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Written by By Udenna Orji
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Saturday, 13 March 2010 23:21 |
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The federal government lost close to $50 billion between 2006 and 2009 from Shell operations alone due to production shut-in caused by instability in Nigeria's operating environment. This is besides losses from other oil operators which when added, would blow the figure sky-high.
The Managing Director of Shell Petroleum Development Company (SPDC), Mr. Mutiu Sunmonu, who made these known while calling on government to improve the operating environment in Nigeria's oil and gas industry condemned the Federal Government's attempt to compel oil companies to build roads, hospitals and water boreholes for the oil-producing communities through legislation.
Sunmonu said that compelling the oil companies to do the above instead of government embarking on its developmental responsibilities in the Niger Delta would rather create an increasing decline in government's fortune.
"But it is just very important for us that while we are thinking about maximizing value for government, we need to consider the need of the investors too, so that we really don't kill the goose that is laying the golden egg. It is absolutely important. I will always support a situation whereby resource holders maximize value, but we have to be very careful that we don't squeeze the investors too much. When we talk about government take, I just want to make the point that in today's world where credit is very tight, investors will take their funds to places that are stable and profitable," he said.
Sunmonu revealed that United Kingdom gas giant, British Gas (BG), was pulling out of the Olokola Liquefied Natural Gas project, and that the company was going to Australia because its owners believe they have a better and more profitable business in that country. He called on Nigeria's policy makers to be conscious of the fact that investors are looking around the world for where they can get better returns for their investment.
According to him, "the other thing I want to talk about government take is that the fiscal alone - the tax regime alone is not going to deliver government take. In Nigeria, the stability of the operating environment is key. Even if government's royalty and tax go up from whatever it is today to 90 per cent, I always say that 90 per cent of zero is zero. So, if our operating environment is not stable and we cannot produce, there is no government take. We really need to look at these things in totality. How do we ensure that our operating environment is stable? The issue about community disturbances and the Niger Delta security are so inter-twined with the fortune of the oil and gas industry. And in my view, this whole Petroleum Industry Bill (PIB) needs to start to look at that a lot more closely."
Sunmonu while advocating payment of royalties to oil-producing communities by the Federal Government pointed out that the first thing that attracts investors was stability of the operating environment.
He reiterated his company's readiness to ensure that the proposed oil and gas industry reforms are successful. While observing that money alone would not be enough he said technology and project management skills was vital in meeting Nigeria's energy targets, especially in the deep offshore.
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Written by By Clem Khena-Ogbena, Abuja
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Saturday, 13 March 2010 23:12 |
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The International Organisation for Migration [IOM] and Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, have entered into partnership to train returnees on how they can start and run successful businesses.
This was disclosed during a courtesy call on SMEDAN Director-General, Muhammed Nadada Umar by a delegation from IOM in Abuja recently.
IOM which is dedicated to promoting humane and orderly migration for the benefit of all has identified Nigeria as one of the top countries for returnees re-integration programmes to make them productive, and enable them fit into the socio-economic environment of their home country.
According to the delegation from IOM led by Uche Njoku, SMEDAN, by virtue of its mandate, has a critical role to play in the integration programme. This, Njoku said is because there can not be effective re-integration without economic capacity development which she believes SMEDAN is in the best position to provide.
In his response, the Director-General of SMEDAN, Muhammed Nadada Umar expressed his excitement at the gesture by IOM to make Nigerians returnee more productive. Stating that the responsibility was in line with the Agency's mandate, Umar said the whole idea of integration is of utmost benefit to the returnees, their families and Nigeria at large.
The Director-General also assured IOM of SMEDAN's utmost cooperation and support to make the re-integration programme successful.
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Written by By Betrand Nwankwo, Abuja
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Saturday, 13 March 2010 23:11 |
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The chairman, House Committee on Privatisation, Hon Abasi Brimah has appealed to the Acting President, Dr Goodluck Jonathan to expedite action on the sale of NITEL in the interests of the nation as well as the suffering NITEL ex-workers.
Meanwhile, the National Council on Privatisation, NCP, at the weekend set up a seven- member committee to further verify the companies that participated in the biding process of the dwindling telecommunications firms. The committee which is headed by Attorney General of the Federation and Minister of Justice, Mr Adetokunbo Kayode was given seven days to submit its report.
But Hon Brimah who represents Etsako Federal Constituency of Edo State believed that the transaction was transparent and open in line with Privatisation Act.
His words: "The NITEL bid exercise process was very transparent, open and in line with the Privatisation Act. That means, it, followed due process. That is, the irreducible minimum, due process was followed".
Brimah urges federal government to expedite action on the sale of the telecommunication firms for the interest of NITEL workers that are being owned their terminal benefits. According to the lawmaker, over 100 NITEL workers have lost their lives, while waiting for their benefits.
"As a responsible and responsive parliament, we need to use our parliamentary tools to draw the privatisation of NITEL to its logical conclusion.
"Whatever we can accrue from the sale of NITEL, we can now use a fraction of it to pay-off the Nigerian workers that have suffered in the past years. Like I said, we must expedite action on the sale of NITEL and I call on the Acting President, Dr. Goodluck Jonathan, to sign those documents so that a letter of offer can be given to the winners of the NITEL bid and the process can move forward.
He advised government not to truncate the exercise, saying "It is when the people are not able to pay the 30 per cent deposit which is 750 million dollars after 10 working days that the offer can be withdrawn and be given to the reserved bidder. It is a very simple matter".
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Written by By Betrand Nwankwo, Abuja
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Saturday, 13 March 2010 23:10 |
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The Nigerian Communications Commission, NCC, has disassociated itself from the reports in the national dailies concerning the appointment of the Executive Vice Chairman/Chief Executive Officer of the Commission.
The Head, Corporate Communications of NCC, Mr Rueben Muoka in a statement described the report as the handiwork of some desperate lobbyists who wants to use the media to achieve their selfish motive. He said the frequency of these damaging speculations has become very suspect.
Part of the statement reads: "The attention of the Nigerian Communications Commission has been drawn to numerous media reports speculating about the appointment of the new Executive Vice Chairman/ Chief Executive Officer for the Commission.
"The Commission is also concerned about the unusual attention directed on this issue in the media, and the level of propaganda, sentiments and insinuations attending these reports, some of which have no basis or reference to the position of the law guiding the appointment of the chief executive of the Commission. The Commission wishes to dissociate itself from these wild speculations and insinuations which may have been fuelled by some desperate lobbyists attempting to use the media to achieve their selfish motives".
According to Muoka, it is the prerogative of the President to appoint the new chief executive officer for the Commission at the appropriate time. "We are confident that such decision will not be based on sentiments and insinuations sponsored in the media", he said.
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Written by By Aminah Mohammed, Abuja
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Saturday, 13 March 2010 23:09 |
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The Federal Government has filed criminal charges against a telecommunications company, MTN Nigeria Limited before the Federal High Court in Enugu for polluting drinking wells at Nkpologwu District, Emene, Enugu, as a result of used diesel from its base station draining and seeping into people's wells contrary to extant laws and regulations.
MTN is also accused of violating Environmental Regulations by not obtaining an Environmental Impact Assessment Certificate before installing its base station.
The charge filed by the Director General, Legal Services, National Environment Standard Regulations and Enforcement Agency, Barrister Bola Odugbesan, reads in part " That you MTN Nigeria Communications Limited, Celestine Jaja (M) of Ekulu East Estate , Enugu, and Ahmed Farroukh (M) of Golden Plaza Building, Awolowo Road, Ikoyi Lagos, on or about the 1st of April 2008, did engage in activity to wit, operation of a base transmission/ telecommunications station generating hazardous waste leading to pollution of drinking wells at Nkpologwu District, Emene, Enugu, contrary to regulation 78 of the National Environmental (Sanitation and Waste Control) Regulations, 2009 and punishable under Regulation 103 of the National Environmental (Sanitation and Waste Control) Regulations,2009.
The base station was on Friday, 5th March, 2010 sealed up by NESREA after officials from the Agency, following numerous complaints from residents of the Nkpologu district, conducted an inspection and found that the base station was generating hazardous waste leading to pollution of drinking wells at the Nkpologwu district.
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