By Emmanuella Anokam

The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has signed a Memorandum of Understanding (MoU) with Africa Indorama Energy Petrochemical Ltd. to supply 800 million scuff of gas to promote industrialisation in Nigeria.

Malam Mele Kyari, Group Chief Executive Officer, NNPC Ltd., said this during the signing of the MoU in Abuja on Saturday.

He said the aim of the MoU was to ensure that Nigeria’s abundant gas resources were harnessed.

According to him, the project is expected to contribute common revenue of 3.8 billion dollars annually to the Gross Domestic Product (GDP) and up to 18 billion dollars in its lifecycle.

He said the project would boost downstream production of about 4.8 Million Tonnes Per Annum (MTPA) of products including methanol, urea, and fertiliser.

He added that it would also create about 55,000 jobs, develop a condensate refinery to boost petroleum product supply and reduce product importation.

Kyari expressed satisfaction with the commitment of Indorama, which would invest at least 7 billion dollars in the project at the initial stage.

He said President Bola Tinubu’s directive was very clear and also aligned with the determination of NNPC Ltd. to ensure delivery on its gasification project.

“Because gas is available, we must make it available so that industries can come up; power and resources can be created, ultimately employment can be created and economy will boom.

“There is a huge connection between harnessing gas resources and this. My team and I will do everything possible to deliver this huge project,” said Kyari.

According to him, Nigeria is on the threshold of getting value out of gas, and NNPC is currently pursuing many large scale gas projects with the determination to achieve progress.

The Managing Director and CEO of Indorama, Mr Manish Mundara, said the company had proven track record in partnerships with NNPC for over 16 years.

He added that the duo had worked together in petrochemicals and fertiliser, and that the strategic collaboration had delivered world class projects.

“Nigeria’s gas reserves and its strategic location should position it as one of the largest producers of urea, ammonia, methanol and petrochemicals polymers.

“While we are working together on gas resources, we will partner the downstream and invest in at least two more lines of fertiliser, two lines of methanol and one big petrochemical project, among others.

“This will make Nigeria one of the largest producers of urea in Africa and the Western Hemisphere. The ball is rolling now, it’s our responsibility to work together and distribute benefits of industrialisation,” he said.

Earlier, Mr Bala Wunti, Chief Upstream Investment Officer, NNPC Upstream Investment Management Service (NUIMS), said the scope of the MoU involved assurance for gas delivery to meet the gas based industry.

“Overall, we anticipate that at the peak of the project, about 800 million scope of gas will be made available for domestic use, part of which will be used to provide the needed quantity of gas by Indorama.

“And the balance will be supplied to the domestic market to meet power demand, commercial and other activities, particularly in the eastern part of the country,” Wunti said. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Nigeria Extractive Industries Transparency Initiative (NEITI) has renewed the call for economic, environmental and social justice for oil, gas and mining host communities in Nigeria.

Dr Orji Ogbonnaya Orji, Executive Secretary, NEITI, made the call in Owerri, Imo State at the opening of the National Extractives Dialogue, organised by a Civil Society Organisation- Spaces for Change in collaboration with NEITI and the Ford Foundation.

The dialogue focused on Host Community Development Trusts (HCDT) to serve as the catalyst for equitable benefit-sharing and sustainable prosperity for all in host communities.

Orji, in a statement on Friday by Mrs Obiageli Onuorah, Deputy Director/Head Communications and Stakeholders’ Management, said a special multi-stakeholder’s approach was required for the development of host communities.

The NEITI Executive Secretary said such approach would draw national and international attention to the specific responsibilities of extractive companies, government, Civil Society Organisations (CSOs), development partners and the host communities.

This, he said, would address development issues of access to education, health care, job opportunities, environmental challenges and social infrastructure deficit in oil, gas and mining host communities.

He advised leaders of host communities drawn from the South-South and South East geo-political zones to change their advocacy approach and work with NEITI to push their complaints through peaceful consultations driven by knowledge, information, data sharing, constructive engagements and dialogue.

He explained that the 2023 annual dialogue series was to serve as a new platform for discussions and constructive debates on how citizens-centered-policy engagements would drive the implementation of HCDT established by the Petroleum Industry Act (PIA 2021).

“There is the need to examine how the HCDT as enshrined in the PIA is being implemented. What is the governance structure?

“How inclusive, participatory and transparent is the process of nominating members of the Board of Trustees, Management Committees and Advisory Committees,” he said.

Orji explained that NEITI’s legitimate interest in working with Spaces for Change, a civil society organisation was in furtherance of the agency’s partnership with CSOs to deepen the implementation of the Extractive Industries Transparency Initiative at the sub national levels.

He appealed to host communities in Nigeria to build trust and confidence in managing the relationship between host communities, government and the companies operating in the sector.

The Deputy Chairman, Committee on Host Communities in the House of Representatives, Abdulkarim Ahmed, called for inclusion of public education, conflict prevention, management and resolution mechanism in the implementation of HCDT Fund and pledged the support of the National Assembly.

Imo State Governor, Sen. Hope Uzodimma, represented by the Commissioner for Petroleum Resources, Prof. Eugene Opara, expressed satisfaction with the tone and direction of the dialogue and pledged the support of the state government.

Uzodimma welcomed the clarification given on the three per cent operating cost of the oil and gas companies.

He called on relevant government agencies in the sector saddled with implementation to invest in public education and enlightenment of host communities.

The host and Executive Director of Spaces for Change, Mrs Vicotria Ohaeri, called on the host communities to organise themselves and take full ownership of the process.

Ohaeri added that the provisions of the new legislation had moved host communities away from the era of charitable developmental assistance to a new era of entitlements and human rights.

“Host communities under the PIA provisions now have the right to benefit from natural resources.

“And these benefits are no longer acts of corporate benevolence, but entitlement to partake in the design, structure of their own development and participate in the governance and administration of the extractive resources,” she said.

The Dialogue was attended by government agencies in the oil and gas industry, civil society organisations, representatives of state governments, the media and development partners.

The Dialogue examined the structure of the fund, the need for inclusiveness in designing the governance structure, definition of roles of state governments, companies, traditional rulers, host communities and the civil society. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced 42 successful bidders in the 2022 Nigerian Gas Flare Commercialisation Programme (NGFCP)’s auction process.

Mr Gbenga Komolafe, the NUPRC Chief Executive disclosed the outcome of the bidding exercise in a statement made available to newsmen in Abuja on Wednesday.

He said the 42 successful companies/entities in the keenly contested bid for 49 flare sites were already  being issued with letters of award.

The NUPRC boss said 38 of the companies/entities had been awarded 40 flare sites for stand-alone single flare site development, while four were awarded nine sites to be developed as clusters.

“Reserve bidders’ status has also been accorded some companies for the corresponding flare sites in case the preferred bidders fail to meet the terms and conditions stipulated in the Request for Proposal (RFP).

“Award letters are already being transmitted to the respective successful entities through the appropriate channels,” he said.

“At this stage, the Preferred Bidders would individually proceed to execute the Suite of Commercial Agreements with relevant parties and effect payment of the prescribed award fees to enable the grant of Permit to Access Flare Gas by the Commission,” he said.

Komolafe said that KPMG, a global network of professional firms, had been approved to partner with the Commission in the implementation of the award to ensure successful outcome of the gas flare-out commercialisation process.

The NUPRC boss, on behalf of management congratulated the successful bidders and enjoined them to follow through with the final stages of the programme towards becoming Permit Holders and executors of viable projects that would harness flare gas for value creation.

Komolafe recalled that, In furtherance of the commission’s mandate in Sections 7 (e) and 105 (2) of the Petroleum Industry Act (PIA), 2021, the NGFCP was restructured and the programme re-launched  in the third quarter of 2022,

The restructuring, according to him, was to align with the provisions of the PIA, as well as reflect prevailing economic and operational realities.

He said the significant successes recorded in the NGFCP bid process was due to a series of focused engagements with relevant stakeholders.

Komolafe said the stakeholders included the domestic investors, international development agencies, oil and gas producers, technology providers and financial institutions during the intervening months.

He added that the engagements by the Commission were to galvanise and sustain interest in the programme, attract investments and stimulate participation by local and foreign entities.

Tracing the processes leading to the award, Komolafe said 300 companies/entities indicated interest in response to the Request for Qualification (RFQ) issued in the fourth quarter of 2022,

He said following the evaluation of their Statement of Qualification (SOQ) a total of 139 applicants were deemed successful and awarded the Qualified Applicant status.

“Subsequently, in the first quarter of 2023, the Commission issued the RFP to enable qualified applicants to put together their respective proposals for any of the 49 flare sites on offer.

“88 entities, comprising individual companies and consortiums responded to the RFP and submitted a total of 137 proposals, each containing technical, commercial and financial documentation for one or more of the 49 flare sites for either standalone or cluster development,” he said. (NAN) (www.nannews.ng)

Edited by Rotimi Ijikanmi

By Fatima Mohammed-Lawal

The Non-Academic Staff Union of Educational and Associated Institutions (NASU) has urged the Federal Government to resuscitate its four oil refineries and make them operational.

Mr Peters Adeyemi, the General Secretary of NASU, made the call on Monday during an interview with newsmen on the sidelines of the 2023 Quadrennial Delegates Conference/Election in Ilorin, Kwara.

The programme consist of Universities and Inter-University Centres Trade Group Council, held at the University of Ilorin (Unilorin)

Adeyemi appealed that Nigerian oil refineries must start working to ensure that the country produced what the citizens consumed.

He urged the government to investigate all monies committed to refineries repairs in the country and ensure adequate security to prevent the smuggling of Premium Motor Spirit (PMS) to neighbouring countries.

The NASU general secretary decried the treatment of members by the government, saying “we are yet to receive their outstanding salaries during the strike actions we were forced into”.

He added that the issue of Integrated Payroll and Personnel information system (IPPIS) has created crisis in salaries of members, including delayed payment, haphazard payment, allowance omission and lack of payment.

Adeyemi explained that the conference was expected to deliberate on finding lasting solutions to issues such as the hardship associated with the removal of subsidy and setting agenda for the next four years.

Prof. Wahab Egbewole, the Vice Chancellor of Unilorin, said that tertiary education was going through turbulent times.

Egbewole, who was represented by Prof. Olubunmi Omotesho, the Deputy Vice Chancellor (Academics) of the university, stated that NASU had become a crucial component of universities and Inter-University union.

He called on the unions to collaborate and work together to move the education system forward, saying that no country can develop without addressing problem confronting its education.

He urged the union to therefore, deliberate on challenges of access to education and autonomy of universities.

“Financial issues, curriculum and ‘Japa syndrome’ must be addressed. A lot of staff are leaving the country and it is becoming difficult to replace them.

“The state of the tertiary education in Nigeria is tied to the state of the economy. No country can make progress without developing the state of its education,” he said.

Mrs Roseline Adebayo, the Chairperson, Kwara State Chapter of NASU, observed that the recent removal of subsidy on petrol amidst high inflation had resulted to increase in price of other commodities in the market.

According to her, the increase has eroded all gains of the New Minimum Wage approved by the administration of former President Muhammadu Buhari.

“This precarious situation is a serious threat that could have truncated the delegates journeys and made the National Secretariat call for ratification of tenure elongation for all levels of officers serving our union in this critical time.

“Universities and Inter-Universities Trade Group is key to NASU operation and our leaders cannot treat matters concerning this trade group with kid glove,” she said.

Earlier in his welcome, Mr Suberu Ibrahim, the Unilorin Branch Chairman, commended members for their perseverance, diligence and sacrifice and also thanked them for the support giving to his executive.

He advised members to be more proactive and pragmatic in their approach to ensure that NASU realised its lofty goals and ideas without losing her long-sustained accomplishment and fame. (NAN)(www.nannews.ng)

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Edited by Benson Iziama/Muhammad Suleiman Tola

By Emmanuella Anokam

Sen. Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), says he will ensure the completion of ongoing construction of the N68.5 billion Nigerian Upstream Petroleum Regulatory Commission (NUPRC) `BARREL’ building without hitches.

The Minister made this known on Thursday while meeting with the management and staff of the NUPRC at its temporary headquarters in Abuja.

The News Agency of Nigeria (NAN) reports that the meeting preceded Lokpobiri’s visit to the proposed NUPRC’s Headquarters complex site, called “THE BARREL”, located in the Central Business District, Abuja.

Lokpobiri said he would intervene to resolve challenges hampering the building construction, adding that he had already discussed with the Central Bank of Nigeria (CBN) on how to address its forex challenges, hence there should be a follow up.

“The commission is so important that you need to work in the best condition. To be able to optimise productivity; you need to be in the best environment.

“I am very sad that you are still in the temporary site. The survival of the oil industry depends on what you do; That is why I am interested in ensuring that we complete the building.

“The challenges you have will be mine. Yesterday, I was with the CBN Acting Governor, you need to follow up so that your income that you earn in dollars will be in the domiciliary account for you to expend, instead of converting to Naira,” he said.

He expressed satisfaction with the success being recorded by the commission by surpassing its financial projection, the steady progress and completion level recorded at the construction of its permanent site.

“I have been briefed by the contractor handling the project and they raised few concerns. We are going to work towards addressing those concerns,” he added.

Mr Gbenga Komolafe, Commission Chief Executive (CCE) who received the Minister, said its regulatory focus was to increase the oil and gas reserve in the nation which stood at 37 billion barrel of oil and 208 TCF of gas.

“We are focused on increasing that through our regulatory approach and of course stepping up the transparency of hydrocarbon account which is very dear to our hearts. So we are pursuing that through strategies and regulations we are putting in place.

“There is a provision in the Petroleum Industry Act (PIA) that ensures the bye-in of the host community for inclusiveness in a manner that will encourage peaceful operation of the oil companies

“This is because without peace in the host community we cannot attain the set production target and revenue target for the nation. The commission is doing everything possible to step up effective implementation of that provision of PIA,” he said.

Komolafe said in view of this, it had ensured setting up of 82 host community development trust to serve as platform for implementation of that provision in the PIA to ensure peace.

He said it had made concerted effort to ensure reduction in the unit cost per barrel of oil targeted at ensuring that Nigerian upstream industry remained attractive to investors.

“We are equally in alignment with the global footprint in energy transition, ensuring decarbonisation in alignment with the nation’s net zero carbon emission commitment,” he added.

According to him, the commission, with a dedicated workforce of 933 staff nationwide, is being operated from five regional offices and four field offices.

In terms of revenue generation, he stated that as at July, it has already surpassed 50 per cent of its revenue generation, adding that since the last three years, it had remained so due to the hard work of the entire workforce.

Speaking on the ‘BARREL’ project, the CCE said the project (11th floor completion level) which was executed in 2021 and to be completed on Aug. 29, 2024, had its mode of payment through 65 per cent forex and 35 per cent local component.

Dr Taofik Popoola, Manager, Principal Artec Limited and the building’s design consultant, while speaking on the work status, said its installation and mobilisation recorded 100 per
cent, planning and design, 95 per cent, construction 96 per cent and procurement 48 per cent.

He listed challenges facing the construction to include inflation, COVID 19 pandemic effect, increase in prices of material, Naira devaluation (per dollar/N978 currently) and the Russian-Ukraine crisis.

“Naira to dollar was N385 at the time the contract was signed, it increased to N750 and now at N978.

“All these are unfortunately having negative effects on the procurement process, cost of project and time scheduling.” he said.

Mr Luis Sousa, Project manager, Julius Berger Nigeria Plc, further explained that due to COVID-19 and the Russia-Ukraine Crises, supply chain of some materials was affected especially in the area of steel supply because Ukraine is the major producer of steel components. (NAN)(www.nannews.ng)

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Edited by Vincent Obi

By Emmanuella Anokam

Dr Tajudeen Abbas, Speaker, House of Representatives says it will equip the Nigeria Extractive Industries Transparency Initiative (NEITI) with stronger statutory powers, through legislative amendments of its Act.

The speaker said the Act was geared towards enabling NEITI to carry out its task of ensuring transparency and accountability in the extractive industry

Abbas gave the assurance on Monday in Abuja at the unveiling of NEITI 2021 Solid Minerals Industry Report with its theme as “Impact built on blocking leakages to grow revenue’’.

Abbas, represented by Dr Awaji-Inombeth Abiante, Chairman, House Committee on Urban Development and National Planning assured of the support of the House of Representatives Committee on Petroleum Resources (Downstream) in all NEITI’s undertakings geared towards sector’s development.

“The House of Representatives will also play its part in ensuring the implementation of NEITI’s Report, in line with the relevant provisions of NEITI Act.

“The House will ensure that the solid minerals report is laid on the floor of the House and debated extensively to ensure the implementation of the recommendations made therein.

“Working together, we will ensure the realisation of government’s desire for diversification of the economy for the attainment of alternative source(s) of revenue and clean energy,’’ he said.

Abbas said Nigeria’s search for transparency and accountability in the governance of her abundant natural resources was directly linked to 2003 when the country voluntarily signed up to the global Extractive Industries Transparency Initiative (EITI).

He said Nigeria’s signing up to the EITI led to the establishment of NEITI in 2004 as part of the overall government economic and institutional reforms under the then National Economic Empowerment Development Strategy (NEEDS).

According to him, NEITI’s annual presentation of reports which gives basic information and data about the extractive industry generally, is in line with global best practice and in conformity with the provisions of NEITI Act, 2007.

“I must place on record my commendation of the leadership of NEITI, headed by Dr Orji Ogbonanya Orji for sustaining the practice of annual reporting of the activities transacted within the industry from time to time.

“This year’s report which is the 12th edition since the inception of NEITI is coming at a time when the government is in search for workable solutions which will enhance the economic fortunes of Nigeria and increase her revenue generation for multi-sectoral development.

“The Dr Orji’s leadership is also worthy of commendation for its role in leading the fight for reforms in the extractive industry. Your quest for the full implementation of the Petroleum Industry Act (PIA) and monitoring of same is worthy of commendation.

“The present leadership of NEITI has raised the bar in the fight for transparency and accountability in the extractive industry.

“Working together, we will ensure that the PIA is fully implemented to create the needed boom in the Downstream and Upstream sectors to bring about more foreign investments, improved local production and increased revenue for our nation,” he said.

Also speaking, Sen. Osita Ngwu, Chairman, Senate Committee on Solid Minerals said the report would help in its oversight function adding that the national assembly would work assiduously to enact enabling laws with global standard.

Mr Gaza Gbefi, House Committee Chairman on Solid Minerals urged NEITI to also consider releasing a report to determine actual amount of solid minerals extracted and exported.

The News Agency of Nigeria (NAN) reports that over the years NEITI has published 12 cycles of independent reports in the solid minerals covering years 2007 to 2021 which disclosed total revenue of N845.14 billion to the federal government.

The 2021 reports recorded total revenue generation of N193.59 billion from the solid minerals sector by the Federal Government. (NAN)(www.nannews.ng)

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Edited by Maureen Atuonwu

By Emmanuella Anokam

The Federal Government says it will support and deepen the implementation of the Extractive Industries Transparency Initiative (EITI) in the management of Nigeria’s oil, gas and solid mineral resources.

Sen. George Akume, Secretary to the Government of the Federation, gave the assurance on Monday in Abuja while unveiling the Nigeria Extractive Industries Transparency Initiative (NEITI) 2021 Solid Minerals Industry Report.

The report, with its theme as “Impact built on blocking leakages to grow revenue” is the 12th in cycle and aimed at producing a solid minerals industry report for 2021 in accordance with the EITI standard.

It covers 1,214 companies operating in the sector and three key government agencies namely; the Ministry of Mines and Steel Development, the Mining Cadastre Office and the Federal Inland Revenue Service.

Akume, represented by Dr Maurice Mbaeri, Permanent Secretary, General Services Office, SGF, said President Bola Tinubu’s administration was committed to the fight against corruption in the extractive industry in particular and in other sectors of the economy.

“We are convinced that the revival of our economy and the eight-point agenda that we recently unfolded cannot yield the desired result if we do not support and strengthen anti-corruption and reform-oriented agencies like NEITI,” he stated.

He commended the NEITI leadership for its extensive work, a core mandate for international commitment and its achievements so far in discharging its mandates over the years, especially during the last board and current management.

‘’Shortly after I assumed office, the NEITI Executive Secretary briefed me and presented a strong case for this administration to continue to support Nigeria EITI to institutionalise transparency and accountability in the oil, gas and mining sectors.

“The NEITI 2021 industry report being unveiled today is quite timely, coming when the present administration is fully committed to diversifying the economy through deliberate priority attention to the non-oil sectors,” he said.

He appreciated the fact that the report examined the payments that mining companies made to government, and the funds that government actually received into its coffers from all revenue streams during the review period.

He assured that the Federal Government would carefully study the report and adopt it as a valuable working document for the government’s overall reform programme for the solid minerals sector.

He called on all extractive industry companies to comply with the EITI process, which was statutory and mandatory.

Speaking, Dr Orji Ogbonnaya Orji, Executive Secretary, NEITI, said while developed nations relied on data-driven information and facts to plan, most developing and underdeveloped countries relied on primordial considerations and assumptions.

Orji said to address the gap in the sector, Nigeria, with its vast extractive industry was implementing the EITI global standard of promoting transparency and accountability in member countries.

“Citizens’ access to reliable data on company revenue and payments, government receipts and prudent utilisation, is not only mandatory but also defines the essence of regular EITI industry reports for member countries,” he said.

Considering the enactment of the Petroleum Industry Act, he said the global focus on renewable energy, climate change, and energy transition, its oil, gas and solid minerals reports offered timely information to prepare Nigerians for crucial debates.

“I, therefore, invite all Nigerians, policy makers, legislators, and civil societies to study the report and use it to hold government and companies accountable.

“He who has the facts controls the debate,” he said.

The News Agency of Nigeria (NAN) reports that over the years NEITI has published 12 cycles of independent reports in the solid minerals covering years 2007 to 2021, which indicated total revenue of N845.14 billion to the federal government.

The 2021 reports recorded total revenue generation of N193.59 billion from the solid minerals sector by the Federal Government. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Federal Government generated N193.59 billion from the solid minerals sector in 2021.

The sector also contributed N814.59 billion between 2007 and 2021, with the 2021 earnings, the highest.

The Nigeria Extractive Industries Transparency Initiative (NEITI) made this known on Monday in Abuja while unveiling its 2021 Solid Minerals Industry Report, tagged: “Impact built on blocking leakages to grow revenue’’.

The News Agency of Nigeria (NAN) reports that the Secretary to the Government of the Federation (SGF), Sen. George Akume, unveiled the report.

Akume was represented by Dr Maurice Mbaeri, Permanent Secretary, General Services Office, SGF.

The report, the 12th in the series, covers actual payments by 1,214 companies operating in the sector and receipts from three key government agencies.

It covers the quantities of minerals produced, utilised and exported from the sector, reconciled the physical/financial transactions and undertook special verification on some processes.

Presenting the report, Dr Orji Ogbonnaya Orji, Executive Secretary, NEITI, said the figure showed an increase of N60.32 billion or 51.89 per cent growth, when compared to the 2020 revenue flows of N116.82 billion.

This positive trend, he said, reflected a continuation of the upward positive trajectory observed in the sector over the past five years.

“This contribution, though a significant increase over past years, is still abysmal considering the potentials of the sector to the Nigerian economy,” he said.

Orji said the 2021 Solid Minerals report reviewed, ascertained, reconciled and reported all revenues and investment flows to and from government in the solid minerals sector.

He said the NEITI report also covered balances payable/receivable from financial inflows, tracked the funds and utilisation meant for the development of solid minerals in Nigeria.

According to Orji, the funds include Natural Resources Development Fund; Solid Minerals Development Fund; Ministry of Mines and Steel Development’s MinDiver Programme and Solid Minerals Development Funds under the Small and Medium Industries Equity Investment Scheme operated through the Bank of Industry.

A breakdown of the revenues showed that the Federal Inland Revenue Service collected N169.52 billion; Mining Cadastre Office generated N4.3Billion while the Mining Inspectorate Department generated N3.62 billion.

He said the revenue to the federation account from the sector in the past 15 years, which was N818.04 billion was significantly low compared to the economic potential of the sector.

On Production, Orji said the report disclosed that the total volume of solid minerals used or sold in 2021 was 76.28 million tons with a royalty payment of N3.57 billion.

“The minerals with the largest production volume in the year under review are Granite, Limestone, Laterite, Clay and Sand.

“Dangote Plc accounted for the highest production with a total production of 28.8 million tons. Bua and Lafarge accounted for 8.4 and 4.3 million tons while Zeberced accounted for 3.3 million tons respectively.

“Ogun state recorded the highest production in the year under review, with a total of 17.5 million tons followed by Kogi state with 16.3 million tons and Edo with 8 million tons.

“The least production volume was recorded in Borno State with 25,500 tons,” he said.

The NEITI boss said a total of 2,045 licenses were issued with exploration licenses accounting for 840 (increase of 62.79 per cent), Small Scale Mining Lease, 771, Quarry Lease, 255, Reconnaissance Permit. 139 and Mining leases 40.

On Export, he said the total minerals exported in 2021 was 142.54 million tons with a Free on Board value of US$ 101.29 million, an increase of 138.57 per cent from the US$ 42.46 million reported in 2020 report.

He said China was identified as the principal destination of Nigeria’s mineral exports, accounting for 97 per cent and 88 per cent of the export volume and value while other destinations for Nigeria’s minerals included Malaysia, Korea, Thailand and the United Arab Emirates.

On solid minerals contribution to the economy, he said the report revealed that the sector contributed 0.63 per cent to Gross Domestic Product (GDP), while there was improvement compared to previous years where it contributed 0.45 per cent in 2020 and 0.26 per cent in 2019.

According to him, the sector has not yet reached its full potential in making a significant impact on the overall Nigerian economy.

He identified a total of N1.06 billion as outstanding company liability to government within the period under review as a result of failure of some companies to pay their annual service fees for the respective mineral titles.

Annual service fee is a statutory payment by mineral title holders for each cadastral unit on mineral titles. (NAN)(www.nannews.ng)

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Edited by Vincent Obi

By Emmanuella Anokam

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has threatened to revoke the licences of oil operators or settlors who failed to remit the three per cent statutory fees to oil communities before September ending.

The NUPRC management on Friday said its attention had been drawn to the agitation by host communities in the oil and gas producing areas of the Niger Delta region over the delay by industry settlors/operators in remitting the statutory fees.

A statement signed by the Commission’s Chief Executive, Mr Gbenga Komolafe, said the three per cent remittance was governed by Section 235 of the Petroleum Industry Act (PIA), 2021.

The relevant section states that failure by any holder of a licence to comply with its obligations under this Chapter, may be grounds for revocation of the applicable licence.

“Therefore, defaulting operators (settlors) under PIA 2021 (section 235) are advised to do the needful by fulfilling their obligations and remitting the outstanding arrears without further delay.

“As the commission might be compelled by emerging circumstances to fully apply the law under section 235 of PIA 2021.

“Notice is hereby served that in a situation where defaults are not remedied by the end of September 2023, the Commission would have no option but to revoke the licence of the defaulting settler/operator,” said  the statement.

The commission said it understood the sentiments of the host communities, especially as the PIA had suspended and replaced existing provisions with a new Host Community Development Trust Fund (HCDTF).

The old provisions are; Global Memorandum of Understanding (GMOU) and the Memorandum of Understanding (MOU).

The Commission said it was fully aware of the implications of the development if allowed to fester.

It said the agitation might frustrate the Commission’s efforts at up-scaling the drive for higher foreign exchange and attracting Foreign Direct Investment (FDI) into the country.

Incidentally, it said it was also capable of truncating efforts at stabilising the value of the Naira, attaining the much-desired rebound in the national economy and improving the country’s macro-economic status.

“The statutory provision of the PIA regarding the annual contribution of operators in the industry, under Section 240 (2) of the PIA, 2021, is very clear.

“And it states: Each settlor, where applicable through the operator, shall make an annual contribution to the applicable host communities development trust fund.

“It should be an amount equal to three per cent of its actual annual operating expenditure of the preceding financial year in the upstream petroleum operations affecting the host communities for which the applicable HCDT fund was established.

“Given the implications of allowing continued default on sustained peaceful operations and the eventual effect on national oil and gas output.

“The Commission will be minded to activate its regulatory powers in line with PIA’s provisions as stated above, to bring defaulting recalcitrant settlors into compliance,” said the statement.

The NUPRC management said it recently passed the Host Community Regulation and organised a sensitisation programme, emphasising the responsibility of settlors under the PIA, 2021, but those concerned had neglected this, thereby stoking avoidable agitations.

“The settlors are, therefore, required to perform their obligation to commence remittance of the statutory three per cent contribution,” it added.

It stated that remittance of the statutory contribution, which should have served as succour to the host communities, had sadly become a source of pain to the lawful beneficiaries.

This, it said, had given impetus to actions that might affect smooth upstream operations within affected host communities, a situation that could have been addressed through routine social inclusion.

It further said although the ultimate regulatory sanction, as enshrined in Section 238 of the PIA, was the revocation of assets, but it had been careful in applying it.

It said this was to avoid compounding the already low level of investment and divestment rate and further impact negatively on production levels and revenue.

It said, rather, it chose to draw a balance and be strategic in implementing the provisions of the law. (NAN) (www.nannews.ng)

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Edited by Salif Atojoko