Business

Governors Lament Rising Petroleum Subsidy

Published

4 years ago

July 8, 2022

Governors in Nigeria under the aegies of the Nigeria Governors’ Forum (NGF) have lamented over the rising subsidy on petroleum products, particularly Premium Motor Spirit (PMS), saying it has placed immense financial burden on States.
NGF, the umbrella body for the 36 State Governors in Nigeria, disclosed this in a memo forwarded to the House of Representatives.
The memo, which was signed by the Head, Legislative Liaison, Peace and Security, NGF, Fatima Usman Katsina, for Chairman of the Forum, is in response to the call by the House for memoranda by the Ad Hoc Committee on the Volume of Fuel Consumed Daily in Nigeria, tasked with investigating the actual amount of PMS the country consumes daily.
Titled “Findings on the Volume of Fuel Consumed Daily in Nigeria”, and dated July 1, 2022, the memo was addressed to the Committee’s Chairman, Abdulkadir Abdullahi.
It stated in part: “Although the operating environment has significantly worsened since the report was released, with NNPC (Nigeria National Petroleum Company) now consistently reporting zero remittance to the Federation Accountant as profit from joint venture, production sharing contract and miscellaneous operations, the position of the forum remains generally the same”.
The governors referred the House to a November 2021 report by its National Executive Council’s ad hoc committee interfacing with the Nigeria National Petroleum Corporation (NNPC) on the appropriate pricing of PMS in Nigeria, which was chaired by Governor of Kaduna State, Nasir el-Rufai, and had governors of Edo, Jigawa, Ebonyi, Akwa Ibom and Ekiti, as well as the Governor of the Central Bank of Nigeria; Minister of Finance, Budget and National Planning; Accountant-General of the Federation, Group Managing Director of the NNPC and the Permanent Secretary, MBNP.
They also recalled how the report noted that the “federation (FAAC) net oil & gas revenues have been declining since 2019 and are projected to decline significantly in 2022 by between N3bn and up to N4.4bn unless action is taken now.”
The memo further read, “The following are some of the major findings relating to the volume of fuel consumed in the country:

“Remittances to the Federation Account Allocation Committee have continued to shrink as NNPC recovers shortfall quite arbitrarily from the Federation’s crude oil sales revenue. FAAC deductions for PMS subsidy are above 2019 levels, even without adjusting for reduced purchasing power of the naira due to inflation and FX rate deterioration.

“An analysis of the average monthly PMS consumption by states showed that a third of the country accounts for over 65 per cent consumption of PMS. The analysis showed that the following States of Lagos, Oyo, Ogun, Abuja, Delta, Kano, Kwara, Edo, Rivers, Kaduna, Kebbi and Adamawa accounted for 65 per cent of PMS consumption in the country. Most states with high PMS consumption either have borders with neighbouring countries or are in close proximity, this has been an avenue for smugglers to benefit from profitable arbitrage opportunities in PMS pricing.

“Households directly consume only about 25 per cent of the PMS that is consumed nationally, with the remaining three-quarters being consumed by firms, MDAs, transport operators or smuggled to neighbouring countries where the PMS price is nearly three times what it is in Nigeria; and of the PMS consumed by households, the richest 40 per cent of households account for over three-quarters of the PMS purchased by households, while the poorest 40 per cent of households purchased less than 3 per cent of all PMS sold in Nigeria.

“In the current fiscal regime, remittances to FAAC would continue to shrink as NNPC recovers this shortfall from the Federation as a result of crude oil price recovery.

“The report recommended a PMS pricing structure that addresses regional arbitrage and smuggling of PMS and provides additional revenue to the Federation Account.

“There is a significant market opportunity for additional export revenue streams for Nigeria to be had given the price parity with our neighbouring countries.

“Privatisation of the three government refineries as is, or after their full rehabilitation if affordable and viable, and expediting the licensing procedure for modular refineries will reduce the recurring government expenditure on refinery maintenance and increase the country’s refining capacity.”

The governors noted that there were also economic risks highlighted in the report. “Fiscal pressures are threatening Nigeria’s recovery, as rising prices continue to push millions into poverty,” they said.

According to the memo, “Rising prices are pushing millions of Nigerians into poverty. Rising inflation between 2020 and 2021 is expected to have pushed an additional 5-6 million Nigerians into poverty.

“Food insecurity is increasing in both poor and non-poor households, with some adults skipping meals. Because inflation is high, even if it remains stable, it will continue to push many more Nigerians into poverty.

“Fiscal pressures are growing unsustainably with the PMS subsidy significantly reducing the flow of revenues into the Federation Account.

“Thirty-five out of 36 states are likely to see transfers from the federation fall (in nominal terms) between 2021 and 2022, with the average decline projected to be about 11 per cent. Most states are already experiencing fiscal stress, with 30 out of 36 states recording fiscal deficits in 2020, including Lagos and every oil-producing state except Akwa Ibom.

“With the projected decline in gross distributable federation revenues in 2022, fiscal deficits and debt burdens will grow even larger and faster. This will mean that transfers from the federation will not be enough to cover even salaries, and certainly not recurrent costs, which are growing in nominal terms.

“With the coming into effect of the Petroleum Industry Act, gross oil & gas revenues could be (much) lower than currently projected because of the new fiscal terms and the earmarking of deductible revenues specified in the PIA, and that could reduce net oil & gas revenues even further”.

Consequently, the NGF stated that greater accountability and transparency around oil and gas revenues “are the only immediate options for easing the pressure on government finances and maximising socially responsible profit gain.”

Business

Entrepreneur Fetes Indigenous Patronage …Tasks Govt, NDDC, Others On Procurement

Published

9 hours ago

August 3, 2026

The Tide

The Managing Director, Izonbakumo Enterprise Ltd, a Bayelsa based welding and fabrication firm in Yenagoa, the State capital, Esther Bakumo Angese has commended citizens of the state for patronising her brand and products.

The entrepreneur gave the commendation yesterday while speaking with newsmen in her office, saying though female folks shy away from learning the welding and fabrication trade owing to its nature, the profession is lucrative and worthwhile.

The CEO advised against Youth idleness across the State, noting that she has been in the welding and fabrication enterprise for 14years now, adding that her passion for the trade was due to her love for designing ordinary irons into beautiful master pieces as finished products.

“I’ve been in this business for 14years now, and still counting. I did my apprenticeship with someone here in Bayelsa State. After my graduation from apprenticeship, I started in a small scale before getting to this current level.

“I’ve trained several apprentices, including two girls. One of the girls is currently doing very well in far away Ebonyi state, and I’m glad about it. I’ve also partnered with the Industrial Training Fund (ITF) in the training of apprentice.

“Women don’t really like Welding and fabrication because they felt it’s a man’s thing, but here am I by God’s infinite mercies and grace. I want to sincerely thank Bayelsans for their patronage. Some of my customers would tell me, ‘I’m buying your product because you’re from this State’. And I so again want to honestly, appreciate all of them for the patronage”, She added.

Meanwhile, Mrs Angese has charged the Bayelsa State Government, the Niger Delta Development Commission (NDDC), and the Nigerian Content Development and Monitoring Board(NCDMB), to consider the Izonbakumo Enterprise and other indigenous welding and fabrication firms based in the State for job placements in the course of contract execution which requires welding and fabrication services.

She alleged that her firm and others lack patronage from the trio of the State Government, the NCDMB and the NDDC while executing projects which involve their trade even though they have the requisite technical know-how.

“I’ve been to Government, NCDMB and NDDC project sites in different parts of this State where Welding and Fabrication are needed, but what I’ve seen and can attest to is the fact that welders and fabricators in this State are sidelined. What we see are welders from outside this State doing all Government, NDDC and NCDMB jobs in this State.

“Bayelsa Welders are far better than many of the ones I’ve seen on Government, NCDMB and NDDC project sites in various sites across this State. Ironically, it’s only when these welding contractors who are given these jobs by them fail to deliver according to specifications and timelines these welders resort to hiring our own here in the state to help them. And so while does the Government, the NDDC and NCDMB not give us these jobs instead?”, She queried.

by: Ariwera Ibibo-Howells, Yenagoa

Business

Jonathan Applauds NCDMB, China’s Model for Shaping Nigeria’s Local Content Policy

Published

9 hours ago

August 3, 2026

The Tide

Nigeria’s former President, Goodluck Ebelle Jonathan has expressed satisfaction over the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, and the attendant benefits accruing to the nation both at the federal and community levels since the emergence of the NCDMB.

The former President said this during his opening address at the 2026 edition of a programme tagged, ‘SweetCrude Dialogue, themed “Through the Python’s Eye: 70 Years of Oil and Gas Production,” at the Nigerian Content Tower (NCT), headquarters of the Nigerian Content Development and Monitoring Board(NCDMB) in Yenagoa, the Bayelsa State capital

The erstwhile Nigerian leader stated that over time, the NCDMB has assumed the critical role of business enabler, recalling that he gave assent to the NOGICD Bill which established the Board with enthusiasm and promptness in 2010.

Jonathan also said the inspiration to establish the Board was bourn out of his visit to China as head of a trade delegation to that country during his days as Deputy Governor of Bayelsa State between December 1999-2005, saying almost everything used in the Chinese oil industry was sourced locally.

He said China became a major global player in oil and gas after the massive discovery of crude oil at the Daqing Oilfield in the northeastern Heilongjiang Province in 1959, three years after a similar discovery in Otuabagi community in the Oloibiri district of present-day Ogbia Local Government Area of Bayelsa State.

He averred that the China experience set him wondering why the case of Nigeria in that sector was so completely different, noting that upon his return to Nigeria from his Chinese trip as deputy governor, he was profoundly upset over the enormous economic losses arising from near-total dependence on foreign expertise, equipment, machinery, production inputs, and technology, among other things.

The former Nigerian Leader commended the NCDMB for its successes and the organisers of the Dialogue, ‘De Mangrove Conversations’ led by Mr. Biobele Da-Wariboko, for the concept and the zeal that had brought them thus far.

“Bringing people from all walks of life to have a conversation on the oil and gas industry is critical. Community issues, ‘state dilemma demand careful attention even as the Petroleum Industry Act (PIA), 2020, has made appreciable impact”, Jonathan said.

Also Speaking, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, represented by the Director, Monitoring and Evaluation Directorate, Mr. Esueme Dan Kikile Esq, noted that the theme of the Dialogue provided a vital vintage point to evaluate the nation’s oil and gas historical journey, analyze its current milestones, and chart an ambitious path for Nigeria’s energy future.

Ogbe commended the former President for decisive action in bringing the NOGICD Act and the NCDMB into reality, pointing out that in pursuit of its core mandate, which is to “supervise, coordinate, and monitor compliance with local content metrics, deliberately building domestic capacities, while ensuring that a significant portion of industry spending is retained in Nigeria.

The Board has grown local content participation to 61 per cent in 2026, up from less than five per cent in 2010″.

The Board’s Scribe said the NCDMB’s strict enforcement of its Human Capacity Development Initiative (HCDI) Guidelines has resulted in every major industry project allocating dedicated resources toward training of Nigerian engineers, geologists, technicians, and seafarers, and that its flagship “60-40” Graduate Training Models and global technical certifications to specialized vocational training for host communities has “institutionalised a continuous pipeline of industry-ready professionals”.

On the key projects and accomplishments, both completed and ongoing, he listed the iconic 17-storey NCDMB Nigerian Content Tower (NCT), the Oloibiri Museum and Research Centre (OMRC), Nigerian Oil and Gas Park Scheme (NOGaPS), an industrial park at Emeyal one in the Ogbia local Government Area of Bayelsa State, and another at Odukpani, Cross River State.

He also mentioned other initiatives of the Board as the Gas processing infrastructure in the Gbarain hub in Bayelsa State for reliable feedstock distribution to power and industrialisation in the State and the Niger Delta region, the Polaku Gas Project Footprint, and the Brass Shipyard and Nigeria Liquefied Natural Gas (NLNG) Fertiliser Project Alignment as some of the laudable achievements of the Board.

Engr. Ogbe also listed other projects of the Board as the ‘Back-to-the-Creek Initiative’ which he said was focused on taking development, empowerment, and opportunities directly to the grassroots, where oil and gas activities have most impacted.

“By anchoring these transformative initiatives, human capital development, and high-level investments in Bayelsa State, the Board is transitioning the cradle of Nigeria’s oil history from a mere extraction zone into an active centre of commercial, technological, and industrial value retention”, he said.

In his goodwill message, the Bayelsa State Governor, Senator Douyi Diri, represented by his Deputy, Dr. Peter Akpe, stated that for a gathering to examine 70 years of the oil and gas industry in Nigeria, there could not have been a better place for the event than where it all began.

Governor Diri commended the organisers, whom he described as distinguished writers, researchers, and professionals of the Niger Delta for putting on the programme.

In a related message, Delta State Governor Sheriff Oborevwori, represented by his Chief of Staff, Prince Johnson Erijo, challenged all stakeholders to strive at all times to fulfill public expectations.

He stated that as evaluation of progress in the oil and gas industry was being undertaken, there was need for leaders to renew their commitment to host communities.

On his part, the Managing Director of the Niger Delta Development Commission (NDDC), represented by his Chief of Staff, Mr. Julius Oworibo, said the Dialogue should remind the audience where Nigeria as a nation is coming from, where she is now in terms of achievements in the oil and gas sector and benefits that have accrued to oil-and gas-producing communities as well as where as a nation, Nigeria is striving to be.

In a keynote address, Professor Ibibia Lucky Worika, of the Centre of Advanced Law Research at the Rivers State University, Port Harcourt, observed that for 70 years oil has defined Nigeria’s economy, influenced her politics, shaped its foreign relations, financed its development, fuelled conflicts, inspired innovations, and transformed Nigeria’s place in the global energy landscape.

He pointed out that the Niger Delta has borne the burden of oil and gas exploitation for 70 years and that the entire ecosystems have suffered irreversible damage.

“Environmental justice is not an optional policy aspiration, but a constitutional, moral and developmental imperative”, he said.

Earlier in his welcome address, the convener of ‘De Mangrove Conversations’, Mr. Biobele Da-Wariboko, said the group emerged out of the need to ensure that Niger Delta’s enormous resources and contributions to Nigeria’s development were not swept into historical oblivion by the swift currents of ethno-religious and hegemonic politics ravaging the nation’s polity.

by: Ariwera Ibibo-Howells, Yenagoa

Business

Vet Doctors Vow Support To Check Rabies Spread In Rivers

Published

9 hours ago

August 3, 2026

The Tide

Following report of a suspected case of rabies in Rivers state,The Rivers state chapter of Nigerian Veterinary Medical Association (NVMA) has pledged it’s technical support to partner with the State Government in checking it spread the state.

Chairperson of the Association Dr Gloria Daminabo said this during a courtesy visit to the Acting Permanent Secretary Rivers state Ministry of Agriculture Mrs Tomma Oruye in her office in Port Harcourt.

She said the association is ready to support the state government with technical advice, as well as create awareness in order to ensure that it does not spread thereby constituting public c health concern capable of affecting both animal and human

“This reminds us that animal diseases can quickly become public health concern if they are not detected and contained early.

“As an association, we are ready to support the ministry with technical advice, dieses awareness, vaccination campaigns and any professional assistance required to protect both animal and human being “, she said.

Daminabo also described the Association as not merely a stakeholder but partners in the advancement of agriculture in the state.

According to her”, over the years the association has remain a dependable technical partner to the ministry

“Our members have consistently supported government vaccination campaigns across the state, particularly in bridging the manpower gaps where additional veterinary expertise was required

She said beyond field services, the association has remain a strong voice for advocacy through media engagement and stakeholders interactions, stressing the NVMA has consistently drawn attention to critical issues affecting livestock development and public health including the need for increase veterinary manpower and the establishment of a functional Government Veterinary hospital in the state.

Daminabo described NVMA as the umbrella professional body for veterinarians in Nigeria, stressing the visit was to formally introduce the Executive Committee of the state chapter as well as cement the existing relationship between the Association and the Ministry of Agriculture

“In Rivers State, our membership spans the Ministry of Agriculture, academia, the military and other security agencies, private veterinary practice, research institutions and development programmes.

“We are privileged to have experts in poultry medicine, companion animal practice, livestock production, pathology, diagnostics, epidemiology, wildlife medicine, disease surveillance, food safety and veterinary public health”, the President said.

She said the Association has remain a dependable ally with the state ministry of agriculture especially in the area of livestock development

Daminabo also called for the employment of more veterinary Doctors in the state

“We have also partnered with the Ministry during programmes such as World Food Day, World Rabies Day and other activities aimed at promoting agriculture, food security and public health awareness.

“Today, we are delighted that many of these aspirations are gradually becoming a reality”, She said.

She also commended the state Governo Sir Siminalaye Fubara for the

employment of four veterinary doctors and three laboratory personnel, as well as the establishment and operationalisation of the Rivers State Veterinary Hospital and Diagnostic Centre,

“For these achievements, we sincerely thank His Excellency, the Governor of Rivers State, Sir Siminalayi Fubara, for listening to the concerns of the veterinary profession and taking decisive action.

“These developments have been widely acknowledged within the Nigerian Veterinary Medical Association nationwide and have also received commendation from our National President, Dr. Moses Arokoyo.

“We see ourselves not merely as stakeholders but as partners in the advancement of agriculture. Whenever the Ministry calls upon us, we shall always be willing to deploy our technical expertise in the interest of animal health, public health and food security”, She added.

The association also requested for the full equipping of the Rivers State Veterinary Hospital and Diagnostic Centre, “particularly its diagnostic laboratory as accurate diagnosis remains the foundation of effective treatment and disease control.

“A well-equipped diagnostic centre will support livestock farmers, improve productivity, reduce the indiscriminate use of antimicrobial drugs, combat antimicrobial resistance and strengthen disease surveillance within the State.

The Association also presented a plaque to the Acting Permanent Secretary in recognition of her support, hospitality and commitment to strengthening agriculture and the veterinary profession in Rivers State.

By: John Bibor