Editorial
Tackling ecological threats of oil exploration against human habitat
Oil exploration in Nigeria has been a deep seated subject which has taken dimensionally rooted courses in the Country. While the discovery of oil has come with its benefits, it is inarguable that the exploration and development of sectoral activities around it has without doubt come with its disadvantages. Although, the era of oil boom had brought seasons of plenty, the discovery of oil and the exploration of same had certainly brought to play the neglect of other sectors in Country. It is indisputable that the neglect of other sectors following the preponderating concentration on oil and gas, particularly the overarching reliance of the Government on the proceeds of oil as the major source of revenue, has over the years left gaps of which the Country is now suffering the brunt of economic deficiencies.
However, while the neglect has brought strains on the economy with revenue shortfalls and currency devaluation, posing acute socio-economic constraints, the adverse effects of the exploration of oil in the Country transcend socio-economic impacts. Another potent adverse effect of the adventures has been the environmental impacts of exploration. It is known that resonating notations of the adverse effects on the ecological degradation of the habitat of oil communities have been a subject of contest over the years. Clamours by natives of communities where exploration has inflicted huge blow on the habitat has been a major source of conflict, which in itself has over time borne metabiotic impacts generating disturbing offshoots in the Country, particularly in the immediate Niger-Delta region where oil exploration is deep seated, and at large, the Country.
The destruction of land and water resources as well as the atmosphere with pollutants, have brought indigenes of these communities to pitiable conditions. The demands for amnesty by these natives appear not to be suffice enough to address the environmental impacts. It is clear that while some of these impacts may be difficult to avoid, it is not inarguable that there are some which are much avoidable. Ameliorating, curative and restorative efforts such as the Ogoni clean-up, are some of the efforts channeled towards cushioning the impacts of degeneration of habitats of oil communities to relief the inhabitants. The effects of oil exploration have further compounded with illicit misadventures such as pipeline vandalism posing threats on the ecology, health and social wellbeing of communities in project areas.
Last Monday, Minister of Environment, Dr Mohammad Abubakar, had disclosed that Nigeria recorded 4,919 oil spills between 2015 to March 2021 and lost 4.5 trillion barrels of oil to theft in four years. Abubakar who disclosed this at a Town Hall meeting in Abuja, organised by the Ministry of Information and Culture, on protecting oil and gas infrastructure had said that several statistics have emphasised Nigeria as the most notorious Country in the world for oil spills, loosing roughly 400,000 barrels per day. The minister had noted that the effects of the destruction of oil and gas facilities had caused huge economic losses from pipelines to plant shut downs, as well as loss of biodiversity, habitat and ecological damage. Moreover, the destruction had also caused degradation of soil quality, which drastically reduces soil fertility, thereby, affecting crop yields and food security, particularly in the affected region.
He was quoted: “According to the National Oil Spill Detection Agency (NOSDRA) data, the total number of oil spills recorded from 2015 to March 2021 is 4,919, the number of oil spills cost by collation is 308. The operational maintenance is 106, while sabotage is 3,628 and yet to be determined 70, giving the total number of oil spills on the environment to 235,206 barrels of oil. This is very colossal to the environment. Nigeria also lost approximately N4.75 trillion on oil activities in the four years between 2015 and 2018, as estimated by the Nigeria Natural Resources Charter.
“Several statistics have emphasised Nigeria as the most notorious country in the world for oil spills, loosing roughly 400,000 barrels per day. The second country is followed by Mexico that has reported only 5,000 to 10,000 barrel only per day, thus a difference of about 3,900 per cent. Now the environmental effect, which is the major concern of the ministry of environment, is in the loss of revenue. Attack on oil facilities has become the innovation that replaced agitations in the Niger Delta region against perceived poor governance and neglect of the area. The impacts of vandalism of oil facilities have not only caused pollution of the environment, but had consequences on the local people, the national economy and security. Also, increase in air pollution and the attendant climate change issues, public health impacts on affected communities, social impacts and loss of livelihood, supremacy among militants, casualties, among others.”
While efforts by the Government such as the Ogoni clean-up as well as monitoring and regulatory measures through the National Oil Spill Detection Agency (NOSDRA), can be reckoned with, and known to be pushing Oil Companies to take responsibility of remediation of degraded habitats, it is pertinent that much more measures need to be put in place to make them strongly responsive to avoid further deficiencies in operations which have made pollution such as oil spill pervasive. Hence, it is essential for the Government to strengthen policy measures towards checking the activities of oil exploration to mitigate, to the bearest minimum, operation gaps inimical to the environment, with threats to human habitat. Imperative is the significance of making the enforcement of relevant laws, regulations and guidelines, such as the Environmental Impact Assessment (EIA) Act, very stringent to direct the course of operators, particularly in the upstream subsector. More importantly, the need to create increasing awareness to develop orientation against the misadventures of vandalism of oil facilities and other illegal activities which preponderate the sector, and the negative consequences which these bear against human habitat is sacrosanct.
Since 1979 when the Ajaokuta Steel Industry project was started by the Alh Shehu Shagari administration, having signed the contract with a Russian firm in 1976, one would have expected the vision and mission of the project to have been long accomplished by now.
With initial cost put at $1bn, which has reverally reviewed over the years to well over N49bn.
But that was not to be, for reasons best known to our leaders. The project when completed is expected to provide over 40,000 direct jobs and countless indirect ones.
The core mandate for conceiving the project by the then Shagari Government was to supply materials for infrastructural development and eventual industrialisation of the country.
Established on 24,000 hectares of land in Kogi State, the rolling mill and integrated iron and steel plant, was equally targeted at earning foreign exchange for Nigeria.
This is a project that was said to be 84 percent completed in 1983 and 98 percent completed in 1994,but regrettably 30 years down the line the project remains uncompleted.
What could be the reasons adduced for this monumental failure on the part of the successive administrations. A lack of funds was one of the reasons put forward by Nigerian governments for failing to deliver this all-important project, but the country can easily buy SUVs at N160m each for over 800 members of the National Assembly, without recourse to the impulse of Nigerians.
The country can seamlessly pay its senators higher than their counterparts across the globe, but to finish a project that can turnaround the fortune of its citizens, there is no fund.
How do we situate this kind of attitude or character? Does this in any way suggest patriotism or statesmanship? We leave the answer for the people. The superficial reason for non-completion of the Ajaokuta Steel Industry project is that of lack of political will, corruption and possibly hidden agenda, driven by parochial ideology on the part of leaders of this great country.
We can as well not rule out neocolonialism, suggesting that technology cannot be transferred. The reason is simple. If I give you my heart, what will I use to breathe? This simply means that I cannot allow you to suffocate me to death in the name of doing good. Russia and other industrialised countries thrive on science and technology, so would they now transfer their mainstay to us for a pittance?
Technology is hardly transferable, you can only develop your own or steal it from anywhere. It is better and safer to develop a homegrown technology that can easily be serviced and managed locally. And the earlier we wake up, put our thinking caps right, the better for us.
The way forward is to complete the age-long Ajaokuta Steel Industry project, no matter what it takes. The reason is that the vision of the founding fathers that conceived the lofty idea of the Ajaokuta Steel Industry remains germane, several years after their regime.
Also, in line with the ‘renewed hope agenda’ of President Ahmed Bola Tinubu, the finances of the protracted Ajaokuta Steel Industry project should be probed. Let the Economic and Financial Crimes Commission (EFCC) thoroughly look into this matter, to ascertain who took what as regards to the project.
If we cannot punish the looters, at least we can name and shame them. There is no reason why Nigeria should remain a toddler in the 21st century, having gotten her independence in 1960.
There is nothing stopping us from starting the process of development and industrialisation now. Nigeria can still pursue, overtake and recover. A journey of a million miles starts with a step.
Of all capital projects in the country, the Dangote Refinery has proven itself most profitable on a national scale. It did not suffer the fate of other state-run refineries who gulp billions annually but spit dirt. Its benefits remain endless for the government, marketers, and the common man.
Within a few months of operation, it crashed the prevailing market price of diesel. To oppose the oil freedom of Nigeria which has found fulfilment in the refinery is a sure marker of those antagonistic to the idea of a working Nigeria.
Over and over, the Federal Government has failed to live up to its promises of producing PMS in-country. So much so it led to the proliferation of illegal refineries. The South South still bears the brunt of soot, its major towns riddled with citizens who are ticking bombs of lung disease. A lack of order is an invitation to chaos. Sadly, this has been the Nigerian story for decades.
It is not one man’s responsibility to ‘save’ the nation, but Dangote chose this cause. How counterproductive then, if businesses that should improve the health of the nation, feel a lack of structural support from the government. With a lot of multinationals exiting the country, it feels self-defeating to hinder the success of a Nigeria-birthed refinery. If years ago, the Federal Government doled out 25 licences to build a refineries, and only Dangote Refinery has been able to fulfil the goal, it isn’t unbecoming to think that the government should be a prime supporter of the project.
Without mincing words, regulators should not act as bottlenecks to the success of Nigeria for the sake of personal aggrandisement of its officials. Recently, on social media, a retired ambassador’s daughter decried the weakness of the Nigerian passport, saying her father had been denied entry in the country he served as Nigeria’s representative. Already, Nigeria’s reputation in the international oil market is soiled. We import what we should refine. Need we soil our reputation any further? To constantly import fuel is neo-colonial slavery.
Regulators must resist the fate of puppets. Of course, the Nigerian-birthed refinery has antagonists. There are people who wish that Nigeria persists in oil penury despite its great potential. Government officials must remember that their role is temporary. International oil companies who seek an edge over the homegrown refinery will seek any means to upend its success. For them, the self-sufficiency of Nigeria is a threat. The officials must ensure that they are not a party to such malignant intentions.
It is no secret that Nigeria would be saving $26 billion annually from petrochemical plants and fertiliser importation, thanks to the Dangote Refinery. What more need be said. The unemployment rate will suffer an appreciable blow upon total success of the refinery… what other manifesto is greater than this? Not to mention the rebounding of the Naira when fuel importation is halted.
No wonder, speaking on his motivation, the mogul said once, “What actually inspired me is when you look at what happened in a country like India where entrepreneurs went ahead and created about five million barrels-per-day oil refinery. This country does not have as much oil as Nigeria. Nigeria is here sitting on over 2.4 million barrels per day at a point and we do not refine the oil we produce. Here, we have a country of over 200 million people and we are importing 100 percent of what we consume.”
When the Federal Government abruptly halted the fuel subsidy, it revealed its political will in matters of note. Here again, the government through its regulators must stand true, and act as a barricade against the dirty politics of those who want continual impoverishment of the nation. Nigeria must move on from mere propaganda to action that benefits the populace.
The Nigeria’s public debt stock which includes external and domestic debt stood at N121.67 trillion ($91.46 billion) in Q1, 2024, rising from N97.34 trillion ($108.23 billion) in Q4 2023, indicating a growth rate of 24.99 percent on a quarter-on-quarter basis.
Figures by the National Bureau of Statistics(NBS) on Monday said total external debt stood at N56.02 trillion (US$42.12 billion) in Q1 2024, while total domestic debt was N65.65 trillion (US$49.35 billion).
The figure by the NBS came on the heels of the disclosure last week by the Debt Management Office (DMO) that Nigeria’s total public debt has reached N121.67tn, increasing by N24.33tn or 24.99 per cent within three months.
In its publication titled “Nigerian Domestic & Foreign Debt Q1 2024,” the NBS said, “The share of external debt (in naira value) to total public debt was 46.05 percent in Q1 2024, while the share of domestic debt (in naira value) to total public debt was 53.95 percent.”
According to the NBS figures, “Lagos state recorded the highest domestic debt in Q1 2024 with N929.41 billion, followed by Delta with N334.90 billion while Jigawa state recorded the lowest domestic debt with N2.07 billion, followed by Ondo with N16.40 billion.”
The outcome of the Federal Executive Council Meeting led by President Tinubu pertaining to the issue of new Minimum Wage Memo is a setback to the scramble by the Organised labour Unions. The President has decided to step down consideration and deliberation on the memo on the new minimum wage to allow President Bola Tinubu engage in more consultation with stakeholders.
The Minister of Information and National Orientation, Mohammed Idris, disclosed this on Tuesday while briefing State House correspondents emphasising that the President has studied the report submitted by the Tripartite Committee on Minimum Wage and would consult further before a final submission on a new national minimum wage to the National Assembly.
President Bola Tinubu in January set up a Tripartite Committee to negotiate a new minimum wage for workers. The committee comprises the Organised Labour, representatives of federal and state governments as well as the Organised Private Sector.
However, the committee members failed to reach an agreement on a new realistic minimum wage for workers, forcing labour to declare an indefinite industrial action on Monday, June 3, 2024. Businesses were paralysed as labour shut down airports, hospitals, national grid, banks, National Assembly and state assemblies’ complexes. The labour unions said the current minimum wage of N30,000 can no longer cater to the wellbeing of an average Nigerian worker, saying government should offer workers something economically realistic in tandem with current inflationary pressures, attendant effects of the twin policies of petrol subsidy removal and unification of the forex windows of the current administration.
Labour ‘relaxed’ its strike on June 4, 2024 following assurances from the President that he was committed to a wage above N60,000.Both the Trade Union Congress (TUC) and Nigeria Labour Congress (NLC) leadership subsequently resumed talks with the representatives of the Federal Government, states, and the Organised Private Sector.
There is no agreement thus far on a new national minimum wage, barely a month after a Tripartite Committee set up for it began to deliberate seriously on the matter. It raises a spectre of uncertainty. This is further worsened by the governors’ rejection of the Federal Government’s N62,000 offer, amid the 7 June meeting of the committee with organised labour, which was deadlocked, yet again.
Such dissonance is undoubtedly unsettling. It is also distressing that the authorities in Abuja have remained silent over it. An insipid assurance by President Bola Tinubu that an executive bill will be forwarded to the National Assembly on the new national minimum wage without a consensual amount, does not soothe the nerves of either the organised labour or the governors. From its high horse, labour finally came down to N250,000 from its original N615,000 demand. On the contrary, the Federal Government had moved from N48,000 to N54,000, then N58,000, and later N60,000, until it tacked at N62,000.
The argument of the governors is that even N60,000 as a minimum wage is not sustainable and therefore will not fly, citing the lean financial resources of their states, competing demands and the indebtedness of many of them.
“It will simply mean that many states will spend all their allocations on just paying salaries, with nothing left for development purposes,” the NGF emphasised in its media statement. Some have argued that if a wage figure is forced on states, over 40 per cent of the workforce in many of them will be laid off.
One of the governors, Chukwuma Soludo, a former governor of Central Bank of Nigeria (CBN), who has a full grasp of the issues involved, in a subtle dissent at a recent public forum, said he pitied the President if he approved a minimum wage that was not sustainable. When the consequences begin to cascade, he stressed, “it will all be on his head.” Clearly, some states in the country still struggle to pay the two previous national minimum wages of N18,000 and N30,000.
These leakages and misplacement of fiscal priorities, typified in the recently inaugurated N21 billion official quarters of the Vice-President, amidst mass hunger and poverty in the land; the $12 billion official admission of annual loss of solid minerals revenue to rogue operators; and the ostentatious lifestyle of public officials, if not addressed will conflate with inflation to erode whatever gains workers might benefit from the wage review. President Tinubu has spent a year in office without the refineries and Compressed Natural Gas (CNG) buses functioning, as he had promised. There is a limit to propaganda as a tool of governance. Getting these facilities to work will add value to the minimum wage and reduce suffering in the land.
The state governments can lessen their financial burdens by aggressively weaning their payrolls of ghost workers. Dealing with a bloated workforce to remove personnel without any work schedule, office space or tables is inevitable now. It is unthinkable that in one of the South-west states, a commissioner recently appointed 273 advisers. Some governors have about 1,000 aides – an overreach in impudence, which the administrations of Ben Ayade and Isah Yuguda of Cross River and Bauchi states, respectively, were notorious for.
An overhaul of the internally generated revenue mechanism is crucial in the emergent fiscal regime with the new minimum wage, to ramp up the revenue base. Many of the states have suspect revenue accounting or returns systems that undermine their treasuries, which should not be condoned. If all the states can increase their IGR by 100 per cent the way Governor Siminalayi Fubara of Rivers State has done, under one year in office, from N13 billion monthly to N27 billion, it would boost their fiscal profiles and mitigate the challenges to be posed by an enlarged payroll. Other Governors must also wake from their slumber considering the fact most of the states are blessed with mineral resources that can cater for the needs of the people.
It is very critical that the Federal Government proffers lasting solutions by pencilling down a reality minimum wage for the workers and introduce incentives, palliatives that will capture the informal sectors as a means of cushioning the suffering by Nigerians.
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