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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.

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Editorial

Rising human rights violations in Nigeria: Urgent calls for Govt action

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The latest findings unveiled by the National Human Rights Commission (NHRC) during its monthly dashboard meeting paint a concerning picture of human rights violations in Nigeria, specifically in March 2024.

The alarming figure of 1,580 recorded violations across the nation’s six geopolitical zones is a stark reminder of the challenges faced in upholding fundamental rights.

Of particular concern is the North Central region, which emerged as the hotspot for violations, reporting 468 cases. This revelation underscores the urgent need for targeted interventions and heightened awareness in this area to curb such abuses.

Equally troubling is the revelation that State Actors, including the police, military, and Department of State Service (DSS), were implicated in 94 violations. Among these were distressing incidents such as the killings of security personnel in Delta State, highlighting the gravity of the situation.

The breakdown provided by the NHRC reveals disturbing trends, with 542 cases involving violations of children’s rights and 471 cases of domestic violence, signaling a worrying trend that demands immediate attention and action.

Furthermore, the involvement of non-state and private actors in 32 and 36 violations respectively underscores the need for a comprehensive approach to address human rights abuses across all sectors of society.

It is also disheartening to note that three cases of rights violations were recorded against disabled individuals, emphasising the importance of ensuring the protection and inclusion of all members of society.

Beyond these specific categories, the NHRC’s report also sheds light on violations impacting social, economic, and cultural rights, with 157 cases identified. Additionally, the 24 referred cases highlight the complexities involved in addressing such violations and the importance of collaboration among relevant stakeholders.

In light of these findings, it is imperative that concerted efforts are made to address the root causes of human rights violations and to implement measures aimed at safeguarding the rights and dignity of all individuals in Nigeria. Only through collective action can meaningful progress be achieved in building a society. In a solemn address at the heart of Nigeria’s capital, Abuja, the Senior Human Rights Adviser, Hilary Ogbonna, delivered a sobering message. He revealed that a grim tally of 499 lives were lost to violence and abduction, with an additional 71 souls stripped of their fundamental right to life during the reviewed period.

Ogbonna’s words echoed with the chilling reality of 301 schoolchildren vanishing into the night’s grip in Kaduna State alone. Meanwhile, the silent screams of 40 souls extinguished in Benue State, and four lives cruelly cut short in Nasarawa State during the distribution of much-needed palliatives, reverberated through the nation’s consciousness.

These violations, ranging from killings to kidnappings, domestic violence to abductions, and the vulnerable children’s rights trampled upon, cast a shadow over the fabric of society.

As the ink of these harrowing accounts dries on the pages of our collective history, our hearts are heavy with dismay. The sanctity of life, enshrined in the Universal Declaration of Human Rights, is under siege in myriad forms, exposing the fragility of peace within our borders.

The sobering revelation that Nigeria languishes among the least peaceful nations on the Global Peace Index further punctuates the urgency of the matter. Despite over two decades of democratic governance and the noble ideals of the UDHR, our nation grapples with the weight of human rights abuses, laid bare for the world to witness.

At its core, the Universal Declaration of Human Rights beckons humanity to embrace freedom from oppression, active participation in decision-making, and the assurance of basic necessities. Yet, these foundational principles remain elusive for many, casting a long shadow over the promise of a just society.

As we confront these challenges head-on, let us not forget the indomitable spirit of resilience that resides within our people.

Together, let us forge a path towards a future where every life is cherished, and every right is upheld with unwavering resolve. 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.

There is no gainsaying it that insecurity has continued to manifest in virtually all parts of the country in the form of banditry, kidnapping, terrorism and communal conflicts, resulting in the loss of lives and property.

We are not unaware that violations of rights that guarantee personal freedom are further worsened by the apparent lack of remedies for the victims, whether in the form of compensation or access to justice for the wrong done. With increasing cases of human rights abuses, citizens’ trust in the Nigerian system has continued to dwindle, making it difficult for victims to come forward and seek justice.

The Nigerian Constitution guarantees the right to personal liberty which implies that human rights are the fundamental features of any true democratic setting. While we recognise the efforts made by nations towards safeguarding these freedoms, it is equally essential to acknowledge the persistent obstacles that hinder their full realisation.

Some of these obstacles may arise from legislative constraints, societal prejudices, or systemic shortcomings. Whatever is the case, justice demands that collective attention and concerted efforts be made to dismantle them.

We feel compelled to highlight the multitude of obstacles facing our nation, ranging from insecurity and separatist tensions to egregious acts such as torture, illegal detention, extortion, and extrajudicial killings perpetrated by law enforcement agencies.

Additionally, the pervasive challenges of limited access to justice, manipulation of the court system, and the alarming disregard for court orders compound the hardships faced by citizens. Coupled with the escalating cost of living and deteriorating living conditions, these factors undermine the ability of individuals to lead secure and fulfilling lives.

It is crucial to emphasise the pivotal role that safeguarding human rights plays in nurturing vibrant democracies, fostering social cohesion, and celebrating diversity.

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Editorial

EFCC and the war against Naira abuse

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The war against Naira abuse by the Economic and Financial Crime commission (EFCC) seems selective but it is a good omen and stakeholders must rise to support the anti-corruption agency in its task. A few weeks ago two popular celebrities Bobrisky and the Chief Priest of Cubana were brought to book for spraying money in public events against the laws regarding it.

The six months sentence slammed on controversial cross-dresser, Idris Okuneye popularly known as Bobrisky, and the ongoing prosecution of socialite, Pascal Okechukwu, also known as Obi Cubana, clearly demonstrates the seriousness with which the Economic and Financial Crimes Commission (EFCC) is willing to prosecute the war on naira abuse.

A Federal High Court sentenced Bobrisky to six months jail without an option of fine. Also, a Federal High Court sitting in Lagos granted Obi Cubana N10 million bail after he pleaded not guilty to charges of naira abuse. EFCC’s decision to begin the war with these socialites is plausible and that will send a strong signal to their ilk.

Arguably, the naira is one of the most abused currencies in the world as it is very common to see Nigerians, especially the well-to-do, spraying this legal tender with reckless abandon at social events. This is a clear contravention of the Central Bank of Nigeria (CBN’s) Act which frowns at the abuse of the country’s legal tender.

Section 21(3) of the Central Bank of Nigeria Act 2007 (as amended) explicitly provides for penalties for those caught abusing the naira. Specifically, the law stipulates that “spraying of, dancing or matching on the Naira or any note issued by the Bank during social occasions or otherwise howsoever shall constitute an abuse and defacing of the Naira or such note and shall be punishable under the law by fines or imprisonment or both.”

The law also prohibits hawking of the country’s legal tender when it provides in Section 21(4) that, “It shall also be an offence punishable under Sub-section (1) of this section for any person to hawk, sell or otherwise trade in the Naira notes, coins or any other note issued by the Bank.”

However, in spite of this copious provisions, Nigerians still indulge in outright abuse of the naira by spraying the banknotes at events, tearing and writing on the banknotes, and selling the banknotes among other clear instances of abuse including selling and mutilation.

As should be expected, these practices have continued to make a mess of the CBNs Clean Notes Policy which was implemented with the aim of enhancing the visual appeal and durability of the banknotes in circulation.

From 2007 when the Act was enacted to date, there have been no deliberate efforts to punish those who indulge in sheer abuse of the naira in contravention of the law. As a matter of fact, until recently, most Nigerians were unaware of the law.

It is clear that the respective authorities have finally woken from their slumber and are set to go after unpatriotic Nigerians who have turned naira abuse into a hobby. Beginning with the so-called socialites who are the worst culprits as far as abusing the naira is concerned, the government appears bent on ending this menace.

We applaud the Economic and Financial Crimes Commission (EFCC) and other relevant agencies of the government for this all-out war and urge them to sustain the tempo. Nigerians who have made it a habit to disrespect the naira by either spraying it with reckless abandon at social functions such as birthdays, weddings and funerals, or selling it at the roadside, must be made to face the full wrath of the law.

While the EFCC’s prosecution of Bobrisky is commendable, the agency must ensure that it sees to its logical end the ongoing prosecution of Obi Cubana. For this renewed war to make a meaningful impact, there must be no sacred cow. All those guilty of this abuse, regardless of their social standing, should be brought to book.

The EFCC and other agencies must resist the temptation to indulge in preferential treatment especially as one class of persons who are guilty of naira abuse is the political class. The political elites see spraying the naira at social gatherings as a status symbol. Even though it is a long held one, the culture of spraying money during celebrations is a national embarrassment that must be confronted using all the available legal instruments. There has to be an end to this sheer act of flamboyance and extravagance which is counterproductive.

In addition, while we commend the EFCC for its effort to protect the integrity of the national currency, we are persuaded to appeal to the government to apply the same zeal in ensuring that Nigerians, so hard pressed, have the Naira in their pockets in the first place.

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Editorial

Addressing the socioeconomic factors contributing to suicide rates in Nigeria

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The tragic incident that unfolded in the Magboro area of Ogun State, where Victoria Idowu, a 49-year-old woman, took her own life by hanging herself on a ceiling fan, is a poignant reminder of the deep-rooted issues surrounding mental health in our society.

The discovery of her lifeless body by her son upon his return from a church service emphasises the devastating impact of such actions on loved ones and communities at large.

This unfortunate event, coupled with the recent case of Deputy Commissioner of Police Gbolaha Oyedemi, who also tragically ended his own life, sends shockwaves across the nation. Oyedemi’s untimely demise, particularly given his position within the Force Criminal and Investigation Department in Lagos State, raises questions about the unseen burdens individuals may carry, even in seemingly successful and accomplished lives.

These incidents compel us to confront the pressing need for enhanced mental health awareness, support systems, and destigmatisation efforts within our society.

While the reasons behind such tragic decisions may remain elusive, it is imperative that we foster an environment where individuals feel empowered to seek help without fear of judgment or ostracisation.

As a nation, we must prioritise mental health initiatives, invest in accessible counseling services, and promote open dialogue about mental well-being in homes, workplaces, and communities. Only through collective action and compassion can we hope to prevent further loss and support those struggling with mental health challenges.

The intertwined tales of Victoria Idowu and Deputy Commissioner Gbolaha Oyedemi paint a harrowing portrait of despair echoing across Nigeria’s landscape.

Idowu’s final act, discovered by her son amidst the echoes of church hymns, and Oyedemi’s perplexing departure, once the trusted aide to a former governor, unveil a somber truth: suicide’s haunting grip knows no bounds.

Their stories, etched with the weight of societal expectations and personal demons, illuminate a troubling trend veiling Nigeria in sorrow.

From the seasoned to the youthful, lives are lost to the silent whispers of despair, leaving behind unanswered questions and shattered hearts.

In the shadows of these tragedies, Nigeria grapples with a growing epidemic, where the specter of suicide looms larger with each passing day. The reasons, as diverse as the nation itself, intertwine threads of societal strain, economic woes, mental anguish, and a dearth of solace in the face of adversity.

Yet, amid this darkness, one truth shines unwaveringly: suicide, however tempting, is not an adequate solution. It is a plea for help lost in the silence, a cry for understanding drowned in the noise. In the face of despair, let us extend hands of compassion, build bridges of support, and shatter the silence with voices of hope. For in unity, in empathy, lies the beacon of light guiding us through the darkest of nights.

In 2019, the tragic loss of a university student in Lagos to suicide, amid the weight of academic pressures and depression, stirred conversations about mental health awareness within educational institutions.

The following year, the untimely demise of a renowned Nigerian musician, who was discovered dead by suicide in his Lagos home, cast a spotlight on the silent struggles faced by celebrities and public figures battling mental health issues.

Similarly, in 2020, the distressing case of a young woman in Abuja, who took her own life after sharing troubling messages on social media, underscored the crucial need for accessible support systems for individuals grappling with mental health crises.

Then, in 2021, the heartbreaking loss of a teenager in Kano, driven to suicide by the torment of bullying and harassment at school, sparked urgent calls for concerted action to address both bullying and mental health concerns among students.

These poignant examples serve as reminders of the pressing imperative for heightened awareness, robust support networks, and adequate resources to combat mental health challenges and stem the tide of suicide across Nigeria.

Nigeria faces a sobering reality according to the World Health Organization, grappling with one of Africa’s highest suicide rates, with a notable portion of victims being young people. Worse, the ratio of psychiatrists to population is 1:800,000.

However, there’s a beacon of hope: fostering mental health awareness and education emerges as one of the most potent tools in combating this crisis. Despite prevailing stigmas branding mental health issues as taboo or indicative of weakness, dispelling these misconceptions can pave the way for a more compassionate and supportive society. By shedding light on mental health challenges, we can dismantle barriers to seeking help and foster understanding for those battling depression and suicidal thoughts.

Moreover, addressing the recurring tide of suicides demands an overhaul of mental health services accessibility nationwide. Presently, many Nigerians, particularly in rural areas, face insurmountable hurdles in accessing vital care and support. By bridging this gap and ensuring equitable access to mental health services, we can extend a lifeline to those in dire need, fostering a nation where every individual’s well-being is prioritized and safeguarded.

Governments, healthcare providers, and non-governmental organisations could work together to expand mental health services, train healthcare professionals, and integrate mental health into primary healthcare systems.

To effectively combat the pervasive issue of suicide in Nigeria, collaboration between governments, healthcare providers, and non-governmental organisations is paramount. Together, they can expand mental health services, equip healthcare professionals with necessary training, and integrate mental health into primary healthcare systems.

Establishing robust support networks is crucial for individuals grappling with mental health challenges and suicidal ideation. This entails offering accessible avenues for seeking help, such as helplines, support groups, and online forums. Education initiatives should empower friends, family, and communities to recognize signs of depression and suicidal behavior, fostering environments of support and understanding.

Furthermore, advocating self-care practices like exercise, mindfulness, and relaxation techniques equips individuals with tools to manage their mental well-being and mitigate the risk of suicidal tendencies.

Addressing the persistent scourge of suicide demands a holistic approach that delves into its root causes while providing effective interventions and support for those in crisis. Through concerted efforts to promote mental health awareness, improve access to services, foster support networks, and empower individuals, Nigeria can forge a path towards suicide prevention and cultivate a healthier society for all.

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