Editorial
Modular Refineries And N’Delta Economy
The Federal Government recently licensed some investors to establish modular refineries in Nigeria. This is in keeping with its promise to allow for more private investor participation in the ownership and operation of refineries, especially in the Niger Delta region, as a way to curbing illegal refining and shortage of petroleum products in the country.
Only a few weeks ago, former President Olusegun Obasanjo performed the ground breaking ceremony of one of such refineries in Bayelsa State, one of the heartlands of the Niger Delta region. There are also indications that another modular refinery would take off soon in Delta State, while similar initiative is being considered in Abia State.
The Tide views these developments as heartwarming and a pointer to the fact that the Niger Delta region would soon shed the toga of a sleeping stakeholder in its God-given natural resources and become an active player.
This is an opportunity that must not be allowed to pass by in the Niger Delta region. It is high time private investors in the region rose up and took advantage of the opportunity.
Essentially, we expect Rivers State to play a leading role in the modular refinery project. Our position is predicated on the fact that the state remains the hub of oil and gas industry in Nigeria. The establishment of modular refineries in the state will, no doubt, have positive multiplier effects on the economy and the people. Besides providing jobs and boosting rural economy, the worrisome issue of black market and activities of illegal refinery, also known as “kpofire” operators, which have been ravaging the environment, would be minimised. Moreso, the soot menace in the state, which is part of the fallout of illegal refining activities, and its inherent health dangers, would be curbed to a large extent.
We, therefore, urge private investors to interface with the Rivers State Government with a view to making the state a major player in realising the vision of the modular refinery policy.
It would be recalled that the then state government under the leadership of Dr. Peter Odili cogitated the idea of establishing a Rivers State-owned refinery which, unfortunately, the succeeding administration of Rotimi Amaechi jettisoned. The modular refinery project therefore provides the state another window to actualise that dream.
We recall that the present administration led by Governor Nyesom Wike has, in several fora assured investors of an enabling environment for investments to thrive. We believe that investors can take advantage of the current policies of government to float the modular refineries in the state.
The refineries if put in place will certainly contribute to ameliorate the incessant fuel scarcity and its attendant hardship on the people.
We believe also that the refineries will curtail the practice of sending the country’s crude abroad for refining, only to spend scarce resources to import the refined products back to the country. Moreso, the money being spent on the existing refineners without commensurate output could be invested in other areas that would benefit the economy better.
While we encourage various state governments, particularly, those in the Niger Delta region to embrace the initiative, it must not be an opportunity to embark on a project that would only be abandoned half way. Care must be taken to ensure that such refinery project must be one with world standard quality to be handled by reputable contractors with best practices.
The Tide thinks that deliberate efforts should be made to identify most of the youth involved in illegal refining of petroleum products and perhaps, horn their skills further to contribute legally and meaningfully to the economy through the modular refinery initiative.
However, a note of caution must be sounded here. The Federal Government, in implementing the policy, must ensure that the modular refinery licences are issued to individuals or outfits with the capability and good intention for investment. The initiative of modular refinery must neither be politicised nor allowed to die a premature death.
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Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
Editorial
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