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Reps Okay Bill To Plug Revenue Leakages In Oil Sector

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6 years ago

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The House of Representatives, last Wednesday, passed a bill seeking to help plug leakages in government’s streams of income in the oil sector for second reading.
This followed a motion by the Deputy Majority Leader, Ahmed Wase, at plenary, presided over by Speaker Yakubu Dogara in Abuja.
Moving the motion, Wase (APC-Plateau) noted that as a result of lack of amendment of the Act, government has lost 21 billion dollars since 2008 when its review was due.
“Government loses about 8 million dollars daily as a result of lack of review,” he said.
According to him, a Bill for an Act to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act, 1999, will help to provide more efficient methods of computing accruable revenue of government.
“It will improve the revenue of the government of the federation.
“Such additional revenue can adequately fund part of our budget deficit, boost the economy and improve living conditions of Nigerians.
“It will improve the petroleum industry governance,” he said.
According to the lawmaker, the bill seeks to effect an amendment in the Principal Act (Deep Offshore and Inland Basin Production Sharing Contracts Act, 1999) in order to plug leakages in government revenue streams and ensure the Federal Government maximises sufficient royalties from Production Sharing Contracts (PSC) between NNPC and International Oil Companies (IOCs).
“PSC was widely introduced in 1993 to address some of the issues faced by the Joint Operating Agreement (JOA) between the NNPC and IOCs and also to provide a suitable agreement structure for encouraging foreign investment in offshore acreage.
“Under these arrangements, the NNPC is the holder of the concession while the IOC is the contractor.
“In 1993, the NNPC entered into PSCs with eight IOCs and Nigeria is believed to have attracted much needed additional foreign investment as a result.
“These new PSCs attracted IOCs due to their favourable fiscal and legal regimes, as IOCs were given a higher profit share for the more marginal and high risk projects off shore,” he explained.
Wase said in 2000, eight new deep water licenses were offered, of which the terms of the PSC were considered to be tougher for IOCs.
He said the reduced risks involved in finding larger deep water reserves was the main reason for tougher profit oil splits in the 2000 PSC terms.
“In 2005, 14 deep water licenses were offered, of which certain alterations were again made to the PSC model contract,” he said.
He said Sections 16 of the Principal Act was amended by adding a new subsection (3) immediately after subsection (2) of the Principal Act.
Wase pointed out that: “Section 16 (3) In accordance with the provisions of subsection (1) stipulated that a royalty rate by price of 50 per cent should be for the additional revenue in the contract area of the Production Sharing Contracts under this Act.
“And the additional revenue shall be determined by the product of the volume of crude oil or condensate sold and the difference between the actual nominal sales price of the oil or condensate and the nominal value of $20 per barrel, (1993 real terms), at the time of sales, provided that the value of $20 per barrel (1993 real terms) shall be determined based on relevant US All Items Consumer Price Index (CPI) as published by the US Bureau of Labour Statistics,” he said.
He said the amendment was imperative to improving government’s revenue for the overall interest of the people.
“I therefore urge this Honorable House to consider it for passage,” he enjoined.
After a debate on the motion, the speaker, put it on a voice vote and the lawmakers unanimously supported it.
He then referred the bill to the House Committee on Petroleum Upstream for further legislative action.

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Atiku Quits PDP, Says Decision Heartbreaking

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10 hours ago

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July 18, 2025

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Former Vice-President, Atiku Abubakar has resigned from the Peoples Democratic Party (PDP).
Alhaji Abubakar disclosed his intention to leave the opposition party in a letter addressed to the PDP ward chairman in Jada, Jada Local Government Area (LGA) of Adamawa state.
Alhaji Abubakar described his departure from the PDP as “heartbreaking”, saying the party has strayed from the ideals on which it was founded.
“I would like to take this opportunity to express my profound gratitude for the opportunities I have been given by the Party,” Alhaji Abubakar said.
“Serving two full terms as Vice President of Nigeria and being a presidential candidate twice has been one of the most significant chapters of my life.
“As a founding father of this esteemed Party, it is indeed heartbreaking for me to make this decision.
“However, I find it necessary to part ways due to the current trajectory the Party has taken, which I believe diverges from the foundational principles we stood for.
“It is with a heavy heart that I resign, recognising the irreconcilable differences that have emerged.
“I wish the Party and its leadership all the best in the future”, he added.
Alhaji Abubakar’s resignation from the PDP comes days after the opposition coalition politicians adopted the African Democratic Congress (ADC) as their political platform for the 2027 elections.
Among the coalition leaders are Rotimi Amaechi, a former Transportation Minister; Peter Obi, presidential candidate of the Labour Party (LP) in the 2023 election; Nasir el-Rufai, former Kaduna State Governor; and John Oyegun, former Chairman of the All Progressives Congress (APC).
Others include Sule Lamido, former Governor of Jigawa State; Uche Secondus, former PDP National Chairman; Babangida Aliyu, former Governor of Niger State; Sam Egwu, former governor of Ebonyi State; Aminu Tambuwal, former Governor of Sokoto State; and Liyel Imoke, former Governor of Cross River State, among others.

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2027: Group Vows To Prevail On Diri To Dump PDP For APC

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11 hours ago

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July 18, 2025

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A group, ‘Concerned Bayelsa Stakeholders Forum (CBSF),’ has intensified calls on the State Governor, Senator Douye Diri, to leave the Peoples Democratic Party (PDP) for the All Progressives Congress (APC).
The CBSF which comprises members of various political parties, non-partisan citizens and residents of the state also has non-indigenes and people from different religious organisations as members.
Speaking at a world press conference held in Yenagoa, the State capital on Tuesday, the group, through its convener who doubles as Technical Adviser to the Governor on Media/Public Affairs, Snr. Comrade Wisdom Ikuli, passed a confidence vote on Governor Diri, commending his selfless service to the State and the Ijaw nation.
Mr Ikuli averred that there was need for the state to align with the federal government. Citing the benefits of having a government at the centre that can attract development to the state, he noted that the PDP at the national level  had been long enmeshed in crisis.
“The current leadership of the PDP under whose platform the governor is leading the state has been hijacked by few individuals. This poses threats to the interest of the state.
“Presently, our state is standing alone as the only PDP state in the whole of the South South region. The above may not be too much an issue. The greatest challenge here is the hijack of the PDP by few individuals and the very dangerous traps that they have set for Bayelsa in 2027, particularly those that intend to fly the flag of PDP.
“There are concluded arrangements to hide under the excuse of crisis and countless court cases in PDP at different levels to work to nullify the nomination of all candidates that will emerge under the party platform. So, we can imagine the pains, agony and disarray that the state shall experience if the state remains in PDP.
“The ongoing Coalition is also an embodiment of people who conspired to deny Bayelsa State and indeed the entire Ijaw Nation, a second term at the Presidency in 2015. Thus, the coalition can never be an option.
“ It is based on the above that we unanimously appeal to the Governor to defect to the ruling All Progressives Congress (APC) to show southern solidarity with other southern governors who are with Mr. President”, the group said.
“But as we move forward, one of the greatest priorities in the alliance with the centre should be the actualisation of the Agge Seaport that will help to boost the state economy and also bring about unimaginable transformation and prosperity.  In the next few days we shall begin a daily rally on the streets of Yenagoa to prevail on His Excellency to do the needful.
“Finally, His Excellency should ignore all opposing voices against his defection. We say this because they are all fighting to protect their individual political interest without prioritising that of the state and the entire Ijaw nation.
“ We wish to reassure His Excellency that vast majority of Bayelsans are with him and together, we shall move forward”, the CBSF added.
The group thanked President Bola Tinubu for appointing Ijaw sons and daughters into key positions, including Senator Heineken Lokpobiri as Minister of State for Petroleum Resources; Chief Samuel Ogbuku as Managing Director of Niger Delta Development Commission (NDDC); Chief Ebitimi Amgbare as Managing Director, Niger Delta Basin Development Authority (NDBDA), amongst others.
Meanwhile, the CBSF has also charged Governor Diri to prioritize the actualization of the Agge Deep Seaport project, saying it will boost the economy of the state and bring about transformation and prosperity, noting, however, that plans have reached advanced stages for the CBSF to hit the streets of Yenagoa with rallies with a view to prevailing on the governor to defect to the APC.

Ariwera Ibibo-Howells, Yenagoa

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Nasarawa Speaker Advocates Conducive Executive/Legislature Relations 

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12 hours ago

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July 18, 2025

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The Speaker of the Nasarawa State House of Assembly, Danladi Jatau, has called for a good working relationship between the executive and legislative arms of the State for development to thrive at the grassroots level.
The Speaker made the call on Wednesday while hosting councillors from the 13 local government areas of the State in his residence in Lafia, the state capital.
Rt Hon. Jatau said that a good working relationship among the arms of government at the council level was key to development, hence, the need for his call in that direction.
He appreciated the councillors for condoling with him over the death of his younger sister, Hajaratu Jatau, and prayed to God to bless them abundantly.
“I started as a councillor, and today I am the Speaker. There is the need for a good working relationship between you and the elected chairmen for development to thrive at the grassroots. It is in view of this that I want to call on you to give your elected chairmen all the necessary and needed support to succeed. For development to thrive at the grassroots, you must embrace one another and see yourselves as team players,” the Speaker said.
Rt Hon. Jatau also called on them to coexist peacefully among themselves and continue to drum up support for Governor Abdullahi Sule’s administration to succeed.
Besides, he assured them that the state government would soon organise training for them to deliver effective service.
Rt Hon. Jatau also assured them that the state government would pay them their furniture allowance, as well as other benefits, to enhance their legislative work.
Earlier, the chairman of the Nasarawa State Councillors Forum, Mohammed Madaki, who is the Leader of Lafia LGA Legislative Assembly, said that the visit was to identify with the Speaker over the death of his sister.
The leader of the delegation urged the Speaker to see the death of his sister as an act of God and bear the irreplaceable loss.
Mr Madaki assured the Speaker of their loyalty and support at all times.
The chairman, however, appealed to the Speaker to intervene in the training of the councillors as well as the payment of their furniture allowance.
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