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Oil investment: Shell squeezing Nigeria, wants us to set aside our laws – NCDMB boss
Shell has, reportedly, withdrawn from the Memorandum of Understanding (MoU) Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian National Petroleum Company Limited (NNPC) signed with the international oil companies (IOCs), introducing a hiccup in Nigeria to reduce upstream projects’ contracting cycle and enable quick development of major oil and gas assets have hit a brick wall.
THISDAY reports that Shell might have pulled out of the deal to force the Nigerian government to suspend the country’s laws and grant it more waivers, after some waivers were granted it as an incentive to quicken development of some of its offshore projects that had been lying fallow for decades.
Simbi Wabote, Executive Secretary of NCDMB, who hinted at Shell’s withdrawal from the September 2023 tripartite pact, during his intervention at the just-ended 41st Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE), held in Lagos, said the IOCs, especially Shell, were no longer interested in investing in Nigeria.
The assertion came as NNPC lamented the return of portfolio managers into the Nigerian oil and gas industry due to the advent of the Nigerian Local Content Act.
As part of the steps to address the waning investment in the upstream oil sector, continued production decline, and infrastructure deficit, NNPC and NCDMB had in September signed the landmark MoU with the IOCs to reduce the contracting cycle by 81.6 per cent.
The move was expected to cut down the current contracting cycle to an optimal level of not more than 180 working days from the current 327 days.
NNPC, in a statement at the time, said the deal was expected to improve the ease of doing business, reduce cost and drive efficiency, which would eventually translate to production growth, increased revenues, and, ultimately, improved profitability.
The statement said: “The MoU is also expected to contribute significantly to the double-digit economic growth rate agenda of the federal government and generate tremendous value for all the stakeholders, which include investors, companies, host communities and the nation at large.
“Key benefits of the framework in the MoU include a reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days, respectively, compared with the current best effort performance of 327, 333, and 185 working days, respectively.”
But contributing during a panel session at the NAPE conference, Wabote stated that the reliance on the IOCs would not help Nigeria make progress in the development of its assets, stressing that Shell no longer wants to invest in the country.
Referring to Shell’s attitude in the September MoU between the IOCs, and NNPC and NCDMB, Wabote argued that the company had continued to demand more waivers after some had been granted it, adding the company wanted Nigeria to set aside every of its laws and allow it to develop the prolonged prolific Bonga Southwest project and some of its shallow offshore projects on its terms.
Wabote stated: “I don’t think Shell wants to invest in this country again. I’m sorry to say it, because I give you an example. Bonga Southwest started before I was even recruited in Shell and that is 26 years before I left Shell.
“Today, Shell wants Nigeria to set aside every law and do Bonga Southwest on their terms. Same thing with some of the shallow offshore projects. They want you to set all your laws aside and they want to create an emergency situation to tell you it is now very critical.
“But we started HI development almost 20 years ago, now it is very critical for Shell. HA development is now becoming critical for Shell. That’s how they leave their projects, such that it becomes critical, they write all the justifications, set aside your PIA, set aside your Local Content Act for them to do those projects. I personally don’t think they want to invest in those projects, they will prove me wrong, but time will tell.
“We in local content sat down with all the IOCs (myself and Mele Kyari) and we said, what are the issues to enable us increase production. They listed those issues. We agreed on waivers that we would give. Later, I wrote a letter and submitted back to Shell to say, three months ago, we agreed to all the waivers you requested, where is the progress? The next response was that they were looking for further waivers.”
The NCDMB boss encouraged the local exploration and production companies that are now taking over assets divested by the IOCs to apply strict corporate governance so that they could create a joint venture that would help the country to develop its assets. He said Nigeria needed to be deliberate and realise that some of the multinationals were not prepared to help the country move forward, adding, “Let’s take our destiny in our hands and progress accordingly.”
In her intervention at the panel, Executive Vice President (Upstream), NNPC, Oritsemeyiwa Eyesan, who listed the challenges confronting the country’s oil and gas industry, revealed that despite its gains, the Nigerian Content Act had encouraged the return of portfolio managers in the industry.
Eyesan said, “I must at this point just also introduce the challenges we have with local content. When the Local Content Act was passed, we were all excited and looking forward to the growth of local capacity.
“Indeed, there had been some gains in the past in this regard. But you will also agree with me that it has brought with it a lot of challenges, to the extent that we have more or less encouraged portfolio managers rather than build competences and capabilities that the local content law was supposed to achieve.”
Eyesan explained that the return of portfolio managers made projects’ financing more difficult, “because when you have middlemen, sometimes, you have several layers in these middlemen that it becomes almost impossible to complete projects profitably”.
She said another challenge facing the oil and gas industry in Nigeria, which was causing the exit of the IOCs and discouraging new entrants into the sector, was the difficult and lengthy contracting process. She described it as an operational challenge, which NNPC Limited was not insulated from.
Eyesan lamented as dismal a situation where a contracting process would linger for 24 months, instead of two to three months obtainable in other climes.
Citing political and regulatory risks as one other challenge in the industry, Eyesan said the Petroleum Industry Act (PIA) was supposed to be an enabler for investment, explaining that if well implemented, it would enable and attract investment into the industry.
She said financial risk was another major encumbrance in the sector, explaining that currency and exchange rates instability make it difficult to structure financing deals that would deliver on the expected return. She added that investors were leaving the shores of Nigeria partly because of the financial risk.
The NNPC EVP further said, “First of all, we all agreed that virtually all the IOCs are leaving onshore, not to say they are leaving Nigeria completely, and we’ve articulated some of the reasons why they are leaving. Security is a major one, because if I’m not assured that I would get my money at the end of the day, then there is no reason why I would continue.
“The other risk that confronts participants in the sector is operational risk. We talk about insecurity in the Niger Delta and in the entire country as a whole. Again, I want to invest, I’m not assured my investment will be realised. That definitely will not make it possible for me to come.
“Technology deployment as well: when we are not able to deploy cutting-edge technology because we cannot afford it, it becomes even more difficult for us.
“There are other in-country reasons: stability in our regulations, stability in the fiscal environment. Until you solve those problems, it will be difficult for you to start saying you want to attract foreign investment.”
For Diezani Alison-Madueke, there is nothing more to prove to anyone as God has finally fought her battle and restored her dignity, with here exoneration from allegation of massive looting on Nigeria during her years as Minister of Petroleum Resources.
Emerging from the Southwark Crown Court in London, where she was eventually exculpated from blames after many months of trial, the former Minister, who had been living in the UK since 2015, as a fugitive, having escaped the claws of the government of Muhammadu Buhari, Nigeria’s former President, which had accused her of multiple cases of sleaze, she told reporters that everything would be kept in abeyance to enable her enjoy her freedom which had been denied for so long.
But before then, she attributed her acquittal on bribery charges which said had ended years of “unjust vilification,” to the handiwork of God while thanking those who stood by her during the trial period she described as “arduous” and “traumatic.”
The court had freed the once very powerful Minister, who ended up in the petroleum ministry after hitherto serving in different capacities of all six charges after hours of deliberation on Wednesday, after six months of trial, which began in January when the UK government charged her in August 2023 over an alleged £100,000 bribe.
Part of the prosecution in the UK court was that she accepted bribes in the form of luxury goods and use of high-level properties from industry figures in return for awarding multi-million-pound oil and gas contracts during her time in office.
But in her defence, the former Minister through her lawyers, told the jury that she had limited control over oil contract approvals during her time in office, as most decisions were made before reaching her desk.
After the court agreed with her, she told reporters: “I’m just thankful to God. It’s been a very, very arduous and long, almost 11 years. It’s been traumatic not just for me but for my family, for friends, for all those who have stayed and supported, for my 93-year-old mother in Port Harcourt, for my son, and for all those who love us, friends and family. We’re surrounded by friends here. So it has been a hard journey.
“But I tell you this, God will always do as God wills, and God will be God. God is not a man that he should lie. So, when he promises you something, he will see it through.
“It has been almost 11 years I’ve been here. I did my job to the best of my ability, but like I said, God is not a man that he should lie. God is God, and we thank him.”
Also, in a statement issued by Bolouere Opukiri, her representative, Alison-Madueke said “a decade of unrelenting and unjust vilification, condemnation, and scrutiny has finally concluded.
“I give thanks to Almighty God for His faithfulness and for the complete vindication I have received. I am grateful to my legal counsel for their diligence and to my family and friends for their steadfast support and encouragement throughout this period. I am profoundly relieved. My name has been cleared, and this ordeal has come to an end.”
Allison-Madueke said she would speak about the events of the past decade and her future plans “in due course” but, in the meantime, would focus on embracing what she described as the freedom she had been unjustly denied for many years.
Nigeria is sure to witness an impending doomsday sooner than later if the Federal government fails to take definite and decisive steps to arrest the current parlous state of the nation’s medical system.
Association of Medical Doctors (ARD), which dropped the warning, cited how Nigeria currently boasts of just 55,000 doctors to serve a population of more than 220 million people, warning that with the current paucity in its healthcare system, an impending doomsday was only a matter of time.
The doctors, who raised the alarm at the Ordinary General Meeting and Scientific Conference of the association, held at the Federal Neuropsychiatric Hospital (FNPH), Yaba, Lagos, the doctors, among whom were mental health experts, also said the present situation was worsening access to psychiatric care and leaving millions of vulnerable Nigerians untreated.
Citing no fewer than 16,000 Nigerian doctors, who have emigrated in the last five years, had worsened an already dire manpower shortage in the country’s health sector, they warned that the sustained exodus of healthcare workers under the “Japa” syndrome had severely depleted the country’s mental health workforce, widened treatment gaps, increased the cost of care and placed enormous pressure on the few specialists remaining in the system.
Vanguard quoted Omoti Ernest, President of Nigerian Medical Association (NMA), as saying that recent data showed that the Medical and Dental Council of Nigeria (MDCN), had registered over 130,000 doctors but noted only about 55,000 are actively practicing within Nigeria.
Stressing that with a population exceeding 220 million, this translated to roughly one doctor for every 3,600 to 4,000 people, he added: “This ratio is far below the World Health Organisation’s recommended threshold of one doctor to about 600 people, highlighting the significant shortage of medical personnel and the strain on healthcare delivery.
“Many Nigerian-trained doctors have emigrated or are no longer engaged in active clinical practice, contributing to the country’s healthcare workforce shortage. The emigration of skilled professionals in search of better opportunities abroad has had a significant impact on Nigeria’s hospitals and healthcare workforce.
“Thousands of doctors and other healthcare professionals have left the country in recent years, leading to severe staff shortages, increased workload for those who remain with many suffering from burnout, longer waiting times for patients, and declining quality of care in many public hospitals.
“Rural and under-served communities have been particularly affected, as they already struggle with limited access to healthcare services. ’The reasons behind this migration include poor remuneration, inadequate working conditions, insecurity, limited opportunities for career advancement, and insufficient investment in healthcare infrastructure, among others.
“Many professionals are attracted by better pay, improved facilities, and more stable environments in countries such as the United Kingdom, Canada, and the United States.”
‘What can be done’
To address the trend, he said the Federal Government should prioritise salaries and welfare packages for healthcare workers, invest more in modern medical equipment and hospital infrastructure, expand residency and specialist training opportunities, and create clear career progression pathways.
“Strengthening security, ensuring timely payment of wages, and providing incentives for professionals to work in under-served areas will also help retain talent. ’In addition, partnerships with the private sector and diaspora engagement programmes could encourage Nigerian healthcare professionals abroad to contribute their expertise and support development of the country’s healthcare system.”
Yesir Kareem, a Consultant Psychiatrist at the Neuropsychiatric Hospital, Aro, also lamented how Nigeria’s doctor-to-patient ratio had fallen to about one doctor for more than 10,000 patients, far below the World Health Organisation’s recommended ratio of one doctor to 600 people.
The consequences, he argued were particularly devastating for mental healthcare, he said, adding: Only about 55,000 doctors remain to serve a population of over 220 million Nigerians. More than 40 million Nigerians suffer from mental health disorders, yet about 85 per cent of them do not have access to mental healthcare services,” Kareem said.
He noted that Nigeria’s shortage of psychiatrists and other mental health specialists has reached alarming levels, warning that untreated mental illnesses contribute to family breakdowns, substance abuse, unemployment, delayed diagnosis and premature deaths.
“The economic consequences are equally devastating, with billions of dollars lost annually due to untreated mental health conditions. Over 94,000 doctors and nurses have left Nigeria since the Japa syndrome started some years ago due to poor remuneration and delayed salaries, competitive salaries in destination countries, overwhelming patient loads (1:10,000+), better work-life balance and conditions, and inadequate medical equipment & facilities.
He listed access to modern medical technology, limited career advancement opportunities, professional development and training, unsafe working conditions and long hours, unstable political and economic environment and insecurity and socioeconomic instability as factors encouraging migration of doctors from the country.
Vanguard, also quoted Veronica Nyamali, President of the Association of Psychiatrists in Nigeria (APN) as saying that the manpower shortage was a crisis that had forced consultants to abandon higher-level responsibilities, such as research and specialist care, in order to fill gaps left by departing doctors.
She said: “There are gaps everywhere. Work that should be done by four psychiatrists is now being handled by one or two people. Consultants are increasingly forced to work at lower levels because the doctors they are supposed to supervise are no longer there.
“Those we train are leaving. Junior registrars, senior registrars, many complete their examinations and return abroad. The result is that we have shortages at every level of care. Nigeria has less than 150 psychiatrists. The dwindling number of specialists is making mental healthcare increasingly expensive and inaccessible, especially for patients in rural communities where psychiatrists are virtually non-existent.
“When specialists become scarce, services become more expensive. Access becomes difficult because patients must travel long distances to find care. This is contrary to the principle of universal health coverage, where mental health services should be available, affordable and accessible to everyone.
Lagos State Police Command, has thrown a security cordon around university communities in the state to prevent any form of mishap as a result of recent concerns that they could come under attack.
On Wednesday, Olohundare Jimoh, Lagos State Commissioner of Police, gave the hint while conducting an on-the-spot security assessment at Pan-Atlantic University, Lekki, following the circulation of a viral video showing two masked individuals emerging from a forest area adjoining the institution.
The visit, carried out alongside operational personnel of the command, was part of efforts to evaluate the security situation around the university and reassure students, staff and parents of measures being taken to ensure their safety.
The police boss, in a meeting with the university’s management while stressing the need to continually strengthen the institution’s security architecture to forestall potential threats, also advised on practical steps to enhance security within and around the campus, cautioning against actions that could inadvertently weaken existing security structures.
Emphasising the importance of adopting proactive security measures, particularly in the areas of perimeter protection, access control and collaboration with relevant security agencies, he said as part of efforts to boost security operations in the area, the Lagos State Security Trust Fund (LSSTF), had deployed surveillance drones to support law enforcement activities around the university and neighbouring communities.
The measure facilitated by the Lagos State Government, is expected to enhance aerial surveillance, intelligence gathering and crime-prevention efforts within the axis, he said stating that the command was fully committed to protecting lives and property across the state.
He assured the management, staff, students and parents of Pan-Atlantic University of the police’s readiness to respond swiftly to security concerns and maintain a safe environment conducive to learning and other lawful activities, urging the institution to sustain close collaboration with security agencies and remain vigilant in addressing emerging security challenges.
“The Command remains committed to the protection of lives and property across Lagos State. The university community must support security efforts by promptly reporting suspicious activities. We are resolved to maintain peace, public safety and security across the state. We urge residents to remain security-conscious and provide credible, timely information to law enforcement agencies. Residents are also encouraged to make use of the Command’s emergency lines to report security-related incidents and suspicious movements.
The assessment followed heightened public concern generated by the viral video, with authorities moving swiftly to reassure the public and strengthen surveillance around the institution and its environs.
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