Nation
Nigeria Mismanaged Asia Oil Deal – Reports
Nigeria has mismanaged relations with Asian oil firms thereby failing to capitalise on deals which could have helped it develop its infrastructure, and leaving $20 billion of investment at risk, think tank Chatham House said on Monday.
Former president Olusegun Obasanyo sought partners in China, India, South Korea and elsewhere to buy oil blocks before leaving office in 2007 in return for billions of dollars of infrastructure and downstream investment.
But neither has there been a single barrel of oil produced by Asian national oil companies in Nigeria, nor has any downstream commitment been started, leaving the Nigerian economy with no tangible benefit, the London-based organisation said.
“President Obasanjo’s stated grand design to achieve a ‘development dividend’ through the oil-for-infrastructure scheme with Asian national oil companies has fallen apart,” it said.
“With it went the impact that it might have made on the Nigerian landscape,” Chatham House said in a 60-page report.
Five decades of oil extraction in Africa’s most populous country has enriched a small elite, but the vast majority of he country’s estimated 140 million people still live on two dollars a day or less.
Chatham House blamed the lack of progress on political interference in what should have been purely business decisions.
“The scale of the corruption, mismanagement and non-execution of projects in the Obasanjo years has sent shock waves through Nigeria,” the report said.
“His intentions were good but officials failed to spell out the full implications of the scheme. And many used the scheme for private profit. It might have been a good idea on paper but the spirit was breached in the implementation.”
The administration of President Umaru Yar’Adua, who took office in May 2007, has been reviewing deals struck under Obasanjo, cancelling the sale of oil retineries and reviewing oil licensing rounds.
Yar’Adua in January revoked two oil exploration licences awarded to Korea National Oil Corp (KNOC), saying the Korean firm had failed to pay the investment pledged.
KNOC, which says it met its obligations, has taken the case to court and the outcome is being closely watched by an industry concerned that rights awarded by one Nigerian government can easily be overturned by the next.
Chatham House said, following the cancellation of a Korean gas pipeline project and a contract with China to build a railway from the commercial hub Lagos in the south to the city of Kano in the North, $20 billion of investment promised by Asian national oil companies in 2005/06 was at risk.
Chatham House contrasted the Nigerian experience with that of Angola, where it said President Jose Eduardo Dos Santos’ almost 30-year tenure had boistered a stable central government and helped create a functional national oil company, Sonangol.
That stability had helped Angola emerged as the second largest supplier of oil to China last year and helped the African country secure at least $13 billion in oil-backed loans from Beijing to help finance essential post-war reconstruction.
Nation
HYPREP Marks 15 Years Of UNEP Report, Highlights Major Cleanup Milestones
The Hydrocarbon Pollution Remediation Project (HYPREP) has commemorated the 15th anniversary of the release of the United Nations Environment Programme (UNEP) Environmental Assessment Report on Ogoniland, reaffirming its commitment to restoring the environment and improving the livelihoods of affected communities.
In a statement signed by the Project Coordinator, Prof Nenibarini Zabbey, to commemorate the anniversary, HYPREP described the anniversary as a significant milestone in Nigeria’s environmental restoration efforts, noting that the project has made remarkable progress in implementing the recommendations of the landmark UNEP report released on August 4, 2011.
The UNEP report had revealed extensive oil pollution across Ogoniland, severe environmental degradation, and serious public health risks resulting from decades of petroleum operations. It also recommended an initial $1 billion fund to commence the cleanup of the affected communities.
According to HYPREP, the Federal Government formally launched the Ogoni clean-up in 2016, while the Project Coordination Office was established in 2017 to drive the implementation of UNEP’s recommendations.
Zabbey said the current administration has continued to prioritise the project under the Renewed Hope Agenda.
Providing an update on the cleanup, the Project Coordinator disclosed that 30 of the 65 contaminated sites identified by UNEP have been fully remediated, while work is ongoing at several medium- and high-risk locations. It also stated that more than 1.5 million mangrove seedlings have been planted as part of what it described as the world’s largest restoration of oil-degraded mangroves, with over 1,000 hectares of shoreline already rehabilitated.
Zabbey further revealed that 49 Ogoni communities have been connected to potable water schemes through multiple water projects and booster stations aimed at providing safe drinking water across the region.
In the health sector, he said the 100-bed Ogoni Specialist Hospital in Kpite and the 43-bed Cottage Hospital in Buan are nearing completion, adding that several existing health facilities have been upgraded with modern medical equipment, while five ambulances have been donated to improve emergency healthcare services. The Project Coordinator also disclosed that a three-year human health biomonitoring study is being conducted in collaboration with the World Health Organization’s International Agency for Research on Cancer (IARC).
On economic empowerment, Zabbey stated that the Project has created more than 8,000 direct jobs and trained thousands of Ogoni youths and women in various vocational and technical skills, including software development, cybersecurity, aviation, commercial diving, seafaring, mechatronics, and creative arts. The project also reported awarding scholarships to more than 1,000 students, providing grants to small businesses, and supporting persons living with special needs through skills acquisition programmes.
The statement further highlighted ongoing legacy projects, including the Ogoni Power Project and the Centre of Excellence for Environmental Restoration, which it said is about 96 per cent complete. HYPREP also welcomed the recent designation of the Ogoni Wetland as a Ramsar Site of International Importance and pledged to continue promoting biodiversity conservation and sustainable management of the ecosystem.
Marking the anniversary, Zabbey said the progress achieved over the past 15 years demonstrates the collective commitment of government, development partners, stakeholders, and local communities to restoring Ogoniland. He called for renewed collaboration to sustain the cleanup effort, promote environmental sustainability, and support the long-term development of the region. 3
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