Feature/OPED
Oil is Owned by Niger Delta, not Nigeria
By Michael Owhoko, PhD
For the record and for posterity, it is imperative to state that oil found in the Niger Delta region belongs to the people of the area. It is not owned by Nigeria. God provided every habitat with natural resources, including agricultural crops for subsistence. Oil, among others, is one of the natural deposits God provided for the Niger Delta people for existence.
The region had existed before Nigeria was created, and the oil was never part of sovereignty it ceded to bring about the country. This explains why other regions in the country have control over natural resources in their domain.
Therefore, it is morally wrong for the government to single out the most valuable resource of a particular region for confiscation while leaving other regions to enjoy their resources exclusively. That the Federal Government has oppressively expropriated the oil in the Niger Delta region by transferring ownership to itself and using the law to legitimize the process, does not make it morally right.
The obnoxious Petroleum Act of 1966 which now forms part of Section 44(3) of the 1999 Constitution was used to legitimize this illegality. It confers on the Federal Government, ownership and control of all petroleum resources found in, under or upon all land or waters in the country.
However, this is at variance with practices in advanced democracies where host communities, states or regions own the resources and pay taxes and royalties to the government.
In law, whoever owns the land, owns the resources therein, and this principle is supported by the Ad Coelum Doctrine. Why single out petroleum resources in a particular region for acquisition? If the intention of the government was sincere, the law should have been extended to cover all natural resources, including food and cash crops across the country.
The Niger Delta people believe strongly in their soul, spirit and body, that the oil belongs to them but that the federal government has unjustly used its might to seize it because of their helpless polyethnic minority condition. It is most likely this could not have happened in a monolithic majority group in the country for fear of resistance.
Depriving the Niger Delta region of its oil while leaving other regions or communities to exploit natural resources found in their areas, amounts to injustice.
Zamfara and Osun States, for example, are currently enjoying the benefits of gold mining, just as other states or regions in the country are reaping from their agricultural crops.
Yet, the Niger Delta people are not only deprived of their oil resources, but they also bear the brunt of oil exploration, including the destruction of their ecosystem. Fish, crops, weather, water and other organisms in the region suffer pollution and contamination. Oil has brought misery to the people to the extent that even basic agricultural and fishery activities which provide succour for the people are no longer generative, due to environmental degradation.
When you complain, those whose only contribution to the economy is their population are quick to remind you that the region is already enjoying 13 per cent derivation proceeds, in addition to input from intervention agencies like the Niger Delta Development Commission (NDDC) and Ministry of Niger Delta Affairs, thus, does not deserve further support. This is population-induced arrogance.
When groundnut, cocoa and palm produce were Nigeria’s economic mainstay, the parts of the country where these produces were derived, namely, the North, West and East separately received 50 per cent of the revenue in line with the derivation principle as contained in the 1963 Constitution.
Why then is the government reluctant to raise the derivation revenue that should accrue to the Niger Delta region to 50 per cent when the 1999 Constitution has given a window for upward review. The 13 per cent derivation principles as contained in Section 162, Sub-section 2 of the 1999 Constitution (as amended) is intended to adequately compensate the people of the region for confiscation and damages arising from oil exploration and production.
While the region is still contending for an upward review of the 13 per cent, about 59 Northern lawmakers in the House of Representatives lately had vexatiously pushed for a bill to expunge the derivation principle under the 1999 Constitution.
Obviously, the intention of the 59 legislators is to deny the Niger Delta region of the 13 per cent derivation revenue to enable redistribution of the proceeds to shore up revenues in their region. This motive is not only thoughtless and heartless, it smacks of parliamentary hypocrisy and insincerity, capable of plunging the region into a pointless crisis that could worsen the country’s economic woes.
Are these lawmakers bereft of ideas that can shore up revenue pots in the northern states or they are just being mischievous?
Rather than channel and expend energy on how natural resources that are spread across the northern states can be explored and harnessed for the growth of the region, they are ridiculing the legislature and exposing the limit of their intellectual capacity for good governance.
It was these same northern legislators that contributed to the delay in the passage of the Petroleum Industry Bill (PIB) over their insistence that allocation to host communities from oil companies operating expenditure must be reduced from 10 to 3 per cent. They had opposed the initial 10 per cent as recommended in the original draft. The PIB was eventually passed into law on August 16, 2021.
Now, they have not only succeeded in this overbearing trajectory; they have introduced a 30 per cent frontier exploration fund in the Petroleum Industry Act (PIA) despite previous records of unsuccessful geophysical exploration efforts, including seismic surveying, by international oil companies (IOCs) in the region.
Is there any exploration magic they expect the Nigerian Petroleum Development Company (NPDC), a subsidiary of Nigerian National Petroleum Corporation (NNPC) to perform in a place where the IOCs could not find oil in commercial quantity?
It is a clear demonstration of the pursuit of sectional interests aimed at commuting the exploration fund into an advantage for the North.
In what way has the Niger Delta region offended the Nigerian state and their leaders? Why the show of zero tolerance for development and comfort in the region? Projects meant for development in the area are not only sometimes diverted and moved to other regions, even statutory privileges are occasionally aborted.
For example, former President Olusegun Obasanjo relocated the West Niger Delta LNG, Escravos to Olokola in Ogun State and changed the name to OK LNG. Protest by the Delta State House of Assembly that the LNG be returned to Escravos, Delta State, was rebuffed by the government.
Former late President Musa Yar’Adua attempted to relocate the Federal University of Petroleum Resources, Effurun to Kaduna until he was pressured to halt the plan by Niger Delta governors. Rather than establish one in Kaduna, he preferred to strip the region of the university.
The proposed Oil and Gas Industrial Park designed for fertilizer, methanol, petrochemicals, and aluminium plants earmarked for Ogidigben, Delta State, has been abandoned by the Federal Government. It is hoped there are no plans to move it outside the region.
The Petroleum Equalisation Fund (PEF) which was established to administer uniform fuel prices across the country has consistently failed to extend coverage to the riverine oil communities in Niger Delta in their network, causing fuel to sell above pump price in these areas.
The unending construction of the East-West Road stretching from Effurun, Delta State to Calabar, Cross River State has lasted over 16 years with no hope in sight on a completion date.
It is imperative to calm frayed nerves in the Niger Delta by sincerely compensating the people through measures earnestly designed to develop the area for their oil that has been commandeered by the Federal Government
The template used in developing Abuja can be adopted. Direct the IOCs and the indigenous oil companies to relocate their headquarters to Niger Delta, just as ministries, departments and agencies of government (MDAs) moved to Abuja. This will accelerate the development of the region.
Also, just as NNPC has directed oil companies to make annual budget provisions for funding of rehabilitation of schools, houses, roads, hospitals and other infrastructure destroyed by terrorists in Borno State and other parts of the North East Region, similar measures can be extended to oil communities whose properties have been impacted by seismic blasting and corrosion arising from activities of oil exploration.
This way, enduring peace can be achieved in the Niger Delta region, rather than see it as a conquered territory whose oil has been taken over as spoils of persecution.
Dr Mike Owhoko, journalist and author, is the publisher of Media Issues, an online newspaper based in Lagos.
By Tony Ogunlowo
‘Titanic’ can mean something that is very big, gigantic or enormous and it was also the name of a ship that sank on its maiden voyage.
When the Titanic sank in 1912 it sank due to a number of avoidable factors: a ship deemed unsinkable that wasn’t fitted with watertight compartments, a ‘unprofessional’ seasoned captain who was apparently bullied into going at full speed through known ice-berg strewn waters, lack of common binoculars for the deck watch and the unavailability of enough life boats for all the passengers.
This all put together, as they say, was a recipe for disaster. Red flags were ignored.
Translating this to President Tinubu’s modern-day Nigeria, the avoidable factors that can sink the country are way too obvious.
Nigerians have long enjoyed the benefits of fuel subsidy. Costly as it is to maintain it’s enabled the economy to keep running by keeping the cost of things low. It’s removal, as can be seen, has created a domino effect, as the experts predicted, resulting in the prices of even the basic commodities skyrocketing as everyone passes on the additional costs.
With inflation currently at 32.7% and still rising, things are only going to keep on getting more and more expensive. As a result, the new minimum wage of N70,000 will have less purchasing power than the previous 2021 minimum wage of N30,000. If fuel subsidy removal was meant to boost the economy it has done the opposite and will stagnate any efforts to kickstart it.
The governments inability to control corruption or severely punish corrupt officials which is robbing the country’s coffers of billions and billions of Naira every year is a stumbling block for development.
If a corrupt government official who built 750 houses with stolen funds or an ex-governor accused of misappropriating N80 billion are allowed to walk around freely, supposedly on bail, without fear of eventual conviction it questions the message the government is sending out to future looters: if the culprits were in Russia or China the outcome will be totally different.
Even though an austerity economic policy may seem harsh like it was designed to rob Peter to pay Paul, it should be short, sharp hardship with green pastures in the foreseeable future – not ever! A good start will be to cut down on the number of foreign loans being obtained every year as their repayment can take a huge chunk out of the country’s annual income.
The new tax laws are long overdue and it should include that VAT earned in a state stays in that state: so, if your state doesn’t generate any VAT (- such as from the sale of alcohol products) you don’t get to share in what other states have collected.
Insecurity in the country is not something that started yesterday. Previous governments have blood on their hands for not nipping these insurrections in the bud before they grew to become monstrosities. You don’t pat yourself on the back, like the Nigerian Army likes to do believing you have the threat ‘under control’ – you eliminate the threat completely using what ever means necessary.
Unless the order (given by ‘Somebody’) is not to destroy them completely and to quote the late Sani Abacha,”…any insurgency that lasts more than 24 hours, a government official has a hand in it..”, no wonder Boko Haram continues to flourish and bandits like Turji Bello continue to taut the government. When the armed robber Lawrence Anini did something similar in 1986 he was fished out within months, tried and executed.
As I’ve written before the Nigerian Police Force is long past its sell by date and considering the ever growing population of Nigeria with its associated acts of anti-social behaviour its time to seriously consider devolving the NPF into state-run outfits. The growing popularity of state-run security outfits, such as Amotekun, proves this is feasible and effective.
Considering the fact the country is going through severe economic hardship the President, himself, should curb frivolous spending where possible: no more new Presidential yachts or planes ( – that includes the new one for the VP), a cap on ridiculous-no-real-job SA and SSA appointments and most important of all a cap on ALL politicians salaries and perks (which is to say if politicians are patriotic enough they’ll agree to a pay cut, forgo some of their benefits and pay for their own jaunts abroad).
Implementing the Steve Oronsaye Report which recommends merging and closing of ministries etc that has been passed over by every President since President Goodluck commissioned it in 2011 will cut government operating costs even further. This should not just be at Presidential level but extended to all the states: this will not just streamline the bloated and largely inefficient civil service but will also weed out ghost workers and white elephant project.
The ‘japa’ movement which the government is trying to discourage should be allowed to continue. It’s morally wrong for a government that can’t provide suitable employment for its citizens to try and prevent them from seeking opportunities abroad : ‘japa’ is not just limited to Nigerians, it’s a worldwide phenomenon.
People, British, American, Filipinos, are migrating worldwide to where ever there are opportunities for them to prosper. That’s the way the world works now: nobody is going to stay in a ‘sh*t-hole’ country if there are no opportunities for them to grow. Scr3w patriotism! It’s every man for himself! So, if a country can’t provide adequate employment opportunities people will pack their bags and ‘japa’! And if you restrict them from leaving the country what are they going to do? Get up to mischief – 419, cultism, kidnapping!
These same people send money back to their home countries all the time: Nigerians in diaspora in 2023 alone sent home more than $19.5 Billion Dollars. This is a huge injection of foreign currency for a country that desperately needs it.
So, just like the Titanic the warning signs are there and the inevitable that will happen should they be ignored. The question is which way is President Tinubu going to go. This is what I call the ‘Titanic Wahala’, ignore the obvious and the proverbial will hit the fan, sooner or later.
Feature/OPED
From Rental Shifts to AI Innovations: The Evolving Landscape of South Africa’s Property Sector
By Waldo Marcus
The past year has been challenging for property investors, with a sluggish economy slowing residential rental escalations in most regions in 2024.
Rental escalations are likely to be applied cautiously in 2025 to avoid vacancies, particularly given the potential for a decline in demand for rental properties as tenants, motivated by lower interest rates, migrate to property owners.
Lower rental returns will see investors looking at alternative ways to generate improved income from their investments. Short-term holiday rentals have impacted rental prices in tourist destinations, with higher rental income achieved in peak holiday times, pricing out consumers looking for long-term rental property. This trend, especially in the Western Cape, has some lobbyists calling for stricter regulations to protect consumers from inflated rental prices and a lack of affordable rental supply. SA Tourism has requested better transparency from platform providers. The risk for bond providers is that investors are financing these properties based on current tourism trends and rental income, which relies heavily on the success of platforms like Airbnb.
Consumption changes are driving commercial property growth
The commercial property sector grew in 2024 and this positive trajectory is expected to continue in 2025 as interest rates are lowered. Property developers are focusing on convenient neighbourhood retail and merging with online retailer needs. In urban areas, convenience and easy access are prioritised, while larger developments are succeeding in rural, underserved areas.
Industrial properties, particularly logistics and warehousing in the Western Cape, KwaZulu-Natal and Gauteng, continue to outperform other commercial sectors. Secure and well-serviced industrial parks are in demand and expected to grow. However, traditional industrial areas around Johannesburg and the Pretoria CBD face a value collapse due to security risks and inadequate infrastructure maintenance to service the nodes.
ESG is likely to become a high-value agenda item for commercial property investors in 2025 to ensure compliance and reduce operating costs. The latest SAPOA Operating Cost Report reveals that 29% of operating expenses go to electricity costs and 23% to property taxes.
The risk of leakages
Water shortages are the next big challenge, posing a significant risk to property owners. Government and municipalities must act before it becomes another catastrophic reality like Eskom. Addressing water shortages is a dual challenge requiring both the building of and better maintenance of water infrastructure, including sewage treatment plants, and longer-term, the creation of additional reservoirs to keep up with population growth and mitigate climate change risks.
Leakages extend beyond water. Revenue leakages include missed recoveries, escalations, lease changes, and renewal options, to name a few. Increased regulatory requirements have resulted in more time being spent on compliance, and this is not expected to ease. Regulatory and compliance changes and demands on property-related companies remove valuable focus and resources from internal due diligence and processes to prevent revenue and recovery leakages. We predict more organisations will invest in technology resources to identify revenue leakages and focus on tools to drive operating costs down.
The Revolution of AI in the Property Sector
Technology – particularly AI – has become indispensable to the property sector, from AI-powered marketing and presentation tools to automated management systems. While these advancements streamline operations and enhance decision-making, they also introduce new challenges, particularly in data security and risk management.
As we move into 2025, property companies must carefully consider the appropriate balance between AI and human expertise. By striking this balance and implementing robust data protection measures, organisations can harness the power of AI while preserving their brand authenticity and competitive edge.
The Necessity of diversity in Decision-Making
Property investment is a complex and often high-stakes endeavour. As a fixed asset with emotional and financial implications, property valuations and transactions can be challenging. Recent shifts in market perception have further complicated the landscape, with divergent opinions on property’s potential as a wealth generator or alternately, a financial drain.
To navigate this complex market, accurate and reliable data is essential. Mitigating bias and leveraging diverse perspectives allows investors to make more informed decisions. Access to neutral, data-driven insights from respected sources can help uncover hidden opportunities and avoid costly mistakes.
As the property market evolves, tools and information available to investors must also adapt. Companies of all sizes are increasingly recognizing the importance of accurate, accessible, and representative data. They are investing in reliable external data sources to gain a competitive edge and make more strategic decisions.
The lingering effects of high interest rates
Persistently high interest rates raised the cost of credit and placed additional pressure on already strained consumers and businesses. They also dissuaded residential property acquisitions, leading to fewer home loan applications and a decline in the transfer of both bonded and unbonded properties in 2024. Lightstone data reveals that first-time buyer volumes slumped by 20% in 2023.
While welcome, the first two interest rate cuts will take time to filter through to residential property acquisitions. Encouragingly, demand from first-time home buyers appears to be recovering slowly with ooba Home Loans noting a rise in applications to 49.6% in September 2024, the highest reading since November 2022. We expect residential property sales to accelerate in 2025 as interest rate relief starts to filter through, albeit at a slower pace in dysfunctional municipalities.
Individual investors are increasingly choosing to maintain smaller portfolios and using tax-efficient structures such as companies and trusts. TPN anticipates that this trend will persist into 2025. Demand for buy-to-let properties has risen since late 2021, particularly in the Western Cape, followed by the Eastern Cape and Tshwane. Although this trend is expected to continue, it may slow down around mid-2025 as demand shifts from rental properties to ownership.
Municipal performance linked to property value creation
Service delivery quality, infrastructure and the maintenance of that infrastructure impact the value of property types. Well-run municipalities will continue to attract investment. Since 2020, semigration has highlighted the successes and failures of provinces and cities, resulting in decreased revenue collections for some of South Africa’s largest municipalities.
Safety and security continue to influence where South Africans choose to live and work, impacting both the residential and commercial property landscape. Mixed-use developments, secure estates, sectional title properties, and commercial parks offering efficient ways to provide enhanced security, service delivery, productive infrastructure, and maintenance spending will continue to be in demand.
An important consideration that will become increasingly significant in 2025 is the quality and accessibility of the lifestyle available in certain areas. Well-maintained and safe parks, public spaces, beaches, dams, lakes, and other recreational facilities will make these areas more appealing to tenants, businesses, and investors.
The outlook for property KPIs
Residential vacancies are expected to increase in the latter half of 2025 due to lower interest rates and improved consumer confidence. Office and retail vacancies are likely to remain stable in the first half of 2025 but will decrease should business confidence improve and if GDP targets are met. Industrial property vacancies will remain low as demand remains strong, especially in the Western Cape and infrastructure development nodes in Gauteng and KwaZulu-Natal.
Rental escalations for commercial and residential properties will improve in the first half of 2025. Investors will be keen to enhance their returns after a period of sluggish economic performance with slightly healthier consumers offering the opportunity to grow rental income strategically.
The good standing of both commercial and residential tenants is expected to continue to improve as landlords use stricter vetting and collection strategies.
Rental property gross yields will, on average, stay the same as property values are expected to increase in line with rental income. The challenge for investors will be to keep operating costs down to maintain or improve net yields.
A favourable outlook for residential housing market
The outlook for the residential housing market is more favourable for 2025 than it has been for the past few years with the property market offering good value overall. The interest rate will likely be cut by a further 50bps by the third quarter of 2025, offering further relief for household finances and renewed activity at both the lower and upper ends of the market. More investments could see an increase in rental property supply and even a potential decline in rental demand as more consumers shift from renting to buying. We expect continued demand for well-managed rental properties.
Waldo Marcus is a Director at TPN from MRI Software
Ever wondered where to find trendy fashion, cutting-edge tech, or stylish home decor at unbeatable prices? Look no further than Temu.
What is Temu?
Temu, an online marketplace sensation, has taken the world by storm with its vast array of products, competitive prices, and user-friendly platform.
Since its 2022 launch, it has quickly become a global sensation, boasting hundreds of millions of downloads and catering to over 80 markets. Now, Nigerian shoppers can experience the Temu magic firsthand.
This guide will walk you through the Temu shopping experience, ensuring a smooth journey from product discovery to delivery.
Step 1: CREATE AN ACCOUNT TO UNLOCK SMART SHOPPING
The registration process
Joining Temu is super easy! Whether you prefer the traditional approach or the convenience of social media, Temu has you covered. For the classic signup, simply visit temu.com or download the mobile app, enter your email or phone number, create a strong password, and confirm your details. It’s as easy as that!
For social media savvy, link your Google, Apple, or Facebook account and skip the hassle of creating a new login. With Temu’s streamlined process, you can spend less time logging in and more time exploring the incredible deals awaiting you.
Mobile app vs. desktop: Which platform offers the best shopping experience?
Both the mobile app and desktop website offer a seamless shopping experience. However, for a truly dynamic and interactive shopping journey, we recommend the mobile app. You will enjoy real-time price alerts, exclusive mobile deals, and easy order tracking.
For a more deliberate shopping experience, the desktop website is the perfect choice. With larger screens and easy-to-use comparison features, you can take your time and make informed decisions.
Step 2: BROWSING AND SHOPPING LIKE A PRO
Navigating Temu’s vast selection
Temu offers a vast selection of over 200 product categories, from fashion and tech to home goods and beauty.
To get started, simply use the search bar function to find specific items or explore categories, and refine your search with filters for price, colour, size, and more. Sort items by relevance, price, or newest arrivals to find the perfect products.
Temu’s ranking system highlights popular and trusted products, often based on customer reviews and sales trends. To make informed choices, compare prices, features, and reviews before purchasing.
Best-selling products
Temu’s best-selling products are constantly updated based on real-time sales data.
Other metrics beyond rankings
Temu goes beyond traditional product rankings, focusing on the performance and quality of its providers. By considering factors like historic ratings, repurchase records, follower numbers, and new product releases, consumers can make informed decisions. This approach not only empowers buyers but also incentivises providers to deliver high-quality, diverse products and build strong customer relationships.
Providers can earn recognition directly on their product pages by ranking highly in categories like Top Sales, Top Rated, Top Repurchased, Top Followed, or New Arrival. These rankings are based on the provider’s performance over the past 30 days and are updated daily to ensure the most current information is displayed to consumers.
Finding your perfect fit
Temu provides detailed size guides to help shoppers find the perfect fit, particularly for clothing and accessories. These guides often include measurements, comparison charts, and sometimes even virtual fitting tools to make your online shopping experience seamless.
Save more, shop smart
Simplify your shopping and maximise your savings with Temu. All discounts are displayed directly on product pages. For the best deals, explore the platform’s Lightning Deals. To ensure satisfaction, pay attention to details, read descriptions, verify measurements, understand features, and consult seller ratings and reviews.
Step 3: PLACING AN ORDER
Shopping safely and securely
Temu offers a variety of payment methods, including popular credit cards and digital wallets like Visa, Mastercard, American Express, Maestro, Discover, JCB and Diners Club. To prioritise your security, the platform employs advanced security measures, adhering to strict industry standards to protect your information.
Step 4: FAST AND RELIABLE DELIVERY
Hassle-free delivery, every time
Temu prioritises customer satisfaction by providing real-time order tracking and reliable shipping options, including free standard shipping and express delivery. The platform guarantees on-time delivery and offers full refunds for damaged or undelivered orders.
At the moment, Temu is in partnership with local logistics firms, such as Flyt Express, SKYNET, and Speedaf to make delivery to Nigerian shoppers on time.
Step 5: AFTER-SALES SERVICE – BEYOND THE PURCHASE
Returns and exchanges made easy
Temu provides a seamless return process with its Purchase Protection Program. If you’re unsatisfied with a purchase, log into your account, select the item, provide a reason, and submit a return request. Temu will provide a prepaid shipping label.
You have a 90-day return window for most items. Once processed, you can choose a refund to Temu credit or original payment. For exchanges, return the item and place a new order. Temu also offers refund policies for no updates and no deliveries. Check Temu’s specific return policy for the latest information.
Beyond shopping: A greener future
Temu is committed to sustainability. By shopping on Temu, you contribute to a greener future. The platform’s Tree Planting Program and combined shipping initiatives help reduce environmental impact.
Smart shopping simplified
Temu has transformed online shopping, offering a wide range of affordable products and a user-friendly experience.
Follow these simple steps to easily navigate the platform and discover your next favourite find. If you need assistance, Temu’s customer support team is available 24/7.
So, shop with confidence on Temu!
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