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Checking Indiscriminate Oil Exploitation In N’Delta

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Before the discovery of oil in commercial quantity in Oloibiri community, Bayelsa State in the late 50s by the Royal Dutch Company, Shell, the people lived a life of contentment, depending on the treasures of their natural environment which earned them their daily means of livelihood.
Today, the community remain scarred with the brunts of oil exploration, bereft of basic amenities and perhaps remembered only for its pioneering role as the area where oil was first struck in commercial quantity in Nigeria. Oloibiri community, no doubt, portrays the dismal catastrophe of unguarded and incautious exploitation of natures energy reserve.
Oloibiri among several other affected communities in the Niger Delta has become case studies of oil pollution and environmental degradation among scholars.
A visit to some communities in Ogoni, Rivers State, such as Bodo, also reveals the sorry state of oil bearing communities. The adjoining creeks and mangrove habitation in the area are now extinct and the once thriving rural economy and communal living is displaced.
No thanks to reckless oil exploration activities which have brought colossal damage to the natural environment, depriving the people of their natural means of livelihood. The effects of these reckless conservation of natural energies are not farfetched.
Apart from the physical damage to the natural environment and pollution of the atmosphere, the people are forced out of their natural abode, to migrate into unaccustomed areas in search of livelihood that are mostly not found.
A former inhabitant of Kozo community, a coastal habitation in Bodo, Gokana Local Government Area of Rivers State, Mr Peter Ledisi, who now lives in Bodo town, told The Tide that he was born in Kozo community and grew up in the area until the sad experience of oil pollution displaced his family.
Ledisi, who is 35 years old, said his parents took care of him and his siblings through the proceeds of fishing, but today he noted life has become so difficult for the family as their means of livelihood is destroyed.
“That place you see (Kozo community) used to be our home for the past decades, we grew up there and pursued life with happiness, we were contented with what nature provided for us through fishing, every growing child enjoying living there because it provided fun for us and filled our desire and passion for game and we also made money from it. Today, we are displaced out of our home by oil pollution, life is now a misery for us,” he lamented.
Another displaced inhabitant of the community, Miss Tornubari Sakpugi, also narrated her ordeal following the devastation of their natural settlement by oil pollution.
Sakpugi, a fish dealer, said her business has collapsed, as her customers can no longer go on their fishing expeditions due to pollutions of the rivers.
“I used to buy fish in higher quantity from fishermen who sojourn to the deep sea for a catch. The business helped me a lot and I was able to provide for my needs, but today things are very hard for me. It is a terrible experience to move out of a place where you earn your daily living to a place where survival is not certain as there is no alternative means of livelihood.
“We want the polluted rivers to be cleaned, so that we can return home. They are talking about UNEP report, but no action is foreseen. We are suffering; the government should do something to help us”.
At Kozo community, she said there was no visibly sign of life, but desolation. The sprawling creeks where the fishermen launched their daily expeditions were laden with thick layers of crude oil. The mangrove reserves that harboured sea food was completely burnt off, one would hardly believe that the settlement once hosted over four thousand inhabitants. Fishermen at some major water-fronts in Port Harcourt also have similar stories to tell.
Iyalla, a fisherman who resides at Ibadan water front in Port Harcourt told The Tide during a visit to the area, that fishing business is no longer lucrative compared to the past. Asked the reason for the sharp decline in the business, he said the rivers have been contaminated with spilled crude oil from bunkering activities.
According to him, years back, fishermen did not have to go to the deep sea before they were rewarded with good catch. But today, he said they have to paddle and wander up the sea amidst wreckages of boats and badges and sometimes return home with little or no catch.
He explained that illegal refining of crude oil and vandalisation of oil pipeline smear the rivers with wasted crude and floating dead sea creatures.
Experts have also identified the reckless exploration of energy resources as the major threats to the natural environment, especially aquatic life.
A Chemical Engineer, Dr Ujile Owajiogak, who spoke with The Tide in an interview in Port Harcourt, said the burning of our natural reserves especially through the “cooking of crude oil” puts the life of the present generation and that of posterity at risk.
The Associate Professor of Chemical Engineering at the Rivers State University, disclosed that it takes over 50 years for a polluted site to regain its lost reserves. Using the experience of the civil war as example, the university teacher said, the bombing of oil facilities in the Niger Delta during the war left in its wake devastating effect on the creeks and coastal channels of the region.
He pointed out that after close to 50 years of the war, nothing has grown in the impacted sites and the flourishing mangrove forest is replaced with nypa palm that has no economic value.
“The indulgence of criminal elements in the cooking of crude oil is very destructive to our ecosystem and has health implication. Research has shown that illegal bunkering will increase cancer in the Niger Delta region. What is the sense in taking a few component of the products and wasting the rest on aquatic life? Our environment was preserved and bequeathed to us by our forebears, but today, we are destroying it. The oil, companies are not helping matters, as they flare gas and cause damage to the natural environment. There are serious health challenges in the region as the people are now endangered species, this is pathetic,” he declared.
In the view of an Environmental Sociologist, Dr Steve Wodu, human insensitivity to the protection of his natural environment has worsened problems of environmental degradation. To him, some of man’s action are tempered on crass ignorance or “deliberate obstinacy,” billed to ruin existence.
“Otherwise what would be the rationale behind indiscriminate burning of natural energy reserves or bad sanitation habits such as littering of wastes and lack of care of the natural surrounding,” he asked rhetorically.
Wodu posited that a new era of posterity can only blossom if we begin to treat our environment with some sanctity with which we treat our life.
Also commenting on the need to check indiscriminate exploitation of nature’s reserve, the Director Institute of Conflict and Gender Studies, University of Port Harcourt, Prof Fidelis Allen, said a blighted environment portrays the nakedness of our civilisation and turns man’s dream into despair.
Allen, who is also an environmental crusader called for a more holistic approach towards the restoration and preservation of the natural environment.
According to him, only through such holistic approach and sound environmental awareness campaign can the ethical violation of environmental rights be curtailed and sustainable environmental growth sustained.
He called on the oil companies operating in the Niger Delta region to always imbibe the tenets of international best practices in their operations and ensure that the natural environment is protected against gas flaring and oil spillages.
He described the Ogoni clean-up exercise as critical to the eventual remediation of other impacted sites in the Niger Delta communities and called on all affected stakeholders to expedite action to make the clean-up exercise a success.
Realising the importance of the natural environment, the American Novelist, Henry Beston warned: “Do not do dishonour to the earth lest you dishonour the spirit of man”. The implication of Beston’s warning is that by destroying his natural environment through unguarded conservation of its resources, man sets to consume himself in an inescapable catastrophe, the possibilities of which are too obvious to be ignored.
However, the production and consumption of energy is today a major indicator of modernisation process. Our modern civilisation is fuelled by the energy sector, particularly oil and gas and thus involves exploratory activities with attendant pollution problems and significant local and global implication. It is therefore suicidal to see that the very natural ingredients that nourish our lives are washed away in the name of technology or economic drive. It is left for us to heed to Beston’s warning or perish.

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No Subsidy In Oil, Gas Sector — NMDPRA

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said there are no subsidies in the oil and gas sector as Nigeria operates a completely deregulated market.
The Director, Public Affairs Department, NMDPRA, George Ene-Italy, made this known in an interview with newsmen, in Abuja, at the Weekend.
Reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CBG), Ene-Italy said, “What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act”.
He insisted that as long as the prevailing CNG market price conforms to the baseline, then the pricing is legitimate.
 Furthermore, the Presidential –  Compressed Natural Gas Initiative (P-CNGI) had said that no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI boss, Michael Oluwagbemi, emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.
For absolute clarity, it said that while pricing matters fell under the purview of the appropriate regulatory agencies, no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI said its mandate, as directed by President Bola Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative fuel and diesel nationwide.
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‘Nigeria’s GDP’ll Hit $357bn, If Power Supply Gets To 8,000MW’

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The Managing Director, Financial Derivatives Company Limited (FDC),  Bismarck Rewane, has said that Nigeria’s Gross Domestic Product (GDP) could rise to $357b  if electricity supply would increase from the present 4.500MW to 8,000MW.
Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country’s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 though the sector has installed capacity to generate 13,000 MW.
In his presentation at the Lagos Business School (LBS) Executive Breakfast Session, titled “Nigeria Bailout or Lights Out: The Power Sector in a Free Fall”, Rewane insisted that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.
He said, “According to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.
“If power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And, due to multiplier effects, GDP could rise to $357 billion.”
The FDC’s Chief Executive said “in the last 30 years, Nigeria has invested not less than $30 billon to solve an intractable power supply problem.
“The initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.
“Twenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.
“The way out is a bailout, or it is lights out for Nigeria”, he warned.
He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan’s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.
Rewane, who defined a bailout as “injection of money into a business or institution that would otherwise face an imminent collapse”, noted that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.
He said, “The President has promised to consider a financial bailout for the Gencos and Discos. With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.”
Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.
Rewane, however, noted that implementing a bailout for the power sector could have a positive effect on the country’s economy if Nigeria’s actual power generation could rise from today’s 4,500 MW to around 8,000 and 10,000 MW.
The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.
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NEITI Blames Oil, Gas Sector Theft On Mass Layoff 

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The Nigeria Extractive Industries Transparency Initiative (NEITI) has blamed the increasing crude oil theft across the nation on the persistent layoff of skilled workers in the oil and gas sector.
The Executive Secretary, NEITI, Orji Ogbonnaya Orji, stated this during an interview with newsmen in Abuja.
Orji said from investigations, many of the retrenched workers, who possess rare technical skills in pipeline management and welding, often turn to illicit networks that steal crude from pipelines and offshore facilities.
In his words, “You can’t steal oil without skill. The pipelines are sometimes deep underwater. Nigerians trained in welding and pipeline management get laid off, and when they are jobless, they become available to those who want to steal crude”.
He explained that oil theft requires extraordinary expertise and is not the work of “ordinary people in the creeks”, stressing that most of those involved were once trained by the same industry they now undermine.
According to him, many retrenched workers have formed consortia and offer their services to oil thieves, further complicating efforts to secure production facilities.
“This is why we told the Nigerian Content Development and Monitoring Board (NCDMB) to take this seriously. The laying off of skilled labour in oil and gas must stop”, he added.
While noting that oil theft has reduced in recent times due to tighter security coordination, Orji warned, however, that the failure to address its root causes, including unemployment among technically trained oil workers would continue to expose the country to losses.
According to him, between 2021 and 2023, Nigeria lost 687.65 million barrels of crude to theft, according to NEITI’s latest report. Orji said though theft dropped by 73 per cent in 2023, with 7.6 million barrels stolen compared to 36.6 million barrels in 2022, the figure still translates to billions of dollars in lost revenues.
Orji emphasised that beyond revenue, crude oil theft also undermines national security, as proceeds are used to finance terrorism and money laundering.
“It’s more expensive to keep losing crude than to build the kind of monitoring infrastructure Saudi Arabia has. Nigeria has what it takes to do the same”, he stated.
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