Editorial
OML11: RSG’s Bold Step
The history of Oil Mining Lease (OML11) in Ogoniland in Rivers State is a long and tortuous one. But the most important thing about this vast oil and gas producing oil field is that the Rivers State Government, under the watch of Governor Nyesom Wike, has purchased a stake in it.
Governor Wike, in a state broadcast on September 30, 2019, announced that the state government had acquired the 45 percent equity stake belonging to Shell Petroleum Development Company (SPDC) which had operated the facility since 1958.
According to him, the government acquired the SPDC’s equity interest in OML11, situated in Ejama-Ebubu Community in Eleme Local Government Area.
While espousing what the State stands to benefit from such a bold initiative, the Governor indicated that the interest of the State was paramount, as it acquired the SPDC’s 45 per cent equity interest to the tune of $150 million.
Governor Wike said “that rather than stand by and watch other persons or group purchase SPDC’s 45 per cent interest in that OML11 and further exacerbate the poverty of the people of the State, a responsible and responsive state government should weigh in and bid for the purchase of SPDC interest already set down for auction”.
He further indicated that it would be in the overall interest of the State, the other Federating States and the Federal Government to do so, stressing that he had further directed the relevant government agencies to take immediate steps to liaise with any financially capable companies to partner with the Rivers State Government to ensure that the said oil field comes on stream within 15 months.
He equally disclosed that the State government would graciously concede some portion of its 45 per cent equity interest to all oil-producing communities within OML11, to enhance mutual ownership, participation and sharing in the benefits of these resources.
While further advancing reasons for the State government’s action, the Governor said an oil spill caused by SPDC’s oil pipeline in Ejama-Ebubu Community since 1970, which had been an issue of litigation, has remained unattended to uptill this day, contending that Rivers State has suffered the worst impact of environmental degradation resulting from oil-related operations.
Most importantly, he noted that it has become unlikely that for peace and security, the people of Ogoni would welcome SPDC on their land forming part of OML11, coupled with the fact that a lot of revenue is lost to the Federation Account accruable to the 55 percent stake of the Federal Government in OML11 and the rest of the Federating States due to non-production by the facility.
According to him, Rivers State Government has continued to lose 13 percent of its derivation fund from the 55 percent stake of the Federal Government in that field for nearly 30 years now, which revenue would have transformed the state and its people for the better.
The Tide recalls that OML11 is one of the most important oil blocks in Nigeria, in terms of oil and gas production in the country, accounting for production of 28,000bpd of crude, and contains 33 oil and gas fields scattered in the four Ogoni-speaking local government areas of Rivers State.
Unfortunately, the operatorship of the oil facility has been dormant for 26 years now after the Ogonis sacked SPDC following the hanging of environmental activist and writer, Ken Saro-Wiwa and nine of his kinsmen, among other factors.
To say that Ogoniland, home to OML11, has a very chequered history when it comes to oil and gas exploration and engagement with international oil companies, is to state the obvious. We say so because from 1958, when SPDC began oil exploration in Ogoniland till date, the entire landscape has apparently been at the receiving end of the various environmental hazards that have accompanied oil and gas production. Curiously enough, the people of the area and by extension, the whole of Rivers State have continued to bear the brunt of oil politics over the years.
The Tide agrees no less with Governor Wike that the investment in OML11 would not only address the debilitating problem of poverty but also open vast socio-economic opportunities for Rivers people and all those resident in the state. We, therefore, commend the government for this bold initiative of going into investment in the oil and gas sector.
The decision by the government to concede some portion of its 45 percent equity interest to all the oil-producing communities in OML11 is a welcome development. This would no doubt offer all the stakeholders a sense of belonging.
We, however, implore the State government to give special consideration to local content in partnering with competent companies to drive the project. There is no denying the fact that several qualified Rivers citizens are out of job or not accommodated within the oil and gas sector due to extraneous and other primordial considerations. Expectedly, this bold step by the government would bridge this yawning gap and offer the people the much-needed succour and hope.
There is also the need for the government to carry along all stakeholders for this lofty venture to achieve the desired results.
Also, this is the time for all stakeholders to throw their weight behind the government, and eschew all forms of bickering and agitation that may thwart or truncate the good intention of the Wike administration in acquiring the oil facility.
It is a good thing that this is coming at a time when the dust raised by the varied conflicts surrounding the OML 25 in Kula Kingdom in Rivers State has settled. The Belemaoil Development Model can be replicated in Ogoniland for the overall wellbeing of the people. This is definitely not the time to play politics with this current Rivers State Government’s bold initiative.
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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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