General
PIA and Gestation of Acts
By Jerome-Mario Chijioke Utomi
Many Nigerians with critical interest had hitherto believed that the advent of Nigeria’s Petroleum Industry Act (PIA) 2021, which was signed into law in the year mentioned above, and arguably the most audacious attempt to overhaul the petroleum sector in Nigeria, would solve the real and imagined challenges in the nation’s petroleum sector, and turn the Niger Delta region, particularly host communities, to a zone of peace in their relationship with crude oil prospecting and exploration companies.
However, facts have since emerged that instead of providing the legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry and the host communities, the Petroleum Industry Act has, contrary to expectations, become a first line of conflict between crude oil prospecting, exploration companies and their host communities.
Like other Acts that guided crude oil production in the past, PIA has similarly become a toothless bulldog that neither bites nor barks. In fact, analysts and industry watchers have come to a sudden realization that nothing has changed.
Among many examples, the recent 14 days ultimatum/threat by an 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 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 seemingly snobbish attitude of the management of Conoil 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 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 equally a 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.
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 Ughelle down to Ogwuashi Ukwu in Anoicha Local Government of the state shows an environment where people cannot properly breathe as it is littered by gas flaring points.
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 gases 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 on since the 1950s when crude oil was first discovered in commercial quantity in Nigeria.
While Nigeria and Nigerians persist in encountering gas flaring in the country, even so, has successive administrations in the country made both feeble and deformed attempts to get it arrested.
The facts are there and speak for it.
In 2016, President Muhammadu Buhari-led administration enacted Gas Flare prohibition and punishment), an act that, among other things, made provisions to prohibit gas flaring in any oil and gas production operation, blocks, fields, onshore or offshore, and gas facility treatment plants in Nigeria.
On Monday 2nd.September 2018, Dr Ibe Kachikwu, Minister of State for Petroleum (as he then was), while speaking at the Buyers’ Forum/stakeholders’ Engagement organized by the Gas Aggregation Company of Nigeria in Abuja, among other things, remarked thus, ‘I have said to the Department of Petroleum Resources, beginning from next year (2019 emphasis added), we are going to get quite frantic about this (ending gas flaring in Nigeria) and companies that cannot meet with extended periods –the issue is not how much you can pay in terms of fines for gas flaring, the issue is that you would not produce. We need to begin to look at the foreclosing of licenses’.
That threat has since ended in the frames as the Minister did little or nothing to get the threat actualized.
The administration also launched the now abandoned National Gas Flare Commercialization Programme (NGFCP, a programme, according to the federal government, aimed at achieving the flares-out agenda/zero routine gas flaring in Nigeria by 2020.
Again, like a regular trademark, it failed.
Away from Buhari’s administration, in 1979, the then federal government, in a similar style, came up with the Associated Gas Re-injection Act, which summarily prohibited gas flaring and also fixed the flare-out deadline for January 1, 1984. It failed in line with the leadership philosophy in the country.
Similar feeble and deformed attempts were made in 2003, 2006, and 2008.
In the same style and span, precisely on July 2, 2009, the Nigerian Senate passed a Gas Flaring (Prohibition and Punishment) Bill 2009 (SB 126) into Law, fixing the flare-out deadline for December 31, 2010- a date that slowly but inevitably failed.
Not stopping at this point, the FG made another attempt in this direction by coming up with the Petroleum Industry Bill, which fixed the flare-out deadline for 2012. The same Petroleum Industry Bill (PIB) got protracted till 2021, when it completed its gestation and was subsequently signed into law by President Buhari as PIA.
Despite this vicious movement to save the industry, the environment and its people, the Niger Delta challenge remains.
So, the question that is as important as the piece itself is; if this legion of laws/Acts cannot save the people of the region, who will? When will it complete its gestation period and deliver the targeted result to the people of the Niger Delta region?
While the answer(s) to the above question remains germane, this piece holds the opinion that to permanently resolve the Niger Delta question, the people of the region must be directly involved in the management of their resources. Call it resource control; you may not be far from the truth!
Utomi Jerome-Mario is the Programme Coordinator (Media and Policy) at Social and Economic Justice Advocacy (SEJA), Lagos. He can be reached via [email protected]/08032725374
By Adedapo Adesanya
The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against President Bola Tinubu for not probing allegations of N57 billion of public funds said to be missing, diverted or stolen from the Federal Ministry of Humanitarian Affairs and Poverty Alleviation in 2021.
The allegations were documented in the 2021 audited report released last month by the Office of the Auditor-General of the Federation.
Joined in the suit as respondent is the Attorney General of the Federation and Minister of Justice, Mr Lateef Fagbemi (SAN).
In the suit number FHC/L/MISC/876/2024 filed last Friday at the Federal High Court, Lagos, SERAP is asking the court “to compel President Tinubu to direct Mr Fagbemi to work with appropriate anti-corruption agencies to promptly probe allegations that over N57 billion of public funds are missing, diverted or stolen from the Federal Ministry of Humanitarian Affairs and Poverty Alleviation in 2021.”
It also asked the court “to compel President Tinubu to direct Mr Fagbemi to work with appropriate anticorruption agencies to prosecute anyone suspected to be responsible for the missing N57 billion, if there is sufficient admissible evidence, and to recover any missing public funds.”
In the suit, the group argued that, “Investigating the allegations and prosecuting those suspected to be responsible for the missing N57 billion and recovering the missing funds would end the impunity of perpetrators.”
“The allegations amount to stealing from the poor. There is a legitimate public interest in ensuring justice and accountability for these grave allegations.
“Poor Nigerians have continued to pay the price for the widespread and grand corruption in the Federal Ministry of Humanitarian Affairs and Poverty Alleviations and other ministries, departments and agencies [MDAs].”
“The consequences of corruption are felt by citizens on a daily basis. Corruption exposes them to additional costs to pay for health, education and administrative services.”
“The allegations also suggest a grave violation of the public trust, the Nigerian Constitution 1999 (as amended), the country’s anticorruption legislation and international anticorruption obligations,” the statement said in parts.
The suit filed on behalf of SERAP by its lawyers, Kolawole Oluwadare and Oluwakemi Agunbiade, noted that, “Granting the reliefs sought would go a long way in addressing corruption in ministries, departments and agencies [MDAs] and the country’s budget deficit and debt problems.”
“According to the 2021 annual audited report by the Office of the Auditor-General of the Federation, the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, [the Ministry] in 2021 failed to account for over N54 billion [N54,630,000,000.00] meant to pay monthly stipends to Batch C1 N-Power volunteers and non-graduate trainees between August and December 2021,” the organisation said.
By Adedapo Adesanya
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is collaborating with Rolling Energy to convert 100,000 vehicles to Compressed Natural Gas (CNG) in 18 months as part of efforts to support small businesses struggling to navigate the tough operating environment.
The Director-General of SMEDAN, Mr Charles Odii, disclosed this at the unveiling of a CNG Conversion and Training Centre in Abuja, noting that another partner is Pi-CNG.
“This new centre is designed to convert vehicles to run on CNG, an affordable and environmentally friendly alternative to traditional fuels.
“With its capacity to convert nine vehicles daily and a dedicated team of 20 technicians, the centre will help SMEs reduce transportation costs and adapt to changing energy needs.
“It will also train young Nigerians in CNG conversion, maintenance, and repair, equipping them with practical skills and opening up new business opportunities,” he stated.
According to Mr Odii, the mandate of the Pi-CNG initiative is to roll out about one million converted cars in the next 18 months.
“We at SMEDAN are committing to taking 10 per cent of those cars to be converted at our centres,’’ he said.
He added that the project aligned with SMEDAN’s GROW Nigerian strategy, which focuses on providing SMEs with Guidance, Resources, Opportunities, and Workforce Support.
“By adopting CNG, we are helping SMEs cut costs while promoting sustainable energy practices. This effort is particularly timely as businesses face rising fuel costs following subsidy removal.
“SMEDAN is also committed to improving access to critical infrastructure for SMEs. We are upgrading Industrial Development Centres across the country to provide affordable tools and power tailored to the needs of small businesses,” Mr Odii said.
On his part, the Californian Secretary of Transportation, Mr Toks Omishakin, praised Nigeria’s efforts in adopting cleaner energy alternatives, such as CNG, but urged stakeholders to look beyond CNG and invest in long-term renewable solutions.
“I see a tremendous opportunity for collaboration between California and Nigeria in exploring renewable energy solutions like solar, wind, and hydrogen,” he said.
The Executive Vice Chairman of the Presidential CNG Initiative, Mr Toyin Zubair, commended SMEDAN and other stakeholders for their contributions, emphasising the need to harness Nigeria’s vast natural gas resources to drive the economy.
“Nigeria has one of the largest gas reserves in the world. By using this resource locally to power vehicles and industries, we can reduce costs and create a cleaner environment,” Mr Zubair said.
The chief executive of Rolling Energy, Mr Mubarak Danbatta, explained that the conversion process prioritised safety and affordability, making it accessible to SMEs.
“With less than N4,000, a vehicle can be fully fueled with CNG, compared to over N60,000 for petrol. This is a significant relief for businesses.
“CNG is not a business for the rich. It is a business for everyone. And the good thing is that this partnership is being done with SMEDAN and Pi-CNG for the benefit of SMEs,” Mr Danbatta said.
By Adedapo Adesanya
The Lagos State Government has expressed its readiness to get a brand-new Building Code next year, to achieve the high-performance standards needed to make Lagos a sustainable and Smart City.
The government’s readiness was disclosed at the Lagos State Executive Council Retreat on the Domestication of the Lagos Building Code, organised by the Office of the Special Adviser on e-GIS and Urban Development, held at Ikeja GRA on Wednesday.
Speaking during the retreat, Lagos State Governor, Mr Babajide Sanwo-Olu emphasised the need for more collaboration among all the ministries and agencies in the built sector, to ensure the state development in line with global best practices.
He said the motive behind the Lagos Building Code is to have a building regulation that would make Lagos much more resilient.
“We (Lagos State Government) are the first to domesticate the National Building Code, which is the creation of the Federal Government. We are not doing anything outside the vision at the sovereign and sub-sovereign levels. But what is unique about our own is the fact that all the cabinet members see the need to have an input because it would be an outcome that would affect lives and different ministries and agencies.
“So, there is a need for everybody to have a say, and at the end of the day, collectively we will resolve to have a way.
“What we are trying to do is for Lagos State to do what is obtainable internationally: have a building regulation in which we have a standard of construction in design, manner of land use occupancy, and use of building materials, which we believe would eventually improve and help with health, safety, and occupancy issues.
“It is all about building sustainably, making Lagos a lot more resilient and able to absorb shock in the future and able to stand in the comity of developed cities and city-states as we see in various parts of the world,” he said.
The Special Adviser to the Governor on eGIS and Urban Development, Mr Olajide Babatunde, stated that the Lagos Building Code is to complement the existing regulatory framework and provide a comprehensive solution to the challenges of land use, physical development, and urban planning.
Mr Babatunde said the Lagos Building Code will regulate building control, planning permission, and address the issues of setbacks; take care of the safety and sustainability of the environment; and also prevent the collapse of buildings.
“We have been working on the domestication of the National Building Code, and by next year, we are going to have our own brand-new Lagos Building Code. We have worked with professional bodies and people from academia, market women, and the public in general, and through a participatory approach, we can come out with a document that is acceptable to everyone and useful to the entire state,” he said.
Also speaking, the Special Adviser to the Governor on Infrastructure, Mr Olufemi Daramola, described the Lagos State Building Code initiative by the Babajide Sanwo-Olu administration as the next step to Green Lagos that will enable the state to plan buildings properly and ensure durable infrastructure in the state.
During the retreat, members of the Lagos State Executive Council brainstormed and advocated aggressive sensitisation for residents of the State on the Lagos Building Code before implementation.
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