Editorial

Oil Blocks Allocation: Matters Arising

Published

6 years ago

April 5, 2019

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

Charge Before New Rivers Council Helmsmen

Published

20 hours ago

September 29, 2025

The Tide

On the 30th of August, Rivers people trooped out to participate in local government elections conducted across the state. These elections, which produced new chairmen and councillors for the 23 local government areas (LGAs), were organised by the Rivers State Independent Electoral Commission (RSIEC). The exercise has ushered in a new crop of grassroots leaders whose shoulders now bear the responsibility of steering the affairs of their respective councils. With the polls concluded and winners duly announced, the time has come for the newly elected officials to roll up their sleeves and begin the hard work of governance.

According to the results declared by RSIEC, the All Progressives Congress (APC) secured a dominant lead, winning chairmanship seats in 20 of the 23 local government councils, while the Peoples Democratic Party (PDP) clinched the remaining three. This outcome not only reflects the current political dynamics in the state but also places a significant weight of expectation on the shoulders of the APC-led councils to justify the confidence reposed in them by the electorate. It is imperative that political rhetoric now gives way to tangible development, especially at the grassroots level where government is felt most directly.

Following the elections, the successful chairmen were officially sworn into office by the former Sole Administrator of Rivers State, Vice Admiral (rtd) Ibok-Ete Ekwe Ibas. The solemn ceremony marked a transition from campaign promises to the reality of public service. With their inauguration complete, the time for celebration has ended; the time for delivery has commenced. The electorate now awaits meaningful action that reflects the hopes and aspirations of the voting public.

As helmsmen of their various LGAs, these leaders must quickly settle down to work. Their constituents expect them to provide direction, formulate policies, and execute programmes that will uplift communities long neglected. The local government tier is closest to the people and, as such, must rise above politicking to meet the everyday needs of the citizenry. It is not enough to occupy office; they must make their impact visibly and positively felt across their domains.

The Supreme Court ruling mandating direct allocation of funds to local governments—although not yet fully implemented—is a welcome development that underscores the autonomy of the third tier of government. Once this is operationalised, the excuses often cited for underperformance will no longer hold water. With funds directly accessed from the Federation Account, council administrations will be better empowered to meet the developmental needs of their localities, if only they manage resources judiciously and prioritise the right projects.

The onus is now on the chairmen to contribute meaningfully to the broader development of Rivers State. The state government cannot and should not be expected to do everything. Local government councils have defined responsibilities—ranging from rural infrastructure, primary healthcare, and basic education to waste management and local security—that must be adequately addressed. It is high time they stopped passing the buck and started acting as the elected leaders they are.

We extend our congratulations to all who emerged victorious in the elections. However, with this victory comes great responsibility. It is no longer about party affiliations or electoral campaigns; it is about governance. The chairmen must launch people-centred projects that will genuinely improve the lives of the rural populace—projects in water supply, road maintenance, school renovation, and youth empowerment, among others. Let their tenure be remembered for its impact, not its slogans.

Central to their mandate should be the welfare of workers. Council employees form the engine room of local governance, and their morale significantly affects service delivery. The new chairmen must ensure regular payment of salaries, staff training, and a conducive working environment. Neglecting this vital aspect will only hinder whatever grand plans they may have for their LGAs.

It is also essential to institute a robust peer review mechanism. The new LG officials should not operate in isolation; rather, they should learn from one another, share ideas, and compete constructively in a bid to outperform each other in service delivery. Healthy competition among council areas will drive innovation and foster accelerated development. Such a system will also help the public identify high-performing councils for emulation.

Given the typically short tenure of council administrations, it is crucial that they focus on projects that are realistic and impactful. Time and resources should not be wasted on white elephant ventures that are neither sustainable nor beneficial to the people. Instead, chairmen should pursue programmes that match their timelines and address immediate community needs.

Peace and security must remain a cardinal objective for all council steersmen. Regardless of who facilitated their election or what political loyalties they hold, they must ensure peace reigns in their areas. Development cannot thrive in an atmosphere of tension and distrust. These leaders must work closely with traditional rulers, youth groups, and civil society organisations to maintain law and order.

A critical understanding must also prevail—that chairmen are leaders of the people, not just leaders of political parties. They must conduct themselves as impartial administrators serving all constituents, irrespective of political affiliations. Additionally, they must work harmoniously with the state governor, who remains the leader of the state. Petty rivalries and political infighting serve no purpose in the development agenda.

Now that the elections are over and governance has begun, it is essential for these chairmen and councillors to adopt an inclusive approach. They must carry everyone along—party members and opposition alike—in their development plans. Creating division or playing favourites will only fracture communities and stall progress. Leadership at the grassroots demands fairness, equity, and a listening ear.

Rivers people have played their part by coming out to vote. The baton has now been passed to the new council helmsmen. They must seize the opportunity to leave lasting legacies in their communities. History will not judge them by the number of rallies they held or the speeches they gave, but by the quality of life they brought to their people. Let them not squander this moment.

Editorial

No To Political Office Holders’ Salary Hike

Published

1 week ago

September 22, 2025

The Tide

Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has unveiled a gratuitous proposal to increase the salaries of political and public office holders in the country. This plan seeks to fatten the pay packets of the president, vice-president, governors, deputy governors, and members of the National and State Assemblies. At a time when the nation is struggling to steady its economy, the suggestion that political leaders should be rewarded with more money is not only misplaced but insulting to the sensibilities of the ordinary Nigerian.

What makes the proposal even more opprobrious is the dire economic condition under which citizens currently live. The cost of living crisis has worsened, inflation has eroded the purchasing power of workers, and the naira continues to tumble against foreign currencies. The majority of Nigerians are living hand to mouth, with many unable to afford basic foodstuffs, medical care, and education. Against this backdrop, political office holders, who already enjoy obscene allowances, perks, and privileges, should not even contemplate a salary increase.

It is, therefore, not surprising that the Socio-Economic Rights and Accountability Project (SERAP) has stepped in to challenge this development. SERAP has filed a lawsuit against the RMAFC to halt the implementation of this salary increment. This resolute move represents a voice of reason and accountability at a time when public anger against political insensitivity is palpable. The group is rightly insisting that the law must serve as a bulwark against impunity.

According to a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare, the commission has been dragged before the Federal High Court in Abuja. Although a hearing date remains unconfirmed, the momentous step of seeking judicial redress reflects a determination to hold those in power accountable. SERAP has once again positioned itself as a guardian of public interest by challenging an elite-centric policy.

The case, registered as suit number FHC/ABJ/CS/1834/2025, specifically asks the court to determine “whether RMAFC’s proposed salary hike for the president, vice-president, governors and their deputies, and lawmakers in Nigeria is not unlawful, unconstitutional and inconsistent with the rule of law.” This formidable question goes to the very heart of democratic governance: can those entrusted with public resources decide their own pay rises without violating the constitution and moral order?

In its pleadings, SERAP argues that the proposed hike runs foul of both the 1999 Nigerian Constitution and the RMAFC Act. By seeking a judicial declaration that such a move is unlawful, unconstitutional, and inconsistent with the rule of law, the group has placed a spotlight on the tension between self-serving leadership and constitutionalism. To trivialise such an issue would be harum-scarum, for the constitution remains the supreme authority guiding governance.

We wholeheartedly commend SERAP for standing firm, while we roundly condemn RMAFC’s selfish proposal. Political office should never be an avenue for financial aggrandisement. Since our leaders often pontificate sacrifice to citizens, urging them to tighten their belts in the face of economic turbulence, the same leaders must embody sacrifice themselves. Anything short of this amounts to double standards and betrayal of trust.

The Nigerian economy is not buoyant enough to shoulder the additional cost of a salary increase for political leaders. Already, lawmakers and executives enjoy allowances that are grossly disproportionate to the national average income. These earnings are sufficient not only for their needs but also their unchecked greed. To even consider further increments under present circumstances is egregious, a slap in the face of ordinary workers whose minimum wage remains grossly insufficient.

Resources earmarked for such frivolities should instead be channelled towards alleviating the suffering of citizens and improving the nation’s productive capacity. According to United Nations statistics, about 62.9 per cent of Nigerians were living in multidimensional poverty in 2021, compared to 53.7 per cent in 2017. Similarly, nearly 30.9 per cent of the population lives below the international poverty line of US$2.15 per day. These figures paint a stark picture: Nigeria is a poor country by all measurable standards, and any extra naira diverted to elite pockets deepens this misery.

Besides, the timing of this proposal could not be more inappropriate. At a period when unemployment is soaring, inflation is crippling households, and insecurity continues to devastate communities, the RMAFC has chosen to pursue elite enrichment. It is widely known that Nigeria’s economy is in a parlous state, and public resources should be conserved and wisely invested. Political leaders must show prudence, not profligacy.

Another critical dimension is the national debt profile. According to the Debt Management Office, Nigeria’s total public debt as of March 2025 stood at a staggering N149.39 trillion. External debt obligations also remain heavy, with about US$43 billion outstanding by September 2024. In such a climate of debt-servicing and borrowing to fund budgets, it is irresponsible for political leaders to even table the idea of inflating their salaries further. Debt repayment, not self-reward, should occupy their minds.

This ignoble proposal is insensitive, unnecessary, and profoundly reckless. It should be discarded without further delay. Public office is a trust, not an entitlement to wealth accumulation. Nigerians deserve leaders who will share in their suffering, lead by example, and prioritise the common good over self-indulgence. Anything less represents betrayal of the social contract and undermines the fragile democracy we are striving to build.