NEWS
Senate probes Shell over Joint Venture default, seeks $200m refund to FG
By John Akubo
For failing to comply with the Petroleum Act thereby breaching the Joint Venture Agreement entered into with the Federal Government the Senate, on Wednesday, constituted an Ad-Hoc Committee to investigate Shell Petroleum Development Company (SPDC)
The Ad-Hoc Committee was mandated to probe the Oil Mining Lease granted to SPDC between 1959 to 1989 and 1989 to 2019 under the SPDC/NNPC Joint Venture agreement.
The Ad-Hoc Committee which was constituted by the Senate President, Ahmad Lawan, has Senator Aliyu Sabi Abdullahi as its Chairman.
Other members on the panel include Senators George Thompson Sekibo, Abdullahi Yahaya, Bassey Albert Akpan, Olamilekan Solomon Adeola, Smart Adeyemi, and Aishatu Dahiru Ahmed.
Accordingly, the chamber demanded a refund of $200 million (USD) or any amount short of what was paid by SPDC, including penalties and interests under the said lease agreements to the coffers of the Federal Government.
The resolution was reached by the chamber after it considered a motion sponsored by Senator George Thompson Sekibo (PDP, Rivers East).
The motion was entitled, “non payment of the sum of $200,000,000 accruals from the Oil Mining Lease (OML), by Shell Petroleum Development Company of Nigeria Limited under the SPDC/NNPC Joint Venture Agreement and, illegal and unlawful renewal of Oil Mining Leases by the Ministry of Petroleum Resources/Department of Petroleum Resources (DPR) contrary to the provision of paragraph 10 of the First Schedule to the Petroleum Act 1969 (now Section 86(1) and 86(6) of the Petroleum Industry Act 2022.”
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Sekibo, in a presentation, observed that the SPDC/NNPC Joint Venture (JV) agreement, in contravention of the provisions of the Petroleum Act 1969, by the defunct Department of Petroleum Resources (DPR) and the Ministry of Petroleum Resources, granted to the SPDC/NNPC a 30-year Oil Mining Lease from 1959 to 1989.
He observed that doing so constituted an illegal extension of the Oil Mining Lease by 10 years in the first instance, instead of the prescribed term of 20 years, without recourse to the provisions of the Petroleum Act 1969 in paragraph 10 of the First Schedule.
According to the lawmaker, “upon the expiration of the initial Oil Mining Lease in 1989, SPDC/NNPC JV, was granted another 30-year Oil Mining Lease again from 1st July 1989 to 30th June 2019, by the Ministry of Petroleum Resource/DPR instead of the 20 years lease period prescribed by the Petroleum Act, which is contrary to paragraph 10 of the First Schedule to the said Act”.
He disclosed that in the initial additional 10 years Oil Mining Lease of 1969 to 1989, illegally granted to the SPDC/NNPC JV by the Ministry of Petroleum Resources/DPR, the Federal Government lost from fees, taxes, rents, and royalties the sum of $120, 000, 000.
He stated that in the second instance of the extra 10 years the Federal Government also lost a further sum of $80,000,000, making a total of $200,000,000.
He noted that a loss of $200,000,000, which is equivalent to N83, 130, 000, 000 billion, could have been of great value to the economy of the nation.
He observed that the illegal action by the Ministry of Petroleum Resources/DPR as regards the SPDC/NNPC JV may not be the only non-compliant grant as details of other Joint Venture agreements with Chevron Nigeria Limited, ENI Joint Venture, EXXON Mobil Upstream JV, Total E & P Nigeria Limited JV, need to be ascertained through a thorough investigation to verify compliance with the provisions of the extant law.
He expressed worry that the trend of illegal extension of Joint Venture (JV) period from 20 years to 30 years lease period without recourse to the Petroleum Act may have also applied to other Joint Venture agreements with the International Oil Companies (IOCs) and need to be investigated.
Sekibo informed the chamber that SPDC went to Court on the clarity of the lease period and the judgment was not in their favour as regards the additional 10 years lease period in the two instances.
“Regrettably, the court failed to order the SPDC to pay the arrears the 20 years lease period to the tune of $200,000,000 to the Federal Government for the illegal extensions”, he said.
The lawmaker further disclosed that a whistle-blower petitioned the EFCC on the need to recover the sum of $200,000,000 from SPDC for these illegal extensions by the Ministry of Petroleum Resources/DPR and to further investigate all other Joint Venture agreements that involved the aforementioned IOCs.
He noted that the power to make laws for the Federation as vested in the National Assembly by the Constitution also encompasses the power to make laws for the promotion of national prosperity and a dynamic self-reliant economy as provided in section 16(1)(a) of the 1999 Constitution of the Federal Republic of Nigeria as amended.
He emphasised that the Constitution also gives power to each House of the National Assembly to carry out an appropriate investigation on an observed misapplication of the laws enacted by the National Assembly, as provided in Section 88 of the Constitution.
He stated further that Section 89 of the same Constitution provides the process on how such investigation should be carried out.
Accordingly, the Senate resolved to constitute an Ad-Hoc Committee to investigate the non-compliance with the Petroleum Act and the Oil Mining Lease granted to SPDC between 1959 to 1989, and 1989 to 2019 under the SPDC/NNPC Joint Venture Agreement; and compel SPDC to refund to the Federal Government the sum of $200,000,000 or any amount short of what was paid, including penalties and interests under the said lease agreement.
Osun State Governor, Senator Ademola Adeleke, has hailed the state’s strong performance in the 2026 National Examinations Council (NECO) Senior School Certificate Examination.
In a government house statement issued on Tuesday in Osogbo he described the result as a positive reflection of ongoing efforts to reposition education in the state.
Osun placed fifth nationally in the 2026 NECO ranking, with 74.31 percent of candidates recording at least five credits, including English Language and Mathematics, the statement pointed out.
While congratulating the students, teachers, parents, school administrators and other stakeholders, the governor noted that the state performance has been improving within a single digit rating for three consecutive years namely 2024, 2025 and 2026.
“Osun has moved from 33rd position in the 2022 NECO ranking to 5th in 2026, while improving its pass rate to 74.31 per cent. This is encouraging, and it shows that our sustained interventions in the education sector are yielding positive results,” the Governor said.
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Gov Adeleke said the improved performance reflects his administration’s deliberate investment in the education sector, including the recruitment of additional teachers to strengthen the teaching workforce, while prioritising workers’ welfare and creating a more conducive environment for effective teaching and learning across public schools.
The Governor said the performance reinforces his administration’s determination to continue investing in education, noting that the objective is to build a system that gives every Osun child the knowledge, skills and opportunities needed to succeed.
“This result is encouraging, but we see it as a reason to do more. We will continue to invest in our schools, improve the learning environment, support our teachers and provide our students with the necessary tools to excel.
“We are building an education system that prepares our young people not only for examinations but for life,” the Governor said.
He assured that ongoing interventions in the education sector would be sustained and expanded, while urging students to remain committed to their studies.
His Excellency also commended teachers across the state for their dedication and sacrifices, assuring them that the administration would continue to prioritise measures that strengthen the education system and improve workers’ welfare.
Nigeria is gunning for more value through domestic refining, petrochemicals and associated industrial activities.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, stated this on Monday through his Technical Adviser on Regulation, Umar Gwandu, who represented him at the third Nigeria Oil Refining Summit (NORS) put together by the Crude Oil Refiners Association of Nigeria (CORAN) in Lagos.
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According to him, Nigeria has, for decades, produced crude oil on a significant scale while remaining heavily dependent on imported petroleum products.
He said the strategic direction for Nigeria is “to progressively move from an economy that primarily exports crude to one that increasingly captures value through domestic refining, petrochemicals, and associated industrial activities”.
Lokpobiri said the Federal Government is strengthening the Domestic Supply Obligation to ensure domestic refineries have reliable access to crude, stressing that the policy is critical to the country’s energy security.
“The Domestic Supply Obligation should therefore not be viewed merely as an administrative allocation mechanism. It is an important instrument for advancing national energy security and strengthening the linkage between our upstream and downstream sectors,” he stated.
He said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has developed a DCSO framework in consultation with the Nigerian National Petroleum Company Limited (NNPC Ltd), the Oil Producers Trade Section, the Independent Petroleum Producers Group, CORAN and other domestic refining interests.
“The Federal Government expects this framework to continue evolving from a regulatory obligation into a reliable, transparent, and commercially bankable crude supply system capable of supporting the sustainable operation of domestic refineries,” the minister said.
With a view to strengthening the enforcement of environmental laws so as to sustain a clean, healthy and habitable environment throughout the state, the Osun State Government has set up a Special Task Force on Environmental sanitation.
The Task Force, according to a government house statement issued on Monday in Osogbo, is to be chaired by the state Head Of Service, Samuel Ayanleye Aina and deputised by the Hon. Commissioner for Environment and Sanitation, Hon Mayowa Adejoorin.
The core mandate of the taskforce according to a statement issued by the state commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, is to tackle environmental infractions throughout Osun state particularly indiscriminate waste disposals in drains and roadsides as well as other places that have the potential of constituting environmental nuisances.
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The state government particularly viewed with great concern and accordingly flayed the indiscriminate manner with which people litter many places including road medians with dirts and debris of different kinds, an act which it further noted could cause serious environmental hazards.
The State Government while putting in place the taskforce urged its members to ensure that all enforcement activities are diligently carried out in accordance with the law.
The government warned that offenders will be prosecuted if, henceforth, they are caught or found culpable in one way or the other in negating all the environmental laws of the state.
It also urged the Special Task Force on Environmental sanitation to remain committed to due process in the discharge of its core duties and mandates.
Other members of the Samuel Ayanleye Aina led Special Task Force on Environmental sanitation are the Hon. Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, Special Adviser to the Governor on Political Affairs, Alh.Muniru Raji, General Manager, Osun State Waste Management Agency(OWMA), Mr Oyewole Fatai Oladosu and Mr.K.K.Oyelami.
Other members of the taskforce are Osun Amotekun Corps Commander, Hon. Omoyele Isaac Adekunle, Hon. Commissioner for Women Affairs, Chief (Mrs) Ayobola Fadeyi Awolowo and Special Adviser to the Governor on Market Affairs, Mrs Eniola Omotoso.
The task force is to commence work with immediate effect.
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