Oil and gas
13% Oil Funds: Delta Communities besiege EFCC Office, want Okowa probed over Alleged N1.07trn Diversion
The association of oil and gas communities in Delta State on Thursday urged the Economic and Financial Crimes Commission (EFCC), Abuja, to probe former Delta Governor, Ifeanyi Okowa, over alleged diversion of N1.07 trillion from the 13 percent oil derivation fund.
The request came after they stormed the headquarters of the EFCC Abuja,
The association which is made up of representatives of Ijaw, Itsekiri, Urhobo, Isoko and Ndokwa ethnic groups, frowned at the non-full remittance of 50 percent legally prescribed allocation to Delta State Oil Producing Areas Development Commission (DESOPADEC) during Okowa’s administration (2015 to 2023).
Addressing newsmen after submitting the association’s petition to EFCC, representative of the Ijaw ethnic nationality, Chief (Comrade) Mulade Sheriff, asked the anti-graft agency not to leave any stone unturned in ensuring the alleged diverted money is fully recovered.
The petition reads in part: “We are leaders and representatives of oil and gas producing Communities of Delta State. We wish to draw the attention of the general public, particularly, the Economic and Financial Crimes Commission (EFCC), to the illegal diversion of our entitlement from the 13% derivation funds.
“We are indigenes and members of the Oil and Gas Producing Communities in Delta State and it’s on this strength we are drawing the attention of your office to the flagrant and deliberate abuse of Section 162 (2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and section 13 (1) of the Delta State Oil Producing Areas Development Commission (DESOPADEC) Law of 2006 (as amended), 2007, 2015 and 2018 established to cater for the wellbeing of the Oil and Gas Producing Communities in Delta State,
“It is imperative to state that the Delta State Oil Producing Areas Development Commission (DESOPADEC) Law 2006 (as amended), 2007, 2015 and 2018 respectively was established to expressly execute a clear mandate as stated in Section 13(1) of the DESOPADEC Law which provides thus:
“‘The commission shall receive and administer exclusively 50% of the Oil Derivation fund accruing to the Delta State Government for; a) The rehabilitation of the oil producing communities/areas of the state.’
”Other development projects as may be determined from time to time. We have observed curiously in 2022/2023 that the DESOPADEC has become moribund, and the Oil Producing Areas/Communities are nose-diving into abject poverty, which is inciting and causing youths restiveness and agitation in their various communities.
“From the records available to us upon an application to the Office of the Accountant- General of the Federation for a Certified True Copy (CTC) of the 13% oil derivation fund from the Federation Account to the Delta State Government between 2015-2022, the sum of N1,077,450,285,552.17 has been disbursed to the Delta State Government from July 2015 to December 2022, for the Rehabilitation and Development of the oil Producing Communities/Areas in Delta State.
“In fact what Okowa received is far more than N1,077,450,285,552.17 if the 13% monthly allocations of January 2023 to May 2023 are added. See attached CTC.”
The association also expressed serious concern over the alleged brazen manner funds meant for oil and gas producing communities were channelled to other purposes in violation of DESOPADEC law.
”By section 13(1) of the DESOPADEC Law 2006 (as amended) 2007, 2015 and 2018, the commission is legally and lawfully entitled to 50% from the 13% oil derivation fund from the Federation Account which is calculated at N538,725,142,776.85 (Five Hundred and Thirty-Eight Billion, Seven Hundred and Twenty-Five Million, One Hundred and Forty-Two Thousand, Seven Hundred and Seventy-Six Naira, Eighty-five Kobo) from the Delta State Government.
“That from the information obtained, it is obvious that the Delta Government grossly underfunded the Delta State Oil Producing Areas Development Commission as it was in the habit of consistently and deliberately disbursing less than the sum of N20,000,000,000 (Twenty Billion Naira) only annually for the past Eight Years….
“Sir, unfortunately all efforts by our communities’ leaders and other well-meaning personalities in Delta State to have the Delta State Government to obey, observe and comply with the DESOPADEC law and render account for the said misappropriated fund have proved abortive hence this petition.
“It is very nauseating that despite the stupendous Billions of Naira being paid to the Delta State Government from the 13% oil derivation fund from the Federation Account, The Oil Producing Areas/Communities continue to wallow in abject poverty with no commensurate social amenities and infrastructures in place.
“This gross and reckless misappropriation of the 13% oil derivation fund meant for the Oil Producing Communities largely account for the incessant restiveness and agitations in the Niger Delta Region.
“We are strongly appealing to the Commission saddled with the responsibility to probe and Investigate the immediate-past Governor, Senator (Dr) Ifeanyi Arthur Okowa, to recover and return our money of the 50% of the 13% Oil derivation fund from the Federation Account to the State Government and render necessary Account for the said illegally and unlawfully misappropriated balance to DESOPADEC coffers, to enable them develop our communities, ” the petition read.
Recall that the petition which was received by EFCC was signed by Mulade Sheriff (Ijaw Ethnic Nationality), Sir Mathew Itsekure (Itsekiri Ethnic Nationality), Mrs Patience Ego Afujue (Ndokwa Ethnic Nationality), Hon Mark Ikpuri, (Urhobo Ethnic Nationality) and Chief John Etenero (Isoko Ethnic Nationality).
Oil and gas
Nigeria’s Oil Earnings Projected to Hit N6.9 Trillion Monthly with Production Increase
The Federal Government may see a significant rise in revenue, up to N6.99 trillion monthly, following an increase in oil production to 1.8 million barrels per day (bpd), according to the Nigerian National Petroleum Company Limited (NNPC Ltd.).
In collaboration with industry stakeholders, the NNPC has intensified efforts to boost crude oil output to meet the government’s production targets.
This increase is coming as the average price of Brent crude remained stable at around $81 per barrel, creating favorable conditions for substantial earnings. Calculations based on current production levels and exchange rates show that producing 1.8 million bpd at $81 per barrel could yield approximately $4.37 billion in monthly revenue, which translates to N6.99 trillion at an exchange rate of N1,600 per dollar.
NNPC’s Group Chief Executive Officer, Mele Kyari, announced the milestone during a recent Oil Production War Room meeting at NNPC headquarters in Abuja, attended by top officials, including Petroleum Resources Minister Heineken Lokpobiri. Kyari emphasized that the increased production aligns with the Federal Government’s 2024 budget projections and long-term economic goals.
Chief Production War Room Officer Lawal Musa highlighted that the collaboration between the NNPC, security agencies, and local communities had been crucial to achieving the 1.8 million bpd level. The goal is now set to reach 2 million bpd by the end of the year, a target the NNPC is optimistic about achieving given the current momentum and security improvements in oil-producing regions.
Minister Lokpobiri commended the NNPC for achieving this production feat, describing it as a “remarkable milestone.” He expressed confidence that NNPC Ltd could not only meet but exceed the two million bpd target, further enhancing Nigeria’s revenue prospects.
The Chairman of the NNPC Board, Chief Pius Akinyelure, reinforced the board’s commitment to furthering this progress, urging the management and staff to pursue even greater achievements in the oil and gas sector. Dr. Paul Bebenimibo, spokesperson for Tantita Security Services Nigeria Limited, one of the private security agencies involved, confirmed the peaceful and secure environment in the Niger Delta as key to the production surge, assuring that further measures are in place to sustain and even increase output.
The drive to reach two million bpd underscores NNPC’s dedication to stabilizing and expanding oil production, with significant implications for Nigeria’s fiscal health and overall economic stability.
Oil and gas
Governor Ododo Seeks Federal Collaboration to Boost Oil Exploration in Kogi State
Kogi State Governor Ahmed Usman Ododo has called for enhanced cooperation between the state and the federal government to accelerate investment in oil exploration within Kogi State.
Governor Ododo made this appeal during a visit to Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), in Abuja on Thursday.
Special Adviser on Media to the Governor, Ismaila Isah quoted him to have reiterated his administration’s commitment to creating a favorable environment for investors, emphasizing the state’s readiness to work closely with the federal government.
He underscored the importance of fast-tracking oil exploration in Kogi in line with President Bola Ahmed Tinubu’s vision to expand exploration in Nigeria’s frontier basins.
Responding to the governor’s call, Senator Lokpobiri reaffirmed Kogi’s status as an oil-producing state and pledged the federal government’s commitment to attract investment to tap into the state’s vast oil resources. He highlighted the mandate of the Petroleum Industry Act (PIA), which tasks the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) with exploring frontier basins.
He assured that the government is ready to deploy funds for further exploration in Kogi.
Senator Lokpobiri also commended Governor Ododo for his leadership and strides in governance, noting that these efforts will be key in attracting and sustaining investment in the state.
Kogi State became the first oil-producing state in Northern Nigeria in 2022 following the federal government’s confirmation of oil discoveries in commercial quantities.
Oil and gas
We will soon unravel shady Issues in the Petroleum Sector, Senator Kawu vows
As the newly appointed chairman of the Senate Committee on Petroleum Downstream, Senator Sumaila Kawu has promised to tackle the persistent lack of transparency in Nigeria’s petroleum industry, which he likens to a “cabal.”
Kawu was appointed as chairman of the Committee following the demise of Senator Ifeanyi Uba who represented Anambra South who held sway as the chairman of the committee
Speaking to newsmen on Wednesday at the National Assembly, Kawu detailed his plans to shed light on the sector’s operations and engage the public in meaningful dialogue.
With rising fuel prices impacting Nigerians daily, Kawu emphasized the urgent need for clarity and accountability within the industry. “Our first step will be to study the current situation and gather information from relevant agencies,” he stated.
He highlighted the importance of holding public hearings, which will allow citizens to voice their concerns and experiences directly.
Kawu’s committee will focus specifically on reviewing contracts awarded by previous administrations and overseeing the current contracts for refinery repairs.
By scrutinizing the agreements, Kawu targets to expose any irregularities and ensure that funds are being used effectively.
He remarked, “We need to ask the hard questions and hold a public hearing to allow Nigerians to express their views.”
In his commitment to transparency, Kawu detailed his plans to engage with stakeholders, including the Nigerian National Petroleum Corporation (NNPC) and refinery operators, to understand the barriers to efficient production and accountability.
According to him, the recent visits to the refineries have given course fir concerns about unmet production timelines, prompting a call for a more rigorous evaluation of the situation.
Kawu’s focus on transparency is not only about identifying issues but also about fostering a culture of openness within the sector.
He promise to use the committee to dismantle the “cabal-like” operations that have characterized the industry, ensuring that decision-making processes are accessible and understandable to the public.
Senator Kawu expressed determination to implement measures that will stabilize the petroleum sector and address the legitimate concerns of Nigerians.
By prioritizing transparency and public engagement, he expressed the hope to restore confidence in the management of Nigeria’s petroleum resources.
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