Headlines
Crude Oil Theft Hurting Nigeria’s Economy, Shell Laments
Shell Petroleum Development Company (SPDC) of Nigeria has expressed concern that crude oil theft remains a major challenge affecting the Nigerian economy.
The Head, Corporate Relations, Nigeria and Director SPDC of Nigeria Limited, Mr. Igo Weli, said this on Tuesday in Port Harcourt, during an engagement with journalists on ‘Crude Theft, Pipeline Vandalism and Illegal Refineries.’
Weli, who noted how Nigeria had deteriorated to the level it was, which he stated included the degraded Niger Delta environment, described crude oil theft as an organised crime fully funded by prominent and experienced individuals in the society.
He explained that though Shell operates in over 70 countries, the multinational has never experienced the level of sabotage it has seen on its facilities in Nigeria.
According to Weli, SPDC is not leaving Nigeria, as it still has future with the country. He regretted that if all the international oil companies (IOCs) leave Nigeria, it would affect the economy worse than it is experiencing.
Weli said, “You hear a lot of people clamouring for clean-up of Niger Delta, the point I am making is simple, that people should make the end-to-end link between their actions and the impact.
“If over 90 per cent spills are caused by people with axe, saws and even explosive weapons, then you are creating a problem that will eat up the budget you would have used for education, health, etc.
“If you break pipes and the pipes leads to spills and it is very expensive to clean up and the government had to clean up for the environment to be safe for us, then you channel resources needed for other things to that. But it is avoidable.
“There is a mess in the environment which is robing everybody. And as Nigerians, people who are interested in the future of this country, that should be the focus. How do we stop that mess? That mess has caused to our currency losing value.”
Speaking further, he said, “what we (Shell) do in Nigeria to protect our resources, we don’t do anywhere else in the world. The company is in over 70 countries and we are suffering such level of attack from only one country, sometimes lined up litigations”.
Speaking on SPDC going onshore, Weli stressed that the company was pushing hard onshore to get all the community committed.
While commending effort of the Rivers State Governor, Nyesom Wike in tackling the issues of illegal refining activities and soot pollution in the state, Weli urged, “governments at all levels to help stop crude oil theft and pipeline vandalism.”
In his presentation, Mr John Okojie, Lead, Right of Way and Encroachment, SPDC, noted that the biggest problem in oil industry was crude theft.
He said to ensure the control of the sabotage and ensure safe environment, Shell has continued to collaborate with communities effectively through direct surveillance and GMoU surveillance.
He added that the company also proactively engages Government Security Agencies (GSAs) to prevent crude oil theft, illegal refineries and pipeline vandalism.
On his part, Usman Anibasa who spoke on, “crude oil theft and illegal, refining: Implication for Remediation and Environment,” disclosed that crude oil theft increased to 108,000 bpd in Q1 2022, from 103,000 bpd in 2021.
Anibasa explained that, “$1 billion was lost in Nigeria’s Q1 revenue to crude oil theft.”
The Commissioner of Police in Osun, Mohammed Abba, has pledged collaboration with the National Drug Law Enforcement Agency (NDLEA) in tackling the menace of drug Abuse in the state.
A statement by the Police Public Relation Officer, CSP Yemisi Opalaola, on Thursday in Osogbo, said that the commissioner made the pledge while playing host to NDLEA State Commandant, Adetula Lawal.
Abba expressed his readiness to further strengthen the healthy partnership between the two agencies.
The police commissioner said that the fight against drug abuse required collective efforts.
According to him, many of those committing crimes are doing so under the influence of dangerous drugs.
Abba promised to provide the necessary support to the NDLEA in the state.
The statement quoted Lawal as commending the police commissioner’s efforts in combating crime and criminality in the state.
He reiterated the agency’s collaboration with the police, as a leading security agency to tackle the menace of drug abuse and trafficking in the state.
Financial experts have raised alarm that the implementation of the 4 per cent Free-On-Board (FOB) Levy on imports would exacerbate inflation in the country.
The News Agency of Nigeria (NAN) report that the Nigeria Customs Service (NCS) on Feb. 5 announced its introduction of the FOB levy on imports.
According to Abdullahi Maiwada, the spokesman of the service, the introduction of the levy was in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023.
“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a 4 per cent charge on the Free On-Board (FOB) value of imports.
“The FOB charge, which is calculated based on the value of imported goods, including the cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the service.”
However, a former Chairman, Manufacturers Association of Nigeria (MAN), Ogun Chapter, Dr Wale Adegbite and Evans Osabuohien, a Professor of Economics, said that the levy would worsen the nation’s inflation rate.
In separate interviews with the News Agency of Nigeria (NAN) on Monday in Ota, Ogun, Adegbite and Osabuohien of the Department of Economics, Covenant University, said that the policy would negatively impact the economy.
The former MAN chairman said that the 4 per cent levy by the NCS “is a disaster and will worsen an already bad situation with multiple devastating effect on the economy.
” Why would the government inflict more hardship on the population as this new policy will certainly lead to more price increase, thus further increasing the country’s inflation rate.
“In addition, the masses will suffer more because of the impending price increase without any corresponding increase in income.”
Also, Osabuohien said that though the new FOB policy by the NCS was meant to generate more revenue for the federal government, but it would negatively impact on the economy.
He said that the NCS action would increase the cost of living of households.
The economist explained further that the development would increase the cost of operations of Small Medium Enterprises (SMEs), especially those companies that depend on imported raw materials for their production.
“This additional cost to be incurred through the 4 per cent increase in FOB would be transferred to the consumers and it would automatically trigger increase in the nation’s inflation rate,” Osabuohien said.
U.S. President Donald Trump plans to impose tariffs of 25 per cent on steel and aluminium imports into the United States, he said on Sunday.
“Any steel coming to the United States is going to have them, 25 per cent tariff,” Trump said, according to journalists travelling with the president. When questioned about tariffs on aluminium imports, Trump replied, “25 Per cent for both.”
Trump also confirmed his plan to announce further reciprocal tariffs in the coming week.
He spoke of an announcement on Tuesday or Wednesday.
“Very simply, if they charge us, we charge them, Trump told reporters, adding that the tariffs would go into effect almost immediately.”
U.S. tariffs of 10 per cent on Chinese goods took effect from Feb. 4.
The planned tariffs of 25 per cent on Mexico and Canada were suspended for an initial period of 30 days following promises from the two countries to increase border security measures.
Trump won November’s presidential election promising to slap high tariffs on foreign goods to reduce U.S. trade deficits.
He implemented a number of duties during his first term from 2017 to 2021.
2Baba’s Family Declares Him Missing, Petitions DSS Amid Controversy
UNIZIK Expels Student for Assaulting Lecturer Over TikTok Video
Adamawa Unveils Gender Policy to Boost Girls’ Education
Facebook, Instagram Temporarily Allow Posts on Ukraine War Calling for Violence Against Invading Russians or Putin’s Death
Nigeria, Other West African Countries Facing Worst Food Crisis in 10 Years, Aid Groups Say
New York Consulate installs machines for 10-year passport
-
Business3 years ago
Facebook, Instagram Temporarily Allow Posts on Ukraine War Calling for Violence Against Invading Russians or Putin’s Death
-
Headlines3 years ago
Nigeria, Other West African Countries Facing Worst Food Crisis in 10 Years, Aid Groups Say
-
Foreign3 years ago
New York Consulate installs machines for 10-year passport
-
Technology5 months agoZero Trust Architecture in a Remote World: Securing the New Normal
-
Entertainment2 years agoPhyna emerges winner of Big Brother Naija Season 7
-
Business9 months agoNigeria Customs modernisation project to check extortion of traders
-
Business11 months agoWe generated N30.2 bn revenue in three months – Kano NCS Comptroller
-
Headlines8 months agoPhilippines’ Vice President Sara Duterte resigns from Cabinet
