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How Buhari Ignored Nigerian Governors’ Warning About Six Pitfalls In Petroleum Act

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They described the law as a recipe for disaster.

The Nigerian Governors’ Forum has picked at least six holes in the Petroleum Industry Act signed by President Muhammad Buhari on Monday.

They described the law as a recipe for disaster.

According to Nation, the governors identified six unfavourable areas in an August 10 letter to the President.

They pleaded with him to withhold his assent to enable the National Assembly take another look at the Bill along the lines of their observations.

The letter was signed on their behalf by Chairman of the Nigeria Governors’ Forum (NGF), EKiti State Governor Kayode Fayemi.

The identified pitfalls, according to the governors are in Sections 9(4) and (5); 33; 53(2), (3); (4); 54 (1) and (2);  55 (1); and  64(c).

Despite the request for a stay of action, President Buhari got the advice to sign the Bill on his return from the United Kingdom at the weekend.

He signed the Bill while observing self-isolation on Monday.

The issues the governors raised include; The law will deny states their fair share from the Federation Account because it favours the Federal Government and the Nigerian National Petroleum Corporation (NNPC), which will transform to a limited liability company.

The governors, who nevertheless hailed the law as good for the oil and gas sector, are unhappy about the provisions for the incorporation of NNPC Limited under the Companies and Allied Matters Act.

They said rather than reforming the sector, the Petroleum Industry Act has made the NNPC Limited a more powerful oil company.

They faulted the removal of the requirement to transfer payments into the Federation Account as unconstitutional.

The letter by the governors, reads in part: “We note with great shock and displeasure that the interests of the sub-nationals were not put into consideration in the bill that was recently passed by both chambers of the National Assembly.

“In a previous communication with the leadership of the National Assembly, we had noted that Section 53 of the Bill provided for the incorporation of the Nigerian National Petroleum Company Limited (NNPC Limited) under the Companies and Allied Matters Act to carry out petroleum operations on a commercial basis.

“The said Section 53 in (2) went on to provide for consultations between the  Ministers of Petroleum  and  Finance  on  the  number  and nominal value of the shares to be allotted which “shall form the  initial paid-up capital” of NNPC  Limited and further added that the Company shall subscribe and pay cash for the shares.

“In our said letter, we observed that the  wording  of (3) suggested  that  only the  Federal Government would have shares in this company and stated that ownership of all the shares in  the  company  shall  be vested  in  Government  and  held  by the  Ministry  of Finance on behalf of Government.

“This sub-section is silent on what Government it referred to, but an inference could clearly be made by the express mention of the Ministry of Finance as the sole custodian of the shares.

“We then recommended that a framework that accommodates the states be worked out  and  included in the  allotment of shares  and  incorporation of NNPC Limited. We observed that excluding states from this arrangement precluded them from having  a voice in the running and administration of the company  and excludes them from sharing in the distribution of dividends when they become due.

“In  the  same   vein,   Section   53  (4)  of the  Bill  provides  that  the  Ministry  of  Finance Incorporated in consultation with the Government, may increase the equity capital of NNPC Limited. Here again, we note the non-inclusion of sub-nationals in the consideration of this very important provision and recommend that the Nigerian Sovereign Investment Authority (NSIA) and Central Bank of Nigeria in consultation  with the Federation Governments and Federal Capital Territory, may from time to time increase the equity of NNPC Plc.”

The governors raised some fundamental issues bordering on the removal  of the  requirement to transfer fiscal payments to the  Federation Account; 30%  profit  oil and  gas as Frontier  Exploration  Funds; and the  imposition of gas  flare  penalties.

They said rather than reforming, the Petroleum Industry Act has made NNPC Limited a more powerful oil company.

“We  do  not  believe  that  in  passing  this  Bill,  the  National  Assembly   gave  adequate consideration to every relevant facet of our federation, and this can be a recipe for disaster.

“The afore-mentioned concerns represent some of the many pitfalls in this Bill capable of hurting the federation and we respectfully pray Mr.  President to withhold assent pending the resolution of all the thorny areas,” the governors said.

Culled from the Sahara Reporters

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Nigeria: chibok abduction anniversary spurs demands for justice

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Militants, alongside relatives of victims of the infamous abduction of the Chibok schoolgirls that sparked global outrage in 2014, gathered in Lagos on Sunday, April 14, to renew calls for the release of the remaining girls in captivity.

The Sunday meeting was organized to mark the 10th anniversary of the abduction that affected 276 schoolgirls from the Government Girls Secondary School in Chibok, Borno State, northeastern Nigeria.

“What I would ask the government is to find a way to work towards bringing back our sisters because I know it is only the government that can help us bring back these girls,” said Grace Dauda, a rescued Chibok schoolgirl.

Another rescued schoolgirl, Rebecca Malu, added, “They should stay safe. They should stay strong, one day, they will be released like us.”

While some girls managed to escape on their own, others have been freed over the years through intense campaigns by civil society organizations and government negotiations. But this human rights activist, Ayo Obe, is calling for more action from the authorities.

“We know that we started with missing persons numbering two hundred and fifty-six; it is already an improvement that we are down to 91. But of course, 91 is 91 lives unaccounted for. We appreciate the fact that so many of them escaped during the abduction itself. We appreciate the fact that the government has brought back so many more of them, but we say that we don’t stop here. We need the momentum that has happened since the mass return during the Buhari administration in 2016-2017 to be maintained. We expected that the remaining girls would have been brought back,” she said.

Mass school children kidnapping in Nigeria has continued nearly unabated since Chibok. Around 1,700 students have been kidnapped in raids since 2014 according to Amnesty International.

A member of the Bring Back Our Girls movement and convener of the 10th-year anniversary in Lagos, Opeyemi Adamolekun, lamented this as unfortunate.

“Unfortunately, it became political between 2014 and 2015, part of the amplification of the movement was part of the 2015 presidential campaign. And we saw the effect of the first batch of 21 that were released with the help of the Red Cross and the Swiss government. The second batch of 82 that were released with the help of the Red Cross and the Swiss government as well. But unfortunately, it seems that energy sort of dissipated because the government doesn’t feel as much pressure as they used to feel,” she said.

For this group of Nigerians, the government must match words with more action to stem the tide of mass school kidnappings in the country.

According to the Murtala Muhammed Foundation, a charity that advocates for the Chibok schoolgirls, about 90 girls still remain in captivity while dozens of the schoolgirls freed over the years are living inside a military-run rehabilitation camp with surrendered Boko Haram fighters they married in the Sambisa forest, Boko Haram’s main hideout.

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Nigeria suspends permit of 3 private jet operators

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Nigeria’s Civil Aviation Authority (NCAA) has taken action against private jet operators flouting regulations by suspending the Permit for Non-Commercial Flights (PNCF) of three operators caught conducting commercial flights.

This crackdown follows warnings issued in March 2024.

Acting Director General Capt. Chris Najomo stated that increased surveillance at Nigerian airports led to the grounding of three operators found violating their PNCF terms. Specifically, they breached annexure provisions and Part 9114 of the Nigeria Civil Aviation Regulations 2023.

In response, the NCAA announced a thorough re-evaluation of all PNCF holders to ensure compliance with regulations, to be completed by April 19th, 2024. PNCF holders have been instructed to submit necessary documents within 72 hours to expedite the process. Najomo emphasized these actions highlight the NCAA’s commitment to enhancing safety in Nigerian airspace.

Furthermore, the NCAA warned the public against using charter operators without a valid Air Operators Certificate and urged legitimate industry players to report any suspicious activities promptly.

This crackdown comes after the NCAA’s stern warning in March against PNCF holders engaging in commercial operations.

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Senator Cory Booker Leads a Congressional Delegation to Nigeria

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Photo: Senator Cory Booker (In the back) and a Diplomat from the US Department of State, joins with members of the Academy for Women Alumnae Association including Mercy Ogori of Kokomi Africa and Adebisi Odeleye of Moore Organics.

Senator Cory also met women entrepreneurs from the Academy for Women Alumnae Association

Last week, US Senator Cory Booker from New Jersey led a congressional delegation to Nigeria, which included House of Representatives members Sara Jacobs and Barbara Lee from California. The purpose of the visit was to discuss a partnership on sustainable development. During the talks, Nigerian President Bola Tinubu expressed his administration’s dedication to strengthening democracy through upholding the rule of law and ensuring good governance, justice, and fairness for all citizens. Senator Booker emphasized the shared values of democracy, the rule of law, and commitment to peace and good governance that bind Nigeria and the United States as partners.

The delegation also met with women entrepreneurs from the Academy for Women Alumnae Association, who had participated in US-sponsored exchange programs. Led by Adebisi Odeleye of Moore Organics, the businesswomen shared their experiences and discussed their entrepreneurial endeavors. Other Academy members were Mandela Washington Fellow, Nkem Okocha of Mama Moni, Inemesit Dike of LegalX, and Mercy Ogori of Kokomi.

The partnership between the United States and Nigeria has lasted over six decades, focusing on addressing security challenges, enhancing health security, and responding to global health crises. Despite obstacles like corruption, poverty, and insecurity, the US remains dedicated to supporting Nigerian institutions and promoting free, fair, transparent, and peaceful elections.

During the visit to the State House, Senator Booker reiterated the shared values of democracy, the rule of law, and commitment to peace and good governance that unite Nigeria and the United States as partners.

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