Against the backdrop of dipping crude oil earnings occasioned by dwindling production output and the biting spike in pump price of Premium Motor Spirit (PMS), also known as Petrol, following the removal of fuel subsidy, elders in the oil-rich Niger Delta region have proffered measures to ameliorate the situation.
In an open letter to President Bola Tinubu, South-South Elders Progressive Forum (SSEPF) blamed progressive decline in crude oil production output on the withdrawal of support for multinational oil companies operating in the Niger Delta region by locals in oil-bearing communities. They withdrew their support because they feel they were not being carried along by the Federal Government and its agencies. They no longer see themselves as under any obligation to protect oil facilities in their areas, including fighting crude oil theft.
The elders cautioned in the letter, dated July 18, 2023 that the short term palliatives offered to cushion the nightmarish situation faced by Nigerians will not be impactful unless Federal Government takes steps to boost crude oil production and bring on stream one or two of the nation’s refineries for local refining of petrol.
The SSEPF in its letter title, “Panacea for Dwindling Crude Oil Production and the Niger Delta Debacle,” also attributed the inability of International Oil Companies (OICs) operating in the region to perform seamlessly and optimally to the failure of the Niger Delta Development Commission (NDDC) to provide a conducive atmosphere for the companies to function.
The letter was signed by Chief Jolomi Ande and Dr. Benedict Akparanta, Chairman and Secretary General respectively.
It reads in part: “Crude oil and natural gas resources will remain pivotal for a long time in Nigeria’s path to economic prosperity and the sooner the nation takes the development and stability of the Niger Delta region seriously, the better for it. The IOCs no longer complain to the Federal Government on the challenges they face due to lack of cooperation by host communities, occasioned by a huge trust deficit, and are, therefore, simply divesting and exiting the Niger Delta as a result of NDDC’s failure to effectively perform its mandate towards maintaining peace and stability in the region.
“As elders in the Niger Delta committed to peace, development and prosperity of the region and Nigeria, we, wholeheartedly, offer you our support towards actualising your vision of economic revival for the nation, using the abundant oil and gas in the Niger Delta as a springboard. But this can only be achieved through well-grounded policy initiatives and holistic implementation of guidelines and presidential directives by those upon whom responsibilities have been delegated.
“It is in this regard that we write you this letter highlighting some recent anomalies that could mar efforts of your administration, particularly towards improving the dwindling crude oil production output and to proffer solutions on how to remedy the situation, which had adversely affected the nation’s oil earnings. Mr. President, we are discomforted that your recent directive dissolving the Governing Boards of all Federal Government parastatals, agencies, institutions, and government-owned companies as it relates to the Board of the Niger Delta Development Commission (NDDC), was implemented in the breach and the outcome, if allowed to stand, signals a faulty start capable of raising the bar of corruption at the Commission and worsening the lack of cooperation by the host oil communities and the multinational oil companies occasioned by a huge trust deficit as a result of NDDC’s failure to effectively perform its mandate towards maintaining peace and stability in the region, thereby progressively depleting crude oil production output.”
The letter drew the attention of of the President the concerns of various contractors handling projects for the NDDC, most of which have been stalled due to alleged underhand deals.
“We, therefore, respectfully urge Mr. President to investigate and verify the payments made at the NDDC within the past six months towards uncovering the 30 per cent kickbacks paid into private accounts of individuals, which are allegedly changed to foreign currency and delivered in cash to the officials for whom they are fronting and these transactions are openly conducted within the vicinity of the NDDC headquarters in Port Harcourt.”
