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.
NEWS
Two Officers Killed as Hoodlums Ambush Soludo Aide’s Convoy in Anambra
Two police officers were reportedly killed after suspected hoodlums attacked the convoy of the Chief of Staff to Anambra State Governor, Dr. Ben Nwankwo, along the Amansea–Ufuma Road in the state.
The attack, which occurred on Sunday night, targeted the convoy of the governor’s aide. While Dr. Nwankwo escaped unhurt, two security personnel attached to the convoy were feared dead during the ambush.
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Reacting to the incident, the Anambra State Commissioner of Police, Ikioye Orutugu, ordered an immediate manhunt for the attackers and issued a 48-hour ultimatum to police formations and tactical units across the state to arrest those responsible.
Speaking during an emergency security meeting at the State Police Command Headquarters, Orutugu described the attack as a direct challenge to the authority of the state and vowed that the perpetrators would be brought to justice.
The police commissioner directed officers to intensify efforts to track down the suspects, stressing that the killing of security personnel would not be tolerated under his watch.
He also expressed concern over intelligence reports suggesting that some criminal elements now disguise themselves in police and military uniforms to evade detection and carry out attacks.
Orutugu urged residents and commuters to remain vigilant, particularly those travelling along the Amansea–Ufuma Road, which he described as a vulnerable route increasingly exploited by criminal gangs.
He assured the people of Anambra State that intelligence-led operations had already commenced and expressed confidence that the suspects would be apprehended within the stipulated 48-hour period.
The police command reiterated its commitment to protecting lives and property across the state while intensifying efforts to restore security and public confidence.
NEWS
CNG Gets a Boost as FG Partners Portland Gas on $4m Project
Nigeria’s Compressed Natural Gas (CNG) push has received a boost as a partnership between a private firm and the Federal Government through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), yielded about $4 million investment in the development of CNG infrastructure.
Making the disclosure, Managing Director and Chief Executive Officer of Portland Gas Limited, Folajimi Muhammed, added that the investment was aimed at deepening gas utilisation and improving energy access across Nigeria.
During the commissioning of the company’s Mother Station in Ojota, Lagos, at the weekend, Muhammed said the project is structured as a joint venture in which Portland Gas holds a 60 percent equity stake while the Federal Government, through MDGIF, owns the remaining 40 percent.
He added that the initiative involves the construction of a Mother Station and Daughter Stations in Lagos and Abuja to facilitate the distribution of CNG through a virtual pipeline system.
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He explained that the facility commissioned represents the first phase of the project and would serve as the central hub for supplying gas to downstream stations.
“The project is a collaboration between Portland Gas and the Midstream and Downstream Gas Infrastructure Fund. Portland Gas has contributed 60 per cent equity while the Federal Government has come in with 40 per cent. Our mandate is to build a mother station here and daughter stations in Lagos and Abuja. What we are commissioning today is the first part of that project, which is the mother station,” he said.
Muhammed noted that the facility currently has an above-ground storage capacity of 96,000 standard cubic metres per day (SCMD), while the full mother station is designed to handle about five million standard cubic feet of gas per day.
He said the station is presently supplied through a virtual pipeline arrangement whereby gas is sourced from a third-party facility and transported to the site, pending connection to the Ajaokuta-Kaduna-Kano (AKK) gas pipeline network.
“At the moment, we are sourcing gas from a third party, which is why we call it a virtual pipeline. In the future, we will tap directly into the AKK pipeline and become our own supplier. This will enable us to supply our daughter stations directly and also serve other gas consumers,” he added.
Addressing concerns over persistent queues at CNG stations across the country, Muhammed said increasing the number of refuelling outlets remains the most effective solution.
“The opening of more stations will naturally reduce waiting time and queues. The more stations we build and commission, the more available gas becomes to consumers,” he said.
He revealed that Portland Gas already operates stations in Ajah, Lagos, and Kubwa, Abuja, while additional facilities are planned for Otako and Gwagwalada in the Federal Capital Territory.
On access to funding from the MDGIF, Muhammed described the application process as rigorous but necessary to ensure that only serious investors benefit from the intervention fund.
“It was a very rigorous process. We had to provide extensive documentation and demonstrate that we had already committed substantial resources to the project before accessing the fund. The fund managers needed evidence that we were capable of executing the project,” he explained.
While advocating a more flexible approach for proven investors, he cautioned against lowering standards to the extent that funds are disbursed to entities lacking the capacity to deliver.
“There is a delicate balance. The fund should not be given to people who may not perform simply because they apply. However, companies that have demonstrated commitment and capacity should enjoy a more streamlined process,” he said.
Muhammed also urged greater support for innovative gas distribution models, including mobile refilling units and daughter stations, to accelerate the penetration of CNG across the country.
According to him, such initiatives would complement the Federal Government’s gas expansion agenda and help position natural gas as a viable alternative fuel for transportation and industrial activities.
Also speaking, the Executive Director of MDGIF, Oluwole Adama, said the Fund remains committed to supporting projects that drive energy access, economic growth, and national development.
NEWS
Fresh Ebola Alert: Lagos Tightens Airport Surveillance as Virus Threat Looms
The Lagos State Government has intensified surveillance and emergency preparedness measures at the Murtala Muhammed International Airport (MMIA) amid renewed concerns over the spread of the Ebola Virus Disease (EVD) in parts of East and Central Africa.
The move is aimed at preventing the importation of the deadly virus into Nigeria through the country’s busiest international gateway, which handles a significant percentage of inbound international passengers.
Leading a high-powered preparedness inspection at the airport, the Lagos State Commissioner for Health, Prof. Akin Abayomi, said authorities were strengthening systems for early detection, rapid isolation, and emergency evacuation of suspected Ebola cases.
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According to him, Lagos remains vulnerable to imported infectious diseases due to its status as Nigeria’s commercial hub and the volume of international travelers arriving daily through MMIA.
Abayomi explained that the state government is also enhancing digital surveillance and passenger monitoring, particularly for travelers arriving from countries considered high-risk.
“Our objective is to create a bottleneck for the virus, not for passengers,” he said, stressing the importance of collaboration between state and federal agencies in safeguarding public health.
The commissioner recalled Nigeria’s successful containment of the Ebola outbreak in 2014 after the virus was imported into Lagos from Liberia.
He noted that lessons from that experience, as well as the COVID-19 pandemic, continue to shape the state’s preparedness and response strategies.
As part of ongoing efforts, authorities are considering the introduction of dedicated arrival channels for passengers arriving from high-risk countries to strengthen screening and reduce potential exposure risks.
Speaking during the inspection, the Special Adviser to Governor Babajide Sanwo-Olu on Health, Dr. Kemi Ogunyemi, described airport personnel as the country’s first line of defense against imported infectious diseases.
She emphasized the need for heightened vigilance, noting that effective disease surveillance begins at ports of entry.
Also, the Permanent Secretary of the Lagos State Ministry of Health, Dr. Dayo Lajide, urged frontline workers to strictly adhere to infection prevention and control measures while carrying out their duties.
Meanwhile, the Airport Manager and Regional General Manager, South-West MMIA, Mr. Olatokunbo Arewa, disclosed that additional preparedness infrastructure, including touchless hand-sanitizer systems and temperature-detection equipment, had been deployed across the airport.
The Head of Port Health Services at MMIA, Dr. Lawal Abdullahi, revealed that the airport had already reviewed and updated its Public Health Emergency Contingency Plan earlier this year and activated its emergency management team in response to recent Ebola developments.
He added that risk assessments had been conducted to identify countries of concern, while passenger screening and information-sharing mechanisms were being strengthened to support rapid response efforts.
Officials from the Federal Airports Authority of Nigeria (FAAN), the Nigeria Civil Aviation Authority (NCAA), Port Health Services, and Lagos State health agencies reaffirmed their commitment to coordinated surveillance, information sharing, and swift response measures to protect Nigerians from Ebola and other infectious disease threats.
The inspection concluded with an assessment of major screening points and emergency response facilities at the airport as authorities intensified efforts to keep the virus out of the country.





