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PIB: Eight Years In Limbo

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President Muhammadu Buhari and Senate President Bukola Saraki

President Muhammadu Buhari and Senate President Bukola Saraki

When President
Umaru Yar’adua, of blessed memory, assumed office in 2007, the unending crisis rocking the nation’s oil sector, could be said to be at its peak.
He was welcome into office by a turmoil occasioned by mass protest over an overnight and unwarranted increase in the pump prices of petroleum products, inherited from his predecessor, ex-president Olusegun Obasanjo.
As expected of a leader who has the feelings of the people at heart, Yar’Adua, reverted the new pump price to normal, rendering the land mine on his administration impotent, and the masses, ended the protest.
But, he also had the problem of the then Niger Delta militancy (the freedom fighters as they chose to be called), confronting him. There is no gain saying the fact that the colossal destruction caused by the activities of the Niger Delta militants on the nation’s oil and gas infrastructure in the region, brought Nigeria’s economy on its knees.
Again, as expected of a peaceful and caring leader, Yar’Adua intrdocued his famous Amnesty Initiative.  Consequent upon this, the staccato sounds of the militants’ guns and the booms of their bombs stopped thereby giving way for peace.
Apparently, after giving a deep thought on the oil sector, considering the fact that it is the lifewire of the nation’s economy, Yar’Adua initiated the Petroleum Industry Bill (PIB) as a master plan towards bringing sanity in the sector.
The PIB which Yar’Adua presented to the National Assembly as Executive Bill in 2008 stirred up wide jubilation amongst natives of oil-bearing communities because it promised them 20 per cent of equity in oil production.  The bill equally promised other goodies to other stakeholders.
However, like a pregnant woman happily welcome into the labour room, eight years after, neither the voice of the child nor that of the mother has been heard as the National Assembly members are yet to agree on issues concerning the PIB. The euphoria that greeted the idea of PIB has given way to anxiety, suspicion and fear.
Is it that the PIB idea is bad and contradicts all expectations of the National Assembly?  Such that the lawmakers cannot find any useful thing in the bill? Is it that the alleged cartel that determines what happens in the Nigerian oil sector is not happy and has decided to frustrate and kill the people’s bill? What exactly is the matter with this bill which in many analysists’ views holds a lot of promises to the people?
When Nigerians waited till the end of the sixth National Assembly (2007-2011) and did not see the bill transform into an Act of the Parliament, the impression then was that, because of the high level of importance attached to the bill and the need for the law makers to do thorough work on the bill, it could not be concluded.
But when the then Senate President, David Mark was concluding activities of the 7th National Assembly in 2015 and hurriedly ‘passed through’ his basket full of bills, concerned Nigerians were disappointed that the PIB was not one of the many bills that graduated to Acts of Parliament.
A group, the Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) expressed dismay over the failure of the National Assembly to pass the bill, attributing it to politics.
Executive Director of the group, Godwin Ojo, had during a press conference in Lagos accused some of the lawmakers of falling prey to the influence of the oil multinationals  who fear that the PIB would rob them of so much unabridged fortune they have been having as far as the nation’s oil industry is concerned.
To Ojo, “some of them became the mouth piece of Shell and other oil companies that threatened to pull out of Nigeria’s oil and gas operations if the PIB was passed.
“They not only betrayed the wishes of the people but succumbed to cheap blackmail of the oil companies that the PIB would render the oil and gas industry unviable”.
It would be recalled that apart from the one submitted by President Yar’Adua, which did not attract the attention of the lawmakers, ex-President Goodluck Jonathan re-introduced the bill to the National Assembly in 2012, which could also not attract the attention of the parliament.
The National Co-ordinator, Niger Delta Youth Coalition (NDYC). Prince Emmanuel Ogba, regretted the attitude of members of the National Assembly to the bill, saying their standing on the way of such a bill shows that the interest of the people was not the main business of those up there, and urged the present  senate, led by Bukola Saraki, to make a difference.
Ogba expressed the view that giving 10 per cent of the equity to the host communities would go a long way in bringing peace both for the community and the oil multinationals.  This according to him, would provide the conducive atmosphere for better oil operation that would benefit the host, the oil companies and the government.
The youth leader blamed the Federal Government for shortchanging the oil-bearing communities by not providing social amenities as road, water, schools, health infrastructure etc.
“You see, because the oil companies are the ones the community people always see physically, they transfer  their grievances to the companies for not providing the infrastructure while  in the actual sense of it these should not be the responsibilities of the companies.
In his own reaction, the publisher of News Africa Magazine, Mr Moffat Ekoriko, described the PIB as a National disgrace in that the sixth and seventh National Assemblies could not give Nigerians any explanation as to why they were not able to pass the bill.
“If we are to believe what we got from the grapevine, two factors were responsible for trauncating the bill.  Inducement by the multinational oil companies and ethnic interest. Ethic, in the sense that most provisions of the bill were seen as being more favourable to host communities”, he said.
Ekoriko, in an interview with The Tide, said the oil multinationals were uncomfortable with the aspect of the bill which gives 10 per cent equlity to the host communities and the incentive for deep offshore.
“If we are to believe those rumours, it then calls to question the sense of patriotism of the Sixth and Seventh Assemblies”, he said.
The News Africa publisher advised President Muhammadu Buhari to invest his political capital in getting the bill passed, noting that since APC controls both Houses of the National Assembly, there is no reason why a president who is so fair as Buhari cannot wield his party into line.
Another alternative, he said, is to break up the bill so that the non-contentious aspects can pass.  He suggested that Buhari should consider leaving the 10 per cent equity to host communities and the incentives for the deep offshore operations and pass the other less contentious aspects of the bill.
“Over the years, the government has been failing the oil communities. They collect tax and always fail to provide amenities.  What the oil firms should do is to provide ‘jara’, but ‘jara’  can’t substitute the real thing”, he said stressing  that oil companies cannot translate into government of the Niger Delta such that you expect them to provide water, road, healthcare and wondered what should be the responsibilities of the government.
Ekoriko also blamed the interventionist agencies as the Niger Delta Development Commission (NDDC) for lack of clear focus on what to provide.
“While NDDC goes into skills acquisition agriculture, primary healthcare what should go to LGAs and state government, it becomes Jack-of-all-trade and master of none”, he explained.
He said what the region needs is infrastructure as rail line connecting Niger Delta, good road network to make the economy of the region to take off and challenged the Niger Delta Ministry and other relevant agencies to be focused on their statutory responsibilities.
The PIB which should serve the interest of well-meaning Nigerians and stakeholders in the oil sector is one that would fairly address their peculiar needs and fears since it is by so doing that all stakeholders would work as partners in progress.
This spirit will bring to an end the so much acrimony where communities see the oil firms as those short changing them.
The Federal Government which defined and enjoys 60 per cent equity in the joint venture, should be alive to its expected responsibilities to the host communities.
Nigeria desires a PIB that would take definite stand on the issues of gas flaring , oil spill clean-up, local or Nigerian content particularly on expatriate quota, contract awards and also bring an end to the enigma of casualisation in the  oil industry.
Those who are so worried about the ubiqiutous influence of the oil multinationals should also know that as stakeholders, the multinational oil companies would not fold their arms on an issue that affects their business interest in Nigeria.
But what one expects is that members of the National Assembly, particularly those from the Niger Delta region should stand up in the interest of Nigeria and not allow themselves to be bought over by other forces protecting their own interest since they are voted to serve their people.
If a thorough job aimed at providing an effective PIB, fair to stakeholders, is done the fear is that there might be a PIB that would be watered down such that it would lose its essence.
The initiator of PIB, Yar’Adua, was a Niger Delta friendly President, same way Goodluck Jonathan was a Northern friendly President and did more for the north.  Buhari should declare his position on PIB.

 

Chris Oluoh

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Oil & Energy

Resource Wars Are Here and Oil Is the First Casualty

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In just over a year, the world saw several instances of a choked supply of commodities indispensable for today’s economies and military capabilities.
From China’s restrictions on rare earths and critical minerals supply to the de facto closure of the Strait of Hormuz, policymakers and analysts began to realize that the control of oil, critical minerals, rare earths, and magnets is as important as building and maintaining stockpiles of advanced weapons. It also became clear that without these resources, defense and military capabilities could be weakened. The actual arms race goes hand in hand with the new battle for the resources that underpin economic, manufacturing, and advanced military development.
“Great-power competition has returned to basics: who controls the physical resources that modern economies and militaries run on,” Alice Gower, a partner at London-based political-risk advisory firm Azure Strategy, told the Wall Street Journal.
“Energy, critical minerals and industrial capacity are leverage, not just economic assets,” Gower added.
The war in the Middle East and the blockage at the Strait of Hormuz laid bare the reality of choked energy supply. The world’s most vital oil and LNG chokepoint, through which 20% of daily global trade flowed before the Iran war, has been essentially closed for most tanker traffic for more than three weeks.
The massive supply shock, the worst disruption in the oil market in history, showed that the world is dependent on energy resources, and that geography and actual physical supply matter. With so much oil and gas stranded in the Middle East, oil prices spiked to above $100 per barrel, natural gas prices in Europe doubled, and Asian spot LNG prices hit multi-year highs.
The precarious situation in the Middle East is reverberating across Asia, the region most dependent on oil and LNG supply from the Persian Gulf. Asian refiners pay sky-high premiums for non-Middle Eastern crude, many are considering cutting or have already cut processing rates, and countries have started to enact fuel-preserving measures, from four-day work weeks to bans on fuel exports.
In Europe, the gas refilling season will be the toughest yet, as Asia is outbidding Europe for spot LNG supply after Qatar’s LNG is effectively sidelined and full capacity may not return for up to five years following Iranian missile attacks last week.
Even the ‘energy independent’ United States, the world’s top oil producer, is not independent when it comes to global supply shocks of such magnitude.
The national average price of gasoline is approaching $4 per gallon nationwide, more than $1 a gallon compared to a month ago, before the start of the war.
Oil is a global resource, traded on a global market, and prices reflect fundamentals, although they have been driven by hectic trading activity on geopolitics in recent weeks. But the fundamentals show that there is no resource available to plug the gap that has opened in Middle Eastern supply. Producers are slashing output due to a lack of storage capacity, which further delays a rapid recovery in supply when this mess ends.
All this goes to show that whoever controls the Strait of Hormuz has enormous leverage on inflicting global economic pain.
While the world is focused on the Strait of Hormuz, the race for rare earths and critical minerals continues, with the U.S. and Western countries scrambling to dent China’s dominance.
Since China restricted exports of rare earth elements early in 2025, Western countries have raced to create mine-to-magnet supply chains to reduce dependence on Chinese supply in the key military and automotive industries.
China holds a 59% share of the mining of rare earths, 91% in refining, and a whopping 94% in magnet manufacturing, the International Energy Agency (IEA) estimates.
The U.S. has responded by taking stakes in minerals mining companies, the launch of a U.S. Strategic Critical Minerals Reserve, known as Project Vault, and is leading efforts to break the Chinese stronghold on the pricing of these minerals critical for the defense and auto industries and national security.
Chinese dominance could be eroded, but it would take years.
Still, rising neodymium-praseodymium (NdPr) supply from countries like the U.S. and Australia is set to reduce China’s market share to 69% by 2030 from 90% in 2024, Bloomberg Intelligence (BI) said in new research this month.
“We’re seeing a surge in rare-earth investment as modern technologies demand more critical materials,” said Jack Baxter, Global Metals & Mining Analyst at BI and co-author of the report.
“That said, we anticipate a significant shortfall in supply due to trade uncertainties, with lead times as long as 10 years to get new material out of the ground,” Baxter added.
“This will give pricing power to the few producers that currently are able to supply critical materials outside of China, fracturing the globalized market.”
Amid fractured markets and high geopolitical uncertainty, one thing is certain – the next arms race, alongside the actual arms race, will be for control of key resources such as oil and critical minerals.
By Tsvetana Paraskova
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Oil & Energy

Transcorp Energy, Renewvia Partner On Renewable Energy Gap

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Transcorp Energy Limited and Renewvia Solar Nigeria Limited have signed a Memorandum of Understanding to jointly develop renewable energy projects across Nigeria.
The move is aimed at addressing the persistent power deficit that has crumble businesses in the nation.
The agreement also outlines a longer-term plan to expand operations across Africa, positioning both firms to tap into growing demand for clean and reliable electricity.
The partnership would target commercial, industrial and residential consumers, as well as underserved communities, through a mix of off-grid and grid-connected energy solutions.
Beyond electricity provision, the collaboration would explore the aggregation and monetisation of Renewable Energy Credits generated from the projects, adding a commercial layer to the clean energy rollout.
The Managing Director and Chief Executive Officer, Transcorp Energy, Chris Ezeafulukwe, said the initiative aligns with the company’s broader strategy to expand access to sustainable power.
He noted that combining grid and decentralised energy systems would enable the company to deliver reliable electricity directly to end-users across different segments of the economy.
Chief Executive Officer of Renewvia, Trey Jarrard, described Nigeria as a critical market for the company’s African ambitions.
According to him, the partnership provides a platform to scale operations rapidly by leveraging established infrastructure and local expertise, while delivering cost-effective and resilient energy solutions.
Both companies said the agreement lays the foundation for a scalable pan-African renewable energy business, capable of supporting diverse markets and accelerating the continent’s transition to cleaner power sources.
The collaboration comes amid increasing pressure on governments and private sector players to deploy sustainable energy solutions to bridge electricity gaps, reduce reliance on fossil fuels, and support economic growth across Africa.
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Oil & Energy

IYC Tasks Niger Delta Governors On  Oil Field Bidding  ….Decries Exclusion of Host Communities

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The Ijaw Youth Council (IYC) Worldwide has raised concerns over the continued exclusion of host communities from the governance of oil resources, urging Niger Delta governors to take decisive steps by bidding for oil blocs and marginal fields.
The council warned that failure to act would allow external interests to continue dominating the region’s oil assets, despite their location within host communities.
Secretary-General of the council, Maobuye Nangi-Obu, started this at the stakeholders’ meeting organised by the Pipeline Infrastructure Nigeria Limited , with participants drawn from Rivers, Abia and Imo States, in Port Harcourt, recently.
“It is time for state governments in the Niger Delta, especially Rivers State, to form oil companies that can bid for marginal fields within their territories”, he said.
Nangi-Obu expressed concern over the reported listing of about 25 marginal oil fields for allocation, noting that many were located in host communities but allegedly being assigned to non-indigenes.
In his words “They sit in Abuja and decide what happens in our region, yet we are not part of the oil governance of our own resources”.
He explained that marginal fields, though considered uneconomical by major oil firms, remain viable for indigenous operators, adding that their allocation had continued to fuel grievances in the Niger Delta.
The IYC scribe also warned of the implications of directional drilling, describing it as a growing threat to host communities.
“There could be oil wells in your community, and somebody elsewhere could be drilling that oil without your knowledge,” he cautioned.
On environmental concerns, Nangi-Obu condemned the persistent gas flaring in the region, blaming both international and local operators for failing to invest in gas processing infrastructure.
He, however, commended Pipeline Infrastructure Nigeria Limited for its engagement with host communities.
“Pipeline Infrastructure Nigeria Limited is doing the right thing by engaging stakeholders. Not all companies are doing what they are doing,” he stated.
Traditional rulers at the meeting, further acknowledged improvements linked to the company’s activities in their areas.
The Eze Ekpeye-Logbo, King Kevin Anugwo, represented by Dr Patricia Ogbonnaya, noted that “aquatic life that disappeared due to pollution is gradually returning,” attributing the development to improved environmental conditions.
Similarly, Chairman of the K-Dere Council of Chiefs, Chief Batom Mitee, said, “There is now peace in our community,” stressing,  increased oil production must translate into tangible benefits for host communities.
By: King Onunwor
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