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Kyari’s Legendary Leadership & Nigeria’s Next Billion Barrels

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Mele Kyari GMD NNPC

 

By Momodu Abutu

Mother Nature has a way of depositing its vast treasures wherever it pleases. In the wonderful world of hydrocarbons, these resources are either placed onshore (on land) or offshore (in water). Beneath the hidden depths of world’s seas ranging from a few hundreds to several thousand feet (called deepwater), therein lie vast fortunes of oil and natural gas resources. These resources have the capacity to boost world economic growth and play a vital role in the future of the rapidly changing global energy mix.

It is on record that Nigeria is fortunate to have its own fair share of the world’s deepwater endowments. data show that the country produces almost 10% of the global deepwater oil production in recent times. Moreso, the deepwater terrain has become extremely significant in Nigeria’s energy space representing almost half of the nation’s oil production and holding about 35% of the country’s oil reserves.

As an evidence of the significance of this hugely prolific terrain, six out of the eight international oil companies – which control about 75% of the world’s deepwater space – all have some presence in Nigeria’s deepwater. Suffice to say that deepwater has become a critical hydrocarbon landscape which the nation cannot afford to lose or manage with kid’s gloves.

As critical as Nigeria’s deepwater terrain is, it happened that this high-volume environment has been plagued with protracted dispute between the International Oil Companies (IOCs) Contractors and the host nation, Nigeria, represented by the NNPC. The disputes have, over the years, been rooted in entrenched differences in the interpretation of the provisions of the Production Sharing Contract (PSC) and its associated laws.

Since commencement of production in 2005, these disagreements have festered leading to arbitration. These differences in opinion have inflicted a heavy strain on investor trust and confidence, stunting growth and creating possibility of huge contingent liability on the nation. Essentially, these disputes have proven to be a major clog in the wheel of progress for all parties concerned.

As at 2016, contingent liability due to arbitration claims against Nigeria ran into billions with high uncertainty for sustainable future for the investors. In 2017 therefore, NNPC revised its engagement strategy and adopted a commercial solution as an alternative to the protracted legal dispute. The revised strategy was premised on the principle of trading the disputed bitter past for a brighter collaborative future for both parties.

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The strategy deployed to resolve the conflict in the Oil Mining Lease (OML) 118 Bonga PSC is expected to serve as benchmark for resolving the remaining PSC deepwater disputes. The Bonga PSC was thus the gateway PSC to the resolution of the industry-wide disputes that have over the years hamstrung the potential in the deepwater terrain.

But why is NNPC and the IOCs using the OML 118 dispute resolution template as a reference and a benchmark for resolving other disputes? The answer is not far-fetched. It is because of its significance in many ways. Along with the straddled fields, the OML 118 is home to five major players in the deepwater space not only in Nigeria but also globally. It is also the first major deepwater development in Nigeria’s Niger Delta, 75 kms from shore containing the Bonga fields at water depths of over 1,000m.
The field is arguably one of the most prolific deepwater asset in Nigeria, boasting of almost 2 billion barrels of crude oil and up to 1TCF of gas. It also has modest cost of operations and has delivered appreciable value for the investors with a sizeable take for the country. The field also supplies gas to the Nigerian Liquefied Natural Gas (NLNG), another strategic asset to the NNPC and its strategic partners.

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So, after two years of negotiating the strategy and seeking alignment on some of the PSC terms, NNPC in February 2019 signed Heads of Terms (HoT) with the OML 118 PSC contractors (PSC) partners – Shell Nigeria Exploration and Production Company (SNEPCo), Total Exploration and Production Nigeria Limited (TEPNG), Esso Exploration and Production Nigeria Limited (EEPNL) and Nigerian Agip Exploration (NAE) .

The truce heralded the progress which formed the basis and solidified the commercial framework for parties to settle, create the pathway for a sustainable brighter future and serve as a reference point for resolving longstanding dispute. The HoT was designed to translate into fully termed agreements including the Dispute Resolution Agreement and a new PSC Agreement for the OML 118 Contract Area.

In what could be considered as a major move in the resolution journey, GMD NNPC, Mallam Mele Kyari, went a notch higher than the HoT. Shortly after coming on board in July 2019, he rolled out his strategic goals for the petroleum upstream sector one of which was unlocking deep offshore potential to grow the nation’s reserves. Close observers of the NNPC and the Oil Industry know that with Mele Kyari, such things don’t just occur by happenstance because when he marshalled out his plans for the upstream upon assuming office, everyone knew the end of the OML 118 disagreement was almost in sight.

So today, here we are. Barely two months before Kyari clocks two years on the saddle, he has delivered on that promise – galvanizing and bringing together NNPC’s Contractor parties to agree to the much anticipated full term agreement which finally creates a certainty for the desired brighter future in the nation’s upstream sector. These five agreements signed by the parties are Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.

The signing of these agreements recently is therefore a testimony to Kyari’s visionary leadership, which, potentially, will lead to many more success stories. These include, but not limited to, paving way for the unlocking of over 1bn of oil in the bloc, up to 1 TCF of gas, unprecedented partner alignment, foreign direct Investment inflow of almost $10bn, contract lifecycle revenue of almost $50bn that will create energy security and shared benefits for both the investor and nation.

In essence, this new agreement will also help to re-balance fiscal terms and address global competition in prioritization of investments by key players. Without doubt, the signing of these agreements will create a new dawn of unprecedent progress in the oil and gas industry which will pave way for unlocking additional treasures of the deep for the benefit of all stakeholders. It is indeed a major milestone for Nigeria, the NNPC and its partners, their investors, and most importantly, the 200 million plus Nigerians.

In similar vein, what this major milestone means is that, through Kyari’s ingenious effort and visionary leadership, a dispute that had stood in the way of progress and development for many years have been resolved in the best interest of all partners, a win-win. Today, everyone in the OML 118 PSC mix is happy that while other deepwater assets in the world are facing decline, Nigeria’s Bonga field is witnessing massive potentials for further development that could unlock billions of dollars of investment.

Going forward, this “watershed moment”, as described by almost all the parties involved in the PSC, will ensure that the three projects related to Bonga that are in development stages but haven’t yet been given the green light — Bonga South West, North Tranche 1 and Main Life Extension and Upgrade – will become a reality, sooner rather than later.

It was Booker T. Washington, the legendary 19th Century African American intellectual who once said: “You measure the size of the accomplishment by the obstacles you have to overcome to reach your goals.” As such, if you consider the attendant positives that will very soon accompany the huge accomplishment of OML 118 dispute resolution, then it would be safe to say that Mallam Mele Kyari’s fantastic negotiation skills and leadership acumen will continue to be deeply impactful in Nigeria’s oil and gas industry for many years to come.

As the dust of the deepwater disputes continues to settle in Nigeria, it is instructive to know that the fortunes of Nigeria’s upstream sector – in particular the deepwater terrain – would never be the same again. Without doubt, industry watchers will be keen to see how the NNPC and its contractor will start reaping the rewards of this remarkable truce. While Nigerians patiently wait to witness the deepwater dollars streaming into the nation’s energy coffers, let us, at the same time, relax to see how the Mallam Kyari wisdom will rub off on the other outstanding PSC disputes.

Abutu, an Energy Analyst, writes from Benin.

Opinion

2027:Why Fa’izu Alfindiki Is Municipal’s Best Choice For Reps

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From Danlami Gandun Albasa

There is no doubt that the former Chairman of Kano Municipal Hon Fa’izu Alfindiki (Jundullahi) can make a better candidate for the position of House of Representatives, in the forthcoming 2027. His name alone rings bell and sends fear to the ears and hearts of his political opponents. Kwankwasiyya especially and their hidden supporters.

It is very clear for all to come to term with me when I argue that Alfindiki is not only composed, but he has clear understanding of voters behavior in his constituency, Municipal local government and other Metropolitan areas.

I have my concrete reasons why Alfindiki stands better chance to be the candidate for House of Representatives seat from Kano Municipal, in 2027.

Let’s have a simple look at those reasons. See below for your perusal :

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1. Apart from being the immediate past local government Chairman, whose understanding of grassroot politicians (yan dangwale) their needs and behaviors, become part and parcel of his political experience, his relationship with many categories of people gives him an edge over many others, who recently indicate their interest,

2. Alfindiki’s visibility in the social media, as both active user and active contributor in political discussions in the social media means a lot for his breakthrough,

3. Coming from Bakin Kasuwa side of the Municipal local government, will give headache for Kwankwasiyya or NNPP people. Who are densely populated there. So when Bakin Kasuwa politicians see their son contesting for the position, they will rally behind him for popular support and endorsement at all cost,

4. Fa’izu has no hidden relationship with Baba Ganduje’s enemies and political opponents. You cannot pinpoint any figure within Kwankwasiyya circle and get any link with him or her and Fa’izu Alfindiki. He is always straightforward,

5. Alfindiki has no history of abusing our pillars within APC or their families. He still believes, our pillars, ranging from Baba Ganduje, Abdullahi Abbas and the like, are still reliable and dependable. Nowhere in his political history, where he resorts to abusing the families of our leaders, at whatever rate and range,

6. Alfindiki is always up and doing in coordinating all parts of our great party APC to be strong and reliable political platform, and

7. Without any fear of contradiction, Alfindiki is responsible without pretending. He unifies supporters and does not believe in creating factions within the larger body of our great APC

TO BE CONTINUED

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Opinion

Letter To IGP On Reaffirming Respect For Traditional Institutions And The Role Of The Nigeria Police Force In Upholding Justice

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Sir,

We acknowledge the Nigeria Police Force’s recent decision to withdraw its invitation to the Emir of Kano, Mallam Muhammadu Sanusi II PhD, in connection to an incident during the Sallah celebration in Kano on March 30, 2025. While this move is appreciated, it is important to highlight that the Nigeria Police Force (NPF) is a noble institution revered for its commitment to maintaining law and order.

As such, we believe that the leadership of the NPF, particularly the Inspector-General of Police (IGP), should not be utilized as a tool for actions that could be construed as undermining this esteemed institution. The primary responsibility of the NPF is to maintain law and order in society, not to engage in actions that sow division or disrespect for the country’s revered institutions.

We wish to respectfully draw the attention of the IGP to certain issues that require immediate attention. First and foremost, addressing an Emir without the appropriate protocol is a sign of disdain, not only to the individual Emir but to the entire traditional institution. An Emir, whether alive,deposed, or deceased, should never be referred to without the prefix “Emir” or “His highnerss. Referring to the Emir as “Alhaji,” “Mallam,” or “Dr.” without the appropriate title raises concerns and may lead to suspicions regarding the position of the NPF toward the Emir, His Highness, Mallam Muhammadu Sanusi II PhD.

Additionally, we believe that the question of whether the NPF’s press release, demanding that the Emir provide a statement, was necessary is a matter of concern. The state police command had already made arrests and issued an invitation to Sallaman Kano, the most senior aide in charge of palace affairs

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This action should suffice for the continuation of the investigation without the need to escalate matters by seeking the Emir’s direct involvement. Further engagement with the Emir, if necessary, can be carried out through appropriate channels, in line with the traditional and legal protocols.

While we appreciate the IGP’s prompt action in withdrawing the invitation, we would like to emphasize the importance of maintaining respect for the traditional institution and ensuring that police actions do not inadvertently politicize or disrespect any parties involved. We trust that the IGP will take this into account as the investigation progresses and that professionalism, neutrality, and justice will guide the NPF in handling this delicate matter.

In conclusion, we hope that the NPF continues to uphold its role in a manner that respects the traditions and laws of our nation. It is essential that such matters be handled with the utmost care, respecting both the rule of law and the sanctity of the traditional institutions.

Tijjani Sarki
Vice President
Human Rights Watch and youth empowerment foundation, Kano, Nigeria
7th April 2025

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Opinion

Encomia As Hajara Ali Exits NECO

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By AbdurRaheem Sa’ad Dembo, anipr

Let me begin this piece with the words of the Famous American Obie Award Winning Actor and Writer, Patrick Foley, “…Retirement is a chance to redesign your life into Something new and different”.It is never the end of the road but an opportunity to start a new life.

On 25th March, 2025 Hajiya Hajara Ali retired from the service of National Examinations Council (NECO) meritoriously as a Director.

She was a mother to all within the Council. A very pragmatic, hardworking, and thorough civil servant.

But I can’t say it all, so I had to reach out to those who have worked closely with her and others within the Council.

Mrs Mary Esezobor opines “Hajiya is a mother, she is free with everybody and has a listening ear.She is friendly, one can enter her office anytime.Many people believe that once a woman is in position of authority, power intoxicates them but that was not the case of Hajiya”.

Similarly,Mr Msughter Igbalaga is a member of staff, who worked with her, explained that “she is naturally simple because she is not the material type. Anything flamboyant Hajiya dislikes it even as a Director. She would come and sit down in the midst of some members of staff to discuss official issues. She values ideas from her staff and abhors laziness.”

Mrs Ebele A. Egbosimba also described Hajara Ali as a friendly and accommodating personality. She asserts ” If you work with her,she would guide you appropriately. She doesn’t engage in discrimination. Her yes is yes, while her No is No.She fights for justice and loves doing the right thing”.

Her Secretary, Mrs Hafsat Shehu Yusuf said, “She is simple and nice. She’s friendly and hardworking.She is a good mother”.

Furthermore, Mrs Sunday A. Nike, who also worked with her captures her personality thus:” She is a mother to me. She is straightforward and generous.There is no challenge you take to her that she would not help you to address it. she is very accommodating and does not discriminate against religion or tribe”.

Husseini Amodu has worked with Hajiya for years, here is his submission about her: “To every objective assessor, Hajiya Hajara epitomizes diligence, discipline, foresight and empathy. She is an advocate of peace, industrial harmony, dedication to duty and servant leadership. Her humility is rare and she is distinctively accommodating. She carries out her tasks with absolute passion and precision, upholding the tenets of exemplary leadership. There is no doubt that her sterling qualities will propel her for higher responsibilities in our beloved country in no distant time, God willing”.

Essentially, Lukman Ahmed is a member of staff and the former Special Assistant On Poverty Alleviation to Kwara state Governor, Mallam Abdulrahman Abdulrazaq, has this to say about her:

“Hajia Hajara Ali (Our Mother) is a paragon of hard work, selfless service and dedication.

“We celebrate a Mother who has set a high standard of leadership, demonstrating that with vision, courage and determination, even the most daunting challenges are being surmounted.”

“We celebrate an exceptional Woman, Mother, Teacher, Mentor, a beacon of hope, whose impressive achievement in office has left an indelible mark in the history of the Registration Department.”

“Her versatility will be missed “.

Most importantly, Hajiya Hajara Ali is not only religious but pious. Her attitude to work is superb. On the day she retired I went to her office and I met a lot of staff members who came to congratulate her.She made a statement on that day while advising them and it kept knocking on my mind. She said she took her job diligently because she knew she would account before the Almighty about her approach to work and the people around her. She admonished staff members to always do the right thing for the sake of the Council and accountability.

*Her Educational background*

She hailed from Dala Local Government Area of Kano State

Hajara Ali completed her primary school at the Cathedral Girls Primary School, Freetown, Sierra leone in 1977.She attended Government Girls College, Dala,Kano and had a GCE O’ Level WAEC in 1982.

She later proceeded to Bayero University, Kano and graduated with a Bachelor of Science (BSC) Chemistry in 1989.She had a Post Graduate Diploma in Management from the same institution in 1996.

In 2005 she obtained Diploma in Computer Science Education at Cornerstone Computer Institute, Ilorin

In her quest to acquire more knowledge and qualification she went to Bayero University, Kano (BUK) again to study Education at Post graduate level, and she obtained a Post Graduate Diploma in Education in 2009.

In 2012 she bagged Msc Analytical Chemistry in Bayero University, Kano

Hajiya Hajara Ali worked with the Kano State Ministry of Water Resources and served as Senior Research Officer between 1990 and 1999.She later joined the service of the National Examinations Council in 2000 when NECO was established.

Until her retirement,she was the Director of Registration at the NECO Headquarters in Minna, where she made appreciable impact through innovation of ideas and commitment to work .

On 7th April, 2025 during the send forth ceremony organized for her by the staff of the Council at the NECO Conference hall,she received a lot of gifts and accolades from members of staff,and that was a testament to her dignity,hardwork, simplicity and integrity.

Hajiya Hajara Ali is retired but not tired, a woman of such impeccable character should be engaged in higher responsibility.

Against all odds she will navigate the earth and the sky will be her limit just as the former US Secretary of State, Hillary Clinton has said “Where there are no ceilings, the sky is the limit”.

I pray that Allah guides and protects her as she approaches the new phase of life

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