Oil & Energy

117 Rivers Communities Get N5bn GMoU Fund

Published

14 years ago

August 22, 2011

No fewer than 125 communities in 12 cluster development areas in Rivers State have so far received a whopping N5billion for the development of their communities as part of the implementation of the innovative Global Memorandum of Understanding (GMoU).

This is part of the N7billion disbursed by Shell Petroleum Development Company of Nigeria (SPDC) for the sustainable development of host communities under the Global Memorandum of Understanding (GMoU) implementation in the Bayelsa, Delta and Rivers states.

These were disclosed last Friday in Port Harcourt at the first-ever GMoU Fair for Rivers State communities, organized to showcase the individual community achievements in the implementation of the innovative development concept.

Of the 12 cluster areas, only 10 are active with about 117 communities, and have got the lion share of the development fund, released directly into their bank accounts by SPDC for the execution of people-oriented projects and programmes, initiated and implemented by the communities.

The active cluster development areas that have benefited from the funding over the last four years are Akuku Toru with five communities; Andoni with 20; while three are in Degema 1; 30 in Degema 3; nine in Etche 1; 12 in Etche 2; nine in Greater Port Harcourt City; four in Shell Industrial Area; 12 in Ikwerre; and three in Shell Residential Area.

Available statistics indicate that the Akuku Toru Cluster has received N1,036,661,677.33 and spent N795,187,665.10 on 45 completed infrastructure projects, nine human capacity development programmes and 12 economic empowerment schemes as well as 19 ongoing infrastructure projects, two human capacity and another two economic empowerment schemes; while Andoni has got N139,750,000, and spent N63,383,570 on infrastructure projects and N33,356,963.05 on human capital development and economic empowerment schemes in four years.

Both cluster communities also have the sum of N158, 217,035.45 and N30, 917,506.97 unspent funds in their respective bank accounts.

Available statistics indicate that the three Degema 1communities have received N1, 215, 810, 893, and have expended N1, 006, 681, 319 on 36 completed and 17 ongoing infrastructure projects, human capital development and economic empowerment schemes, including 11 overseas scholarship programmes in the United States; while the 30 Degema 3 communities have so far got N2, 076, 666, 666.70 and pumped N1, 797, 652, 821.71 on 49 completed infrastructure projects and 52 human capital development programmes as well as 14 ongoing infrastructure projects and 39 economic empowerment schemes.

Both Degema 1 and 3 have N209, 129, 374, and N366, 242, 721.70 as balance in their separate bank accounts for the execution of more development projects in their communities.

In the Degema 3 soft programmes portfolio, 531 indigenes have received local tertiary and or secondary scholarships, paid bursary to 1,730 persons, equipped 368 unskilled indigenes with sustainable skills, empowered 663 with micro credit loans, sponsored one person on overseas scholarship and created transport scheme for 108 indigenes of the cluster.

The Tide investigations show that the nine communities in the Etche 1 cluster area received a total sum of N590, 306, 088, out which they spent N520, 888, 999.33 on 85 projects, out of which 69 have been completed while 16 are ongoing. In this project template are 24 human capital development programmes, 13 electricity and 18 water schemes, 14 infrastructure projects and 16 economic empowerment schemes.

Whereas the 12 communities in Etche 2 cluster area have so far received N435, 639, 610 and expended N343, 896, 077. 39 on 34 completed infrastructure projects and 12 ongoing ones, in addition to 21 human capital development programmes and two economic empowerment schemes; the nine communities in Greater Port Harcourt City have got N320, 032, 073, and spent N278, 712, 826 on no fewer than 35 projects. Both Etche 2 and GPHC clusters also have bank accounts balance amounting to N91, 743, 532.61 and N41, 319, 247, respectively, for more people-oriented development projects.

The Tide also found that the four IA Cluster communities have received N360, 584, 323.40, and spent N297, 324, 573.32 on 47 completed projects and one ongoing project, just as the 12 communities in Ikwerre Cluster area have confirmed receipt of N536, 506, 100, out of which N497, 192, 009 has been spent on 38 completed projects and 10 ongoing ones.

Similarly, the three RA Cluster communities have received N276, 950, 790, out of which they have spent N137, 206, 510.12 on 25 projects and programmes, split in 21 completed and 4 ongoing portfolios. Of these, they are eight human capital development programmes, five electricity projects, one water project, six infrastructure projects and five economic empowerment schemes.

Even as they have put these development landmarks on the ground, the IA, Ikwerre and RA cluster areas still have bank accounts balances running into N63, 259, 749; N39, 314, 091; and N139, 744, 279.88, respectively for further sustainable development purposes.

Besides, Akuku Toru Cluster communities still have outstanding accruing development funds amounting to N74, 047, 262. 00; while Degema 3 communities have N148, 333, 333, 30 yet to be paid by SPDC.

In their separate speeches, the chairmen of the 10 cluster development boards said that the GMoU initiative was the metamorphosis of the microcosm of resource control in the Niger Delta, and advised communities in the region to key into the concept to enable them benefit from the resources derivable from their areas.

Managing Director, SPDC, Mutiu Sunmonu, who said that these investments were a sure way to bring about sustainable development and positively impacting change to host communities, stressed that the transparency and accountability in the GMoU model provides a good platform for other local and international donor agencies to fund development projects directly through the community development boards.

Sunmonu, who spoke through SPDC’s Government and Community Relations Manager, Fufeyin Funkapo, noted that the range of projects and programmes executed under the GMoU template cover microcredit for men and women, scholarships, innovative healthcare, skills acquisition schemes, solar-powered electrification and water projects, among many others, and thanked Rivers State Government, Rivers State Sustainable Development Agency (RSSDA), Economic Support Initiative (ESI), the local government councils, host communities, implementing non-governmental organisations and joint venture partners for ensuring the success of the initiative thus far.

Wife of Rivers State Governor and Founder of ESI, Dame Judith Amaechi, eulogized the SPDC and GMoU concept, and acknowledged the sterling contributions of the initiative to the overall development of the state.

Represented at the event by Mrs Nina Ejims, the governor’s wife emphasized that ESI supports 70 schools and 210 teachers in the state, and has partnered with Ikwerre and Degema cluster boards under the GMoU scheme to implement human capital and infrastructure development projects with significant dividends to the rural population in the state.

Nelson Chukwudi

Oil & Energy

NCDMB Unveils $100m Equity Investment Scheme, Says Nigerian Content Hits 61% In 2025 ………As Board Plans Technology Challenge, Research and Development Fair In 2026

Published

4 weeks ago

December 8, 2025

The Tide

The Nigerian Content Development and Monitoring Board (NCDMB), has unveiled a $100 million Equity Investment Scheme among a raft of fresh initiatives to bolster indigenous capacity and participation in the oil and gas industry.

Executive Secretary of the Board, Engr. Felix Omatsola Ogbe, disclosed this while delivering his keynote address at the opening of the 14th Practical Nigerian Content Forum, held in Yenagoa, Bayelsa State.

Ogbe said the $100 million Equity Investment Scheme would provide equity financing to high-growth indigenous energy service companies, while diversifying the income base of the Nigerian Content Development Fund (NCDF).

In furtherance of the scheme, a memorandum of understanding (MOU) was signed at the event between Engr. Ogbe and the Managing Director of the Bank of Industry, Dr. Olasupo Olusi toward the management of the scheme, which is a new product of the Nigerian Content Intervention Fund (NCI Fund).

The NCDMB Scribe also announced that 61 per cent Nigerian Content level has already been attained in the oil and gas sector by the third quarter of 2025 from projects being monitored by the Board.

Ogbe further expressed the board’s readiness to onboard a new set of Project 100 Companies after the successful implementation of approved interventions relating to the first set of Project 100 Companies, launched in 2019, for which an exit plan is slated for April 2026.

The ‘Project 100 Companies’, TheTide learnt, is an initiative of the Ministry of Petroleum Resources and the NCDMB under which 100 indigenous companies in the oil and gas industry were nurtured and empowered to higher levels of competitiveness through capacity building and access to market opportunities.

The NCDMB helmsman also said the Board has concluded plans to launch its NCDMB Technology Challenge in the first quarter of 2026 and to hold a Research and Development Fair in the second quarter of 2026.

In addition to its ongoing initiatives, the board further stated that a review of its seven current guidelines would be undertaken between the first and second quarter of 2026.

“The Board has completed the framework for issuance of NCDF Compliance Certificate, an instrument to confirm that a company in the oil and gas industry has complied with the one per cent remittance obligations.

“The Certificate will become effective on Ist January 2026 and would be required to obtain key permits and approvals from the Board”, Ogbe said.

In his address, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, said the theme of the PNC Forum, “Securing Investments, Strengthening Local Content, and Scaling Energy Production,” captures Nigeria’s national priorities that guide interventions by the Board and his Ministry.

He insisted that investment remains the lifeblood of the energy sector, and that the Board and the Ministry were committed to providing stable policies, transparent processes, and market-driven incentives, to attract long-term capital, assuring that the ministry would continue to strengthen local capacity across fabrication, engineering, technology services, manufacturing of components, and research and development.

On his part, the Minster of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, noted with satisfaction that a decade-long stagnation in the oil and gas industry was overcame with the enactment of the long-delayed Petroleum Industry Act (PIA), 2021, and Presidential Directives issued by the Administration of President Bola Ahmed Tinubu in March 2024.

He said Nigeria has regained investor-confidence as signalled by the recent surge in FIDs and the increase of oil rigs from 14 to over 60, with 40 currently in active service.

“Our investment climate now is globally competitive, our fiscal terms are globally competitive. Our policies must be seen to be consistent at all times. The Federal Government is prepared to support Nigerian Content and the oil and gas industry, but then, things have to be done responsibly., he said.

In a goodwill message, the Managing Director, BOI, Dr. Olasupo Olusi, said that the collaboration between the NCDMB and BOI marked a significant expansion of a longstanding relationship, while assuring that through the $100 million NCIF Equity Investment Fund, the Bank of Industry would deploy equity and quasi-equity capital to support high-potential Nigerian companies to complement traditional debt financing and strengthening access to the long-term risk capital required for scale, competitiveness, and value creation.

“With a single obligor limit of $5 million, the Fund is designed to catalyze multiple high-impact investments while maintaining strong governance and prudent risk management”, the BOI Managing Director said.

On her part, the Special Adviser to the President on Energy, Mrs. Olu A. Verheijen, commended the NCDMB for sustaining the PNC Forum, which she said, accelerates change, drives competitiveness, and pushes the industry toward global standards.

She urged stakeholders to remain intentional and not incidental about in-country value addition, as they chart the path toward building a resilient, competitive industrial base in Nigeria.

By; Ariwera Ibibo-Howells, Yenagoa

Oil & Energy

Power Supply Boost: FG Begins Payment Of N185bn Gas Debt

Published

4 weeks ago

December 8, 2025

The Tide

In the bid to revitalise the gas industry and stabilise power generation, President Bola Ahmed Tinubu has authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.

The N185 billion legacy government obligations to gas producers for past supplies had strained cash flow and hindered operations, discouraged further exploration and production, and reduced gas supply for power generation, thereby worsening Nigeria’s power shortages and unreliable electricity supply.

The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the move, endorsed by the National Economic Council (NEC) headed by Vice President, Kashim Shettima, marked one of the most significant interventions in Nigeria’s energy sector in recent years.

In a statement issued by the his Spokesman, Louis Ibrahim, Ekpo described the approval as a “decisive step towards revitalising Nigeria’s gas sector and strengthening its power-generation capacity in a sustainable manner,”

While noting that the intervention aligned with the ‘Decade of Gas’ initiative, which aims to unlock more than 12 billion cubic feet per day (bcf/d) of gas supply by 2030, Ekpo said clearing the arrears would deliver wide-ranging benefits, beginning with restoring investor confidence in the sector.

According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.

Ekpo explained that improved financial stability would help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output adding that Increased gas supply would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.

The minister noted that these gains were expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.

In his intervention, Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.

“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.

Oil & Energy

The AI Revolution Reshaping the Global Mining Industry

Published

4 weeks ago

December 8, 2025

The Tide

The global mining industry is undergoing a rapid digital transformation, driven by the dual pressures of the energy transition and increasingly complex extraction environments. A new market report projects the global Artificial Intelligence (AI) in mining market will nearly quadruple in value over the next seven years, reaching $9.93 billion by 2032.

This surge in adoption comes as miners face a “perfect storm” of challenges: declining ore grades, labor shortages, and an insatiable global appetite for the critical minerals required to power electric vehicles (EVs) and renewable energy grids.

According to data released this week, the market for AI in mining is valued at approximately $2.6 billion in 2025 and is expected to expand at a Compound Annual Growth Rate (CAGR) of 21.1 percent through 2032.

While the mining sector has historically been viewed as slow to modernize, the need for efficiency is forcing a change. The integration of autonomous haulage systems, predictive maintenance analytics, and “digital twins”—virtual replicas of physical mine sites—is shifting from pilot projects to standard operational necessity.

The “Operations & Process Optimization” segment is currently the dominant application, expected to account for more than 35 percent of the market in 2025. This technology allows companies to squeeze higher yields out of lower-quality rock, a capability that is becoming essential as easily accessible high-grade deposits are depleted worldwide.

The driving force behind this investment is the global scramble for critical minerals. The report highlights that the metal mining segment held the largest market share in 2024, directly correlated to the demand for lithium, copper, cobalt, and nickel—the backbone of the green energy economy.

“Metal mining operations involve highly complex processes—from ore body modeling and exploration to drilling, blasting, grinding, and material movement,” the report notes.

“AI supports these functions through predictive analytics… enabling cost reduction and higher yield recovery.”

For Western nations, this technological pivot also holds geopolitical weight. With China currently dominating the processing of rare earth elements, Western mining majors are under pressure to ramp up domestic production and efficiency to secure supply chains for battery manufacturing and clean energy infrastructure.

Beyond productivity, the industry is leveraging AI to address its most persistent operational risk: safety. The “Safety, Security & Environmental” segment is projected to record the highest growth rate during the forecast period.

Mining remains one of the world’s most hazardous heavy industries. Companies are increasingly deploying AI-powered video analytics and real-time worker tracking to prevent accidents involving heavy machinery and to monitor for gas leaks or ventilation failures in underground operations.

Furthermore, stricter Environmental, Social, and Governance (ESG) criteria from investors are pushing miners to adopt AI for environmental compliance. New tools allow operators to monitor tailings dams for stability, track emissions in real-time, and optimize water usage, ensuring that the intensifying race for minerals does not come at the cost of environmental stewardship.

Geographically, the Asia Pacific region commanded the largest share of the AI in mining market in 2024 and is expected to maintain the highest growth rate.

This dominance is underpinned by massive production volumes in China and Australia. Major industry players in the region, including BHP and Rio Tinto, have been early adopters of autonomous technologies. In Western Australia, for example, autonomous haulage trucks and drill rigs are already commonplace, moving millions of tons of iron ore with minimal human intervention.

China’s adoption is further accelerated by government support for “smart mining” initiatives aimed at modernizing its vast coal and mineral sectors to reduce fatalities and improve environmental performance.

As the world moves toward 2032, the “mine of the future” will likely bear little resemblance to the labor-intensive operations of the past. With generative AI now entering the sector to assist in complex mine planning and exploration, the industry is pivoting toward a model where data is as valuable as the ore itself. For energy markets, this efficiency is not just a bonus; it is a prerequisite for meeting the material demands of a decarbonized world.

By: Charles Kennedy