Editorial
Oil Blocks Allocation: Matters Arising
Statistics show that the total number of oil leases granted operators by the Federal Government as at December ending, 2012, stood at 201. While the total number of Oil Mining Leases (OMLs) in operation are 109, Oil Prospecting Leases (OPLs) are 92.
Yet, there is a school of thought that believes that 83 per cent of oil blocks in the country are allocated to Northerners. But more worrisome is the revelation that 88 per cent of the oil blocks are actually owned by multinational oil companies led by Shell Petroleum Development Company (SPDC).
Interestingly, no fresh allocation of oil blocks has been made since President Muhammadu Buhari assumed office on May 29, 2015. His predecessor, Dr Goodluck Jonathan, also made no fresh allocations. However, fresh allocations may be made by the current administration, with experts saying such is due, as the government is on the verge of revoking operating licences of a number of oil block owners following the expiration of their licences.
It is against this backdrop that the recent pronouncement by renowned and fiery Lagos lawyer, Femi Falana (SAN), that the practice of allocating oil blocks to individuals and International Oil Companies (IOCs) by the Federal Government is against the Constitution of Nigeria, and should be stopped, comes into focus.
Falana, had in a letter, asked President Buhari, to henceforth allocate oil blocks only to the federal and state governments, contending that those who got oil blocks often got more money than the country.
The erudite lawyer said, the practice violates Section 16 (2) (c) of the Constitution, which he said provides that “the economic system is not operated in such a manner as to permit the concentration of wealth or the means of production and exchange in the hands of few individuals or of a group”.
While calling on the Federal Government to go ahead with the plan to revoke a number of oil blocks and marginal fields hitherto allocated to a few individuals as well as local and foreign corporate bodies by former military and civilian regimes, Falana said the plan is a courageous decision, but that the government would have to desist from renewing the remaining licences of other oil block owners in the country.
He further posited that the President may not be aware that majority of the owners of the oil blocks allocated to individuals were usually sub-leased to offshore companies because the beneficiaries often lack the fund and technical expertise to develop them, adding that by merely collecting huge rents, the oil block owners become stupendously rich while the federal, state and local governments depend on loans and bail out to pay salaries and carry out basic infrastructural development of the country.
According to Falana, the allocation of oil blocks to a few individuals and corporate bodies by the government constitutes gross violation of the fundamental rights of the Nigerian people to freedom from discrimination, equal right of access to public property and in the equal enjoyment of the common heritage of mankind as well as the right to social, economic and cultural development guaranteed by articles 2, 13, 22 of the African Charter on Human and Peoples Rights (Ratification and Enforcement) Act.
We recall that when in 1956, crude oil, was discovered in commercial quantity in the sleepy town of Oloibiri in today’s Bayelsa State located in the Niger Delta region, the expectation was that the move would bring prosperity, stupendous wealth and, indeed, the good life to the people of the area, nay Nigerians as a whole.
But it is regrettable that the Nigerian people have not benefitted maximally from that giant economic leap so much that it has rather left majority of them worse off, with abject poverty staring them in the face.
Paradoxically, the people have remained poor in the midst of plenty, owing to a number of factors, including the arbitrary allocation of oil blocks and marginal fields by successive administrations in the country. The end result is that the wealth that is buried in the bowels of Oloibiri and in other oil bearing communities in the Niger Delta region is being cornered by a few Nigerians and foreigners.
Again, there is no gainsaying the fact that corruption, which has eaten deep into the fabric of the Nigerian State has remained the greatest bane of the country, as this cankerworm has permeated all sectors of our national life.
There is also no denying the fact that the allocation of oil blocks to individuals in the country is skewed in favour of certain persons from a section of the country at the expense of others. Such allocations, which are grossly lopsided, are intended to serve some political, economic and other primodial interests.
Like Falana, other experts have warned that Nigeria must learn from the pitfalls of the oil block allocations made by previous regimes.
A United States – trained petroleum engineer and former staff of Chevron Nigeria, Alex Neyin, said oil block allocations in the country are hardly transparent as they are done on the basis of ‘man-know-man’.
The Tide agrees no less that the benefits derivable from crude oil production in the country have not trickled down maximally to the ordinary people, and, therefore, suggests that the process of allocating oil blocks should be made public and transparent in such a manner that people with the requisite competence and financial muscle should bid for the oil blocks.
There is also the urgent need to amend the law that arrogates the President of the country the sole right to allocate oil blocks. Vesting such powers in the President is open to abuse and manipulation, as is currently the practice, where some oil blocks were given out to associates, friends and cronies without due process.
However, beyond allocating the oil blocks only to the federal and state governments as suggested by Falana, there is the need for government at all levels to be alive to its constitutional responsibilities of catering for the welfare of the Nigerian people. We agree that allocating the oil blocks to government would leave much more money in the pockets of government, but the multi-million naira question is: will this change anything?
It is sad that the country is still grappling with the problem of epileptic power supply and the general failure of basic infrastructure in virtually all sectors of the country. Poverty is still deep-seated and pervasive. Corruption in high places is still rife. While the poor gets poorer, the rich gets richer.
Unemployment is at its peak. Nothing seems to be working. This is in spite of the fact that the wealth emanating from crude oil is capable of transforming the country and improving the general wellbeing of the people.
In all, in the spirit of equity and social justice, oil producing areas and communities must be accorded priority in the allocation of oil blocks and marginal fields in the country. We strongly believe that this would go a long way in assuaging the deep-seated feelings of marginalization among the Niger Delta people in particular.
Editorial
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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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