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N217 bn Lost to Gas Flaring in 2016, Senate Moves to Amend Gas Legislation

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  • N217 bn Lost to Gas Flaring in 2016, Senate Moves to Amend Gas Legislation

Nigeria lost over N217 billion to gas flaring in 2016 as companies in the sector flared a total of 244.84 billion standard cubic feet (scf) of natural gas.

According to Senator Bassey Albert Akpan (Akwa Ibom, North East) who cited the figures from data he quoted from the Nigerian National Petroleum Corporation (NNPC), the volume is sufficient to feed three LNG trains or generate to 3.5 GW of electricity, which is Nigeria’s average power generation.

Leading the debate on the proposed amendment to the 38 year old Associated Gas Re-Injection Act, Akpan, who is the sponsor, argued that it is necessary to ensure that gas flaring sanctions are in tune with contemporary economic challenges.

The current penalty of N10 only, per 1,000 Standard Cubic Feet (scf), was outdated, and has not deterred operators in the gas industry from gas flaring, he said.

The bill also seeks the achievement of National Flares-out Target with January 1, 2030 deadline.

The lawmaker added that the outdated penalty, has compounded the consequences of flaring, including environmental challenges, and the limited availability of gas for domestic use, with tremendous negative effects on human health, economy, tax revenue, trade opportunities, and the atmosphere.

“The latest report from the NNPC also shows that in 2016, 22.32 billion scf of gas was flared in January, 20.38 billion scf in February, 20.11 billion scf in March, 18.7 billion scf in April; 15.8 billion scf in May, and 14.8 billion scf in June. Similarly, in the second half of the year, the country recorded the highest volume of gas flared in November at 24.54 billion scf, up from 22.60 billion scf in October; 21.5 billion scf in September; 21.14 billion scf in August, 21.79 billion scf in July and a total of 21.15 billion scf in December,” he said.

Akpan added that the euphoria of oil discovery and commencement of production in 1958 made the government turn a blind eye to stipulating proper regulations to guide the industry.

“ The Bill equally makes it mandatory for operators to submit gas utilisation plan within 90 days of the commencement of the Act for effective monitoring…taken into cognizance the experiences of other countries like the United States of America which emphasises creation of infrastructure for gas utilisation as condition for grant of license…also makes specific provisions for the installation of requisite gas flare meters equipped with facilities that enable real time, online data retrieval for independent reporting and monitoring by the industry regulator,” he said.

Akpan added that with the exit of Joint Venture Cash Call regime by government, attendant low oil price, the consideration and passaged of Petroleum Industry Governance & Fiscal Bill, low construction cost in the oil and gas industry, it is the time for investment in gas infrastructure.
The bill, Gas Flaring (Prohibition and Punishment) Bill, 2016, passed through second reading following a vote by the Senators.

In another development, the House of Representatives urged the Federal Government to declare Kogi, Anambra and Enugu States as oil producing States since exploration/mining activities have begun in the Basin since 2012.

The House also resolved to set up an Ad-Hoc Committee to determine the commercial viability of the oil and gas deposits in the Anambra Basin in order to optimize the commercial mining in the Basin where hydrocarbon activities began in 2012, for the benefits of the three states and to increase oil revenue for the country and resolve all outstanding boundary issues between the three States.

The resolution followed a motion sponsored by Hon. Emmanuel Egwu, Hon. Tony Nwoye and Hon. Patrick Asadu who noted that the government is fully aware of already explored and determined huge oil and gas deposits in commercial quantities in Anambra Basin, which cuts across Ibaji Area, Idah-1 , Alade-l, Atu-l , Inni-1 in Kogi State; Eziagulu Otu, Enugwu Otu, Nzam, Ezi-Anam, Anaku, Omor in Anambra State and Igga, Ojo, Uzo Uwani Areas in Enugu State.

Asadu, in his argument, said the failure to optimally harness, deposits in the Anambra Basin which would generate social and economic activities in the Basin has caused disaffection and crisis across the bordering States.

“Cognizant that Oriental Resources Plc has, since 2012, been prospecting on OPL 915 and OPL 916, derivable from the three adjoining States of Kogi, Enugu and Anambra but these have not been commercially mined as it is still awaiting Oil Mining License (OML) from the Department of Petroleum Resources (DPR) years after former President Goodluck Jonathan flagged off the operations of Oriental Petroleum Resources;”

“Believes that the declaration of Kogi, Anambra and Enugu States as oil producing States will not in any way jeopardize the on-going field tracing and provisional boundary demarcation between the States by the National Boundary Commission but will rather aid in determining the percentage of derivation accruable to the three (3) States, equally to be noted is that hydrocarbon has been found in the Basin but not yet optimally utilized,” the lawmaker added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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Israeli President Declares Iran’s Actions a ‘Declaration of War’

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Israeli President Isaac Herzog has characterized the recent series of attacks from Iran as nothing short of a “declaration of war” against the State of Israel.

This proclamation comes amidst escalating tensions between the two nations, with Iran’s aggressive actions prompting serious concerns within Israel and the international community.

The sequence of events leading to Herzog’s grave assessment began with a barrage of 300 ballistic missiles and drones launched by Iran towards Israel over the weekend.

While the Israeli defense forces managed to intercept a significant portion of these projectiles, the sheer scale of the assault sent shockwaves through the region.

President Herzog’s assertion of war was underscored by Israel’s careful consideration of its response options and ongoing discussions with its global partners.

The gravity of the situation prompted the convening of the G7, where member nations reaffirmed their commitment to Israel’s security, recognizing the severity of Iran’s actions.

However, the United States, a key ally of Israel, took a nuanced stance. President Joe Biden conveyed to Israeli Prime Minister Benjamin Netanyahu that, given the limited casualties and damage resulting from the attacks, the US would not support retaliatory strikes against Iran.

This position, though strategic, reflects a delicate balancing act in maintaining stability in the volatile Middle East region.

Meanwhile, Russian Foreign Minister Sergei Lavrov and his Iranian counterpart Hossein Amir-Abdollahian cautioned against further escalation, emphasizing the potential for heightened tensions and provocative acts to exacerbate the situation.

In response to the escalating crisis, the Nigerian government issued a call for restraint, urging both Iran and Israel to prioritize peaceful resolution and diplomatic efforts to ease tensions.

This appeal reflects the broader international consensus on the need to prevent further escalation and mitigate the risk of a wider conflict in the Middle East.

As Israel grapples with the implications of Iran’s aggressive actions and weighs its response options, President Herzog reiterated Israel’s commitment to peace while emphasizing the need to defend its people.

Despite calls for restraint from global allies, Israel remains vigilant in safeguarding its security amidst the growing threat posed by Iran’s belligerent behavior.

The coming days are likely to be critical as Israel navigates the complexities of its response while international efforts intensify to defuse the escalating tensions between Iran and Israel.

The specter of war looms large, underscoring the urgency of diplomatic engagement and concerted efforts to prevent further escalation in the region.

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