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Oil Revenue And Northern Governors’ Agitation

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This is the conncluding part of this article first published on Wednesday.

Government admitted that 40,000 oil spills had occurred in the past 53 years of oil exploration. In the report, the World Bank claimed that the palm groves, shorelines, creeks and other habitable areas would be washed away by erosion as well as spills due to vandalism, system failure and crude oil theft.  Apart from effects of oil spills, gas flaring constitutes a veritable hazard. It causes acid rain which acidifies the lakes and streams and damages crops and vegetation. It reduces farm yields and harms human health; increases the risk of respiratory illnesses, asthma and cancer and often causes chronic bronchitis, decreased lung function, blindness, impotence, miscarriages and premature deaths. Constant heat and the absence of darkness in some communities have done incalculable damage to human, animal and plant life in affected areas. Gas flares also cause affected places to be covered in thick soot, making even rain water unsafe for drinking. A United Nations Environment Programme (UNEP) report, last August, criticised how the Shell Petroleum Development Company (SPDC) deals with the environmental damage it has caused in the Niger Delta, especially in ogoniland. UNEP said Ogoniland needed the world’s largest ever oil clean_up, which would cost an initial $1billion or N160 billion and could take 30 years. How Ogoniland and other polluted communities would be cleaned is a matter of conjecture. If now that oil revenue is available the areas cannot be cleaned, is it when the revenues cease that the task will be embarked upon? By projection, Nigeria currently has proven crude oil reserves of about 37.2 billion barrels which at the current rate of exploitation (2.5mbp) may be exhausted in the next 40 years unless new deposits are discovered. Like most oil-bearing areas of the world, the Niger Delta has a tough terrain, which needs huge funds to be developed. Often times, oil producing areas are marshy or arid and most of the parts of the Niger Delta is marshy. The devastation of the Niger Delta region has been attributed, among others, to many failures of policy in the region and refusal of the government to pay special attention and inject funds into the area for development. Till date, no city in the region has been mapped out for a special development as the government did in Lagos and Abuja.”

“In the beginning: In 1958, before crude oil became a critical factor in Nigeria’s development, Sir Henry Willink’s Commission recommended that the Niger Delta region deserved special developmental attention by the Federal Government because of its difficult terrain. In response, the government established the Niger Delta Development Board (NDDB) in 1960 to tackle the developmental needs of the region. The board in  its seven years of existence achieved little or nothing. It was consumed by the military coup of 1966 and the outbreak of the civil war in 1967. Before and shortly after Nigeria’s independence in 1960, the federating units (regions) retained 50 per cent of revenues derived from their areas and contributed the rest to the central pool. It was on this basis that the regional governments led by late Chief Obafemi Awolowo (West); Dr Nnamdi Azikiwe (East); Sir Ahmadu Bello (North) and later Dennis Osadebey (Mid-West) unleashed unparalleled development in their respective areas. However, the 50 per cent derivation principle was kicked aside by the military in 1967 as earnings from crude oil skyrocketed. First, parts of the proceeds were used to prosecute the Nigeria-Biafra civil war of 1967 to 70. After the war, the military rulers refused to return to the status quo and chose to disburse funds to the states as they deemed feat. The military also created numerous states and local councils, which were funded with oil money. The oil producing areas were short-changed in the series of state and councils creation sprees. The President Shehu Shagari Administration set up a Presidential Task Force (popularly known as the 1.5 % Committee) in 1980 and 1.5 per cent of the Federation Account was allocated to the Committee to tackle the developmental problems of the region. This committee could not achieve much. There were doubts if the government actually disbursed 1.5 per cent of the revenue to the committee. And most of the funds released were allegedly looted.

So, when General Ibrahim Badamasi Babangida came to power, he set up the Oil Mineral Producing Areas Commission (OMPADEC) in 1992 and allocated 3 per cent of federally collected oil revenue to it to address the needs of the areas. Like its forebears, the OMPADEC, which initially raised hopes also failed to deliver as it perceptively became inefficient and corrupt. When General Sani Abacha took over, he set up the Petroleum Trust Fund (PTF) headed by Major General Muhammadu Buhari (rtd). The PTF did not meet the yearnings of Niger Deltans as its mandate covered all parts of the country. With critics saying that the PTF carried out more projects in northern parts of the country, restiveness in the Niger Delta assumed a higher gear. Abacha convened a National Constitutional Conference (NCC) in 1994, where conferees agreed on at least 13 per cent derivation. Abacha did not live to implement the recommendation. His successor, General Abdulsalami Abubakar included it in the 1999 Constitution, which he handed over to President Olusegun Obasanjo on May 29, 1999. On his part, Obasanjo scrapped the PTF and established a special body, the Niger Delta Development Commission (NDDC), to undertake rapid development of the impoverished oil region. He foot-dragged on the payment of the 13 per cent derivation until the oil producing states got a court judgment, which forced him to pay the proceeds beginning from June 1999.”

“At the National Political Reforms Conference (NPRC) convened by Obasanjo in 2005, South-South delegates insisted on 25 per cent derivation and had to walk out on the gathering when the other parts of the country said they could not approve anything more than 18 per cent, which was later recommended. However, this recommendation did not see the light of the day and died with Obasanjo’s alleged third term ambition. On succeeding Obasanjo, late President Umaru Musa Yar’Adua established the Ministry of Niger Delta Affairs, to offer more palliatives to the region. When militancy took the upswing in the area and knocked down oil production to about one million barrels per day, he also offered amnesty to the militants, a programme that has gulped billions of Naira.

The current fire of derivation controversy raging in the polity was ignited a few weeks ago when a host of northern leaders including Central Bank of Nigeria (CBN) Governor, Malam Lamido Sanusi; Niger State Governor and Chairman of the Northern Governors Forum (NGF), Dr Mu’azu Babangida Aliyu; the Arewa Consultative Forum (ACF) and Dr. Junaid Mohammed decried the huge revenues going to the oil producing states and sought reduction of the proceeds to free more money that could be allocated to northern states. Some of them attributed the Boko Haram insurgency ravaging many northern cities especially in the North-East geo-political zone to poverty arising from disproportionate revenue allocation to the North. The northern demand drew the ire of some Niger Deltans, who demanded true federalism and 50 per cent derivation.

 “Disturbed by the dangerous dimension the derivation question and other issues such as insecurity and stunted growth were taking in the country, former Commonwealth Secretary General, Chief Emeka Anayaoku, has canvassed a return to true federalism, to address the issues. Speaking a colloquium to mark Asiwaju Bola Ahmed Tinubu’s 60th birthday in Lagos, he said: “I do believe that a true, rather than our current unitarist federalism, will better promote peace, stability and development in Nigeria. There can be no doubt that Nigeria was making more progress in national development in the early years of its independence when it practiced a true federalism of four regions with more extensive powers devolved from the centre to the regions. Those were the days of the significant export of groundnuts,  hides and skins, and the tin ore from the North; of cocoa from the West; of rubber from the Mid-West; and of palm produce and coal from the East of Nigeria. They were also the days of such achievements as the free universal education and introduction of television in Chief Awolowo’s Western region, and of the budgeoning industrialization of Dr Okpara’s Eastern region.”

“To return to true federalism, we need a major restructuring of our current architecture of governance.  We would need six  federating units, instead of our present 36, which not only sustains an over dominant centre, but also compels the country to spend not less than 74 per cent of its revenue on the cost of administration. 

“We need to convene a national conference of appropriately chosen representatives of the six geopolitical zones to dialogue on how to face these serious challenges. I believe that if we are to recapture the zeal with which the then regional Premiers and their electorates embarked on the development of their regions, if we are to arrest  the present destructive competition between our various ethnic groups for the control of power at the centre, and if we are to repair the collapse in our societal value system which is at the root of the pervasive corruption and degradation of our public services, we should aim at getting the national conference to reach a consensus on devolving from the centre to the six federating units responsibility for such areas of governance as internal security including the police, infrastructure, education, health and economic development.” Anyaoku’s suggestion has the endorsements of many eminent Nigerians drawn from all parts of the country.

The agitation against the 13% oil revenue derivation to oil producing states and the attendant ecological and devastation from oil exploration without commensurate infrastructure development of the region is unfair and unjustifiable in the face of recent Boko Haram insurgence and agitation for more revenue from the Northern States.

Dr. Akpogena, a Christian devotional Writer/Minister, Educationist and Consultant writes from Port Harcourt.

 

Lewis Akpogene

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RIVERS NUJ BACKS BONNY TOURISM, TASKS MEDIA ON DEVELOPMENT REPORTING

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The Nigeria Union of Journalists (NUJ), Rivers State Council, has thrown its weight behind efforts to reposition Bonny Island as a major tourism destination, urging journalists to move beyond crisis reporting and deliberately promote the state’s investment, tourism and development potentials.
The Chairman of the NUJ Rivers State Council, Comrade Paul Bazia, said this at a press briefing held at the Ernest Ikoli Press Centre in Port Harcourt, recently.
Bazia said Rivers State was endowed with enormous natural and economic resources, stressing  the media must gradually shift its attention from conflict-oriented reporting to development communication capable of attracting investors, tourists and other economic opportunities to the state.
He said the tourism potential of Bonny Local Government Area was enormous and could compete favourably with attractions found in Caribbean countries, urging journalists to tell the story of Bonny in a way that would attract global attention.
“If we don’t blow our own trumpet, people won’t know that we have our trumpets. Most of the people that travel to the Caribbean, Bonny is more than that. Bonny is more than just the hydrocarbon headquarters. Bonny is beautiful. Bonny environment is therapeutic,” he stated.
The NUJ chairman stressed that tourism could provide a sustainable source of income without the environmental consequences associated with some extractive economic activities, adding that the media must help to market the tourism products available in Rivers State.
“Our role is to ensure that our stories market the product that we have,” Bazia said, urging journalists across the state to consciously promote its tourism and investment opportunities.
He warned that failure to develop and promote tourism destinations such as Bonny could contribute to economic stagnation and insecurity, stressing that businesses and communities would ultimately suffer where legitimate economic opportunities were neglected.
“It is better for us now to get into it and sell the product that we have so that it will be a win-win for everybody,” he added.
Also speaking, the President of the Bonny Chamber of Commerce and Executive Director of the Discover Bonny Initiative, Mrs. Constance Nwokejiobi, Ph.D., said the initiative was a three-year strategic programme designed to transform Bonny Island into a premier tourism destination.
Nwokejiobi disclosed that Bonny Island Tourism & Investment Summit 2026, scheduled for August 18 to 20, would feature a Tourism Concierge Platform, multi-tier partnership arrangements ranging from Platinum to Community Tourism levels, as well as a privately driven Tour
She stressed that sustainable tourism could not depend solely on government, but required entrepreneurship, private investment and strategic partnerships, noting that Bonny already contributes an estimated four per cent of Nigeria’s national GDP, largely through oil and gas, while efforts were underway to develop a second and more sustainable economy based on tourism, heritage and hospitality.
Nwokejiobi said the initiative enjoyed strong support from His Majesty King Edward Asimini William Dappa Pepple III, Perekule XI, Amanyanabo of Grand Bonny Kingdom, who, she noted, had consistently promoted the island’s rich heritage and hospitality potential alongside its energy and industrial strengths.
She called on Nigerians to embrace domestic tourism by visiting Bonny and also invited international visitors and investors to discover the island as an authentic West African destination.
By: King Onunwor
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Jonathan, Diri, Others Laud Firm’s Milestone in Bayelsa     …Says Project Will Drive Industrialisation, Create Jobs

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Nigeria’s ex-First lady, Dame Patience Jonathan, Governor of Bayelsa State, Senator Douye Diri, and the Managing Director of the Niger Delta Development Commission(NDDC), Chief Samuel Ogbuku, have commended a Bayelsa-based firm, Azikel Group for its commitment towards industrialising the state and the Niger Delta region.
They spoke while inspecting the Crude Distillation Unit (CDU) and other facilities recently at the Azikel Refinery in Obunagha Community of Yenagoa Local Government Area of the state.
They pledged continued support for the successful completion of the multi-billion naira refinery project.
In his remarks, Governor Diri represented by his deputy, Dr Peter Akpe, expressed satisfaction with the progress made so far by the company, describing the refinery project as a major step towards industrialising the state, creating employment and opening new economic opportunities for the people.
He congratulated the President of the Azikel Group, Dr Azibapu Eruani and his team on the successful procurement of the CDU, which is the most critical component of a refinery, describing the feat as a significant milestone towards completing the project.
He said industrialisation remains an integral part of his Prosperity Administration’s agenda, noting that government’s responsibility was to create an enabling environment for businesses and investments to thrive.
According to him, the state government’s ongoing road projects were designed to improve connectivity and provide easier access to industrial investments, including the refinery.
The governor urged Bayelsans to take advantage of the opportunities that would emerge from the project, particularly employment and skills development, and warned the people against commercialising  opportunities meant for them.
“The Prosperity Government, which is the agenda that we propagate, has industry and industrialisation as one of the major things. As a government, our business is to provide or enhance ease of doing business.
“Our universities have got graduates that can fit into most of the levels that will be available”, he said.
The State Chief Executive urged the people of the local communities to develop the capacity to participate meaningfully in the investment.
Also speaking, former First Lady, Dame Patience Jonathan, applauded the Bayelsa State Government for supporting the project, particularly through infrastructure development and improved road access to the refinery.
She said the investment was significant because Bayelsa had traditionally depended heavily on government, stressing that sustainable development depended more on investments that create wealth than totally relying on monthly salaries and allocations.
Dame Jonathan described the refinery as an investment that should receive the collective support of government, communities and other stakeholders, saying its benefits would extend beyond the company to the wider economy.
According to her, “It is not the amount of money you get at the moment, but the investment you put on ground that matters.
What we are doing is not for you alone; it is for all of us.”
In his remarks, the Managing Director of the Niger Delta Development Commission, Dr. Samuel Ogbuku, stressed that the refinery would have a multiplier effect on Bayelsa’s economy, particularly through job creation and increased business activities.
Dr. Ogbuku maintained  the project could also  boost traffic at the Bayelsa International Airport by attracting investors, contractors and other business interests into the state.
The NDDC helmsman stressed  the need for Bayelsans, particularly young people not to be spectators to the investment but rather prepare and position themselves to benefit from the opportunities it would create.
He also lauded the state government for improving road access to the refinery, saying the infrastructure had helped to make the investment more accessible and demonstrated that the state was preparing for the economic opportunities associated with the project.
On his part, the President of Azikel Group, Dr. Azibapu Eruani, described the project as a major industrial milestone for Bayelsa and Nigeria, saying the refinery had reached a critical stage with the arrival of the CDU.
He disclosed that the refinery, with a capacity of 25,000 barrels per day and an investment value of about one billion dollars, would produce petrol, diesel, aviation fuel, kerosene, LPG, naphtha and heavy fuel oil.
Dr. Eruani said the arrival of the CDU represented the culmination of eight years of work and marked a significant step towards actualising the refinery project.
He explained that the CDU took more than three years to build in South Korea before being transported to Nigeria on a specially chartered vessel.
Chairman of the Bayelsa State Traditional Rulers Council, King Bubaraye Dakolo, former Chief Operating Officer, Refinery and Petrochemical of the NNPC, Mr. Mustapha Yakubu, among other dignitaries also delivered goodwill messages at the event.
By: Ariwera Ibibo-Howells, Yenagoa
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AKG To Purchase More Aircraft —-Targets 10 Fleets this Year

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The Akwa Ibom State Government has announced plans to expand the fleet of its state-owned airline, Ibom Air, with the acquisition of an Airbus A220-300 aircraft.
The Commissioner for Information, Dr Aniekan Umanah, disclosed this to newsmen recently in Uyo, saying the state government would travel to Montreal, Canada, to finalise documentation for the purchase.
Umanah said the aircraft is expected to arrive at the Victor Attah International Airport on August 30, 2026, bringing Ibom Air’s fleet to 10 aircraft.
He described the planned acquisition as a milestone for the state’s aviation sector, adding that it supports the government’s ambition of positioning Akwa Ibom as a major aviation hub for business, tourism and investment under its ARISE Agenda.
The commissioner also identified tourism as a major driver of the state’s economy outside crude oil revenues, saying the government remained committed to developing the sector.
He said the expansion of Ibom Air would improve connectivity and create opportunities for young people seeking careers in aviation, while strengthening links for businesses and families.
According to him, the arrival of the Airbus A220-300 would further demonstrate the state government’s commitment to improving connectivity and supporting economic growth.
Apapa Customs Command Regs N323 Bn Revenue In July
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Nkpemenyie Mcdominic, Lagos
The Nigeria Customs Service (NCS), Apapa Area Command, has posted an unprecedented revenue collection of ?323 billion in July 2026, the highest monthly figure ever recorded by the Command.
The landmark performance further underscores the strong results achieved under the leadership of Comptroller Emmanuel Oshoba, who earlier guided the Command to another record haul of ?304 billion in October 2025.
Comptroller Oshoba  disclosed this  during the monthly meeting with Deputy Comptrollers of Terminals and Unit Heads held on Tuesday, 11 August 2026.
He attributed the record collection to the combined impact of policy support, operational reforms and improved compliance across the Command.
In a press statement issued by the Public Relations Officer of the Command, Chief Superintendent of Customs (CSC) Isah Sulaiman, the Customs Area Controller specially commended the Comptroller-General of Customs, Bashir Adewale Adeniyi, MFR PhD and the Service management team for their commitment to the ongoing modernisation of the Nigeria Customs Service.
“We recognise and acknowledge the CGC’s devotion and dedication to the modernisation project of the Nigerian Customs Service.
“The management team has introduced several innovations that have streamlined our activities and given us clear direction,” he said.
Comptroller Oshoba noted that the reforms are already delivering measurable results. He highlighted the improved performance of the B’Odogwu system, which had earlier faced challenges but has since been enhanced and is now producing strong outcomes.
He also commended the One-Stop Shop (OSS) initiative for accelerating cargo delivery time and creating a more predictable business environment that encourages legitimate importation.
“Another important development is the Authorised Economic Operator (AEO) framework, which currently has more than 200 beneficiaries. This has positively impacted the revenue profile of the Command,” he added.
Intelligence-driven enforcement operations, he said, have further strengthened compliance where officers and men of the Command have intensified interventions that detect false declarations and ensuring compliance with the Service valuation principles to protect national revenue.
The CAC also specifically credited the enabling business environment created by President Bola Ahmed Tinubu, GCFR, particularly the relative stability in the foreign exchange mmarket.
He explained that a more predictable forex regime has allowed business operators to plan better, make informed decisions and conduct trade with greater confidence while challenging officers to examine their individual contributions beyond routine revenue generation.
“In your Area of Responsibility, you must ask yourself, apart from the normal revenue generated by your Unit, what is your own contribution in terms of intervention? What have I added?” he asked.
The CAC stressed the continued importance of trade facilitation and ease of doing business describing the current operating environment as more predictable and conducive to growth.
He directed that disputes should be resolved promptly where consignments require further scrutiny, officers must follow proper documentation and the Post Clearance Audit (PCA) process.
On stakeholder relations, Oshoba issued a clear directive, “When you interact with stakeholders, let them leave your office with hope rather than despair. As a leader, do not allow anyone who comes to you to depart feeling hopeless or depressed. Give people hope.”
He acknowledged the valuable cooperation of stakeholders and sister agencies, noting that their support has improved compliance and restored greater sanity to the business environment. Officers, he said, must continue to build trust through professionalism, respect and collaboration.
Comptroller Oshoba further urged personnel to uphold transparency and discipline, work smart, remain up to date with evolving digital processes and consult more experienced colleagues when necessary.
He described effective leadership as a collective responsibility, calling on Staff Officers to support Deputy Controllers in reinforcing discipline and fostering a healthy work environment rooted in compassion, empathy, teamwork and genuine concern for the welfare of subordinates.
The CAC called for heightened security consciousness, proper supervision, continuous in-house training and full compliance with approved procedures.
He charged all Units to sustain the current momentum, deepen professional development and remain focused on productivity and service delivery.
By: Enoch Epelle
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