Connect with us

Oil & Energy

117 Rivers Communities Get N5bn GMoU Fund

Published

on

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

Continue Reading

Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

Published

on

THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.
It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).
The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.
Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.
He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.
Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.
Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.
“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.
He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.
“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.
Continue Reading

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

on

The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.
NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.
In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.
“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.
Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.
She feared the longstanding conflict could result in the eventual collapse of the country’s power.
According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.
Continue Reading

Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance  ……… Seeks PIA Review 

Published

on

The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).
President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.
Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.
The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.
In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.
He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.
Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.
He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.
Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.
“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.
He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.
“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..
According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.
“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.
Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.
“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.
Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.
“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.
According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”
Continue Reading

Trending