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Royalties: Kalabari King Gives Shell Ultimatum
The chiefs and people of Kalabari kingdom in Rivers State, have vowed to resist plans by oil giant, Shell Petroleum Development Company (SPDC) to reduce royalties accruing to the area due to rising incidents of crude oil theft in the Niger Delta.
The kingdom, which comprises, Asari-Toru, Akuku-Toru and Degema local government areas, said any slash in their royalties will amount to a breach of the agreement signed with the people.
Managing Director of SPDC, Mr Mutiu Sunmonu, had in a news briefing in Port Harcourt, on March 1, 2013, said the firm may be compelled to shut down its Nembe-Creek Trunkline (NCTL), following the upsurge in crude oil theft and illegal refining activities, particularly in Cawthorne Channel and Kakrama, in Kalabariland and Awoba in Ogba/Egbema/Ndoni Local Government Area.
Sunmonu, disclosed that 60,000 barrels of crude oil were being stolen everyday, out of the company’s 150,000 barrels daily oil supply to the trunk line, while bemoaning the huge loss of revenue to the government and the devastation such illicit activities were causing to the environment.
The company, in keeping to that threat, had five days later shut down the pipeline and declared force majeure on crude supply to Bonny Export Terminal.
SPDC’s spokesman, Mr Precious Okolobo, also said recently that the company may look in the way of slashing the funds to the communities within the NCTL, if nothing was done to stop the ugly trend.
But the Amayanabo of Kalabari kingdom, Professor Theophilus J.T. Princewill, last weekend faulted the move by Shell, reminding the firm of its promise to increase the mandate annually by 10 per cent, saying the planned reduction will be collectively resisted by the people.
The monarch, who was answering questions from newsmen shortly after a special service at the African Church, Buguma City in Asari-Toru Local Government Area of the State, to mark his 11th Anniversary on the throne as Amayanabo of Kalabari Kingdom, noted that the funds were part of extant agreement between Shell and the kingdom to assist the development of the area.
King Princewill explains: “Shell keeps mentioning that they were going to shut down their trunkline. For the last six years or so, they gave us some money which we used in providing projects.
Now that they are coming to the second phase of that agreement, on the Global Memorandum of Understanding (GMoU, instead of increasing the lot (they call it mandate) that is due to us (the Kalabari people), they want to reduce it by more than half, whereas in the last five years, there was a promise to have 10 per cent increase annually.
“Instead of finding it necessary to review it upwards now that they are going to enter into a new agreement, they want to slash it down by more than a half. Of course, the Kalabaris will not agree.
”Although they said because of crude oil theft, their production in the Kalabari area dropped, but we did not believe that, that has happened. But if we go by that, there are other areas where there is no production whatsoever, but they have increased their funds allocation to them.
”So, if they want to insist on reducing what mandate they gave us, we will say no, we will not accept it. You either increase it or you don’t operate in our area,” he posited.
He further said that the Kalabari Council of Chiefs had met severally with Shell where the latter was told that whatever is in the territory belongs to the people and that the firm was only allowed to go and exploit the crude.
”If what they are doing is to make us suffer for it, we ask them (Shell) to pack up their things (facilities) and go, because we will not beg them to come and do it. If they don’t do it, there are other companies that will come in to do it. For many years now in Ogoni area, Shell is not operating, yet Ogonis have not died.
“If we stop Shell from operating in our territory, we will not die and Nigeria will not collapse and that is our position. They say they are going to close down their operation, we say not only closing down, pack your things and go. That is what we have said to them (Shell),” he said.
Prof. Princewill, however, said that if youths in the area were found culpable over allegations of crude theft, the Kalabari Council of Chiefs would intervene, but noted that crude oil and the control of the resource was essentially the business of the government.
”I and the Kalabari chiefs do not have any control over crude oil production or exploitation. The only thing we can do if our children are doing it is to talk to them, but the full control of such issue is in the hands of government,” he added
President Bola Tinubu has ordered a Federal Executive Council committee to move swiftly on measures to further reduce food prices across the country.
The Minister of State for Agriculture and Food Security, Senator Aliyu Sabi Abdullahi, disclosed this in Abuja, on Wednesday.
According to him, the directive focuses on ensuring safe passage of farm produce across transport routes to cut logistics costs.
“The President has given a matching order with a Federal Executive Council committee already handling it on how we are going to promote safe passage of agricultural foods and commodities across our various routes in the country,” Abdullahi said at a capacity-building workshop for Senate correspondents.
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Nigeria, Africa’s most populous nation, has faced worsening food insecurity since the removal of fuel subsidy, high transport costs, and insecurity on major highways disrupted the movement of goods.
Despite government interventions, food remains largely unaffordable for millions.
The minister said the plan is tied to Tinubu’s broader vision of food sovereignty—beyond availability to ensure affordability, accessibility, and nutrition on a sustainable basis.
To back this up, he revealed that government is set to roll out a Farmer Soil Health Scheme to boost productivity and a revamped cooperative reform initiative to mobilise resources and empower rural farmers.
“Mr. President has shown tremendous interest in the cooperative sector as a veritable tool for resource mobilisation, for economic activity generation, and to improve the livelihood of members,” Abdullahi added.
The event, with the theme, “Parliamentary Reporting: Issues, Challenges and Responsibilities,” also featured Senate Media Committee Chairman, Senator Yemi Adaramodu; ex-presidential aide, Senator Ita Solomon Enang; and NILDS DG, Prof. Abubakar Sulaiman.
The Federal Government has warned contractors, including foreign firms, that any breach of regulations in road projects awarded to them may lead to arrest by the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission.
The Minister of Works, David Umahi, issued the warning during an inspection of the ongoing dualisation of the East-West Road (Section IIIA) from Eleme Junction to Onne Port Junction in Rivers State.
The section is being executed by Reynolds Construction Company (Nigeria) Limited.
Responding to questions from journalists, Umahi commended the quality of work on the project but expressed displeasure over the slow pace, stressing that the December completion deadline remains sacrosanct.
On the project, he said:“The quality of the work is excellent, but the pace of work is totally unacceptable. Let me make it very clear to the contractor that this project will neither be reviewed nor varied in price or claims.
“I’m sure we have issued over 10 warning letters to them. If they fail to comply with the completion deadline of December 15, we will not extend it.”
He added that the ministry had already put measures in place to enforce compliance
“The comptroller has negative certificates to issue, and I will recover the money from any of their other projects. All those letters are on record, and when the time comes, they will be invoked. Any contractor who refuses to abide by regulations will have the EFCC and ICPC to contend with,” he said.
Umahi further disclosed that the Federal Government had directed that road projects valued below N20bn would no longer be awarded to expatriate companies, in line with its “Nigeria First” policy aimed at strengthening indigenous capacity in the construction sector.
“This is part of the Nigeria First policy of the Federal Government. Henceforth, no expatriate firm will be awarded any project valued below N20bn. Such projects must go to indigenous companies, while expatriates focus on higher-value projects requiring more technical capacity,” he said.
The minister also noted that the Federal Ministry of Works had adopted a funding prioritisation framework to sustain road projects initially financed by the Nigerian National Petroleum Company Limited under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
He stressed that President Bola Tinubu had directed that none of such projects should be abandoned, adding that priority would be given to critical economic corridors.
Umahi also decried the indiscriminate parking of heavy-duty vehicles on highways, saying it was damaging the pavements of completed sections of the road.
He said letters would be sent to state governors and the Inspector-General of Police to enforce punitive measures against defaulters.
Earlier, the Federal Controller of Works in Rivers State, Mrs Enwereama Tarilade, said RCC had completed 15km of the right carriageway and commenced work on the left carriageway, with one kilometre already laid in Continuously Reinforced Concrete Pavement.
The Rivers State Government says it will ensure the smooth and successful takeoff of the newly established Federal University of Environment and Technology (FUET), in Ogoniland.
This commitment was made yesterday by the Administrator of Rivers State, Retired Admiral Ibok-Ete Ibas (Rtd), during a courtesy visit by the university’s Governing Council and Management team at the Government House, in Port Harcourt.
The high-level delegation was led by the Pro-Chancellor and Chairman of the Council, Professor Don Baridam and the Vice-Chancellor, Professor Chinedu Mmom.
In his address, Administrator Ibas warmly congratulated the pioneer council and management on their appointments, describing their task as both a recognition of individual accomplishment and a historic call to duty.
“This is not just a recognition of your personal achievements but also a call to history to shape an institution that will have a profound impact on Rivers State, the Niger Delta, and indeed our country,” he stated.
The Administrator commended President Bola Ahmed Tinubu for the establishment of the specialized university in Ogoniland, describing the initiative as “timely and strategic.”
He emphasized that the university’s presence offers a critical opportunity to drive research, innovation, and community-focused solutions to the region’s pressing environmental and developmental challenges.
He further noted that the university’s core focus aligns perfectly with the priorities of his administration.“We consider this university not merely as another institution of higher learning but as a strategic partner in our collective effort to rebuild Rivers State under the ongoing state of emergency and beyond,” he affirmed.
Responding to specific requests presented by the delegation, Administrator Ibas assured the university of immediate support in critical areas essential for the its commencement.
These include the provision of operational vehicles, key facilities, and the completion of the access road to the campus, adding that other vital needs, such as perimeter fencing, refuse disposal, and the issuance of a Certificate of Occupancy, would be addressed within the framework of the state’s broader infrastructure and support programmes.
To ensure swift action, the Administrator directed the Secretary to the State Government (SSG) to work closely with the university’s Governing Council to prioritize the sequence of requests, particularly those tied to the commencement of academic activities in September 2025.
“Let me assure you that Rivers State Government will stand as a dependable partner to the Federal University of Environment and Technology. We see this university as part of our long-term investment in knowledge, innovation, and the future of our youths,” he emphasized.
In his remarks, the Pro-Chancellor and Chairman of the Governing Council, Professor Don Baridam, reaffirmed the university’s commitment to academic excellence, innovation, and community development.
He disclosed that the Federal Government has directed the institution to formally commence its academic session in September 2025, adding that preparations are in full swing to ensure a smooth take-off with adequate infrastructure and resources in place.
“Today’s meeting marks the beginning of a strategic partnership between the Rivers State Government and FUET, envisioned to establish the university as a premier hub for research, innovation, and sustainable development in the Niger Delta”, he said.