Editorial
That FG’s Directive To Oil Firms
The Vice President, Prof. Yemi Osinbajo, penultimate week, while acting for President Muhammadu Buhari who was on a medical vacation, directed major oil and gas companies operating in the Niger Delta region to relocate their operational headquarters to the region.
Osinbajo who was ostensibly reacting to agitations emanating from his interactions with stakeholders during his tour of states in the region, said it has become imperative for these companies to relocate their operational bases to states where they carry out their exploration activities in order to be in touch with realities on ground.
Apparently piqued by the lackadaisical disposition of these multinationals, Osinbajo charged them to be responsive to the well-being of the host communities as well as protect the environment in which they operate.
Osinbajo’s call came barely two weeks after an alert by the senator representing Rivers East Senatorial District, Senator George Thompson Sekibo, that a major oil firm operating in Rivers State, the Shell Petroleum Development Company (SPDC), had concluded plans to vacate its operational headquarters in Port Harcourt.
That move by SPDC which, expectedly, hardly got public approbation, drew widespread remonstrance in the Niger Delta region – all of whom saw the company’s rather unholy move as adding insult to injury.
The furor caused by Shell’s plan was yet to come down before Osinbajo’s interview, even if somewhat belated.
The Tide, ipso facto, endorses the Federal Government’s directive to the oil firms as it will, in the long run, enhance the economic fortunes of the Niger Delta region and accelerate its human and infrastructural development.
We recall that the Rivers State Government had, to no avail, urged companies thinking of relocating their operational headquarters to jettison such plans.
The Tide thinks that if these oil firms strictly adhere to the Federal Government’s directive, more vistas of opportunities would be opened for the people of the Niger Delta region in the area of employment and manpower development. It will also help in the sustenance of the delicate peace and security now experienced in the region.
Added to that, the Local Content initiative should be strictly followed, just as a review of the General Memorandum of Understanding (GMoU) or the Memorandum of Understanding (MoU) between these companies and their host communities has become imperative. Here, a cue can be taken from Indorama and the host community, Eleme in which the later are partakers (equity shareholders) of the former.
It is in this sense that we want the speedy passage of the Petroleum Industry Bill (PIB) to ensure full participation of oil – bearing communities in the oil and gas industry.
Still, a review of the annual rent and compensation for economic crops and trees in the exploitation of oil and gas in consonance with global standards has also become inevitable.
As it is, the Federal Government must muster sufficient political will in its dealings with multinational corporations who have, for so long, taken their host communities for granted.
Even at that, The Tide enjoins the people of the Niger Delta region to provide the enabling environment by ensuring that peace and security thrives in the region.
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Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
