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GMoU: 9 GPH Communities Get N221.56m

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Nine communities comprising the Greater Port Harcourt Cluster Development Board under the Shell-sponsored Global Memorandum of Understanding (GMoU) have so far received and expended the total of N221.56million for the sustainable development of their areas.

The communities include Rumuogba, Woji, and Rumuodara in Obio/Akpor Local Government Area and Elekahia, Orogbum, Oro-Abali, Rumuwoji, Mgbundukwu and Oro-Ije in Port Harcourt City Local Government Area, both in Rivers State.

The nine communities, which get an annual funding mandate of N73.8million, as one of the ten active clusters in Shell’s Eastern operations, has also judiciously expended the accruing oil revenue on various human and physical development projects designed to impact positively on the people.

The Tide learnt that these projects, which include human capital and physical infrastructure development, carefully selected and directly executed by the communities, 107 post-primary and post-secondary scholarships, 63 micro-credit and 62 skills acquisition schemes, as well as bore holes in 7 communities, transformers for 9 communities, drainage for 3 communities, civic centre in 1 community and road infrastructure upgrade in 1 community.  

Speaking while commissioning the soft projects aimed at improving the human capital development effort of the communities, Shell’s Manager, Government and Community Relations, East, Fufeyi Funkakpo, said the GMoU concept, introduced in 2006 as a transparent and accountable model with clear obligations for both SPDC and host communities, was designed to eliminate the inherent weaknesses in previous social performance strategies with a view to involving communities in directly identifying, implementing and managing their own development processes.

Funkakpo stated that the GMoU strategy was Shell’s way of availing communities the opportunity to participate and benefit from the oil and gas revenues accruing from their communities, and lauded the Greater Port Harcourt Cluster Development Board, the chiefs, youths and other stakeholders in the communities for their collective efforts in actualising this dream.

The Shell manager encouraged the people to continue the good work they have been doing to enhance their livelihoods and economies, and pledged the company’s support and partnership to the sustainable development of the communities.

Rivers State Commissioner for Local Government, Chieftaincy and Community Affairs, Dr Tammy Danagogo, expressed happiness that the Shell’s GMoU process has ushered in an era of peace and order in the communities, and stressed that the climate of peace has brought with it the level of achievement so far recorded in the sustainable development effort of the government.

Represented at the celebration of development milestones by his Special Adviser, Engr Kombo Johnson, the commissioner said that without peace, the communities would not have accomplished the giant strides they were now celebrating, and charged the people to continue to build on existing atmosphere of concord, cooperation and partnership as a means of sustaining the momentum.

He noted with gladness the fact that the Greater Port Harcourt Cluster communities were one of the most peaceful in the state, and thanked them for promoting peace and security of Rivers State, emphasising that government would continue to reward peaceful communities as a way of encourage the people to participate in governance. 

Also speaking, Paramount Ruler of Rumuorianwo community, Eze S.C. Wokoma, described the GMoU strategy as the brain box for the development of the Niger Delta region, and said the religious implementation of the concept has shown that if the government, corporate bodies and the communities work in synergy and strong partnership, sustainable development of the area could be achieved.

Wokoma, who chaired the occasion, said his experience with the GMoU strategy as a community leader has proven that if Niger Delta communities embrace the concept, and position themselves on the driver’s seat for the development of their respective communities, peace would return to the region, and sustainable development would be achieved in record time.  

The royal father, therefore, admonished government at all tiers, to adopt the GMoU strategy in their development policies, as according to him, this would enable the government drive the dividends of democracy deeper into the very fabric of the grassroots, and thereby touch the lives of the people.

Earlier, Chairman, GPHCDB, Dickens Worlu, commended Shell and the GMoU team for mentoring the clusters to the level of growth and viability, and urged that the strategy be sustained for the development of host communities.

The GPHCDB chairman said the success of the board in the last three years could not have possible without the assistance of Shell and the state government, adding that the soft projects commissioned in the first phase on that day, and the physical infrastructure development projects expected to be commissioned on November 11 in the benefiting communities were an eloquent testimony of the fruit of cooperation and partnership for development. 

Worlu also expressed appreciation to the Rivers State Government, especially the Ministry of Local Government, Chieftaincy and Community Affairs for their support and sincerity of purpose, and pledged the readiness of the people of impacted communities to cooperate and work in synergy with government and other stakeholders to fast track the development process of the state. 

Dignitaries who graced the occasion are the Paramount Ruler of Elekahia community, Eze A.W. Akarolo, Paramount Ruler of Rumuodara community, Eze Ohia Chukwu, Secretary, Woji Council of Chiefs, Chief Emeka Ihunwo, Eze Ogba Iji-Nu-Ede of Rumuogba community, Eze Temple Ejekwu, Eze Kpalukwu-Ozo Orianwo, Chief F.B. Amadi, and Eze Njim Omolu of Rumu Chinwo Mati, Eze Owhonda Nyeche, among other top community leaders, women, youths as well as beneficiaries of the human capacity building programmes of the GPHCDB.

 

Nelson Chukwudi

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Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

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THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.
It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).
The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.
Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.
He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.
Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.
Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.
“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.
He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.
“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.
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NLC Faults FG’s 3trn Dept Payment To GenCos

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The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.
NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.
In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.
“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.
Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.
She feared the longstanding conflict could result in the eventual collapse of the country’s power.
According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.
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Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance  ……… Seeks PIA Review 

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The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).
President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.
Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.
The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.
In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.
He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.
Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.
He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.
Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.
“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.
He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.
“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..
According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.
“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.
Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.
“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.
Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.
“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.
According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”
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