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Nigeria And Politics Of Oil Blocks’ Allocation

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The distribution of assets, income, revenue opportunities and projects among the federating units that form the Nigerian state has remained the central focus of discourse in the country, in recent times. There has been a renewed clamour for increase in the level of equity in access to productive assets and distribution of the proceeds of production.
With Nigeria anchoring all budgetary revenue on the accruable proceeds from oil exploration from the Niger Delta, there are expectations of a commensurate economic development in the region to justify the huge sacrifice. However, the Niger Delta, nay Nigeria, is caught in the web of fundamental contradictions, linking global oil politics, that oil is mostly located in parts of the world different from where it is desperately needed.
This accounts for why the rustic Niger Delta communities from which oil is extracted rarely have access to it. Rather, the predominant feature of the Niger Delta has been unremitting pollution of the natural environment, agitation and conflicts. Thus, the Niger Delta has remained comparatively irrelevant in the main activity of wealth creation as a result of inactivity in oil production.
It is in contention of these sad realities that the recent disclosure by the Minister of State for Petroleum Resources, Timpre Sylva, a Niger Delta son, that the Federal Government would conduct fresh oil block bid in 2020 has continued to generate reactions among critical stakeholders. While many applaud the decision as a bulwark to the development of the Nigeria oil and gas sector, others consider the decision as belated, given the fact that many oil blocks in the country have remained forlorn, while the ones mostly allocated were done based on vested interests and political patronage.
Pundits, therefore attributed the stunt in oil production and revenue generation in the country to these snags and imbalances in the allocation of oil blocks.
Although, the minister did not disclose the oil acreages that would be put out in the expected rounds, or processes to be adopted, he explained that the decision was not only to increase oil revenue but to also expand the space in the oil and gas sector by getting more people involved in the industry.
In apparent reaction to the planned oil blocks bid by the Federal Government, some stakeholders in the Niger Delta have advised the Federal Government to use the opportunity to address what they refer to as conspicuous denial of rights of indigenes of the oil rich region to own oil blocks.
A group known as Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) in a reaction, cautioned against a repetition of the skewed processes that characterised previous allocation of oil blocks in the country, particularly during the military era, which it noted, “undermined the principles of due process and competitive bidding”.
National chairman of HOSTCOM, Dr Mike Emuh, who spoke with The Tide in an interview, said the Federal Government should allocate oil blocks to indigenes of the Niger Delta in the next rounds of bidding, to assuage the injustices and the brunts of oil politics which the people have suffered over the years.
He said: “despite the huge sacrifices the Niger Delta has made in the development of the Nigerian economy through their natural resources, the region still wallows in gross poverty and underdevelopment. The people of the Niger Delta are denied participation in the oil and gas sector through denial of oil blocks ownership, this negates the principles of natural justice. I am using the opportunity to call on the Federal Government to allocate oil blocks to the people of the Niger Delta as part of measures to address issues of under-development in the Niger Delta”.
Another stakeholder in the oil and gas sector and indigene of the Niger Delta, Comrade Inimgba told The Tide that the new bidding process should be able to address the anomalies in the allocation of oil blocks in the past.
He recalled that oil blocks allocation under the military era was not representative of the collective interest of all Nigerians because of the centralised command and discretionary system.
Inimgba, who is the chairman of the Port Harcourt branch of the Independent Petroleum Marketers Association (IPMAN), said discretionary system of allocation of oil blocks amounted to the concession of the nation’s treasures and common wealth to few individuals.
He said: “The politics of oil blocks allocation in Nigeria has been highly contentious as it has not reflected the principle of equity and justice. Most of the people that benefited from the allocation in the past got their allocations on share compromise at the expense of other Nigerians, particularly the Niger Deltans. The idea that the people of the Niger Delta are not technically fit or experienced enough to play key roles in the oil and gas sector is totally erroneous and deceitful”.
He added that the Niger Delta has people who are qualified technically and otherwise to operate oil blocks.
In her views, an activist, Ann Kio Briggs, also raised concern over the injustices perpetrated against the Niger Delta in oil politics.
She said that the Niger Delta had always been at the receiving end of the oil economy, as the dorminant activities of oil production are carried out in the region, noting however, that the indigenes play barely, “passive roles while billions of petrol dollars are carted away from their land to develop other parts of the country”.
She pointed out that such politics of “exploitation, deprivation and exclusion” amounted to gross injustice and urged the Federal Government to give due consideration to the Niger Delta in the planned allocation of oil blocks.
Also in a reaction to the planned allocation of oil blocks by the federal government, human rights activist and fiery lawyer, Femi Falana (SAN), said it was unconstitutional to allocate the nation’s oil blocks to a few individuals.
Quoting section 16(2)(c) of the 1999 constitution as amended, Falana in a letter to the presidency said the constitution prohibited the concentration of wealth in the hands of few individuals or group.
He noted that majority of the owners of the oil blocks belonging to the Nigeria people usually sublease them to offshore companies as they lack the fund and technical expertise to develop the oil and gas industry, and called for the revocation of such oil blocks and marginal fields.
The letter which read in part stated: “By merely collecting huge rents, the oil blocks owners become stupendously rich, while the federal, state and local governments, depend on loans and bail outs to pay salaries and carry out basic infrastructural development”.
Also, former Minister of State for Petroleum, Ibe Kachikwu, while speaking at the Nigeria oil and gas fair in Yenegoa, early this year, lamented that crude oil production in the country had been hovering around 1.9 million barrel per day over the past years.
Kachikwu noted that despite been a major oil producing country, Nigeria was yet to lead investors and producers that are operating across Africa, and emphasised the need for the country to explore its capacity to produce four million bpd of crude oil and abundant gas reserves to generate power.
Report shows that more than 50% of Nigeria’s oil and gas blocks remain untapped even as crude oil production continues to hover around 1.9 million bpd. Out of 390 oil blocks in the country, 211 are reported to be lying untapped due to non allocation by the Federal Government.
With many other countries are increasing efforts to ramp up their oil and gas production and reserves, industry experts have expressed concern over the lack of oil licensing rounds in Nigeria since 2008.
According to the institutional regulator of the petroleum industry, the Department of Petroleum Resources, (DPR), 179 blocks have been allocated as at December 2017, comprising 111 oil mining leases and 68 oil prospecting licenses.
It could be recalled that previous efforts to hold licensing rounds for major and marginal oil fields during the tenure of Dr Ibe Kachikwu as Minister of State for Petroleum Resources were not successful, as the recommendations were reportedly turned down by President Buhari.
Nigerians, however, look up to the planned allocation of oil blocks by the Federal Government in 2020 as an opportunity to address perceived imbalances in the oil economy.

 

Taneh Beemene

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Can Cheap Batteries Deliver COP31’s 35% Electrification Goal?

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Electrification will be the major focus of the COP31 United Nations climate conference, to hold in Antalya, Türkiye, from today, November 9 to 20, 2026. The host country will invite the attending nations to sign onto a voluntary pledge to reach 35 percent electrification on a global level by 2035. J
ust a year ago, this target may have seemed overly ambitious, but now, experts say that a number of factors, including volatile oil and gas markets stemming from the war in Iran, paired with enormous advances in clean energy technologies, have put that goal within “striking distance.”
The months-long closure of the Strait of Hormuz has catalyzed the clean energy transition and the rate of electrification around the world. Before the United States and Israel began their military offensive in Iran back in February of this year, one fifth of the world’s oil and gas trade flowed through the Strait of Hormuz. Its abrupt closure therefore sent global oil and gas markets into turmoil and sent energy-importing countries around the world scrambling for alternatives, especially ones that they could produce and control on their home soil. And, just like that, renewable energy became the new face of energy security.
“Wind and solar cannot be embargoed, blockaded, or shut off by a foreign power,” David Frykman, General Partner at Stockholm-based venture capital group Norrsken, wrote in an op-ed for Fortune earlier this year. “Every terawatt-hour of domestic renewable generation is a terawatt-hour that no adversary can weaponize.”
But there is another, quieter force that has made this rapid global pivot toward renewable energies possible – the energy storage boom. Energy storage is critical to ensure grid stability in the face of rapid electrification and the increasing representation of intermittent energy sources like wind and solar power in national energy mixes. Major advances in the sector in recent years have made battery storage more affordable and more scalable than ever before – just in time for the world’s most recent bout of ‘fossilflation.’
“What’s really become a game-changer in the past two years is the rapid deployment of large-scale batteries that can hang onto ever larger amounts of power to be used throughout the day to smooth out demand and avoid overtaxing the grid,” Forbes wrote in a Monday report.
The second quarter of this year saw the United States’ largest-ever energy storage expansion, at 20.2 gigawatt-hours of additional capacity, according to a report by the Solar Energy Industries Association and Benchmark Mineral Intelligence. That puts this year’s total additions at 30.8 GWh – and counting.
“Although President Trump is no fan of renewable energy or batteries, utility-scale energy storage capacity still nearly doubled to 165 GWh from 88 GWh in the first 18 months of his administration,” the Forbes article goes on to detail. “Grid operators, utilities and data center developers are all buying batteries as fast as they can to meet power demand and improve grid reliability. As a result, battery energy storage systems supplied more electricity to the grid in the year’s first eight months than in all of 2025.”
Ironically, despite his best efforts, Donald Trump is overseeing one of the United States’ most significant clean energy booms in the nation’s history as solar and wind have simply become too cheap to fail. And the United States is not alone. Buoyed by a flood of cheap solar panels and battery storage systems coming out of China, even the world’s poorest countries are experiencing clean energy revolutions.
“Some countries are pulling off stunningly fast energy transitions, adding solar so rapidly, it’s become a major source of electricity over the course of years — not decades,” reports CNN.
Pakistan has become the surprise poster child of this trend as residents install rooftop solar and batteries faster than any other market on Earth, as these systems provide electricity more cheaply and reliably than the country’s own beleaguered energy infrastructure. In addition, emerging economies including Brazil, Chile, El Salvador, Morocco, Kenya, and Namibia have all overtaken the United States – the world’s largest economy – in their clean energy transitions.
By Haley Zaremba
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MAN, Ministry Tackle High Electricity Costs, Erratic Supply

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The Manufacturers Association of Nigeria has said it is working with the Federal Ministry of Power to address high electricity tariffs, unreliable grid supply and rising energy costs that are undermining industrial production and competitiveness in the country.
The association said the collaboration would focus on developing sustainable energy solutions for manufacturers, including renewable energy, battery storage, captive power generation and improved electricity distribution.
Speaking during the second edition of the Manufacturers Energy Security and Energy Efficiency Summit in Lagos, the President, MAN, Dr. Ifeanyi Okoye, regretted that high electricity tariffs, unreliable grid supply and heavy dependence on fossil fuels had made industrial production exceptionally difficult.
Okoye said energy expenses consumed nearly half of some factories’ operating budgets, weakening their competitiveness, increasing product prices and threatening jobs.
He said manufacturers had continued to operate their own power infrastructure despite paying for electricity from the national grid.
“When energy expenses claim nearly half of a factory’s operating budget, competitiveness evaporates, retail prices skyrocket, and jobs are placed on the line,” he said.
Okoye said the association was moving beyond advocacy to implement practical solutions through its Industrial Energy Cost Reduction and Energy Support Programme, as key partners in delivering the initiative.
According to him, the programme would promote factory-roof solar installations, battery energy storage systems, captive natural gas generation and smart energy management networks to reduce production costs and protect manufacturers from global fuel price shocks.
He, however, stressed that manufacturers needed affordable, long-term financing to undertake the energy transition.
 “We cannot finance 21st-century industrial transitions with 30-day commercial bank loans at cut-throat interest rates,” Okoye said.
He said the summit would bring financial institutions, climate funds and green investors together to develop long-tenured, low-interest financing instruments, carbon credit opportunities and asset-financing
Also speaking, the Minister of Power, Joseph Tegbe, warned industrial customers against unauthorised electricity connections.
He disclosed that investigations had uncovered about 14 industrial customers along a particular corridor who owed more than N400m in unpaid electricity charges over several years.
Tegbe said such practices deprived the electricity sector of revenue needed to sustain power supply and unfairly burdened consumers who paid their bills.
“Such conduct deprives the sector of revenue that we need to sustain the supply, and unfairly burdens consumers who pay honestly,” Tegbe said.
The minister vowed to recover the outstanding charges and hold those responsible accountable, urging MAN to encourage its members to maintain lawful electricity connections and comply with applicable regulations.
 Tegbe acknowledged that manufacturers continued to struggle with electricity interruptions, poor power quality, vandalism and electricity theft, adding that the government was directing investments towards addressing the underlying problems.
Speaking on behalf of manufacturers, the MAN South-East Chairman, Ada Chukwudozie, said energy had become a question of survival and competitiveness for Nigerian manufacturers.
 She said manufacturers were increasingly financing and managing their own electricity infrastructure while struggling with rising production costs and limited access to capital.
 “We are effectively running a second power system paid for by ourselves, besides the grid we also pay for. And that is why for the Nigerian manufacturer, energy is no longer simply an operational issue. It is a question of survival and competitiveness,” Chukwudozie said.
 She explained that unreliable electricity supply forced manufacturers to make difficult choices between purchasing energy and raw materials, maintaining equipment and paying workers.
The regulator added that manufacturers could strengthen their competitiveness by adopting cleaner energy sources as international markets increasingly imposed environmental and carbon-related requirements on products and supply chains.
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Reps Panel Dismisses Petition Against NIPCO gas Licence

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The House of Representatives has dismissed a petition seeking the cancellation of gas distribution licences awarded to NIPCO Plc, ruling that the petitioners failed to provide credible evidence to substantiate their allegations.

The decision followed a review by the House Sub-Committee on the Petition concerning NIPCO Plc, which rejected the complaint filed by the Nigerian Energy Security Watch Group (NESWG) for lacking substance and evidential support.

The petition had called for an investigation into, and the suspension and cancellation of, gas distribution licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NIPCO for Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones.

Announcing the decision last Thursday, the Chairman of the Sub-Committee, Peter Aniekwe, said the petitioners relied on hearsay and failed to establish any wrongdoing in the licensing process.

“At its sitting today, the Sub-Committee resolved not to proceed with the investigation, and the petition is accordingly dismissed,” Aniekwe said.

The committee, which also includes Dahaltu Shehu, was constituted in October to examine the petition. It was granted an additional 14 days on October 26 to conclude its assignment.

Aniekwe said the issuance and regulation of gas distribution licences were statutory responsibilities of the NMDPRA under the Petroleum Industry Act, while stressing that the National Assembly would continue to exercise oversight over the process.

He disclosed that the regulator had committed to completing and rolling out gas distribution licensing in the fourth quarter of 2026, adding that the committee would monitor the implementation.

“Nigerians deserve a gas market that is open, competitive and safe, and investors deserve rules that are clear and stable,” he said.

The lawmaker reaffirmed the House’s commitment to considering petitions from individuals and organisations with genuine concerns about the petroleum sector, saying “each complaint would be assessed on its merits”.

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