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 je*********@***oo.com/08032725374
By Adedapo Adesanya
President Bola Tinubu has said state governments are now receiving substantially higher allocations to drive development, while renewed investor confidence is attracting fresh investments into Nigeria.
Speaking at the maiden State House Media Dinner in Abuja on Thursday, the president described the development as evidence that his administration’s economic reforms are beginning to deliver positive results.
He defended the reforms introduced by his administration, acknowledging that they were difficult but necessary to reposition the economy for sustainable growth.
According to Mr Tinubu, stronger public revenues have enabled increased allocations to states, while improvements in the investment climate have boosted confidence among domestic and foreign investors.
“The difficult but necessary reforms undertaken by this administration are yielding results. Our economy is stabilising. Public revenues have strengthened significantly,” he said.
“State governments are receiving substantially higher allocations to support development. Investor confidence is returning.
“Our foreign reserves have improved considerably. The oil and gas sector is attracting renewed investment. The stock market has witnessed remarkable growth. Key economic indicators are moving in the right direction,” Mr Tinubu stated.
The president also said the administration was laying the groundwork for long-term prosperity through a combination of tax and fiscal reforms, infrastructure development and improvements to the business environment.
“Through tax reforms, fiscal reforms, infrastructure investments, and improvements in the business environment, we are laying the foundations for a more competitive, productive, and prosperous economy,” he said.
Although acknowledging that more work remains, Mr Tinubu maintained that the country was firmly on the path to sustainable economic growth.
“The journey is not yet complete, but the direction is clear, and the foundations for long-term growth are being firmly established,” he added.
On security, the president said his administration had sustained a multi-dimensional strategy that has produced measurable gains across different parts of the country.
He noted that intensified military operations, improved intelligence gathering, stronger inter-agency coordination, and expanded regional and international cooperation had led to the neutralisation of thousands of terrorists and criminal elements, the rescue of numerous hostages, and the recovery of communities previously under siege.
President Tinubu reiterated his administration’s commitment to ensuring peace and security across the country, saying every Nigerian should be able to live, work and prosper without fear.
The president also commended the media for its contribution to Nigeria’s democratic development while urging journalists to uphold professionalism by reporting accurately and responsibly.
“We are adversaries only in the democratic sense, as the media constantly distrust those in power. In nation-building, we are partners,” he said.
He described government and the media as institutions with complementary responsibilities, noting that while government serves through leadership and public policy, the media serves by holding those in power accountable on behalf of the people.
By Adedapo Adesanya
Shell Nigeria Exploration and Production Company Ltd (SNEPCo) has launched a $3 billion Contract Finance Facility in partnership with nine Nigerian banks to improve contractors’ access to funding and strengthen local participation in the oil and gas industry.
The facility is designed to provide credit support for local contractors executing projects for SNEPCo operations and will be available in both Naira and US Dollars.
The participating banks are First Bank, Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, Stanbic IBTC, Standard Chartered Bank, First City Monument Bank and Fidelity Bank.
Speaking at the signing of the Memorandum of Understanding in Lagos, the SNEPCo Managing Director, Mr Ronald Adams, said, “The initiative reflects the spirit of the Nigerian Oil and Gas Industry Content Development Act, which is aimed at in-country value retention.”
“Our partner banks offer capital and discipline. SNEPCo brings contracts and domiciliation of payments that de-risk lending. On their part, the contractors provide performance. Each is accountable to others, and the mutual accountability gives the arrangement its strength,” he added.
Also speaking, the Vice President for Finance at Shell Nigeria, Mr C. J. Akwaeze, said the scheme reflects Shell’s commitment to the growth of oil and gas operations in Nigeria.
The chairman of the indigenous oil and gas contractor group, the Petroleum Technology Association of Nigeria (PETAN), Mr Wole Ogunsanya, represented by Mrs Joan Faluyi, lauded the scheme as a “gateway to unlocking contractor financing issues which will also drive efficiency in contract execution.”
Representatives of the banks commended SNEPCo for the opportunity to partner on an initiative aimed at empowering contractors and assured the company of their continued support and cooperation.
Nigerian companies have continued to play key roles in supporting SNEPCo’s operation and project execution. Earlier this year, 43 wholly Nigerian companies took part in the turnaround maintenance exercise at the Bonga Floating Production and Offloading (FPSO) vessel out of the total of 53 companies involved.
By Adedapo Adesanya
Nigeria has joined the International Energy Agency (IEA) as an associate member, making Africa’s largest crude producer the first member of the Organisation of the Petroleum Exporting Countries (OPEC) to do so.
The governing board of the Paris-based agency unanimously agreed for Nigeria to join the IEA family, deepening its cooperation with Africa’s most populous nation in a major advance for global energy governance.
“I am thrilled that Nigeria is joining the IEA – it is Africa’s most populous country and a major international energy player. Nigeria becoming part of the world’s energy authority marks a milestone for global energy governance. I am very thankful to President Tinubu and Minister Ekpo for their trust in the IEA,” said IEA Executive Director, Mr Fatih Birol.
“As Nigeria works to strengthen energy security, support economic growth and expand energy access, deeper cooperation with the IEA will bring important benefits for both sides. We look forward to building on our already strong partnership and welcoming Nigeria to the IEA,” he added.
On his part, Nigeria’s Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, lauded the decision, saying it will contribute to helping the country utilise its energy resources.
“I am elated with the decision of the IEA Members to officially welcome Nigeria to the IEA Family as an Association country,” he said. “It is an honour for Nigeria to join this leading energy agency, and I will take this opportunity to encourage the African continent to embrace the IEA, as we all work together to achieve key development goals including universal energy access and industrialisation.”
Nigeria’s growing role in international energy markets has been highlighted by recent developments in its refining sector. During recent periods of market disruption, increased fuel exports from Nigeria helped strengthen resilience in African and international fuel markets.
The IEA, in a statement, noted that Nigeria has emerged as one of the world’s fastest-growing markets for decentralised solar solutions and is stepping up efforts to expand access to electricity and clean cooking.
The IEA governing board’s decision builds on a strong history of engagement and collaboration between Nigeria and the IEA since 2014.
In September 2025, the IEA, Mr Ekpo as Minister of Petroleum Resources and the African Energy Commission (AFREC) jointly convened a Regional Roundtable on Turning Methane Pledges into Action in Abuja, bringing together energy stakeholders from across the region to advance efforts to reduce methane emissions from the energy sector.
As an associated country, Nigeria and the IEA will work more closely across a wide range of energy issues, including on the Agency’s engagement in sub-Saharan Africa.
Created in 2015, the IEA Association programme allows the agency to deepen ties with its partner countries, bringing together major energy-producing and consuming countries from around the world.
Nigeria joins a network of 13 other Association countries that work with the IEA to advance secure, affordable and sustainable energy systems worldwide. As a result of this expansion, the IEA’s share of global energy demand has increased from 40 per cent in 2015 to over 80 per cent today.
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