Feature/OPED
The 10th NASS, PIA as a First Line of Conflict
By Jerome-Mario Chijioke Utomi
Even when it is obvious that, as humans, it is always convenient to forget and uncomfortable to remember, one invaluable asset the outgone 9th National Assembly left behind that will be too difficult to forget by Nigerians, particularly the people of the Niger Delta region, South-South geopolitical zone of the country is the 2021 passage of the Petroleum Industry Bill, after over 17 years of back and forth movement, and its subsequent signing to law by former President Muhammadu Buhari.
Aside from being the most audacious attempts to overhaul the petroleum sector in Nigeria, stakeholders believed that If properly and vigorously implemented, the PIA could represent the gold standard of natural resource management, with clear and separate roles for the subsectors of the industry; the existence of a commercially-oriented and profit-driven national petroleum company; the codification of transparency, good governance, and accountability in the administration of the petroleum resources of Nigeria; the economic and social development of host communities; environmental remediation; and a business environment conducive for oil and gas operations to thrive in the country.
Further amplifying the celebration of PIA advent is the awareness that the people of the Niger Delta region of Nigeria have been cheated for a protracted period in ways that rendered restitution a costly process; inferior education, poor housing, unemployment, poor healthcare facilities and very recently recession. These are the bitter tablets of oppression the people have taken for the period under review. Now, this neglect has accumulated interest, and its cost to this nation has become substantial in financial and human terms.
However, like every invention, which usually comes with its opportunities and challenges, even so, has PIA which provided two regulatory agencies, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), among other responsibilities, provide technical and commercial regulation of petroleum operations in their respective sectors, contrary to expectations become the first and fundamental line of conflict between the operators and the host communities-leading to a renewed call by host communities on the Federal Government to give them full control of their resources and then they can developmentally change the lives of their people.
Beginning with the frosty relationship between the operators and host communities, among many examples, the recent ultimatum/threat by the oil-rich community of Tsekelewu (Polobubo) in Warri North Local Government Area of Delta State to shut down ongoing exploration activities of Conoil Producing Limited, if the company failed to reach a definite agreement with the community on the implementation of Chapter 3 of the Petroleum Industry Act (PIA) for the Tsekelewu bloc of communities, supports this assertion.
Entitled ‘Fourteen (14) Days Ultimatum to Implement Chapter 3 of 2021 Petroleum Industry Act (PIA) in Tsekelewu (Polobubo) Host Community and Bloc of Communities by Conoil Producing Limited at OML 103’, the petition/ultimatum, Dated December 30, 2022, signed by the President-General of the Tsekelewu (Polobubo) Development Association, Dr Bright Abulu and the spokesman of the association, Mr Christmas Ukagha and addressed to the Managing Director/Chief Executive Officer of Conoil Producing Limited, among other things, lamented that they adopted the option due to the seemingly snobbish attitude of the management of Conoil Producing as the company’s management had refused to honour letters asking for a meeting with the TCDA on the issue of the PIA implementation.
Essentially, while the people of the Tsekelewu (Polobubo) Host Community continue to wait for what becomes the outcome of their ultimatum, there is, indeed, greater evidence that points to the fact that the underlying premise behind PIA enactment has been defeated. There is equal reason for concern that what is currently happening between Oil Companies and their host communities may no longer be the first half of a reoccurring circle but, rather, the beginning of something negatively new and different.
According to a commentator, the challenge of ambiguity, interpretation and imprecision in the law is so ‘profound’. For example, it is unclear whether host community development trust obligations are additional to existing community levies (such as the Niger Delta development levy) or will be an aggregation of those levies. Similarly, the law is silent on the definition of “frontier basin” and host community, instead deferring to the NUPRC on the definition of the frontier basin and to settlors or license holders on the definition of “host community.” These definitions are not neutral to revenue; they have revenue implications. This lack of clarity creates uncertainty and even possible disputes, especially if relevant parties define them differently.
On Capacity building, the referenced commenter captures it this way; this law is complex and complicated. While capacity in the oil and gas sector has been built over the years, the new legal provisions and fiscal framework will need new capacities to succeed. This challenge will be particularly acute in the new regulatory institutions; in the understanding, interpretation, and application of the law; and in the management of the funds, including the Host Community Development Trust Funds (HCDTF).
In my view, another major area of ‘interest ‘’ that the 10th NASS must watch as it calls for urgent amendment is the fiscal framework of PIA which highlights penalties for gas flaring arising from midstream operations. It stated that revenues from these penalties would accrue to the Midstream and Downstream Infrastructure Fund and would be used to finance midstream and downstream infrastructure investment.
Aside from the fact that the law was more interested in income generation for the government through payment of fines/penalties by the operators and has no protection for the host communities, who are the real victims of pollution arising from gas flaring, another major flaw inherent in the provision is that a tour by boat of creeks and coastal communities of Warri South West and Warri North Local Government Areas of Delta state will amply reveal that the much-anticipated end in sight of gas flaring is actually not in sight. In the same manner, a journey by road from Warri via Eku-Abraka to Agbor, and another road trip from Warri through Ughelli down to Ogwuashi Ukwu in Aniocha Local Government of the state, shows an environment where people cannot properly breathe as it is littered by gas flaring points.
In simple language, the operators appear more comfortable with the payment of fines/penalties arising from flared gases than taking practical steps to end the ‘practice’.
To a large extent, the above confirms as true the recently published report, which among other concerns, noted that Nigeria has about 139 gas flare locations spread across the Niger Delta both in onshore and offshore oil fields where gas which constitutes about 11 per cent of the total gas produced are flared. Apart from the health implication of flared gases on humanity, their adverse impact on the nation’s economy is equally weighty. For instance, a parallel report published a while ago underlined that about 888 million standard cubic feet of gas were flared daily in 2017.
The flared gas, it added, was sufficient to light up Africa, or sub-Saharan Africa, generate 2.5 gigawatts (Gw) of power or produce 50 million barrels of oil equivalent (boe) or produce 600,000 metric tonnes of liquefied petroleum gas (LPG) per year, produce 22 million tonnes of carbon dioxide (CO2), feed two-three liquefied natural gas (LNG) trains, generate 300,000 jobs, able to attract $3.5 billion investment into Nigeria and has $350 million carbon credit value’. This is an illustrative pointer as to why the nation economically gropes and stumbles.
Looking at the enormity of the health and economic losses inherent in gas flaring, one may be tempted to ask what set the stage for gas flaring in Nigeria. The politics that keep it going, and why it flourishes unabated?
Banking on what experts are saying, the major reason for the flaring of gasses is that when crude oil is extracted from onshore and offshore oil wells, it brings with it raw natural gas to the surface and where natural gas transportation, pipelines, and infrastructure are lacking, like in the case of Nigeria, this gas is instead burned off or flared as a waste product as this is the cheapest option. This has been going on since the 1950s when crude oil was first discovered in commercial quantities in Nigeria.
To make the PIA rewarding and meet the changing needs of all the parties involved, Senator Godswill Akpabio’s led 10th National Assembly must amend the existing legislation. It has to be simple and without any form of ambiguity in its provisions. Take as an illustration; the NASS must not fail to remember that the Host Community Development Trust Fund (HCDTF) is to foster sustainable prosperity, provide direct social and economic benefits from petroleum to host communities, and enhance peaceful and harmonious coexistence between licensees or lessees and host communities. The 10th NASS must do more to strengthen these provisions.
Most importantly, it has recently become evident that every normal human being from the Niger Delta is against the 3% allocation to the host communities. They are in support of the community’s demand of 10%.
While the above state of affairs has tactically exposed the fundamental flaw in the PIA, which was at a time celebrated, the truth is that if the members of the 10th NASS and, of course, President Bola Tinubu-led federal government do nothing to amend this legislation, it will translate to failing future generations of Niger Deltans by leaving them an Act that will more diminish and devastate their region.
The NASS should also put these concerns into consideration.
Utomi Jerome-Mario is the Programme Coordinator (Media and Policy) for Social and Economic Justice Advocacy (SEJA), Lagos. He can 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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