal profession, and the people of Bauchi State and Nigeria as a whole.

Also, the Nigerian Association of Muslim Law Students (NAMLAS) lauded the former jurist in its condolence message.

In the statement titled NAMLAS Condolence Message on the Passing of Hon. Justice Ibrahim Tanko Muhammad, GCON, Former Chief Justice of Nigeria, the association described his death as a monumental loss to the Nigerian judiciary and the nation.

“The Nigerian Association of Muslim Law Students receives with profound sorrow the news of the passing of Justice Ibrahim Tanko Muhammad, GCON, former Chief Justice of Nigeria. His demise is a monumental loss to the Nigerian judiciary, the legal profession, the Muslim Ummah, and the nation at large.”

NAMLAS described the late jurist as a towering figure of integrity, humility and unwavering commitment to justice, noting that throughout his judicial career, he exemplified fairness, courage and fidelity to the rule of law.

The association said that as Chief Justice of Nigeria, Muhammad discharged his responsibilities with wisdom and restraint, leaving behind a legacy that would continue to guide generations of legal practitioners.

Beyond his judicial service, NAMLAS highlighted his role as a mentor to young Muslim law students across the country, describing him as a fatherly figure and a source of encouragement.

“To NAMLAS, the late Chief Justice was more than a jurist; he was a fatherly pillar and a source of encouragement to Muslim law students nationwide,” the statement said.

The association extended its condolences to the family of the deceased, the Nigerian judiciary, the Federal Government and the Muslim Ummah, while praying for the repose of his soul.

Justice Ibrahim Tanko Muhammad served as Chief Justice of Nigeria from 2019 until his retirement in 2022.

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Customs, NMDPRA Strengthen Interagency Efforts Against Fuel Diversion

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By Adedapo Adesanya

The Nigeria Customs Service (NCS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are strengthening their collaboration to combat the diversion of petroleum products intended for domestic use and to safeguard Nigeria’s energy security.

This renewed partnership was highlighted during a meeting between Comptroller General of Customs, Mr Adewale Adeniyi and the NMDPRA Executive Director of Distribution Systems, Storage and Retailing Infrastructure, Mr Ogbugo Ukoha, at Customs House, Maitama, Abuja.

During the engagement, Mr Adeniyi reaffirmed the service’s commitment to strengthening inter-agency cooperation, particularly in safeguarding Nigeria’s domestic energy security and ensuring that petroleum products meant for local consumption are not diverted to neighbouring countries.

He noted that collaboration between both agencies had already produced measurable results, especially through Operation Whirlwind, which he described as a model for intelligence sharing, joint enforcement and coordinated field operations.

He said the Nigeria Customs Service remains fully aligned with ongoing reforms in the petroleum regulatory space and will continue to provide technical input, operational feedback and border management expertise to support the implementation of new guidelines being developed by the NMDPRA.

He commended the Authority for its efforts to harmonise legacy processes with the Petroleum Industry Act, stressing that clear and efficient export point procedures are essential as Nigeria moves from being a net importer to an emerging exporter of petroleum products.

“We welcome every initiative that strengthens energy security and ensures that the gains made in reducing cross border diversion are not reversed. Our shared responsibility is to protect national interest, support legitimate trade and maintain a transparent system that stakeholders can rely on. We will continue to work closely with sister agencies to achieve these outcomes,” he stated.

In his remarks, the Executive Director, Mr Ukoha, said the NMDPRA enjoys a longstanding and productive working relationship with the Nigeria Customs Service, noting that Operation Whirlwind remained the high point of that collaboration.

He explained that both agencies deployed personnel, exchanged intelligence and jointly monitored petroleum products in border corridors, leading to a marked reduction in cross border diversion.

Ukoha said the purpose of the visit was to brief the CGC on newly developed guidelines for designating export points for petroleum products as Nigeria’s refining capacity expands.

He said the NMDPRA is engaging key institutions, including Customs, the Central Bank of Nigeria (CBN), the Federal Ministry of Industry, Trade and Investment, and the Nigerian Navy, to ensure the guidelines reflect operational realities before implementation.

The NMDPRA executive recalled several field operations and strategic engagements with the Customs leadership, including the joint launch of Operation Whirlwind in Yola, where both agencies reinforced their commitment to curbing diversion and securing the domestic supply chain.

He added that while enforcement had played a major role in reducing irregular movements of petroleum products, the removal of fuel subsidy had significantly reduced the economic incentive for cross border smuggling.

According to him, the authority will continue to work closely with the Customs Service to sustain progress and ensure that petroleum exports are properly regulated without exposing the country to energy security risks.

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