Connect with us

Oil & Energy

Implementation Of Committee Report On Niger Delta: Myth Or Reality?

Published

on

Being a paper presented by Barrister Ledum Mitee, MOSOP President & Chair of the Defunct Technical Committee on the Niger Delta, at the Port Harcourt International Oil and Gas Conference, last week.

The Technical Committee and its Work

The Niger Delta Technical Committee was inaugurated at a period of hightened tension exacerbated by the frustrations and burning sense of injustice that is pervading the region which found extreme expression in attacks on oil installations, kidnapping and assassinations, the nation was at its tenterhooks.

Against the backdrop of a rich history of disturbing economic shortfalls and broken promises intertwined with devastating environmental damage and conflict, there were hightened expectations of the people as many saw the Committee as the last bus stop in the realisation of the resolutions of the problems of the region. Many, however, viewed the work of the Committee with great skepticism not because of doubts on the ability of the Committee to accomplish its assigned task creditably but whether the report of the Committee will not join its predecessors on the shelf?

Perhaps to reassure Nigerians, President Goodluck Jonathan, then as Vice President, in his inaugural address in urging members to make “suggestions for Government’s necessary and urgent action”, went on to declare:” On behalf of the Government, I want to assure you that your recommendations will  not be treated with levity.” In receiving the Report of the Committee on the 1st of December, 2008, the late President Yar ‘ Adua similarly assured that government would study the report urgently and implement those aspects that it believes would lead to the permanent resolution of the problems of the Niger Delta region.

These were the circumstances that the Committee set down to work, albeit under considerable challenging circumstances, but with full realisation of the expectations of the nation and the international community.

Some Key Recommendations

In making the recommendations, the Committee proceeded from the premise that whilst the problems of the Niger Delta may be homogenous and exhibit a certain measure of similarity, suggesting the same origin, the region is far from homogenous. Thus, while some of the recommendations are generally applicable, others are targetted at unique challenges of states and communities that constitute the region. The Committee also recognised that the importance of the region to the country makes the solution to its problems a national issue with international implications, and as such, its solutions ought to be addressed as a matter of national interest.

Furthermore, The Committee noted that past and so far existing efforts to redress the Niger Delta crisis have suffered from want of political will. This has resulted in complete lack of trust necessitating that any genuine attempt at redressing the problem has to be dramatic and seen to be sustained and well resourced.

For these reasons, it is suggested that its key recommendations must not only be implemented but so implemented as a package and not in isolation. The Committee therefore boxed certain recommendations into a Compact with stakeholders that will commit to support critical short-term changes that are necessary for stemming the decline of the region into  blown conflict zone. The short term Compact which seeks to deliver on visible, measurable outputs which should produce material gains within an 18 month period was to be guided by the principle that the three tiers of government and other stakeholders report on progress in implementation every three months.

The key recommendations include:

Funding Infrastructural Development

The Committee recommended the establishment of a Special Niger Delta (Infrastructural) Intervention Fund for the needed urgent massive infrastructural intervention in the region. The Fund should receive contributions from oil companies, Federal and state governments through the Excess crude Account, Foreign Exchange Reserve as well .as international· donor Agencies, international  . pledges and grants and private sector sources.

Communities Stakes in Oil Activities

In order to facilitate a situation where communities will and voluntarily protect the assets and operations of oil companies, it was recommended that a framework that allows them to share in the wealth available to each community has to be established. The establishment of community Trust Funds will pool together resources from compensations, royalties, rents and entitlements directly accruing from relations with oil and gas companies. There is thus the need to institutionalise by law, a Community Trust Fund scheme for oil-producing communities which will allow registered community associations and local groups the opportunity to participate in deciding how the funds are used.

Similarly, it was recommended that power and water supplies from the oil flow stations should be extended to communities within 15 kilometres radius of such stations to ensure that the communities have requisite stakes in the continued operation of such flow stations.

Perhaps it is relevant to add here that the current Petroleum Reform Bill provides an excellent opportunity to work out a framework for taking on board the Committee’s recommendation on the payment of compensation and rentals to oil bearing land owners at full economic rates and for oil operators to pay royalties into the community Trust Funds of not less than $2 per barrel.

It was similarly recommended that by last year, 2010, appropriate regulations should be established to compel oil companies to have insurance bonds against environmental pollution, strengthen independent regulation of oil pollution and work towards an effective EIA mechanism. It was also recommended that enforcement of critical environmental laws be made a national priority whilst fraudulent environmental cleanups be exposed and prosecuted and gas flaring should cease by December 3151 2008.

Increased Revenue

Increase allocation accruing from oil and gas revenues to the Niger Delta states to 25% within a framework in which the additional funds are dedicated largely to new infrastructure and sustainable development of the region.

Infrastructure

It was recommended, amongst others, that the East-West Road dualisation from Calabar to Lagos with at least one link road per state to the coastline should be fast-tracked to ensure completion by 2010 as well as the commencement of both a coastal road and railway from Calabar to Lagos.

Also recommended was that the federal government should provide immediate funding for full takeoff of the Federal University of Petroleum Resources in Effurun, Delta State and that PTDF be refocused and re-directed to provide scholarship at all levels to make at least 50% of its beneficiaries to be persons from the Niger Delta.

Disarmament, Demobilisation and Reintegration (DDR)

The Committee recommended a DDR process that should begin with some confidence building measures on all sides which include ceasefire on all sides, pull back of troops, credible conditions for amnesty and the setting up of a DDR Commission. It is worthy to note that whilst the amnesty proposed by the Committee was a component of an entire DDR process, the current amnesty programme appears to be a stand-alone concept with no attempt to address the root causes of the problems that bred armed militancy in the first place.

Since the announcement of the amnesty for Militants, there has been some felt concern which stems from the fact that in so far as the amnesty focused almost exclusively on militancy without any pretence to reflect on the underlying concerns of the people of the region, it certainly would not bring about the desired sustainable peace in the Niger Delta. In so far as the policy would appear to be merely designed to appease militant agitations, it was like giving paracetamol to a clinically ill patient. The policy which is supposedly backed by a nasty budget, which is doubtful if it reflects on the militants themselves, appears not to be well thought out as there were no consultations with critical stakeholders and there was no definite and sustainable post disarmament plans. More importantly, it does appear that it makes the false assumption that ‘success’ of disarmament of a section of armed miltants without any serious efforts at addressing the injustices afflicting the region would by itself  translate to peace or the end of militant agitation in the Niger Delta.

There is the crying need therefore to re-appraise the current amnesty offer to a credible negotiated Disarmament, Decommissioning and Reintegration (DDR) programme. There is the need therefore to structure a process that mops up the still available large amounts of small arms and ammunition and put them or most of them beyond the reach of militants and would-be militants. The process would have to be designed to ensure that where disarmament terminates, demobilisation begins and where demobilisation ends, reintegration commences.

Again, it need be noted that in the committee’s view, although there are international best practices on the key elements of implementation of DDR, the natural starting point should be the setting up of a DDR National Commission or Implementation Committee which should draw membership from amongst others, religious leaders, the civil society, government, ideally a UN observer or technical expert for the international community’s buy-in etc. It would be important that the composition should be such as to captures the confidence of the critical stakeholders.

Youth Employment

As international best practices suggest that it might be counter productive to target any empowerment programme for only the ex-militants in order not to give the impression that only bad behaviours can attract reward, the Technical Committee recommended the establishment of a direct labour Youth Employment Scheme (YES) in conjunction with the States and Local Governments that will employ at least 2,000 youths in community work in each of the local Governments in the Niger delta.

Security Reform

It also need be emphasised that any sustainable peace process in the Niger Delta must take into consideration the Committee’s recommendation to:

Improve the operational integrity of security forces in the region to a level that assures communities and business organisations of safety without harassment and disruption. This will involve definite steps to eliminate all forms of abuses by security forces and institute proper programmes or reorientation, demilitarisation, retraining and accountability of all security operatives.

Concluding Remarks

In the light of the foregoing, it does not require rocket science or the special expertise of someone who served on the Committee to decipher how far the recommendations of the Committee have been implemented or not. Whilst we must acknowledge the fact that the implementation of the amnesty programme have greatly reduced the hostilities in the region, to the extent that oil production has increased by over 100% over the figures of the pre-amnesty era, but the fact that the increased revenue from oil has not reflected in improved livelihoods or facilities available to the oil bearing communities of the region should be of worrying concern.

As members of the Technical Committee stressed at a one- day meeting convened on November 5th 2010, to consider the implementation of the Report, “a selective and ad-hoc implementation of the recommendations undermines the sense in which the Technical Committee on the Niger Delta and indeed the Region envisaged the pursuit of their peace, development, security and stability.”

Ledum Mitee

Continue Reading

Oil & Energy

Rivers PETROAN Elects 12-Member Executive 

Published

on

The Petroleum Products Retail Owners Association of Nigeria (PETROAN), Rivers State Branch, has elected a 12 – member executive to steer the affairs of the association for the next four years.
The executive, elected during the Annual General Meeting (AGM) of the association, at it’s secretariat in Port Harcourt, and sworn in immediately after the election, was mandated to, among other things, tackle the adulteration of petroleum products as well as address irregularities in meter readings across the state.
The newly elected executive include, Pastor Ezekiel I. Eletuo  as  Chairman,  Kanu Addeson C. as Vice Chairman , Dr. Ejike Jonathan Nnbuihe as Secretary,  Fidelis A.Inaku as Treasurer and Lady C. N. Ekejiuba as Financial Secretary.
Others are Anaenye Anthony as Publicity Secretary, Arc. Kingsley O. Anyino as Organising Secretary, Nze Peter Ezenwa as Chief Whip, and Sunny Williams as Auditor.
Other members of the executive included Chidiebere Ronel Akwara as Welfare Officer, Ibe Chimaobi C. as Legal Adviser, and Emetoh Chizoba as Assistant Secretary.
Inaugurating the new leadership, PETROAN Zonal Chairman, High Chief Sunny G. Nkpe, charged the team to build on the achievements of the outgoing executive.
He urged them to collaborate with stakeholders in the petroleum sector to ensure industry stability and address issues of multiple taxation.
Nkpe who emphasized the need for transparency, accountability, and an open-door policy in administering the union, insisted these principles remained crucial in advancing the association’s objectives and improving members’ welfare.
The zonal chairman also commended the outgoing executive for their accomplishments during their tenure and for conducting a smooth transition process.
He further described their efforts as instrumental in strengthening the union’s standing in the state.
In his acceptance speech, the new Chairman, Pastor Ezekiel I. Eletuo, thanked members for their confidence and pledged to improve on the foundations laid by the previous administration.
He promised his leadership would be guided by transparency, accountability, fairness, unity, and integrity.
Eletuo called on all members to support the new executive in its efforts to elevate the association.
Also speaking, the immediate past Chairman, of the association, Sir Chilam Francis Dimkpa, expressed appreciation to members for their support during his administration and stressed the need for them to extend the same cooperation to the new leadership.
Dimkpa highlighted key achievements of his tenure to include capacity building for members, increased union visibility through media advocacy, and the establishment of stronger ties with stakeholders, corporate organisations, and individuals.
He also acknowledged the support of the state government, the Police, the Department of State Services (DSS) and the Nigeria Security and Civil Defence Corps (NSCDC).
Stakeholders present at the event also delivered their goodwill messages.
Highlights of the event included  administration of oath of office to the new executive and the presentation of certificates of return by the zonal chairman.    .
By: Amadi Akujobi
Continue Reading

Oil & Energy

FG Intensifies Efforts To Reposition Tourism Sector 

Published

on

The Federal Government has intensified efforts towards reposition Nigeria’s hospitality and tourism industry for global competitiveness, aimed at strengthening regulation, professionalism and workforce standards across the sector.
This was made known last week when the National Institute for Hospitality and Tourism (NIHOTOUR) conferred  fellowships, inducted professionals and inaugurated the governing boards of the Hospitality and Tourism Sector Skills Council of Nigeria (HTSSCN) in Abuja.
The high-profile event, held at Merit House, Maitama, drew senior government officials, regulators, tourism operators, cultural institutions, hospitality investors and development partners in what stakeholders described as a major institutional shift .
Government also formally inducted registered practitioners into various professional categories while also inaugurating the Board of Trustees and Board of Directors of the HTSSCN, an employer-led platform designed to align workforce competencies with industry expectations.
Speaking at the event, the Minister of Art, Culture, Tourism and the Creative Economy, Hannatu Musa Musawa, said the initiative represented a strategic intervention to strengthen accountability, standards and institutional coordination within Nigeria’s tourism and hospitality ecosystem.
According to the minister, Nigeria’s vast cultural assets, tourism destinations and creative talents can only translate into sustainable economic value through professionalism, regulation and globally accepted operational standards.
She noted that tourism and hospitality industry remains one of the fastest-growing sectors globally, contributing significantly to employment generation, foreign exchange earnings and cultural diplomacy.
Musawa explained  that NIHOTOUR Establishment Act has expanded the institute’s mandate beyond training, positioning it as a regulatory and certification authority for hospitality, tourism and travel practitioners in the country.
“No sector can attain sustainable growth without structure, standards, institutional coordination and skilled professionals,” she said, stressing the need for stronger collaboration between government agencies, operators, training institutions and private sector stakeholders.
In his keynote address, the Director-General and Chief Executive Officer of NIHOTOUR, Abisoye Fagade, described the event as a historic turning point in the formalisation of Nigeria’s tourism and hospitality industry.
Fagade said the induction of practitioners, conferment of fellowships and inauguration of the HTSSCN governing boards marked the beginning of a new era of institutional governance, professional recognition and sector-wide coordination.
“Regulation and standardisation are no longer optional; they are economic necessities if Nigeria truly intends to compete globally,” he stated.
By:  Nkpemenyie Mcdominic, Lagos
Continue Reading

Oil & Energy

Big Oil Reconsiders Previously Unattractive Destinations

Published

on

The Middle Eastern crisis has prompted a reprioritization among international oil companies. Previously unattractive drilling destinations are suddenly looking quite attractive—even Alaska.
The oldest oil and gas producing part of the United States has for years been out of the spotlight as the industry moves to cheaper and faster-growing locations. The only news of any substance about Alaska recently was the Biden administration’s approval of the Willow project, led by ConocoPhillips, which was set to boost the state’s oil output by 160,000 barrels daily, and Australian Santos’ Pikka project, set to start commercial production this year. That was years ago. Now, Big Oil is eager to drill in Alaska.
Earlier this month, a lease sale in the National Petroleum Reserve in Alaska attracted record bids, worth a total $163 million. Among the bidders were Exxon, Shell, and Repsol, with the latter already partnering with Santos on the Pikka development. And this may be just the beginning.
Related: Saudi Aramco Looks to Raise $10 Billion from Real Estate Asset Deal
The Bureau of Land Management offered 625 tracts across about 5.5 million acres for bid in the sale, revived at the end of last year by the Trump administration. No lease sales were held in the National Petroleum Reserve in Alaska under President Biden. Yet under Trump’s One Big Beautiful Bill, there will be a total of five lease sales in Alaska over the next ten years.
“With the imminent start-up of the Pikka project on the North Slope, the reversal in the decline of oil production in the great state of Alaska is going to help put more oil in the Pacific area at an important moment,” Repsol’s head of upstream operations, Francisco Gea, said as quoted by the Financial Times. Gea called Alaska “a fantastic opportunity”. The Pikka project, which has a price tag of $4.5 billion, will produce up to 80,000 barrels daily.
It is indeed a fantastic opportunity, at the very least because it is nowhere near the Middle East and as such is a highly secure energy exploration destination. Canada is in a similar position, by the way: the head of the International Energy Agency earlier this month told an industry event Canada had a golden opportunity to step in as a secure energy supplier in a world that’s currently 14 million barrels daily short on supply because of the Middle Eastern crisis.
Security, then, is what has prompted Big Oil to return to the North—even Shell, which left in 2015 after writing off as much as $7 billion on an unsuccessful drilling campaign hampered, among other things, by strong environmentalist opposition. According to the Financial Times, the supermajor’s decision to partake in the latest Alaska lease sale was surprising for analysts.
However, according to chief executive Wael Sawan, the lease sale concerns a different part of the state. “It is a very, very, very different part of Alaska that we have gone to,” he told the Financial Times. “This is an onshore exploration opportunity in a very well-established basin that has been producing for some time… So this is not offshore Alaska where we have had the challenges in the past.”
Crude oil is not the only thing drawing the energy industry to Alaska in these times of oil and gas trouble. Gas is also a magnet—in this case, in the form of the Alaska LNG project. Interest in the Alaska LNG export project has spiked since the war in the Middle East choked 20% of global LNG supply and sent Asian buyers scrambling for expensive spot cargoes.
Glenfarne Group, the majority owner and developer of the facility, aims to sign binding offtake agreements with buyers soon and advance final investment decisions to later in 2026 and early 2027, company executives told media earlier this year on the sidelines of an energy conference in Tokyo.
“There’s a real interest, particularly with everything happening in the Middle East right now. Everyone would like to get those (preliminary deals) turned into long-term agreements,” Adam Prestidge, president of Glenfarne Alaska LNG, told Reuters in March.
Alaska LNG is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.
The latest Alaska developments show clearly how the Middle East war has put energy security back in the spotlight, making previously challenging locations desirable again. With an estimated 1 billion barrels of oil supply wiped out of markets since the war began, according to Aramco’s Amin Nasser, alternative supply sources have become urgently needed, and not just for the short term. Even if the Strait of Hormuz reopens soon—which at the moment seems unlikely—energy security will in all probability remain a top priority both for energy producers and for consumers.
By Irina Slav for Oilprice.com
Continue Reading

Trending