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Kogi becomes Oil Producing State

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Kogi State in the North Central Nigeria has officially joined the Oil Producing States.

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A State of about 8 million people has oil and gas deposit in Ibaji Local Government Council in the Eastern Senatorial flank.

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In a letter dated 24th August, 2021, with Ref. No. RMC/COD/58/VOL/1/4 which was issued by the Revenue Mobilisation and Fiscal Commission (RMFC) and signed by the Secretary to the Commission, Mr. M.B. Yusuf conveyed approval, stating what the State would stand to benefit financially when the identified oil wells begins operation.

Kogi State which was officially declared as an oil producing State at the 139th plenary session of the Commission even before the official request by Kogi State governor, Alhaji Yahaya Bello in a letter dated 10th August, 2021 stated among other things that the 13% derivation fund would be paid to the State government as soon as proceeds from its oil wells wlere being generated.

The Commission further noted that 13% derivation fund from other disputable oil wells will be shared 50-50 between Kogi and Anambra States pending the final delineation by the National Boundaries Commission (NBC).

Part of the letter which was obtained by CAPITAL POST on Wednesday read:

“I wish to refer to your letter dated 10th August, 2021 on the above subject matter and to inform you that the Commission at its 139th plenary held on 27th July, 2021 approved the attribution of Oda River Oil well 1 to Kogi State

“Furthermore the Commission approved the attribution of Anambra 1, 2 and 3 oil wells on a 50-50 percentage basis between Anambra and Kogi States pending the final delineation of the boundary between the two States.

“Accordingly the State will start to benefit from the 13% derivation fund as soon as proceeds from the operation in Oda River 1 oil well or Anambra 1, 2 and 3 oil wells started contributing revenue into the Federal Account.

Kogi State is the first northern State out of 19 that has joined the Oil the States in Nigeria.

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Oil and Gas

NIES 2025: NLNG says energy security should be a priority

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The Nigeria Liquefied Gas on Friday called for energy security to be made a national priority through proactive measure in a manner that the infrastructure and critical assets are protected for the sustainable growth of the oil and gas industry.

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Speaking at a panel session titled “Driving Cross-Continental Investments: Scaling Africa’s Energy Frontier” at the 8th Nigeria International Energy Summit (NIES), the Managing Director/Chief Executive Officer of NLNG, Philip Mshelbila stated that there were growing concerns over gas infrastructure security, stressing that while improvements have been recorded in securing oil assets, that gas infrastructure remains vulnerable, and without adequate protection which will lead to underperformance in the industry.

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Mshelbina stated that NLNG was focused on boosting both domestic and regional energy access, adding that the company was making smaller-scale investments to retain more gas for local consumption. He noted that a major step in this direction was NLNG’s decision to domesticate 100% of its Liquefied Petroleum Gas (LPG) supply for the Nigerian market.

Beyond the domestic market, Mshelbila remarked that the Company was also working towards enhancing regional energy security. He revealed that, as part of the Train 7 project, the company was constructing a third jetty to support small-scale vessels in supplying gas across Africa’s coastal markets.

Additionally, he said the company was supporting the Federal Government of Nigeria (FGN) in connecting Bonny Island to the mainland to facilitate LPG trucking, thereby strengthening domestic gas distribution. This initiative is expected to boost West Africa’s energy distribution network, positioning NLNG as a key player in the region’s energy landscape, he noted.

Mshelbila also emphasised the need for clear and consistent regulatory frameworks to attract long-term investments.

Through proactive methane reduction, low-carbon innovations, and impactful social initiatives, Mshelbila remarked that NLNG’s commitment to local content and sustainability aligned with global energy transition priorities, stating that NLNG was building investor confidence and demonstrating long-term value.

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$200 billion required to be injected into development of gas infrastructure – NEITI

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The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, NEITI, Dr. Orji Ogbonnaya Orji has said, the sum of $200 billion is needed to be injected into Nigeria’s gas infrastructure for its development and maximization of the natural resources as the ninth largest gas producer in the world as number one in Africa.

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He pointed this out in the 2021 – 2023 reports on Oil, Gas and Solid Minerals presented to the Public Accounts Committee chaired by Senator Aliyu Wadada Ahmed, saying the required infrastructure for maximization of gas resources in the country are not there.

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He said, there was need for the injection of $20 billion yearly into gas infrastructure for a period of ten years for construction of gas pipelines along and across West African sub-region, and beyond which is a huge expenditure”, he said.

Orji said: “In Nigeria, what we need, is to invest in gas infrastructure to evacuate gas as our study shows that we need an initial investment of $20 billion annually for 10 years to be able to generate the kind of gas infrastructure required to provide gas for the whole of Africa and beyond.

A member of Senate Committee on Public Accounts, Senator Abdul Ningi asked, “what NEITI is doing on alleged $8.5billion unremitted into the consolidated revenue fund by Nigerian National Petroleum Company Limited, Federal Inland Revenue Service and Nigerian Upstream Petroleum Regulatory Commission in 2023”, the NEITI boss said the Economic and Financial Crime Commission, EFCC , is already probing the agencies involved.

Senate panel were further irked by the submission in the NEITI’s report that less than 1% of solid minerals is remitted into Federal Government’s Consolidated Revenue Fund account.

Chairman of Senate Committee on Public Accounts, speaking on remittances of Solid Minerals into the Consolidated Revenue Fund decried the less than 1% contribution of proceeds from the sector on yearly basis.

Other members were unanimous that, NEITI’s report on solid minerals, is not reflective of what is going on in the solid mineral sector.

They wondered why only States like Ogun, Osun, Kogi, Edo, Ebonyi, Rivers, Cross Rivers and FCT, were mentioned in the report excluding Nasarawa , Zamfara , Kebbi , Plateau, Bauchi etc .

Specifically the Chairman of the Committee, Senator Wadada described the less than one 1% contribution of solid minerals to GDP as quite ridiculous and unacceptable.

“This definitely must not continue, there must be complete overhaul of the sector “, he said

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Niger Tanker Explosion: NUPENG urges government to repair roads, senditise citizens on danger of fuel scooping

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The national secretariat of the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has urged the Federal Government to repair roads to avert tanker tragedies across the country.

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NUPENG made the call in reaction to the recent tragic tanker explosion in Suleja, Niger State.

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A statement jointly signed by Williams Akporeha and Olawale Afolabi, respectively, President and General Secretary stated that the union was “deeply saddened by the loss of lives, the destruction of properties, and the injuries sustained by many in this devastating incident.”

The statement, issued to newsmen in Abuja on Sunday, also appealed to the Federal Government to urgently address the poor condition of federal roads.

The statement read in part: “The Union takes this opportunity to urgently appeal to the Federal Government to repair bad roads to prevent such incidents and to intensify efforts in sensitising the public about the dangers of scooping fuel from petroleum truck accidents.

“Our thoughts and prayers are with the victims and their loved ones during this traumatic and challenging time.”

NUPENG further sppealed to the Federal Government to take urgent steps to repair federal roads which it noted were in bad shape.

It also tasked the Federal Government to mandate its relevant agencies to seize the initiative towards sensitising Nigerians on the danger of scooping fuel from scenes of petrol tanker accidents.

The statement further reads in part:”The Union takes this opportunity to urgently appeal to the Federal government to repazir bad roads to prevent such incidents and to intensify efforts in sensitizing the public about the dangers of scooping fuel from accidental situations of petroleum trucks on highways.

“As a responsible organization, NUPENG collaborates annually with relevant agencies, including the Federal Road Safety Corps, the Police, and State Traffic Management agencies, to train our drivers on road safety. The Union is committed to continuously training and retraining our members on best driving and safety practices.

“We stand in solidarity with the affected families and the entire Dikko community in Niger State. We commend the emergency responders who bravely extinguished the fire and rescued many injured victims.

“We urge all relevant authorities to provide the necessary support and medical care to those injured and to take measures to prevent future tragedies.

“May the souls of the departed rest in peace, and may their families find the strength to bear these irreparable losses.”

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