Oil & Energy
Rivers Electricity Workers Protest Planned Privatisation
Employees of the Power Holding Company of Nigeria (PHCN) in Rivers State joined their counterparts in other parts of the country to protest Thursday last week against the Federal Government planed privatization of the company.
Workers in the thirteen business units in the state who had coverage in the morning at the Diobu Business Unit premises along Ikwerre Road with plan to protest to the Rivers State Government House and the State Assembly Complex but were however prevented from matching in the streets by security agents.
Our power reporter who covered the event said as early as 8.00 am workers had already gathered at the Diobu Business Unit premises but leadership of National Union of Electricity Employees (NUEE) were still discussing with the state Police Command for permission to carry out the rally and that until 11.00 am they could not obtain permission, instead, the presence of Police men where building up at the venue.
The PHCN workers chanting solidarity songs wielded plycards with the inscriptions: “No to privatization, u\yes to Liberalisation”, “Pay us the balance of 137 per cent of our salary increase”, “Casualisation causes casualty”, “We say no to Prof. Nnaji’s Wayo, lie, lie”, “Casualisation is modern day slavery”, “FG Regularise the 10,000 verified casuals in PHCN”, Publish the Power Sector Report and tell Nigerians the truth”, amongst others.
Comrade Micheal Mbari, Secretary of Rivers State branch of NUEE who spoke to The Tide accused the government of hiding the truth about pHCN privatization from Nigerian masses.
The NUEE scribe explained that the workers are not against the reform in the sector but rejected privatization as it would mean selling off the company to the friends and cronies of those in power. “We have severally advised the federal Government to liberalise the power sector so that it would open more opportunities for private investors to come and compete with PHCN instead of outright sale of PHCN”, he stated.
He noted that the power sector remains a key sector that galvanises the industralisation as well as the socio-economic development of any nation stressing that it would be wrong to take such a strategic sector from the hands and control of the government and hand it over to overzealous private investors as the step will lead to more woes to Nigerian masses who will not be able to afford the high tariffs by profit driven private investors.
According to him, many countries in the world tried the approach and it failed. “South Korea, Venezuela, South Africa, Iran, Agentina tried it and failed, so why try it here in Nigeria by privatizing PHCN?, he querried.
The Union claimed that NITEL, NAFCON, ALSCON, Nigerian Airways, Daily times that were privatized under Chief Olusegun Obasanjo administration have collapsed and called on President Goodluck Jonathan to retrace the step of FG on PHCN privatization for the interest of Nigerian masses.
“137 per cent balance of our salary increase is still lying there with nobody addressing it, 10,000 casual staff of the company that were verified is not being addressed and other promises not fulfilled, yet the government is hell-bent on privatizing the company”, said Comrade Mbari.
He said the workers decided to protest so that Nigerian masses will know the plight of PHCN workers.
Comrade Benibo Benjamin NUEE Chairman, Diobu Business Unit described the interference of the security agents in the workers’ peaceful rally as undemocratic stating that nothwithstanding the Police restriction, the rally was a huge success as the workers came out enmass and their message have been sent out to the Nigerian masses.
He called on the government to also remove the heavy presence of the Police and Military men whom he said have taken over the installations of the company in the state.
The security agents wisked off three journalists who were covering the event and also seized their cameras but about 45 minutes later, they were brought back to the scene.
An assistant Commissioner of Police, Habilla Joshakt who addressed the crowd said the journalists were not arrested stressing that the workers were not permitted to match in the streets to avoid criminals from hijacking the rally to cause problems in the state.
“If we had seen your letters or permission, we would have organized security contingences to monitor your movements. It took us sleepless nights for us to get to where we are in the state today security wise and would not take any chances that can disrupt the security situation in the state”, he said.
The Tide gathered that the rallies were disrupted by security agents especially in Delta, Ondo, Ekiti, Ogun amongst other states where protesters were arrested.
Chris Oluoh
The Bill for an act to prohibit gas flaring, encourage commodity utilisation, and provide for penalties and remedies for gas flaring violations has passed its second reading in the House of Representatives.
Sponsored by the Member representing Ikorodu Federal Constituency (APC, Lagos), Babajimi Adegoke Benson, the bill seeks to prohibit the flaring and venting of natural gas, except in strictly regulated circumstances, while encouraging the utilisation of gas resources to foster economic growth and energy generation.
The proposed legislation aims to mitigate the environmental, health, and economic impacts of gas flaring, aligning Nigeria’s oil and gas operations with international climate change commitments.
Offenders, who violate the provisions of the proposed law, would face stringent penalties, including fines of $5 per 1,000 standard cubic feet of gas flared and potential suspension of operations for repeat violations.
Leading debate on the general principles of the bill, Benson said gas flaring has plagued Nigeria for decades, resulting to severe environmental degradation, public health crises, and economic losses while it environmentally, contributes to greenhouse gas emissions, global warming, and acid rain, exacerbating climate challenges.
The lawmaker said public health impacts of the practice are equally dire, as pollutants from gas flaring cause respiratory and cardiovascular diseases, particularly among residents of communities close to flaring sites.
According to him, economically, flaring results in the waste of a valuable resource that could otherwise be harnessed for energy generation or exported to generate revenue.
Benson insisted that the bill was designed to address those issues while bringing Nigeria in line with global standards such as the Paris Agreement on climate change.
“The bill provides for a comprehensive prohibition of gas flaring except in emergencies or when explicitly authorised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“Operators are required to submit and implement Gas Utilisation Plans, detailing how gas that would otherwise be flared will be captured, processed, or commercialised.
“Offenders, who violate these provisions, face stringent penalties, including fines of $5 per 1,000 standard cubic feet of gas flared and potential suspension of operations for repeat violations. Furthermore, the Bill ensures that communities affected by gas flaring are entitled to compensation and environmental restoration, creating a mechanism for redress.
“Transparency and accountability are integral to the enforcement framework of this Bill. Operators must submit regular reports on gas flaring incidents, which will be audited and made publicly available by the NUPRC. This approach ensures public oversight and stakeholder engagement, fostering trust and compliance.
“Nigeria’s adoption of this Bill positions the country to emulate such success, ensuring a balance between environmental stewardship and economic development.
“The implementation of this Bill will be overseen by the Nigerian Upstream Petroleum Regulatory Commission, which will monitor compliance through regular audits, enforce penalties, and facilitate gas utilisation projects in collaboration with operators and development partners.
“The Anti-Gas Flaring (Prohibition and Enforcement) Bill, 2024, is a timely and necessary response to one of Nigeria’s most pressing environmental challenges. Its provisions are both practical and forward-looking, addressing immediate concerns while laying the groundwork for a sustainable future.
“I urge all Honourable Members to support the Second Reading of this Bill as a demonstration of our collective commitment to environmental protection, public health and economic progress”, he added.
###
Oil major, Shell, has restated its commitment to the development of Nigerian companies through contract awards and scaling up of expertise.
Managing Director, Shell Nigeria Exploration and Production Company ((SNEPCO) Limited, Ron Adams, made the remark while speaking at the Opening Ceremony of the 13th edition of the Practical Nigerian Content forum held in Yenagoa, Bayelsa State, with the theme “Deepening the Next Frontier for Nigerian Content Implementation”.
Represented by the Manager, Business Opportunity, SNEPCO’s Bonga South-West Aparo Project, Olaposi Fadahunsi, he said several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.
Adams said, “Shell companies execute a large proportion of their activities through contracts with third parties, and Nigeria-registered companies have been key beneficiaries of this policy aimed at powering Nigeria’s progress”.
He emphasized that Shell companies in Nigeria also continued to develop indigenous manpower through scholarship programmes with over 3,772 undergraduate and 109 Niger Delta post graduate scholarships since 2016.
“As we speak, beneficiaries of the 13th edition of the Niger Delta Post Graduate Scholarship awards are pursuing their studies in the United Kingdom. The employability rate of the scheme is high with over 98% of the graduates who won the awards securing employment in the oil and gas industry, academia and Information Technology, among other sectors, within one year of completing their studies”.
He commended the Nigeria Content Development and Monitoring Board (NCDMB) for ensuring compliance with the Nigerian Content Act saying “Nigerian content will continue to be an important part of Shell operations”.
The four-day conference hosted by the Nigerian Content Development and Monitoring Board (NCDMB) and participating companies reviewed progress on the development of Nigerian content pertaining to the implementation of the Nigerian Oil and Gas Industry Development (NOGICD) Act since it was enacted in 2010.
Shell companies in Nigeria are among the more than 700 oil and gas entities that participated in the forum with a strong message of support for Nigerian companies, having awarded contracts worth $1.98 billion to the businesses in 2023 in continuing effort to develop Nigerian content in the oil and gas industry.
The Nigerian National Petroleum Company Limited (NNPCL) has sold the first cargo of Port-Harcourt low sulfur straight run fuel oil (LSSR) to Dubai-based Gulf Transport & Trading Limited (GTT).
The company is expected to load the cargo in the coming days onboard the Wonder Star MR1 ship, signalling the commencement of operations at the plant and the exportation of petroleum products.
The ship would load 15,000 metric tons of the product, which translates to about 13.6 million litres.
Although the volume coming from the NNPC into the global market is still small, the development has the potential to impact the Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future, while changing the market realities for Atlantic Basin exporters into Nigeria and other regions.
The sulfur content of the export by NNPC stands at 0.26 per cent per wt and a 0.918 g/ml density at 15°C, according to Kpler, a data and analysis company.
The cargo was reportedly sold at an $8.50/t discount to the NWE 0.5 per cent benchmark on a Free on Board (FOB) basis.
Kpler reported that the development would help displace imports from traditional suppliers in Africa and Europe, as Nigeria’s falling clean product (CPP) imports are already decreasing, dragging imports into the wider West Africa region lower as well.