Features
Gas Flaring: Where Goes The Funds From Fines?
President Muhammadu Buhari, Minister of Petroleum Resources
Over the past several
decades, oil-producing communities in Nigeria have experienced and suffered from oil pollutions and gas emissions or gas flaring occasioned by activities of multinational oil companies. It has been commonly termed a natural disaster. In fact, it has become a principle that influences their environments and lives as well as economies. The change has been so difficult and the magnitude so great as to make a full appreciation of the impact it has on the people, their economy, and the polity exceedingly difficult.
With the increasing rate of gas flare, which is generally expected to continue until 2030 and beyond at a higher level, we are expecting more consequences of gas flare without a substantial move to curb it. It is adversely affecting the economic power and prosperity of the oil-bearing communities as its production intensifies. In short, their economies are in the process of extinction as the country intensifies effort in exporting gas and oil and producing for local consumption. The oil-production areas share the hazardous effects.
This is why the Chairman of Ogba/Egbema/Ndoni Local Government Area of Rivers State, Mr Austin Ahiamadu described as unjust and wrong for the Federal Government to keep the money accruing from the fines paid by oil companies on gas flaring and oil pollution instead of giving such money to the host communities. The council boss who made the assertion at a public function organised for oil companies and oil-producing host communities in Ogba/Egbema/Ndoni and Ahoada-West Local Government Areas in Port Harcourt, argued that since the impact of gas flaring and oil pollution directly affects the host communities, such monies should be given to them as compensation for the hazards and difficulties they suffer.
Represented by the council secretary, Barrister Victor Onyije, Mr Ahiamadu noted that since the Federal Government normally has 60 per cent equities in the joint venture business, the federal government was by implication part of the party that caused the flare and pollution, and wondered why a party that cause the problem should turn around to benefit from the fine instead of being part of those that should suffer the penalties.
“Equity, justice and logic demand that the community people who suffer the negative effects of the flare and pollution should enjoy the money derivable from the fine”, he stressed and called for a review of the existing or appropriate law for the interest and protection of the host communities.
Indeed, host communities of oil companies face a lot of hazards which have far-reaching negative implications on their socio-economic life. For a sustainable development and harmonious relationship to exist in oil-producing communities, justice and fairness must prevail in their dealings.
Projections for future disasters that would result from gas flaring and oil pollution are generally very positive given the attitude of the government towards its stoppage coupled with the plans by oil companies for rapid growth in their oil and gas business. All the oil companies, no doubt, on daily basis, plan for growth with a strategy for expansion of their storage systems to meet the growing level of internal and external demands. Although they may regard their explorations and development activities as compatible with the well-being of the natural environment and the people, the companies have not been able to monitor and regulate their activities with a view to the timely identification and prevention or solution of any environmental or safety problems associated with their activities.
If the Federal Government is sensitive to the plight of the oil companies’ host communities, they do not have to be reminded on what to do with the funds accruing from the fines paid by these companies for gas flaring and oil pollution. The attitude of the federal government and its decision to keep the money does not and will not augur will with the oil-producing communities whose developmental needs should be paramount and a priority in the scheme of things or programmes of all governments. The monies accrued from the fines must be channeled to the development of the areas and not for the federal government to withhold or divert it.
The money is meant for the consolidation and restructuring of the damaged resources, land, crops, houses, and so on, of the people in the oil-communities, including their rehabilitation. They have financial problems and youth restiveness erupt as a likely case in point. Investment in these areas is in high risk while there is a downturn in the economic activities of the people. All these signal crisis as development has been on a very low level for long, despite their contributions to the nation’s economic growth. Government’s policies are not focused on the growth of the oil-bearing communities and nothing is being done to support their growth. The room to increase per capita incomes remains ample in all of these communities.
Growth in the oil-producing areas must be driven by events rather than being starved and enslaved on their rights by external forces. They need transformation through the provision of infrastructure needs and be salvaged from their impoverished base. Infrastructure provision has been at a low level in these areas for long with high demand for water, electricity, transport, roads, sanitation systems, education, health, among others more so as population continues to rise.
Continued rapid progress of the oil-producing areas depends on high rates of investment in infrastructure through the funds accrued from fines and the 13 per cent derivation funds accruing to the states. Infrastructure needs are among the major and greatest problems in the oil areas. As expected and noticed, Ogba/Egbema/Ndoni and Ahoada-West are the two areas with the highest risk of environmental pollution resulting from oil and gas emission. They have more communities and commitment or stakes in the economy of the nation for many decades.
Leading oil companies operate in the areas and pay huge money as fines to the federal government but they do not benefit from them. The operations of the companies are meant to drive massive development to the areas to serve as compensation for their suffering and the resources gotten from their lands. Even though that cannot be seen as a sanguine about the future, continued infrastructural development will, however, put some hope in the people and provide unprecedented growth to the areas. It is an extraordinary fact that the funds paid as fines by oil companies will pave way for investments in the oil areas as they are currently providing the financial resources that have helped to sustain development and investments elsewhere in the country, as well as hold down the country’s interest rates and foreign earning.
Witness to the financial health of the country is the fact that the oil producing communities are the largest holders of the nation’s foreign currency reserves in the world. So, the federal government should re-examine its decision to collect the fines without using the accrued monies for the development of oil-producing communities hosting the companies. It is the responsibility of the federal government and states to carry out infrastructure investments in the oil areas with the 13 per cent derivation funds and the money accruing from the fines on oil pollution and gas flaring.
These funds should be used to positively impact on oil-producing communities in Ogba/Egbema/Ndoni, Ahoada-West Local Government Areas and other oil-producing areas of the country. These communities do not have anything to show for the oil exploration going on in their areas, inspite of the 13 per cent derivation and the money accruing to them from the fines on oil pollution and gas flaring.
The federal and state governments should come to the aid of the people in oil-producing communities. Their roads are bad while some do not have electricity and good drinking water, and those who have are not enjoying them because of poor equipment. Hospitals and basic amenities are not in the communities to make life worth living. The Federal government should release the money from the fines while states should set aside 40 per cent of the 13 per cent derivation fund for the exclusive development of the oil-bearing communities to reduce poverty in the areas. They should tell us the channel to which these funds are directed.
While development and growth indicators are poor nationwide, the greatest need for attention is predominantly in the oil-bearing communities or areas. Development activities must be designed to improve the quality of life of the people who in turn, will contribute to the development of the country and promote peace and stability.
Development at the community level will ensure flagship activities, assist strengthen state and local government capacity to deliver basic services and generate revenue for economic sustainability. Through innovative approaches such as skills acquisition centres and rural industrialisation, government can provide welfare needs of the people in the oil-producing communities as well as create employment for the youth.
People in the oil-bearing areas need to be integrated into government programmes to give them a sense of belonging and address their special vulnerability. Government should support the aspirations of oil communities through a well-planned roadmap of development as well as strengthen local governments of the communities to deliver quality basic amenities and services to the people, while providing quality education for their children.
Shedie Okpara
From the fore going, the fight against drug trafficking should be treated as an international challenge with open collaboration, if the world leadership must win the fight!.
The circumstances or should I say the improvement on drug related activities are modifying and updating on daily basis. A close friend of mine in the United States of America who recently visited Jamaica, came with a lot of complicated information about drug trafficking and transaction. Being a qualified Nurse in US and on a visit to the Reggae Country (Jamaica), she said she was put aback when a man approached her and introduced himself as a Pharmacist. According to her, she immediately picked interest due to her professional background. To her, a business partner is birthed. But she was shocked to the narrows on learning that drug dealers or traffickers and subriquited Pharmacist in that Country. From her account, they ( The Jamaican Pharmacists), are the first set to people to meet and greet you at the Airport. No government or authority challenges them in the open due to the sophisticated nature of their transportation
Come to think of it, who would want to attack a Pharmacist on duty? Nigerians are not left out in the improvement on drug deal. A chat with a confident in the National Drug Law Enforcement Agency ( NDLEA) Rivers State Command, so revealed. The Officer draw my attention to the movement of Dispatch Riders. He said part of the reasons they ride with almost speed equivalent of the thunder lightning, is to meet up with the appointment of delivering hard drug consignment to a client of theirs. According to him, those guys popularly referred to as Yahoo Boys are the ones who now payroll dispatch riders so that they can deliver their consignment ( hard drugs) on schedule no matter the sort of traffic or weather condition. The fear of loosing rich clients and that of the unknown treatment that may come of the Boys, as the officer puts it, drives the Riders crazy thus the reason to speed even at the expense of their lives.
The account of a prominent Party Promoter, Wayne Anthony, as obtained online recently, also pointed out that ‘No Legislation Will Stop Clubbers From Doing Drugs’ Party promoter, Wayne Anthony, arrived in Ibiza, a Spanish Island in 1988, at the same time as dance music and the party drug ecstasy. Despite hallucinating badly enough to make him give up the lifestyle forever, he says laws will never stop clubbers taking drugs. “I don’t think you can control these things,” said former party promoter Wayne Anthony. He arrived in Ibiza in 1988 and began setting up club nights and raves in some of the island’s most iconic venues. In the years that followed, the sleepy Spanish island turned into a raver’s haven of clubbing and hedonism, with party drugs like ecstasy commonly found. “What Ibiza represented was this beautiful, hot island which was visually stunning and we knew you could party there quite legally,” said Wayne. “You didn’t have to look over your shoulder. You could just be as free as you possibly could be.”
That freedom came with a price. Along with the lavish clubs, all-day-benders and hot Spanish sun came drug cartels and crime. The city transformed into one the world’s most vibrant party capitals, “fuelled by a dangerous and lucrative drugs trade which drew as many criminals to its shores as it did party animals”. Wayne, one of the contributors to the documentary, spoke to Sky News ahead of its release.”I’m not going to sit here and say the cartels aren’t there. They are all there and they’ve been there from the ’90s,” said Wayne. But he said most people tried to ignore the organised crime going on around them. According to Wayne, clubbers usually took the approach of: “‘Give me 10 E’s . Behind the scenes of the filming of Ibiza Narcos with Wayne Anthony. Behind the scenes of the filming of Ibiza Narcos with Wayne Anthony. Hallucinating giant spiders Although he described the Balearic island as the “motherland”, it was eventually a bad experience with drugs that convinced Wayne it was time to leave Ibiza.
He’d been partying for days when he realised he’d taken too many drugs. A friend told him to drink cough medicine, dangerous advice that he now says could have killed him. “I saw the worst hallucination I’ve ever seen in all of my life. I ended up locking myself in the villa with all the shutters down. When he sobered up, he realised he had “come to the end” of his party life on the island. “I never looked back. I never took another drug. I got away from the club world.” ‘I don’t think you’re going to be able to stop it’ Despite his life-changing experience, he doesn’t think criminalising drugs is a good idea – or particularly effective. “If you’re old enough to vote for who’s going to be a world leader, if you’re old enough to put your name down on debt for 25 years, I feel like you should be old enough to govern what you put inside your own body, you know?” said Wayne.
Back to Nigeria, some illicit drugs worth over N30billion seized at Onne Port in Rivers State.
This blood chilling development forced the Federal Government to declare a state of emergency at the Onne Port, following what authorities described as repeated incidents of importation of dangerous cargo, including arms and ammunition through the said port. To this effect, the government said it was immediately implementing emergency protocols at Onne Port for the next three months by conducting thorough examinations of all suspected containers in the premises.
The Comptroller-General of Customs, Bashir Adeniyi, in charge of the port via a press conference, said it henceforth, unveiled the seizures of illicit goods by the Nigeria Customs Service, Area 2 Command, Onne in Eleme Local Government Area of Rivers State. In defence for his action, Adeniyi said the recurring incidents posed a threat to national security, adding that the health of citizens at the Onne Port is increasingly being used as a destination for dangerous and illicit cargo, describing it as a disturbing trend.
The customs boss stated, “Earlier today, I joined numerous stakeholders to take a significant step towards the cause of trade facilitation through the inauguration of upgraded facilities provided by the West Africa Container Terminal, Onne. “As I express delight that trade facilitation is getting traction in Onne Port, I cannot help but call your attention to a grave concern. This has to do with the repeated incidents of national security breaches unfolding in Onne Port. I appreciate your presence, as we all have a shared responsibility in safeguarding our national security. As we are all aware, the policy thrust of Mr President supports the re-energising of our business environment to drive faster import clearance and grow our capacity for exports, Our emphasis has been to promote initiatives that speak to Trade facilitation and economic development. “It is a matter of regret that criminal elements in the international supply chain are exploiting our pro-trade stance to commit atrocities bordering on national security breaches”.
“The attempts to test our will through the importation of dangerous cargo through this port has necessitated the declaration of a state of emergency in Onne Port, coming on the heels of a seizure of a huge cache of arms a couple of months ago. It is disheartening that perpetrators have not backed down on their illegal acts. Recent intelligence and seizures have revealed a disturbing trend; Onne Port is increasingly being used as a destination for dangerous and illicit cargo. The scale and nature of these illegal importations pose a significant threat to our national security and the health of our citizens. Today, we are here to showcase yet another series of significant seizures made by the diligent officers of the Area 2 Command. On display are twelve containers of illicit goods intercepted through a combination of intelligence gathering, inter-agency collaboration, and meticulous physical examination. Seizures on Display include: Three (3) x 40-feet containers: Containing 562,600 bottles of 100ml cough syrup with codeine and 3,150 pieces of chilly cutters, with a Paid Duty Value (DPV) of N4,716,573,846.
“Others are, three x 40-feet containers containing 380,000 bottles of 100ml cough syrup with codeine, 24,480,000 tablets of Royal Tramadol Hydrochloride, 5,350,000 tablets of Tapentadol and Carisoprodol, and other items, with a DPV of N17,432,506,000 were seized”.
According to the report, more seized items were, “Five (5) x 40-feet containers; Containing 892,400 bottles of 100ml cough syrup with codeine, 1,300,000 tablets of 50mg Really Extra Diclofenac, 7,250,000 tablets of 5mg Trodol Benzhexol, and other items, with a DPV of N8, 128,568,295,90. This very action of the Nigeria Customs Service, further complicated the hope of how soon the fight against drug trafficking could be brought to a halt owing to its high profile nature.
Another hair-raising report of the illicit drug deal has it that when NDLEA bursted a Snake-Guarded Shrine Used For Storing Illicit Drugs sometime ago in Edo State. This very news report was published in The Tide Newspaper on June 24, 2024. According to the report, NDLEA said its operatives uncovered a shrine, guarded by a snake, being used for storing illicit drugs, during an operation in Edo State. The Agency in a statement by its spokesperson, Femi Babafemi, added that its operatives discovered a specially constructed large hole in a wall, hidden behind wallpapers and fetish objects used for drug storage. It further noted that methamphetamine, Loud, Colorado and Arizona, all strong strains of cannabis with a total weight of 8.743kg among others, were recovered from the shrine.
To be cont’d
King Onunwor
The persistent clash between farmers and herders in Nigeria has been a longstanding issue. These conflicts, often, over resources like land and water, have led to loss of lives, destruction of property, displacement of large numbers of people, deep-seated mistrust between communities and insecurity. Herders, traditionally nomadic, move their livestock in search of grazing land and water. Farmers, on the other hand, require the same resources for their crops. This competition often leads to clashes, especially in areas where land is becoming increasingly scarce due to population growth, climate change, and environmental degradation. As these clashes intensify, there has been a growing call for sustainable solutions. Two weeks ago, President Bola Tinubu took a bold step towards tackling the issue by inaugurating the Presidential Committee on Implementation of Livestock Reforms and creating the Ministry of Livestock Development.
The committee which has the president as the chairman and the former Chairman of the Independent National Electoral Commission (INEC), Professor Attahiru Jega as the deputy chairman has the mandate to address obstacles to agricultural productivity and open up new opportunities which benefit farmers, herders, processors, and distributors in the livestock-farming value chain as well as propose recommendations aimed at fostering a peaceful co-existence between herders and farmers, ensuring the security and economic well-being of Nigerians.The establishment of the Ministry of Livestock Development was part of the recommendations of the National Livestock Reforms Committee. Part of the 21 recommendations submitted to the president include: “This agenda should include the establishment and resuscitation of grazing reserves as suggested by many experts and well-meaning Nigerians and other methods of land utilisation.
“Create the Ministry of Livestock Resources in line with practice in many other West African countries. In the alternative, Federal and State Governments should expand the scope of existing Departments of Livestock Production to address the broader needs of the industry,” among others. Experts in the agricultural sector have posited that the livestock industry can create millions of jobs directly in farming, processing, and distribution, and indirectly in related sectors like feed production, veterinary services, and marketing. It provides livelihoods for rural populations, helping to reduce poverty and improve the quality of life in rural areas. It also increases the Gross Domestic Product (GDP) and foreign exchange earnings through the exports of livestock and livestock products such as meat, dairy, wool and leather.
According to them, a well-funded livestock industry supports the growth of agro-processing sectors, such as meat packing, dairy processing, and leather manufacturing, adds value to raw products and creates additional economic activity as well as stimulates the development of supply chains, including logistics, packaging, and retail, contributing to broader economic growth. It enhances economic resilience by diversifying the agricultural sector and providing a buffer against crop failures or other agricultural shocks and many more. Some other agriculturists have also opined that the livestock industry in Nigeria is currently underdeveloped and that by the creation of the ministry of livestock development will open up the industry which will be a huge money spinner for Nigeria.
Reports have shown that a Livestock Ministry can play a pivotal role in mitigating conflicts between farmers and herders by implementing policies and programmes aimed at fostering coexistence and sustainable resource management. The Ministry can work towards clearly demarcating grazing routes and farming areas. This would reduce instances of trespassing and accidental crop destruction, a common flashpoint for conflict. While introducing rotational grazing systems can ensure that land is used sustainably, preventing overgrazing and land degradation, establishing water points and boreholes specifically for livestock can reduce competition for water resources. Similarly, promoting the development of pasturelands through reseeding and controlled burns can improve grazing conditions.
According to a veterinary doctor, Dr Andrew Obadiah, by providing training for herders on sustainable livestock practices and for farmers on conflict resolution, both parties can understand the importance of coexistence. He said that extension services of the ministry can offer advice on improving livestock health and productivity, reducing the need for large herds and extensive grazing. “Setting up local committees involving both farmers and herders to mediate disputes can provide a platform for dialogue and peaceful resolution. Encouraging community-based conflict early warning systems can help prevent clashes before they escalate”, he emphasised.For Mrs. Stella Ugwu, a farmer, having a ministry dedicated to the development of the livestock industry can help in diversifying income sources for both farmers and herders and in turn reduce dependence on land.
”For instance, promoting agro-pastoralism can provide farmers with livestock and herders with agricultural produce”, she explained, adding that providing incentives for adopting sustainable practices, such as subsidies for fodder production or crop insurance, can ease economic pressures. Ugwu was however of the opinion that the creation of a new ministry to handle livestock affairs was uncalled for, since the job can effectively be done by the Technical and Service Department of the Federal Ministry of Agriculture and food security and its equivalent on the states level.In some countries, the establishment of a Livestock Ministry or similar bodies has shown promising results. For example, Ethiopia’s Ministry of Agriculture includes a dedicated department for livestock which has successfully implemented programmes to improve pastoral livelihoods and reduce conflicts.
In Kenya, the establishment of the National Drought Management Authority has helped manage resources better, thus reducing clashes between herders and farmers during dry seasons.The president of Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN), Othman Ngelzarma, sees the Ministry of Livestock Development achieving the same feat for Nigeria in the near future. He told newsmen that, “MACBAN expresses its deepest appreciation to the Federal Government for creating a ministry of livestock to unlock the trillion-naira livestock economy and create qualitative and productive jobs across the value chain to improve the Nigerian economy. With this development, MACBAN believes the hope of the Nigerian pastoralists is now achieved under the Renewed Hope Agenda.
However, the Middle Belt Forum took a different view of the proposed Ministry of Livestock Development, saying it was not enough to sustainably resolve the decades-long farmers-herders crisis in the country. According to the National President of the association, Mr. Bitrus Pogu, what is needed to end the perennial farmers/herders clashes is a deliberate action by regulatory bodies and the government to stop criminal elements from carrying out deadly attacks on innocent Nigerians, mainly farmers. Hear him: “If the reason for creating the Ministry is to stop clashes, I think it is wrong because all of these attacks and killings that are happening have nothing to do with conflicts between farmers and herders. “Farmers have never connived at any given time to go and attack herders, but rather, criminals who happen to be Fulani gang up and attack farmers, kill, maim and chase them out of their ancestral homes.
“Then, the Fulani will come and occupy them. So, it is more about invasion, criminality, and terrorism. And the majority of those they hire to do these evils are not even those who have cattle. So, a deliberate action has to be taken by the government against the perpetrators, which will address the criminality.” Mr. Pogu suggested that the government should adopt ranching for productivity and enduring peace between the pastoralists and farmers in particular and the entire country in general.While the establishment of a Livestock Ministry presents a viable solution, it is not without challenges. Funding constraints, bureaucratic inefficiencies, and corruption can hamper its effectiveness. Additionally, deeply ingrained cultural practices and mistrust between farmers and herders can be difficult to overcome.
Critics argue that without a holistic approach that includes land reform, climate change adaptation, and broader economic development, a Livestock Ministry alone may not be sufficient. Therefore, it must work in tandem with other governmental and non-governmental bodies to ensure comprehensive solutions. “A dedicated Livestock Ministry, with its focus on sustainable resource management, conflict resolution, and economic incentives, offers a promising avenue to address the root causes of these clashes. However, its success depends on effective implementation, adequate funding, and the cooperation of all stakeholders involved. With the right strategies and commitment, devoid of any political or selfish interest, it can play a crucial role in fostering peace and prosperity in affected regions”, they advised.
Calista Ezeaku