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Nigeria Oil Output Drops Further as Leak Compounds Security Woes

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Adenuga

At least a fifth of Nigerian oil output, equivalent to almost 400,000 barrels a day, has been shut down as a pipeline closure added to disruptions caused by militant attacks.

Royal Dutch Shell Plc declared force majeure — a legal clause that allows it to stop shipments without breaching contracts — on exports of Bonny Light crude following the discovery Tuesday of a leak on the Nembe Creek Trunk Line, according to a statement Wednesday. The incident comes amid escalating attacks by militants operating in the Niger delta, which have already halted shipments from the Forcados terminal and the Okan oil platform.

“‘We don’t know if it’s an attack or sabotage” on the Nembe Creek line, Lagos-based Sola Omole, a spokesman for Aiteo Exploration and Production Co., the operator of the pipeline, said by phone. “It is only when the contractor gets to the site and takes a look at it that we can say definitively that this is the cause of the problem. ”

 A resurgence of attacks on oil infrastructure caused Nigerian production to drop to the lowest in 20 years last month, compounding the impact of slumping crude prices on Africa’s largest economy. Formerly the continent’s largest oil producer, the nation has slipped into second place after Angola, according to data compiled by Bloomberg.

Production Halt

The Nembe Creek Trunk Line runs for 100 kilometers (62 miles) through the Nigeria’s oil producing region to the Bonny crude oil terminal and has a capacity of 600,000 barrels a day, according to Shell’s website. At least 78,000 barrels a day of Aiteo’s crude output has been shut down because of the leak, Omole said. Shell said the force majeure covers all Bonny Light shipments — scheduled at 217,000 barrels a day next month — without specifying how much production could be disrupted.

The shutdown last week of Chevron Corp.’s Okan platform, which feeds the Escravos export facility, affected 90,000 barrels a day of production. About 200,000 barrels a day of output has been halted at Shell’s Forcados terminal since February.

Oil futures recouped losses following the Bonny Light force majeure, with international benchmark Brent crude gaining as much as 1.3 percent to $46.13 a barrel on the London-based ICE Futures Europe exchange.

Delta Avengers

A group calling itself the Niger Delta Avengers said on its website that it was responsible for the attack on the Chevron facility. The authenticity of the claim could not be verified by Bloomberg News.

Nigeria’s armed forces are aware of a new group “who have vowed to cripple economic activities,” Brigadier General Rabe Abubakar said in a statement on Tuesday. “The military will employ all available means and measures within its rule of engagement to crush any individual or group that engages in the destruction of strategic assets and facilities of the government.”

International producers including Shell and Chevron began evacuating non-essential workers and contractors from major oil production facilities as part of safety measures, Chika Onuebgu, Rivers state chairman of the Trade Union Congress of Nigeria, said by phone Tuesday. “It is not a lock-down, it is just a precautionary measure” and oil operations continue in areas not affected by attacks.

The current attacks echo a similar wave of violence between 2006 and 2009, which ended after militants accepted an amnesty from late-President Umaru Musa Yar’Adua, disarming in exchange for cash payments. The militants have been frustrated by current President Muhammadu Buhari’s decision to scale back the allowances.

The International Energy Agency estimated last month that Nigeria could lose an estimated $1 billion in revenue by May, when it expects repairs on Forcados to be completed. The terminal may not restart until June, Kachikwu said April 20.

“The government needs to address this very quickly,” Onuegbu says. “Insecurity is becoming a big problem in the Niger delta with the return of these attacks.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Knocks, Kudos For Judiciary Over Stoppage of Allocations to Rivers State as Fubara Boasts of Coping Without FG’s Funds

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Siminalayi Fubara

A mixture of condemnation and praises has trailed a judgement of a Federal High Court that stopped the release of state allocations to the Rivers State Government.

Investors King had reported that Justice Joyce Abdulmalik of a Federal High Court in Abuja, on Wednesday, ordered the stoppage of the release of monthly federal allocations to Rivers State.

Justice Abdulmalik predicated her action on the grounds that the state government was in violation of the Constitution as regarding the state expenditures.

According to the judge, the current budget being operated by the state was not passed by a lawful arm of the Rivers State House of Assembly, therefore, Fubara is not entitled to allocations from the government at the centre.

Meanwhile, some stakeholders in the country have knocked the judiciary over the decision, calling on the Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun to rein in on judges’ actions over the political crisis ravaging Rivers.

For former Vice President Atiku Abubakar, the judiciary should be cautioned against setting the South-South State on fire.

In a statement by his media adviser, Paul Ibe, the former Vice President, said it was appalling that some elements loyal to the Federal Government were pulling the strings from behind.

Atiku wondered why Justice Joyce Abdulmalik issued the order when it was public knowledge that Rivers State had already challenged the Court of Appeal’s judgement on the legality of Rivers State’s 2024 budget.

He, however, called on Justice Kekere-Ekun to ensure that those found wanting are disciplined in order to restore the fading glory of the nation’s judiciary.

In the same vein, Chief Emeka Kalu, National Coordinator of the Peoples Democratic Party (PDP) Coalition observed that the ongoing crisis plaguing Rivers State must be handled with caution to save it from unnecessarily being flamed in uncontrollable state of lawlessness.

Kalu in the statement said the judiciary is expected to maintain its integrity and protect her independence by working to avoid being politically purchased to harm democratic processes and the ethics of law.

According to him, the recent judgement by the Abuja Federal High Court division directing the RMAFC to stop releasing statutory monthly allocation to the State government was done out of bias and politically motivated plans to disrupt Fubara ‘s administration.

The group affirmed that it remains the height of injustice for a political party under the guise of personal interest to continue raising the dust of anarchy against the will of the people and the judiciary is expected to redeem and revitalize the failed system instead of allowing herself to be used to ruin the polity.

On the contrary, the National Democratic and Change Coalition has hailed the court for the judgment banning further release of allocations to Rivers and called on Governor Fubara to refund all monies spent without appropriation to the state coffers.

The coalition, while expressing satisfaction with the ruling, said the people of Rivers State have been vindicated and the long-awaited justice has been served on the governor.

Reacting via a press release by John Uloko, president of the coalition hailed Justice Joyce Abdulmalik for the judgment, saying that since January 2024, Rivers State had received and spent allocations based on an “illegitimate” budget, thereby describing it as a “constitutional aberration”.

The group, made up of lawyers, agreed with the court that Governor Siminalayi Fubara’s presentation of the 2024 budget before a four-member Rivers House of Assembly was an affront to the constitutional provision.

It added that the ruling is a victory for democracy and will teach rogue governors the bitter lesson that the Constitution of the Federal Republic must be respected and the sanctity of the nation’s democratic institutions upheld irrespective of their political desperation.

Nonetheless, the embattled Governor Fubara, on Wednesday said the restriction placed on the state allocations is “the least” of his problems.

Governor Fubara stated this during a special thanksgiving service organised by the state government to celebrate his administration’s resilience amid escalating political crises, which began with the arson attack on the State House of Assembly complex exactly one year ago.

Governor Fubara assured that despite the court order, his administration would continue payments to contractors and ensure workers’ salaries are disbursed from today (Thursday).

He also confirmed that allocations for the 23 Council Chairmen would be credited, as the Joint Accounts Allocation Committee procedures have been completed.

The governor encouraged his supporters to remain resilient, assuring them that all challenges are surmountable.

Reflecting on his administration’s success, Governor Fubara noted that despite predictions that his government would not last even a week, he has successfully led for over a year.

He said his administration has also conducted local government elections against all odds and maintained a full cabinet despite attempts to undermine his leadership through resignations.

Highlighting his administration’s progress, he mentioned ongoing project executions across the state, countering critics who claimed he would be unable to deliver.

He also cited recent reports that position Rivers State as one of the leaders in financial accountability and transparency.

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Court Bars FG From Giving Monthly Allocation To Rivers Government

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Siminalayi Fubara

The Federal High Court in Abuja has restrained the Federal Government of Nigeria from giving monthly constitutional allocation to Rivers State Government.

Specifically, the court presided over by Justice Joyce Abdulmalik stopped the Central Bank of Nigeria (CBN), the Accountant General of the Federation, Zenith Bank and Access Bank from further allowing Fubara to access money from the Consolidated Revenue and Federation Account.

Justice Abdulmalik stated while delivering the order on Wednesday that further release of monthly financial allocations to the Rivers State government is unconstitutional and an aberration.

The court maintained that the previous collection and disbursement of monthly allocations since January this year by Governor Siminalayi Fubara is a constitutional somersault and aberration that must not be allowed to continue.

The judge anchored his decision on the manner in which Governor Fubara presented the 2024 budget, stressing that the presentation of the fiscal document before a 4-member Rivers House of Assembly was an affront to the Constitutional provision.

He said that Fubara action in implementing unlawful budget smacked gross violations of the 1999 Constitution he swore to protect.

Abdulmalik then stopped the CBN, the Accountant General of the Federation, Zenith Bank and Access Bank from further allowing Fubara to access money from the Consolidated Revenue and Federation Account.

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Senate Postpones Screening Of Ministerial Nominees, Gives Reasons

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Senate President Akpabio

Nigerian Senate has shifted the scheduled screening for ministerial nominees, initially set for today.

The postponement of the exercise to Wednesday is to enable the nominees provide all needed documents as well as allow for sufficient time to complete their documentation and pre-screening processes.

The announcement was contained in a statement signed on Tuesday by the Special Adviser to the President on Senate Matters, Senator Basheer Lado.

According to Lado, the screening will hold on Wednesday, at 12:00 pm.

Lado, while explaining the reason for the postponement said the scheduled screening of ministerial nominees was shifted by the Senate, adding that it is to allow all nominees to conclude all aspects of documentation and pre-screening exercises.

He said the Office of the Special Adviser to the President on Senate Matters thanked the public for their understanding and cooperation.

Recall that the Special Adviser to the President had on Monday disclosed in a statement that the screening will hold today.

President Tinubu had written the Senate, seeking the screening and subsequent confirmation of appointments of seven ministerial nominees announced in Abuja last Wednesday.

Tinubu’s request was contained in a letter addressed to the President of the Senate, Senator Godswill Akpabio, and read last Thursday during plenary.

According to the letter, the ministerial nominees were Dr Nentawe Yilwatda, Minister of Humanitarian Affairs and Poverty Reduction; Muhammadu Maigari Dingyadi, Minister of Labour and Employment; and Bianca Odinaka Odumegu-Ojukwu, Minister of State, Foreign Affairs.

Others were Dr Jumoke Oduwole, Minister of Industry, Trade and Development; Idi Muktar Maiha, Minister of Livestock Development; Rt Hon Yusuf Abdullahi Ata, Minister of State, Housing; and Dr Suwaiba Said Ahmad, Minister of State, Education.

President Tinubu in the letter had sought expeditious consideration of his request by the Senate.

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