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CTA Tasks FG On Oil Theft, Pipeline Vandalism

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The Center for Transparent Advocacy (CTA) has called on the Federal Government (FG) to be proactive if it hopes to end oil theft and pipeline vandalismin in the country.
Executive Director, CTA), Ms. Faith Nwadishi, who made the call, also stressed the need to be proactive in dealing with the menace,  which has festered for too long.
“The Federal Government needs to commence speedy implementation of the host provisions in the Petroleum Industry Act (PIA) 2021 to curb the alarming incidences of crude oil theft and pipeline vandalism, which is costing the country loss of huge revenues”, she stated.
Nwadishi, who recently spoke with reporters, noted the devastating impact of crude oil theft and illegal refineries on Nigeria’s economy, which relies mainly on revenue from the oil and gas sector to fund its operations.
The 2020 Petroleum Industry Report released by NEITI, indicated that at least 39.16million barrels (mmbls) of crude, valued at N15.71bn as at then, was stolen, with an average loss of 107,293 barrels per day (bpd).
According to the report, Nigeria lost an estimated N15.71 billion worth of crude oil in 2020, N1.67 trillion in 2021, and just from January to April 2022, the country has lost N623 billion worth of crude.
“If we are having crude oil theft of up to over 90 per cent, it means also that we are losing revenue up to 90 per cent, and that is devastating for a country like Nigeria that relies so much on the revenue that it  gets from the oil and gas sector, especially from the sales of crude oil.
“Unfortunately, this issue about crude theft had been going on for a very long time because the government didn’t take it seriously.
“I remember when I was on the  Board of the Nigeria Extractive Industries Transparency and there was a study that was done, as at that time, it was reported at about four per cent of crude oil that was between 2013 and 2014.
“Then crude oil theft was about four per cent and only to be shocked, from official sources, that less than 10 years later we’re losing over 90 per cent. It means that as at the time that crude oil theft was at four per cent, the government was not doing anything about it even though security agencies funding for the protection of the infrastructure was increased,” she said.
Emphasising that Nigeria need to be proactive in the way the menace is handled, she continued that “luckily for us, we have the PIA that has been passed. There’s a component of the host community we need to as quickly as possible begin to implement.
“We need to reengage the community people on how to protect these pipelines in their neighborhood, because people have argued that the reason the crude is stolen is because the people have not gotten anything out of it,” she said.
Nwadishi, however, explained that beyond people in host communities stealing crude, there is connivance of the expertise of the professionals that know how this is done and the security agents.
“This is why the Federal Government needs to tighten security surveillance around the pipelines”, she said.
Speaking on the impact of illegal refineries on the lives of Nigerians Nwadishi said, “we can see now that even the illegal refining in the country is a dangerous venture. People have come out to say that you have these explosions from time to time, people die but unfortunately, we’ve got this one that claimed the lives of over 100 people.
“The reason people go into this is because of unemployment. People are not employed, you have an oil rich country, and unemployment rate is skyrocketing.
“You have young people who are graduates who can’t find jobs and so they join in this criminal gangs because it’s now a gang, it’s now something that people are so much involved in”.

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Oil & Energy

Ex-Lawmaker Volunteers For Petroleum Sector Deregulation 

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An ex-lawmaker, Sen. Ben Murray Bruce, has announced that he is willing to serve as a volunteer in deregulating the country’s petroleum sector.
This follows the ex-lawmaker’s faulting of Nigeria losing over N5trilion annually as a result of fuel subsidy.
Bruce, who represented Bayelsa East Senatorial District in the 8th Senate, on his verified Twitter handle, decried what he described as ignorance and ineptitude of government agencies responsible for fuel subsidy.
“We cannot keep losing five trillion naira annually. I am able and willing, and I volunteer myself to lead the team to deregulate our petroleum sector.
“I will execute this flawlessly such that no Nigerian will be on the street protesting.
“The ineptitude and ignorance of the government agencies responsible for this are mind-boggling,” Bruce tweeted.

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Stakeholders Urge FG To Shift From Fossil Fuel

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Stakeholders in the extractive industry have said that as a fossil fuel dependent country, Nigeria must develop its own strategy to engage in shifting global focus away from oil.
This was the conversation at a recent one day capacity building workshop for media and Civil Society Organisations in Nigeria, organised by the Centre for Journalism Innovation and Development, through its Natural Resource and Extractive Programme, in partnership with Natural Resource Governance Institute.
The hybrid workshop, themed, “Oil Dependency in Nigeria: Imagining a Future Beyond Oil”, had over 50 participants, including journalists from the extractive sector, CSOs, and social media influencers in attendance.
The workshop, according to the organisers, was geared towards improving the understanding of oil dependency and the nexus with energy transition to better communicate the impact on Nigeria and the Nigerian economy.
Senior Officer, NRGI, Ms. Tengi George-Ikoli, explained that Nigeria was at a critical point in its development, hence as a fossil fuel-dependent country, it is important that Nigeria develops its own strategy to engage the shifting global focus away from oil.
“Nigeria must develop its own medium to long term strategy to mitigate the likely export and government revenue losses from a shrinking market base as these countries look to reducing oil reliance beyond 2030.
“Nigeria must make strategic decisions in the way it spends its limited revenues, take economic diversification more seriously, leveraging regional and global opportunities beyond oil, and including new frontier possibilities available in the green economy”, she said.
Also, Deputy Director, Development Practice, CJID, Mr. Akintunde Babatunde, said as energy transition persists globally, Nigeria as a monolithic fossil fuel dependent economy has to prepare for what the shift to cleaner energy sources means for its economy.
“Data is pointing us to the fact that Nigeria will likely lose a majority of its foreign exchange earnings and revenues for both the federal and subnational government.
“In fact, it is already happening, because Nigeria is at a critical point in its development process, it is important for professionals to discuss the way forward on how the decisions we make as a country are more important now than ever”, he said.
Earlier, the Acting Executive Director at CJID, Tobi Oluwatola, harped on the need for capacity building for the media and CSOs, noting that they are in the best position to enlighten the public from an informed perspective.
“It is time for Civil Society Organisations, journalists, and policy experts to have this discussion, most especially as Nigeria plans to achieve net zero by 2060. There is a need for CSOs to be empowered with the right skills to be able to do the right advocacy and accountability work in Nigeria”, he stated.

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Nigeria To Construct Gas Pipeline To Europe Through Morocco

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Nigeria has given the state-run Nigerian National Petroleum Corporation Limited (NNPC) the greenlight to implement a deal on construction of a gas pipeline to Europe through Morocco.
This follows reports of surging demand for African energy supplies from the EU that is seeking to wean itself of dependence on Russian oil and gas.
“This gas pipeline is to take gas to 15 West African countries and to Europe and through Morocco to Spain and others,” said the Minister of State for Petroleum Resources, Timipre Sylva.
“It is only after the engineering design of the pipeline has been made that we will know exactly (what) the cost of the pipeline will be. When that time comes, we will be talking about funding,” he added.
Nigeria is a member of the Opec group of major oil producers and has huge gas reserves – the largest proven reserves in Africa and the seventh largest globally.
On May 30, Tanzania transported 60,000 tonnes of coal to the Netherlands.
Last month, Botswana’s President, Mokgweetsi Masisi, said European nations had “flooded” his country with requests to supply coal.

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