Business
Senate To Strengthen Gas Flare Laws …Set to Punish Nigerian Accomplices
The Nigerian Senate has identified the fact that if Nigeria must meet up with the National Gas Flare-out Target of January 2030, it must have a working legislation, equipped with commensurate penalties for gas flaring offences in the nation.
The Senate has also made it clear that Nigerians who man the Petroleum Ministry and regulatory agencies are as much culpable to gas flaring offences as the multinational oil companies themselves.
These were part of issues raised at plenary, as the Senate considered a bill titled: Gas Flaring ( Prohibition and Punishment bill) 2016 sponsored by the Chairman, Senate Committee on Gas, Senator Bassey Albert Akpan.
The bill among others seeks to address the inadequacies of the 1979 Act; bring gas flare penalty in tune with current economic realities and ensure the achievement of the National Flare out Target of January 2030.
Sen Albert Bassey in his lead debate decried dangerous environmental and energy waste practices in the country’s petroleum industry.
Akpan noted that the flaring of natural gas was one of the most dangerous environmental and energy waste practices in the country’s petroleum industry.
He said that gas flaring had adverse effect on the environment and human health.
The lawmaker added that it had resulted in economic loss, deprived the Federal Government of tax revenues and trade opportunities and deprived consumers of clean and cheaper energy source.
His words: “Available data from the NNPC has shown that Nigeria lost billions in revenue last year. The volume of gas flared is sufficient to generate 3.5 megawatts of electricity. This is not to say the quantifiable social health and environmental impacts
‘It appears that the euphoria of oil discovery and commencement of production in 1958 blinded Nigerians as there was no provision to handle gas in association with the oil.
Government neither stipulated any law nor guidance during the nascent period of our oil production history
“All efforts to stop the flaring of natural gas has not been effective and Nigerians have remained the victims of lack of Gas Flaring Prohibition Act,” he said.
According to the lawmaker ,the bill when passed into law, would help to provide a strong legal framework for effective monitoring and regulation of gas activities in line with current realities.
He stressed that the bill sought to ensure achievement of the national flare out target of January 1, 2030 in line with the United Nations Charter.
In his contribution, the Chairman, Senate Committee on Finance, Sen. John Enoh, said it was disheartening that Nigeria was still battling with stopping gas flaring and called for the passage of the bill in order to put strict measures in place to tackle the problems posed by the flaring of gas.
“We remain an amazing country especially because since 1958 up till now, we are still talking about what to do about gas flaring. So we have to put in measures to make it expensive to flare gas,” he said.
Senator Ben Murray Bruce lamented that gas flaring has continued in Nigeria because the laws against the act are toothless and obnoxious.
Senator Bruce noted that the practice thrived because Nigerians who man the ministries and regulatory agencies are unpatriotic and either allow the foreign companies flare the gas while they look the other way or allow them evade substantial punishment.
His words, ” Nobody ever pays attention to these incompetent people who should be protecting Nigerians.
“I agree we go for the foreign companies because they are very irresponsible themselves but we must deal with the issue of Nigerians who are not patriotic. We must discuss the issue of punishing these Nigerians.”
Nneka Amaechi-Nnadi
Business
FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions
Business
CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation
The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.
In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.
However, with time, the need has arisen to streamline these provisions to reflect present-day realities.
“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.
“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.
According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.
Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.
They must also create separate accounts to warehouse processing charges collected on excess withdrawals.
Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.
However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.
The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.
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