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Nigeria Lost $1bn to Crude Oil Theft in Q1 2022

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By Derrick Bangura

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, has said Nigeria lost about N434 billion (about $1 billion) to oil theft between January and March this year.

The huge amount lost to oil theft was disclosed same day the Minister of State, Petroleum Resources, Mr. Timipre Sylva, said international oil companies (IOCs) are leaving Nigeria because the environment was becoming too volatile for their operations.

Also, Africa’s richest man and President of the Dangote Group, Alhaji Aliko Dagote has advised the federal government to introduce a single-digit tax regime to encourage investments in the downstream and midstream sectors of the Nigerian oil and gas industry.

Komolafe was speaking at the Iwereland Petroleum Communities Summit on the implementation of the Host Communities’ Development Trust in oil producing Itsekiri communities under the Petroleum Industry Act (PIA) 2021 hosted by the Olu of Warri, Ogiame Atuwatse III.

The upstream regulator disclosed that only about 1.35 million barrels or 71 per cent of the 1.9 million barrels that Nigeria produces, all things being equal, gets to the crude oil export terminals due to massive theft and pipeline vandalism.

Stressing that the challenge was hindering Nigeria from meeting her crude oil output capacity, Komolafe said out of about 141 million barrels of crude oil the country produced during the period, about nine million barrels were lost to crude oil theft.

Given the prevailing price of an average of about $116 per barrel at the international crude oil market, and an official exchange rate of N415/$, the loss sums up to about N434 billion.

“While the commission is prioritising efforts towards increasing oil and gas production and ensuring maximum economic recovery in Nigeria through the optimisation of oil and gas value chain, there have been challenges limiting the country from making the much-desired progress,” Komolafe lamented.

Nigeria has under-produced for months now and it had been unable to meet the Organisation of Petroleum Exporting Countries (OPEC) quota. It also means that the country has not able to reap the full benefits of the rising oil prices.

The NUPRC boss lamented that the loss to oil theft could have been available for development of social projects like hospitals, schools, roads, provision of electricity and potable water, to improve the quality of life of the people.

Beyond the loss in revenue, he said the sabotage of oil and gas facilities had resulted in additional remediation cost to the government as well as environmental degradation from oil spills.

In addition, he listed soil and water pollution, threat to human life, source of livelihood, wildlife and marine life (fishes) and crops as some of the impacts of the increasing theft of Nigeria’s oil.

These losses, he said, underscored the need for the government to optimise oil and gas resources development and production through the passage to law of the Petroleum Industry Bill (PIB) after more than 20 years.

Komolafe said the enactment of the PIA opened new opportunities in the country’s oil and gas industry, with extensive provisions to foster sustainable prosperity of host communities and enhance peaceful and harmonious co-existence of oil companies with their host communities.

Section 235 of the Act, he said, specifically provides for the incorporation of Host Communities Development Trust (HCDT) by the Settlors (the oil and gas companies) for the benefit of the host communities.

He noted that although the responsibility to set up HCDT and appoint the Board of Trustees was vested in the companies in consultation with the host communities, Section 247 of the Act requires the Board of Trustees (BoT) to set up a management committee to handle the general administration of the fund.

In addition, he noted that the management committee was required to in turn, set up an advisory committee to advise on activities as well as monitor and report progress of projects in the community to the body.

“The law provides that the host communities should be represented in the Board of Trustees, Management Committee and Advisory Committee, while Section 235(6) empowers the NUPRC to make regulations on the administration, guide and safeguard the utilisation of the trust fund and have the oversight responsibility for ensuring that the projects proposed by the Board of Trustees are implemented,” he noted.

According to him, the commission has concluded arrangements to ensure the regulations guiding the implementation of the host community development fund under the PIA 2021 comes into effect before the end of June 2022.

Komolafe said this would signal the commencement of a seamless implementation of the host community development fund for the benefit of oil producing communities.

He pledged that the commission would focus on working with the host communities and other stakeholders to ensure investments in the oil and gas sector are adequately protected, while ensuring the safety and sustainability of the environment.

The chief executive said the commission was committed to ensuring that the three per cent deduction required from the Settlor’s annual operating expenditure (OPEX) was not short-changed and that funds were remitted in good time.

He added: “We shall also ensure that projects and programmes proposed by the HC.

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Afe Babalola bags 2024 Best Nigerian Patriot Award

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2023: Presidential election may not reflect the will of the people - Afe Babalola

An elderstatesman and legal icon, Chief Afe Babalola, has bagged the 2024 Best Nigerian Patriot Award for his outstanding performance in humanitarian activities, provision of quality education as well as promotion of peace.

The award was given at an induction ceremony and technical workshop for the inauguration and certification of UN Ambassadors for Peace on Thursday in Abuja.

The event with the theme, “Effective Approach to Anger Management and Tolerance as Panacea for Global Peace and Sustainable Development,” was organised by the Association of UN Ambassadors for Peace (ASUNAP).

The award was organised in collaboration with The Mighty One Empowerment Foundation (TEMOEFA) to support the United Nations efforts in promoting global peace and ethnic tolerance.

The News Agency of Nigeria (NAN) reports that no fewer than 10 persons were also inducted and certified as UN Ambassadors for Peace.

A former Minister of Education, Prof. Tunde Adeniran, who received the award on behalf of Babalola, said the association had done considerable research to come up with the nomination.

“It is one thing for individuals to be playing some roles, but it’s another thing for these roles to be recognised and to be appreciated by the society.

“As a scholar and a researcher, I know that when you do a thorough research into what individuals have contributed in this particular area, one would see that it would be difficult to find someone who has contributed more than Are Afe Babalola.

“This is quite evident from his forays into different areas of national life and continental life of Africa,” he said.

Adeniran called on Nigerians to key into the humanitarian gestures carried out by Babalola.

According to him, if more Nigerians embrace peace and conflict resolution, a lot would be achieved for the country and for humanity.

“This is because there is nothing as precious as peace; without peace, you will not have a stable polity.

“Without peace, there will be no development and love among the people.

“You will not be able to advance to the level where you can say you have reached the optimum.

“The ultimate goal of society is to actualise the potential of citizens, and to be able to get the very best for people.

“I will certainly encourage and plead with Nigerians to key into this, to do their very best, starting from the local, family, community and societal level,” he said.

Also speaking, the Global Director of Interfaith for ASUNAP, Emmanuel Emeka, said the event was aimed at recognising Nigerians in order to promote peace in the society.

Emeka said the association had holistically and comprehensively taken the data of Babalola’s performance, his impact in Nigeria and beyond and found him worthy of the award.

He said that voting was conducted across the nooks and crannies of the country, adding that his name came up with the highest number of votes among nominations.

He said the newly inducted ambassadors would be involved in conflict resolution and peacemaking.

In a keynote address, the Guest Speaker, Prof. Casmiar Obialom, charged the ambassadors not to give war a chance.

He noted that the cumulative effect of not implementing a Mrshall Plan of Action to abate the incidence of impunity had been the root cause of conflicts in society.

Among Nigerians inducted into the association were retired Brig.-Gen. Nuhu Milah, retired Commandant Anthony Nwegbo, Prof. Abiodun Ajibade, Maxwell Abubu, Mrs Comfort Arinze and Dr Raphael Gajere.

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Zulum inaugurates 3 health sector boards, orders comprehensive overhaul

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Zulum resettles 424 families displaced by B’Haram in Konduga

Gov. Babagana Zulum of Borno State has inaugurated three boards in the health sector and ordered a comprehensive overhaul of the state’s healthcare system to address pressing challenges.

The boards inaugurated on Thursday at the Council Chamber of the Government House, Maiduguri, include the Borno State Hospital Management Board, the Borno State Primary Healthcare Development Board and the Kashim Ibrahim University Teaching Hospital Management Board.

Speaking during the ceremony, Zulum said that reforms are necessary to strengthen the delivery of healthcare services, particularly at the primary level.

He added that “we are currently witnessing pressure on our secondary health facilities because primary healthcare is weak.

I want you to assess all hospitals individually and identify challenges related to staffing, equipment and medical supplies so that we can address the issues holistically.”

The governor also directed the boards to work toward resolving the problem of inadequate facilities, staffing and essential medical supplies.

Zulum also inaugurated the Borno State Local Government Service Commission Board, which comprises a chairman and four permanent commissioners.

He emphasised that the reforms and inaugurated boards are part of his administration’s commitment to providing accessible and efficient healthcare to the people.

Prof. Ahmed Ahidjo, the Chairman of the Kashim Ibrahim Teaching Hospital Management Board and Alhaji Modu Alhaji Musa, the Chairman, Local Government Service Commission, expressed gratitude for the honour given to them to serve and pledged to justify the confidence reposed in them.

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Commission, journalists partner to revamp water sector in Kaduna

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The Kaduna State Water Services Regulatory Commission (KADWREC) says it is partnering media practitioners towards revamping water services in the state.

Mr Dogara Bashir, the Executive Chairman of KADWREC, disclosed this on Monday at a one-day workshop organised for media practitioners on regulation of ‘Water, Sanitation and Hygiene’ (WASH) activities held in Kaduna.

Bashir said the commission was aware of the importance of the role media practitioners played in the society.

He stated that the workshop was to provide an avenue to liaise with them as important stakeholders on water supply and sanitation services in the state.

Bashir said: “As media practitioners, we believe you are a gateway to the citizens so, the workshop would acquaint you with some of the regulations already in place so that you can in turn transmit it to the public

“The state of water services in Kaduna State is in dire need of attention and the State Water Corporation and KADWREC were established towards addressing the seeming challenges.

“The commission is mandated to ensure better service delivery and regulation of water and sanitation services in the State.

“The idea is that once the regulations are developed, we send them to the State Ministry of Justice to gazette and then we get the state government to endorse and give the go ahead to commence the implementation of the regulations

“We intend to implement them fully come January, 2025 God willing, as we have embarked on advocacy activities having gone to zones 1 and 2 where we talked to traditional rulers, security agencies and the Judiciary.”

He disclosed that a special Court has already been attached to the commission by the Chief Judge of the State for service providers who may likely violate regulations.

The chairman further said that amongst the commission’s objectives include ensuring security, reliability and quality of service in the production and delivery of water to the consumers as well making regulations to control the sinking of boreholes.

Others included; maximising access to water services by promoting and facilitating consumer connections to distribution systems in urban and rural areas.

According to Bashir, they also include ensuring that regulatory decision-making has regards to all the relevant health, safety, environmental and social legislation applying to the water sector.

Bashir further said that the commission collaborate with the relevant state and federal agencies on water policies.

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