Tag: NNPCL

  • Niger, NNPCL sign green economy, energy development agreement

    Niger, NNPCL sign green economy, energy development agreement

    The Niger State government has signed a first of its kind green economy and energy development agreement with the Nigeria National Petroleum Company Limited (NNPCL).

    This is as the state government’s green economy initiative has started investors led by NNPC Ltd today who signed a first of its kind Green Economy and Energy Development

    This is an indication that the state government green economy initiative has started attracting investors, as the partnership agreement is for the development of four unique projects.

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    The projects are as follows; 1. a greenfield hydroelectric power project, 2. mega solar parks in institutions and home solar system for 250,000 households out of the 800, 000 households in Niger State, 3. a 500 million-liter ethanol plant with associated cropping of maize/sugarcane/sweet sorghum on 100,000 hectares of land in Niger state to produce over 500,000 tons of crops to feed the ethanol plant, and 4. NNPC plans to plant 135 million trees on 100,000 hectares of land as part of its commitment to climate protection and carbon sequestration towards its 2030 net zero targets.

    The Governor of Niger state, Mohammed Umar Bago, said he is committed to planting one billion trees on one million hectares of land over the next eight years.

    This plan has already gotten the commitment of NNPCL which is the largest oil and gas company in Africa.

    Niger State hopes to partner with other global oil and gas, shipping, airlines, cement companies, and the United Nations and its agencies in achieving the one billion trees target

  • NNPCL explains FAAC claim, NEITI’s 2021 report  

    NNPCL explains FAAC claim, NEITI’s 2021 report  

    The Nigerian National Petroleum Company Limited (NNPCL) yesterday explained its position on the Nigeria Extractive Industries Transparency Initiative (NEITI) 2021 report and the allegation that it withheld contribution into the Federation Account.

    The oil giant also dismissed as “baseless” the allegation by a Non-Governmental Organisation (NGO) of monies allegedly owed to the Federation.

    NNPCL Chief Corporate Communications Officer Olufemi Soneye in a statement said: “NNPC Ltd states that the claims by the NGO were baseless, considering the fact that NEITI itself had dismissed many of the allegations in the said 2021 report, following a series of engagements with NNPC Ltd.

    “NNPC Ltd states that at the outset of President Bola Ahmed Tinubu’s administration, it was made to sell Premium Motor Spirit (PMS) imported into the country at one third of its value, a development that gave rise to an average of N400b monthly subsidy bill, which subsequently put a strain on its revenues and finances.

    “NNPC Ltd further states that, “subsidy bill accumulated to up to N3.736trillion as of May 31st 2023.”

    “With respect to gas-to-power debts, the non-payment of NNPCL’s share of upstream joint venture gas supplied to the government-owned plants had led to the accumulation of indebtedness of N174.07 billion by the Federation.

    “Similarly, the receivables due from the federation to NNPC Exploration & Production Limited (NEPL) as of 31st May 2023 amount to $712million (equivalent to N309.07 billion at N434.08/US$1) for revenues not remitted to NEPL but paid into the Federation account.

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    “While the Federation owed NNPCL the sum of N4.207trillion as net indebtedness, the Company was only indebted to the Federation in the sum of N2.852 trillion, made up mainly of outstanding Good and Valuable Consideration (GVC) in respect of government upstream divestments, royalties and Petroleum Profit taxes (PPT).

    “We would like to also use this opportunity to clarify that over the years, our relationship with NEITI has been very cordial, as seen in August 2020 when we became an EITI supporting company in 2020, joining a group of over 65 extractives companies, state-owned enterprises (SOEs), commodity traders, financial institutions and industry partners committed to observing the EITI’s supporting company expectations.

    “Indeed, aside being a signatory to several EITI’s global ethics and standards, NNPC Ltd had on the sidelines of the United Nation’s General Assembly (UNGA) in Washington DC, in September, signed up to the United Nations Global Compact on human rights, labour, environment, and anti-corruption, thereby becoming the first state-owned oil company to join the global initiative.

    “NNPC Ltd’s book remains open to all our stakeholders as we remain committed to delivering value to Nigerians with integrity and as espoused in our principles of Transparency, Accountability and Performance Excellence (TAPE), the bulwark of the Mele Kyari leadership of the company.”

  • NNPCL: Timelines for rehabilitation of refineries stand

    NNPCL: Timelines for rehabilitation of refineries stand

    The Nigerian National Petroleum Company Limited (NNPCL) yesterday gave assurance that the December and January 2024 completion dates for all the refineries undergoing rehabilitation still stand.

    Its Chief Communication Officer, Femi Soneye made this known to The Nation in a telephone chat.

    He said owing to the assurance the contractors have given NNPC, nothing has so far altered the completion dates.

    In case of any eventuality that may result in the change of the timeline, NNPCL will not hesitate to make it public, he stated.

    He promised that the state owned oil giant will soon unveil the different rehabilitation milestones.

    Soneye insisted that the timelines for the completion are still on course.

     His words: “What they (contractors) have said is that all things working well, the refineries will be working in December and January.

    “That is what has been there and that is what the contractors have said. And we are working on that timeline.

     “And as NNPC, we are going around on every milestone, we are pushing out information. So, we are working on that December/January.

    You know I am not the contractor, my own is to report.

     “The assurances we have is that December -January, the refineries will be working.

     “And nothing has happened as of now to change that, or to move it forward so we are on course.

     “If anything changes, I will defer to you that this is going to happen.

    But in terms of the timeline, the timeline is still on course.”

    It would be recalled that the Minister of State for Petroleum (Oil) Senator Heineken Lokpobiri had inspected the ongoing rehabilitations in the last few weeks.

    He told State House Correspondents in Abuja that it is NNPC that should be accountable if the timelines for completing the refineries were not met.

    Arising from the inspection tour, the Federal Government announced that the rehabilitation of the 110,000 barrels per day Kaduna Refinery and Petrochemicals Company Limited (KRPC) would be completed between October and December 2024.

    The Minister revealed that the ongoing quick-fix project would see the 43-year-old facility begin production by the end of 2024, stressing that the optimistic projection was based on the current level of work.

    In February this year, the NNPC signed a contract worth $740.6 million with South Korean firm, Daewoo E&C for the repairs of Kaduna Refinery, expected to restore the refinery to 60 per cent of its 110,000 barrels per day name plate.

     NNPC said it would be funding the contract using a combination of internally generated revenue and third party financing, explaining that the quick-fix strategy guaranteed the fastest route to re-streaming the refinery.

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    The refinery was commissioned in 1980 to supply petroleum products to Northern Nigeria, the refinery with an initial capacity of 50,000 barrels per day was expanded to 100,000 barrels per day in 1983, with an additional 50,000 bpd crude train for the production of lubricating oils.

        Besides, in 1986, the capacity of the first crude train was expanded to 60,000 BPD to increase the actual crude oil refining nameplate capacity of to 110,000 bpd.

        But while assessing the progress of work on the ongoing project at the weekend, Lokpobiri, said he was confident that the refinery would be re-streamed by the end of 2024, considering the, “significant level of progress” he witnessed on the tour.

        The minister insisted on holding key players involved in the rehabilitation process of the nation’s refineries accountable and pledge government’s support in ensuring the timely delivery of the project.

        According to the minister, there was an urgent need to get the refinery back on stream for the nation’s economic prosperity and energy security, which are both paths to sustainable development.

        Earlier in his remarks, Kyari, reassured the minister that the fuel plant at the refinery would be delivered by the end of 2024.

        According to him, all hands were on the deck to bring the refinery back on stream, stressing that the contractor had since been mobilised to the site and the needed equipment for the quick-fix activities were already in place.

        The GCEO said: “We are very confident that we will get the appropriate financing to get to the end of it, and ultimately, we will start to deliver value to Nigerians again.

        “We plan the quick-fix for 60,000 barrels per day so that we can start making money from this plant and we can continue the other part of the refinery to bring it up to its full-fledged capacity.

        “This will also tally with the completion of the Build, Operate, and Transfer (BOT) on the pipeline so as to have a reliable pipeline delivery infrastructure.”

  • ‘NNPCL withholds N13.27tr from FAAC’

    ‘NNPCL withholds N13.27tr from FAAC’

    Nigerian National Petroleum Company Limited (NNPCL) sold crude oil valued at N26.496 trillion but only remitted N13.226 trillion into the federation’s account, a report by the Federation Account Allocation Committee (FAAC) has alleged.

    The report, covering January 2012 to May this year, states that NNPCL withheld N13.270 trillion which should have been paid into the federation account.

    According to the report, over the years, a total of N4.026 trillion in subsidy claims was certified by the FAAC.

    This certification was done from January 2010 to December 2015 by the Petroleum Products Pricing Regulatory Agency (PPPRA). The FAAC has since then not certified any subsidy claims.

    Attempts to get the reaction of the NNPCL to the report were not successful as text messages and email sent to the national company were not replied.

    The report indicated that NNPCL paid a dividend of N81.166 billion “as September 2023 calendarised interim dividend into the Federation Account with the CBN”. The dividend payment was made on September 18. The same day, NNPCL transferred N2.960 billion as June 2023 crude oil revenue into the federation account with the Central Bank of Nigeria (CBN), and on September 21, the company transferred another N28.489 billion as June 2023 crude oil revenue “into the federation account with the CBN”.

    On September 25, the NNPCL made another transfer of N25.407 billon “as September crude oil revenue into the federation account with CBN”. This transfer nullified an earlier transfer of N58.036 billion, which the apex bank was earlier mandated to transfer into the federation account.

    In August, the NNPCL made a “funds transfer” of $158.17 million to the federation account with CBN. The nature of the fund or what it was meant for was not disclosed by the NNPCL in its letter to the CBN.

    The report also detailed the balances in the federation revenue account domiciled with the CBN.

    The federation revenue account is where FAAC saves difference between total revenue realised for a particular month and what is shared at that same month’s FAAC meeting.

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    The FAAC has been saving into the account shortly after President Bola Tinubu announced the stoppage of petroleum subsidy payments on May 29.

    As at the weekend, the balances for both domestic oil and non-oil sectors stood at N1.56 trillion, underlining the determination of the government to save what would have been paid to oil marketers as subsidy.

    A breakdown showed that in August, the revenue accounts had balance of N830.73 billion and in September, the balance was N725.49 billion.

    The federation revenue accounts consist of various income sources. They are: non-oil revenue, oil revenue, Value Added Tax (VAT) and Electronic Money Transfer Levy (EMTL).

    “This diversification in revenue streams demonstrates the government’s commitment to mitigating reliance on a single sector and fostering a resilient and sustainable economy,” the statement said.

    A remarkable strides has been recorded by the Federal Government in the expansion of its revenue base by exploring non-oil sectors such as agriculture, manufacturing, telecommunications, and services.

    “This shift towards a more diversified revenue structure has bolstered the country’s economic resilience,” the report said.

    Savings from the stoppage of petroleum subsidy payments has contributed to the federation revenue accounts, government’s strategic management of the oil sector and its adherence to prudent economic policies towards ensuring a stable and steady flow of revenue for FAAC.

    VAT has also been identified as a reliable source of income for the federation revenue accounts, a development that will enabled the tiers of government to finance crucial developmental projects and address pressing national priorities.

    Another important component of the federation revenue accounts is the Electronic Money Transfer Levy (EMTL).

    The EMTL has proven to be efficient and transparent.

    By imposing a levy on electronic money transfers, the government has tapped into the growing digital payment ecosystem, benefitting from the increasing popularity of cashless transactions in the country.

  • Senate to summon NNPCL’s GMD, Kyari, over 60% fund for frontier acreages

    Senate to summon NNPCL’s GMD, Kyari, over 60% fund for frontier acreages

    The Senate on Friday vowed to summon the Group Chief Executive Officer, of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, over the lack of funds to explore and develop new frontier acreages.

    The Chairman, Senate Committee on Gas, Senator Jarigbe  Agom Jarigbe, gave this hint while briefing the press after a closed-door session with the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, and his management team in Abuja.

    Recall that the Petroleum Industry Act, 2021 introduced the Frontier Exploration Fund to support exploration and development in Nigeria’s frontier acreages.

    The areas include regions like Anambra, Dahomey, Bida, Sokoto, Chad, and Benue where hydrocarbon exploration is yet to occur or remains undeveloped.

    The PIA further provides that the Fund, constituting 30% of NNPCL’s “profit oil and profit gas” from various contracts, will be used to finance exploration and development activities in the frontier acreages.

    Jarigbe said, “We received a briefing from the CEO of NUPRC and his team on the activities of the agency.

    “Section 9 subsections 4 and 5 of the PIA provides that the NUPRC should have a Frontier Acreages escrow account for the exploration and development of frontier acreages and that fund is subject to the approval of the National Assembly.

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    “Also, section 22 subsection 1 of the Petroleum Industrial Act also provides that the National Assembly oversights the budget and expenditure of the NUPRC.

    “So, we had to interact with the commission on those issues and we discovered that there is no fund raised from 30 percent oil profit and 30 percent gas profit as provided for in Section 9 subsection 4 of the PIA.

    “So, we also intend to engage with the NNPCL on that. We don’t know the budget because we weren’t given any figure. We will get details on that and get back.”

    The lawmakers during the session noted that the issue of gas in the economy was becoming very important like a resource that can sustain a nation.

    They further insisted that scientifically, the world is gravitating towards gas.

    Earlier, the CEO of NUPRC, Komolafe, told the Senate panel that “Gas is very crucial in the revenue generation of our country, just like oil, it is equally very critical.

    “Aside from the fact that gas has been recognised as a transition fuel and for us in the commission, we focus on rapping up our gas production.”

    Kimolafe added that Nigeria has “37 barrels of crude oil as it relates to gas, reserves number of 208 tcl of gas that makes us the largest gas reserve in Africa and the ninth globally.”

  • Fire outbreak at Warri Refinery won’t affect rehabilitation delivery – NNPCL

    Fire outbreak at Warri Refinery won’t affect rehabilitation delivery – NNPCL

    The Nigeria n National Petroleum Company Limited (NNPCL) has assured the fire which broke out at the Warri Refinery and Petrochemical Company (WRPC), will not affect the delivery timing of rehabilitation works at the facility.

    Management of the NNPCL disclosed this in a statement posted on its official X handle on Friday evening.

    Describing the fire as “minor,” the company said it was put out by its safety officers about 30 minutes after it occurred.

    The statement reads: “This afternoon, at about 15:02hrs, there was a minor fire incident at the cooling tower of Warri Refinery and Petrochemical Company Limited (WRPC).

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    “The fire which occurred as a result of ongoing welding activity at the top of the cooling tower will not affect the refinery rehabilitation project delivery schedule.

    “NNPC Limited safety officers at the Refinery acted immediately and put out the fire at about 15:30hrs; normalcy has since been restored.

    “NNPC Limited will continue to adhere to the best safety standards in all its business operations.”

  • NNPCL: Avoid panic buying

    NNPCL: Avoid panic buying

    The Nigerian National Petroleum Company (NNPC) Limited yesterday advised motorists to avoid panic buying of Premium Motor Spirit (PMS), petrol, assuring that it has stock that can cater to all for at least 30 days.

    The appeal came on the heels of the reappearance of queues at some filling station in Lagos state, a development which the oil firm blamed on “reduced Depot loadout in Apapa, Lagos” over a few days.

    A statement by the NNPCL Retail Management assured that the situation has since been addressed and normalcy will return soon as distribution will normalise over the next couple of days.

    “We assure all Nigerians that there is ample supply with sufficiency of at least 30 days. Motorists are advised to desist from panic buying as distribution will normalise over the next couple of days,” NNPC Retail said.

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    Although the oil giant did not disclose the cause of the reduced loadout, informed sourced in the industry said it is not unconnected with the demand pressure on NNPCL since it now has to cater to more marketers.

    “Most marketers can no longer afford to import the product presently owing to the high cost of the dollar against the naira. So they all depend on the NNPCL for supply and this is exerting pressure on the oil firm. Remember that the NNPCL has its own extensive retail outlets to cater to first before considering others,” Samuel Ogunbiyi, an independent oil marketer in Akute, Ogun state, explained.

    It will be recalled that fuel scarcity resurfaced last weekend in Lagos, and other parts of the country as most of the filling stations in the metropolis have shuts their gates due to non availability of  petrol.  

  • NNPCL gets new image maker

    NNPCL gets new image maker

    The Nigerian National Petroleum Company Ltd (NNPCL) has announced the appointment of Olufemi Oladapo Soneye as its Chief Corporate Communications Officer.

      In a statement yesterday, the oil giant said Soneye replaces Mr. Garba Deen Muhammad, who was forced to resign following the recent shake-up that affected over 90 top management staff members of the NNPCL who were forced to involuntarily resign with less than 15 months to their statutory retirement last month.

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    The statement described Soneye as “a seasoned journalist with full-time and freelance experiences at some of the world’s most respected publications in Nigeria, Australia, and the United States.”

  • NNPCL appoints new spokesman

    NNPCL appoints new spokesman

    The Nigerian National Petroleum Company (NNPCL) has announced appointment of Olufemi Oladapo Soneye as its Chief Corporate Communications Officer.

    This followed the retirement of its former spokesman, Malam Garba Deen – Muhammad, with over 70 management staff on May 18, 2023.

    In a statement the NNPCL, described Soneye as a seasoned journalist who has practised in Nigeria, Australia and the United States.

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    It said: “We are delighted to announce the appointment of Olufemi Oladapo Soneye as our Chief Corporate Communications Officer.

    “Mr. Soneye, a seasoned journalist with full-time and freelance experiences at some of the world’s most respected publications in Nigeria, Australia, and the United States of America, will lead our Corporate Communications team and drive our brand penetration, strategic communications initiatives, and stakeholder management.

    “He is a member of reputable bodies, including the Nigerian Union of Journalists, National Association of Black Journalists, Society of Professional Journalists, and the Guild of Corporate Online Media Publishers.

    “Mr. Soneye is the former President of the Nigerian Media Practitioners, Washington, D.C.
    “We look forward to his valuable contributions to our Company.”

  • Pipeline protection contract renewal: Southsouth groups hail NNPCL

    Pipeline protection contract renewal: Southsouth groups hail NNPCL

    Southsouth stakeholders yesterday hailed the Nigerian National Petroleum Company Limited (NNPCL) for renewing the contract awarded to Tantita Security Services Nigeria Limited (TSSNL) for pipelines protection in the Niger Delta.

    The stakeholders–  Itsekiri Leaders of Thought (ILoT), Ijaw Youth Council (IYC)  and Civil Society Organisations (CSO) in Akwa Ibom State— said they had no doubts that the deal was “renewed and expanded” because  of the positive results achieved by TSSNL

    The commendation came just as the founder of the security firm, Government Ekpemupolo (aka Tomopolo), and hundreds of Egbesu worshippers conducted sacred rites and celebrated the renewal at Gbaraun-Egbesu Temple in Oporoza,   Warri Southwest Local Government Area of Delta State.

    Four leaders of ex-Niger Delta agitators had at the weekend pledged to unite against oil theft in the oil-rich region. They were quoted as saying that the best way to end economic sabotage in the Niger Delta was for the NNPCL to decentralise pipeline protection contracts.

    The former agitators’ leaders are Mujaheedeen Dokubo-Asari, Tom Ateke, Ajube Bibopiri and Victor Ebukabowei.

    Their  position was backed yesterday by the Ikwerre Peoples Congress (IPC), which said the NNPCL had by its action unwittingly renewed conflict in the Niger Delta.

    The contract to TSSNL was first awarded in August 2022 at  N48 billion but was expanded and renewed for three years recently by the NNPCL.

    ILoT Secretary  Amorighoye Mene, who welcomed the fresh deal stated that since the aim was being achieved, the expanded renewal to cover offshore was justified.

    Mene said: “The report reaching us is that oil production has increased to 1.7 million barrels per day, which is very commendable. On that note, if the purpose of the contract is being achieved, why should anyone want it reviewed or stopped?

    He argued that decentralisation of the contract would lead to abuse. 

    “Rather, I will ask that Tompolo and the beneficiaries of the contract be a little bit more inclusive, by carrying others along. If you loosen the control so much, it might be out of control and difficult to manage,”  the ILoT secretary added.

    IYC, which commended President Bola Tinubu and NNPCL for the development, said it was impressed by Tantita’s feat.

    Its  Spokesman, Princewill Binebai, said: “We appreciate President Tinubu for listening to the voices of the IYC and other critical stakeholders in the Niger Delta region.

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    “For us as critical stakeholders in the region, the IYC will always champion the call for resource control. Every Nigerian has seen how Tantita Security Services Nigeria Limited has worked tirelessly in safeguarding pipelines in the region, causing improved oil production in the country, within the last year.

    “Those from outside the Niger Delta region protesting and talking about oil pipelines’ surveillance and maintenance contract to desist from such unpatriotic act, as we see such act as an insult to the Niger Delta people. They should allow people that host the oil and gas in this country to breathe.”

    Chairman of the CSOs in Akwa Ibom State, Harry Udoh, said TSSNL  had done a good job and deserved the contract renewal. 

    Udoh faulted the call for decentralisation of the contract, saying that the government should be careful so as not to reward lawlessness.

    His words: “Tantita has done a good job of the initial contact awarded to it in August 2022. Our pipelines are secure under him and so it deserves the three-year expanded renewal.

    “The contract is not a compensation for the Niger Delta agitation, but a genuine initiative to protect the nation’s oil facilities.

    “We are opposed to the government decentralising the contract to other ex-agitators because it is not necessary. The government should not be seen to be rewarding brigandage, militants and perpetrators of violence.

    “Rather the government should strengthen and fund the amnesty programme and make it more meaningful for the ex-agitators.”

    Also, Ani Esin,  special adviser to Governor Bassey Otu on Niger Delta Affairs,   said: “In as much as I am a believer in unity, I support the contract being given to someone who has the capacity and integrity to deliver.”

    Esin advised that the deal  should include terms that would “sublet  parts of it  to stakeholders of the communities  the pipelines run through.”

    Publicity Secretary of the All Progressives Congress (APC) in Edo State, Peter Uwadia-Igbinigie, also described the renewal of the contract as a step in the right direction.

    Uwadia-Igbinigie hailed  Tinubu for the initiative, saying it would go a long way to move the Niger Delta and Nigeria forward.

    However the  IPC differed, warning that the centralisation of the pipelines’ surveillance contract is a time bomb.

    It wondered why the NNPCL  re-awarded the whole contract to a single company in spite of calls for the inclusion of firms owned by people whose areas host pipelines.

    IPC  Chairman  Livingstone Wechie accused the NNPCL of insensitivity and indiscretion.

    Wechie said: “The NNPCL appears to have exhibited some level of insensitivity and indiscretion on this award, knowing that the Niger Delta region is multi-ethnic and diversified.

    “As IPC worldwide, we have no prejudice whatsoever against Chief Government Ekpemupolo, aka Tompolo, because he is as of right a stakeholder in the Niger Delta, who has paid his dues within his own clime. Nobody is asking for the termination of Tompolo’s contract, and that should be on record.

    “However, it must be made very clear that the NNPCL presumed oversight whether advertently or inadvertently in centralising this pipelines surveillance contract within its current status is a deliberate promotion of avoidable conflict and in bad faith.

    “The question is what is the interest of the NNPCL in turning deaf ears to this demand for a review towards the decentralisation of the pipelines’ surveillance contract to domesticate it within the competent locals or stakeholders, based on local government areas and communities or ethnic blocks arrangements?”

    The IPC warned that NNPCL had by its action renewed a conflict capable of threatening the existing peace in the Niger Delta.

    He said: “It is my view as a stakeholder that a three-year expanded renewal by the NNPCL of the pipeline surveillance contract awarded is a renewal of a brewing conflict, which is avoidable if the issues are not resolved.

    “There are strong suspicions that a further insistence by the NNPCL to sustain this order is aimed at protecting some vested interests. Anybody who genuinely means well for the Niger Delta will listen to this demand.

    “The Niger Delta struggle and the ongoing insecurity do not affect only one tribe, but everyone, and so the ostensible ethnic preference and entitlement is something that must be wisely corrected because the capacity for the security of the pipelines is not exclusive.”

    The IPC chairman urged the NNPCL to still do the needful in order to ensure peace in the Niger Delta.