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 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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