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Checking Crude Oil Theft

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The Kimberley Process Certification Scheme (simply known as the Kimberley Process or KP) is the outcome of a vigorous campaign launched in 1998 by an international Non-Governmental Organisation, Global Witness, to expose the role of rough diamonds in funding conflicts, especially in Africa.

Following several violations of the sanctions imposed under the United Nations Security Council Resolution 1173 against Jonas Savimbi’s National Union for the Total Independence of Angola (UNITA), Global Witness, in concert with a few other powerful NGOs, was able to pressure diamond-producing countries in the Southern African region into holding a conference in Kimberley, South Africa, in May 2000 to discuss the issue of conflict diamonds.

Coming at the time it did, the deliberations may have also factored in the role of such precious stones in fuelling the fratricidal wars in Liberia and Sierra Leone during which many innocent citizens lost their lives and several others were maimed and abused, all on account of who controlled the huge diamond resources of the two West African neighbours.

After about three years of heated debates and negotiations, the Kimberley convention drafted an international diamond certification scheme which was endorsed and launched as the Kimberley Process by the United Nations in January 2003.

The scheme simply requires a certification of the origin of rough diamonds by participating governments as a way of preventing conflict diamonds from entering the international supply chain. Countries that produce, trade or process uncut diamonds are encouraged to join. They are expected to enact their own laws on how best to implement the scheme while also ensuring that they trade such merchandise with fellow members only.

Although the process has not brought about a complete halt to transactions in conflict diamonds, certainly not with Cote d’Ivoire, Zimbabwe and Venezuela showing little commitment, it has, nevertheless, dealt a significant blow to the flow of such bloody merchandise from conflict zones into the international diamond market. What’s more, it has also helped some of the countries that were, hitherto, hit by diamond-fuelled conflicts to earn more revenue from their official exports of the precious stone.

Nigeria may not be a member of the Kimberley scheme. She is not even a major producer, trader or processor of rough diamonds. Nor is she at war with any rebel group known to be benefitting from such illicit trade. But the country seems to be at war with a different kind of rebels. Crude oil thieves, that is. And in spite of whatever her fighting strategies, she surely needs the type of export-import certification process that Kimberley proposes.

According to Mutiu Sunmonu, managing director of Shell Petroleum Development Company of Nigeria (SPDC), Nigeria loses $5 billion (about N800 billion) annually to illegal oil bunkering in the coastal region of the country.

Speaking at a recent public hearing on oil bunkering organised by the House of Representatives Joint Committee on Petroleum Resources (Upstream) and the Navy, the oil-company chief advised government to form alliances in order to fight the menace which has now gone international.

The United States has also lent its voice in condemning the extent of crude oil theft and environmental degradation in the Niger Delta.

Speaking during the just-concluded US-Nigeria Bi-National Conference in Port Harcourt, the Deputy Assistant Secretary of State for African Affairs, Ms. Cynthia Akuetteh, attributed the rising thievery to low levels of employment and educational opportunities.

The American official was probably referring to the aspect of this robbery that is carried out by a few jobless and highly agitated Niger Delta youths. But it is already common knowledge that there exist some powerful and well-connected syndicates comprising foreign oil firms, top government officials, security operatives and shipping agents which connive with international oil buyers to defraud the nation, often using forged documents. For instance, the Joint Military Task Force (Operation Pulo Shield) raised to protect oil facilities (rather than people) in the region, has recorded several successes at arresting crude oil thieves and local refiners, even as some of its men have also been fingered as being collaborators.

Analysts have recommended that government address the wanton corruption in the petroleum sector through establishing a tougher regulatory framework. And, in addition, there have also been suggestions for the approval of a 10 per cent stake to oil communities, including the checking of pipeline vandalism and illegal refineries through community policing.

Late President Umaru Yar’Adua once likened illegal oil bunkering in the Niger Delta to the trade in blood diamonds during the civil wars in Liberia and Sierra Leone. He was reported to have called for international assistance to help Nigeria stop the trade in what he termed ‘blood oil’.

Indeed, Nigeria needs a coordinated international assistance to tackle this menace, but she has to initiate the move. OPEC is a ready-made platform. And with a clearer US position on the matter, drawing from the Kimberley experience will not be a bad idea, after all.

 

Ibelema Jumbo

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NCDMB, Partners Sweetcrude On Inaugural Nigerian Content Awards

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The Nigerian Content Development and Monitoring Board (NCDMB), in partnership with a firm, Sweetcrude Ltd., has announced detailed selection criteria for the inaugural “Champions of Nigerian Content Awards”, designed to honor outstanding contributions to local content development in Nigeria’s oil and gas sector.
The Tide learnt that the event, scheduled to hold 21st May, 2025, at the NCDMB’S content tower headquarters in Yenagoa, capital of Bayelsa State, will recognize individuals and organizations that have demonstrated exceptional commitment to advancing Nigerian Content in 2024.
The Tide further gathered that the ceremony will coincide with the Nigerian Oil and Gas Opportunity Fair (NOGOF), which promises to spotlighting industry excellence and contributions to national economic transformation.
A statement by the Board’s Directorate of Corporate Communications and Zonal Coordination says the event has 12 Award Categories, which include, “Nigerian Content Icon of the Year”, “Nigerian Content Lifetime Achievement Award”, “Nigerian Content International Upstream Operator of the year”, and the “Nigerian Content Independent Upstream Operator of the year”.
Others are, “Nigerian Content Midstream Operator of the year”, “Nigerian Content Downstream Operator of the year”, “Nigerian Content International Service Company of the year”, Nigerian Content Indigenous Service Company of the year”, and the “Nigerian Content Innovator of the year”.
Also included are, “Nigerian Content Financial Services Provider of the year”, “Nigerian Content Media Organization of the year”, and “Women in Leadership Award for Promoting Gender Equality and Empowerment”.
According to the NCDMB, the criteria for oil and gas operators will include key and empirical benchmarks such as Production output for crude oil and gas volumes, Compliance with Nigerian Content Plans (NCPs) and Nigerian Content Compliance Certificates (NCCCs).
Other criteria are adherence to NOGICD Act reporting requirements, such as submission of Nigerian Content Performance Reports and Employment & Training Plans.
The Board’s statement added that similar criteria will apply to financial institutions, media organizations, and individuals, ensuring a transparent and merit-based selection process.
“Winners for the Nigerian Content Icon of the Year, Innovator of the Year, and Women in Leadership Award will also be selected based on measurable performance indicators.

“The Advisory Committee of Industry Titans will Oversee the process to uphold the prestige of awards. The Committee consist of distinguished experts set up to oversee nominations and validate winners”, the NCDMB said.

Members of the committee, according to the Board, include: Pioneer Executive Secretary of the NCDMB, Dr. Ernest Nwapa; Secretary-General, African Petroleum Producers Organization, Dr. Omar Farouk; and former Zonal Operations Controller, DPR, Mr. Woke Akinyosoye.

The Statement quoted the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, as emphasizing that the awards aim to becoming the oil and gas sector’s equivalent of the Oscars, celebrating genuine impact rather than mere participation.

“This recognition is reserved for those who have gone beyond compliance to drive tangible growth in Nigerian Content.

“With a focus on credibility, compliance, and measurable impact, the Champions of Nigerian Content Awards is poised to set a new standard for excellence in Nigeria’s energy sector”, the NCDMB Executive Scribe said.

By: Ariwera Ibibo-Howells, Yenagoa

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Nigeria’s Debt Servicing Gulped N696bn In Jan – CBN

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Nigeria’s apex Banking institution, Central Bank of Nigeria (CBN), has declared that Federal Government’s debt servicing increased to N696billion in January 2025.
The CBN’s recently published Economic Report revealed a precarious fiscal position, which worsened in January 2025 as debt servicing obligations exceeded total retained revenue by a wide margin.
According to the report, the Federal Government’s debt servicing obligations for the month stood at N696.27bn, while total retained revenue amounted to only N483.47bn, indicating that debt service alone consumed about 144 per cent of all government earnings.
This development highlights the growing debt burden and dwindling fiscal space facing Africa’s largest economy.
According to the report, despite slight improvements in some revenue categories, the retained earnings were grossly inadequate to cover obligatory debt repayments, exposing the government’s continued reliance on borrowing to meet basic obligations.
The report further revealed that retained revenue in January 2025 only recorded a marginal 0.89 per cent increase when compared with the N479.21bn generated in the corresponding month of 2024.
”FGN retained revenue declined in the review period, owing largely to lower receipts from Federal Government Independent Revenue and FGN’s share of exchange gain.
“At N0.48tn, provisional FGN retained revenue was 69.19 and 70.40 per cent below the levels recorded in the preceding period and monthly target, respectively”, it revealed.
While this points to stagnation rather than growth, the marginal rise was wiped out by the overwhelming debt service obligations.
The retained revenue components showed that the Federation Account contributed N167.69bn, while the VAT Pool Account delivered N90.73bn.

By: Corlins Walter

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Wage Award: FG Plans 5 Months Arrears Payment

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The Federal Government has announced plans to commence the payment of the outstanding N35,000 wage award arrears owed workers in the Federal Civil Service.
A statement issued by the Office of the Accountant-General of the Federation (AGF), which was signed by the Director of Press and Public Relations, Bawa Mokwa, said the outstanding arrears will be paid in instalments, with workers set to receive N35,000 per month for five months.
It clarified that the first tranche of the wage award arrears would be released immediately after the April salary payment.
“The wage award arrears was not  paid with the April 2025 salary; it will come immediately after the salary is paid”, the statement read.
The Federal Government had earlier disbursed wage awards to federal workers for five months as part of efforts to cushion the impact of economic reforms. However, five months’ arrears remained unpaid.
The AGF office further reiterated the government’s commitment to fully implementing all policies and agreements relating to staff remuneration and welfare, noting that such efforts were geared towards enhancing productivity and operational efficiency across ministries, departments, and agencies.
The N35,000 wage award was introduced in 2023 as a palliative measure to support workers following the removal of the petrol subsidy and other economic adjustments.
In January this year, the Federal Government assured workers that it would clear the arrears of the N35,000 wage award, just as it also said the government had resumed the payment of the wage award.
The government also reiterated its commitment to addressing issues in the National Minimum Wage agreement reached with the Organised Labour in 2023.
The Minister of Labour and Employment, Nkeiruka Onyejeocha, had disclosed the government’s commitment towards implementing agreements with trade unions during separate meetings with the leadership of the Trade Union Congress and Congress of University Academics, in Abuja.
The Nigeria Labour Congress had criticised the Federal Government over the delay in the payment of the minimum wage for certain workers in the federal civil service.
Also, the Federal Government had earlier blamed the delay in payment on the prolonged approval of the 2025 budget.

By: Corlins Walter

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