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IOCs Link Sector’s Woes To Oil Theft, Vandalism, Others
International Oil Companies (IOCs) operating in Nigeria have expressed their frustration on the rising spate of crude oil theft and pipeline vandalism in the country.
They expressed their displeasure during a panel session held at the 2022 Nigeria Oil and Gas Conference with the theme, “The Future of Nigeria’s Energy Sector in the PIA Era.”
Those that spoke are the Managing Director of TotalEnergies E&P Nigeria Limited, Mr. Mike Sangster;Managing Director of Shell Nigeria Limited, Mr. Osagie Okunbor; Managing Director of Chevron Nigeria Limited and Chairman of the Oil Producers Trade Section (OPTS), Mr. Rick Kennedy; the Executive Director at ExxonMobil Nigeria, Mr. Oladotun Isiaka.
They said that within a three months period covering January 1 and March 31 this year, Nigeria lost a whopping amount of $1billion revenue to crude oil theft.
The $1billion, when converted to the Naira using the official exchange rate of the Central Bank of Nigeria (CBN), translates to about N416billion.
The theft of crude oil has been frustrating the efforts of the government in attracting fresh investments into the oil and gas industry through the implementation of the Petroleum Industry Act.
Three months ago, the Minister of Petroleum Resources, Chief Timipre Sylva; the Chief of Defence Staff, Lucky Irabor; and the Group Managing Director of the Nigerian National Petroleum Company Ltd, Mele Kyari; visited the Niger Delta for an on-the-spot assessment of the damage done by vandals.
Shortly after the visit, a military operation followed immediately to smoke vandals out of the creeks.
Currently, the Nigerian Navy is carrying out serious military operations in the Niger Delta to ensure that oil and gas assets are protected.
The theft of crude oil has been having a negative effect on the revenue of the Federal Government, which has denied the country the much-needed fund to boost economic development.
Apart from revenue loss, the issue of oil theft is currently threatening not just the NNPC’s quest for energy security for the country; it was also having a debilitating effect on Nigeria’s foreign exchange earnings.
Nigeria relies on crude oil revenue for over 90per cent of its foreign exchange earnings.
Speaking on the development, Okunbor warned that the development was a threat to the country’s economy.
The Shell MD said the high level of oil losses caused by crude theft had resulted to Nigeria’s daily oil production declining from 1.8million barrels per day in the last three years to just a little over 1million bpd.
He said two of the most important oil pipelines in the country are currently shut down with hundreds of thousands of barrels a day shut-in.
He said, “If there’s one thing we need to take away from this conference, it’s how we can put our heads together: industry, government, regulators, communities, security agencies as to how we can deal with this culture.
“We need to address it. If we don’t address it, we can do all the new oil development issues that will continue to occur. But what is really going to move the needle for us in terms of bridging this gap of hundreds of thousands of barrels a day is solving the evacuation problem.
“So, our OML 53 and 57 marginal field licensees, depending on how quickly they can bring production on stream, those who are on land, swamps and shallow water, evacuation is going to be an issue. So, it’s an existential issue for us.
“In three to five years, we were brought down from 1.8million barrels a day to a little over 1million barrels a day and frankly, most of that comes out of deep water.”
In his submission at the event, Chevron’s Rick Kennedy, said time has come for all the stakeholders in the oil and gas industry to address the issue of oil theft.
He said, “There is the need for an unprecedented level of collaboration and partnership across industry, with the regulators with the ministry, and with NNPC.
“And I think that will do us well going forward as we all take on the challenges ahead of us, including the high crude theft that we are going through. Let’s just carry on that collaborative mind-set and ensure we address these challenges.”
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NAFDAC Busts Fake Alcohol Factory In Lagos
The National Agency for Food and Drug Administration and Control (NAFDAC) has dismantled a makeshift factory in the Oke Arin market, Lagos Island, where counterfeit alcoholic beverages were being illegally produced.
According to a statement via its X, yesterday, the agency, acting on a complaint, conducted a raid that led to the arrest of three men and the seizure of counterfeit drinks, empty bottles, and packaging materials.
According to NAFDAC, the seized products, which included fake versions of popular alcoholic brands, were valued at over ¦ 180 million.
The main suspect, Mr. Tochukwu Henry, confessed to refilling bottles labelled as Rémy Martin with ST-Rémy contents.
He also admitted to employing two other individuals to assist in the operation.
The statement said, “NAFDAC has raided a makeshift factory in Oke Arin market, Lagos Island, following a complaint about the illegal production of alcoholic beverages. Three men were apprehended and various counterfeit alcoholic drinks, empty bottles, and packaging materials were seized.
“The products, valued at over ¦ 180 million, included fake versions of popular brands. The main suspect, Mr. Tochukwu Henry, confessed to refilling bottles labelled as Rémy Martin with ST-Rémy contents and employing two others to assist in the illicit operation.
“All suspects are currently in custody for further investigation. NAFDAC calls on the public to remain vigilant, especially during the festive season, and to report suspicious activities and products to the nearest NAFDAC office.”
News
Reps Give FG 72 Hours To Unfreeze NSIPA’s Accounts
The House of Representatives has called on the Federal Government to direct the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to within 72 hours, unfreeze the accounts of the National Social Investment Agency (NSIPA), given its role in addressing hunger and poverty.
The position of the Green Chamber was a sequel to the adoption of a motion at yesterday’s plenary sponsored by the Deputy Speaker, Benjamin Kalu, and 20 other lawmakers.
Allegations of corruption and shady deals compelled the President Bola Tinubu-led government to freeze the accounts of the agency, to give room for a total overhauling of its programmes.
While calling for support for the motion yesterday, Kalu emphasised that NSIPA oversees critical social intervention programmes such as Grant for Vulnerable Groups, N-Power, the Government Enterprise and Empowerment Programme, Conditional Cash Transfers and the National Home-Grown School Feeding Programme, among others.
He also noted that the Renewed Hope Agenda of the Tinubu-led government emphasises the mandate of the NSIPA to cushion the effect of economic shocks on the poor and the vulnerable.
He said, “The House is disturbed that despite the programmes of NSIPA being vital for poverty alleviation, youth empowerment, and economic inclusivity in Nigeria; the agency’s functionality has been hindered due to administrative bottlenecks, insufficient funding and frozen accounts.
“The House is worried that the effort of the government and the laudable programmes of NSIPA were truncated by alleged financial mismanagement by handlers of the programmes leading to the suspension of programmes and freezing of the agency’s account and subsequent investigation by anti-corruption and security agencies.
“The House is concerned that the smooth operations of the programmes and the fulfilment of the mandate of NSIPA are hindered due to the suspension of the accounts of the agency and other administrative bottlenecks, which has remained in force even more than three months after the President reconstituted the new management of NSIPA.”
Kalu who represents Bende Federal Constituency, Abia State, further said the frozen accounts of the agency contradict the President’s mandate on poverty alleviation by hindering and halting social welfare programs, including conditional cash transfers, small business grants, and school feeding initiatives.
This, according to him undermines “Economic empowerment initiatives, delays in achieving Sustainable Development Goals and cause erosion of public confidence and administrative paralysis in fighting poverty, among other things.”
Kalu noted that following the suspension of accounts of the NSIPA, “The N-Power programme has been so negatively affected that 395,731 beneficiaries are owed outstanding stipends to the tune of N81.32bn; a fund already captured under the 2023 and 2024 amended Appropriation Acts, which will lapse by the year ending December 31, 2024.”
Following the adoption of the motion, the House urged the President to mandate the minister of finance and the Coordinating Minister of the Economy to “ensure that all frozen accounts of the National Social Investment Programmes Agency are unfrozen within 72 hours to enable the smooth recommencement of all the programmes.”
The minister was also tasked to ensure the release of funds to NSIPA for the payment of outstanding stipends owed to 395,731 N-Power beneficiaries nationwide without further delay.
It further mandated the Minister of Humanitarian Affairs and Poverty Reduction, Dr Yusuf Sununu, to ensure that all the administrative bottlenecks hindering the smooth operations of all programmes of NSIPA are immediately removed.
News
Rivers Dep Gov Bags Award
Rivers State Deputy Governor, Prof. Ngozi Nma Odu, has expressed gratitude to the Nigerian Institute of Food Science and Technology for upgrading her to the status of a Fellow by the President and Governing Council of the Institute.
Prof Odu expressed this when a delegation of Fellows and other members of the Institute visited her at the Government House in Port Harcourt, yesterday to perform her Investiture as a Fellow of the Institute of Food Science and Technology.
Prof. Odu said that what the Institute has done for her is exceptional, adding that she feels so humbled by their kind gesture and proud of the Institute which she described as a trailblazer.
I want to thank our Emeritus Prof. Simeon Achinewhu for keeping the flag flying and I am pleased to be a part of this family”. Prof. Odu further stressed.
The Deputy Governor who called for continuous prayers for the success of the Governor Fubara-led Administration, noted that prayers were their greatest defense in times of trouble.
“This Administration needs God to sustain us, we need God to direct our steps, we need God to navigate especially when you have challenges, God has done it thus far and I believe the good Lord shall lead us until we finish when he wants us to finish.” The Deputy Governor further stressed.
Also speaking the leader of the delegation, Emeritus Prof. Simeon Achinewhu, said they were in the Government House to decorate the Deputy Governor as a Fellow of the Nigerian Institute of Food Science and Technology, in line with the directive of the national body of the association to formally present the Deputy Governor with her award and certificate of membership, following are indelible contributions to the growth of the association.
Earlier, the Chairman South -East Chapter, of the Nigerian Institute of Food Science and Technology, Dr. Bariwere Samuel, while assuring the State Government of its readiness to partner with the State on its food safety programs, said it is willing to deploy its expertise and resources to compliment the State Government’s efforts in ensuring the availability of safe and nutritious food for its citizens.
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