Nation

FG Launches NUCOP To Crash Crude Production Cost, Boost Competitiveness

Published

6 years ago

February 10, 2021

Efforts to achieve the $10/barrel crude production target deepened, yesterday, as the Federal Government officially launched the Nigerian Upstream Cost Optimisation Programme (NUCOP).

Speaking at the launch, the Minister of State, Petroleum Resources, Chief Timipre Sylva, said that the aim of the new initiative was to boost industry collaboration and process enhancement.

According to him, of all the nine priority areas given to the ministry as its operational mandate, reduction of crude oil extraction cost remains pivotal.

He said that the ministry has since identified some initiatives to tackle the challenges stacking against lower production cost, adding that the cost in Nigeria was exceptionally high compared to other oil-producing nations like Iran and Saudi Arabia.

Sylva added that high cost would rob the country its desire to attract investments and remain globally competitive.

He added that capital expenditure, operational cost, policy-related elements, weak collaboration, capacity and capability issues, facility reliability, single sourcing syndrome, high magnitude of crude loss, multiplicity of tariff, among others, are issues that need to be urgently tackled.

“Members of the NUCOP are officials of the Petroleum Ministry, DPR, NCDMB, PETAN, NNPC, among others”, he said.

“They’ve found short and medium-term solutions. Average total cost is now below $30/barrel for JV contract and less than $20 for PSC. We need to do more. Engagement should reach a consensus on cost reduction.

“We are making a case for shared services. Our target is 3mpd daily production and 40 billion barrels reserves”.

Sylva assured the gathering that the executive arm of government was on the same page with the legislature to pass the Petroleum Industry Bill (PIB) this year.

“We want to position Nigeria as the best designation for investment in the hydrocarbon sector. The benefits of NUCOP are many. It includes; reducing the contracting cycle to three months or less, prompting efficiency, profitability and competitiveness. Its success is dependent on collaboration of stakeholders”, he added.

In his remarks, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, said Nigeria must pull down production cost, describing it as a self interest pursuit.

“There’s a global energy transition. Less cost-efficient companies cannot survive today. $50/barrel production cost cannot survive. There are issues around synergy that we’ve not achieved.

“There are issues of security. Many companies are hiring their own armies and we can’t continue like that. Issues of taxes and others have to be addressed. Our practices must change so that service providers can deliver.

“So, we can achieve economic growth and our partners can derive benefits. It’s not CSR but pure business. We must have the best of fiscal environment and policies so that cost of operation can come down and our target is at least $10/barrel.

“If we do these, tax benefits will increase and profit margin will increase. This is a task that must be done. This partnership will help the country. Crude has hit the $60 and it comes with a product price increase. We are trying to keep the country wet. We are engaging with labour. No provision for subsidy in the budget”, the NNPC boss explained.

In his remarks, the Chairman, Senate Committee, Upstream, Albert Bassey Akpan, said there was a need to take a second look at production cost for Nigeria to remain competitive.

“We must pay attention to the passage of PIB and pass it before the end of 2021. We need to look at tax structure and security issues. There is need for relevant stakeholders to harmonize their logistics structure”, he said

Also commenting, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, said that the discussion on cost reduction was long overdue.

He assured of the board’s support and collaboration towards achieving the target.

“Cost reduction comes with some pain and what’s important is how the business will survive to sustain jobs. Local content is a panacea for cost reduction. There is massive cost savings when Nigerians run the business unlike when expatriates flood the business”, he noted.

For the President of the Petroleum and Natural Gas Workers Senior Staff Association of Nigeria (PENGASSAN), Comrade Festus Usifo, he urged the gathering to look at expatriates’ costs as many of them are earning fat pay doing jobs capable Nigerians should handle.

Nation

HYPREP Marks 15 Years Of UNEP Report, Highlights Major Cleanup Milestones

Published

18 hours ago

August 10, 2026

The Tide

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

Nation

REAN, SON synergise to curb fake renewable energy product

Published

1 month ago

June 29, 2026

The Tide

The Renewable Energy Association of Nigeria (REAN) says it has strengthened collaboration with the Standards Organisation of Nigeria (SON) to enhance quality control and enforcement frameworks.

Mr Oisereime Lloyd-Dietake, the Head of Communications, REAN, in a statement on Tuesday in Abuja, said the collaboration would also involve stakeholder engagement on testing, certification and capacity building in Nigeria.

He said the synergy would strengthen quality control and enforcement frameworks, promote policy alignment, and ensure stronger regulation across the renewable energy value chain.

“REAN reaffirms its commitment to standardisation and quality assurance; tighter collaboration with SON is critical to eliminating fake and substandard renewable energy products from the Nigerian market.

“Enforcement and gaps in existing standards have continued to allow inferior products to circulate, undermining consumer confidence and slowing sector growth.”

Lloyd-Dietake said that at high-level discussions, REAN also highlighted the need for stronger regulatory coordination to address emerging challenges in the renewable energy space.

According to him, the issues include inconsistencies in standards, affordability issues linked to certification processes; and the increasing presence of substandard solar and renewable energy equipment in the country.

“The association further raised concerns about delays in product testing and approval, calling for the establishment of more testing laboratories and certification facilities to improve efficiency and reduce bottlenecks in the system,’’ he said.

Lloyd-Dietake urged closer collaboration among key regulatory bodies, including the Nigerian Electricity Management Services Agency, the Nigerian Electricity Regulatory Commission, and the Rural Electrification Agency.

He said such team work would ensure harmonised standards and more effective enforcement against fake renewable energy products in the Nigerian market.

In response, SON acknowledged the important role REAN continued to play in supporting standardisation within Nigeria’s renewable energy industry and reaffirmed its willingness to deepen collaboration with the association.

SON further confirmed that REAN would be actively involved in future standard review processes and upcoming stakeholder engagements related to renewable energy and electric mobility standards development.

Lloyd-Dietake said REAN affirmed its willingness to formalise the partnership through a Memorandum of Understanding (MoU).

He said the MoU is aimed at deepening cooperation, promoting quality assurance, and accelerating Nigeria’s transition towards reliable and standardised renewable energy solutions.

Nation

Self Help Africa programme expands water access for 320,000 Nigerians

Published

1 month ago

June 29, 2026

The Tide

The WASH Systems for Health (WS4H) Programme, implemented by Self Help Africa, has expanded access to safe water and sanitation services for more than 320,000 people in Kano and Cross River States.

The organisation disclosed this on Tuesday at the WS4H National Results and Learning Workshop in Abuja, where stakeholders reviewed achievements and lessons from the intervention.

Speaking at the event, Self Help Africa Country Director, Joy Aderele, said the programme demonstrated that sustainable WASH improvements require strong institutions, effective governance, adequate financing and collaboration.

Aderele said the UK-funded programme was designed to strengthen systems that support sustainable access to water, sanitation and hygiene services.

According to her, the intervention focused on improving governance, planning, financing, accountability and sector coordination to ensure resilient service delivery.

“More than 320,000 people now have improved or restored access to water services through programme-supported interventions,” she said.

She added that more than 5,520 household toilets were constructed in Yala and Makoda Local Government Areas, boosting sanitation, public health and efforts to end open defecation.

Aderele said the programme also strengthened public investment in WASH, with Cross River increasing its sector budget by 211 per cent in 2026 and Kano by 169.07 per cent.

She added that dedicated WASH budget lines had been established across 40 Ministries, Departments and Agencies in both states, strengthening accountability and institutional commitment.

According to her, both states reviewed and adopted updated WASH policies, while key planning documents were developed to guide future investments and service delivery.

She said Cross River also recorded a major legislative milestone through the passage of the Water Law and Open Defecation Prohibition Bill.

Aderele added that lessons from interventions in Yala LGA were already informing expansion efforts in Obubra Local Government Area.

While commending the achievements, she noted that capacity gaps, resource constraints and climate-related pressures remained challenges to sustainable WASH services.

“The sustainability of these gains will depend on continued government leadership, adequate financing, strong partnerships and investment in institutional capacity,” she said.

Also speaking, the Programme Manager of WS4H, Mr Timothy Ibeawuchi, said the intervention focused on strengthening systems needed to sustain gains and attract future investments.

According to him, the programme engages stakeholders in developing strategies that preserve achievements and support long-term service delivery.

“System strengthening work takes time because it addresses the fundamental issues responsible for sustainable and resilient service delivery,” he said.

Ibeawuchi said the programme strengthened policy development, planning, financing, monitoring and evaluation systems across the WASH sector.

He said two pilot local government areas were supported to develop WASH strategic plans outlining sector goals, targets and activities between 2026 and 2030.

According to him, the plans will guide future interventions and improve service delivery in the affected councils.

Earlier, the representative of the UK Foreign, Commonwealth and Development Office (FCDO), Chidera Chukwu, reaffirmed support for Nigeria’s development efforts in spite of the programme nearing completion.

Chukwu commended the Self Help Africa-led consortium for delivering the programme with professionalism and a strong focus on systems strengthening.

He said the consortium contributed greatly to strengthening Nigeria’s WASH sector through policy reforms, improved coordination and enhanced accountability.

“Together, we have advanced key policy and legislative reforms, including open defecation-free laws and strengthened state WASH frameworks,” he said.

According to him, the reforms represent enduring system-level changes that will continue delivering benefits beyond the programme’s lifespan.

In his remarks, Mr Jamilu Habu, Director of Water Quality Control and Sanitation, Federal Ministry of Water Resources and Sanitation, commended the programme’s achievements.

Habu, who represented the Permanent Secretary, said the intervention strengthened governance, coordination, evidence-based planning and institutional capacity in the WASH sector.

He described the workshop as an opportunity to review achievements, share lessons and identify pathways for sustaining and scaling successful interventions.

According to him, the programme’s innovations and best practices will guide future policies and investments aimed at expanding access to safe WASH services.

Habu stressed the need for continued collaboration among governments, development partners, civil society organisations, the private sector and communities.

He said stronger partnerships remained essential to achieving universal access to water, sanitation and hygiene services and meeting Sustainable Development Goal 6.