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.
Vice President Kashim Shettima has arrived in Maiduguri, the Borno State capital, to commission the Kashim Ibrahim University Teaching Hospital, a student hostel, and 104 staff housing units at the institution.
Shettima’s arrival was disclosed by Stanley Nkwocha, in a post on X on Friday.
The Vice President was received at the Muhammadu Buhari International Airport in Maiduguri by Borno State Governor, Professor Babagana Umara Zulum; Deputy Governor, Alhaji Umar Usman Kadafur; and the All Progressives Congress (APC) governorship candidate in the state, Engr. Mustapha Gubio.
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Members of the National Assembly, the Borno State Executive Council, prominent political figures and other top government officials were also present to welcome him.
During the visit, Shettima is expected to commission the Kashim Ibrahim University Teaching Hospital, alongside a student hostel and 104 staff housing units at the institution.
He will also commission Yerwa Central Primary and Junior Secondary School in Maiduguri, as well as the Kashim Shettima Academy, established by his foundation to support children from less privileged backgrounds.
The Vice President has repeatedly emphasised that poverty should not prevent Nigerian children from accessing higher education.
He has also highlighted government initiatives, including the Nigerian Education Loan Fund (NELFUND), as avenues for students from disadvantaged backgrounds to pursue their educational aspirations.
The Lagos State Commissioner of Police, Tijani Fatai, has warned officers against extortion, brutality, unlawful arrests and detention, stressing that any misconduct will attract disciplinary action.
Fatai gave the warning on Thursday, October 22, during a general lecture for officers and men of the Lagos State Police Command at the POWA Hall, GRA, Ikeja.
According to a press release signed by the Lagos State Police Command’s Public Relations Officer, SP Abimbola Adebisi, and released on Friday, October 23, the lecture was held in compliance with the directives of the Inspector-General of Police, Olatunji Rilwan Disu.
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The lecture brought together area commanders, divisional police officers, tactical commanders, heads of departments and other personnel across the command to reinforce professionalism, discipline, accountability and respect for human rights.
Fatai reiterated the Inspector-General’s directives on addressing complaints against police personnel, particularly allegations of brutality, extortion, unlawful arrests and detention.
He warned that officers who engage in misconduct would face disciplinary action, adding that supervisory officers would also be held accountable for the actions of personnel under their command.
The commissioner specifically cautioned tactical teams against extortion, brutality, intimidation, incivility towards members of the public and other dishonest practices.
He directed tactical commanders to ensure that their personnel operate professionally, exercise restraint and respect citizens’ rights.
According to the commissioner, operational responsibilities must not be used as an excuse to exploit or harass members of the public.
Fatai also directed all personnel to comply strictly with the Nigeria Police Force’s Social Media Policy.
He warned that inappropriate online conduct capable of undermining the image of the police would attract sanctions for erring officers and their responsible supervisors.
Lagos CP Prohibits Arrest by Proxy
Addressing the fight against cultism, Fatai urged officers to intensify efforts to tackle the menace while ensuring that all arrests are conducted lawfully and in accordance with due process.
He prohibited arrest by proxy and the arrest of individuals without lawful justification.
The commissioner also emphasised the need to protect the lives and welfare of suspects in police custody, directing officers to maintain close supervision of detainees and ensure they receive humane treatment throughout their detention.
Police Told to Remain Neutral Ahead of 2027 Elections
Ahead of the 2027 general elections, Fatai charged officers to remain neutral and professional in the discharge of their duties.
He directed personnel to closely monitor electioneering campaigns and provide adequate security to maintain peace and public order.
The commissioner further urged officers to stay informed about local and international developments, strengthen their professional capacity and remain vigilant against emerging security threats that could affect Lagos State.
Fatai charged all officers and men of the command to uphold the highest standards of integrity, stressing that public trust must be earned through responsible conduct, impartial enforcement of the law and respect for the rights of every citizen.
The Director-General of the Africa Centres for Disease Control and Prevention (Africa CDC), Dr Jean Kaseya, has explained why Ebola outbreaks continue to occur in Africa, citing the need for stronger health systems and surveillance mechanisms to prevent and control the spread of infectious diseases.
Kaseya spoke during an interview on Channels Television on Thursday, October 22, while discussing recurring Ebola outbreaks on the continent and the challenges facing public health authorities.
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He explained that some outbreaks originate from animals and spread to humans through contact with the environment, stressing that effective surveillance and stronger healthcare systems were necessary to address the threat.
“We are in Africa in a specific environment. And as you are saying, this outbreak is coming also from animals to humans. It means we are in contact with our environment,” he said.
“But we can avoid that if we have a strong health system in place, if we have strong surveillance mechanisms in place. And this is what we are working to address.”
The Africa CDC chief also announced plans to convene African health ministers on October 28 to discuss the Ebola Bundibugyo outbreak, which he described as the most geographically widespread outbreak of its kind.
According to Kaseya, three African regions—West, Central and East Africa—have been affected, making coordinated action among countries increasingly important.
“This is why I’m calling even a meeting on the 28th of October of all African ministers, because we see now this outbreak — this Ebola Bundibugyo outbreak — is the most geographically extended outbreak, with three regions in Africa already affected: West, Central and Eastern African regions,” he said.
He also expressed confidence in Africa’s preparedness to respond to public health emergencies, while emphasising the importance of strengthening existing systems to contain outbreaks.
Africa CDC Seeks Cooperation Over Nigeria’s Reported Ebola Case
Kaseya further called for cooperation among Nigeria, Uganda and the Democratic Republic of the Congo (DRC) to clarify the travel history of a woman linked to Nigeria’s reported Ebola case.
He said he had been communicating with health authorities in the three countries to establish the woman’s movements before she returned to Abuja on October 3.
According to him, the woman was born in Uganda and had spent some time there before returning to Nigeria. However, further information was needed to establish whether she had travelled through the DRC or had contact with anyone arriving from the country.
“We are talking to all authorities—with Nigerian authorities, with Ugandan authorities, even to DRC authorities,” Kaseya said.
He urged the woman to provide the relevant information to health officials, noting that it would help authorities determine the circumstances surrounding the case and support the countries involved.
“What we want is collaboration from this person, the lady. She has to tell us, to disclose to the authorities. I need this information, as Nigeria needs this information, because we need also to support Uganda,” he said.
Kaseya added that establishing the woman’s travel history and possible contacts would help prevent misunderstandings between the African countries.
“I think these are the pieces of information we are looking for, and it will help all of us, and it will avoid crisis between African countries,” he added.
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