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Royalties: Kalabari King Gives Shell Ultimatum
The chiefs and people of Kalabari kingdom in Rivers State, have vowed to resist plans by oil giant, Shell Petroleum Development Company (SPDC) to reduce royalties accruing to the area due to rising incidents of crude oil theft in the Niger Delta.
The kingdom, which comprises, Asari-Toru, Akuku-Toru and Degema local government areas, said any slash in their royalties will amount to a breach of the agreement signed with the people.
Managing Director of SPDC, Mr Mutiu Sunmonu, had in a news briefing in Port Harcourt, on March 1, 2013, said the firm may be compelled to shut down its Nembe-Creek Trunkline (NCTL), following the upsurge in crude oil theft and illegal refining activities, particularly in Cawthorne Channel and Kakrama, in Kalabariland and Awoba in Ogba/Egbema/Ndoni Local Government Area.
Sunmonu, disclosed that 60,000 barrels of crude oil were being stolen everyday, out of the company’s 150,000 barrels daily oil supply to the trunk line, while bemoaning the huge loss of revenue to the government and the devastation such illicit activities were causing to the environment.
The company, in keeping to that threat, had five days later shut down the pipeline and declared force majeure on crude supply to Bonny Export Terminal.
SPDC’s spokesman, Mr Precious Okolobo, also said recently that the company may look in the way of slashing the funds to the communities within the NCTL, if nothing was done to stop the ugly trend.
But the Amayanabo of Kalabari kingdom, Professor Theophilus J.T. Princewill, last weekend faulted the move by Shell, reminding the firm of its promise to increase the mandate annually by 10 per cent, saying the planned reduction will be collectively resisted by the people.
The monarch, who was answering questions from newsmen shortly after a special service at the African Church, Buguma City in Asari-Toru Local Government Area of the State, to mark his 11th Anniversary on the throne as Amayanabo of Kalabari Kingdom, noted that the funds were part of extant agreement between Shell and the kingdom to assist the development of the area.
King Princewill explains: “Shell keeps mentioning that they were going to shut down their trunkline. For the last six years or so, they gave us some money which we used in providing projects.
Now that they are coming to the second phase of that agreement, on the Global Memorandum of Understanding (GMoU, instead of increasing the lot (they call it mandate) that is due to us (the Kalabari people), they want to reduce it by more than half, whereas in the last five years, there was a promise to have 10 per cent increase annually.
“Instead of finding it necessary to review it upwards now that they are going to enter into a new agreement, they want to slash it down by more than a half. Of course, the Kalabaris will not agree.
”Although they said because of crude oil theft, their production in the Kalabari area dropped, but we did not believe that, that has happened. But if we go by that, there are other areas where there is no production whatsoever, but they have increased their funds allocation to them.
”So, if they want to insist on reducing what mandate they gave us, we will say no, we will not accept it. You either increase it or you don’t operate in our area,” he posited.
He further said that the Kalabari Council of Chiefs had met severally with Shell where the latter was told that whatever is in the territory belongs to the people and that the firm was only allowed to go and exploit the crude.
”If what they are doing is to make us suffer for it, we ask them (Shell) to pack up their things (facilities) and go, because we will not beg them to come and do it. If they don’t do it, there are other companies that will come in to do it. For many years now in Ogoni area, Shell is not operating, yet Ogonis have not died.
“If we stop Shell from operating in our territory, we will not die and Nigeria will not collapse and that is our position. They say they are going to close down their operation, we say not only closing down, pack your things and go. That is what we have said to them (Shell),” he said.
Prof. Princewill, however, said that if youths in the area were found culpable over allegations of crude theft, the Kalabari Council of Chiefs would intervene, but noted that crude oil and the control of the resource was essentially the business of the government.
”I and the Kalabari chiefs do not have any control over crude oil production or exploitation. The only thing we can do if our children are doing it is to talk to them, but the full control of such issue is in the hands of government,” he added
The Nigeria Immigration Service has officially ended passport production at multiple centres, transitioning to a single, centralised system for the first time in 62 years.
Minister of Interior, Dr Olubunmi Tunji-Ojo, disclosed this yesterday while inspecting Nigeria’s new Centralised Passport Personalisation Centre at the NIS Headquarters in Abuja.
He stated that since the establishment of NIS in 1963, Nigeria had never operated a central passport production centre, until now, marking a major reform milestone.
“The project is 100 per cent ready. Nigeria can now be more productive and efficient in delivering passport services,” Tunji-Ojo said.
He explained that old machines could only produce 250 to 300 passports daily, but the new system had a capacity of 4,500 to 5,000 passports every day.
“With this, NIS can now meet daily demands within just four to five hours of operation,” he added, describing it as a game-changer for passport processing in Nigeria.
“We promised two-week delivery, and we’re now pushing for one week.
“Automation and optimisation are crucial for keeping this promise to Nigerians,” the minister said.
He noted that centralisation, in line with global standards, would improve uniformity and enhance the overall integrity of Nigerian travel documents worldwide.
Tunji-Ojo described the development as a step toward bringing services closer to Nigerians while driving a culture of efficiency and total passport system reform.
He said the centralised production system aligned with President Bola Tinubu’s reform agenda, boosting NIS capacity and changing the narrative for better service delivery.
The Federation Account Allocation Committee (FAAC) has disbursed N2.225 trillion as federation revenue for the month of August 2025, the highest ever allocation to the three tiers of government and other statutory recipients.
This marks the second consecutive month that FAAC disbursements have crossed the N2 trillion mark.
The revenue, shared at the August 2025 FAAC meeting in Abuja, was buoyed by increases in oil and gas royalty, value-added tax (VAT), and common external tariff (CET) levies, according to a communiqué issued at the end of the meeting.
Out of the N2.225 trillion total distributable revenue, FAAC said N1,478.593 trillion came from statutory revenue, N672.903 billion from VAT, N32.338 billion from the Electronic Money Transfer Levy (EMTL), and N41.284 billion from Exchange Difference.
The communiqué revealed that gross federation revenue for the month stood at N3.635 trillion. From this amount, N124.839 billion was deducted as cost of collection, while N1,285.845 trillion was set aside for transfers, interventions, refunds, and savings.
From the statutory revenue of N1.478 trillion, the Federal Government received N684.462 billion, State Governments received N347.168 billion, and Local Government Councils received N267.652 billion. A further N179.311 billion (13 per cent of mineral revenue) went to oil-producing states as derivation revenue.
From the distributable VAT revenue of N672.903 billion, the Federal Government received N100.935 billion, the states received N336.452 billion, while the local governments got N235.516 billion.
Of the N32.338 billion shared from EMTL, the Federal Government received N4.851 billion, the States received N16.169 billion, and the Local Governments received N11.318 billion.
From the N41.284 billion exchange difference, the Federal Government received N19.799 billion, the states received N10.042 billion, and the local governments received N7.742 billion, while N3.701 billion (13 per cent of mineral revenue) was shared to the oil-producing states as derivation.
The Governing Council of Kenule Beeson Saro-Wiwa Polytechnic, Bori, has decried the inadequate power supply and poor state of infrastructural facilities and equipment at the institution.
The Council also appealed to the government, including Non-Governmental Organisations, agencies, as well as well-meaning Rivers people to intervene to restore and sustain the laudable gesture, dreams and aspirations of the founding fathers of the polytechnic.
The Chairman of the newly inaugurated Council, Professor Friday B. Sigalo, made this appeal during a tour of facilities at the Polytechnic, recently.
Accompanied by members of the team, Prof Sigalo emphasised the position of technology, technical and vocational education in sustainable development.
He noted that with the prospects on ground, and the programmes and activities undertaken in the polytechnic, there is no doubt that the institution would add values to the educational system in our society and foster the desired development, if the existing challenges are jointly tackled.
This was contained in a statement signed by Deputy Registrar, Public Relations, Kenpoly, Innocent Ogbonda-Nwanwu, and made available to The Tide in Port Harcourt.
The chairman who restated the intention of his team of technocrats to ensure that KenPoly enjoys desirable face-lift, said the Council would deliver on its core mandates, accordingly.
Earlier, the Rector, KenPoly Engr. Dr. Ledum S. Gwarah, commended the appointment of Professor Friday B. Sigalo as Chairman of the KenPoly Governing Council.
He described him and his team as seasoned technocrats and expressed confidence in their ability to succeed.
The Rector pledged the management’s support to the Council to ensure that KenPoly resumes its rightful place in the comity of polytechnics in the country.
Facilities visited by the Governing Council include KenPoly workshops, laboratories, skills acquisition centre, library, hostels and medical centre.
Chinedu Wosu
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