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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.

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

Workers’ Day and The Nigerian Workers In Perspective

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By AbdurRaheem Sa’ad Dembo

Every 1st of  May workers celebrate their day globally .It is always a day of reflection, celebration and emancipation of workers around the world.

In Nigeria,May Day as a holiday was first declared by the People Redemption Party (PRP) Government of Kano State in 1980.Afterwards it became a national holiday on May 1, 1981

Before venturing to restrict myself to Nigerian workers let me take a broad look at how May Day emerged in the world.Workers’ Day, stemmed in part, from an ancient European Spring festival,but its modern manifestations arise from the organised efforts of socialist and communist groups to establish a time for honouring workers and the working class.To be specific, the holiday was first promoted by the International Workers Association in 1904 to commemorate the slaughter of protesting labourers in Haymarket Square in Chicago ,United States of America in 1886 and it was to be a day to push for the eight-hour work day and other demands.

The date May 1st was chosen because,in the USA, the eighth- hour workday first came into effect on that date in 1886.It was predicated on the demands of the Federation of Organized Trades and Labour Unions.There was a general strike and a riot in Chicago in 1886, and eventually, the eight -hour workday was legally recognised.

Many people tend to attend the National May Day celebration in Abuja and other State capitals.The president or State Governors would be there as the case may be to make a speech, and thousand would fill the Eagle Square or state stadium to listen to the President or Governor.Some people attend number of other events that hold across Nigeria on May Day,organized by schools,labour unions,hospitals,and other various institutions.People use the day for relaxation since it is a public holiday.

In Nigeria,some people participate in nationwide marches and rallies on workers’ Day or Labour Day.More often their major concerns are usually to clamour for an increase in the minimum wage,an end to workers being left unpaid for months,the need for government action to address the high unemployment rates of recent years ,and the necessity for government action to address the high unemployment rates of recent years, and the need to move Nigeria off of over dependence on petroleum exports.

On a May Day in Nigeria, politicians and labour leaders will give out speeches on the strength and the challenges of Nigerian economy , and on how to improve it for the general good of the country.

It is significant to say that Nigerian workers both in public and private sectors are facing enormous challenges.The disparity in the salary structure and irregular payments of salary as witnessed before the coming of Buhari’s administration in 2015, where a lot of state Governors could not pay their workers for several months.

The Buhari administration ensured that bailouts were given to states to enable them offset their unpaid salaries to workers.That was a plus for the Daura man administration.

Meanwhile, President Tinubu’s administration has also sustained the legacies of prompt payment of workers salaries in the last one year.It is expected , because even as Lagos State Governor he had no history of owing workers.

In a larger context, welfare of Nigerian workers are not properly taken care of, most especially those in private sectors.There are situations where teachers in private schools are being paid peanuts as salaries,whereas the owners or proprietors charge the parents homongous school fees.This is not a hearsay I was once in that shoe as an English language teacher.

The area where the civil servants in both Federal and States are feeling the heats is the non regular payment of promotion arrears.According to sources some agencies under federal government are being owed promotion arrears since 2018.This is not a healthy practice, though some sources said the federal government has put the payment in batches and it is now being paid bit by bit.In some states the promotions are not even implemented let alone payment of its arrears

As Nigerian workers join others around the world to mark 2024 workers’ Day,it is expected that the ongoing negotiation by the federal government and labour leaders on new minimum wage will yield good results.

It is imperative to say that the Federal Government should fix the economy for the collective good and progress of the country.No minimum wage can ameliorate poverty, if there is consistent economic instability.

The level of inflation ravaging Nigerian economy is worrisome.Any minimum wage that is less than hundred thousand naira today won’t make any appreciable impacts in the lives of average Nigerian workers.

Essentially,Corruption can only be tackled effectively and holistically,if there is a reasonable living wage for the civil servants.You can’t fight corruption in a country where workers welfare and retirement package are relegated to the background.According to the human rights lawyer,Femi Falana ” corruption cannot be meaningfully fought by governments that pay poor wages to workers,owe workers and pensioners arrears.”

To the NLC and TUC leaders, providing sincere leadership is key to the quality ,emancipation and progress of Nigerian workers.Adam Oshiomhole was an example of a good labour leader in the history of Nigeria.He stood for the workers even in the face of oppression.So the current leaders should take a cue from his tireless comradeship for the benefit of Nigerian workers.

 

Nigeria is a blessed country and a land of prosperity; her workers have no reason for penurious lives.

Happy Workers’ Day

abdurraheemsaaddembo@gmail.com

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Opinion

Minimum Wage Increment: Be Proactive My Governor.

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Governor Abba Kabir Yusuf

 

By-Abba Hamisu Sani

1st of May every year is a special day for workers in Nigeria working with the government or with the Private sector.

The main issue ahead of this year’s celebrations is the expectation of the new minimum wage Increment.

President Bola Tinubu is expected to announce the new salary scale as Vice President Senator Kashim Shatima hinted recently that by the 1st of May, the new minimum wage will be ready for implementation.

Here I want to salute the courage exhibited by the Edo State governor Godwin Obaseki who has increased the minimum wage for workers in the state from 40,000 naira to 70,000 naira ahead of the 2024 Workers Day celebrations.

This prompted my attention to urge my state governor Abba Yusuf to follow the suit of Edo State governor in this direction.

Kano workers suffered a lot in the hands of the immediate past administration, ranging from different kinds of deductions which causes uncertainty on the amount to be collected by a worker and even pensioners every month.

Governor Abba if you do the same as Obasaki, the Kano people will be happy with you as it will boost the state economy and currency circulation.

It is very imperative at this time to be proactive and not wait for the Federal government announcement before taking your step in making Kano workers happy.

Infrastructural development is quite needed but at this time social security is the most critical as it has been said “A hungry man is an angry man”.

Workers’ salaries are too low to cater to their basic needs, such as food, rent, transportation, and school fees for their children while they see politicians cruising in jeeps and other expensive cars.

Finally, Governor Yusuf remember that these workers have sacrificed a lot during the 2023 elections to see that you emerged as Kano governor.

Is very important to consider their plight at this moment of critical economic hardship.

I urged all comrades in different forms of struggle including civil society Forum to join me in pushing the Kano State government to implement a new minimum wage in a dignified manner as the Edo State governor did.

Abba Hamisu Sani is a
Media Consultant /CEO Time Base TvAfrica & Africa Press.
Can be reached via timebasetv@gmail.com

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Opinion

As Prominent Nigerians Pour Encomiums on the Late Sidi Ali-Dembo

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Late Sidi Ali

 

By AbdurRaheem Sa’ad Dembo

I was not in my regular station in Minna as I took a brief trip to Abuja for an all important matter. In the night of Thursday, 25th April, 2024, I was reading in the news that Alhaji Sidi Ali had passed on. Innalillahi waiina ilaihi rajiun

He was the father of the current Spokesperson of Central Bank of Nigeria CBN, Hakama Sidi Ali (Mrs). According to the news, he was among second Republic Parliamentarians.

Many mourners have trooped to his residence at the NNDC Quarters,Hotoro GRA, Tarauni local government area of Kano State for condolences. He was buried on Friday 26th April, 2024.

Kano State Governor, Abba Kabir Yusuf in a condolence message signed by his spokesperson, Sanusi Bature Dawakin Tofa described late Ali as a trusted public servant who made sacrifices to ensuring that Nigeria remains a united and indivisible country. The Governor acknowledged the positive contributions of the deceased as a Senator in the Second Republic in shaping the Parliament and the overall development of democracy in the country. He extended condolences to his families and prayed for those he left behind to have the courage to bear the loss.

Former President Muhammadu Buhari has mourned the late author describing him as a creative writer. Part of his condolences reads: “I am pained by the demise of the noted journalist, author, and politician, Sidi H. Ali, who won my heart and that of many through his critical writings and the two books he wrote about me.” The former President equally expressed his condolences to his family and admirers.

Deputy President of the Senate, Senator Barau Jibrin has extolled the virtues of the deceased, saying he contributed immensely to the development of the country in both political and media spheres.

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According to a statement from his Adviser on Media and Publicity, Ismail Mudashir the deputy Senate President describes Ali thus: ” The death of our late elder statesman,Alhaji Sidi Ali,is not a loss to his immediate family alone, but a monumental loss to the country as a whole.He served our country meritoriously in different capacities and displayed his wealth of talent for the unity and growth of the nation.”

Barau was at their Hotoro GRA residence in Kano to commiserate with his family and urged them to remain united, and emulate the good virtues of their late father.

The Minister of Information and National Orientation, Mohammed Idris in a statement described late Sidi Ali as a respected veteran journalist, prolific writer, and a politician whose contributions to the field of journalism, literature, and politics have left an indelible mark. He added that Alhaji Sidi Ali, throughout his career, exemplified high standards of professionalism and integrity and provided invaluable insights with historical references into the pressing issues of time.

The minister said that as the nation mourns the loss of Alhaji Sidi Ali, his wisdom, compassion, and dedication to his craft would continue to inspire generations to come.

In the words of Senator Shehu Sani, the mournful message reads:
“I received the sad news of the demise of a renowned Elder statesman, author, journalist, politician and historian, Alhaji SIDI ALI. Apart from Tafawa Balewa and Sardauna of Sokoto, no other Northerner was closely known by historic figures and World leaders in the 60s and 70s like the late SIDI. The late Elderstateman was personally known by President JF Kennedy, Martin Luther King, Jr. Malcom X, Muhammad Ali, Kwame Nkrumah and many others.
The late Sidi Ali was a human library and a prolific writer. He was one man who could recall every event that happened in Nigeria’s history from independence till date. A great loss. My condolences to his family and the good people of Kano State.
May Allah grant him Aljanna firdausi, Amin.”

In the same vein, Lauretta Onochie, the Former Personal Assistant to Former President Muhammadu Buhari on Social Media, on her Facebook post also mourned honourable Sidi Ali. According to her, he was a great journalist, a great writer and a father to her.

One of his daughters said “Baba was a people’s person , he loved people generally across all strata. A humanitarian to the core.
A true Nigerian.
We grew up wearing clothes from MKO Abiola, Oloye Olusola Saraki, and many others”

According to a family source”The late Senator Joseph Tarka family and the people of Benue state were at the deceased residence on a condolence call. The Sidi Ali family and the Tarka Family have a long standing decades of close relationship. Senator Joseph Tarka is the father of the SGF”.

The former Registrar/Chief Executive National Examinations Council NECO, and the current Vice Chancellor, Khalifah Isyaku Rabiu University,Kano Professor Abdulrashid Garba also paid a condolence visit to the family.

Professor Hannatu Sabo, the Jigawa State Commissioner for finance, budget and planing also visited personally to sympathize with the family. Alhaji Sule Lamido, the former Jigawa State Governor,
Former Minister of State for works and Housing, Hon Umar Ibrahim El-Yakub , Senator Gumel,
A member of Federal House Representatives, Alhassan Ado Doguwa and others in the National Assembly from Kano State,Former Senator Aminu Inuwa, Professor Dandago,Kano Commercials ,traders and Academic communities were also fully represented during the condolence visit.

The elder statesman spent years serving the Nigerian International Press Centre, Ministry of Information and National Broadcasting Commission, among other critical institutions.

He travelled wide and his vast experience influenced his affection for journalism and communication. Ali authored 19 books, one of which is “Corruption in High Society”

According to Daily Trust Newspaper (27th April, 2023) “Ali was born in Kano but travelled to Ghana, where he met the country’s political leader, Kwame Nkrumah, who arranged for him to travel to London, and later, the United States to further his education”

In his 2018 birthday message, Former President Muhammadu Buhari established that Ali spent most of his life serving the country as a public affairs officer, “most remarkably for ensuring accurate and balanced information on government activities during and after the civil war.” (PR Nigeria news)

Personally, based on what I have read about late Sidi Ali, one can conclude that he was a fearless and pragmatic writer. It was reported that he was arrested by the regime of General Yakubu Gowon for writing an article against the Federal Government. A good writer is always sensitive and can’t look away when things are not properly done. To me, a coward can’t be a writer. The responsibility of an average writer is to use his pen to draw the attention of leaders to social anomalies in the society with a view to correcting them.

Honourable Sidi Ali was an APC Stalwart and a member of party’s Elders Committee in Kano State. He died at the age of 86 and was survived by children and grandchildren. May Allah forgive his shortcomings and grant him aljannah firdaus.Ameen

abdurraheemsaaddembo@gmail.com

07037813177

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