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.
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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.
The Presidential Working Group on the National Policing Bill has extended the deadline for the submission of memoranda and position papers on the proposed legislation to Friday, August 21, 2026.
The extension, announced on Thursday, is aimed at giving Nigerians, institutions and other stakeholders more time to prepare and submit substantive contributions to the proposed reform of the country’s policing architecture.
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Chairman of the Working Group and Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, said the additional time was necessary to ensure broad consultation and enable stakeholders to make well-considered and technically sound contributions.
“The Presidential Working Group is committed to ensuring that the process of developing the National Policing Bill benefits from broad consultation and the informed perspectives of Nigerians and relevant stakeholders.
“The proposed legislation is intended to provide the operational, administrative, institutional and funding framework necessary for an effective policing architecture that responds to Nigeria’s evolving security needs while providing appropriate safeguards for accountability, professionalism and the protection of citizens’ rights,” Gbajabiamila said.
The Working Group had initially set August 13 as the deadline for public submissions but has now shifted it to 5:00 p.m. WAT on August 21.
Gbajabiamila urged legal practitioners, civil society organisations, security sector professionals, state governments, professional bodies, academics, experts and other interested members of the public to take advantage of the extension.
“All submissions must be made on or before 5:00 p.m. WAT on Friday, August 21, 2026, exclusively through the official National Policing Bill portal, nationalpolicingbill.com,” he stated.
According to the Working Group, the proposed legislation will address critical areas including sustainable funding, command and control structures, recruitment and training standards, operational jurisdiction, inter-agency coordination, accountability mechanisms and safeguards against political interference or abuse.
Gbajabiamila said these issues make extensive stakeholder engagement essential to producing a policing framework that is effective, accountable, sustainable and responsive to the security needs of communities across the federation.
“The Working Group recognises that developing an effective policing framework requires careful consideration of critical issues, including sustainable funding, command and control structures, recruitment and training standards, operational jurisdiction, inter-agency coordination, accountability mechanisms and safeguards against political interference or abuse.
“These considerations underscore the importance of robust stakeholder engagement in developing a framework that is effective, accountable, sustainable and responsive to the peculiar security needs of communities across the Federation,” he said.
The Working Group, inaugurated by President Tinubu to develop the legal framework for the implementation of state police, is expected to present a final, implementation-ready draft of the National Policing Bill for onward legislative processing.
The proposed bill is being developed alongside the constitutional amendment process required to establish state police, with the legislation expected to provide the detailed operational framework for federal and state policing.
Edo State Governor, Senator Monday Okpebholo, has reshuffled his cabinet, redeploying the suspended Commissioner for Livestock Development, Prof. Omorodion Ikponmwosa, to the Ministry of Oil and Gas.
The minor cabinet shake-up also saw two newly sworn-in commissioners assigned portfolios, while two other serving commissioners were redeployed.
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Ikponmwosa was suspended on July 19, 2026, alongside the State Project Coordinator of the Livestock Productivity and Resilience Support (LPRES) Project, Mrs. Ikpikhumi Betsy Aghaku, over what the state government described as an “official infraction.”
The government did not provide further details on the nature of the alleged infraction during his suspension.
The latest changes were contained in a statement issued by the Secretary to the State Government, Umar Ikhilor, who said the exercise was aimed at strengthening governance, enhancing efficiency and improving service delivery across the state.
Under the new arrangement, Mr. Iriabekhai Kayode Jeffery, one of the newly sworn-in commissioners, was deployed to the Ministry of Mining, while Mr. Martin Anayochukwu Oli was assigned to the newly created Ministry of Inter-Ethnic Relations.
The Commissioner for Communications, Mr. Ohimai Ehijimetor, was redeployed to the Ministry of Livestock Development.
Ikponmwosa, who previously headed Livestock Development, was moved to the Ministry of Oil and Gas, while Mr. Andrew Momodu, the former Commissioner for Oil and Gas, was redeployed to the Ministry of Communications.
The state government said the changes were made to better align responsibilities with the “respective skills, experience and competencies” of members of the State Executive Council.
Explaining the creation of the Ministry of Inter-Ethnic Relations, the government said it was established to “promote inter-ethnic and inter-community harmony, strengthen peaceful coexistence, and harness the rich and ever-evolving diversity of Edo citizens as an asset for the development and unity of the state.”
All the deployments and redeployments take immediate effect, with the affected commissioners directed to ensure seamless handover and assumption of duties.
Governor Okpebholo also urged members of the State Executive Council to bring “renewed vigour, professionalism and commitment” to their respective assignments.
According to the government, the governor expects the cabinet members to support his administration’s determination to deliver “efficient, responsive and people-centred governance” to the people of Edo State.
The Nigeria Customs Service (NCS), Ogun 1 Area Command, Idiroko, has intercepted and seized 6,035 wraps of cannabis sativa with a total Duty Paid Value (DPV) of N2,087,603,186.76 across different locations in Ogun State.
The Area Comptroller of the command, Olukayode Afeni, disclosed this on Thursday while handing over the seized drugs to the National Drug Law Enforcement Agency (NDLEA), Idiroko Special Area Command.
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Afeni said the handover was carried out in line with standard operating procedures and the legal framework for further investigation.
He raised concern over the circulation of potent cannabis strains, particularly Ghana Loud and Colorado, warning that their smuggling could pose serious risks to young people and communities.
According to Afeni, Ghana Loud has been linked to acute psychosis, severe cardiovascular distress, rapid addiction and long-term mental health challenges.
“The high profit margin of Ghana Loud is also linked to violent criminal networks, human trafficking, and illegal proliferation of arms across the borders,” he said.
The comptroller further warned that the smuggling of cannabis and other dangerous variants to young demographics could destabilise schools and local communities.
Afeni disclosed that from January to date, the Ogun 1 Area Command had handed over 32,412 parcels of hard drugs and 92 sacks of raw cannabis sativa to the NDLEA Idiroko Special Command.
He described the fight against drug smuggling as a collective responsibility and reaffirmed the Customs Service’s commitment to securing Nigeria’s borders and protecting the future of young Nigerians.
Afeni also warned drug traffickers to desist from the illicit trade, stressing that the command would continue to intercept illegal consignments and bring those involved to justice.
Speaking on the development, the NDLEA commander, represented by Adewale Fagbohun, a Director in Narcotics, commended the Customs Service for its efforts.
He said the seizure demonstrated the diligence and resilience of Customs personnel in securing the nation’s borders and protecting society.
The NDLEA also reaffirmed its commitment to strengthening collaboration with the Customs Service and other relevant agencies to disrupt the activities of drug smugglers.
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