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Tag: Stakeholders

  • Our fear on PIGB, by stakeholders

    Few months after the National Assembly unbundled the Petroleum Industry Bill (PIB) and passed one of its six components – the Petroleum Industry Governance Bill (PIGB) – the law chambers are being accused of putting the cart before the horse.  Stakeholders in the oil and gas industry say the Petroleum Industry Host Community Bill and the Petroleum Industry Fiscal Bill should have preceded the PIGB. The two bills, they argue would guarantee peace and stimulate investment. EMEKA UGWUANYI and AMBROSE NNAJI report.

    WILL the passage of the Petroleum Industry Governance Bill (PIGB) attract the expected investment in the oil and gas sector? Some players feel the passage of the PIGB by the Senate was like putting the cart before the horse. To them, the lawmakers should have considered the Host Community Bill and the Petroleum Industry Fiscal Bill. The two bills, according to them, would guarantee peace in the Niger Delta incentivise International Oil Companies (IOCs) and indigenous operators to invest.

    One of the players in the industry and a Managing Partner, J.O Adidi and Co., Mr. John Adidi, said that massive and unfettered investments by IOCs and local operators would reposition the industry and deliver immense benefits to all stakeholders.

    According to Adidi, the most critical part of the reform in the oil and gas industry, which started about 17 years ago, should be a robust fiscal framework that deals with taxation and incentives to stimulate investors’ interest.

    He said: “It is the tax and incentives that will actually bring in investors. If the fiscal framework is friendly, investors will put their money down, and they will get their reward for venturing into upstream activities in the industry.”

    Adidi’s position underscored his disappointment over the passage of the PIGB, which is an aspect of the Petroleum Industry Bill (PIB) by the Eighth Senate. He described the PIGB as a component of the original Petroleum Industry Bill (PIB).

    “It’s not the most critical aspect of the PIB as far as the IOCs and indigenous operators are concerned”, Adidi said, stressing the importance of investors.

    The Eighth Senate, under the leadership of Senate President Bukola Saraki and the Joint Committee on the Petroleum Industry Governance Bill (PIGB), chaired by Senator Tayo Alasoadura, passed the PIGB 2016, after PIB’s 17 year’s hiatus.

    The PIGB only deals with an aspect of the PIB – the governance and institutional framework of the petroleum industry, leaving out five other components.

    The other aspects of the PIB, which was unbundled into five different components, ostensibly for easy passage, include: Petroleum Fiscal Framework Bill; Petroleum Industry Downstream Administration Bill; Petroleum Industry Revenue Management Framework Bill and Petroleum Host Community Bill.

    Adidi and other industry experts argue that the National Assembly put the wrong foot forward by first passing the PIGB without first considering other critical aspects of the bill particularly the Petroleum Host Community Bill and the Petroleum Fiscal Framework Bill.

    Besides, they pointed out government that the Federal Government has consistently ignored the Petroleum Industry Host Community Bill that will guarantee peace and stability in the oil producing region.

    Echoing the frustrations of industry experts, Adidi said: “Now you have passed the PIGB and the other bills are nowhere to be found, what will the PIGB do on its own without being complemented by the Petroleum Fiscal Framework Bill, the Petroleum Industry Downstream Administration Bill, the Petroleum Industry Revenue Management and the Host Community Bill?”

    According to him, splitting the PIB into six components and passing an aspect that has nothing to do with fiscal and host community concerns will hurt current efforts at driving significant investments in the industry.

    But Adidi’s concern may not be without justification afterall. Since the reform in the oil and gas industry began about 17 years ago, experts claim that Nigeria has lost over $235 billion worth of investments to the non-passage of the PIB.

    It is believed that without addressing the issues around fiscal framework and host community concerns, the envisaged investment inflow may continue to elude the industry.

    “When you give out oil blocks, the host communities will not allow you to operate because their concerns have not been addressed,” an expert, who pleaded for anonymity, said.

     “We are just dancing in circles. The most important bills have not even gone anywhere in the House. The first reading in the House is just for mention. The international investors are watching and they would want to see what has been passed”, Adidi said.

    He identified taxation, royalty and incentives as the critical areas to investors, pointing out that investors do cost benefit analysis of available incentives in terms of  taxation in crude oil production and exploration.

     The Chairman, Enfrasco Energy and Infrastructure Services, Mr. Chukwuma Okolo, said the unbundling of the PIB into components and their passages in instalments will hurt investment.

     He accused the National Assembly of avoiding the real subject matter (fiscal matters and peace and stability in the Niger Delta) and settling for the least important issue (governance and institutional framework).

    Okolo reiterated that the Senate avoided the fiscal incentives, ownership of the oil blocks, renewal, peace and security in the oil producing areas. He described the avoided areas as the major factors that must be addressed to encourage IOCs to drive investment in Nigeria and not Angola or Uganda.

    He was emphatic that a robust fiscal regime and lease management bill would either encourage or discourage companies like Shell, Chevron, Mobil or even indigenous operator such as Seplat, to make additional investment in the industry.

    The Enfrasco chair also emphasised the need to deal with community related issues such as content, revenue accruing to the community and development of the communities hosting the oil assets. This, he said, would engender lasting peace, security and stability in the area.

     Okolo maintained that unless and until the government developed the oil-bearing communities, peace will continue to elude the region, and by extension, hurt investment.

    The Managing Director/Chief Executive Officer, Gacmork (Nigeria) Limited, Alex Neyin, advised the Senate to pass a bill that would be conclusive, insisting that it was wrong for the Red Chamber to have passed the governance bill and ignored the component that is expected to add value to the lives of the host communities.

    He said: “If you pass the bill without the host community part of it, then it could be classified as scam because you cannot be telling the people that you are going to compensate them and you will now turn around and talk of how much money to make out of them without thinking of what to put back to improve their lives.”

    Neyin urged the lawmakers to avert further resentment in the oil producing region, warning against the consequences of not doing the right thing.

    Mrs. Ibilola Amao of Lonadek Consulting and Local Content Advisory Services also stressed the need for the communities to be more involved in the exploration and exploitation of resources in their areas. She said there must be equity and fairness.

    Mrs. Amao, who commended the PIB, however, said there must be adequate provision that the owners of the resources are engaged more effectively. This, she said, will make them more participatory stakeholders.

     Her words: “We would like to see that the communities are more involved. The primary intent of the PIB was to commit the communities to maximising the return on investment for harnessing their natural resources so that it would create jobs and wealth for members of the communities.”

    Mrs. Amao also accused governors in the Niger Delta for not addressing the welfare and wellbeing of people in their domains.

    According to her, the state governors see the assets as avenue to enrich themselves and not to address the local community issues rather.

    She said: “The state governments should be engaging with the oil companies and the people in the communities to make sure that work goes on, and not seeking for their own personal interests.

    “We need to go back to equity and fair play if we want to move forward as a country.”

    Mrs. Amao insisted on the need for more responsible and responsive government at state levels.

    The consultant blamed destruction of pipeline facilities and unrests on the hijack of benefits accruing from the natural resources by a few people.

     She emphasised that no investor (local or foreign), would want to put his money in a volatile atmosphere.

    “We need to address the root cause and ensure that the communities are well engaged and committed to the development of their region in an equitable and fair manner”, she stated.

    Host communities kick

     

     The non-passage of the PIB has not gone down well with the host communities. For instance, some Ijaw youths under the auspices of the Ijaw Youth Council (IYC) Worldwide, said passing the PIGB version of the PIB portrayed members of the Senate as insensitive lawmakers.

    IYC spokesman Henry Iyalla said the PIGB, which failed to provide special funds for oil-producing communities, would not guarantee peace in the Niger Delta region.

    He said: “We condemn the show of insensitivity by the Nigerian Senate on the recent passage of the PIGB, which makes it clear that the only interest the government has in the region is control of her oil.”

    Iyalla insisted that the only the PIB that would ensure peace in the region and calm frayed nerves must include the Oil Communities Fund Act. Such Act, he said, would give Niger Delta indigenes a stake in the industry and provide avenues to alleviate the suffering of the people in the region.

    He was emphatic that without such funds, any governance structure put in place in the region would fail.

    “It must be stated that for oil and gas related activities to operate smoothly within the Niger Delta region, the National Assembly, saddled with the responsibility of law-making, should immediately take further steps for the quick passage of the Host Community Bill”, he said.

    The youth leader stated that the host community bill will guarantee 10 per cent of the net profit of upstream oil companies on both onshore areas and offshore shallow areas to the community.

    “Otherwise, the Niger Delta would see the passage of the PIGB as a calculated move aimed at making laws for the smooth governance of exploitation and exploration of the abundant oil reserve within the region without any consideration to host communities,” he said.

    Iyalla further stated that the singular passage of the PIGB will not deliver the full benefits of the intended reforms, except the other aspects of the PIB are legislated upon.

    He warned: “The passage of the complete PIB is the only guarantee for a smooth and conducive operational environment in the Niger Delta, as the people of the region cannot guarantee conducive operational base without the protection of their interest.”

     The PIGB as disincentive to investors

     

    Okolo, who noted that no investor would be willing to put his money, insisted that the most important aspects of the bill should be given urgent and speedy passage. Commending the idea of breaking the bill into separate parts to make its passage easier, Okolo said the Senate should have dealt with the aspects that would make impact on the industry first and not the least among them.

    According to him, the government must offer investors very attractive incentives so that rather than invest elsewhere, they would bring their money to Nigeria.

    He said: “Whatever we are already collecting from their current production, we don’t have to collect less. But then, when they make new substantial investment, they should be able to get some incentives higher than what they have now.

    “We are not charging less, but if people should invest to discover new oil, even if you charge them a lower percentage, it is still additional revenue for the government.”

     Splitting of NNPC also under scrutiny

     

     The PIGB, which split the Nigeria National Petroleum Corporation (NNPC) into three different entities, was also faulted by Okolo. He expressed doubt over government’s readiness to run the NNPC in a way that it would compete with its peers such as Petro Brass, PETRONAS or Saudi Aramco.

    The PIGB as passed by the Senate created three entities from the NNPC, including: Nigeria Petroleum Regulatory Commission (NPRC), National Petroleum Assets Management Company (NPAMC) and Nigeria Petroleum Company (NPC).

     The NPRC will serve as a regulatory entity for the entire petroleum industry (upstream, midstream and downstream), the NPAMC will serve as the counterpart and administrator of production sharing agreements and such other risk-based agreements as the government may decide to conclude.

    On the other hand, the NPC will serve as an integrated oil and gas company operating as a fully commercial entity across the value chain.

    Its activities include: joint venture operations, operation of the Nigeria Petroleum Development Company (NPDC), frontier exploration and other upstream/service activities, refineries, and petrochemicals, among others.

    Okolo said: “I don’t think we are yet politically mature to run a true international oil company that is owned by the government. You don’t make somebody competent by passing a law, without competent hands. The skills set necessary to drive the oil and gas industry does not exist within Nigeria, it does not exist in the NNPC.

    “If the government wants to run an organisation with competent hands, then it should select people purely on the basis of competence and merit. There must be consideration to quota system, ethnicity or even nationality.

     Neyin, however, recommended that the NNPC workers and other government employees be reoriented, adding that their attitudes have never made the system profitable.

    The Nation learnt that until a truce was brokered by Acting President Yemi Osinbajo’s trips to the Niger Delta, militancy led to significant amounts of shut-in production at onshore and shallow offshore fields and frequent declaration of force majeure by oil and gas companies in Nigeria.

    These and other fears earlier expressed by experts informed the stakeholders’ push for the passage of the other aspects of the PIB.

    The Deputy Chairman, House Committee on Federal Character, Petroleum Resources (Upstream), Sergius Ose Ogun, informed that the bill had gone through the second reading in both chambers.

    Ose Ogun said that an ad hoc committee was set up to look into it. According to him, both the host community and the fiscal framework bills were all in the component bill that went through the second reading in the Senate and in the House.

    He added that they are being considered all together. “The committee set up had met and hopefully before the end of the year, the bill will be passed into law,” the lawmaker assured.

  • SON Act 2015 can enhance ease of doing business, say stakeholders

    SON Act 2015 can enhance ease of doing business, say stakeholders

    •Port operators suggest joint cargo inspection by SON, other agencies

    The Ease of Doing Business policy being promoted by the Federal Government will promote commerce, economic growth, export trade and ensure efficiency in trade facilitation.

    The policy will also receive significant boost from the provisions of the Standard Organisation of Nigeria (SON) ACT 2015, which include the removal of substandard products from the market place, and prosecution of offenders.

    This was the consensus of stakeholders at a consultative meeting in Lagos, titled: “SON ACT 2015 and Ease of Doing Business.”

    SON  Director-General Mr. Osita Aboloma explained that the SON Act 2015 was meant to ensure that compliant business persons were not disadvantaged by those into manufacturing, importation or exportation of sub-standard products.

    Aboloma, who was represented by SON Director of Legal Services Mr. Umaru Kawu said the provisions of the Act would also enhance enforcement of penalties against persons dealing in products not compliant with any mandatory industrial standard.

    “The punishment ranges from fine of not less than N1 million or 15 per cent of the value of the product, to a fine of not less than N2 million or 20 per cent of the value of the product,” he said.

    The SON boss explained that where every person concerned with manufacturing, importation, exportation, sale of products do so acting on the same requirements, cost of doing business would become predictable as discipline would be brought into the system.

    “It is the same discipline that the Ease of Doing Business initiative seeks to bring into our system and where cost variables are minimised, price divergence is eliminated,” he added.

    Abaloma said the Act, among other things, has a unique provision towards ensuring that level playing field is created for manufacturers, importers, traders and exporters.

    Debunking the impression that SON is all about enforcement, the SON boss stated that the agency’s preferred mode of conflict resolution is by negotiation, mediation and reconciliation.

    To this end, SON, he said, has established a full-fledged Alternative Dispute Resolution Desk within its Customs Feedback & Collaboration Unit, noting that this strategy was also a means of easing the cost of doing business.

    Abaloma stressed that this was where the link between the SON ACT 2015 and the Ease of Doing Business in Nigeria was intertwined.

    One of the resource persons, Mr. Ubong Esof Akpan, a lawyer, said the government ease of doing business can only succeed when Nigerian business men decide to do the right thing.

    He encouraged importers to embrace the one stop portal for registration to ensure they do their businesses effortlessly without recourse to under the table dealings.

    The Trustee of Shippers’ Association, Lagos State, Mr. Odolo Nicodemus, advised SON and other relevant government agencies at ports to inspect cargoes to reduce time of doing business.

    He urged other relevant regulatory agencies to tow the line of SON to make it possible for all documentation to be done online and ensure that all operators take advantage of the single window platform to achieve the 48-hour cargo clearance target of the Federal Government.

    Nicodemus hailed SON for reminding port operators about the importance of transparency in cargo procedures, stressing that transparency would reduce the bottlenecks facing government regulatory bodies.

    Also, the National Publicity Secretary, Association of Nigerian Licensed Customs Agents (ANLCA), Mr. Kayode Farito, urged SON to look into its overlapping functions with the National Agency for Food, Drug Administration and Control (NAFDAC).

    He urged SON to put its Standard Operating Procedures (SOPs) on its website to educate Nigerians on its procedures.

    He advised that SON should be a regulatory agency instead of generating revenue for Customs and also review the number of days involved in prosecuting an offender.

  • Manufacturing: Experts canvass stakeholders’ engagement to drive growth

    For Nigeria’s Gross Domestic Product (GDP) to grow, experts and stakeholders in the manufacturing sector have called for constant engagement of the public and private sector.

    They argued that the arrangement would allow the government to  understand the needs, requirements and enablers of the manufacturing sector and, thus, provide the enabling environment for it to thrive.

    Indeed, the inability of the growing GDP to translate into steady and sustainable development over the years has been linked in part to low productivity and uncompetitive manufacturing sector.

    The Chairman of Sterling Bank, Asue Ighodalo, while speaking at the inaugural conference of the Association of Company Secretaries and Legal Advisers in the manufacturing sector (ACSLA), said a country that wanted to develop must have a GDP of about $1 trillion with at least 20 per cent contribution from the manufacturing sector.

    Worried by the nine per cent manufacturing sector’s contribution to the GDP, Ighodalo identified some of the factors that scuttled the vision envisaged in drafting the first and second national development plans to include poor implementation, bad leadership, policy flip flops, the curse of oil, corruption and a misaligned workforce.

    Speaking on the theme: “Setting a New Agenda for Sustainable Economic Growth – the Imperative of Forging a Public/Private Sector Engagement”, Ighodalo said: “The manufacturing sector’s GDP contribution of less than nine per cent is totally unacceptable.”

    He said that before manufacturers tackle government on the situation, it is important for their companies to be well governed, comply and provide the financial statements that are reliable, and then engage government.

    While admitting that the Federal Government has been doing some hard work in improving the business environment and infrastructure, Ighodalo said manufacturers must complement the Federal Government by ensuring that their companies are well run and are focused and strategic.

    He said when this is done, manufacturers will, hopefully in the next few years, begin to see remarkable improvement. “We really need to get our manufacturing sector working in all aspects as it is fundamental to our economic growth and development,” Ighodalo said, adding that there is need to encourage export and reduce bureaucracy for exporters.

    Bearing in mind that no sector can survive without effective regulations and enforcement, the Chief Executive Officer of the Nigerian Stock Exchange (NSE), Oscar Onyema, stressed the need to build a viable and legal frame work for the manufacturing sector.

    He said that it is important that the current legal and regulatory framework is reviewed to address vital areas, noting that as in-house counsel, it is pertinent to take up the challenge by undertaking an in-depth review of the current legal and regulatory framework.

    According to him, this is with a view to improving what currently entails and by pushing persistently on the doors of stakeholders that needs to implement the change.

    Onyema, who was represented by the NSE Legal Adviser/Head, Legal Department, Irene Robinson-Ayanwale, gave an analysis on how the manufacturing sector has fared in the Nigerian capital market and how to forge a workable private sector engagement in order to achieve a sustainable growth.

    Onyema said: “We must all be fully ready to act as catalyst and realise that our respective contributions towards the goal is necessary to galvanise the economic growth we all strive for.

    The benefits the exchange offers the manufacturing sector is global, diverse, nucleus and all encompassing.”

    The NSE boss noted that sustainable economic growth cannot be achieved without a firm handshake between the public and private sector, with both sectors leveraging on the financial infrastructure, technology and above all benefits that the exchange provides for the ease and efficiency of doing business in Nigeria.

  • Stakeholders commend Ijaw youth leader

    A former Special Assistant to Delta  State Commissioner  for Transports Ebi Baikefie, has said the inauguration of the new National President of Ijaw Youth Councils Mr.  Owileme Pereotubo will foster peace and unity in the Niger Delta.

    He added that Pereotubo’s inauguration by Bayelsa State Governor Seraike Dickson was well deserved, noting that the activist’s pedigree put him in vantage position.

    Baikefie said: “With his vast experience in the field of peace building and ability to mobilise people for developmental purposes, he is the best man for the position and we believe stakeholders will benefit maximally. ”

    He will not only be the spokesman for the entire region,  but also the defender of the people. The time has come to take a critical look into the politics of the oil of the region and maximise the gains nature had bestowed on us.

    He said the region had  been short changed at the expense of the original owners of the land, noting that the only result that accrued from what nature had endowed the Niger Delta was perpetual poverty.

    ” I  have confidence in the  Pereotubo led leadership because  of his ruggedness and steadfastness, he definitely will not disappoint his people. The Ijaw Youth Council (IYC) is a civil rights which had been demanding its rights in civilised ways.

    “The new President is not only competent but always committed to the cause he believes. He will also used his vast knowledge as a lawyer to explain the position of the law to his people anytime they are  undermined.”

    He said the Ijaw Youth Council comprised of Ijaw ethnic nationality, spread across Bayelsa, Edo, Delta, Ondo, Rivers, Akwa Ibom and Cross River States, stressing that his appointment was a dawn for Ijaws across the country.

  • Why sustenance of Niger Delta peace is key to economic recovery, by stakeholders

    Why sustenance of Niger Delta peace is key to economic recovery, by stakeholders

    To some experts and analysts, there is nothing in the N7.44 trillion 2017 “Budget of Economic Recovery and Growth” to inspire hope of a quick economic recovery. Rather, they argue that what will pull the country out of recession are basically developments in the oil and gas industry. They suggest how to make the relative peace in the Niger Delta permanent, reports Assistant Editor CHIKODI OKEREOCHA. 

    The fear of resurgence of militancy in the Niger Delta is the beginning of wisdom for the Federal Government, oil companies and stakeholders in the oil and gas industry.

    The relative peace in the oil-producing region has contributed to the increase in oil production to 1.8 million barrels per day (bpd). Oil output had been cut to about half a million bpd by a fresh wave of militancy by restive youths before the attainment of a ceasefire.

    With oil price yet to rebound and Brent crude standing at $48.46 per barrel as at the weekend, experts and operators in the oil and gas industry believe Nigeria might be out of recession faster than envisaged if the current 1.8 million bpd production output is sustained and pushed up further.

    But they said the Federal Government must muster the political will to sustain the prevailing peace in the Niger Delta for this to happen.

    Some of them, who spoke with The Nation, warned of the consequences of a resurgence of militancy in the Niger Delta, saying such development will hurt oil and gas operations. According to them, sustaining the oil production level was critical to the implementation of the N7.44 trillion Appropriation Act.

    The Chairman, Petroleum and Natural Gas Senior Staff Association of Nigeria and National Union of Petroleum and Natural Gas Workers (PENGASSAN & NUPENG) National Petroleum Industry Bill (PIB) Committee,  Hyginus Onuegbu, argued that the 2017 budget remained an estimate and that its revenue targets were based on mere assumptions.

    Acting President Yemi Osinbajo had last month signed the N7.44 trillion 2017 budget tagged “Budget of Economic Recovery and Growth” into law. The lawmakers had raised the figure from the initial N7.28 trillion estimate presented by President Muhammadu Buhari in December last year.

    Osinbajo said that the N7.44 trillion budget had a revenue projection of N5.08 trillion and an aggregate expenditure of N7.44 trillion; the projected fiscal deficit of N2.36 trillion is to be financed largely through borrowing.

    It also set aside N1.84 trillion for debt servicing, N177.4 billion for sinking fund, N2.97 trillion for recurrent expenditure (non-debt) and N2.177 trillion for capital expenditure.

    The Acting President said the budget would deliver positive economic growth and prosperity, as it would be implemented in line with the Economic Recovery and Growth Plan (ERGP). He said the budget was designed to bring the economy out of recession onto a path of sustainable and inclusive growth.

    But Onuegbu disagreed. As far as he is concerned, “the 2017 Budget should not be celebrated.”

    The immediate past Chairman of the Rivers State chapter of Trade Union Congress (TUC) said Nigeria will come out of recession not because of any special aspect of the 2017 budget.

    Onuegbu said: “This is a budget that was signed in the middle of the year. he charged, asking, “How can you sign a budget in the middle of the year and come round to say it will bring the country out of recession? When will capital development begin to take place?”

    Onuegbu insisted that the only viable way out of recession is for the Acting President and the Federal Government to take the peace that currently exist in the Niger Delta seriously and ensure that the promises made to the Niger Delta people are kept.

    According to him, this was necessary to avoid any disruption in oil and gas operations.

    “If there is crisis in the Niger Delta, the nation’s oil production target will not be met, and of course, its revenue target will not be met”, he warned.

    Before the truce, oil output was cut by 50 per cent the disruption of oil installations and operations by militants. It was the lowest in almost 30 years. The effects of the sharp drop were devastating. The government lost an estimated 60 per cent of its revenue to the series of attacks by militants on oil gas facilities.

    Besides, 60 per cent of her gas supply was lost to pipeline vandalism, a development which left sour taste in the mouths of investors in the power sector and by extension, electricity consumers across the country.

    The belief in some quarters is that the devastation would not have been far-reaching if Nigeria had not depended on oil for 70 per cent of its revenue and 95 per cent of her foreign exchange earnings. The reliance on oil as the mainstay of Nigeria’s economy accounted for why the crisis in the region pushed the economy into its worst recession in decades.

    It took the intervention of the Acting President to reign in the region. His diplomacy shuttle to oil-producing communities in some states in the Niger Delta where he held series of dialogue with leaders and representatives of the militants yielded positive report.

    The militants agreed to sheath their sword after securing Osinbajo’s assurances of government’s commitment towards genuine peace and development of the region. Certain promises were also made. The result was spontaneous. Disruption of oil production and destruction of oil installations and pipelines stopped, thus pushing up oil production level to 1.8 million bpd.

    But the expert’s argument is that sustaining the peace in the region must be sustained to maintain the prevailing oil production level, which they say is critical to the delivery of this year’s budget.

    “The Federal Government should understand that critical to the achievement and delivery of the 2017 Budget is the maintenance and sustenance of the peace in the Niger Delta so as to engender increase in oil & gas production that we are witnessing now”, Onuegbu told The Nation.

    A Lagos-based lawyer and public affairs analyst, Mr. Obiora Akabogu, aligned with Onuegbu’s position. Noting that Niger Delta remains Nigeria’s wealth base and the goose that lays the golden egg, he hinged the growth of the economy on the level of peace in that region.

    He urged the government to muster the political will to make necessary adjustments and concessions to ensure a lasting that region.

    Akabogu said: “There are some adjustments the government can make with executive fiat; you don’t even need constitutional amendments just to make the people of that area more comfortable.

    “People of that region are not greedy; they are easy to placate because if it were some other hostile environments they would have held the government to ransom until you meet up to 70 per cent of their demands.”

    He insisted that the government must develop the political will and strategy to develop that region and also resist pressure to mount military operation in that region.

    Akabogu said: “It is not a win-win situation militarily because of the peculiar topography of that region. Rather, dialogue and political will can do a lot of good to the Federal Government.

    “The mere fact that the budget came mid-way into the year shows you that the survival of the economy is not necessarily based on the budget; that there are other indicators and calculations.”

    Akabogu recalled that previous budgets have not done any serious miracle to the economy, but one way or the other, Nigerians have found a way to survive outside the budgets.

    He said that the budget may be ambitious important because of capital projects, the fact that it came late into the year meant that Nigerians should not expect too much.

     

    Fears of poo, shoddy implementation

    The late passage and signing of the budget into law has raised fears over possible delay in the kick-off of its implementation, and consequently, its capacity to achieve the intended outcomes.

    The Registrar/Chief Executive of the Institute of Business Development (IBD), Mr. Paul Ikele, said that beyond basing it on realistic assumptions, the budget must be judicious implemented to take country out of recession.

    He told The Nation that it was necessary to avoid the same low and shoddy implementation of last year’s budget if this year’s must succeed.

     

    Push for uninterrupted oil production heighten

    Akabogu explained that the optimism that the economy will bounce back has nothing to do with the budget’s intended outcomes, but with other extraneous calculations such as the predictions by World Bank and the International Monetary Fund (IMF).

    The World Bank recently upgraded its forecast for Nigeria’s economic growth to 1.2 per cent for 2017, citing improved oil production due to decreased militant activities.

    The bank, in its June 2017 Global Economic Prospects report, said: “Nigeria is forecast to go from recession to a 1.2 per cent growth rate in 2017, gaining speed to 2.4 per cent in 2018.”

    It noted that: “In Nigeria, militants’ attacks on oil pipelines decreased…..Oil exports are rebounding in Nigeria on the back of an uptick in oil production from fields previously damaged by militants’ attacks…”

    The IMF also raised its projections for Nigeria’s economic growth this year to 0.8 per cent. It also revised its forecast for Nigeria in 2018 to 2.3 per cent, from its previous projection of 0.7 per cent. The forecasts were revised up mainly to reflect high oil production due to security improvements in the resource-rich Niger Delta.

     

    How to sustain peace in the Niger Delta

    Onuegbu spoke of the need for the Federal Government to abide with the agreement it reached the leadership of communities in the Niger Delta for continued peace in the region.

    For instance, he said that issues around modular refineries must be resolved.

    His words: “When the Acting President came to the Niger Delta, he made a promise about modular refinery. As a matter of fact, some youths started organising themselves. In fact, there was an association of modular refiners in Nigeria. That is an issue that needs to be resolved.”

    The government had announced plans to establish modular refineries to engage youths engaging in illegal oil refining. The planned upgrade of illegal refineries in the region to modular refineries has been welcomed by the people.

     

    Suspicion

    As youths and prospective investors in modular refinery business waited anxiously for the government to come out with modalities for the take-off of the project, there were reports that the government would not allow the proliferation of such refineries across the Niger Delta.

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, explained that having such refineries scattered across the Niger Delta would worsen environmental degradation and gas flaring, which will increase the problems of the region.

    According to him, the government would commission a broad study for the development of an intelligent plan for the construction of modular refineries in the region. ,

    The minister said: “It is important to clear a misconception, especially as it has to do with modular refineries.

    “Setting up smaller modular refineries in so many places in the Niger Delta would worsen gas flaring in the region and also bring about environmental challenges. It is critical to develop an integrated approach and plan to modular refineries construction in the Niger Delta, ensure that they are properly optimized and are not scattered everywhere.”

    But Onuegbu counselled the government against reneging on its promise about modular refineries. According to him, this was necessary in order to sustain the peace in the region and starve off disruption of oil and gas operations.

    Yet, the modular refinery, which has been put on hold, was one in the long list of issues agitating the minds of Niger Delta people that have not been resolved. There is also the issue of restructuring and funding of the Niger Delta Development Commission (NDDC).

    Onuegbu regretted that the government owed a lot of money to the NDDC, which it has yet to remit. He pointed out that these are funds necessary for the development of the Niger Delta.

    The Nation learnt that restructuring and funding of NDDC was part of the 16-point demand being adopted as working document to end the Niger Delta crisis when Osinbajo led a high-powered delegation to the region early this year, beginning with Delta State.

    The 16-point demand, prepared by the people of the Niger Delta under the aegis of Pan-Niger Delta Forum (PANDEF), under the leadership of Ijaw leader and elder statesman Edwin Kiagbodo Clark, was presented to Buhari when the President received them at the State House on November 1, last year.

    On PANDEF’s shopping list are: Presidential Amnesty Programme; Law and justice issues, Effect of increased military presence in the Niger Delta, Plight of Internally Displaced Persons (IDP), Relocation of administrative and operational headquarters of International Oil Companies (IOCs), Ogoni clean-up and environmental remediation, and the Maritime University.

    Other demands include: Strengthening the Niger Delta Ministry; the Bakassi question, Fiscal Federalism, Key regional critical infrastructure; Security surveillance and protection of oil and gas infrastructure; Power supply, economic development and empowerment; and Inclusive participation in oil industry and ownership of oil blocs.

    Sources close to the preparation of the 16-point demand hava admitted that the government has made some appreciable progress in meeting some of the demands. They note that the commencement of the clean-up of Ogoni land, the revisiting of the unpaid amnesty stipends and the National Maritime University, among others, are signs that the issues agitating the minds of the people are gradually being addressed.

    But, will the government pluck up the courage and political will to holistically address these demands rather than quick fixes? Will it strive to build trust, instill confidence and give the local communities in the Niger Delta some sense of belonging?

    As answers to these questions remain a matter of conjecture, the prevailing ceasefire militancy and may not be permanent for as long as the issues remain unresolved.

    Analysts say that no stone should be left unturned to guard against the resumption of hostilities in the oil-rich region and not hurt ongoing efforts at reflating the economy and take it out of recession.

  • Stakeholders move to reverse EU ban on Nigerian produce

    Stakeholders in the agricultural sector are evolving proactive strategies aimed at improving the quality of processed goods to overcome the ban on some produce exported from the country.

    This is contained in a special survey conducted by the News Agency of Nigeria (NAN) on the ban placed on some 25 exportable produce by the European Union (EU) between 2015 and last year.

    In Abeokuta, the Chairman of the Ogun branch of All Farmers Association of Nigeria (AFAN), Mr. Segun Dasaolu, informed that farmers were engaging in effective collaborative efforts with the state government in the area of training.

    He said the effort was to acquaint the farmers with the international standards and requirements for agricultural produce.

    “The state government has begun to organise series of seminars for our members on production methods, processing and packaging ?through the Ministry of Agriculture”, Dasaolu said.

    He urged the Federal Government to step up quality control management system for agricultural produce to enhance their acceptability in the global market.

    The chairman also advocated for the promotion of organic system of farming in Nigeria to boost the nutritional value of the country’s farm products.

    He said: “With organic system, we will do away with synthetic chemicals and fertilisers which constitute the major basis for the rejection of our products at the global market.

    “Although it is expensive to practise but it will guarantee high quality for our farm produce and also enhance and create wider market for our goods at the world market.”

    Prof.  Olufemi Peters, the Executive Director of the Ilorin, Kwara State-based Nigerian Stored Products Research Institute (NSPRI), noted that the EU may have banned locally smoked fish from Nigeria because of its health hazard.

    Peters, a professor of Chemistry, said that locally smoked fish contains poly aromatic hydrocarbon which could cause cancer.

    “One of the main disadvantages of the way peasant farmers smoke their fish is the presence of what we call polyaromatic hydrocarbon in the fish’’, the don said.

    The don said the institute has designed a more environmentally-friendly smoking kiln that is free from polyaromatic hydrocarbon.

    According to Peters, the NSPRI smoking kiln is hygienic and free from any form of health hazard, adding that fish smoked by the kiln could compete with any in the world.

    He said that fish farmers could export their smoked fish to any part of the world once there is mass production of the kiln.

    However, beans farmers in Kwara called for thorough checks on chemicals used in the preservation of farm produce.

    A beans farmer, Mr Dada Olotu, said that most farmers use fake chemicals to preserve their produce, making it unsafe for consumption.

    He called on NAFDAC to check the activities of pesticide companies in order to control the influx of fake chemicals into the market.

    Also speaking, the Chairman of AFAN in the state, Mr Olawale Ajibola, said lack of basic techniques in processing farm produce was responsible for the rejection of some produce by the EU.

    He said: “One major reason those food items were rejected is because they found out after testing that the chemicals used for preservation were either too much or dangerous to health.

    “The agricultural research institutes in the country should be revived and equipped to be able to carry out necessary research and testing on food items produced in the country.”

    In Ibadan, Mr Ojedeji Joseph, the Oyo State chapter Chairman of Cocoa Farmers Association of Nigeria, said many produce fail the standards test abroad due to farmers and middlemen’s reluctance to follow strictly the processing regime.

    Citing the case of cocoa, Joseph said the steps to be taken in cocoa processing were depoding, fermentation, drying and storage, adding that a failure in any of these stages may lead to rejection.

    Joseph said many farmers were now feeling the impact of the ban on their income and were working assiduously to meet the standards through painstaking processing of their farm produce.

    He, however, lamented the dearth of the modern processing equipment for some produce, saying this may affect the quality of produce meant for export.

    In Ado-Ekiti, the state government said measures were being adopted toward ensuring that cash crops such as cocoa beans produced in the state and packaged for export were made to meet international standard.

    The state Commissioner for Agriculture and Rural Development, Mr Kehinde Odebunmi, said farmers were incurring huge losses due to poor packaging.

     

  • CIBN, stakeholders seek national integration

    CIBN, stakeholders seek national integration

    The Chartered Institute of Bankers of Nigeria (CIBN) has said national integration remains key tool for economic policy, processes and national development.

    President of the institute, Prof. Segun Ajibola, who spoke at the 2017 CIBN yearly lecture in Lagos explained that national integration and successful planning and implementation are in inseparable.

    “Indeed it will be wrong to assume that any economic policy will succeed without the awareness of a common identity among the citizens, while respecting their ethnic, cultural, religious and social affiliations. Nigeria has been estimated to have over 250 ethnic groups each with its own expectations and desires from the national government. I wish to therefore state that national integration is predicated on the mobilisation of the citizenship just as it is enhanced through appropriate economic policies,” he stated.

    Earlier, the President of the Nigeria Stock Exchange (NSE), Aigboje Aig-Imoukhuede, who is also the Chairman of the event, noted that ‘citizenship is key to national integration.

    “There is no more powerful instrument than economic policy to address the issue of integration and citizenship. When you formulate economic policy by recognising this principle, you create an environment where people are compelled to identify with,” he said.

    The guest Speaker, who is also a Professor of Economics and Director, Institute for Developmental Studies, University of Nigeria Nsukka, Osita Ogbu, said that “it is clear that nations rise and fall not because of oil or other sub-soil assets, but because they have leaders who deliberately constructed acceptance or legitimation of the nation state in the minds of its citizens as diverse as they may be.

  • Budget 2017: Our fears, hopes by stakeholders

    Budget 2017: Our fears, hopes by stakeholders

    •Govt urged to focuson implementation

    Despite signing the 2017 Appropriation Bill into law six months behind schedule, stakeholders believe the real issue is with the implementation of the Approriation Law, report SIMEON EBULU, LUCAS AJANAKU, OKWY IROEGBU-CHIKEZIE, EMEKA UGWUANYI COLLINS NWEZE and TOBA AGBOOLA.

    BARELY 24 hours after signing the 2017 Appropriation Bill into law, Nigerians yesterday expressed their reservations. They   spokes of their fears and expectations of the N7.44 trillion Budget of Economic Recovery and Growth.

    It was Appropriation Bill was on Monday signed into law at the Presidential Villa in Abuja by Acting President Yemi Osinbajo, about 25 days after it was passed by the National Assembly at a joint session of the Senate and House of Representatives.

    Not a few of the stakeholders expressed concern that an Appropriation Law that should have started running since January was signed almost halfway into the year.

    The former Executive Director, Keystone Bank Limited, Richard Obire, said the delay in signing the budget was not good for the economy, pointing out that the Federal Government has barely six months to implement the budget.

    However, he said the delay may not affect the implementation of the recurrent expenditure considering that government has been paying salaries to workers. On the other hand he said the capital expenditure remains the one that is adversely affected by the delay.

    He said: “By delaying the signing of the budget, many projects that would have been initiated and completed within the period may not be completed within the fiscal year”, adding that the delay will rub off negatively on the budget implementation.

    Noting that the N143 billion injected into the budget by the National Assembly is on the expenditure side, Obire said raising the expenditure vote would trigger an increment on the deficit side of the budget, a development he said, would require more borrowing.

    He argued that more cash would be required fund through borrowing, thus increasing the chances of government competing with the private sector in the debt market.

    Obire said the deadline for signing the budget was Monday, after a 30-day window.

    “That delay was not good at all for the economy. But now that it has been signed, the next approach will be to ensure it is well implemented for its positive impact to bear on the economy to be realised,” he said.

    He said the recurrent expenditure was estimated at N2.99 trillion, capital expenditure (N2.18 trillion) and N2.36 trillion was allocated to fiscal deficit.

    The highlight of the budget showed that the Ministry of Power, Works & Housing got the highest vote of N586.54 billion. The Transport Ministry got N256.52 billion and Education and Healt ministries were allocated N455.41 billion and N308.46 billion respectively.

    A one-time President of the Chartered Institute of Bankers of Nigeria (CIBN), Okechukwu Unegbu, said signing the budget was not as important as what the budget can do for the economy. “It is not about signing. The question is; will the budget help the economy?

    Unegbu pitched his tent with the Acting President’s position that the National Assembly lacks the power to raise the budget, but that they can cut it, warning that the executive may not implement the additional projects imported into the budget. He, however, said the budget passage and signing would reduce the level of unemployment in the country, even as he regretted the small allocation to education.

    Unegbu said: “Education should have the lion’s share because of its importance in the socio-economic development of the country. Overall, the budget signing is good news for the economy and a great start.”

    On his part, the President, Manufacturers’ Association of Nigeria (MAN), Dr. Frank Udemba Jacobs, commended the N7.44 trillion Budget and expressed the hope that the implementation would commence soon to compensate for the nearly six-month lost.

    He criticised the practice of rolling over of development plans into another year, saying the practice makes planning difficult.  Jacobs regretted that the uncertain nature of the country’s budget process has conditioned many to either plan outside the document, or take the initial figures mentioned during the budget presentation.

    “The first half of the year has gone and the signing now kick-starts financial market’s strategy that is targeted at the country’s fiscal plans. Budget is about time and resources”, he said.

    Responding to a question on whether the sectoral votes as exemplified by about 30 per cent of the budget going for capital expenditure is commendable, the MAN chief lauded the new development, hinging his commendation on the deplorable state of infrastructure, which affects business operations.

    According to him, if the implementation is carried out judiciously, there would be a significant improvement on the national basic infrastructure.

    The Director-General of the Lagos Chamber of Commerce & Industry, Mr. Muda Yusuf, welcomed the signing of the budget as a step forward.

    He told The Nation that it would put an end to the suspense and uncertainty caused by the non-passage and signing of the budget.

    According to him, the next level of expectation is its speedy and effective implementation so that the citizens can get the desired value from the budget.

    Yusuf canvassed for a review of the entire budgetary process and to set timelines for every stage of the process.

    He advised that specific time frame must be set for the presentation of the budget to the National Assembly, for the consideration of the Appropriation Bill by the National Assembly and for the assent by the President.

    The LCCI director-general suggested the enforcement of discipline of timing into the budgetary process, stressing that delivering a budget halfway into the financial year does not augur well for the overall economy.

    Yusuf said: “There is also an urgent need to define the limits of authorities of the executive and the legislature on the Appropriation Bill. A judicial pronouncement is imperative to determine the extent to which the National Assembly can make changes to the Appropriation Bill. This issue has become a recurring factor in the delay that have characterised our budgetary process.”

    To organised Labour, the delay in the assent to the 2017 Budget notwithstanding, its full implementation would have a positive effect and also take care of moving the economy out of recession.

    The Secretary-General of the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN), Mr. Issa Aremu, said urged the Ministries, Departments and Agencies (MDAs) to hit the ground running.

    Aremu said: “Although the budget is coming very late, it is better for it to be late than never. The various agencies of t government should be allowed to do their job without undue interference or hindrances. The only way the budget can make a meaningful impact is for the government to ensure its full implementation.”

    Applauding the N7.44 trillion Appropriation Act for focusing on reflating the economy through import substitution and patronage of made-in-Nigeria goods, he called for the immediate constitution of a tripartite committee by the government to agree on a new minimum wage, after which a supplementary budget should be sent to the National Assembly for its implementation.

    He said: “Our union will support President Muhammadu Buhari to realise the vision of import substitution and jobs creation. We demand that the disbursement of this huge fund should revive local industry, reopen closed factories and should not be spent on financing frivolous imports and perpetuate unemployment.”

    President of the United Labour Congress (ULC), Joe Ajearo, insisted that the  full implementation of the  budget should not be downplayed, saying that is the only way Nigerians can feel the impact of the budget.

    Reacting, former President, Association of Telecoms Companies of Nigeria (ARCON), Emmanuel Ekuwem, commended the huge capital component of the budget. He advised the Federal Government to ensure its effective implementation.

    According to him, investment on infrastructure and construction would accelerate Nigeria’s exit out of recession, create massive job opportunities and ensure a boost in the national gross domestic product (GDP).

    Dr. Ekuwem, who is also the chairman, Teledons Group, an information communication technology (ICT) firm, advised the government to lay emphasis on Nigerian content in the implementation of the budget.

    He said local content involvement in the budget must be holistic, ranging from the use of local hardware, software and expertise, warning that the failure to do this will lead to capital flight and further worsen the weakened Naira.

    The Chief Executive Officer, Pinet Infomatic, Lanre Ajayi, urged the Federal Government to follow the blue print of the National Broadband Plan (NBP) outline by the previous administration.

    According to him, there are milestones set in the yet-to-be met plan, which he noted, has been drawing the entire industry back.

    He also urged the government to encourage the growth of the local ICT ecosystem by patronising products and services from the industry.

    Ajayi, who is a former president of the Nigeria Internet Group (NIG), said the Federal Government, as the biggest spender in the economy, should, as a deliberate policy, patronise indigenous and original equipment manufacturers (OEMs) to boost job creation and the economic growth.

    Detecon International Client Partner Olusola Teniola said with every budget which is planned ahead, it’s imperative for the government to put control and monitoring procedures in place to ensure implementation of projects.

    Detecon International is a subsidiary of Deutsch Telecom Group of Germany.

    Teniola said: “If projects are successfully executed and delivered, the social dividend to the communities that need it most will be felt. Financial Year 2017 has only six months more to go and therefore expedient disbursement of funds by government is paramount at this critical time – these funds will fuel economic activity through government spending.”

    An analyst and lecturer at the Pan Atlantic University, Lagos, Dr. Austin Nweze, described signing the budget into law halfway into the year as a challenge on its own unless the government hits the ground running with the implementation.

    He noted that the delay has caused grave setback to economic activities. Companies and industrial concerns have been waiting for the budget for a long time.”

    He, however, expressed doubt over immediate implementation, as according to him, it would take at least one month to implement the budget.

    Nweze also disagreed with the Acting President’s position that the budget would take Nigeria out of recession, pointing at faulty fiscal and monetary policies as reasons. He noted that if the economic fundamentals are wrong, it would be difficult to get the economy right.

    He said: “Signing the budget in half of the year is already a setback. Although, they (government) may extend the execution to May of 2018. Even if they extend the execution of the budget to May next year, it might be difficult to achieve the anticipated objectives of the budget.

    “It’s also important to know that it would take at least one month before the execution of the budget. Do also remember that what the government has been spending illegally before the signing of the budget must be factored into the budget.

    “Also do they have the money to execute it? Sourcing for the funds to execute the budget is a challenge. Although they can borrow from institutions such as the World Bank to fund the budget, to make the budget have positive impact on the economy, the government needs to start implementation immediately, deploy money into the system and ensure that at least 85 per cent of the capital appropriation is achieved and on the appropriate projects in addition to the recurrent appropriation.

    “Also the political rhetoric that having signed the budget into law will get the country out of recession is untrue. That the budget is tied to Economic Growth and Recovery Plan  (EGRP) is only an aspiration. The nation needs more than two budgets to get out of recession in addition to putting place proper fiscal regime and monetary policies. We need to have good policies in place before we begin to make meaningful and sustainable impact on the economy.

    “Nigeria needs to have single exchange rate as against the current multiple exchange rates. Interest rate has to be brought down to boost economy. The government has to encourage domestic production, encourage growth of science and technology and focus less on oil and gas.

    “Currently, inflation is 17.4 per cent, monetary policy rate (MPR) is 14 per cent and interest rate is 25 per cent or above. The Federal Government through the Central Bank of Nigeria (CBN) is only practicing inflation targeting, which is not good enough for our economy.

    “Inflation targeting is the reason interest rate is high. The monopoly and undue control of the foreign exchange market by the government and dependence on importation doesn’t encourage growth of the economy.

    “Power accounts for 65-80 per cent of cost of production underscoring the critical position of power in economic growth. All efforts to make the power sector work seem fruitless because the fundamentals are not right. The government has to focus on making the power sector work by getting the policies and actions right.

    “The government should not focus on short term plans as currently seen because it is not helping the economy. Domestic production has to be highly encouraged to enable the merger of inflation and local production at a point. This will mark the foundation of a stable economy.

    “Currently, the fundamentals are not right. The future is science and technology and should be highly encouraged to diversify the country from dependence on oil and gas.”

     

  • Stakeholders back proposed restructuring of NNPC, DPR, PPPRA

    STAKEHOLDERS have endorsed restructuring of the Nigerian National Petroleum Corporation (NNPC), the Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA) as enshrined in the Petroleum Industry Governance Bill (PIGB).

    It will bring about a profit-driven, efficient and virile petroleum industry if it is carried out, they said.

    The stakeholders include former Country Presidents, International Association of Energy Economist (IAEE) Professors Wunmi Iledare and Adeola Akinnisiju.

    They said Senate’s pronouncement  on repositioning the three agencies to achieve growth is a good omen for the industry, adding that the decision will unlock the potentials of the industry after several failed attempts.

    They said the passage of the PIGB and the subsequent restructuring of NNPC, DPR and PPPRA will help in bringing Direct Foreign Investments (DFIs) into the sector and reduce liquidity gaps.

    Iledare said NNPC, DPR and PPPRA are not scrapped by the Senate as Nigerians are being made to believe, noting that the agencies are being restructured for better performance. He said the  Senate has implemented parts of the industry reforms by restructuring the three agencies, stressing that operators have waited patiently for the reforms.

    He said:“The conclusion in some quarters that the Senate has scrapped or outlawed NNPC, DPR, and PPPRA was wrong. The three parastatals are still much in existence even though they are going to operate under new managements and names. What Senate did was to make the agencies stronger and result-oriented.

    “Due to the restructuring, a National Oil Company (NOC) will emerge to replace the activities of the Nigerian National Petroleum Corporation (NNPC). With NOC on ground, there will be an effective regulatory control in the oil and gas sector. Just as we have the Central Bank of Nigeria (CBN) regulating and supervising activities in the banking industry. The petroleum sector will be regulated by the National Oil Company.”

    He said transformation of the industry is long overdue, noting that operators have been expecting the sector to provide growth for the economy.

    Iledare, who was formerly with the University of Port Harcourt, Rivers State, said the restructuring will help in improving regulatory and commercial activities in the industry as NOC will be saddled with the responsibilities of facilitating commercial activities in the sector.

    Akinnisiju said under the new arrangement, NOC will be in a better position to drive growth by bringing in more local and foreign investors into the sector, adding that following the restructuring of the sector, NOC and other agencies would generate revenue for the government and other stakeholders in the value chain.

    “I foresee a situation whereby NOC would be operating as a commercial entity like Shell and other multinational oil companies. It would make money and provide dividends to its shareholders and the economy would be better for it,”he said, urging the Federal Government to provide conducive environment for operators in order to facilitate the much needed growth in the nation’s oil and gas industry.

  • Stakeholders ‘ll determine my successor, says Amosun

    Stakeholders ‘ll determine my successor, says Amosun

    Ogun State Governor Ibikunle Amosun has said that stakeholders, representing major sectors in the state, would determine his successor.

    Speaking at the Ramadan Iftar with members of the national assembly, representing Ogun state and members of the House of Assembly, at the Government House, Abeokuta, Amosun promised to support any candidate from Ogun West Senatorial District, adding however that stakeholders, including traditional rulers and traders, would play key roles in picking the candidate.

    Amosun noted that no individual could do it all alone and appealed for the support of all to move the state forward.

    The governor attributed the success recorded since the inception of his administration to the cooperation of the lawmakers.

    He thanked the lawmakers for complementing the efforts of his government.

    Hon. Isiaka Ibrahim, representing Ifo/Ewekoro Federal constituency in the House of Representatives, moved the motion for a vote of confidence on the governor, seconded by Hon. Yetunde Sogbein.

    The federal and state legislators unanimously commended the Amosun administration for its lofty programmes and projects, while also pledging their unflinching support for the governor.

    They acknowledged the government for the completed and ongoing infrastructural development across the state in the last six years.