Oil & Energy

Reactions Trail Soku Oil Wells’ Victory

Published

5 years ago

November 1, 2020

Some eminent personalities in Rivers State have hailed the Supreme Court judgement that ceded the Soku Oil Wells to the state.
They said the judgement was in the best interest of every Rivers man as it would bring additional revenue to the state.
Before the Supreme Court judgement, last Thursday, the Federal High Court, Abuja, had earlier ruled in favour of Rivers State, directing the Bayelsa State Government to hand over the oil wells to Rivers State.
Unsatisfied with the Federal High Court ruling on the suit, the Bayelsa State Government, in a bid to reclaim the ownership of the oil wells, approached the apex court, demanding that the federal government stopped payment of statutory monthly allocations from the oil wells to Rivers State.
In the suit marked: SC/SC649/2020, which had the Attorney-General of the Federation and Rivers State as Defendants, Bayelsa State urged the Supreme Court to, among other things, bar the Federation Accounts Allocation Committee (FAAC) from deducting earnings due to it from the Soku oil wells.
But the Supreme Court in its ruling, dismissed the Bayelsa State Government’s appeal and directed the appellant to cede the disputed oil wells with all the benefits to Rivers State.
Hailing the judgement, the Amayanabo of Opukula in Akuku-Toru Local Government Area of Rivers State, King Hope Dan Opusingi said the court verdict has confirmed Governor Nyesom Wike as a defender of the inheritance of the Kula people in particular and Rivers State at large.
He explained that the boundary dispute, which had lasted over a long period of years had ceded more than 60 per cent of Kula’s territory to Bayelsa State and thanked Governor Wike for his determination to get the Soku well back.
Meanwhile, the Deputy Governor of Rivers State, Dr (Mrs) Ipalibo Harry Banigo has congratulated Governor Wike and all true patriots of Rivers State on the Supreme Court judgement.
She noted that every action Governor Wike had taken since assuming office in 2015 had been in the best interest of the Rivers people.
According to her, the governor’s determination to pursue the Soku oil suit to a logical conclusion against all odds, was a clear demonstration of his determination to ensure that the interest of the Rivers people was protected at all time.
However, a consultant to the United Nations Environment Programme, Dr Ogbowuokara observed that “the boundaries and demarcations between oil wells, oil fields, towns and villages or between individuals of the Niger Delta did not take into account the relationships that existed between these people”.
Ogbowuokara further said, “the victory in the court and the return of the oil field to Rivers State could bring more income to it, but it could also deepen the anger or perhaps the fury of the loser”.
He advised the Rivers State Government to ensure that the “immediate communities, loser and winner, gain immensely from the benefits. I am of the opinion that it never happens again that shoddy jobs such as the one oil companies do ever happen again”.

By: Stories by Tonye Nria-Dappa

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

1 day ago

February 23, 2026

The Tide

THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.

It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).

The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.

Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.

He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.

Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.

Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.

“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.

He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.

“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

1 day ago

February 23, 2026

The Tide

The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.

NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.

In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.

“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.

Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.

She feared the longstanding conflict could result in the eventual collapse of the country’s power.

According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.

Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance ……… Seeks PIA Review

Published

1 day ago

February 23, 2026

The Tide

The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).

President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.

Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.

The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.

In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.

He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.

Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.

He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.

Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.

“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.

He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.

“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..

According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.

“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.

Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.

“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.

Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.

“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.

According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”