The Nation Newspaper

Tag: Niger-Delta

  • Buhari urged to dialogue directly with N/Delta militants

    Buhari urged to dialogue directly with N/Delta militants

    An Economist, Prof. Simon Momodu has urged President Muhamadu Buhari to directly dialogue with the Niger Delta militants as a way of ending oil installation vandalism.

    Momodu, a lecturer in the Rivers State University of Science and Technology made the call when speaking to newsmen in Port Harcourt on Wednesday.

    He said that having such direct interface with the militants in the region would be more effective than using representatives.

    According to him, various discussions about the region in the past have not yielded needed results because the `real people’ are left out.

    He said that the government had kept interfacing with the same people that had failed to accord the region effective representation in the past.

    “How can you be discussing with the same old leaders who are no longer trusted and expect to achieve results,’’ he said.

    The university teacher said that achieving peace and calm in the Niger Delta was crucial to ensure effective funding of the 2017 budget.

    “We are talking about the region that provides revenue for funding the budget, if the right environment is not provided, then revenue will not be generated.

    “The president needs to come down and talk with the people, you will be surprised at the result that will be realised,’’ he said.

    Speaking further on the budget, Momodu said that enough money was not allocated for education to tackle the decay and demands of the sector.

    He also stated that effective implementation of budgetary provisions remained crucial to ensuring better services for the people.

    “No matter how flowery a budget speech may look or sound, not to have it effectively implemented means that nothing will be achieved.

    “So government needs to do the needful to generate the needed money and ensure effective implementation of the budget in the interest of the people,’’ he said.

  • NNPC vows to find lasting peace in Niger Delta

    NNPC vows to find lasting peace in Niger Delta

    The Nigerian National Petroleum Corporation (NNPC) on Sunday vowed to continue to find sustainable solution to the challenge posed by insurgency in the Niger Delta.

    The NNPC Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu, said this in a statement issued in Abuja.

    “The Corporation has created security management platforms that would enable it identify and evaluate risks, develop and superintend implementation of investigations.

    “The platform will also aggregate and deploy necessary resources to guarantee peaceful business environment in the region,” Ughamadu said.

    Quoting the NNPC Group Managing Director, Dr Maikanti Baru who addressed staff during an end of year message, the spokesman said the corporation was committed to implementing a robust security.

    “’The Corporation is committed to implementing a robust security and stakeholders’ strategy that would ensure that peace reigned in the industry operational areas.

    ‘“Dr Baru attributes the recent increase in the country’s oil and gas reserves to 37 billion barrels and 192 trillion cubic feet, respectively, to the relative peace that was instituted in the Niger Delta.

    “’Over the year, NNPC adopted strategies to ensure the Corporation’s operational profitability, renegotiation of all existing contracts to achieve substantial value realisation of between five and 30 per cent discounts.

    “This singular effort alone translated to substantial cost savings in favour of NNPC,” Ughamadu said.

    He said NNPC had commenced the implementation of a 12-key Business Focus Areas developed by its Management Team to enhance the corporation’s business performance.

    In addition, he stated that a team had put in place structures that would enable smooth implementation of new business models for its Strategic Business Units and companies nationwide.

    Ughamadu lauded President Muhammadu Buhari and Dr Ibe Kachikwu for providing enormous support to reposition NNPC.

  • FG seeks EFCC, ICPC intervention on failed projects

    The Federal Government on Tuesday said it would seek the intervention of the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and other Related Offenses Commission (ICPC) over the N400 billion failed projects in the Niger/Delta.

    The Minister of Niger Delta Affairs, Pastor Usani Uguru Usani, who disclosed this at a news conference in Abuja, said it was disheartening that since the creation of the Niger Delta Ministry over N400 billion has been disbursed for various projects with less than 13 percent implementation by the contractors.

    He vowed that the government would not allow the contractors get away with the injustice they perpetrated against the people of the Niger Delta.

    He said the situation was compounded by the facts that contractors handling such projects were Niger Delta indigenes who had developed the habits of collecting mobilization funds from the ministry and afterwards eloped without doing anything at project sites.

    Among the failed projects were roads, water, electricity, skill acquisition centres, housing estates, farms and health care centres.

    The minister said the first step had been taken by ordering the contractors back to project sights to justify the funds collected, stating that contractors who failed to meet up with the pace of the ministry would have their dates with the anti-graft agencies.

     

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  • Isoko youths make fresh demands for peace in Niger Delta

    A pressure group, Isoko Dynasty Boys 19 (IDB-19), has warned oil and gas companies and intervention agencies in Isoko community of Delta State to engage youths for peace to return to Niger Delta.

    In a statement to the Niger Delta Development Commission (NDDC), Delta State Oil Producing Areas Development Commission (DESOPADEC), Nigeria Petroleum Development Company (NPDC), multinational oil companies and security agencies, the group warned that failure of concerned organisations to heed its demand would result in what it called dire consequences.

    The statement, by Coordinator-General and Secretary, Collins Ededhor and Henry Osioh, reads: “We want the Nigerian security arms to engage Isoko youths positively in …security training, information gathering, employment and other collaborations that are legal.

    “The NDDC and DESOPADEC should involve our youths directly in all forms of skill training, acquisition and youth development. We need soft loans for young farmers’ multi-purpose unions, through their governing bodies, IDB-19 and IPYC for proper accountability.

    “To secure the reopening of our right of way (ROW) and for a cordial relationship with Isoko youths and their organs, there is a huge demand for a concrete, concise and converted MoU.”

  • How to curb restiveness in the Niger Delta, by Boroh

    How to curb restiveness in the Niger Delta, by Boroh

    The Special Adviser to the President on Niger Delta and Co-ordinator of the Presidential Amnesty Programme (PAP), Brig-Gen. Paul Boroh, in this paper delivered participants of the National Institute for Policy and Strategic Studies (NIPSS), lays bare the poverty in the Niger Delta and the role the PAP has played in reducing it. Excerpts:

    The Niger Delta region has benefitted from Federal Government investment of over $40 Billion, over the last 10 years.  Through a variety of Federal and State Government interventions (schemes and programmes), skills acquisition has been a key tool of government to work towards reducing high levels of poverty in the region.

    The PAP has currently trained 13,571 delegates and with 712 delegates that are currently in-training in a variety of vocational skills. Also, the PAP has graduated 1,230 in various fields of education and currently has 3,057 students in various universities across the globe still studying.  These acquired skills and education have given a total of 18,570 delegates (in education and vocation both graduated and in-training/studying) the opportunities to access sustainable livelihood.  Delegates access to entrepreneurial activities that have earned them on the average, income higher than the minimum wage in Nigeria.  The Programme has therefore been a tool for poverty reduction in the region, given the level of socio-economic improvement of the delegates in terms of education, access to employment as well as access to empowerment in a variety of business areas.

    The results of the survey of 232 delegates have demonstrated the assumption that skills acquisition has a positive impact on poverty reduction.  However, other factors like income (monthly stipend, monthly salary, monthly personal drawings from profit) received by delegates, are also critical.    The acquired skills need to therefore lead to a form of income, through employment or self-employment. Actual poverty reduction also depends on the level of income secured in the employment of micro-business, as the 2016 ILO report on decent jobs highlights. (World, Employment Social Outlook 2016: Transforming Jobs to End Poverty”, International Labour Organization, 2016).

    Many of the surveyed delegates who were empowered with entrepreneurial skills and starter pack items to start-up businesses, have been able to grow their businesses with a good profit margin and these businesses may soon be able to create more jobs in the region thus, having multiplier effects on other households and families. Also, a significant percentage of the skilled, employed and empowered delegates are females and majority of the delegates are married and have dependents under them. This implies that the training, employment and empowerment have multiplier effects on the households and families of the delegates.   Also, a significant percentage of the surveyed delegates become car and house owners within the short period of training, employment and empowerment. Those who had been trained and empowered in business, clearly showed that they have benefitted the most from the PAP.

    The indicators and findings of the survey of the delegates therefore show that the PAP has the socio-economic potentials to continue to improve the wellbeing of the citizens in the region and in the country at large.     Nevertheless, a significant percentage of delegates are yet to be trained and many more still need to be employed or empowered.   This challenge has the potential to reduce the success level of the programme and the capacity of the programme in reducing poverty in the region, if not addressed.

     

    RECOMMENDATIONS

    The following recommendations are proffered to serve as policy interventions for the Federal Government’s Intervention in the Niger Delta:

    • There should be a review of the Niger Delta Regional Development Plan and a renewed cohesive and comprehensive approach should be adopted with regards to investment in the Niger Delta Region by the all stakeholders, including Government and private companies.
    • The various government agencies in the Niger Delta must be strengthened in a way and manner that they can effectively institute transformation in the region. Each of these levels of government agencies must continue to strive to contribute its own quota to the poverty reduction in the Region through training and skills acquisition and empowerment.
    • Skills acquisition interventions must be accompanied with fully-funded job creation and micro business entrepreneurship programmes at federal and state levels.
    • In line with the transparency of President Muhammadu Buhari Administration and to ensure peace in the region, all stakeholders within the Niger Delta region need to be continuously engaged and involved in the monitoring of implementation of these government interventions.
    • The Framework for PAP should be strengthened by increasing the capacity of the Programme to accommodate and give support to all delegates. This could be through private organisations and encourage public-private partnership to increase the scope of service delivery of the Programme and also to attract more funds and support for efficiency and effectiveness. This would enable the empowerment of more businesses that will further create job opportunities in the region.
    • Agencies charged with responsibility for the provision of infrastructure in the Niger Delta region, need a clear sense of direction and to be seen to deliver timely results, to enable the development of a more conducive business environment in the Region.
    • Environmental concerns in the Region should go beyond rhetoric. Action should be taken on zero tolerance for gas flaring, and such other factors which degrade the environment of the Niger Delta during oil exploitation. A multi-sectoral approach is required for cleaning of the region to solve the environmental problem and security problem. Public sector cooperation and synergy becomes imperative.
    • The political matrix upon which the regional economy can develop is very important. Therefore, it is necessary to nurture a transparent democratic process which respects the sovereign will of the people as expressed through their votes and consultative channels that allow unrestricted media attention, as well as the development of a political leadership that is accountable.
    • Skill acquisition packages for Niger Deltans promise a better future for both the local population and the companies if well managed. Upon the completion of their training and education in oil related skills, the companies should ensure that they are recruited and engaged in the oil industry by a quota system.
    • To sustain poverty reduction in the region, it is important that government continues to find a platform for round table discussions with the inhabitants of the Niger Delta as much as possible to reduce agitation in the region.
    • Collaboration among the security arrangements in the region comprising the Police, private and community-based security organisations is critical to lasting Peace in the region.
    • Finally, Government policies must be sustainable and modified only to suit the need of the populace particularly in the Niger Delta. Policies and programmes of the government must be time relevant and consistent with change in administration for positive results and lasting peace in Niger Delta region.
  • Five militant camps, four illegal refineries crippled as naval chief storms Niger Delta

    Five militant camps, four illegal refineries crippled as naval chief storms Niger Delta

    The activities of the rampaging youths at sea have constantly put the men of the Nigerian Navy on their toes. One key way the Navy has battled these youths who are oil thieves and bunkerers is the Chief of the Naval Staff (CNS) annual sea inspection  meant to test the capability of the command’s equipment and officers to combat sea criminals.

    The CNS, Vice Admiral Ibok Eteh Ibas, last weekend during the operation codenamed: “Exercise Eagle Eye”, sailed on NNS Centenary to 70 nautical miles away from the Federal Ocean Terminal (FOT) jetty in Onne Rivers State, to Agbami Oil Field, operated by Chevron Nigeria Limited to see things for himself. The oil and gas platform is said to be one of the major strongholds of the nation’s economy.

    The sea inspection was flagged off by the Chief of Defence Staff (CDS), Gen. Abayomi Olonisakin. The activities began December 1, in Delta State, where the first phase was launched to kick start the programme which lasted two days before the sea inspection was flagged off, Saturday and was brought to a close Monday.

    Gen.  Olonisakin lauded the efforts of the Navy to adequately secure the Nation’s waterways for national and economic development despite inadequate funding, and said the need for their encouragement for more effective presence at sea could not be over-emphasized.

    The activitiesof the participating formations at sea include, firing and Visit, Board, Search and Seize (VBSS); this was meant to demonstrate how men of the Nigerian Navy enforce the takeover of any vessel on sea when intelligence reveals it is conveying contraband goods.

    In his assessment of the trip, Vice Admiral Ibas expressed satisfaction on the naval equipment at sea and what he saw his officers do at sea, and promised to work on the weaknesses noticed, for better, more efficient and effective protection of Nigerian facilities off-shore.

    “This is going to be a continuous exercise. For the last 48 hours which you (the media) participated in, you have seen the need for the Navy to maintain presence at sea, you have seen the Nigerian critical oil and gas infrastructure(Agbami oil field), at sea which need to be protected. We have also used that opportunity of being at sea to evaluate the readiness of the various platforms that took part in the exercise that were conducted and different demonstrations.

    “We been able to note what short comings that we have, all these will be put together as we go back to the headquarters to ensure that they are corrected. Assessing the overall exercise, I can say we’ve been able to achieve the main objectives for which the exercise was put in place,” he said.

    Presenting the score card of his formation during the two-day shallow water raiding exercise, the Officer in Tactical Command/ Commander Task Group 16.3, (OTC/CTG 16.3), planning team, Rear Admiral Muhammad Garba, said five militant camps, four illegal refineries and five suspects were arrested and equipment, weapons recovered in Delta and Bonny in Rivers state.

    Garba gave the names of the suspects arrested in Bonny as Solomon (Bayelsa), Jordan Ade, Mark Sunday, Solomon Ichem (Rivers), and Bisong (Akwa Ibom).

    Two other suspects arrested on the cutting channels waterways while conveying two different badges suspected to containing stolen petroleum substance during the first phase of the exercise were also handed over to the operatives of the Economic and Financial Crime Commission (EFCC) for further investigations and possible prosecution.

    The Navy reiterated the resolve of the CNS to stop all forms of criminal activities, especially oil theft and sea robbery/ piracy as well as hostage and ransom taking in the country’s waterways, and warned daring criminals to revisit their decisions and steer clear the Nigerian sea or face the wrath of the Navy and the law.

    Receiving the suspects on behalf of the Executive Chairman of the EFCC, Ibrahim Magu, the Head, South-South zone, Ishaq Salihu assured that the operative would ensure that justice was done in the matter and fair hearing given to the suspects.

    Rear Admiral Garba said: “After mapping out the expected area of coverage by the OTC, Exercise Eagle Eye tactical team, we discovered that we will need to cover a sea area of 39,600 square nautical miles and a coast line of 220 nautical miles, extending seawalls to 180 nautical miles, within the targeted coordinates.

    “The mandate given was to conduct maritime operation in order to ensure a secure maritime environment, including preventing planned attack on Agbani Flushing Platform Storage Offloading (FPSO), NNHPs in the swamp area of the Niger Delta, Oil and Gas installations and infrastructures and against shipping, not later than December 5, 2016.”

    He continued:  “Five suspects were arrested and pumping machines recovered in Delta, seven boats destroyed and five militant camps were also raided. At FOB Bonny, four illegal refineries sited at Ijokiri, five boats laden with products suspected to be crude and another boat loaded with drums of illegal Diesel (A G O), 12 tanks loaded with illegal refined A G O and six tanks loaded with products suspected to be crude oil, three pumping machines and two Yamaha outboard engines were recovered, while five suspects were arrested.

    “Also within the first two days of the exercise, four suspected sea robbers were also arrested and weapon reportedly recovered from them, among several other achievements, which included raiding of more militant camps and destruction/impounding of boats, petroleum products suspected to be properties of the criminal suspects at FOB Bonny, Rivers state, while two Navy ships were on constant patrol on Brass Bayelsa and Rivers entrance to Agip facility in the period.”

    He expressed shock at the daring, unrelenting spirit of the militants noting that the kind of communication gargets found at the camp in Bonny could equal that of any military camp, but assured that the military is always steps ahead of them and their strategies.

    “Let me inform you also that the militant camp raided at FOB Omoso was almost like a military base; this is because the equipment found in there were things that can be used not only for tactical operation, but for operational reading; this is because the radio sets we recovered there were not just radio sets for listening they could also use it for transmitting,” Garba observed.

    The representative of the Nigerian Air Force in the Exercise Eagle Eye planning and execution, Comdr. S. Zakari, expressed satisfaction at the work of the Navy and confirmed that all programmes and activities carried out at sea were in accordance with the mapped out plans.

    The Chairman, Senate Committee on Navy, Isah Hamma Misau, hailed the Navy for curbing criminal activities on the sea.

    He said: “I want to really appreciate the Nigerian Navy for this laudable initiative. The National assembly will continue to support the Nigerian Navy because we have seen what you are doing and we are proud of you.”

  • ‘Insecurity in Niger Delta poses challenge to operations’

    The Petroleum Technology Association of Nigeria (PETAN) has said pipeline vandalism and insecurity in the Niger Delta are threats to its operations.

    PETAN’s Chairman Mr. Bank-Anthony Okoroafor spoke to the News Agency of Nigeria (NAN) in Lagos against the backdrop of the decline in crude reserves and gas shortage.

    He said the situation in the region created negative impact in the industry, adding that this led to deferment and cancellation of projects.

    Okoroafor said vandalism impacted negatively on the environment and socio-economic growth.

    He appealed to residents to protect oil facilities.

    According to him, if vandalism stopped, the economy and infrastructure will improve.

    “The economic challenge was a result of dwindling crude oil price and pipeline vandalism.

    “It is a criminal act to destroy the wealth of the nation. This act has caused the country so much to replace or rehabilitate.

    “These activities have prevented many from enjoying dividends of democracy,’’ he said.

    Okoroafor said insecurity in the Niger Delta led to downsizing of workers, salary reduction and tightened access to capital by oil companies.

    “PETAN members are suffering due to unrest in the region. It has caused high funding costs and currency volatility.

    “Our industry is bleeding; members cannot service their loans or pay salaries promptly. It is sad to lose capacities that took us years to build.”

    He urged the government to ensure that capacity building in the country was not compromised, saying the government should enforce local content implementation.

  • EU commits €20m to rebuild Northeast, Niger Delta

    The European Union (EU) yesterday pledged to spend 20 million Euros to rebuild parts of Northeast and Niger Delta.
    The EU Ambassador to Nigeria, Mr. Michael Arrion, who spoke with the Minister of Finance, Mrs. Kemi Adeosun, in her office, said the funds would be offered in the form of budget support.
    According to the ambassador, “sometime ago, we talked about budget support but we will be able to do that only at the state level, using a special instrument meant for countries emerging from war, and we can look at states in the Northeast and look at specific projects in terms of financial support to their budgets,” he said.
    The EU ambassador said the quest to invest in Africa was informed by the need to discourage migration to Europe, saying thousands of Nigerians continue to migrate to Europe.
    He said: “We have specific objective for creating this instrument and it is to address the root cause of migration. We are presenting this initiative within the framework of the global response to irregular migration.
    Today, we have a few thousand Nigerians in Europe, and we feel we have the responsibility of attracting them to come back to Nigeria.”
    He added that “by investing in Africa, we will be creating jobs. We will be mixing grants with loans. We believe the grants will have a leveraged effect,”
    He said the EU has, in the last two years, invested over 300 billion Euros in Africa.
    Mrs. Adeosun said all financial analyses needed to facilitate support to the states had been put in place, adding that the Fiscal Sustainability Plan required a 21-point fiscal reform programme that enhanced transparency, accountability and efficiency.
    According to Mrs Adeosun, “the funding arrangement would help in healing wounds caused by insurgent activities in the Northeast.
    She said it would also give hope to the Niger Delta people who have been impacted by pipeline bombings and attendant environmental problems in the area.”

  • Buhari eyes three million bpd with Niger Delta revival scheme

    Buhari eyes three million bpd with Niger Delta revival scheme

    President Muhammadu Buhari’s ambition is to take crude output to three million barrels per day (bpd). Nigeria has not met its 2.1 million bpd quota due to disruptions of production by militants in the Niger Delta.  To appease the militants and stimulate the economy, the government unveiled a $10 billion infrastructure rebirth programme and also initiated a review of the 13 per cent derivation allocation to oil producing states. JOHN OFIKHENUA reports that peace is yet to return to the region even after its leaders presented the militants’ demands to the Federal Government.

    WITH crude sales accounting for more than 85 per cent of Nigeria’s revenue, President Muhammadu Buhari cannot but admit that oil and gas production remains the mainstay of the nation’s economy.
    To the President, disruption of oil production in the Niger Delta by restive militants is taking a debilitating toll on the economy. Nigeria could not meet its production quota following unending attacks on oil facilities. But the President said the effective application of the little proceeds was important. He has been holding talks with Southsouth leaders on the need for the militants to give peace a chance.
    Buhari recently presented the ambitious plan tagged: “7 Big Wigs” to stakeholders in the Banquet Hall at the Presidential Villa in Abuja.
    In his opening remarks, he said that the “petroleum industry remains critical to the Nigerian economy of today and the future despite our current challenges.
    “The golden era of high oil prices may not be here now, but oil and gas resources still remain the most immediate and practical keys out of our present economic crises oil and gas still remain a critical enabler for the successful implementation of our budget as well as the source of funds for laying a strong foundation for a new and more diversified economy.”
    Being short and medium term priorities to grow the industry between 2015 and 2019, the 7 Big Wins has been designed to develop a stable and enabling oil and gas landscape with improved transparency, efficiency, stable investment climate and a well-protected environment.
    The seven pillars of the proposed solution to Niger Delta’s security are: policy & regulation; business environment & investment drive; transparency & efficiency; stakeholder management & international coordination; gas revolution & refineries and local production capacity.
    A major setback to the industry has been the threat to oil and gas installations from different militant groups. Besides, the menace has held the country by the jugular, denying it the peaceful atmosphere for production to thrive and reducing the oil output by almost half.
    The situation and all its concomitant challenges have partly plunged the economy into a recession. However, with the 7 Big Wins, the Federal Government looks set to pacify the aggrieved Niger Delta people.
    Explaining the new deal, Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, said the government has a plan to meet more than 50 Niger Delta leaders, including royal fathers, security chiefs and members of the Federal Executive Council (FEC) from the oil-rich region.
    Buhari made good his promise on November 1, when he held a meeting with the leaders from the region. The leaders made 16 requests from the Federal Government.
    On the shopping list are: ownership of oil blocs; review of Amnesty Programme; relocation of headquarters of International Oil Companies (IOCs) to areas of operation; approval of Maritime University; strengthening Niger Delta Ministry; revival of key critical infrastructure; resettlement of Bakassi indigenes; restructuring/funding of Niger Delta Development Company (NDDC); introduction of fiscal federalism; economic development, empowerment of Niger Delta people; improved power supply; security surveillance; protection of oil/gas infrastructure; meeting immediate needs of Internally Displaced Persons (IDPs); addressing effects of increased military presence in Niger Delta and Ogoni clean-up/ environmental remediation.
    At their second parley with the Federal Government 15 days after, the Niger Delta leaders expanded their demands by including political reconstruction and fiscal federalism.
    They said: “The fundamental concern is political reconstruction and fiscal federalism with legitimate and acceptable division of power among the constituents (the center and regions) and the principle and practice of ownership and management of resources by the constituents.
    “The derivation principle should allow the different units annex and control their resources and pay appropriate and agreed tax to the centre.”
    Lack of trust
    But the presentation of the shopping list by the leaders has not gone down well with some groups in the region. The groups believe the leaders would hijack the peace deal for their personal benefits.
    One of the groups, Oil and Solid Mineral Producing Area Landlords’ Association (OMPALAN), cautioned the President against allowing the political elite masquerading as representatives to hijack any of the demands acceded to by the government.
    In a statement, OMPALAN Board of Trustees (BoT chairman, Bishop Udo Azogu, urged Buhari to ensure that whatever concessions granted benefit the common man and not the political class.
    According to him, the elite have always reaped from the spoils of the region.
    The statement reads: “The truth of the matter is that even when government allocates oil blocks to some indigenes of the region, or concedes to resource control, they will end up in the hands of the insatiable political class who has perennially benefited from the lingering crisis in the region.
    “OMPALAN believes that it is justifiable and proper that oil blocks be allocated to the regions that produce oil but, it must be properly considered to meet the ends of justice to the benefit of the common man and not allocated to the same vicious oligarchy that shortchanges the system with impunity.”
    Bombings continue
    Despite waving the olive branch at the region, bombings and destruction of oil and gas facilities have not stopped. The absence of peace in the Niger Delta has discouraged oil companies to resume full-scale production.
    Only last week, the Nigeria Electricity Supply Industry (NESI) lost 4,368MW to vandalism of gas pipeline that resulted in gas shortage.
    The NESI was forced to shot down production at Geregu I and II, Alaoji National Integrated Power Project (NIPP) and Odukpani power stations shut down production by 6pm on November 30, when it could no longer cope with the assaults by militants.
    Also not spared are the Escravos Lagos Pipeline Service and the Trans National Pipeline which aggravated gas constraints in the power sector.
    Although the Organisation of Petroleum Exporting Countries (OPEC) has exempted Nigeria from production cut in order to scale up the price of crude, there are skepticisms on whether vandalism and crude theft would allow the country to leverage on the organisation’s gesture.
    Derivation formula
    under review
    Determined to take the challenges head-on, the President has started the review the application of the 13 per cent derivation allocation from the Federation Account Allocation Committee (FAAC) to the oil producing states.
    According to Kachikwu, the Federal Government will be appealing to the state governors, who take allocations as their main budgeting tool to channel the funds to the core areas where oil is produced in their domains.
    His words: “The President is also reviewing the proposal made to him. He is looking at how the 13 per cent derivation is applied. Right now, it is a budgeting tool for state governments. We are going to be appealing to them to begin to put that into the core areas of the oil producing communities and not just see it as a budgeting number.”
    The 7 Big Wins, actually seems to have planned big for the Niger Delta, the host communities of the nation’s cash cow.
    Plan for infrastructure
    rebirth underway
    The plan for infrastructure rebirth, Kachikwu said, will culminate in the launching of $10 billion infrastructure development programme in the region. He noted that the fund which will be released in installment will not come strictly from the Federal Government, but also from individuals, concerned international organisations and state governments.
    He said state governors in the region, will have to meet to prioritise the application of the fund.
    His words: “Finally, we are also launching $10 billion infrastructural rebirth investment programmes in the Niger Delta region. This is not money that is going to come strictly from the Federal Government. It is going to come from investors, individuals, who are ready to do private sector infrastructure, obviously states and federal governments as the case may be and international organisations who have shown interests to help.
    “What is more important is not the number but the conceptualisation of the process. It is a fact that governors will have to come together from the region to begin to look at cross-state investments whether there will be railways, whether there will be power facilities, whether there will be specialist hospitals or whatever.
    “But right now there is low investment in the region and that is not helping the region. So, we are going to be pulling in NNPC and groups like that and ensure that we look at cross border investments in the region.”
    The minister said the government was looking into the Amnesty Programme ahead of its planned wind-up next year.
    According to him, the issue with the programme was that people have taken it to be “a social collection point… We are going to be looking at issues like coastal control and Niger Delta subsidiary policing and para military types of organisations.”
    Going forward
    The government will focus on creating stability, incentive schemes- jobs, investments, contracting opportunities for the zone. It will use marginal field allocations to state governments and indigenes to help reduce tension and get buy-in. The minister pointed out that to do this certainly requires creativity, innovation, technology and robust partnership amongst various stakeholders.
    Government, according to him, will “set up a robust security apparatus involving oil companies, communities and security apparatus to prevent, track and isolate criminal elements in Niger Delta region and enforce peace for development.”
    The peace that government envisages from restructuring of everything about the administration of the region to the benefit of the people is definitely expected to provide an enabling environment for accelerated oil and gas production to thrive.
    Kachikwu, who Buhari has challenged to stimulate the economy with oil, has started thinking outside the box on roadmap to “provide a workable plan that would ensure that adequate infrastructure is put in place to ramp up crude oil production to a target of about 2.8 million barrel per day, while contributing positively in the area of gas to power by boosting gas production to 10 bscfd by 2019 respectively.
    “Among other plans for the region as far as business stimulation is concerned, is government’s plan to increase income streams to support infrastructural development, economic diversification, and agriculture.
    “The focus will be to increase income streams through raising bulk funds for the Federal Government through successful leveraging of some of our assets.”
    Kachikwu also spoke of a plan by the government to revive the business environment by raising investments through positive policy mixes and opening of all sectors to greater private sector participation and funding.
    In the first instance, the minister said the government has a target to raise $5 billion within one year and $15 – $20 billion in the mid-term (2 – 3 years).
    According to him, the new policy would cut contract approval time from two/three years to six months.
    “The government is also looking into the reduction of the stranglehold on oil sector by the government to cut down over supervision,” the minister said.
    In its plan for gas revolution, the government has opted for a revolution through new infrastructure and gas terms that would encourage the roll out of a national blueprint for backbone gas pipeline and processing infrastructure that will enable flexibility in supply delivery and provide a viable source of income for the country.
    Another essential aspect of the roadmap was to upgrade the nation’s refineries and increase local production capacity with an objective to reduce importation of petroleum products by 60 per cent in 2018 and for the country to become a net exporter of petroleum products and value added petrochemicals by 2019.
    The minister explained that the objective of government “is to improve our domestic capacity for local petroleum products production. This will entail the injection of private sector investments and expertise in revamping the existing refineries and implementation of modular refineries in the oil producing region.”
    On the target, he said that the sector is poised to achieve 100 per cent of local refining capacity by 2020 and reduce importation by 60 per cent by the end of 2018.
    Noting that his ministry would be refurbishing all refineries in two years with private capital, Kachikwu stressed that the deal will license specialty based refineries, modular refineries and co-located refineries.
    Kachikwu explaind that the abundant gas resources will be harnessed to generate wealth and save the environment by converting gas flares to power.
    The focus of this initiative will include the promotion of investor-led gas infrastructure development to ease the government the burden of funding.
    He said: “There will also be domestic gas utilisation for power and households will also be promoted to support threefold increase in the nation’s power generation capacity by 2019. The sector will open up commercial gas flare opportunities and drive CNG, LNG and LPG programmes through incentives.”
    On stakeholder management and international coordination, the government has a plan to deploy a potent communication strategy, build and maintain robust relationships with stakeholders (within and outside the petroleum producing community).
    The oil and gas industry has been battling with the challenges of bringing new policies and laws to bear in the sector since almost a decade ago that it started the Oil and Gas Industry Implementation Committee otherwise known as (OGIC) that was headed by Dr. Emmanuel Egbogah.
    However, the Petroleum Resources ministry said that it was reviewing old and moribund policies, gazette for new policies and entrenching robust fiscal instruments and regulations with key attention given to the passage of the Petroleum Industry Reform Bill.
    On the passage of the Petroleum Industry Bill (PIB), Kachikwu praised the National Assembly for their support and called for cooperation towards the speedy passage of all legislation required to deliver on the objectives of the roadmap.
    He said: “We strongly desire to remedy challenges in the Nigerian Oil and Gas industry through robust policies and laws that drive efficiency, encourage investment and improve local participation in the sector.
    “This aspiration is embedded in the new Petroleum Industry Reform Bill which contains the most fundamental legal requirements that will apply to the entire petroleum industry in Nigeria.”
    The policy planks of the new roadmap are based on the following specifics:
    •Use policy and regulations to aggressively position the industry to a quantum leap in all parameters – production volumes, costs, earnings etc.
    •Gazette the Nigeria Oil Policy
    •Gazette the Nigeria Gas Policy and Gas Terms
    •Approve Executive version of the Petroleum Industry Reform Bill after Federal Executive Council and submit to the National Assembly.
    On transparency and efficiency, the minister acquiesced to the fact that there has been a lot of “trust-deficit” in the sector and that has informed the ministry to make it one of the pillars of roadmap.
    The focus includes:
    •Install transparent, fast and efficient processes in all oil and gas contracts
    •Provide investors and government with fiscal clarity and the balance of objectives between risk and reward
    •Joint accounting for oil producing companies to ensure transparency in funding and expenditures
    •Target a 30 per cent cost savings on transparency
    •Institutionalise performance management in public agencies and private companies.
    The President said it would require creativity, innovation, technology and robust partnership amongst various stakeholders for the sector to remain the fulcrum of the economy.
    He sought the need to instill a new culture of transparency and efficiency in the industry, streamline operations along best practices by championing and implementing strategic reforms at every layer of the industry.
    Buhari said: “This will help us improve oil and gas production, explore our frontier basins, improve our local refining capacity and above all build sustainable partnerships with the oil producing communities.
    “If we are able to plug the leakages, and tighten loose systems that characterised this industry in the days of high oil prices, we are convinced that we can do even more with the little that we are getting at the moment than we did even in the time of plenty.
    “As you are aware, recent developments in the Niger Delta have temporarily limited our oil and gas production and supplies. However, let me reaffirm that, whatever challenges we are currently facing in the region, our resolve and capability to work with all stakeholders to restore normalcy will guarantee success.”
    As ambitious as the “7 Big Wins,” roadmap look, its success, according to stakeholders and observers, will depend on government’s will power to work its talk to create the enabling environment for the much-needed peace in the Niger Delta to attract fresh investors.

  • Navy destroys militant camps, arrests suspects in Bayelsa

    Navy destroys militant camps, arrests suspects in Bayelsa

    The Nigerian Navy has dismantled some active militant camps and arrested some suspected militants and oil thieves in Bayelsa State.

    The destruction of active militant and illegal refining camps in the creeks of the state were part of many operations in the Exercise Eagle Eye (EEE) carried out in the Niger Delta region by the Navy between Thursday and Saturday.

    A team of senior naval officers sent by the Chief of Naval Staff including Director Doctrine, Naval Doctrine and Assessment Centre, Commodore Vincent Okeke were on ground to appraise the operational capabilities of the navy in the state.

    The operations were conducted by the Nigerian Naval Ship SOROH, Yenagoa, the Foreword Operational Base (FOB), Formoso, Brass and the navy’s special force, the Flaming Warriors, who were sent from Abuja and Lagos State.

    The forces stormed different creeks in the region destroying militant camps, illegal refineries and arresting suspected sea robbers and militants.

    In one of the operations led by the Commanding Officer, Formoso, Capt. Mayowa Olukoya, at about 2am on Friday, the forces nabbed four suspected sea robbers.

    The suspects, who were said to have terrorised traders and residents of some riverine communities in the state, were paraded at the jetty of the FOB Formoso.

    They confessed that they were behind some attacks on traders and residents of communities along the waterways.

    The suspected hoodlums, who gave their names as Messrs. Lucky Abraham, Enatimi Peter, Gift Monday and Felix Nathan, also said they were working for one militant, identified as Thomas.

    The suspects further said that they threw some of their weapons such as a pump action rifle, AK47 rifle and a radio walkie talkie into the river when they were being pursued by the navy.

    They were later apprehended at Masunkiri, some kilometres away from FOB Formoso, in Brass Local Government Area of Bayelsa.

    Explaining the exercise, the Commander, NNS Soroh, Commodore Habib Usman, described the Exercise Eagle Eye as the annual sea inspection operation by the Chief of Naval Staff, Vice Admiral Ibok Ekwe-Ibas.

    He said the exercise was aimed at enhancing maritime security in Nigerian territorial waters.

    Usman said: “The exercise is part of the Chief of Naval Staff annual event. It started on December 1. The first phase was the riverine operations involving Ondo, Delta, Bayelsa, Rivers, Akwa Ibom and Cross River states. What you have witnessed in Bayelsa is the team covering the state.

    “The objective of the exercise is to assess the operational capability of the Naval forces on ground. During the operation, a number of arrests were made, a number of militant camps have been razed and a number of illegal refineries have also been destroyed.

    “This is all part of the ongoing efforts to rid the riverine areas of the Niger Delta of all forms of illegalities so that economic activities can thrive.”

    Usman said the naval forces arrested four sea robbers when their camp was raided, adding that they (suspects) were armed with sophisticated weapons.

    He said that the suspects on sighting their troops, opened fire on them adding that the troops overpowered and arrested them.

    Usman, who led the exercise in the state said that the suspects were giving the Navy useful information to help in tracking other criminals in their camps.

    He implored the Niger Delta youths to embrace peace, seek legitimate businesses and shun all forms of illegalities.

    The CNS team also visited various Naval boat houses in Akassa, Ezetu and inspected military drills and simulation operations on counter – piracy attacks, among others.