NEWS
Oil Industry Opposes Proposed 3% South-South Development Levy
The proposal seeking to compel oil and gas producing companies to contribute three percent of their annual budgets to the South-South Development Commission (SSDC) has met with stiff opposition from the oil industry.
Major oil industry operators and petroleum regulators on Wednesday cautioned that the levy may discourage investment and undermine the competitiveness of Nigeria’s petroleum industry.
The concerns were raised at a resumed public hearing organised by the House of Representatives Committee on the SSDC on a bill seeking to amend the South-South Development Commission (Establishment) Act, 2025, with a view to strengthening the commission’s funding framework.
The hearing brought together petroleum regulators, oil producers, government agencies and other stakeholders to scrutinise the proposed legislation before it proceeds for further legislative consideration.
The Chairman of the Committee, Julius Pondi, said the hearing was reconvened to accommodate critical stakeholders who were unable to attend the first session on July 8 because of their participation in the Nigerian Oil and Gas Conference.
He said the committee considered it necessary to hear from all relevant stakeholders, given the strategic role of the petroleum sector in the proposed amendment.
According to the Delta lawmaker, the amendment is designed to broaden the funding base of the commission to enable it to discharge its mandate of promoting sustainable development across the South-South region.
ALSO READ: NMDPRA Calls for ECOWAS Petroleum Products Pricing Policy
He noted that despite serving as the nation’s economic backbone through crude oil production, maritime activities and industrial operations, the South-South continues to grapple with poor infrastructure, environmental degradation and other developmental challenges.
“We are particularly interested in receiving constructive contributions on the proposed funding framework, its sustainability, its implications for government and industry, as well as alternative proposals that can further strengthen the objectives of the legislation,” he said.
However, the proposed funding model drew strong reservations from industry regulators and operators.
Presenting the position of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Chief Executive, Oritsemeyiwa Eyesan, represented by the Head of Regulations and Statutory Compliance, Kingsley Chikwendu, expressed support for providing the commission with a predictable and sustainable funding structure.
She, however, faulted the provision requiring oil-producing companies operating within the region to contribute three per cent of their total annual budgets to the commission.
Eyesan argued that the phrase “total annual budget” was not defined in the bill, creating uncertainty over how contributions would be calculated and enforced.
She maintained that the proposal failed to clarify critical issues, “including the basis for assessment, deductibility of payments, timelines for remittance, treatment of joint venture operations and companies with operations spanning multiple regions.”
According to her, the provision could effectively introduce another expenditure-based levy that companies would pay regardless of profitability or production levels.
The NUPRC also reminded lawmakers that upstream operators “are already subject to numerous statutory financial obligations, including petroleum taxes, royalties, the Niger Delta Development Commission (NDDC) levy, Host Community Development Trust Fund (HCDTF) contributions under the Petroleum Industry Act (PIA), the Nigerian Content Development Fund payments, environmental remediation obligations and abandonment fund contributions.
The commission urged lawmakers to carefully “evaluate the likely impact of the proposed levy on investment decisions, production costs and the competitiveness of Nigeria’s upstream petroleum sector.”
On its part, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also echoed similar concerns.
Speaking on behalf of the authority, Senior Manager Ahmed Laido advised lawmakers to ensure that any additional funding mechanism aligns with the fiscal philosophy of the Petroleum Industry Act, 2021.
He said any new financial obligation “should strengthen investor confidence, promote regulatory certainty and support the Federal Government’s ease-of-doing-business agenda.”
Laido urged the committee to balance the funding needs of the commission with the need to preserve a competitive investment environment.
The strongest opposition came from the Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry (LCCI).
Its Chairman, Bala Wudiri, argued that “oil companies are already making substantial statutory contributions under existing laws” and warned against creating another compulsory levy.
He cautioned that imposing an additional three percent contribution would “increase the financial burden on operators, duplicate existing obligations and weaken Nigeria’s attractiveness as an investment destination.”
Wudiri urged lawmakers to adopt a balanced funding model capable of strengthening the SSDC without discouraging investment in the oil and gas industry.
Despite the differing views, stakeholders unanimously supported the objective of accelerating development across the South-South region.
Most participants agreed that the commission requires adequate funding to deliver critical infrastructure and development projects but urged lawmakers to adopt a financing framework that does not undermine investment or increase the cost of doing business.
The SSDC was established to coordinate and accelerate development across the six states of the South-South geopolitical zone, addressing long-standing challenges such as inadequate infrastructure, environmental degradation, unemployment and the socio-economic impact of decades of oil exploration.
The amendment, currently before the House of Representatives seeks to strengthen the commission’s financial capacity by expanding its sources of funding.
However, the proposal requiring oil-producing companies to contribute three per cent of their annual budgets has emerged as the most contentious provision, with regulators and industry operators warning that it could overlap with existing statutory obligations under the Petroleum Industry Act and other extant laws.
The House Committee is expected to review memoranda and submissions from stakeholders before presenting its report and recommendations for consideration by the House of Representatives.
NEWS
Battle Intensifies to Replace Adeyeye at NAFDAC
The jostle for the position of the next Director-General (DG) of the institution that impacts Nigeria’s public health by regulating the making, importing, exporting, selling, and use of food, drugs, cosmetics, medical devices, chemicals, detergents, and packaged water is heating up.
Biztellers reports that with the second and final tenure of the incumbent DG, the National Agency for Food and Drug Administration and Control (NAFDAC), Prof Mojisola Adeyeye expected to statutorily end on December 1, 2027, several people have started canvassing openly to replace her.
READ ALSO: NAFDAC Before and After Adeyeye: Has the Agency Truly Changed?
Prominent among the contenders is a serving director of the Agency, Olatunde Isaac.
Isaac took to his verified handle on X to pitch his credentials to Nigeria’s president, Bola Ahmed Tinubu.
He wrote, “I have served at NAFDAC for nearly a decade and dedicated years of my career to the fight against counterfeit and substandard medicines and unsafe food products.
“My work in this area earned me the NAFDAC Director-General’s Merit Award in recognition of my contribution to the fight against fake food and drugs.
“Mr. President, I am not asking for a favour. I am offering competence, experience and a proven commitment to the national interest.
“Make me the Director-General of NAFDAC, give me the mandate and the institutional backing, and I will take the fight against counterfeit medicines and unsafe foods to an entirely different level.
“Within the first six months, I will target a minimum 60% reduction in the circulation of counterfeit and substandard medicines and unsafe regulated products, with the ultimate objective of driving the menace to the barest minimum within one year.
“Nigeria does not lack capable professionals. Sometimes, what is needed is simply the courage to put the right person in the right place.
“Give me the mandate. Give me the tools. I will deliver.
“Nigeria deserves a stronger, more effective war against fake drugs and unsafe foods.”
NEWS
‘Develop Flare Gas Sites or Lose Permits’ — NUPRC Warns Investors
The Nigerian Upstream Petroleum Regulatory Commission has warned investors operating under the Nigerian Gas Flare Commercialisation Programme that they risk losing their permits if they fail to make substantial progress in developing their awarded flare gas sites within one year.
The warning is part of renewed efforts by the Federal Government to end routine gas flaring by 2030 and ensure that gas currently being wasted through flaring is converted into productive economic value.
The Commission Chief Executive, Oritsemeyiwa Eyesan, issued the warning during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja on Wednesday.
ALSO READ: 172 HCDTs Incorporated — NUPRC
According to a statement issued by the NUPRC Head of Corporate Communications and Media, Eniola Akinkuotu, Eyesan provided updates on the implementation of the Nigerian Gas Flare Commercialisation Programme and other initiatives being undertaken by the commission.
Eyesan said the regulator would no longer tolerate situations where flare gas sites awarded to investors remain undeveloped for extended periods.
She explained that the commission conducts an assessment one year after an award is granted to determine whether the investor has made considerable progress.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.
She added, “Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary.”
The NUPRC boss disclosed that 43 flare gas sites were initially identified for award under the programme, while 27 sites have so far been successfully awarded to investors.
She noted that implementation activities were currently ongoing at the awarded sites.
The Nigerian Gas Flare Commercialisation Programme was established to enable investors to utilise gas that would otherwise be burnt through routine flaring for commercially viable projects.
The programme is expected to reduce environmental pollution, create employment opportunities, generate additional revenue and increase gas supply for power generation, industries and other productive activities.
Nigeria currently has more than 215 trillion cubic feet of proven gas reserves, while its estimated total gas resource base stands at about 600 trillion cubic feet.
Meanwhile, Eyesan also disclosed progress in the implementation of the Host Community Development Trust framework established under the Petroleum Industry Act.
She said 173 Host Community Development Trusts had been incorporated, with 147 already funded. More than 1,001 projects are currently ongoing across host communities, while over 200 projects have been completed and commissioned.
Speaking during the visit, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called for a more aggressive implementation of the country’s gas commercialisation programme.
Ekpo stressed the need to accelerate efforts to achieve Nigeria’s target of eliminating routine gas flaring by 2030.
He said the country must move away from practices that cause environmental pollution and focus on transforming its gas resources into valuable products and services that can drive economic growth.
“The core objective is to add value to our gas resources by converting them into critical products and services. We must move away from environmental pollution and toward productive resource utilization,” the minister said.
The latest warning underscores the NUPRC’s tougher stance on undeveloped flare gas assets as Nigeria seeks to turn its enormous gas resources into economic opportunities while reducing the environmental impact of gas flaring.
NEWS
Tension In Benue: 46 Arrested Over Blockade Of Peter Obi’s Convoy
Tension has continued to trail the disruption of the convoy of the Nigerian Democratic Congress (NDC) presidential candidate, Peter Obi, in Benue State, with the police confirming the arrest of 46 suspects over the incident.
The suspects were arrested after Obi’s convoy was blocked by angry youths along the Makurdi-Gboko Federal Highway on Tuesday during the former Anambra State governor’s visit to the state.
SEE MORE: ‘It’s a Lie’ — Wike’s Aide Debunks Peter Obi’s ‘No Shishi’ Claim
Recall that Obi had travelled to Benue as part of his political campaign ahead of the 2027 presidential election and was also scheduled to visit Yelewata to commiserate with families and residents affected by the deadly June 2025 attacks in the community.
According to reports, trouble began a few metres away from the airport when Obi’s convoy encountered a large group of youths who had completely blocked the two-lane federal highway.
The blockade reportedly brought traffic to a standstill, with the road temporarily closed to other users.
The youths were said to have shouted “Peter Obi, go back!” as they prevented the convoy from proceeding towards Yelewata.
The Benue State Commissioner of Police, Cletus Nwadiogbu, who addressed journalists in Makurdi, confirmed that 46 suspects had been arrested in connection with the incident.
Nwadiogbu said investigations were still ongoing, adding that the police were also trailing some key leaders believed to be connected to the confrontation.
He warned that the Benue State Police Command would not tolerate political intolerance or any act capable of threatening peace and security as the country moves towards the 2027 general elections.
Obi Condemns Incident
Reacting to the incident, Obi condemned the blockade, describing the development as worrying and unacceptable.
The NDC candidate said he arrived in Makurdi at about 9am and was on his way to Yelewata to console families affected by the killings when his convoy was stopped.
Obi said he was particularly concerned that he was prevented from visiting a community where more than 270 people were reportedly killed during the 2025 attacks.
He questioned whether Nigerians were still living in a country where political candidates could move freely during campaign activities.
According to him, he decided not to confront the youths because doing so could have escalated the situation and endangered the lives of other people.
Obi also appealed to security agencies, including the Inspector-General of Police and other relevant authorities, to intervene and ensure that political actors are protected during their campaigns.
He further called on state governors to ensure that political activities are conducted peacefully, stressing that what happened in Benue should not be allowed to become normal in Nigeria’s democracy.
The former governor also urged young Nigerians not to allow themselves to be used as instruments by political interests, particularly by those responsible for the difficult economic conditions facing citizens.
Keyamo Condemns Blockade, Criticises Media Coverage
Minister of Aviation and Aerospace Development, Festus Keyamo, also condemned the obstruction of Obi’s movement, saying preventing a political candidate from accessing a location should not be tolerated in a democracy.
Keyamo noted that regardless of the reason behind the incident, whether it was allegedly caused by internal disagreements within the NDC, as suggested by the Benue State Government, or was linked to supporters of another political party, such conduct was unacceptable.
He also rejected arguments that Obi should not have attempted to visit Yelewata because the 2025 killings occurred more than a year ago or because the visit could have been politically motivated.
According to Keyamo, every political candidate should be allowed to move around freely and conduct political activities without intimidation or crude interference.
However, the minister used the incident to criticise what he described as partisan reporting by sections of the media.
Keyamo argued that similar confrontations involving candidates of the All Progressives Congress (APC) were sometimes described by the media as evidence of public “rejection”, while incidents involving opposition politicians were labelled as attacks allegedly carried out by “sponsored thugs” or “hoodlums”.
He said such differences in how political incidents are presented were unfair and urged the media to maintain greater balance in its coverage.
Keyamo also pointed to statements by some opposition politicians who, according to him, have claimed that APC candidates could not visit certain parts of the country without being stoned, beaten or otherwise harassed.
He questioned why such statements were not given the same scrutiny by what he described as partisan sections of the media.
The minister maintained that political disagreements should be settled through elections rather than violence.
He urged Nigerians who are angry with any candidate or political party to express their displeasure at the ballot box by voting against them rather than attacking or obstructing them during campaigns.
Benue Government Denies Involvement
The Benue State Government has denied any involvement in the incident and rejected allegations that Governor Hyacinth Alia or his administration sponsored youths to block Obi’s convoy.
In a statement issued by the governor’s Chief Press Secretary, Tersoo Kula, the state government described Obi’s allegation as unfounded.
The government said it had no knowledge of what Obi was referring to and suggested that the incident could have resulted from internal political disagreements within the NDC.
It also questioned whether Obi actually visited Makurdi on Tuesday, while accusing him of having a history of making statements the state government considers untrue about Benue.
The government maintained that Obi was not a threat to Governor Alia and argued that, even if there had been a genuine security concern surrounding his visit, recognised security agencies would have been responsible for handling the matter rather than political thugs.
The Alia administration further insisted that it does not engage, patronise or deploy thugs as instruments of governance or security.
With 46 people already arrested and the police continuing their investigation, attention is now focused on identifying the organisers of the blockade and determining the circumstances that led to the confrontation.





