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Experts Urge FG to Provide Bailout Funds for Marginal Oil Field Awardees

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By Derrick Bangura

As the 2020 marginal oil field awardees currently struggle to raise fund to commence the development of their respective assets and eventually hit first oil production, some industry experts have advised the federal government to consider providing intervention funds for cash-strapped companies.

The experts said the excessive cost of participation during the marginal field bid round and the expensive signature bonus they were asked to pay have eroded the commerciality of the assets, making it difficult for them to raise fund to proceed to drilling after one year of issuing them award certificates.
Speaking at the Arbiterz marginal oil field conference in Lagos, with the topic, “From License to Oil: Fundraising for Marginal Fields,” the Subsurface Manager, Energy and Mineral Resources Limited (EMR), Mr. Collins Ibekwe, said the government should consider providing bailout funds to the companies either in form of returning the signature bonuses or through any other form of financial assistance to them.

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Ibekwe explained that his call for bailout fund for the awardees was based on the fact that there had been instances where government had to intervene to help businesses that were going through financial difficulties just to help them recover and continue to contribute to the nation’s economy.

He maintained that such intervention was needed for the current marginal oil field awardees to enable the companies have fund to proceed to drilling and help to achieve the nation’s aspiration of increasing oil production to three million barrels per day, raise the reserves to 40 million barrels and in turn boost government’s revenue and job creation.

Expressing pessimism about the companies achieving first oil quick enough, as recorded by a couple of the 2003 awardees, Ibekwe maintained that such government financial intervention was necessary to enable the companies recover from the huge burden they were made to suffer by paying the outrageous $125,000 as marginal fields bid round participation fee and the exorbitant $5 million to $40 million for signature bonus per oil field.

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Ibekwe lamented that the government’s charges for the 2020 marginal field bid round participation and signature bonus were astronomically higher than the fees paid by companies during the 2003 bid round and even the fees that were to be paid by companies in the botched 2013 marginal oil field bid round.

He argued that the components of the 2020 bid process including the financial, regulatory, legal, international and other components were designed to essentially make the process very expensive for the bidders, saying the expensive nature of the bid process has eroded the commerciality of the assets.

The 2020 marginal oil field bid round started in June 2020 and by May, 2021, 161 companies were shortlisted as winners of the 57 marginal fields put on offer.

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In May, 2021, the then industry regulator and organisers of the 2020 marginal field bid exercise, the defunct Department of Petroleum Resources (DPR), which has been replaced by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), presented award certificates to 80 of the awardees.

DPR had put the total value of the 57 marginal oil fields at not less than $500 million, having pegged the bid participation fee at $125,000 per company and between $5 million and $40 million as the signature bonus per field.

However, the NUPRC had disclosed that 80 per cent of the awardees had complied in terms of payment while closed to 90 per cent of the companies had complied in forming the Special Purpose Vehicles (SPVs).

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The commission had also disclosed that the marginal oil fields awarded to 33 companies had been revoked following their inability to meet the 45 days deadline required to pay the signature bonus for the fields.

But in his intervention on how to make the marginal field licenses to producing oil, Ibekwe said, “My opinion is this: If we have to be truthful to ourselves, then we have to look at this holistically -think outside the box. What really should be done? Because I think those who put the process together were not long-term-focused. I think they were too short-term focused.

“But it should not be too late to say, let’s reverse this process. Let’s return this money; because to be honest with you, you may say, okay, my interest is to raise money for government. But really, is that an optimal expectation? Should it not be better for our expectation to be: let’s grow new businesses; let’s grow these marginal fields and have many new indigenous operators that are capable.

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Also contributing at the session, Chief Executive Officer, Tritekk Consulting Limited and former Geoscience Business Manager, France, Schlumberger, Mr. Ayodele Fasakin, who equally observed that the signature bonus for the marginal fields was too expensive, adding that the NUPRC should be an active partner to the point of ensuring that operators secure funding to proceed to first oil rather than being interested in raising revenue for government.

In his remarks, Chief Executive Officer, NUPRC, Gbenga Komolafe, who was represented by the commission’s Head of Basinal Assessment and Lease Administration, Mr. Edu Iyang, said the commission had engaged awardees to resolve issues arising from the 2020 marginal field award and had also concluded drafting of model licence document, which he said was critical for issuing the Petroleum Prospecting Licences (PPL) to the awardees.

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Noble Ladies Champion Women’s Financial Independence at Grand Inauguration in Abuja

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Women from diverse backgrounds across Nigeria and beyond gathered at the Art and Culture Auditorium, Abuja, for the inauguration and convention of the Noble Ladies Association. The event, led by the association’s Founder and “visionary and polished Queen Mother,” Mrs. Margaret Chigozie Mkpuma, was a colourful display of feminine elegance, empowerment, and ambition.

The highly anticipated gathering, attended by over 700 members and counting, reflected the association’s mission to help women realise their potential while shifting mindsets away from dependency and over-glamorization of the ‘white collar job.’ According to the group, progress can be better achieved through innovation and creativity. “When a woman is able to earn and blossom on her own she has no reason to look at herself as a second fiddle,” the association stated.

One of the association’s standout initiatives is its women-only investment platform, which currently offers a minimum entry of ₦100,000 with a return of ₦130,000 over 30 days—an interest rate of 30 percent. Some members invest as much as ₦1 million, enjoying the same return rate. Mrs. Mkpuma explained that the scheme focuses on women because “women bear the greater brunt of poverty” and the platform seeks “to offer equity in the absence of economic equality.”

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Education is also central to the Noble Ladies’ mission, regardless of age. Their mantra, “start again from where you stopped,” encourages women to return to school or upgrade their skills at any stage in life. The association believes that financial stability is vital in protecting women from cultural practices that dispossess widows of their late husbands’ assets, while also enabling them to raise morally and socially grounded families.

Founded on the vision of enhancing women’s skills and achieving financial stability, the association rests on a value system that discourages pity and promotes purpose. “You have a purpose and you build on that purpose to achieve great potentials and emancipation,” Mrs. Mkpuma said.

A criminologist by training and entrepreneur by practice, she cautions against idleness while waiting for formal employment. “There are billions in the informal and non-formal sectors waiting to be made,” she said, rejecting the “new normal of begging” and urging people to “be more introspective to find their purpose in life and hold on to it.”

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Mrs. Mkpuma’s management style keeps members actively engaged, focusing on vocational skills and training to prepare them for competitive markets. She is exploring “innovative integration of uncommon technologies” and is already in talks with international franchises to invest in Nigeria, with Noble Ladies as first beneficiaries.

The association’s core values include mutual respect, innovation, forward-thinking, equal opportunity, and financial emancipation. With plans underway to establish a secretariat in the heart of Abuja, the group aims to expand its impact.

The event drew high-profile guests, including former Inspector General of Police, Mike Okiro, and a host of VIPs, marking a significant milestone in the association’s drive for women’s empowerment.

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NEPZA, FCT agree to create world-class FTZ environment

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NEPZA, FCT agree to create world-class FTZ environment

The Nigeria Export Processing Zones Authority (NEPZA) has stepped in to resolve the dispute between the Federal Capital Territory Administration and the Abuja Technology Village (ATV), a licensed Free Trade Zone, over the potential revocation of the zone’s land title.
Dr. Olufemi Ogunyemi, the Managing Director of NEPZA, urged ATV operators and investors to withdraw the lawsuit filed against the FCT administration immediately to facilitate a roundtable negotiation.
Dr. Ogunyemi delivered the charge during a courtesy visit to the Minister of the Federal Capital Territory, Barrister Nyesom Wike, on Thursday in Abuja.
You will recall that the ATV operators responded to the revocation notice issued by the FCT administration with a lawsuit.
Dr. Ogunyemi stated that the continued support for the growth of the Free Trade Zones Scheme would benefit the nation’s economy and the FCT’s development, emphasizing that the FCT administration recognized the scheme’s potential to accelerate industrialisation.
Dr. Ogunyemi, also the Chief Executive Officer of NEPZA, expressed his delight at the steps taken by the FCT minister to expand the economic frontier of the FCT through the proposed Abuja City Walk (ACW) project.
Dr. Ogunyemi further explained that the Authority was preparing to assess all the 63 licensed Free Trade Zones across the country with the view to vetting their functionality and contributions to the nation’s Foreign Direct Investment and export drives.
“I have come to discuss with His Excellency, the Minister of the Federal Capital Territory on the importance of supporting the ATV to succeed while also promoting the development of the Abuja City Walk project. We must work together to achieve this for the good of our nation,” he said.
On his part, the FCT Minister reiterated his unflinching determination to work towards President Bola Ahmed Tinubu’s Renewed Hope Agenda by bringing FDI to the FCT.
“We must fulfil Mr. President’s promises regarding industrialization, trade, and investment. In this context, the FCT will collaborate with NEPZA to review the future of ATV, a zone that was sponsored and supported by the FCT administration,” Wike said.
Barrister Wike also said that efforts were underway to fast-track the industrialisation process of the territory with the construction of the Abuja City Walk.
The minister further said the Abuja City Walk project was planned to cover over 200 hectares in the Abuja Technology Village corridor along Airport Road.
According to him, the business ecosystem aimed to create a lively, mixed-use urban center with residential, commercial, retail, hospitality, medical, and institutional facilities.
He added that the ACW would turn out to be a high-definition and world-class project that would give this administration’s Renewed Hope Agenda true meaning in the North-Central Region of the country.
Barrister Wike also indicated his continued pursuit of land and property owners who failed to fulfil their obligations to the FCT in his determination to develop the territory.

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Benue IDPs block highway, demand return to ancestral homes

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Vehicular movement along the Yelwata axis of the Benue–Nasarawa highway was brought to a standstill on Wednesday as Internally Displaced Persons, IDPs, staged a protest, demanding immediate return to their ancestral homes.

The protesters, believed to be victims of persistent attacks by suspected herdsmen, blocked both lanes of the busy highway for several hours, chanting “We want to go back home”.

The protest caused disruption, leaving hundreds of motorists and passengers stranded.

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Eyewitnesses said the displaced persons, many of whom have spent years in overcrowded IDP camps, are expressing deep frustration over the government’s delay in restoring security to their communities.

“We have suffered enough. We want to return to our homes and farms,” one of the protesters told reporters at the scene.

Security personnel were reportedly deployed to monitor the situation and prevent any escalation, though tensions remained high as of press time.

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Efforts to reach the Benue State Emergency Management Agency, SEMA, and other relevant authorities for comment were unsuccessful.

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