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Editorial

Declining oil production output: Diversifying sectoral structures to explore benefits of gas value chain

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Dynamics in global oil prices recently have brought up realities of the need to maximise the benefits with an elaborate point of view in response to the vicissitudes of the market. Recent realities have seen crude oil prices hovering above $100 per barrel.

For Nigeria, however, certain realities have shaped the development. May 29,  the price of Nigeria’s Bonny Light, rose as high as $141.4 per barrel, in the global market, apparently the highest in recent times. The reality had showed $79.4 per barrel increase over Nigeria’s $62 per barrel budget 2022 benchmark, which was also based on 1.8 barrels per day, including condensate. While oil prices have scaled up recently beyond expected, there have been constraints posed to oil production in the Country.

Last week, Wednesday, August 03, 2022, the Organisation of Petroleum Exporting Countries and its allies (OPEC+) again increased Nigeria’s crude oil output quota to 1.830 million barrels per day, mb/d, taking effect in September 2022. The August, 2022 quota is 1.826 mb/d. The decision, taken at the 31st OPEC and non-OPEC Ministerial Meeting, held via video conference, was targeted at achieving stability in the global market, as quota for several other oil producing countries were also reviewed upwards. “The Meeting noted the dynamic and rapidly evolving oil market fundamentals, necessitating continuous assessment of market conditions,” OPEC+ had stated.

A perusal of the September 2022 required production would reveal that amongst African producers, Nigeria’s 1.830 mb/d quota was the highest on the continent. The increased quota however, bears reflections of certain consideration, particularly as questions relating to whether the Country would  meet up the daily production output are such demanding thoughtful assessment. Such doubt has higher degree of negativity as oil production currently in the Country stands at about 1.4 million barrel per day (mb/d), including condensate, a condition associated with oil theft, pipeline vandalism, and illegal refining in the Niger Delta.  Nigeria’s August, 2022, oil production quota was increased by 1.5 per cent to 1.826 million barrels per day from 1.799 mbpd in July, 2022. The Country had struggled meeting up, but wasn’t able to, till present.

Moreover, as Nigeria suffer deficits in production, the need for increased diversification and investment in the gas sector in the spirit of the Energy transition, currently sweeping across the globe, is pertinent. To further stay at an advantage of exploring benefits amidst oil market instability, leveraging on gas as the pathway to clean energy, has been identified. However, walking the path demands creating a lot of opportunities for local operators to leverage. Speaking in June at the 2nd West Africa LPG Expo and NLPGA Summit in Lagos, former president Olusegun Obasanjo, who commended the Nigeria LNG Limited for dedicating 100 per cent of its output to the domestic market, had called for increased production, massive infrastructural development and removal of the value added tax (VAT) currently affecting demand. Reflecting on the government policies, he had said, “The government under my leadership saw the Nigerian Gas Master Plan as a major interventionist concept to move the gas sector from its essentially dormant status in 2006 to a market-based system with willing sellers and willing buyers, realising the full potential of the sector for the benefit of all Nigerians.”

The President, Nigeria Liquefied Petroleum Gas Association (NLPGA), Mr. Nuhu Yakubu had said, “This year is, however, more profoundly important for players in the LPG industry as it marks the 15th year of the commencement of the Nigeria LNG (NLNG’s) intervention in domestic Liquefied Petroleum Gas (LPG) supply, otherwise known as cooking gas, with its Domestic LPG (DLPG) Scheme.  This scheme has made the most significant impact on domestic LPG supply. It has catalyzed reduction in household energy poverty with reduction in the use of dirty fuel sources for cooking. It has also stimulated growth in the industry, through its multiplier effect, positive impact on forward and backward linkage businesses with massive infrastructure build out that is currently experienced across the value chain today.

“To ensure a steady supply of products, deliveries are made with NLNG’s dedicated vessel to all NLNG’s approved domestic receiving terminals in Nigeria. The company has recently announced that it is dedicating 100 per cent of its LPG production to domestic market, as well as commenced deliveries of propane into the domestic market since 2021. With huge LPG production and supply prospects from its recent commencement of the LNG Train 7 project, clearly NLNG’s LPG supply intervention remains Nigeria’s most significant domestic energy policy.”

Leveraging on this spectrum of the oil and gas value chain is essential for comparative advantage – a demand the government must strategically work on with intelligent policies to meet the necessities. Stakeholders collaboration among regulators, partners, and industry players to grow the domestic LPG market and bring cleaner energy to Nigerians is pertinent. Management of resources accruing from same is also pertinent. It is therefore essential that the government develop a system of working structures to create the pathway for diversification and investment in the gas value chain, such that would cover up gaps which are presently reflecting deficits in the accruals from the oil and gas sector. Such measures are pertinent, as the country is largely constrained by revenue to execute profound capital projects. Since, no ready substitute can formidably substitute oil and gas as Nigeria’s economic mainstay for the time being and in any close perception, creating structures in the gas value chain to blend existing ones to maximise the tangible potentials of the oil and sector is pertinent.

Editorial

Nigeria’s Human Rights conundrum: A call to urgent action

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Nigeria’s human rights landscape has long been a cause for concern, but the latest revelation by the National Human Rights Commission (NHRC) paints a particularly dire picture.

The shocking disclosure that 1,580 human rights violations occurred in March 2024 alone is a stark reminder of the precarious state of human rights in our country.

Even more disturbing is the breakdown of these violations, which reveals a disproportionate impact on the North Central region and a troubling involvement of state actors, including the police, military, and DSS.

This crisis of accountability and protection demands urgent attention and action from all stakeholders, and it is our hope that this editorial will contribute to a much-needed national conversation on this critical issue

The most vulnerable members of our society, children, were not spared, with 542 cases of rights violations recorded. Domestic violence, which is becoming increasingly rampant, accounted for 471 cases.

Non-state and private actors were also responsible for 32 and 36 violations, respectively, while three cases of rights violations were recorded against people with disabilities.

The NHRC’s report is a wake-up call to all stakeholders, including the government, civil society organizations, and individuals, to take immediate action to address these violations.

The fact that social, economic, and cultural rights accounted for 157 violations, and referred cases stood at 24, highlights the need for a comprehensive approach to addressing human rights issues in Nigeria.

It exposed 499 killings and kidnappings, 71 violations of the right to life, and 301 school children abducted in Kaduna State alone.

The commission’s Senior Human Rights Adviser, Hilary Ogbonna, revealed these shocking statistics, which include 40 people killed in Benue State and four deaths in Nasarawa State during palliative distribution.

The report highlights a broader pattern of human rights violations, including domestic violence, abductions, and children’s rights abuses. It’s alarming that the right to life is being violated in various ways, and human rights violations are escalating.

This is despite Nigeria’s adoption of the Universal Declaration of Human Rights and over two decades of democratic governance.

The Global Peace Index Report’s ranking of Nigeria as one of the least peaceful countries in the world (144th out of 163) is a damning indictment.

The report emphasises the gravity of human rights abuses in Nigeria, where basic rights like freedom from oppression, participation in decision-making, and access to fundamental needs like food, work, medical care, and education are frequently denied.

However, the Universal Declaration of Human Rights, adopted in 1948, enshrines fundamental rights like freedom from oppression, participation, and access to basic needs.

While many countries, including Nigeria, have incorporated these rights into their constitutions, the reality on the ground is starkly different.

In Nigeria and Africa, people face physical and mental torture, police brutality, domestic violence, kidnappings, and detention without trial.

Since its declaration, it has become fashionable for most countries of the world, Nigeria inclusive, to entrench the catalogue of rights in their constitutions.

But, regrettably, in Nigeria, and indeed Africa, people are usually subjected to physical and mental torture ranging from cases of accidental discharge and other forms of police brutality, domestic violence, kidnappings as well as detention without trial.

Also, insecurity, in its various forms, has become a pervasive issue in Nigeria, manifesting as banditry, kidnapping, terrorism, and communal conflicts. This has resulted in the loss of lives and property, highlighting the government and security forces’ failure to fulfill their social contract with citizens. The lack of remedies for victims, including compensation and access to justice, has further worsened the situation.

The Nigerian Constitution guarantees the right to personal liberty, a fundamental feature of any democratic setting.

However, persistent obstacles, including legislative constraints, societal prejudices, and systemic shortcomings, hinder the full realization of human rights. It is crucial to acknowledge these challenges and work collectively to dismantle them.

The myriad of challenges facing Nigerians includes insecurity, separatist agitations, torture, illegal detention, extortion, and extra-judicial killings by law enforcement agencies.

Limited access to justice, abuse of court process, and disregard for court orders, as well as the increased cost of living and deteriorating living conditions, further hamper citizens’ ability to lead safe and meaningful lives.

Human rights protection plays a critical role in fostering vibrant democracies, promoting social cohesion and diversity, and cultivating a conducive and peaceful living environment.

To address these challenges, we recommend strengthening the independence of the judiciary, press freedom, democratic rules and principles, human rights education, and public vigilance. This will help curtail human rights abuses and promote good governance in Nigeria.

We urge the government, civil society organisations, and individuals to work together to address these pressing issues and ensure that the rights of all Nigerians are respected, protected, and fulfilled.

We also call on civil society organisations and individuals to continue to advocate for human rights and hold those in power accountable for their actions.

We also urge the government to take immediate action to address these violations, investigate and prosecute perpetrators, and implement policies to prevent future abuses. We also call on civil society organisations and individuals to continue advocating for human rights and holding those in power accountable.

The time for change is now. We must work together to ensure that the rights of all Nigerians are respected, protected, and fulfilled.

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Editorial

Endless turnaround maintenance of Port Harcourt Refinery

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Since 2021 when the turnaround maintenance of the Port Harcourt Refinery started, there have been heaps of failed promises of the production commencement date.

First, it was former Minister of State for Petroleum, Timipre Sylva promising severally of commencement of productions of Port Harcourt Refinery, but these promises never came to limelight till he resigned for political calling.

Next was the Managing Director of Port Harcourt Refinery, Ahmed Dikko who at a time said the turnaround maintenance was 98 percent completed and would have commenced operations in December 2023. That promise again was unfulfilled.

The Group Managing Director of Nigerian National Petroleum Company Limited (NNPC Ltd), Mele Kyari equally said that Port Harcourt Refinery would start production in two weeks time, that elapsed in April, 2024. April has come and gone.

The Head, Corporate Communications of NNPC Ltd, Olufemi Soneye was also quoted to have said that the reason for non-commencement of operations of the Port Harcourt Refinery was regulatory and compliance tests. As it seems, all efforts to restart the operations of the Port Harcourt Refinery and by extension other refineries, have been futile.

Political watchers have adduced poor management, corruption, sabotage and lack of political will as some of the problems confronting smooth operations of our refineries. They particularly accused those benefitting from importation of petroleum products as being responsible for the non-functionality of the four refineries in Nigeria.

Political will, of course, plays a major role in shaping directions the policies go. Political will in this instance translates to good leadership, and in this case, the buck stops at the table of the Federal Government, particularly the President, who doubles as the Minister of Petroleum.

Petroleum being the mainstay of the country’s economy should be given all the attention it deserves. The reason being that virtually everything in the country is tied to the petroleum products situation.

Since the announcement of the removal of fuel subsidy on May 29th, 2023 by President Tinubu on assumption of office, life has not been the same in Nigeria. Cost of living has  risen astronomically, consequent upon the hike in price of petroleum products.

In the midst of plenty, courtesy of the abundant human and material resources, Nigeria is still often described as the poverty capital of the world. What an irony! Turnaround maintenance of the refineries subsists without end. Every hope is now placed on the Dangote Refinery, a private outfit. While the diesel price slash is commendable, how on earth will a single private entity take the whole country to Eldorado?

We cannot regulate what we do not produce, this is a natural principle that cannot be contravened. We only pray that Port Harcourt Refinery comes on stream someday.

We look forward to that time. Our position is that Government agencies saddled with the responsibility of providing fuel and other petroleum products to Nigeria must do their work and justify their pay.

This onerous task is mandatory and statutory to them and shall amount to disservice if they fail. Our prayer is not for them to fail, but that they fulfil their vows and make the country great for the overall interest of all.

Tecnimont, the Italian company undertaking the $1.5 billion rehabilitation project of the Port Harcourt Refinery has through its Local Managing Director, Gian Fabio Del Cioppo pledged to fulfil the terms of contract, so as far as we are concerned, there is nothing stopping the country from achieving the target of the turnaround maintenance project.

The only clog would of course be lack of political will, which we know could be cultivated. So let all hands be put on deck to achieve results.

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Editorial

Gas explosions: Nigeria and its avoidable tragedies 

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Nigerians die daily for reasons  so avoidable it would make  a 19th century peasant weep.  The deaths are often a product of systemic wickedness, nonchalance, and greed. Too often have gas explosions claimed the lives of Nigerians untimely. Whether it is the leaders refusing to enforce the checks and balances for personal gain, or citizens selling defective gas cylinders, it all balls down to a collective aversion for kindness.

The internet is rife with news of this tragedy occurring in a Sisyphean cycle. Jolted by the cries of the populace, the leaders promise reprieve, release press statements and in the weeks that follow, little to nothing happens. “One must imagine Sisyphus happy,” Camus wrote. Unfortunately, our Nigerian dead imagine nothing.

While people relaxed from their labour, were preparing for the Workers Day celebrations, nine people including a pregnant woman were injured in Tuesday’s gas cylinder explosion at Alaba Lane, Alayabiagba Community of Ajegunle-Apapa, Lagos.

“The fire explosion started around 1:30 pm and immediately, two tricycles were burnt, school children coming back from school were affected. A particular young man was seriously affected as his body was peeling off, but rushed to the Gbagada General Hospital,” according to reports.

The usual suspect is, of course, negligence, as the Director of Lagos State Fire and Rescue Service, Margaret Adeseye, puts it: “preliminary investigation revealed that several various gas cylinders traded within the neighbourhood have one triggered from a susceptible leakage leading to the snapping of a high tension cable and resultant Fire.”

The explosion razed down “four commercial tricycles, six lock-up shops, a bungalow part of properties, while salvaging adjoining structures including a major fuel service station.” Children were hurt, the future of the nation plunged, as usual into avoidable misfortune.

The way out is through. The press releases are wonderful PR statements but they do not bring back the dead, as was the case in Ogun State recently where a truck explosion cost the nation another life. The leaders must enforce the checks and balances put in place. The law is no decoration.

We mustn’t wait until a politician’s family member is involved in a tragic gas accident before “banning” (as is the default response of the Nigerian leadership). The leaders must realise that such misfortunes are contagious, and money is hardly a bulwark against 3rd degree burns in a nation where all its doctors are fleeing.

Renewed Hope requires renewed action. This is all that Nigerians ask of its leaders. All agencies responsible for monitoring trucks, cylinders need to work together to defeat this peculiar evil. Like COVID-19, gas explosions are no respecter of persons.

Of course, citizens too must do their part and resist the allure of profit over the death of others. A society without empathy is headed for a dystopia. It will not matter the price of petrol or electricity tariff, if all that matters is the pursuit of super profit at the expense of one’s neighbour. We owe it to the dead to live fully and graciously. To escape, as we should, avoidable tragedies.

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