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Economy

OML 29 Spill: Intervene in Nembe Community, Group Begs FG

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Nembe community

By Adedapo Adesanya

The Ijaw Diaspora Congress (IDC) is seeking the intervention of the Federal Ministry of Humanitarian Affairs and Disaster Management in the recent oil spill at Oil Mining Lease (OML) 29 at Nembe, Bayelsa.

The diaspora group with headquarters in Newark, New Jersey, US, requested the intervention in a letter signed by Prof. Monday Gold, President; Dr Antonia Garner, Vice President, Europe and Director of Humanitarian and Disaster Affairs, IDC noted that the leak which was first noticed on November 1 continued unabated until December 8, 2021.

OML 29 is operated by Aiteo Eastern Exploration and Production Company in the Nembe community, with 51 per cent of the equity belonging to the federal government.

The IDC said the spill has far-reaching ecological challenges on the economic health and wellbeing of the impacted areas and the people, pointing out that it spanned from Nembe and its connecting creeks down to the Atlantic Ocean.

The group said while the Bayelsa State government and the community attributed the spill to equipment failure, it was awaiting the official position of the National Oil Spill Detection and Response Agency (NOSDRA).

The agency is saddled with the mandate to detect, monitor, and manage oil spills in Nigeria.

“We await an evidence-based investigation to ascertain the cause of the spill and its volume.

“The Ijaw Diaspora Council’s Technical Advisor, Rick Steiner, estimates that with 1-2 cubic feet of discharge per second, the blowout would have released a total of 532,000 barrels to 1,064,000 barrels of oil equivalent in the 38 days that the leak lasted,” it stated.

The group demanded that the failed wellhead be preserved for independent engineering forensic analysis to determine the cause of the failure, in accordance with the advice given by its Technical Advisor, Prof. Rick Steiner.

The IDC insisted that the preservation of the wellhead as evidence should be in conformity with criminal evidentiary procedures in order to prevent any further alteration or adulteration.

The group also sought an engineering analysis of the cause of equipment failure.

The IDC suggested that the investigation be carried out by an independent organisation such as the Bureau of Safety and Environmental Enforcement (BSEE) or Det Norsk Veritas (DNV) in Norway.

The group is also seeking an update on the measures taken so far, in terms of humanitarian aid by the Federal Government to the impacted people and areas.

IDC also urged the Federal Government to declare the spillage a humanitarian disaster in Ijawland and act accordingly.

According to the group, Aiteo’s slow response time exacerbated the“ catastrophic“ damage that the failed oil and gas wellhead caused to the physical, economic, psychological, and general welfare of the affected communities.

“The lethargic response pace forced the victims into an immediate humanitarian crisis of epic proportions.

“Failure to treat this as a national emergency with global repercussions would be akin to the commission of crimes against humanity under the Human Rights Act and other applicable laws and treaties,” the group said.

The IDC called for the immediate provision of alternative sources of income, necessitated by the loss of sources of livelihood in the over 40 communities.

“The immediate provision of alternative sources of income should span the projected amount of time, potentially decades, that it would take for all the affected communities to economically recover from the extremely calamitous disaster that has befallen Nigeria,” the group said.

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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Economy

Popoola Urges Investors to Diversify Portfolios to Reduce Risks as Stock Prices Rise

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Nigeria's stock exchange

By Aduragbemi Omiyale

Investors in the stock market have been advised to embrace the strategy of diversification of portfolios in order to get a better return on investment (RoI).

The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, while reacting to the current uptrend rally in the equity market, stressed that diversification of portfolios would go a long way to reduce risks, explaining the need for investors to re-balance their stock basket.

So far this year, the local bourse has been buoyant with the NGX-All Share Index (NGX-ASI) Year-to-Date (YTD) returned at 26.62 per cent as of Friday, May 27, 2022, and is currently over the psychological 54,000-level for the first time since the 2008 crash, as opposed to the broad-based bearish performance experienced in other markets.

Mr Popoola stated that in spite of the current appreciation in prices of equities in the country, opportunities still exist for investors in other asset classes.

He said as a multi-asset Exchange, NGX has various products for every investor regardless of what their investment goals, risk appetite or return expectations might be, listing the products like equities, fixed income, Exchange Traded Funds and Derivatives.

According to him, there are opportunities in every segment of the market, emphasising that it is important for investors to do the analysis, and understand where those opportunities are, as there are opportunities, not only on the equity side but across the various assets classes.

He, however, said that the Nigerian capital market and the business of the stock exchange would always be impacted by dynamic economic trends and investor demands.

Explaining further, he said achieving success through growth that creates value will increase the Exchange’s ability to operate efficiently and profitably in the transient advantage economy that has unfolded in Nigeria and around the world.

“While there has been no respite in the macroeconomy and operating environment due to lingering oil price and foreign exchange pressures, our long-term outlook for the Exchange remains positive as listed companies continue to show resilience and our members have been repositioned to deliver superior value to investors,” he said.

Mr Popoola noted that NGX would continue to find more products that a lot of Nigerians and the youth demography are attracted to, and introduce to the market.

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Economy

Nigerian Exchange Index Skyrockets to 54,085.30 points After 1.76% Rise

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Nigerian Exchange

By Dipo Olowookere

It was another fantastic day at the Nigerian Exchange (NGX) as the recent bullish run witnessed lately continued after a short disruption caused by the raising of the interest rate to 13.0 per cent from 11.5 per cent by the Central Bank of Nigeria (CBN) on Tuesday.

Yesterday, the stock market appreciated further by 1.76 per cent on the back of renewed interest in local equities buoyed by the release of the much-awaited financial statements of FBN Holdings Plc for the 2021 fiscal year.

At the exchange on Friday, the All Share Index (ASI) skyrocketed by 933.98 points to 54,085.30 points from 53,151.32 points, while the market capitalisation jumped by N504 billion to N29.158 trillion from the preceding day’s N28.654 trillion.

The gains were influenced by sustained buying pressure in shares in the banking, insurance, energy and industrial goods sectors, which appreciated by 0.48 per cent, 0.32 per cent, 0.24 per cent and 0.01 per cent respectively, while the consumer goods counter depreciated by 2.41 per cent due to sell-offs in Nigerian Breweries, UAC Nigeria and others.

During the session, investors traded 208.1 million equities valued at N5.5 billion in 4,898 deals compared with the 266.2 million equities worth N5.1 billion transacted in 5,501 deals a day earlier, representing a decline in the trading volume and number of deals by 21.83 per cent and 10.96 per cent respectively and an increase in the trading value by 7.92 per cent.

Cutix was the highest price gainer yesterday as its value went up by 9.96 per cent to N2.87, Airtel Africa appreciated by 9.89 per cent to N1,767.00, Wema Bank gained 8.63 per cent to finish at N3.65, Ardova improved by 7.09 per cent to N15.10, while FBN Holdings increased its value by 6.98 per cent to N11.50.

On the other side of the coin, the heaviest price loser was Nigerian Breweries as it deflated by 10.00 per cent to N69.30, UAC Nigeria reduced by 9.87 per cent to N10.50, University Press declined by 9.52 per cent to N2.85, Royal Exchange went down by 9.26 per cent to 98 kobo, while Linkage Assurance depleted by 6.67 per cent to 56 kobo.

Business Post reports that the market breadth was at equilibrium on Friday as there were 19 appreciating stocks and 19 depreciating stocks.

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Economy

Naira Trades N617/$1, N419.50/$1 at P2P, I&E FX Windows

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strong dollar demand Naira

By Adedapo Adesanya

The Naira had a bad day on Friday as it depreciated in the Peer-to-Peer (P2P) segment of the foreign exchange market against the Dollar by 0.16 per cent or N1 to N617/$1 in contrast to the previous day’s N616/$1.

Also, at the Investors and Exporters (I&E) window of the forex market, the Naira depreciated by 0.15 per cent or 62 kobo against the American currency to N419.50/$1 compared with the N418.88/$1 it was transacted on Thursday.

According to data obtained from FMDQ Securities Exchange, the domestic currency suffered this loss amid a reduction in the forex turnover for the trading session.

FX trades worth $107.84 million were carried out yesterday compared with the $157.46 million executed a day earlier, representing a decline of $49.62 million or 31.5 per cent.

At the interbank segment of the market, the local currency closed weaker against the Pound Sterling as it depleted by N1.01 to trade at N524.57/£1 compared to the previously traded rate of N523.56/£1 and against the Euro, the domestic currency fell by 19 kobo to close at 445.26/€1 in contrast to N445.07/€1.

In the cryptocurrency market, the bulls took control as seven of the 10 cryptos tracked by Business Post pointed north, with Dogecoin (DOGE) recording the highest rise of 6.9 per cent to trade at $0.0827.

Binance Coin (BNB) recorded a 2.4 per cent increase to trade at $302.89, Solana (SOL) appreciated by 2.1 per cent to $41.99, Ethereum (ETH) gained 0.7 per cent to sell at $1,770.73, Cardano (ADA) added 0.4 per cent to its value to finish at $0.4625, Litecoin (LTC) improved its price by 0.3 per cent to trade at $62.66, while Bitcoin (BTC) appreciated by 0.1 per cent to settle at $30,000.

On the flip side, the highest loser was the rebranded TerraClassicUSD (USTC), which continued its windfall with a 6.4 per cent loss to trade at $0.0397, Ripple (XRP) recorded a 2.4 per cent slide to quote at $0.3867, while the US Dollar Tether (USDT) moved downwards by 0.01 per cent to sell for $0.998.

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