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117 Rivers Communities Get N5bn GMoU Fund

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No fewer than 125 communities in 12 cluster development areas in Rivers State have so far received a whopping N5billion for the development of their communities as part of the implementation of the innovative Global Memorandum of Understanding (GMoU).

This is part of the N7billion disbursed by Shell Petroleum Development Company of Nigeria (SPDC) for the sustainable development of host communities under the Global Memorandum of Understanding (GMoU) implementation in the Bayelsa, Delta and Rivers states.

These were disclosed last Friday in Port Harcourt at the first-ever GMoU Fair for Rivers State communities, organized to showcase the individual community achievements in the implementation of the innovative development concept.

Of the 12 cluster areas, only 10 are active with about 117 communities, and have got the lion share of the development fund, released directly into their bank accounts by SPDC for the execution of people-oriented projects and programmes, initiated and implemented by the communities.

The active cluster development areas that have benefited from the funding over the last four years are Akuku Toru with five communities; Andoni with 20; while three are in Degema 1; 30 in Degema 3; nine in Etche 1; 12 in Etche 2; nine in Greater Port Harcourt City; four in Shell Industrial Area; 12 in Ikwerre; and three in Shell Residential Area.

Available statistics indicate that the Akuku Toru Cluster has received N1,036,661,677.33 and spent N795,187,665.10 on 45 completed infrastructure projects, nine human capacity development programmes and 12 economic empowerment schemes as well as 19 ongoing infrastructure projects, two human capacity and another two economic empowerment schemes; while Andoni has got N139,750,000, and spent N63,383,570 on infrastructure projects and N33,356,963.05 on human capital development and economic empowerment schemes in four years.

Both cluster communities also have the sum of N158, 217,035.45 and N30, 917,506.97 unspent funds in their respective bank accounts.

Available statistics indicate that the three Degema 1communities have received N1, 215, 810, 893, and have expended N1, 006, 681, 319 on 36 completed and 17 ongoing infrastructure projects, human capital development and economic empowerment schemes, including 11 overseas scholarship programmes in the United States; while the 30 Degema 3 communities have so far got N2, 076, 666, 666.70 and pumped N1, 797, 652, 821.71 on 49 completed infrastructure projects and 52 human capital development programmes as well as 14 ongoing infrastructure projects and 39 economic empowerment schemes.

Both Degema 1 and 3 have N209, 129, 374, and N366, 242, 721.70 as balance in their separate bank accounts for the execution of more development projects in their communities.

In the Degema 3 soft programmes portfolio, 531 indigenes have received local tertiary and or secondary scholarships, paid bursary to 1,730 persons, equipped 368 unskilled indigenes with sustainable skills, empowered 663 with micro credit loans, sponsored one person on overseas scholarship and created transport scheme for 108 indigenes of the cluster.

The Tide investigations show that the nine communities in the Etche 1 cluster area received a total sum of N590, 306, 088, out which they spent N520, 888, 999.33 on 85 projects, out of which 69 have been completed while 16 are ongoing. In this project template are 24 human capital development programmes, 13 electricity and 18 water schemes, 14 infrastructure projects and 16 economic empowerment schemes.

Whereas the 12 communities in Etche 2 cluster area have so far received N435, 639, 610 and expended N343, 896, 077. 39 on 34 completed infrastructure projects and 12 ongoing ones, in addition to 21 human capital development programmes and two economic empowerment schemes; the nine communities in Greater Port Harcourt City have got N320, 032, 073, and spent N278, 712, 826 on no fewer than 35 projects. Both Etche 2 and GPHC clusters also have bank accounts balance amounting to N91, 743, 532.61 and N41, 319, 247, respectively, for more people-oriented development projects.

The Tide also found that the four IA Cluster communities have received N360, 584, 323.40, and spent N297, 324, 573.32 on 47 completed projects and one ongoing project, just as the 12 communities in Ikwerre Cluster area have confirmed receipt of N536, 506, 100, out of which N497, 192, 009 has been spent on 38 completed projects and 10 ongoing ones.

Similarly, the three RA Cluster communities have received N276, 950, 790, out of which they have spent N137, 206, 510.12 on 25 projects and programmes, split in 21 completed and 4 ongoing portfolios. Of these, they are eight human capital development programmes, five electricity projects, one water project, six infrastructure projects and five economic empowerment schemes.

Even as they have put these development landmarks on the ground, the IA, Ikwerre and RA cluster areas still have bank accounts balances running into N63, 259, 749; N39, 314, 091; and N139, 744, 279.88, respectively for further sustainable development purposes.

Besides, Akuku Toru Cluster communities still have outstanding accruing development funds amounting to N74, 047, 262. 00; while Degema 3 communities have N148, 333, 333, 30 yet to be paid by SPDC.

In their separate speeches, the chairmen of the 10 cluster development boards said that the GMoU initiative was the metamorphosis of the microcosm of resource control in the Niger Delta, and advised communities in the region to key into the concept to enable them benefit from the resources derivable from their areas.

Managing Director, SPDC, Mutiu Sunmonu, who said that these investments were a sure way to bring about sustainable development and positively impacting change to host communities, stressed that the transparency and accountability in the GMoU model provides a good platform for other local and international donor agencies to fund development projects directly through the community development boards.

Sunmonu, who spoke through SPDC’s Government and Community Relations Manager, Fufeyin Funkapo, noted that the range of projects and programmes executed under the GMoU template cover microcredit for men and women, scholarships, innovative healthcare, skills acquisition schemes, solar-powered electrification and water projects, among many others, and thanked Rivers State Government, Rivers State Sustainable Development Agency (RSSDA), Economic Support Initiative (ESI), the local government councils, host communities, implementing non-governmental organisations and joint venture partners for ensuring the success of the initiative thus far.

Wife of Rivers State Governor and Founder of ESI, Dame Judith Amaechi, eulogized the SPDC and GMoU concept, and acknowledged the sterling contributions of the initiative to the overall development of the state.

Represented at the event by Mrs Nina Ejims, the governor’s wife emphasized that ESI supports 70 schools and 210 teachers in the state, and has partnered with Ikwerre and Degema cluster boards under the GMoU scheme to implement human capital and infrastructure development projects with significant dividends to the rural population in the state.

Nelson Chukwudi

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Oil & Energy

No Subsidy In Oil, Gas Sector — NMDPRA

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said there are no subsidies in the oil and gas sector as Nigeria operates a completely deregulated market.
The Director, Public Affairs Department, NMDPRA, George Ene-Italy, made this known in an interview with newsmen, in Abuja, at the Weekend.
Reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CBG), Ene-Italy said, “What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act”.
He insisted that as long as the prevailing CNG market price conforms to the baseline, then the pricing is legitimate.
 Furthermore, the Presidential –  Compressed Natural Gas Initiative (P-CNGI) had said that no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI boss, Michael Oluwagbemi, emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.
For absolute clarity, it said that while pricing matters fell under the purview of the appropriate regulatory agencies, no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI said its mandate, as directed by President Bola Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative fuel and diesel nationwide.
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Oil & Energy

‘Nigeria’s GDP’ll Hit $357bn, If Power Supply Gets To 8,000MW’

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The Managing Director, Financial Derivatives Company Limited (FDC),  Bismarck Rewane, has said that Nigeria’s Gross Domestic Product (GDP) could rise to $357b  if electricity supply would increase from the present 4.500MW to 8,000MW.
Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country’s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 though the sector has installed capacity to generate 13,000 MW.
In his presentation at the Lagos Business School (LBS) Executive Breakfast Session, titled “Nigeria Bailout or Lights Out: The Power Sector in a Free Fall”, Rewane insisted that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.
He said, “According to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.
“If power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And, due to multiplier effects, GDP could rise to $357 billion.”
The FDC’s Chief Executive said “in the last 30 years, Nigeria has invested not less than $30 billon to solve an intractable power supply problem.
“The initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.
“Twenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.
“The way out is a bailout, or it is lights out for Nigeria”, he warned.
He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan’s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.
Rewane, who defined a bailout as “injection of money into a business or institution that would otherwise face an imminent collapse”, noted that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.
He said, “The President has promised to consider a financial bailout for the Gencos and Discos. With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.”
Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.
Rewane, however, noted that implementing a bailout for the power sector could have a positive effect on the country’s economy if Nigeria’s actual power generation could rise from today’s 4,500 MW to around 8,000 and 10,000 MW.
The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.
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NEITI Blames Oil, Gas Sector Theft On Mass Layoff 

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The Nigeria Extractive Industries Transparency Initiative (NEITI) has blamed the increasing crude oil theft across the nation on the persistent layoff of skilled workers in the oil and gas sector.
The Executive Secretary, NEITI, Orji Ogbonnaya Orji, stated this during an interview with newsmen in Abuja.
Orji said from investigations, many of the retrenched workers, who possess rare technical skills in pipeline management and welding, often turn to illicit networks that steal crude from pipelines and offshore facilities.
In his words, “You can’t steal oil without skill. The pipelines are sometimes deep underwater. Nigerians trained in welding and pipeline management get laid off, and when they are jobless, they become available to those who want to steal crude”.
He explained that oil theft requires extraordinary expertise and is not the work of “ordinary people in the creeks”, stressing that most of those involved were once trained by the same industry they now undermine.
According to him, many retrenched workers have formed consortia and offer their services to oil thieves, further complicating efforts to secure production facilities.
“This is why we told the Nigerian Content Development and Monitoring Board (NCDMB) to take this seriously. The laying off of skilled labour in oil and gas must stop”, he added.
While noting that oil theft has reduced in recent times due to tighter security coordination, Orji warned, however, that the failure to address its root causes, including unemployment among technically trained oil workers would continue to expose the country to losses.
According to him, between 2021 and 2023, Nigeria lost 687.65 million barrels of crude to theft, according to NEITI’s latest report. Orji said though theft dropped by 73 per cent in 2023, with 7.6 million barrels stolen compared to 36.6 million barrels in 2022, the figure still translates to billions of dollars in lost revenues.
Orji emphasised that beyond revenue, crude oil theft also undermines national security, as proceeds are used to finance terrorism and money laundering.
“It’s more expensive to keep losing crude than to build the kind of monitoring infrastructure Saudi Arabia has. Nigeria has what it takes to do the same”, he stated.
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