Nation
‘Without Alternative Energy, Petrol Price’ll Rise on Subsidy Removal’
The Department of Petroleum Resources (DPR) has warned that the pump price of petrol in the country may rise up to as much as N1,000 per litre when petrol subsidy regime comes to an end without an alternative energy source.
The DPR stated this just as some oil and gas experts have advocated for a measure from the government that will ensure that Nigeria gets commensurate value from its abundant oil and gas resources like its fellow oil producing nations.
The Director of DPR, Mr. Sarki Auwalu, said this while responding to questions and comments generated by a paper he delivered in Lagos, recently, at the Second Quarter, 2021 Business Dinner of Petroleum Club, Lagos.
The topic of the paper was, “A Discussion on the Future of the Nigerian Petroleum Industry.”
The questions and comments came from a former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Funsho Kupolokun; political economist and Founder of Centre for Values in Leadership, Prof. Pat Utomi; Production Geologist at Shell Nigeria, Mr. Adedoyin Orekoya; and Chairman of AA Holdings, Mr. Austin Avuru; amongst others.
Responding to the subsidy concerns and the disparity in the petrol consumption figures given by NNPC and the DPR, as raised by Orekoya, Auwalu, acknowledged that Nigeria was spending so much on petrol subsidy.
He said eliminating it would require making alternative fuel available to Nigerians and that failure to do that will plunge Nigerians into paying higher petrol prices when subsidy is removed.
He stated that Nigerians may be paying as high as N1, 000 to buy one litre of petrol in the country when subsidy on petrol is removed and when the alternative energy or autogas gas policy becomes fully operational.
He, however, said the alternative fuel regime comes with initial cost as it will lead to spending $400 to convert one vehicle from running on petrol or diesel to running on either Liquefied Natural Gas (LNG) or Compressed Natural Gas (CNG).
Auwalu maintained that converting eight million public vehicles currently present in Nigeria to gas-powered will cumulatively cost $3.2billion to achieve.
He said, “So, to eliminate subsidy, they don’t call it subsidy anymore now, it’s under-recovery of purchase. So, to eliminate under-recovery, what you need is alternative fuel. Without alternative, you will subject people to higher prices and that is why we go for price freedom.
“As at today, there are 22 million cars in Nigeria. Eight million are for public use. Imagine if you want to convert every car into gas, the average cost of conversion is $400. Converting eight million cars requires $3.2billion. To do that, there are a lot of environmental investors which can invest and recover from the sale of gas and we are encouraging that.
“Once that is achieved, you will see that PMS can be sold at N1,000. After all, the average distance covered by one gallon equivalent when you compare it with LNG or CNG with respect to energy for mobility, is 2.7 against one; one for PMS, 2.7 for LNG or CNG.
”So, with that advantage, you will see that it creates opportunity for this industry again. The issue of subsidy, volume will all vanish and that is what we are working towards.”
He, however, warned that the rise in Nigeria’s local refining capacity as seen in the coming on stream of a number of refineries in the country without a corresponding increase in the country’s oil production volume may threaten the country’s membership of the Organisation of Petroleum Exporting Countries (OPEC).
The director lamented that out of Nigeria’s over 7,100 reservoirs and its mature basins, the country was recovering just as low as about 1,000, a situation he said, needed the collaboration of all industry players to find a solution to before Nigeria gets evicted from OPEC due to low contribution.
“How do we now get the national production capacity so that we export more, we consume more? Today, we have huge additional capacity in domestic refining. If we don’t increase the production, we have to get out of OPEC, because you can’t be a net consumer to stay in exporting countries.
“So, the challenge is for all of us. As the refining capacity is increasing, we have to now get production capacity to increase so that we remain the net exporter. We believe this will guarantee and fortify the future,” he said.
Responding to Kupolokun’s question on the need to address the low contribution of the oil and gas sector to the country’s Gross Domestic Product (GDP), which is less than 10 per cent, Auwalu attributed the abysmal contribution to lack of deep investment into the value chain of the sector as well as the export mentality of the players.
According to him, only few players, mostly indigenous companies, have the mentality of ensuring that more output, especially with respect to gas, was given to the domestic market to power the country’s economic growth.
He said there was need to focus on domestic market in order to grow the sector’s contribution to GDP.
He explained what the department and the Federal Government were doing to address the two-pronged challenge of energy transition and the transition from the international oil companies (IOCs) operating in Nigeria, who are divesting out of the country, leaving the indigenous oil companies to take over from them.
Auwalu said the department had foreseen such situation and had planned ahead by setting up the Oil and Gas Excellence Centre to equip local companies to be able to fill the gap created by such transition.
“Now, we are saddled with two transitions: energy transition and transition from IOCs to NOCs. Why did we establish Nigerian Oil and Gas Excellence Centre? It’s because of this. We’ve seen this coming; we thought it twice before now.
“It is our duty to make those companies functional, and to do that, we need to establish a centre of excellence that will help in the migration from IOCs,” he explained.
Also reacting to the need for scenario planning and the possibility of galvanising the private and public sector to work together to increase the value of oil and gas to the economy, as proposed by Utomi, the DPR henchman noted that the agency had transformed from mere regulator to business enabler and opportunity provider and was working to maximise the value of the sector to the economy.
Auwalu maintained that as a business enabler, DPR was after creating an enabling environment for operators to work, produce, make returns on their investments and pay taxes and royalties to the government as while providing employment to Nigerians.
Nation
Ogoni Mangrove Wetlands Gain International Recognition As Ramsar Site
The Hydrocarbon Pollution Remediation Project (HYPREP) has announced that the mangrove wetlands in Ogoniland have been officially designated a Ramsar Site of International Importance by the Secretariat of the Ramsar Convention on Wetlands.
The designation, according to HYPREP, underscores the global ecological significance of Ogoniland’s mangrove wetlands and highlights ongoing restoration efforts aimed at addressing environmental degradation in the area.
In a press statement issued by the Project Coordinator of HYPREP, Prof Nenibarini Zabbey, the recognition was described as a major milestone for the agency, the people of Ogoni and other stakeholders working towards environmental restoration in the region.
Zabbey explained that the mangrove wetlands, which cover more than 31,700 hectares, consist of islands, tidal creeks, mudflats and mangrove forests that support a wide range of biodiversity. The ecosystem provides habitat for several species including fin fish, shellfish, crustaceans, crocodiles, turtles and the endangered grey parrot.
He noted that beyond biodiversity conservation, the wetland also provides essential ecosystem services such as fisheries production, flood control, water purification and carbon storage. According to him, the international recognition will further support local livelihoods, promote ecotourism and bring global attention to the region.
The HYPREP coordinator disclosed that the designation followed a meticulous process that began in 2024 when the project submitted a memorandum to the National Council on Environment seeking support for the recognition of the Ogoni wetlands as a Ramsar site.
Following the council’s review and approval, the Honourable Minister of Environment and Chairman of HYPREP’s Governing Council, Balarabe Abbas Lawal, formally wrote to the Ramsar Convention Secretariat requesting international recognition of the wetlands.
After a comprehensive ecological assessment, the Ramsar Secretariat granted the designation, officially recognising the Ogoniland wetlands as one of the world’s sites of international importance.
Zabbey said the recognition would strengthen ongoing environmental restoration efforts in the area and encourage stronger conservation measures and sustainable management of the wetlands for the benefit of present and future generations.
He added that the designation also fulfils a key recommendation of the United Nations Environment Programme (UNEP) Environmental Assessment Report on Ogoniland, marking another significant step in the implementation of the report’s recommendations.
The HYPREP project coordinator reaffirmed the agency’s commitment to restoring the Ogoni environment through the remediation of oil-polluted land, shorelines and mangrove ecosystems.
He also called for collective responsibility and stakeholder support to sustain the progress of the Ogoni cleanup programme and facilitate the development of a comprehensive and sustainable management plan for the Ogoni mangrove wetlands.
Nation
Perm Sec Explains Success Of FGM Elimination Programme In Rivers
The Permanent Secretary, Rivers State Ministry of Social Welfare and Rehabilitation, Mrs Lauretta Davies-Dimkpa, has attributed the successes of the 12-day programme organised for adolescent girls aimed at eliminating Female Genital Mutilation(FGM) in some parts of the State to the ability of the respective stakeholders to take ownership of the programme.
Mrs Davies-Dimkpa, who dropped the hint in an interview at the end of the programme in Elele-Alimini Community in Emohua Local Government Area on Saturday, said the event had a buy-in component, an ownership mentality, whereby facilitators, staff, and everyone involved took ownership of the project.
She explained that the Rivers State Ministry of Social Welfare and Rehabilitation, in collaboration with the United Nations Children’s Fund (UNICEF) and the United Nations Population Fund (UNFPA) had packaged a series of training sessions for adolescent girls aimed at ending the practice of Female Genital Mutilation (FGM) in some communities across the State.
According to her, the initiative was designed to educate young girls on the harmful effects of the practice and empower them to become advocates against it within their communities.
She noted that the programme, which lasted for several weeks, targeted adolescent girls from different local government areas where the practice is still prevalent, stressing that
data collected by UNICEF and the Ministry revealed that Female Genital Mutilation is still practised in some parts of the State, prompting the need for intensified sensitisation and community engagement.
Mrs Davies-Dimkpa explained that the programme adopted a “train-the-trainer” approach where adolescent girls were educated on the dangers of the practice and encouraged to share the knowledge with their peers, families and communities.
“This is a programme by the Rivers State Ministry of Social Welfare and Rehabilitation with support from UNICEF and UNFPA to train adolescent girls towards ending Female Genital Mutilation, which is still practised in some local government areas,” she said.
She further explained that each participating local government area had a three-day training session, with the exercise running for a total of 12 days.
The local government areas, where the programme took place, she noted, included Ahoada West, Abua-Odual, and Emohua, adding that the initiative is part of broader efforts by the state government and development partners to eliminate harmful traditional practices and protect the rights and wellbeing of girls.
She revealed that prior to the training of the adolescent girls, the Ministry and its partners had also engaged community facilitators, including older women and men, to sensitise them on the dangers associated with Female Genital Mutilation.
According to her, the involvement of community leaders and adults is essential in addressing the cultural and social factors that sustain the practice.
Speaking on the response of the participants, the permanent secretary expressed satisfaction with the level of engagement and enthusiasm shown by the girls throughout the training sessions.
She noted that many of the participants said they were learning about the harmful effects of Female Genital Mutilation for the first time.
“The girls are between the ages of 12 and 17 and from the interactions we had with them, they were very excited. Some of them are hearing these things for the first time and never knew that the practice is harmful,” she said.
She expressed optimism that the knowledge gained from the training would enable the girls to serve as advocates for change within their communities.
She added that the Rivers State Government, alongside its partners, would continue to intensify efforts and expand community-based interventions aimed at ending the practice across the State.
Meanwhile, the participants for Emohua Local Government Area were drawn from Elele-Alimini, Egbeda, Rumuji, Ibaa, Rumuekpe, Rumuakunde, Eligbarada, and Ogbakiri Communities.
The participants,who spoke in separate interviews described the training as eye-opening, noting that it helped them better understand issues surrounding adolescent health, personal hygiene, reproductive health, and the harmful consequences of Female Genital Mutilation.
Favour Azukwu from Rumuekpe community, said the programme provided a deeper understanding of the dangers associated with the practice, particularly its impact on the health and wellbeing of girls and women.
She explained that the training sessions exposed participants to the medical, social and psychological effects of Female Genital Mutilation, including severe bleeding, infections and complications during childbirth.
She revealed that she personally experienced the practice at the age of 12 and suffered heavy bleeding afterwards, an experience that has strengthened her determination to advocate for its eradication.
According to her, many communities still practise Female Genital Mutilation because it is perceived as a cultural tradition, despite the dangers associated with it.
“I do not support Female Genital Mutilation because there are many dangers involved. I experienced severe bleeding when it was done to me as a child.
Another participant, Glory Ken, a 16-year-old secondary school student from Rumuji community, said the programme broadened her understanding of several important topics affecting adolescents.
She explained that beyond the discussion on Female Genital Mutilation, the training also focused on issues such as personal hygiene, reproductive health, peer education, and self-care.
According to her, the sessions helped participants understand the importance of making informed health decisions and supporting one another as peer educators.
“I learned about many things that affect young people in society and how to take care of myself. I also learned that Female Genital Mutilation is harmful to our health. The message I am taking back to my community is that this practice should stop,” she said.
Also speaking, Goodness Kenjika Nyeche described the programme as very impactful.
She noted that the training equipped participants with the skills and confidence to educate others about the harmful effects of Female Genital Mutilation.
She said she plans to organise sensitisation among adolescents in her community, particularly girls between the ages of 10 and 19, to ensure they understand the dangers associated with the practice.
“I learned many things from this programme and I feel very good about it. I will educate other young girls in my community and help them understand why Female Genital Mutilation should not continue,” she said.
For Queen Dike from Ibaa community, the programme helped clarify misconceptions surrounding the practice.
She explained that in some communities, the practice is still referred to as circumcision and is viewed as part of cultural identity.
She said the training helped participants understand that Female Genital Mutilation involves the cutting or removal of parts of the female genital organs and that it has serious health consequences.
She stressed that awareness and education are key to ending the practice, especially among communities that continue to uphold it as tradition.
“I think the programme is very helpful because many people still believe it is part of culture. More awareness is needed so people can understand why it should stop,” she said.
Another participant, MyJoy Echika Amadi, said the programme provided critical information about adolescent health and the dangers associated with Female Genital Mutilation.
She described the initiative as enlightening and said it encouraged young people to become advocates for change in their communities.
According to her, participants were encouraged to use various platforms such as churches, peer groups, schools and community gatherings to spread awareness about the harmful effects of the practice.
“This programme has enlightened us about the dangers of Female Genital Mutilation. I will do my best to create awareness in my community and encourage people to stop the practice,” she said.
Many of the participants emphasised that the knowledge gained during the programme has empowered them to challenge harmful traditions and promote healthier practices among young people.
They also called on the Rivers State Government, development partners and civil society organisations to sustain the sensitisation campaigns and extend the training to more communities across the State.
According to them, empowering young people with the right information will play a critical role in eliminating Female Genital Mutilation and protecting the rights, health and dignity of girls in Rivers State.
The participants expressed appreciation to the Rivers State Ministry of Social Welfare and Rehabilitation, UNICEF and UNFPA for organising the programme and for investing in the wellbeing and future of adolescent girls in the State.
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