ON THE QUESTION OF WHO SHOULD BE IN CONTROL OF OIL AND GAS EXPLORATION/PRODUCTION IN NIGERIA?
December 3, 2020 | News
With regard to a recent video of a young man who was asking and demanding that State Governors should go into the exploration and production of oil and gas since, which according to him, the law and President Muhammadu Buhari did not stop them from doing so. It got my attention and I felt the need to address some of the main issues raised in the said viral video.
ON THE QUESTION OF WHO SHOULD BE IN CONTROL OF OIL AND GAS EXPLORATION/PRODUCTION IN NIGERIA?
With regard to a recent video of a young man who was asking and demanding that State Governors should go into the exploration and production of oil and gas since, which according to him, the law and President Muhammadu Buhari did not stop them from doing so. It got my attention and I felt the need to address some of the main issues raised in the said viral video.
According the young man in the video, he said that; “Over 30 years, Generals and people have been mining gold in Zamfara. Until a Governor decided that this gold, we will use it to build financial strength of the State. Our Niger Delta Governors, I keep asking them a simple question, did Buhari stop any of them from setting up their own oil company? For instance, a Bayesla Oil Company, that will be doing logistics, that will be doing storage, that will be doing filling stations. Did Buhari stop them? The law did not stop them! Did they stop us, from setting up for ourselves, and say since our illegal miners are producing and supplying Nigerians, as 70% of Nigeria’s AGO is coming from the region; can Governors of the Niger Delta region come together and buy this oil from these boys, and further process it. Or do the distribution in a legal way?”
First of all, the exploration and production of oil and gas are under the firm control of the Federal Government of Nigeria as enshrined in the nation’s Constitution. No State Governor can explore and produce Oil and Gas. The Oil and Gas sector and its activities are being strictly regulated by the Department of Petroleum Resources and the Nigeria National Petroleum Corporation (NNPC), which are directly controlled and managed by the Federal Government of Nigeria. So, asking the State Governors to go into the exploration and production of oil and gas sector, is like baseless because the Constitution does not allow it. What will the State Government refine in the said refinery facilities? Who will give them the crude oil to be refined? If the South-South States are given the power to own oil and gas companies by the constitution, then they will own same because the law would have allowed it so. But that is not the case because the Constitution only gives the control to the Federal Government.
The man in the said video is talking out of his own ignorance on the activities of oil and gas in the country. I am aware that many private individual companies have long applied to own refineries. But they have not been given the license to do this. Even the natural gas produced by oil companies and International oil companies belongs to the Nigerian Gas Company (NGC), which is a subsidiary of the NNPC that has no contribution whatsoever in the exploration and production of natural gas. I have written hundreds of letters, advising the Federal Government to liberalize the gas policy of Nigeria to enable individual companies to go into the exploration and production of natural gas without the interference of the Federal Government/NGC/NNPC.
The Nigerian oil and gas laws have put production of oil and gas under the firm grips of the Federal Government. These are some of the issues heating up the Niger-Delta crisis. It is just sad however, that there are too many ignorant elites in Nigeria, especially in this part of the country. Only the Federal Government of Nigeria that can allocate Oil Mining Lease (OML) License.
Agreed that, if Zamfara State in Nigeria has the rights to own solid minerals, since it was reported that the Central Bank of Nigeria (CBN), will give the Zamfara State Government a whopping N5 billion to supply gold to the apex bank; then the laws preventing the South-South States from owing and controlling the natural oil and gas resources here need to be revisited. I mean, why is the South-South Niger Delta States exempted from owning their mineral resources if the law is not biased? Why should States in the North own mineral resources in their State, whereas States in the South-South Niger Delta do not have such rights? Can our representatives in the National Assembly create a conversation on this, while it is fresh? Can social media enthusiasts create a conversation with this until we get clear answers?
Though, the Deputy Senate President, Senator Ovie Omo-Agege, has recently kicked against the said sales of gold bar by Governor Bello Matawalle of Zamfara State to the CBN, saying the governor has no right to sell the mineral resources that belong to the Federal Government, but there is more to be done – which is, it is either the said sales of gold is reversed, or the Niger Delta States are given the same rights to also sell their own mineral resources. The fundamental issue here is: Zamfara State cannot be selling its gold to the CBN while Niger Delta States are not allowed to sell their oil, gas and condensate to whoever they want. If we are to go with what the law says, and noted by Na-Allah Mohammed Zagga (journalist based in Abuja), “Nigeria's mineral resources are the collective assets of Nigeria and no state can claim exclusive ownership of those resources. There should be no exceptionalism in this issue. We can't resist the restructuring agitations and at the same time allow this anomaly to happen. If it has already been formalized, it should be reversed. We can't eat our cake and have it.”
That being said. I also find it appalling that our South-South Niger Delta political leaders and their supporters are all about this issue of having control over their State’s natural resources, when they have not been faithful in the judicious use of all that have been coming to their coffers. They cannot be asking for more control and access to more collective wealth, when they have not been seen to be faithful, truthful and accountable in the use of the trillions of Dollars that have come into the region, just from 1999 till date.
It is an evident fact that the past and present South-South Niger Delta Governors have failed in ensuring good governance. The past and present Legislators and public office holders of the region have all failed also in this regard. All past and present Councilors and Chairmen of Local Government Areas, have all failed too. So, all the pressing questions and demands by the Niger Delta youths, should be channeled to their various State Executive Governments and their Federal and State Lawmakers from the region.
Zik Gbemre.
December 3, 2020
We Mobilize Others To Fight For Individual Causes As If Those Were Our Causes
With regard to a recent video of a young man who was asking and demanding that State Governors should go into the exploration and production of oil and gas since, which according to him, the law and President Muhammadu Buhari did not stop them from doing so. It got my attention and I felt the need to address some of the main issues raised in the said viral video.
According the young man in the video, he said that; “Over 30 years, Generals and people have been mining gold in Zamfara. Until a Governor decided that this gold, we will use it to build financial strength of the State. Our Niger Delta Governors, I keep asking them a simple question, did Buhari stop any of them from setting up their own oil company? For instance, a Bayesla Oil Company, that will be doing logistics, that will be doing storage, that will be doing filling stations. Did Buhari stop them? The law did not stop them! Did they stop us, from setting up for ourselves, and say since our illegal miners are producing and supplying Nigerians, as 70% of Nigeria’s AGO is coming from the region; can Governors of the Niger Delta region come together and buy this oil from these boys, and further process it. Or do the distribution in a legal way?”
First of all, the exploration and production of oil and gas are under the firm control of the Federal Government of Nigeria as enshrined in the nation’s Constitution. No State Governor can explore and produce Oil and Gas. The Oil and Gas sector and its activities are being strictly regulated by the Department of Petroleum Resources and the Nigeria National Petroleum Corporation (NNPC), which are directly controlled and managed by the Federal Government of Nigeria. So, asking the State Governors to go into the exploration and production of oil and gas sector, is like baseless because the Constitution does not allow it. What will the State Government refine in the said refinery facilities? Who will give them the crude oil to be refined? If the South-South States are given the power to own oil and gas companies by the constitution, then they will own same because the law would have allowed it so. But that is not the case because the Constitution only gives the control to the Federal Government.
The man in the said video is talking out of his own ignorance on the activities of oil and gas in the country. I am aware that many private individual companies have long applied to own refineries. But they have not been given the license to do this. Even the natural gas produced by oil companies and International oil companies belongs to the Nigerian Gas Company (NGC), which is a subsidiary of the NNPC that has no contribution whatsoever in the exploration and production of natural gas. I have written hundreds of letters, advising the Federal Government to liberalize the gas policy of Nigeria to enable individual companies to go into the exploration and production of natural gas without the interference of the Federal Government/NGC/NNPC.
The Nigerian oil and gas laws have put production of oil and gas under the firm grips of the Federal Government. These are some of the issues heating up the Niger-Delta crisis. It is just sad however, that there are too many ignorant elites in Nigeria, especially in this part of the country. Only the Federal Government of Nigeria that can allocate Oil Mining Lease (OML) License.
Agreed that, if Zamfara State in Nigeria has the rights to own solid minerals, since it was reported that the Central Bank of Nigeria (CBN), will give the Zamfara State Government a whopping N5 billion to supply gold to the apex bank; then the laws preventing the South-South States from owing and controlling the natural oil and gas resources here need to be revisited. I mean, why is the South-South Niger Delta States exempted from owning their mineral resources if the law is not biased? Why should States in the North own mineral resources in their State, whereas States in the South-South Niger Delta do not have such rights? Can our representatives in the National Assembly create a conversation on this, while it is fresh? Can social media enthusiasts create a conversation with this until we get clear answers?
Though, the Deputy Senate President, Senator Ovie Omo-Agege, has recently kicked against the said sales of gold bar by Governor Bello Matawalle of Zamfara State to the CBN, saying the governor has no right to sell the mineral resources that belong to the Federal Government, but there is more to be done – which is, it is either the said sales of gold is reversed, or the Niger Delta States are given the same rights to also sell their own mineral resources. The fundamental issue here is: Zamfara State cannot be selling its gold to the CBN while Niger Delta States are not allowed to sell their oil, gas and condensate to whoever they want. If we are to go with what the law says, and noted by Na-Allah Mohammed Zagga (journalist based in Abuja), “Nigeria's mineral resources are the collective assets of Nigeria and no state can claim exclusive ownership of those resources. There should be no exceptionalism in this issue. We can't resist the restructuring agitations and at the same time allow this anomaly to happen. If it has already been formalized, it should be reversed. We can't eat our cake and have it.”
That being said. I also find it appalling that our South-South Niger Delta political leaders and their supporters are all about this issue of having control over their State’s natural resources, when they have not been faithful in the judicious use of all that have been coming to their coffers. They cannot be asking for more control and access to more collective wealth, when they have not been seen to be faithful, truthful and accountable in the use of the trillions of Dollars that have come into the region, just from 1999 till date.
It is an evident fact that the past and present South-South Niger Delta Governors have failed in ensuring good governance. The past and present Legislators and public office holders of the region have all failed also in this regard. All past and present Councilors and Chairmen of Local Government Areas, have all failed too. So, all the pressing questions and demands by the Niger Delta youths, should be channeled to their various State Executive Governments and their Federal and State Lawmakers from the region.
Zik Gbemre.
December 3, 2020
We Mobilize Others To Fight For Individual Causes As If Those Were Our Causes