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NABDA, firm collaborate to produce bio-pesticides, others

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The National Biotechnology Development Agency (NABDA) has signed a Memorandum of Understanding (MoU) with Biocrops Nigeria Ltd, to produce bio-pesticides, nematocides and bio-fertilisers.

Prof. Alex Akpa
Prof. Alex Akpa

The Director-General of NABDA, Prof. Alex Akpa, who disclosed this to newsmen in Abuja, said the partnership also focused on propagation of different biotechnology crops to enhance the nation’s food security.

“Under the MoU, our scientists and theirs will collaborate to massively expand our horizon, to produce bio-pesticides, nematicides and bio-fertilisers.

“With this partnership, we hope to propagate in commercial level hundreds of thousands and if not millions of plantlets covering cassava, yam, plantain and banana, among others.

“This is why the Ministry of Budget and National Planning is interested in this project, which they are part of,’’ Akpa said.

He explained that bio-pesticides and bio-nematicides would prevent a situation where farmers, out of desperation, use harmful chemicals like sniper to preserve farm produce.

He also said bio-fertilisers would reduce the effects of chemical fertilisers on the soil, saying: “They are biodegradable and ecosystem-friendly without adverse effects on human health”.

The NABDA boss also commented on the formal presentation of the BT cowpea by the National Biosafety Management Agency.

He noted that the improvement of the cowpea through biotechnology was very cogent to food security, as it was a very important source of protein and also a major staple food.

According to Akpa, the improved BT cowpea is resistant to Maruka which is a pest that wrecks devastating havocs on cowpea plantation.

He added that it reduces the rate of chemical herbicide and pesticides from nine times to once through out a farming season.

Reduction in the use of chemical herbicides and pesticides, he explained further, would reduce environmental degradation, adverse effect of the chemicals on human and the expenses of farmers during production.

The NABDA DG also disclosed that plans had been concluded to bring in Cuban scientists to start local production of vaccines and bio-pharmaceuticals like insulin, among others.

By Philomina Attah

2019: Quantity surveyor canvasses conducive environment for private sector housing

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The Vice-President, Nigerian Institute of Quantity Surveyors (NIQS), Mr Olayemi Shonubi, has appealed to the Federal Government to provide an enabling environment for the private sector housing to thrive in 2019.

Obafemi Onashile
Obafemi Onashile, NIQS President

Shonubi made the appeal while speaking with the News Agency of Nigeria (NAN) on Friday, December 28, 2018 in Lagos.

He noted that the performance of the sector had been poor and below expectation in 2018, saying that government should allow the private sector to drive the housing construction sector.

According to him, such move would ensure maximum provisions to curb housing deficit in the country.

He said all government needed was to provide the enabling environment and other necessities, that would aid the operations of the private housing developers.

Shonubi attributed the country housing deficit to lack of full participation of the private sector in housing delivery.

“Government alone cannot provide the needed houses for the country. It needs full participation of the private sector, through a well-programmed Public-Private Partnership (PPP) scheme.

“This implies leaving housing delivery in the hands of the private sector while government provides the necessary conducive environment,” the NIQS chief said.

Shonubi was optimistic that the active participation of the private sector in housing delivery would have a positive impact on the country’s housing situation.

He noted that for the PPP programme to yield positive result in addressing the nation housing needs, the government needed to go beyond the provision of land and policy frameworks.

According to him, the government needs to grant incentives to private housing developers.

“Examples of such incentives are import duty waivers on building materials, provision of infrastructure and credit facilities through effective mortgage system, tax relief, among others.

“Introduction of realistic building regulations and the removal of restrictive legislation, such as the Land Use Act of 1978, could guarantee a conducive atmosphere for the private sector to operate.”

Shonubi noted that some construction works required lucrative machines too expensive to afford by the local and private operators.

“What makes foreign operators and contractors seem to be more competent is because they have the financial capacity to secure all kinds of expensive machinery that facilitate construction works.

“The indigenous private operators need government empowerment to effectively operate.”

By Lilian Okoro

Open defecation: Fayemi declares emergency in water sector

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Gov. Kayode Fayemi of Ekiti State on Thursday, December 27, 2018 declared emergency in the water sector to ensure water supply to all nooks and crannies of the state.

Dr. Kayode Fayemi
Governor of Ekiti State, Dr. Kayode Fayemi

He made the declaration in Ikun Ekiti, Moba Local Government Area of the state, where he had gone to kick-start the turn around water rehabilitation project at Ero Dam to supply water to many major towns in the state.

The governor consequently promised to take legal and institutional steps to also make the state open defecation free before 2030.

He said it was in a bid to reduce the level of water borne diseases in Ekiti and make the commodity available to residents that he declared the emergency in water sector.

According to him, the people must be saved from preventable Illnesses through provision of potable water.

He clarified that the emergency was in line with the step taken by President Muhammadu Buhari.

Buhari had initiated similar policy under a programme called Water Supply Sanitation and Hygiene (WASH) in partnership with the World Bank.

The project, which will gulp $55 million, was awarded to Sagittarius Henan Engineering and is to be completed within 18 months.

The governor said the WASH programme of the Federal Government and World Bank was initiated to reduce amount being paid by Nigerians on hospital bills after contacting all forms of diseases from unhygienic water sources.

Fayemi said statistics had shown that water supply to urban cities and rural areas in the country had reduced by 15 and four per cent respectively, despite geometric increase in the population.

The governor added that the state had already paid N700 million counterpart fund to complete the project that was approved by the world bank in 2014.

“It was because of the safety of the citizens that the Federal Government declared emergency in WASH. So, Ekiti has keyed into the programme with this project.

“Ekiti was ranked second in Nigeria as a state that practised open defecation. We shall put up institutional and legal frameworks to ensure Ekiti is open defecation free before 2030

“Part of what accounted for this high practice was because of low water supply to our homes

“We are making our traditional rulers as champions that would canvass for open defecation-free and if we are going to stop our palaces from digging boreholes here and there, we as government should provide water to our people.

“We have done our feasibility studies, 85 per cent of our water in Ekiti shall be provided by Ero and Egbe dams if they operate at optimal capacity,” he said.

The governor assured that affordable tariff would be charged by government and that such would be metred to prevent extortion.

The Permanent Secretary, Ministry of Public Utilities, Mr Olumide Ajayi, said rehabilitation on Egbe Dam located in Gbonyin Local Government was also being co-financed by European Union and Ekiti State.

Ajayi said the two projects would supply water to over 66 towns across nine local government areas in the state.

He urged the beneficiaries to be ready to pay affordable tariffs and maintain the facilities when completed.

The General Manager, Ekiti State Water Corporation, Mr Olabisi Agbeyo, revealed that this was the first time a major rehabilitation would be carried out on Ero Dam in 33 years.

“As we speak, Ekiti is not owing a kobo as counterpart payment; we have paid up and this shows how committed the state was in water supply,” Agbeyo said.

By Ariwodola Idowu

Government proposes N40m for Onuiyi-Nsukka erosion control

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The Senator representing Enugu North Senatorial District, Chukwuka Utazi, said on Thursday, December 27, 2018 that N40 million had been proposed in the 2019 budget for the control of erosion at Onuiyi-Nsukka in Enugu State.

erosion
A gully erosion site

Utazi, who disclosed this in an interview with the News Agency of Nigeria (NAN) at Nsukka, said the proposal was to ensure that the erosion problem in the community was solved permanently.

The late Dr Nnamdi Azikiwe, first President of Nigeria, lived in his Onuiyi Haven, few metres to a very deep erosion gully in the area, until he died in 1994.

“As senator representing Enugu North, I made a case for it because of the danger posed by the gully erosion in that area. Some buildings within the area have collapsed, and farmlands washed away.

“The erosion at Onuiyi-Nsukka has caused havoc especially during rainy season. I am happy money has been budgeted for it,” he said.

He said that N70 million was also proposed in the Federal Government budget for the take-off of a police station and barracks at Nkpologu, Uzowani Local Government Area of the state.

The senator noted that the measure was to checkmate series of robberies and kidnapping that frequently occurred along the Nsukka-Adani road.

“The N70 million is for the take-off since the amount cannot be enough to build a station and barracks.

“The money is for clearing of the area, fencing it and doing some other things the amount can accommodate.

“For some time now, robbers and kidnappers have been terrorising drivers, passengers and other road users on Nsukka-Adani Road.

“The presence of a police station and barracks in that area will stop the inhuman acts of these criminals and hoodlums.

“My greatest concern as senator representing the district is to ensure that lives and property in the area are safe and protected,” he said.

Utazi also said that, at present, the Adani Rice Market and farms were receiving serious attention as the roads leading to them were under construction by the federal government.

According to the senator, other infrastructure in the market and farms were being upgraded for better performance.

Utazi said he sponsored a motion in the senate over the deplorable state of the 9th Mile Corner-Makurdi road and government awarded contract for its dualisation at the cost of N5.4 billion.

“That 9th Mile-Makurdi road is very important since it’s the only link road between the North and the South-East and South-South,” he added.

He urged politicians to put the interest of the country first in their campaigns for the 2019 general elections by avoiding actions and utterances capable of overheating the polity.

“Politicians and political parties in their electioneering campaigns should go straight and tell Nigerians what they can do if voted to power rather than blackmailing and assassinating the images of their political opponents

“We should avoid hate speech as well as tribal and religious sentiments just to achieve cheap popularity.

“If politicians, INEC officials and security agencies play according to rules of engagements, the 2019 general elections will be credible, free and fair,” he said.

The Chairman, Senate Committee on Anti-corruption and other Financial Crimes, expressed satisfaction with the performance of the Governor of Enugu state, Ifeanyi Ugwuanyi.

He said the governor had massively developed infrastructure and ensured regular payment of salaries in the state in spite of lean resources at his disposal.

“The governor has done well in his first tenure and should be voted for the second term in 2019,” he said

By Hilary Akalugwu

Agency’s lab will checkmate risks of GMOs – D-G

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The National Biosafety Management Agency (NBMA) says it has a state-of-the-art genetic modification detection and analysis laboratory to checkmate any risks associated with the technology.

Dr Rufus Ebegba
Dr Rufus Ebegba

Dr Rufus Ebegba, the Director-General of the agency, made this known in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday, December 27, 2018.

“Our agency is able to test, analyse and carry out proper risk assessment on Genetically Modified Organisms (GMOs) before they are approved for release into the market.

“Biotechnology is basically the use of living systems or materials from living organisms to modify other organisms, in order to move a gene of interest from one organism to another one, both related and unrelated, for you to achieve a particular desire.

“It is not necessarily creating a new organism but altering it in a way that you achieve a desired interest and there is no technology in the world that can be said to be 100 per cent safe.

“The proponents of this technology saw the need for an agreement to ensure that there is holistic bio safety before the product of genetic engineering can be used for planting, processing, or for any purpose.

“So, it simply means that it needs measures and procedures to ensure that its activities and the use of genetically modified organisms, do not have any adverse effects on the environment and human health,” he said.

Ebegba added that the agency also considered the potential adverse impacts that biosafety should prevent or minimise during risk analysis.

“When we talk about the issue of potential risk in biosafety or GMO, we are looking at the impact of GMO on the environment.

“Will the super organisms with which these organisms have been modified become invasive, more dominant, replace the ecosystem, or affect the ecosystem adversely?

“We look at the issue of genetically modified third party that is how to resist a particular pest so that it would not affect other organisms.

“Then we also look at it from the human front. Will these genetically modified organisms become toxic, affect humans negatively and cause health problems and allergies?

“These are the things we look out for to ensure that no GMO that will cause any adverse impacts will be allowed. We only allow those that after rigorous risk assessment, we considered safe. These we will grant permit for.

“If they are not safe, we won’t grant permit for them,’’ the NBMA director-general said.

He added that his agency also looked at issues of socio-economic concern in GMOs.

“We look at the issue of socio-economic concern to know whether these products are going to be socially compatible with our social norms.’’

Ebegba urged Nigerians to trust government decisions as government had put measures in place to ensure that human health and the environment were safe.

By Ebere Agozie

Nigeria leads West African sub-region on biosafety

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The Director General of the National Biosafety Management Agency (NBMA), Dr Rufus Ebegba, has said that Nigeria has been mandated to lead the West African sub-region on biosafety.

Dr Rufus Ebegba
Dr Rufus Ebegba

Dr Ebegba, who made the submission while presenting the agency’s score card to the public in Abuja on Friday, December 21, 2018 said It is gratifying to note that, within the short period of the existence of the NBMA under President Muhammed Buhari’s leadership, the agency has recorded tremendous growth and progress to be given positions of responsibilities on the sub-continent.

“NBMA has provided for the first time a haven for the practice of modern biotechnology, its application and use in Nigeria. Nigeria can now raise its head among nations as a country ready to appropriately key into the use of safe modern technology, a critical factor for economic development.”

The DG said in the last three years the agency has been able to gevelop and review its operational instruments for effective implementation of the NBMA Act 2015 and the ease of doing business within related sectors.

“At present, the agency has trained officers through short Biosafety courses both nationally and internationally and sometimes to masters degree level. With the establishment of the agency, our universities and research institutes now have confidence to carry out biotechnology researches expected to increase agricultural productivity as well as contribute to food security in Nigeria.

“This is line with the Green Alternative Agenda of the Federal Government and the Sustainable Development Goals of the UN. Our Food and Feed Industries are assured of availability and safe raw materials for their industries, our farmers’ earning ability greatly increases as they experience reduction in agricultural losses as a result of pest and diseases, increase productivity as well as reduction in health problems related to use of chemicals,” he said.

Dr Ebegba said that, in furtherance to the agency’s collaborative drive, it initiated and signed MoUs with National Agency for Food and Drug Administration and Control (NAFDAC), National Agricultural Seed Council (NASC), and National Varietal Release Committee (NVRC), Nigeria Agricultural Quarantine Service (NAQS), and Standard Organisation of Nigeria (SON).

He said the agency is in the process of signing an MoU with Nigeria Customs Service (NCS) Veterinary Pest Control Services Department of the Federal Ministry of Agriculture and Rural Development.

The DG also noted that the agency has engaged in various sensitisation efforts via the media and other programmes in other to educate the public on its activities and mandate. He added that, courtesy of its state-of-the-art GM detection and analysis laboratory, the agency is able to test, analyse and carry out proper risk assessment on genetically modified organisms before they are approved for release into the market.

“Upon meeting the requirements set forth for the accreditation of Institutions, the NBMA accredited some institutions to carry out biotechnology activities. These are: Federal University of Technology, (FUTA), Akure; Institute for Agricultural Research, (IAR), Zaria; International Institute of Tropical Agriculture (IITA), Ibadan; National Biotechnology Development Agency (NABDA), Abuja; National Cereals Research Institute (NCRI), Badeggi; and the National Root Crops Research Institute, (NRCRI), Umudike.

He added that the agency has certified containment facilities for bio-fortified cassava enhanced with pro-vitamin A (concluded) at National Root Crops Research Institute, Umudike; bio-fortified cassava enhanced with Iron (concluded) at the National Root Crops Research Institute, Umudike; GM Cassava resistant to cassava mosaic virus and brown streak virus (on going) at National Root Crops Research Institute, Umudike; and GM Cassava (AMY3 RNAi Transgenic lines) for post-harvest starch reduction, International Institute of Tropical Agriculture (IITA).

He said the agency has also granted Permit for Commercial Release and Importation of GM Crops for Feed and Food Processing such as Bt. Cotton to Monsanto Agriculture Nigeria Ltd. (Commercial Release), Biosafety Permit to WACOT Nig. Ltd Biosafety Permit for commercial release of Bt Cotton.

Dr Rufus said that Nigeria is benefiting from safe modern biotechnology under a legal framework for economic growth, improved agriculture, job and wealth creation, industrial growth and sustainable environment as operators now have confidence in the sector, risks to human health from modern biotechnology practice and the use of genetically modified organisms (GMOs) are at their barest minimum.

He noted that the dumping of unauthorised GMOs into Nigeria is now at its barest minimum. He stressed that avenue is being provided to confirm and harness the potentials of modern biotechnology safely, negative socio-economic consequences of GMOs are being guarded against, even as confidence is being built in the practice of modern biotechnology, use and handling of GMOs and GM products.

“Nigeria’s commitment to the principles of international Agreements and Treaties to Convention on Biological Diversity (CBD) and Cartagena Protocol on Biosafety (CPB) is reaffirming, Proper regulation for imported GM products, so that Nigeria will not be a dumping ground for GMOs and products is assured. Other African countries look up to Nigeria for leadership in biosafety Issues.”

Ebegba said in the coming year the agency looks to train more staff and urged Nigerians to trust government decisions as government has put in place measures to ensure that human health and environment is safe.

Peoples’ voices, urgent solutions dismissed at COP24, says gender group

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After two weeks of intense negotiations, women and gender groups represented in Katowice, Poland assert that COP24’s failure to deliver on the 1.5°C goal and refusal to put people at the centre of climate action exacerbates rather than addresses the challenges facing our planet.

Gender COP24
Civil society action at COP24. Photo credit: WWF-New Zealand / David Tong.

The key objective of COP24 was to operationalise the Paris Agreement, which is said to be premised on a vision for rights-based and gender-responsive climate action. The Women and Gender Constituency (WGC), representing people at the frontlines of climate change, says it has constantly put pressure on countries to craft an appropriately ambitious and people-centered interpretation of the Paris Agreement. The group adds that it is “disheartened at the continued and dangerous dismissal and silencing of the real, system-changing solutions to a just and sustainable world”.

“Prior to these negotiations, the IPCC Report gave the world a reality check – if we want to reach the goals laid out in the PA, we have to act fast and ambitiously with the right solutions. The opportunity to put people at the center of this vital climate action by including the principles that states already agreed upon, such as protecting human rights and gender equality, was overlooked. However, communities of concerned persons throughout the world, including those represented by the WGC, will continue to put into place real solutions, from the grassroots up, to save our planet and people,” says WGC, one of the nine stakeholder groups of the United Nations Framework Convention on Climate Change (UNFCCC).

The lack of ambition revealed an unwillingness to recognise the ongoing devastation across our landscapes: “Our world is facing brutal changes in the way we used to know it. The weather, the rivers and the forests are not the same. Right now, local, traditional and indigenous communities, intersected by gender, economic status and age, are at the frontline of climate impacts, but in a short time, everybody will feel it,” says Taily Terena, ECMIA – Continental Network of Indigenous Women, Americas, as spoken at the Talanoa Dialogue closing.

Climate science must not be questioned or treated as just another negotiation item: “The Paris Agreement set an important and ambitious goal of keeping warming under 1.5°C. The recent IPCC report on achieving this goal could not be clearer – we have 12 years to avert climate catastrophe. Instead of heeding the alarm by climate scientists to raise ambition and action at COP24, some countries shamefully attempted to weaken recognition of the report and its findings. We are long past attempts to deny the science of climate change. For the WGC, we know we need to stay below 1.5 to stay alive- and we will not stop our collective action to achieve this.,” notes Bridget Burns, Women’s Environment & Development Organisation (WEDO).

The guidelines are not robust enough to solve the climate crisis, nor do they ensure that the voices and rights of peoples affected are properly considered: “The PA has firmly recognised that to be effective and truly transformative, climate action has to respect and promote gender equality and women’s human rights. Instead we see that large investments, increasingly under the guise of climate action, are forcing women and indigenous peoples from their lands, forests and traditional fishing territories. A number of states wanted to delete almost all references to human rights and gender. Only in a few areas could this egregious trend be reversed,” states Hwei Mian Lim, Asian-Pacific Resource and Research Centre for Women (ARROW).

National implementation must integrate gender-responsive approaches: “It is a success that Parties recognise the need to design NDCs in a gender-responsive manner. Still other principles that are pivotal for ambitious and effective action are missing. While planning the NDCs countries should report on how the guiding principles of the PA, such as food security, public participation, just transition, ecosystem integrity, gender equality, indigenous peoples’ knowledge and human rights have been taken into account. This was agreed upon in Paris!” says Nanna Birk, LIFE – Education, Environment, Equality.

Without strong mechanisms, we cannot correct our course toward the PA goals: “Because the Global Stocktake has not been designed as a robust and true accounting of the state of the world’s progress toward the Paris goals, we fear that the currently disastrously insufficient commitments by countries will not be improved. This system is failing us now, and it has now been designed to fail us in the future,” stresses Ndivile Mokoena, GenderCCSA-Women for Climate Justice Southern Africa.

Ignoring loss and damage is an injustice: “It became quite obvious during COP24 that few countries tried to avoid discussing loss and damage entirely, though this should be non-negotiable as the Paris Agreement recognised the urgency of this topic. 2018 has been a disastrous year especially in South and South east Asia bearing the brunt of unpredictable monsoons, cyclonic storms and natural disasters, destroying properties, livelihoods and lives of the people who continue struggling to recover from these losses. The needs of those most affected, including women, migrants, people with disabilities and other discriminated, communities-at-risk, must be taken into account financially. Instead, climate frontline states are being asked to pay high premiums for disaster risk insurance to companies from the Global North, whose governments continue to shirk their historic responsibility for loss and damage. That implies an irony that we will never accept,” emphasises Shradha Shreejaya, Asia Pacific Forum on Women, Law and Development/

The development and transfer of technology has to be just: “It is very distressing that the already scarce resources for the technology framework will go to the private sector. This is based on a perverse idea that public funds should be blended with private sector investment that will bring profit. In this way, climate adaptation technologies and our solutions will always end up being left behind,” contends Neth Dano, ETC Groups.

Nuclear energy is neither clean nor renewable: “It is unacceptable that the dirty energy industries, which act clearly against the Paris Agreement and are responsible for numerous cases of human rights violations, are given so much visibility at COP24, particularly the nuclear industry. We want to ask all states in this process: Which side are you on? We think they must stand with their people, not polluters!” adds Sascha Gabizon, Women Engage for a Common Future (WECF).

Silencing voices of climate activists must be condemned by the community of states: “We have warned since early this year that the Special Bill for COP24 that was passed by the Polish parliament risked creating a dangerous precedent of silencing activists’ voices and excluding frontline communities shared experience that is crucial to this process. We had demanded guarantees that no untoward actions against civil society were taken; however, people have been arrested, interrogated and even denied entry to Poland or deported. This unacceptable practice that violates UN principles must not be repeated at any future climate conference,” states Patricia Bohland, GenderCC – Women for Climate Justice.

Providing the recognition of Indigenous Peoples’ rights is only the beginning: “Even though we are celebrating that the Local Communities and Indigenous Peoples Platform will be brought to life with equal representation from Parties and indigenous peoples, the WGC will keep following the Platform’s development to ensure its goals are fully achieved, while also paying attention to gender equality considerations,” says Isadora Cardoso, GenderCC – Women for Climate Justice.

True, system-changing solutions are available but require real support: “The WGC’s Gender Just Climate Solutions showcase how grassroots women invent and manage community-based and appropriate climate technologies. Their efforts, however, are not supported by the current mechanisms, which focus on centralized and very large-scale activities, often to the detriment of human rights, the rights of women and indigenous peoples, and ecosystem integrity,” says Anne Barre, Women Engage for a Common Future (WECF).

Established in 2009, the WGC now consists of 28 women’s and environmental civil society organisations working to ensure that women’s voices and their rights are embedded in all processes and results of the UNFCCC framework, for a sustainable and just future, so that gender equality and women’s human rights are central to the ongoing discussions.

Oil and gas sector generated $17.05bn in 2016, says NEITI

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A recent report of the Nigeria Extractive Industries Transparency Initiative (NEITI) reveals that the total financial flows from Nigeria’s oil and gas sector slumped to $17.05 billion in 2016, a 31% decline on the $24.79 billion generated in 2015, and a 75% on the sector’s peak earnings of $68.44 billion generated in 2011. In addition, the 2016 figure is the lowest in 10 years and the fifth lowest in the 18 years covered by NEITI’s audit reports so far (1999 to 2016).

Waziri Adio
Executive Secretary of NEITI, Waziri Adio

According to the NEITI 2016 Oil and Gas Industry Audit Report, released to the press on Friday, December 21, 2018, the plunge in revenue in 2016 resulted from the double whammy of low oil prices in the global market and reduced oil production in Nigeria, which in turn was caused by disruption and vandalism of oil assets and spike in crude theft, among others.

Yearly average price of crude oil per barrel was $43.73 in 2016 as against $52.5 in 2015. Total oil production in 2016 was 659 million barrels as against 776 million barrels produced in 2015, a fall of 15%. Losses due to crude oil theft and sabotage rose from 27 million barrels in 2015 to 101 million barrels in 2016, an increase of 274%. This was aside losses due to deferment, which in 2016 was put at 144 million barrels which also went up by 65% when compared to the 87.5 million barrels in 2015.

“The bombing of the under-water 48-inch Forcados Oil Loading/Export Pipeline was one of many major occurrences that befell the industry in the year under review,” the NEITI report stated. “This incident occurred in February 2016 and the line remained in-operational for seven months. Shell Petroleum Development Company (SPDC) declared force majeure on lifting from Forcados on 21st February 2016. Companies injecting into the Forcados Terminal such as SEPLAT, PANOCEAN, MIDWESTERN, ENERGIA, PLATFORM, PILLAR, WALTERSMITH, and EXCEL shut down production for over 147 days.”

In addition, SPDC declared force majeure on the Bonny Terminal due to a leak in Nembe Creek Pipeline between May and July 2016 while NAOC declared force majeure on the Brass Terminal between July and August 2016.

Similarly, Mobil Producing Nigeria Unlimited declared Force Majeure twice between May/June and July/October 2016. This was due to a drilling process disruption and damage to the QIT loading system.

The NEITI report stated: “MPN’s total production within the four-month period was 4,616,825bbls, which is less than half of what was produced in each month previously as reflected in DPR reconciled sign-off records.”

After surviving the slump in the global oil market in 2008 and 2009, Nigeria’s oil sector rebounded in 2010 with a 49% increase in total financial flows to $44.94 billion, followed by the peak of $68.44 billion in 2011. However, flows from the sector have been trending downward since that peak year with $62.94 billion generated in 2012, $58.08 billion in 2013, $54.56 billion in 2014, and $24.79 billion in 2015. Similarly, oil production has been on steady decline with 866 million barrels produced in 2012, 800 million barrels in 2013, 798 million barrels in 2014, 776 million barrels in 2015 and 659 million barrels in 2016.

NEITI’s audit reports independently reconcile payments by companies against receipts by government agencies and cover key financial flows such as earnings from sale of Federation’s crude oil and gas, sector-specific taxes, fees and levies such as royalty, Petroleum Profit Tax (PPT), signature bonus, gas flared penalty, and other flows such as NDDC contribution, NCDMB levy, NESS fees, education tax and others. Breakdown of the payment shows that the major earnings for 2016 came from export and domestic sale of Federation crude oil and gas with $7.97 billion, PPT with $4.21 billion, and royalty oil with $1.57 billion.

A major highlight of 2016 was that for the first time in Nigeria’s history, crude oil produced from Production Sharing Contracts (PSCs) overtook output from the Joint Ventures (JVs). In 2016, PSCs accounted for 324 million barrels, while the JVs accounted for 289.1 million barrels, (as against the 320 million barrels for PSCs and 375.5 million barrels for JVs in 2015). PSCs, a production arrangement introduced in 1993, thus became the leading production arrangement in 2016. The PSCs are mostly offshore, thus insulated from vandalism and sabotage, and are not constrained by adequacy/availability of equity funding by the Federation. This change in production structure pushes to the fore the need to renegotiate the terms of the PSCs as stipulated in the Deep Offshore and Inland Basin Production Sharing Contracts Act of 1993 so as to increase government’s take.

The NEITI report also reveals that the total lifting for 2016 was 668.1 million barrels, as against the 780.4 million barrels lifted in 2015, a drop of 14.35%. Out of the total liftings for 2016, NNPC lifted 244.6 million barrels (36.61%) on behalf of the Federation while the companies lifted 423.5 million barrels (63.39%).

Other major highlights of the report are the following:

  • Contribution of the oil and gas sector to GDP dropped from 9.5% in 2015 to 8.3% in 2016.
  • Total gas produced in 2016 was 3,051,249 mmscf, out of which 288,209 mmscf was flared, representing 9.45% of production.
  • A total of 126 million barrels (valued at $5.48 billion or N1.37 trillion) was earmarked for domestic consumption, allocated as follows: 23 million barrels (18%) for refineries, 55.9 million barrels (45%) for Direct Sale Direct Purchase (DSDP), 36.6 million barrels (29%) for PPMC lifting and 10.4 million barrels (8%) for offshore processing.
  • From the money for domestic crude allocation (DCA), NNPC deducted the following upfront: N512 billion for JV cash call, N126.5 billion for pipeline repairs and maintenance, N99 billion for under-recovery and N20 billion for crude losses.
  • A total of 101 million barrels of crude oil was recorded as losses due to theft and sabotage, valued at $4.4 billion. Breakdown of this shows that SEPLAT and SPDC alone reported 81 million barrels of crude oil as losses due to sabotage while 20 entities reported 19.8 million barrels as losses due to theft.
  • NLNG dividend, loan and interest repayment for 2016 was $390.2 million, as against $1.07 billion of 2015, a decline of 63.5%.
  • $8.2 billion was budgeted for cash calls in 2016, $5.5 billion was released, and $4.9 billion was paid. Non-JV cash call expenses came to $874 million, representing 17.59% of cash call expenditure.

The 2016 NEITI report covered 84 entities, comprising the following: ten government agencies, seven power generating companies, 62 oil and gas companies, three refineries, and the NLNG and NGC.  The report is made public as part of NEITI’s statutory mandate under the NEITI Act 2007 and in compliance with the principles and standards of the global Extractive Industries Transparency Initiative (EITI), which Nigeria voluntarily subscribed to in 2003. The eighth report to be produced by NEITI on the oil and gas sector, the 2016 audit was conducted by Haruna Yahaya & Co., an indigenous accounting and auditing firm.

Organisation inaugurates project to support climate action

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The Ambassadors of Dialogue, Climate and Reintegration, an NGO, says it has inaugurated environmental project “Chill the Climate” to support climate action in the country.

Dr Peter Tarfa
Dr Peter Tarfa, Director, Department of Climate Change (DCC) in the Federal Ministry of Environment

Executive Director of the organisation, Mr Richard Inyamkume, told the News Agency of Nigeria (NAN) in Abuja on Thursday, December 20, 2018 that the project was to train over 100,000 people to support climate action at the grassroots.

“The Chill the Climate project is a capacity building and awareness raising programme aimed at raising over 100,000 climate ambassadors across the federation by 2030 to support climate action at grassroots.

“The project is being implemented in five pilot states – Adamawa, Benue, Lagos, Rivers and Abia.

“It is hoped that through this project, we will increase public awareness about climate change, discourage degradation and encourage green conservation and resources preservation,’’ he said.

The executive director said that the organisation inaugurated 21 female climate ambassadors who were already working in schools and communities, setting up “Climate Care Clubs”.

He added that the ambassadors held first Adamawa Climate Change rally in Dec. 6.

“We are building capacity for 30 climate ambassadors in Benue state. These people will be inaugurated and inducted into the organisation’s ‘One Hundred Thousand Network’,’’ Inyamkume said.

He said that the organisation would hold a climate change rally in January 2019, expressing the organisation’s readiness to reach out to large number of people.

By Deji Abdulwahab

Kenya launches five-year plan to transform arid regions

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Kenya on Friday, December 21, 2018 launched a five-year plan aimed at transforming Arid and Semi-Arid Lands (ASAL) into reliable economic hubs.

Eugene Wamalwa
Eugene Wamalwa

Mr Eugene Wamalwa, Cabinet Secretary of the Ministry of Devolution and ASALS, said that the 2018-2022 strategic plan targeted livestock, energy, tourism, agriculture, trade and minerals sectors which, he said, were underexploited.

“We want to address the inequalities and vulnerabilities that are currently being experienced in the ASALs in a coordinated manner,” Wamalwa said during the launch.

He said that though the regions faced extreme climatic conditions, leading to devastating effects on the environment and livelihood of communities with spiraling vulnerabilities, they had great potential for development and contributions to national economy.

Wamalwa noted that ASAL regions in Kenya cover 48 million hectares, which is slightly over 80 per cent of Kenya’s total land surface.

“Out of this land mass, 9.6 million hectares support marginal agriculture, 15 million are suitable for sedentary livestock production and 24 million hectares are dry and suitable for nomadic pastoralism,” he added.

Wamalwa said that the government was looking at finding long-term solutions to the problems in the regions by mainstreaming investments as way of finding a lasting sustainable development.