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Bodo Community And Shell Compensation

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Even as most Nigeri
ans currently struggle with the effects of the austerity measures declared by the Federal Government in response to the present economic reality in the country, the people of Bodo community in Gokana local government area of Rivers State are celebrating their economic fortune.
From the right, left and centre of this Ogoni community, many new buildings are being erected, old ones undergoing massive renovations; new fishing gears, canoes, vehicles and wholesome household items are being acquired.
This socio-economic boom in Bodo is as result of the N25 billion compensation paid to the natives by the Anglo-Dutch oil giant, Shell Production Development Company of Nigeria (SPDC) for a massive oil spill in the area in 2008.
Reliving the situation in an interview with The Tide in his house on Thursday, the Chairman, Bodo Council of Chiefs, Chief Livinus Kiebel, said “Bodo is agog. People who have not seen N10,000 before in their life are receiving at least N600,000.00 individual claims, as compensation, so you can see the joy in our faces, people dancing and women celebrating. It has never happened before in the community.
It is a long battle that started since 2008 when the community suffered a major oil spill from SPDC’s 28-inch pipeline from Bodo to Bonny Trans Atlantic, laid as far back as 1958,” he said.
He said due to the effect of salt water and corrosion on the pipes, there was rapture eruption and spill which gushed out uncontrollably for over one month polluting the water, killing seafoods, mangrove and in face all the acquatic life in the area.
Kiebel stated that when the community drew the attention of the oil company to the serious situation, “as usual, SPDC denied responsibility and started giving one excuse or the other. It said the spill was caused by a third party and illegal bunkering activities. And for over one month, the crude kept gushing.
“But we stood our ground, insisting that Shell must pay compensation. When we realised the company would not budge, we took our matter to the government through the Ministry of Environment  at the state and federal levels and also drew the attention of some relevant  NGOs and civil society organisaitons”, he said.
The Bodo Chiefs councils chairman remarked that when SPDC discovered that Bodo community meant business, they brought their experts and because of the influence of the joint negotiation between SPDC, Government, NGOs and civil society groups, the company accepted the spill was as a result of equipment failure and there fore accepted responsibility.
He disclosed that at first, the company applied its divide-and-rule system by covnering the youths and promising to pay them N10 million and that this angered the youths who reported the ploy to the entire community.
Kiebel, who is a former local government chairman said the community hired the services of a legal luminary and son of Ogoni, B.M Wifa (SAN) who then sued SPDC before a Federal High Court in Port Harcourt.
When that was moving at a slow speed because of the oil politics in Nigeria and the unwillingness of Federal Government to show interest, the community decided to drag Shell to The Heague.
“One of our sons, a lecturer at the University of Port Harcourt, suggested a legal firm, Leighday and Company – a legal firm which he uncovered through research had successfully handled similar matters in Africa insisting we could get justice through the law firm,” he continued, saying Leighday effectively handled the matter.
According to him, representatives of the firm were in Bodo Creek to Bonny and all over the community boarders to see the extent of the spill and damages and at last sued for both individual and communal claims.
Form more than six months, he said Leighday law firm interviewed our people, filmed and captured in many forms, cases of those whose livelihood depend on the sea and after the legal battle, Shell settled for a compensation of N25 billion, which was below but we decided to accept the offer.
Commending the Leiyhday law firm, Kiebel said they were professional and straight forward in their approach and the ability of the firm to secure justice for Bodo community has brought transformation to the area as the people happily invest their money into many economic activities.
One of the women told The Tide that, the name Leighday is a source of big joy to her and her family.
“I have five children. I received a huge sum and my children also got theirs individually and when we pooled the money together, it was like a big dream.
I thank Leighday, I thankGod for the turn around the development has brought to my family.
The respondent who identified herself as Mama Lebari noted that even women and youths who do not know how to speak English Language all know and sing with the name Leighday.
Another respondent, Mercy Job said, “I now own my own beauty Salon. I leant Salon business for past 5 years but could not open my own shop.
But today this big shop is mine and the next store with provisions and foodstuff is also mine. I thank Jehovah for his blessings.
“If I marry and born any child whether male or female, I don’t care, I will name that child “Leighday” to mark the time I met this turn around in my life,”she said.
Job said her family was living in a very small family house of three rooms but today, they have almost completed a five-bedroom flat with a three-room boys quarter.
A Bodo-based businessman who hails from Abia State, Charles Amobi, said he deals on building materials and that the economic transformation has reflected well in his business.
“The sale I normally make for one week before, I atimes make that in one day and my customers pay instead of buying on credit. I hope that this situation will remain,” he remarked.
The Tide gathered that churches in the community are also richer because of the economic boom in the community. Chief Kiebel who confirmed this said, “my church, St Patrick Catholic Church, has gotten N20 million through tithe and appreciations for members who received the compensation.
As a mark of appreciation, the traditional ruler also said the community was arranging a special package to Leighday legal firm which he could not disclose to me as a way of appreciating the firms support to his people.
However, the good fortune is not going without adverse effects on the community.
According to kiebel, two cases have been brought before his palace. “Some husbands have fallen apart from their wives. They asked their wives to bring their share so that they could combine it as part of joint account but the women refused and are asking for divorce instead,” said Kiebel.
He also said, that more young men are acquiring wives now that the money is available.

 

Chris Oluoh &

Illegal Refineries being destroyed by Naval Officers in Warri recently

Illegal Refineries being destroyed by Naval Officers in Warri recently

Lydia William

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Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

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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.
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NLC Faults FG’s 3trn Dept Payment To GenCos

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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.
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Oil & Energy

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

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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,”
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