Feature/OPED
CEPEJ and the Reality of Niger Delta Underdevelopment Crisis
By Jerome-Mario Utomi
Talking about the Niger Delta region of Nigeria, it is true that today there exists in the Petroleum Industry Act (PIA) which made some far-reaching provisions for the host community’s development such as its demand that any oil prospecting licence or mining lease or an operating company on behalf of joint venture partners (the settlor) is required to contribute 3% of its actual operating expenditure in the immediately preceding calendar year to the host communities development trust fund. This is in addition to the existing contribution of 3% to the Niger Delta Development Commission (NDDC).
It is also true that recently, Professor Yemi Osinbajo, the Vice President of Nigeria, at a function in Lagos noted that the present administration was determined to see through to the completion of all the critical projects in the region.
Once more, we are equally witnesses to the fact that the Minister of Environment, Dr Mohammad Abubakar, after a meeting in Port Harcourt, said his ministry was in talks with key stakeholders in the Niger Delta region on devising a blueprint for alternative ways to preserve, conserve and restore mangrove in the region.
Abubakar, who said the destruction of mangroves was catastrophic to the economy of the nation, noted that the resolution of the meeting in Port Harcourt was to focus on starting with short term goals of seeking alternative means of making people stay away from mangrove destruction.
However, if a serious statistical study is carried out about the area, it may be ‘amazing’ how the Niger Delta region has, and despite all these moves remained a backward and degraded, coastal region occasioned by crude oil exploration, exploitation and production with no better chance of development as the government is not ready to learn from its past mistakes which bother on the adoption of a non-participatory approach to development that strips the people of the region their sense of ownership over their own issues.
And as a consequence, cast a long dark shadow on efforts to improve the wellbeing and economic development of the region’s individuals, peoples, and communities while resulting in a state where the region’s communal right to a clean environment and access to clean water supplies was brazenly violated. And fierce war raged in the region between ethnic and social forces over the ownership and control of oil resources in the Niger Delta.
Bringing this ugly account to the fore is a recently well-timed statement/alarm raised by the Centre for Peace and Environmental Justice (CEPEJ), Comrade Mulade Sheriff, calling on the Federal Government of Nigeria not to hands-off Niger Delta region until it completes the environmental remediation and socio-economic rejuvenation of the zone devastated by long periods of oil spill neglect, crude oil exploration/exploitation, deprivation and marginalization.
The group spoke recently in Warri, Delta State against the backdrop of speculations, claims and counterclaims in some quarters regarding the advent of the PIA that the federal government will abandon its responsibility to remediate the environment.
It was argued that the PIA and allocation of 3% to host communities do not mean the federal government should shy aware of its primary responsibility of providing basic amenities for and care for her citizens, especially when the government is the main beneficiary of oil production proceeds from the region and the cause of degradation of the Niger Delta environment.
The environmental rights group, while speaking with newsmen in Warri, asserted that it is the responsibility of the Nigeria government and oil companies to remediate the degraded environment, pay adequate compensation to affected host communities and rejuvenate the lost socio-economic wellbeing of Niger Deltans for the impoverished state caused by crude oil exploration activities engineered by the federal government.
CEPEJ drew the attention of the federal government and other relevant agencies to the fact that the region has long been degraded and the environment devastated before the emergence of PIA, hence, it cannot and should not hide under the Act to further marginalize the region, rather, it should be directly involved in the remediation and socio-economic rejuvenation of the region.
Remediation and rejuvenation of the socio-economic life of the people in the Niger Delta region of the country is a responsibility that is extremely important which successive administrations have failed to address and spent far too long a time not only to attend to but also to accomplish.
In explaining the importance of the PIA to host communities, CEPEJ said “the Law or Act cannot take retrospective effect on the people it’s meant to benefit and Nigerians should not lose sight of the beneficial reality of the Act.
“Before the federal government can hands off the Niger Delta, it must complete its environmental remediation as well as socioeconomic rejuvenation of the environment which is what the federal government owns the people living in the region.
“It will be unethical for the federal government to hands off at a time when the world is in agreement in terms of citizen and communal right of the people, and that it is the communal rights of the Niger Delta people to have a clean environment and access to clean water supplies which are being violated by Nigeria government and oil-producing companies operating in the region.”
It also asserts that, by the admission of oil companies to the region, ‘the oil industries have abandoned thousands of polluted sites in the region which need to be identified and studied in detail, He, therefore, called on environmental experts to go the extra mile to identify these spots, study them and make cases for the affected communities.
While complaining about the negative effect of oil operations in the Niger Delta, CEPEJ said due to degradation of the environment, aquatic organism and water supply sources are being adversely affected including the health and wellbeing of the people which has resulted in high mortality.
He also said that the present environmental state caused by oil companies and their operational activities need to be recovered while affected communities are adequately compensated for their losses.
Referencing what is obtainable in other oil-producing nations around the world, the rights group said, “We expect the federal government to apply what is obtainable in countries such as the Netherlands where the Dutch government requires all operators to restore their areas of operation back to how nature intended, which means all infrastructures used for operations during active production will be removed at the end of production and proper maintenance of the environment need to be carried out.”
“He said this method of operation is referred to “abandonment liability” which the operating company need to carry out at the end of active operation, and that is what he expects the Nigeria government to emulate.
On the management of the 3% to host communities, the group submitted that the 13 per cent oil derivation fund and the PIA fund are meant to address the environmental, ecological and infrastructural development issues of oil communities and “we expect that should be done to better the lives of people living in oil and gas host communities.”
He further insisted that the 3 per cent PIA fund should be managed by the Host Community Trust Fund as stipulated by the PIA.
It concluded that leaving the funds under the hands of Ministers or State Governors to control or even nominate candidates to manage the fund for host communities might lead to its being mismanaged the same way the 13% derivation fund allocated to oil and gas producing states for the development of oil and gas host communities was misappropriated.
To avoid a repeat of such stories, the host communities should nominate credible individuals to manage the Host Community Trust Fund as stipulated in the PIA for speedy infrastructural development and environmentally friendly condition of the oil-rich region of Nigeria.
Indeed, CEPEJ, in my view, may not be wrong.
Jerome-Mario Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He could be reached via [email protected]/08032725374
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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