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Editorial

Pass PIB, Now

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On September 30, the Petroleum Industry Bill (PIB) scaled first reading in the Ninth Senate.
The bill is expected to return to the floor of the Senate next Tuesday for second reading and formal debate. And the first reading comes barely 48 hours after it was re-transmitted to the National Assembly by President Muhammadu Buhari in a letter read by the Senate President, at the resumption of plenary on September 29.
But this is not the first time that the PIB has gone through extensive legislative interrogation in the National Assembly.
Indeed, almost 20 years after it was first introduced on the floor of the National Assembly, the PIB has passed through several alterations and debates without success, leading to it being split into different pieces of legislation, and passage of the Petroleum Industry Governance Bill (PIGB), for the first time in May, 2017, and its concurrence by the House of Representatives, later that year.
Unfortunately, Buhari withheld assent on the PIGB in July, 2018. By a presidential communication of July 29, 2018, addressed to the Senate and House of Representatives, the President referred to constitutional and legal reasons why he declined assent.
The Tide recalls that the PIGB was articulated to establish a framework for the creation of commercially-oriented and profit-driven petroleum entities that ensure value addition and internalisation of the petroleum industry while promoting transparency and accountability in the administration of petroleum resources as well as fostering conducive business environment for industry operations.
The PIGB was the first tranche of the PIB, which includes the Upstream Petroleum Licence and Lease Administration, Downstream Oil and Gas Administration, and Petroleum Industry Fiscals, and Petroleum Revenue Management, including Petroleum Host Community Fund.
However, on November 4, 2019, Buhari signed the amended Deep Offshore Act 2019, being part of the PIB that incorporates the Production Sharing Contracts, designed to ensure Nigeria gets fair and equitable share of income from natural resources for the first time since 2003.
With the reintroduction of the PIB, which comprises the Petroleum Industry Fiscal Bill (PIFB), Petroleum Industry Administration Bill (PIAB), Petroleum Host and Impacted Communities Development Bill (PHICDB), and renewed optimism in the National Assembly on its passage, The Tide feels particularly glad that the push to perfect the deregulation of all streams in the oil and gas sector is gathering momentum.
This feeling is even more satisfying when we reckon that the new bill has, in addition to the upstream and downstream portfolios in the earlier one, the recognition that the midstream (pipeline) sector holds the key to accelerating the diversification and competitiveness of the industry for increased benefits for the nation’s economy. We charge the NASS to pass the urgent legislation simultaneously.
While The Tide agrees that the oil and gas companies must play pivotal roles in the development of host communities where they make fortunes for shareholders, it is surprising that the Buhari administration has surreptitiously reduced the statutory contributions of the oil and gas firms from the initial 10 per cent in the bill presented to the Eighth NASS to 2.5 per cent in the current bill, thereby denying the region huge chunk of money that would have helped transform communities and empower millions of people.
Even as we note the statutory three per cent contribution from the annual budgets of oil and gas companies to the Niger Delta Development Commission (NDDC) and the 13 per cent derivation paid to the nine oil-producing states from the federation accounts, we insist that the cumulative allocation of about 26 per cent from oil revenue for the development of the difficult region is not too much.
We, therefore, urge NASS members from the region to lobby for increase in the contributable funds to 10 per cent to promote peace, development and progress in the host communities.
Interestingly, the quick passage of the PIB will not only accelerate development through the infusion of more funds into host communities, boosting youth employment and peace in the region, but will serve as a comprehensive instrument for the diversification of the oil and gas sector and the country’s economy.
Indeed, the PIB, when passed and assented to, will bring about more inclusive development away from crude oil to other product lines and by-products, just as it ensures robust engagement between international oil companies (IOCs) and the government in the area of investment and modifications in the Joint Venture Partnerships (JVPs)/cash call obligations.
Besides, the PIB will engender activation and extension of indigenous participation and local content development, just and fair engagement of the oil producing communities and transparency/accountability in an industry that would be more efficient and effective with clear and separate roles for governance and regulatory institutions in the petroleum industry.
It is not in doubt that the delay in the passage of the PIB has been holding down lots of Final Investment Decisions (FIDs) and critical investments in the oil and gas sector. The Tide, therefore, urges the NASS members to fast-track the passage of the PIB to send the signal to the world that Nigeria is serious about an oil sector reform that provides a win-win landscape for all players in the industry. Time is of the essence. There is no better time than now, especially as oil is being found everywhere around the globe.
Of course, with oil production capacity declining by between 10 per cent and 15 per cent annually, and Nigeria struggling to maintain two million barrels per day production quota, it is imperative to speed up the passage of the PIB so that investors can begin to splash the desperately needed $10 billion capital expenditure (CAPEX) annually in the country. This will also help attract the required $20 billion to $30 billion CAPEX yearly to grow Nigeria’s target daily production of three million barrels per day, going forward.
The timely conclusion of this reform process would guarantee legislative certainty and clarity, which the industry needs now more than ever before.
No nation yearning for development will allow various unfavourable fiscal and regulatory frameworks to impede the take-off of an estimated $100 billion worth of projects awaiting FDIs in Nigeria’s oil and gas sector.
We insist that the opportunity cost of this unwarranted delay in terms of industry growth, infrastructure and value addition to the economy and job creation is too high, for the country to continue to toy with the passage of the bill.
We believe that this time around, the Ninth National Assembly will break the jinx and holistically pass the PIB. The lawmakers must know that struggling to pass a bill for 20 years is a shame and a betrayal of the trust their constituents have bestowed on them as representatives.

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Editorial

In Support Of Neighbourhood Watch Revival

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Governor Siminalayi Fubara’s decision to reintroduce the Rivers Neighbourhood Watch, also known as Rivers State Neighbourhood Safety Corps, after six years of its establishment, reflects the Governor’s dedication to the security of the residents of the state. The Neighbourhood Watch, which was established by the previous administration, serves as a community-based security organisation with a primary goal of boosting community safety, especially in addressing the prevalent issue of oil theft in the region.
Neighbourhood Safety Corps has been inactive or inadequately funded for approximately six years as a result of several administrative challenges. Governor Fubara recently convened a meeting with the leaders of the security outfit in a private setting, expressing a firm commitment to rejuvenate the organisation. This initiative is accompanied by assurances of improved assistance and incorporation into the state’s security framework.
The leader of the Corps, Wogbo Lawrence, expressed gratitude to the Governor for the initiative, emphasising the challenges the outfit faces in sustaining its operations with limited support. He mentioned that they had successfully kept about 1,150 personnel engaged throughout the 23 local government areas of the state. The Director-General of the agency, Mike Chukwuma, who is a retired Assistant Commissioner of Police and former experienced police public relations officer (PPRO) in Rivers State, also praised Fubara’s decision.
Governor Fubara’s actions exemplify a comprehensive approach to addressing local security concerns by actively involving communities, thereby establishing a potential model for state governments to interact with local residents on security issues. Nevertheless, the success of this initiative will hinge on its proper execution, adequate funding, and sustained support from the community in the long term.
Following the signing of the bill for the establishment of the agency into law by former Governor Nyesom Wike in March 2018, its complete implementation faced obstacles due to allegations from the opposition All Progressives Congress (APC) in the state. The APC claimed that the security structure was intended to intimidate its members during the 2019 elections, leading to a prolonged legal dispute that was ultimately resolved in the Supreme Court.
The Tide highly commends the Governor for his efforts in revitalising the stagnant institution. If implemented, security will be accessible throughout the entire state. This initiative will facilitate the smooth operation of businesses for all residents. By promoting the establishment of individually designed security systems by states, the prevailing security issues plaguing the nation can be effectively eliminated.
Upon the outfit becoming fully operational, it is important that the state government expeditiously address the outstanding salaries owed to the employees by the previous administration. Resolving these unsettled obligations is essential not only for boosting the morale of the workforce but also for optimising operational efficiency. Unpaid salaries have the capacity to reduce productivity and increase discontent among employees, thereby jeopardising the overall efficacy of public services.
Like any conscientious organisation, the Rivers State Neighbourhood Safety Corps has clear objectives. The objectives are (a) gathering information about crime, crime in progress, suspicious activities and crime suspects away from other things; (b) making available such relevant information on crime, crime in progress; suspicious activities and crime suspects to the police or other security agencies that require it; (c) putting structures in place to ensure that hoodlums and cult groups do not have the opportunity to operate within the state.
Others include (d) undertaking routine motorised patrol day and night; (e) reducing the crime rate and ensuring that offenders are identified and made to account for their misdeeds; (f) following up on arrest of offenders to court and ensuring justice; (g) timely reporting of suspicious activities and crimes in progress to the police or other security agencies; (h) improving relationship between the police and the community as it concerns law enforcement.
Also, (i) contributing in maintaining community peace; (j) providing the police with relevant information that will enhance their understanding of how to effectively police the communities and; (k) assisting the police carry out any other lawful activities in maintaining law and order.
Indeed, the underlying objectives of this legislation are commendable as they reflect the desire for a more secure state. Proper execution holds the potential to offer a greater sense of protection to all individuals. However, Rivers people place a strong emphasis on the agency’s neutrality. There is a lasting concern that it could be misused against political opponents, a worry that has been present since its inception in 2018. Therefore, it will be vital to establish transparency and accountability in its undertakings to address these anxieties and cultivate a truly safe environment for all residents of the state.
Unlike the previous administration, there is necessity to effectively fund the enterprise to guarantee its sustainability. Without adequate resources, the organisation faces a risk of stagnation, which could lead to it becoming inactive once more. Strategic financial investment is obligatory for maintaining operational consistency, as well as for promoting innovation and expansion. Giving precedence to financial backing can establish a strong foundation that enables the enterprise to prosper, overcome obstacles, and ultimately accomplish its mission more efficiently in a continuously changing environment.
Through the implementation of the Neighbourhood Watch programme, it is anticipated that the obstacles currently encountered by law enforcement agencies in the state will be alleviated. This initiative aims to address concerns like delayed police responses to emergencies and mishandling of information, ultimately leading to improved public safety. The outfit is expected to generate employment opportunities for the youth, foster stronger relationships, respect, and trust between the organisation and community members. Residents will feel more actively involved in crime prevention and management. Rivers people should rally behind the Governor in actualising this laudable project.

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Editorial

One Building Collapse Too Many

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The death of nine persons with 31 others injured when a seven-storey-building collapsed along Woji Road in the GRA Phase 2 axis of Port Harcourt on Friday, November 23, 2018, has once again called attention to the level of abnormality going on in Nigeria.
According to reports, the building which was under construction, collapsed after an additional floor was added to it. The government has sympathised with those who lost their loved ones. The Governor of Rivers State, Chief Nyesom Wike, who visited the site also ordered the arrest of the owner and all those involved in the construction of the ill-fated building.
Experts have said that some factors responsible for such occurrences include dominance of quacks in the construction industry, design error, poor construction supervision, conversion of residential buildings to commercial houses, abandoned structures, civil commotion; natural disasters, code of practice, effect of high temperature, developers interference, poor building materials and lack of building maintenance culture, among others.
But basic requirement for approval of building plans is that planning and design should be executed by persons with current licences from the Council for the Regulation of Engineering in Nigeria (COREN), Architects Registration Council of Nigeria (ARCON) and the Council of Registered Planners. There have been cases where building plans of a one-storey building are approved without being certified, and sealed by COREN registered engineers.
It is against this backdrop that The Tide welcomes the swift action taken by the Rivers State Government in setting up a five-man judicial commission of inquiry headed by Hon. Justice Adolphus Enebeli to look into the circumstances surrounding the collapsed building in Port Harcourt. We expect the panel to do the needful and come out with measures that will lead to a permanent solution to the menace and check the re-occurrence of such ugly incident.
We equally urge all stakeholders to place emphasis on use of right materials for construction of buildings and other infrastructure, periodic testing of building materials and concretes during construction, employment of the right calibre of professionals and artisans in the design and construction of buildings, ensure that designs are checked, cross-checked by the right professionals, sealed and approved before construction can commence.
We also suggest that Nigerians should imbibe the practice of adopting preventive, corrective and condition-based maintenance culture and reporting cases of buildings showing signs of failure to the Nigerian Society of Engineers (NSE) and Prevention Investigation and Failure Analysis Committee. By so doing, lives may be saved. Also, there should be a review and enforcement of urban planning laws to regulate building products and processes.
The professional bodies should come together and set up a development control resource centre as it has become obvious that development control in the public sector is not working. Government must come up with specific legislations and set up specific standards on building construction.
We reckon that as long as artisans are left to manage construction processes, and until defaulters are convicted and jailed, building collapse would persist in the country.
Therefore, to avert a repeat of this sad development, the prevailing disregard for professionalism must stop henceforth. Professionals engaged in building projects should be sanctioned if found culpable. Professional bodies in the built sector should as a matter of urgency demand the immediate reconciliation of all the urban and physical planning laws as well as the immediate domestication of the National Building Code.
While we commiserate with the families of victims, an improved level of compliance to constructive principles by construction industry stakeholders is required to check building collapse.

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Editorial

Ugochinyere’s Allegation, Time For PDP To Act

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Some opposition lawmakers, under the aegis of the Coalition for United Political Parties (CUPP), recently raised an alarm over a renewed plot by the 27 lawmakers of the Rivers State House of Assembly to impeach Governor Siminalayi Fubara. The legislators had defected to the All Progressives Congress (APC) from the Peoples Democratic Party (PDP) last December.
The spokesman of the coalition, Hon. Ikenga Ugochinyere, made this claim during a press briefing held in the National Assembly, Abuja. He revealed some leaked court documents signed by the PDP Acting Chairman, Illiya Umar Damagun, and the PDP Secretary, Senator Samuel Anyanwu, to aid the pro-Wike APC interest against a party in Rivers State and to assist in their attempt to remove Governor Fubara from office.
Speaking during the media chat, Hon. Ugochinyere said: “The opposition lawmakers coalition under the main opposition coalition umbrella, the CUPP, today raised serious allegations against the party’s Acting National Chairman, Mr Umar Damagum, and National Secretary, Senator Samuel Anyanwu.
“The lawmakers accused the two party leaders of a covert plot to sabotage the PDP’s interests in an ongoing legal battle involving defected former members of the Rivers State House of Assembly which is part of a desperate and shameful effort to betray their party, destroy all legal efforts and aid the pro-Wike APC elements have the legal backing to attempt their impossible plot of removing the PDP government led by Gov. Fubara out of office.”
He further claimed that the national chairman of the PDP, along with the secretary, shamefully opposed the national legal adviser’s effort to neutralise and prevent the pro-Wike dismissed APC lawmakers from jeopardising the interests of the PDP. The chairman and secretary sought to support the pro-Wike APC lawmakers who were dismissed, hoping to help them regain their lost legitimacy and make another attempt to remove their party’s governor.
No doubt, Ugochinyere’s accusation carries significant weight and raises serious concerns that warrant a thorough investigation to determine its truthfulness. It is particularly disheartening and unfortunate that such assertions are directed at the individuals holding the two highest offices in the party, as this tarnishes the integrity of the institutions they represent. The gravity of the troubling situation cannot be overstated.
We unequivocally denounce the actions of the Chairman and Secretary of the main opposition party in their purported involvement in a plot to impeach the Rivers State governor. It is shocking to witness such a betrayal of trust and blatant disregard for a dedicated party member. The governor has been tirelessly working to uplift the lives of his people and promote development in the state, only to face opposition from within his political party.
It is deeply disappointing to witness the leadership of a major political party prioritise the interests of a single individual over the well-being of the people they were elected to serve. Governor Fubara has been a beacon of hope for the PDP and residents of Rivers State, and his dedication to good governance should be celebrated and supported, not undermined by those within his party. The move to impeach him reeks of political opportunism and a lack of regard for party commitment and loyalty.
Though the PDP Governors Forum and the Board of Trustees (BOT) have condemned the move to unseat Fubara, however, to truly safeguard democracy and party dignity, they must do more than offer solidarity. They must proactively mobilise their party machinery and thwart the nefarious plans of those seeking to subvert the party’s interests. They should move against the defected 27 lawmakers and the machinations of the APC. By denying these individuals a platform within the PDP, both organs can effectively neutralise their ability to disrupt the affairs of the once formidable PDP.
Other organs of the party should collaborate and resist the chairman and the secretary. These two officers have caused enough problems for the opposition party and do not deserve to continue in their offices. The current crisis in the PDP is attributable to them and their cohort, former Governor Nyesom Wike. The constant power struggles, lack of respect for party laws, and questionable decision-making have led to a loss of trust and support from party members and the general public. The PDP must take swift action to remove these individuals from their positions to restore unity and credibility within the party.
Stakeholders must take immediate action to prevent the potential demise of the PDP. Allowing the current crisis, fueled by the self-serving actions of the implicated officials, to continue unchecked could lead to irreparable damage. These leaders must prioritise the party’s unity over personal interests. Every member must work to safeguard the PDP’s future and reinforce its role as a vital opposition force. The time for decisive intervention is now; complacency could ultimately seal the party’s fate.
Ugochinyere’s allegations demand a prompt and transparent response from those implicated; silence may be interpreted as tacit admission of guilt. The party organs must act decisively to reclaim their party. It is disheartening to witness a once awe-inspiring political party struggle to present a cohesive front, particularly with the 2027 elections looming. This fragmentation signals a troubling departure from the PDP that Nigerians once revered, raising concerns about its future viability and relevance in a rapidly evolving political landscape. Unity, discipline, and internal democracy are essential for the party’s revival.

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